Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Entity Registrant Name | PRUCO LIFE INSURANCE CO | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 033-37587 | |
Entity Central Index Key | 0000777917 | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 22-1944557 | |
Entity Address, Address Line One | 213 Washington Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 250,000 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Fixed maturities, available for sale, at fair value (allowance for credit losses: 2023-$4,315; 2022-$4,769) (amortized cost: 2023–$26,682,558; 2022–$21,311,087) | $ 23,798,355 | $ 19,025,401 | |
Fixed maturities, trading, at fair value (amortized cost: 2023–$3,369,161; 2022–$2,682,022) | 2,444,273 | 1,936,159 | |
Equity securities, at fair value (cost: 2023– $232,311; 2022–$148,179) | 224,397 | 143,072 | |
Policy loans | 1,455,484 | 505,367 | |
Short-term investments | 266,069 | 124,491 | |
Commercial mortgage and other loans (net of $27,100 and $20,263 allowance for credit losses at September 30, 2023 and December 31, 2022, respectively) | 5,492,869 | 4,928,680 | |
Other invested assets (includes $99,566 and $116,110 of assets measured at fair value at September 30, 2023 and December 31, 2022, respectively) | 1,203,591 | 1,088,613 | |
Total investments | 34,885,038 | 27,751,783 | |
Cash and cash equivalents | 1,845,278 | 2,397,627 | |
Deferred policy acquisition costs | 6,923,554 | 6,930,425 | [1] |
Accrued investment income | 308,908 | 219,635 | |
Reinsurance recoverables | 36,860,011 | 37,096,562 | [1] |
Receivables from parent and affiliates | 231,879 | 224,921 | |
Deferred sales inducements | 359,674 | 381,504 | [1] |
Income tax assets | 2,319,041 | 1,694,751 | [1] |
Market risk benefits assets | 2,519,234 | 1,393,237 | [1] |
Other Assets | 2,029,917 | 1,331,427 | [1] |
Separate account assets | 111,611,386 | 114,051,246 | |
TOTAL ASSETS | 199,893,920 | 193,473,118 | |
LIABILITIES | |||
Policyholders’ account balances | 49,662,070 | 41,912,536 | [1] |
Future policy benefits | 21,257,134 | 20,829,033 | [1] |
Market risk benefit liabilities | 4,371,178 | 5,521,601 | [1] |
Cash collateral for loaned securities | 184,001 | 86,750 | |
Short-term debt to affiliates | 304,317 | 126,250 | |
Long-term debt to affiliates | 0 | 185,563 | |
Payables to parent and affiliates | 3,966,688 | 2,126,571 | |
Other liabilities | 4,720,229 | 3,597,373 | [1] |
Separate account liabilities | 111,611,386 | 114,051,246 | |
Total liabilities | 196,077,003 | 188,436,923 | |
EQUITY | |||
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding) | 2,500 | 2,500 | |
Additional paid-in capital | 5,495,220 | 6,037,914 | |
Retained earnings / (accumulated deficit) | (941,204) | (994,154) | [1] |
Accumulated other comprehensive income (loss) | (739,599) | (10,065) | [1] |
Total equity | 3,816,917 | 5,036,195 | |
TOTAL LIABILITIES AND EQUITY | $ 199,893,920 | $ 193,473,118 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, allowance for credit losses | $ 4,315 | $ 4,769 |
Fixed Maturities, Available-for-sale, amortized cost | 26,682,558 | 21,311,087 |
Fixed maturities, trading, amortized cost | 3,369,161 | 2,682,022 |
Equity securities, at cost | 232,311 | 148,179 |
Commercial mortgage and other loans, allowance for credit losses | 27,100 | 20,263 |
Other invested assets, at fair value | $ 99,566 | $ 116,110 |
Common Stock, Par or Stated Value Per Share | $ 10 | $ 10 |
Common Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 250,000 | 250,000 |
Common Stock, Shares, Outstanding | 250,000 | 250,000 |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
REVENUES | ||||||
Premiums | $ 85,140 | $ 61,716 | [1] | $ 251,761 | $ 185,545 | [1] |
Policy charges and fee income | 346,481 | 369,946 | [1] | 1,096,508 | 857,881 | [1] |
Net investment income | 460,864 | 210,762 | 1,203,389 | 582,190 | ||
Asset administration fees | 56,754 | 68,554 | 177,744 | 219,576 | ||
Other income (loss) | (63,555) | (161,407) | [1] | 286,750 | (795,129) | [1] |
Realized Investment gains (losses), net | (468,256) | 97,271 | [1] | (581,241) | 810,771 | [2] |
Net change in value of market risk benefits, net of related hedging gain (loss) | (247,471) | (80,078) | [1] | (266,156) | (1,235,415) | [2] |
TOTAL REVENUES | 169,957 | 566,764 | 2,168,755 | 625,419 | ||
BENEFITS AND EXPENSES | ||||||
Policyholders' benefits | 145,409 | 87,685 | [1] | 397,552 | 367,543 | [1] |
Change in estimates of liability for future policy benefits | 6,565 | (2,935) | [1] | 1,030 | 42,865 | [1] |
Interest credited to policyholders’ account balances | 163,074 | 97,649 | [1] | 467,112 | 318,586 | [1] |
Amortization of deferred policy acquisition costs | 132,242 | 128,420 | [1] | 398,884 | 384,384 | [1] |
General, administrative and other expenses | 271,473 | 243,205 | [1] | 858,809 | 795,922 | [1] |
TOTAL BENEFITS AND EXPENSES | 718,763 | 554,024 | 2,123,387 | 1,909,300 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | (548,806) | 12,740 | 45,368 | (1,283,881) | ||
Income tax expense (benefit) | (104,883) | (7,660) | [1] | (8,318) | (350,214) | [1] |
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (443,923) | 20,400 | 53,686 | (933,667) | ||
Equity in earnings of operating joint venture, net of taxes | (404) | (253) | (736) | (75,411) | ||
NET INCOME (LOSS) | (444,327) | 20,147 | 52,950 | (1,009,078) | [2] | |
Other comprehensive income (loss), before tax: | ||||||
Foreign currency translation adjustments | (2,835) | (3,649) | 431 | (11,519) | ||
Net unrealized investment gains (losses) | (618,892) | (790,108) | [1] | (500,018) | (2,608,049) | [1] |
Interest rate remeasurement of future policy benefits | 90,909 | 97,171 | [1] | 73,321 | 346,865 | [1] |
Gain (loss) from changes in non-performance risk on market risk benefits | (429,966) | (3,233) | [1] | (497,289) | 1,786,353 | [1] |
Total | (960,784) | (699,819) | (923,555) | (486,350) | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (201,437) | (146,711) | [1] | (194,021) | (100,893) | [1] |
Other comprehensive income (loss), net of taxes | (759,347) | (553,108) | (729,534) | (385,457) | ||
Comprehensive income (loss) | $ (1,203,674) | $ (532,961) | $ (676,584) | $ (1,394,535) | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings / (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance at Dec. 31, 2021 | [1] | $ 6,213,996 | $ 2,500 | $ 6,042,491 | $ (227,449) | $ 396,454 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 8,160 | 8,160 | ||||
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | (482,207) | (482,207) | ||||
Other comprehensive income (loss), net of tax | 66,559 | 66,559 | ||||
Total comprehensive income (loss) | (415,648) | |||||
Ending Balance at Mar. 31, 2022 | [1] | 5,806,508 | 2,500 | 6,050,651 | (709,656) | 463,013 |
Beginning Balance at Dec. 31, 2021 | [1] | 6,213,996 | 2,500 | 6,042,491 | (227,449) | 396,454 |
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | [2] | (1,009,078) | ||||
Other comprehensive income (loss), net of tax | (385,457) | |||||
Ending Balance at Sep. 30, 2022 | [1] | 4,811,810 | 2,500 | 6,034,840 | (1,236,527) | 10,997 |
Beginning Balance at Mar. 31, 2022 | [1] | 5,806,508 | 2,500 | 6,050,651 | (709,656) | 463,013 |
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) | (547,018) | (547,018) | ||||
Other comprehensive income (loss), net of tax | 101,092 | 101,092 | ||||
Total comprehensive income (loss) | (445,926) | |||||
Ending Balance at Jun. 30, 2022 | [1] | 5,350,272 | 2,500 | 6,040,341 | (1,256,674) | 564,105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 6,508 | 6,508 | ||||
Contributed (distributed) capital-parent/child asset transfers | (12,009) | (12,009) | ||||
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | 20,147 | 20,147 | ||||
Other comprehensive income (loss), net of tax | (553,108) | (553,108) | ||||
Total comprehensive income (loss) | (532,961) | |||||
Ending Balance at Sep. 30, 2022 | [1] | 4,811,810 | 2,500 | 6,034,840 | (1,236,527) | 10,997 |
Beginning Balance at Dec. 31, 2022 | [3] | 5,036,195 | 2,500 | 6,037,914 | (994,154) | (10,065) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 405,000 | 405,000 | ||||
Contributed (distributed) capital-parent/child asset transfers | 1,870 | 1,870 | ||||
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | 279,679 | 279,679 | ||||
Other comprehensive income (loss), net of tax | 416,704 | 416,704 | ||||
Total comprehensive income (loss) | 696,383 | |||||
Ending Balance at Mar. 31, 2023 | 6,139,448 | 2,500 | 6,444,784 | (714,475) | 406,639 | |
Beginning Balance at Dec. 31, 2022 | [3] | 5,036,195 | 2,500 | 6,037,914 | (994,154) | (10,065) |
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | 52,950 | |||||
Other comprehensive income (loss), net of tax | (729,534) | |||||
Ending Balance at Sep. 30, 2023 | 3,816,917 | 2,500 | 5,495,220 | (941,204) | (739,599) | |
Beginning Balance at Mar. 31, 2023 | 6,139,448 | 2,500 | 6,444,784 | (714,475) | 406,639 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Return of capital | (300,000) | (300,000) | ||||
Contributed (distributed) capital-parent/child asset transfers | 498 | 498 | ||||
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | 217,598 | 217,598 | ||||
Other comprehensive income (loss), net of tax | (386,891) | (386,891) | ||||
Total comprehensive income (loss) | (169,293) | |||||
Ending Balance at Jun. 30, 2023 | 5,670,653 | 2,500 | 6,145,282 | (496,877) | 19,748 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | (650,000) | (650,000) | ||||
Contributed (distributed) capital-parent/child asset transfers | (62) | (62) | ||||
Comprehensive income (loss): | ||||||
NET INCOME (LOSS) | (444,327) | (444,327) | ||||
Other comprehensive income (loss), net of tax | (759,347) | (759,347) | ||||
Total comprehensive income (loss) | (1,203,674) | |||||
Ending Balance at Sep. 30, 2023 | $ 3,816,917 | $ 2,500 | $ 5,495,220 | $ (941,204) | $ (739,599) | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3] Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 52,950 | $ (1,009,078) | [1] |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | 47,830 | 89,744 | [1] |
Interest credited to policyholders’ account balances | 467,112 | 318,586 | [1] |
Realized investment (gains) losses, net | 581,241 | (810,771) | [1] |
Change in value of market risk benefits, net of related hedging (gains) losses | 266,156 | 1,235,415 | [1] |
Change in: | |||
Future policy benefits and other insurance liabilities | 1,722,582 | 3,283,649 | [1] |
Reinsurance recoverables | (447,411) | (1,936,549) | [1] |
Accrued investment income | (85,831) | (35,718) | |
Net payables to/receivables from parent and affiliates | (9,978) | 97,663 | |
Deferred policy acquisition costs | (386,514) | (336,285) | [1] |
Income taxes | (430,883) | (446,118) | [1] |
Derivatives, net | (547,545) | (1,144,519) | |
Other, net | 107,768 | 1,717,442 | [1],[2] |
Cash flows from (used in) operating activities | 1,337,477 | 1,023,461 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 1,096,571 | 1,511,002 | |
Fixed maturities, trading | 68,734 | 871,217 | |
Equity securities | 189,090 | 109,213 | |
Policy loans | 141,484 | 126,551 | |
Ceded policy loans | (94,874) | (85,231) | |
Short-term investments | 352,689 | 212,518 | |
Commercial mortgage and other loans | 98,558 | 179,274 | |
Other invested assets | 11,800 | 70,570 | |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (5,957,466) | (5,061,674) | |
Fixed maturities, trading | (746,093) | (186,069) | |
Equity securities | (86,748) | (281,610) | |
Policy loans | (1,111,590) | (111,949) | |
Ceded policy loans | 127,365 | 55,194 | |
Short-term investments | (473,889) | (485,509) | |
Commercial mortgage and other loans | (665,136) | (547,112) | |
Other invested assets | (137,809) | (108,025) | |
Notes receivable from parent and affiliates, net | 4,302 | 410 | |
Derivatives, net | (56,949) | (331,816) | |
Other, net | (3,924) | 35,618 | |
Cash flows from (used in) investing activities | (7,243,885) | (4,027,428) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Policyholders’ account deposits | 9,193,418 | 9,164,371 | |
Ceded policyholders’ account deposits | (875,022) | (916,797) | |
Policyholders’ account withdrawals | (2,805,559) | (4,338,707) | |
Ceded policyholders’ account withdrawals | 454,740 | 425,911 | |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 97,263 | 191,938 | |
Contributed / (return of) capital | (545,000) | 0 | |
Contributed (distributed) capital - parent/child asset transfers | 2,919 | (15,366) | |
Net change in all other financing arrangements (maturities 90 days or less) | (584) | 0 | |
Drafts outstanding | 109,199 | 49,310 | |
Other, net | (58,917) | 23,476 | |
Cash flows from (used in) financing activities | 5,354,059 | 4,485,516 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (552,349) | 1,481,549 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,397,627 | 918,931 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,845,278 | $ 2,400,480 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period has been reclassified to conform to the current period presentation. |
Unaudited Interim Consolidate_6
Unaudited Interim Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
The Prudential Insurance Company of America | ||
Non-cash activities | $ 18 | |
FLIAC | ||
Non-cash activities | $ 470 | 4,130 |
Lotus Re | ||
Non-cash activities | $ 531 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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”). 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. See Note 11 for additional information regarding this reinsurance arrangement. Basis of Presentation On January 1, 2023, the Company adopted ASU 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for all periods presented in the Unaudited Interim Consolidated Financial Statements. 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, 2022, and the Company's restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. Adoption of ASU 2018-12 In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts which provides new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. The Company adopted this guidance, effective January 1, 2023, using the modified retrospective transition method, where permitted, for changes to the liability for future policy benefits and deferred policy acquisition costs ("DAC") and related balances, and using the retrospective transition method, as required, for market risk benefits. The Company applied the guidance as of the transition date of January 1, 2021 and retrospectively adjusted prior period amounts shown in the 2023 financial statements to reflect the new guidance. The following tables present amounts as previously reported in 2022, the effect upon those amounts from the adoption of the new guidance under ASU 2018-12 Unaudited Interim Consolidated Statements of Financial Position: December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 6,616,097 $ 314,328 $ 6,930,425 Reinsurance recoverables 34,561,825 2,534,737 37,096,562 Deferred sales inducements 275,574 105,930 381,504 Income tax assets 1,873,740 (178,989) 1,694,751 Market risk benefit assets 0 1,393,237 1,393,237 Other assets 1,327,393 4,034 1,331,427 TOTAL ASSETS $ 189,299,841 $ 4,173,277 $ 193,473,118 Policyholders’ account balances $ 41,748,241 $ 164,295 $ 41,912,536 Future policy benefits 23,204,533 (2,375,500) 20,829,033 Market risk benefit liabilities 0 5,521,601 5,521,601 Other liabilities 3,407,156 190,217 3,597,373 Total liabilities 184,936,310 3,500,613 188,436,923 Retained earnings / (accumulated deficit) (95,583) (898,571) (994,154) Accumulated other comprehensive income (loss) (1,581,300) 1,571,235 (10,065) Total equity 4,363,531 672,664 5,036,195 TOTAL LIABILITIES AND EQUITY $ 189,299,841 $ 4,173,277 $ 193,473,118 Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss): Three Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of Change As Currently Reported (in thousands) REVENUES Premiums $ 63,354 $ (1,638) $ 61,716 Policy charges and fee income 438,781 (68,835) 369,946 Other income (loss) (163,701) 2,294 (161,407) Realized investment gains (losses), net 23,958 73,313 97,271 Change in value of market risk benefits, net of related hedging gain (loss) 0 (80,078) (80,078) TOTAL REVENUES 641,708 (74,944) 566,764 BENEFITS AND EXPENSES Policyholders’ benefits 122,139 (34,454) 87,685 Change in estimates of liability for future policy benefits 0 (2,935) (2,935) Interest credited to policyholders’ account balances 105,170 (7,521) 97,649 Amortization of deferred policy acquisition costs 96,048 32,372 128,420 General, administrative and other expenses 241,370 1,835 243,205 TOTAL BENEFITS AND EXPENSES 564,727 (10,703) 554,024 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 76,981 (64,241) 12,740 Income tax expense (benefit) (1,983) (5,677) (7,660) INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 78,964 (58,564) 20,400 NET INCOME (LOSS) $ 78,711 $ (58,564) $ 20,147 Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (862,220) 72,112 (790,108) Interest rate remeasurement of future policy benefits 0 97,171 97,171 Gain (loss) from changes in non-performance risk on market risk benefits 0 (3,233) (3,233) Total (865,869) 166,050 (699,819) Less: Income tax expense (benefit) related to other comprehensive income (loss) (181,602) 34,891 (146,711) Other comprehensive income (loss), net of taxes (684,267) 131,159 (553,108) Comprehensive income (loss) $ (605,556) $ 72,595 $ (532,961) Nine Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of Change As Currently Reported (in thousands) REVENUES Premiums $ 195,020 $ (9,475) $ 185,545 Policy charges and fee income 1,256,155 (398,274) 857,881 Other income (loss) (803,321) 8,192 (795,129) Realized investment gains (losses), net 1,522,774 (712,003) 810,771 Change in value of market risk benefits, net of related hedging gain (loss) 0 (1,235,415) (1,235,415) TOTAL REVENUES 2,972,394 (2,346,975) 625,419 BENEFITS AND EXPENSES Policyholders’ benefits 500,009 (132,466) 367,543 Change in estimates of liability for future policy benefits 0 42,865 42,865 Interest credited to policyholders’ account balances 391,640 (73,054) 318,586 Amortization of deferred policy acquisition costs 731,768 (347,384) 384,384 General, administrative and other expenses 795,514 408 795,922 TOTAL BENEFITS AND EXPENSES 2,418,931 (509,631) 1,909,300 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 553,463 (1,837,344) (1,283,881) Income tax expense (benefit) 69,090 (419,304) (350,214) INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 484,373 (1,418,040) (933,667) NET INCOME (LOSS) $ 408,962 $ (1,418,040) $ (1,009,078) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (2,775,879) 167,830 (2,608,049) Interest rate remeasurement of future policy benefits 0 346,865 346,865 Gain (loss) from changes in non-performance risk on market risk benefits 0 1,786,353 1,786,353 Total (2,787,398) 2,301,048 (486,350) Less: Income tax expense (benefit) related to other comprehensive income (loss) (584,114) 483,221 (100,893) Other comprehensive income (loss), net of taxes (2,203,284) 1,817,827 (385,457) Comprehensive income (loss) $ (1,794,322) $ 399,787 $ (1,394,535) Unaudited Interim Consolidated Statements of Cash Flows: Nine Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 408,962 $ (1,418,040) $ (1,009,078) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (70,540) 160,284 89,744 Interest credited to policyholders’ account balances 391,640 (73,054) 318,586 Realized investment (gains) losses, net (1,522,774) 712,003 (810,771) Change in value of market risk benefits, net of related hedging (gains) losses 0 1,235,415 1,235,415 Change in: Future policy benefits and other insurance liabilities 2,021,063 1,262,586 3,283,649 Reinsurance recoverables (875,612) (1,060,937) (1,936,549) Deferred policy acquisition costs 11,130 (347,415) (336,285) Income taxes (26,802) (419,316) (446,118) Other, net(1) 1,768,968 (51,526) 1,717,442 Cash flows from (used in) operating activities $ 1,023,461 $ 0 $ 1,023,461 (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 1,772,398 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (722,837) Updates to certain universal life contract liabilities(2) (116,120) Other(3) 72,950 Total pre-tax adjustments (766,007) Tax impacts 160,861 Balance after-tax, after transition $ 1,167,252 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance gains ("DRG") and losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 546,128 Interest rate remeasurement of future policy benefits (196,526) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 722,837 Unwinding amounts related to unrealized investment gains and losses(2) (102,042) Change in operating joint ventures (753) Total pre-tax adjustments 423,516 Tax impacts (89,096) Balance after-tax, after transition $ 880,548 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 462,098 $ 1,971,838 $ 2,433,936 Unwinding amounts related to unrealized investment gains and losses 0 74,702 74,702 Other(1) 1 (15,557) (15,556) Balance after transition $ 462,099 $ 2,030,983 $ 2,493,082 (1) Represents miscellaneous model refinements. January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 118,579 $ 87,932 $ 27,167 $ 233,678 Unwinding amounts related to unrealized investment gains and losses 14,804 0 0 14,804 Effect of change in reserve basis to market risk benefits 141,032 0 0 141,032 Effect of change in SOP 03-1 reserve basis 0 0 (27,167) (27,167) Balance after transition $ 274,415 $ 87,932 $ 0 $ 362,347 (1) Deferred reinsurance losses are included in “Other assets”. January 1, 2021 Deferred Reinsurance Gains(1) Variable/Universal Life (in thousands) Balance prior to transition $ 134,213 Effect of change in SOP 03-1 reserve basis 40,046 Balance after transition $ 174,259 (1) Deferred reinsurance gains are included in “Other liabilities”. January 1, 2021 Benefit Reserves(1) Term Life Life Insurance - Taiwan Other(2) Total (in thousands) Balance prior to transition $ 6,674,490 $ 1,592,329 $ 219,744 $ 8,486,563 Changes in cash flow assumptions and other activity (259) 43,233 (7,283) 35,691 Balance after transition, at original discount rate 6,674,231 1,635,562 212,461 8,522,254 Cumulative changes in discount rate assumptions 2,432,010 3,316,991 27,818 5,776,819 Balance after transition, at current discount rate 9,106,241 4,952,553 240,279 14,299,073 Less: Reinsurance recoverable 8,536,200 4,952,553 239,874 13,728,627 Balance after transition, net of reinsurance recoverable $ 570,041 $ 0 $ 405 $ 570,446 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8. (2) Other includes fixed annuities and retirement products. January 1, 2021 Deferred Profit Liability(1) Life Insurance - Taiwan Other(2) Total (in thousands) Balance prior to transition $ 49,127 $ 1,689 $ 50,816 Changes in benefit reserves (6,671) 8,521 1,850 Balance after transition 42,456 10,210 52,666 Less: Reinsurance recoverable 42,456 10,210 52,666 Balance after transition, net of reinsurance recoverable $ 0 $ 0 $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) Other includes fixed annuities and retirement products. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 9,363,585 $ 588,311 $ 9,951,896 Unwinding amounts related to unrealized investment gains and losses (1,426,811) (53,889) (1,480,700) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 7,936,774 534,422 8,471,196 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (534,422) (534,422) Updates to certain universal life contract liabilities(2) 1,771,341 0 1,771,341 Balance after transition, excluding amounts related to unrealized investment gains and losses 9,708,115 0 9,708,115 Amounts related to unrealized investment gains and losses after transition 1,169,972 0 1,169,972 Balance after transition 10,878,087 0 10,878,087 Less: Reinsurance recoverable 10,685,150 0 10,685,150 Balance after transition, net of reinsurance recoverable $ 192,937 $ 0 $ 192,937 (1) AIR, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 1,377,669 Unwinding amounts related to unrealized investment gains and losses and other activity 367,599 Balance after transition 1,745,268 Less: Reinsurance recoverable 751,517 Balance after transition, net of reinsurance recoverable $ 993,751 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 13,227,814 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 534,422 Total liability prior to transition 13,762,236 Change in reserve basis to market risk benefits framework (184,693) Market risk benefits after transition, at current non-performance risk value 13,577,543 Less: Reinsured market risk benefits 13,589,575 Market risk benefits after transition, net of reinsurance $ (12,032) Market risk benefits after transition, at contract inception non-performance risk value 14,300,380 Cumulative change in non-performance risk 722,837 Market risk benefits after transition, at current non-performance risk value $ 13,577,543 (1) For additional information regarding market risk benefits, see Note 10. January 1, 2021 Cost of Reinsurance(1) Variable/Universal Life (in thousands) Balance prior to transition $ 602,294 Unwinding amounts related to unrealized investment gains and losses (246,899) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 355,395 Impact from updates to certain universal life contract liabilities(2) 81,920 Balance after transition, excluding amounts related to unrealized investment gains and losses 437,315 Amounts related to unrealized investment gains and losses after transition 191,098 Balance after transition $ 628,413 (1) Cost of reinsurance is included in "Other liabilities". (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. 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 future policy benefits; 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; market risk benefits; the valuation of investments including derivatives, the measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; reinsurance recoverables; any provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. Out of Period Adjustments During the three months ended September 30, 2022, the Company recorded out of period adjustments resulting in an aggregate net charge of $73 million to “Income (loss) from operations before income taxes and equity in earnings of operating joint venture”. The adjustments primarily relate to the valuation of the embedded derivative associated with the variable indexed annuities reinsurance recoverable that should have been recorded in the second quarter of 2022 to “Realized investment gains (losses), net”. The aggregate impact of out of period adjustments recorded in the first nine months of 2022 was a net charge of $72 million to “Income (loss) from operations before income taxes and equity in earnings of operating joint ventures”. These adjustments relate to reserves for certain universal and variable life products and certain portions of variable life and annuities reinsurance activity. 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 ASUs to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of September 30, 2023, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Consolidated Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $271 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to an increase to "Total equity" of $673 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU and (2) updated accounting policies for all of the periods presented in the Unaudited Interim Consolidated Financial Statements. (1) Key Accounting Policy Changes Area of Change 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-payment 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. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, 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, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Area of Change Description Method of adoption Effect on the financial statements or other significant matters Amortization of deferred acquisition costs and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Consolidated Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. 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. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. (2) Updated Accounting Policies This section includes the updated accounting policies resulting from the adoption of ASU 2018-12 which are applicable to all of the periods presented in the Unaudited Interim Financial Statements. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. ASSETS Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”. Upon the adoption of ASU 2018-12, the carrying amount of DAC for long-duration contracts is no longer subject to recoverability testing. DAC for most long-duration contracts is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see "Annual Assumptions Review" below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits 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 are also generally assumed to be lower for the period where surrender charges apply. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Consolidated Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term ("YRT") arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under YRT arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contractholders to the Company. As YRT arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. Market risk benefit assets represents MRBs in an asset position and are presented separately from MRBs in a liability position. See “ Market risk benefit liabilities ” below. MRB assets also reflect ceded MRBs resulting from reinsurance of the Company's Prudential Defined Income ("PDI") traditional variable annuity contracts. See Note 11 for additional information regarding the reinsurance of PDI. Other assets consists primarily of deposit assets related to a reinsurance agreement entered into with a third-party reinsurer during 2021 using deposit accounting under U.S. GAAP, see Note 11 for additional information. Included in these deposit assets are amounts representing fair value of embedded derivative instruments associated with the index-linked features of certain annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Also included are premiums due, deferred loss on reinsurance which is amortized over the expected life of the reinsured contracts on a constant-level basis, receivables resulting from sales of securities that had not yet settled at the balance sheet date, prepaid tax expenses, and the Company’s investments in operating joint ventures. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. Deferred Sales Inducements are amounts that are credited to a policyholders’ account balance primarily as an inducement to purchase fixed and/or variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology, factors and assumptions used to amortize DAC. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” Unlike DAC, DSI are considered contractual cash flows and, as a result, are subject to periodic recoverability testing. See Note 6 for additional information regarding DSI. Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. 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. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. LIABILITIES Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of such payments depend on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. In addition, for limited-payment contracts, the liability for future policy benefits also includes a Deferred Profit Liability representing gross premiums received in excess of net premiums and is generally recognized in revenue in a constant relationship with insurance in force for life contracts or with the amount of expected future benefit payments for annuity contracts. The DPL is subject to a retrospective unlocking adjustment consistent with the liability for future policy benefits discussed above. The DPL cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”). For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio and DPL as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance and any DSI asset), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. To date, the Company has not recorded a PFL liability on any such contracts. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 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 $ 392,452 $ 119 $ 99,511 $ 0 $ 293,060 Obligations of U.S. states and their political subdivisions 794,103 562 62,748 0 731,917 Foreign government bonds 341,894 628 75,489 0 267,033 U.S. public corporate securities 10,141,650 9,571 1,313,950 1,097 8,836,174 U.S. private corporate securities 4,958,820 3,596 427,455 2,946 4,532,015 Foreign public corporate securities 1,883,846 1,134 190,248 264 1,694,468 Foreign private corporate securities 4,802,652 19,942 622,422 0 4,200,172 Asset-backed securities(1) 2,037,295 15,615 23,202 0 2,029,708 Commercial mortgage-backed securities 926,653 32 93,898 0 832,787 Residential mortgage-backed securities(2) 403,193 139 22,303 8 381,021 Total fixed maturities, available-for-sale $ 26,682,558 $ 51,338 $ 2,931,226 $ 4,315 $ 23,798,355 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans and credit cards. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 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 $ 354,348 $ 300 $ 72,856 $ 0 $ 281,792 Obligations of U.S. states and their political subdivisions 654,884 4,275 30,959 0 628,200 Foreign government bonds 330,967 1,140 58,640 5 273,462 U.S. public corporate securities 7,414,790 21,299 992,145 0 6,443,944 U.S. private corporate securities 4,140,734 13,071 335,205 1,871 3,816,729 Foreign public corporate securities 1,539,172 2,455 163,384 21 1,378,222 Foreign private corporate securities 4,338,585 19,761 589,153 2,863 3,766,330 Asset-backed securities(1) 1,467,955 6,976 32,577 0 1,442,354 Commercial mortgage-backed securities 727,159 94 69,101 0 658,152 Residential mortgage-backed securities(2) 342,493 3,211 9,479 9 336,216 Total fixed maturities, available-for-sale $ 21,311,087 $ 72,582 $ 2,353,499 $ 4,769 $ 19,025,401 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and home equity. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2023 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 $ 97,348 $ 3,963 $ 191,991 $ 95,548 $ 289,339 $ 99,511 Obligations of U.S. states and their political subdivisions 448,520 24,252 212,638 38,496 661,158 62,748 Foreign government bonds 36,806 3,030 223,995 72,459 260,801 75,489 U.S. public corporate securities 3,555,490 173,174 4,847,346 1,140,717 8,402,836 1,313,891 U.S. private corporate securities 1,574,199 66,338 2,620,568 361,085 4,194,767 427,423 Foreign public corporate securities 588,547 15,738 951,916 174,194 1,540,463 189,932 Foreign private corporate securities 1,426,572 58,934 2,293,089 563,488 3,719,661 622,422 Asset-backed securities 580,841 7,610 599,359 15,592 1,180,200 23,202 Commercial mortgage-backed securities 177,533 3,454 584,984 90,444 762,517 93,898 Residential mortgage-backed securities 258,938 8,288 119,993 14,014 378,931 22,302 Total fixed maturities, available-for-sale $ 8,744,794 $ 364,781 $ 12,645,879 $ 2,566,037 $ 21,390,673 $ 2,930,818 December 31, 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 $ 212,991 $ 46,928 $ 62,630 $ 25,928 $ 275,621 $ 72,856 Obligations of U.S. states and their political subdivisions 307,734 16,851 61,915 14,108 369,649 30,959 Foreign government bonds 139,577 19,435 111,371 39,205 250,948 58,640 U.S. public corporate securities 3,873,275 389,937 1,979,725 602,208 5,853,000 992,145 U.S. private corporate securities 2,506,932 157,853 948,686 177,352 3,455,618 335,205 Foreign public corporate securities 548,083 40,508 596,437 122,856 1,144,520 163,364 Foreign private corporate securities 1,772,413 199,124 1,479,608 390,029 3,252,021 589,153 Asset-backed securities 625,710 15,146 289,581 17,431 915,291 32,577 Commercial mortgage-backed securities 459,186 30,408 176,349 38,693 635,535 69,101 Residential mortgage-backed securities 129,721 9,220 1,294 259 131,015 9,479 Total fixed maturities, available-for-sale $ 10,575,622 $ 925,410 $ 5,707,596 $ 1,428,069 $ 16,283,218 $ 2,353,479 As of September 30, 2023 and December 31, 2022, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance of $2,754.1 million and $2,164.1 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 $176.7 million and $189.4 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of September 30, 2023, the $2,566.0 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, 2022, the $1,428.1 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. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at September 30, 2023. This conclusion was based on detailed analysis of the underlying credit and cash flows for each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening and foreign currency exchange rate movements . As of September 30, 2023, 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 amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2023 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 753,797 $ 735,127 Due after one year through five years 8,340,245 7,851,028 Due after five years through ten years 6,783,822 6,071,535 Due after ten years 7,437,553 5,897,149 Asset-backed securities 2,037,295 2,029,708 Commercial mortgage-backed securities 926,653 832,787 Residential mortgage-backed securities 403,193 381,021 Total fixed maturities, available-for-sale $ 26,682,558 $ 23,798,355 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 151,383 $ 377,344 $ 280,064 $ 1,055,433 Proceeds from maturities/prepayments 318,188 222,454 806,521 453,241 Gross investment gains from sales and maturities 1,377 (2,527) 10,826 (3,885) Gross investment losses from sales and maturities (10,920) (2,371) (28,445) (44,274) Write-downs recognized in earnings(2) 4 (1,088) 11 (20,604) (Addition to) release of allowance for credit losses 608 98 454 (563) (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $10.0 million and $2.3 million for the nine months ended September 30, 2023 and 2022, 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 September 30, 2023 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 4,917 $ 0 $ 0 $ 6 $ 4,923 Additions to allowance for credit losses not previously recorded 0 0 374 0 0 0 374 Reductions for securities sold during the period 0 0 (1,280) 0 0 0 (1,280) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 0 296 0 0 2 298 Balance, end of period $ 0 $ 0 $ 4,307 $ 0 $ 0 $ 8 $ 4,315 Three Months Ended September 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 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Additions to allowance for credit losses not previously recorded 0 0 534 0 0 7 541 Reductions for securities sold during the period 0 (92) (21) 0 0 0 (113) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 (14) (512) 0 0 0 (526) Balance, end of period $ 0 $ 10 $ 4,695 $ 0 $ 0 $ 7 4,712 Nine Months Ended September 30, 2023 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 $ 5 $ 4,755 $ 0 $ 0 $ 9 $ 4,769 Additions to allowance for credit losses not previously recorded 0 0 3,539 0 0 0 3,539 Reductions for securities sold during the period 0 (1) (5,054) 0 0 0 (5,055) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 (4) 1,067 0 0 (1) 1,062 Balance, end of period $ 0 $ 0 $ 4,307 $ 0 $ 0 $ 8 $ 4,315 Nine Months Ended September 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 12,696 0 0 7 13,032 Reductions for securities sold during the period 0 (96) (1,223) 0 0 0 (1,319) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Additions (reductions) on securities with previous allowance 0 90 5,750 0 0 0 5,840 Balance, end of period $ 0 $ 10 $ 4,695 $ 0 $ 0 $ 7 $ 4,712 See Note 2 to the Consolidated Financial Statements included in the Company’s restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended September 30, 2023, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to net reductions within the utility sector within corporate securities, due to an investment restructuring. For the three months ended September 30, 2022, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to recoveries in the capital goods and transportation sectors within corporate securities. For the nine months ended September 30, 2023, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to net reductions within the capital goods and utility sectors within corporate securities due to restructurings, partially offset by net additions within the technology and finance sectors within corporate securities due to adverse projected cashflows. For the nine months ended September 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 consumer non-cyclical and utility sectors within corporate securities, partially offset by a recovery in the transportation sector. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both September 30, 2023 and December 31, 2022. 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 $(221.6) million and $(194.6) million during the three months ended September 30, 2023 and 2022, respectively, and $(179.0) million and $(715.1) million during the nine months ended September 30, 2023 and 2022, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $(10.9) million and $(10.2) million during the three months ended September 30, 2023 and 2022, respectively, and $(2.8) million and $(24.3) million during the nine months ended September 30, 2023 and 2022, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans”, as of the dates indicated: September 30, 2023 December 31, 2022 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 1,450,305 26.3 % $ 1,289,026 26.0 % Hospitality 102,536 1.9 104,177 2.1 Industrial 2,097,019 38.0 1,766,247 35.8 Office 580,189 10.5 590,897 11.9 Other 410,324 7.4 380,121 7.7 Retail 364,678 6.6 351,457 7.1 Total commercial mortgage loans 5,005,051 90.7 4,481,925 90.6 Agricultural property loans 514,918 9.3 467,018 9.4 Total commercial mortgage and agricultural property loans 5,519,969 100.0 % 4,948,943 100.0 % Allowance for credit losses (27,100) (20,263) Total net commercial mortgage and agricultural property loans $ 5,492,869 $ 4,928,680 As of September 30, 2023, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States with the largest concentrations in California (29%), Texas (12%) and New York (5%), and included loans secured by properties in Europe (9%), Mexico (2%) and Australia (1%). The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended September 30, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 21,133 $ 960 $ 22,093 $ 9,704 $ 220 $ 9,924 Addition to (release of) allowance for expected losses 5,055 (48) 5,007 6,116 92 6,208 Allowance, end of period $ 26,188 $ 912 $ 27,100 $ 15,820 $ 312 $ 16,132 Nine Months Ended September 30, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 19,665 $ 598 $ 20,263 $ 5,847 $ 104 $ 5,951 Addition to (release of) allowance for expected losses 6,523 314 6,837 9,973 208 10,181 Allowance, end of period $ 26,188 $ 912 $ 27,100 $ 15,820 $ 312 $ 16,132 See Note 2 to the Consolidated Financial Statements included in the Company’s restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended September 30, 2023, the net increase in the allowance for credit losses on commercial mortgage and other loans was due to an increase in loan specific reserves and an increase in the general allowance due to declining market conditions and loan originations. For the three months ended September 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 declining market conditions and loan originations. For the nine months ended September 30, 2023, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to an increase in loan specific reserves and an increase in the general allowance due to current market conditions and loan originations. For the nine months ended September 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 declining market conditions and loan originations. The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 195,586 $ 245,400 $ 454,857 $ 98,187 $ 256,820 $ 1,126,765 $ 0 $ 2,377,615 60%-69.99% 194,755 378,576 503,195 180,257 215,928 188,358 0 1,661,069 70%-79.99% 197,272 155,548 222,693 71,335 20,950 74,022 0 741,820 80% or greater 0 0 73,415 3,801 13,316 134,015 0 224,547 Total $ 587,613 $ 779,524 $ 1,254,160 $ 353,580 $ 507,014 $ 1,523,160 $ 0 $ 5,005,051 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 495,769 $ 775,990 $ 1,254,160 $ 282,245 $ 468,051 $ 1,422,566 $ 0 $ 4,698,781 1.0 - 1.2x 91,844 3,534 0 0 23,667 7,904 0 126,949 Less than 1.0x 0 0 0 71,335 15,296 92,690 0 179,321 Total $ 587,613 $ 779,524 $ 1,254,160 $ 353,580 $ 507,014 $ 1,523,160 $ 0 $ 5,005,051 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 27,184 $ 186,471 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 418,707 60%-69.99% 34,315 56,210 0 0 0 0 0 90,525 70%-79.99% 5,686 0 0 0 0 0 0 5,686 80% or greater 0 0 0 0 0 0 0 0 Total $ 67,185 $ 242,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 514,918 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 67,185 $ 240,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 512,918 1.0 - 1.2x 0 2,000 0 0 0 0 0 2,000 Less than 1.0x 0 0 0 0 0 0 0 0 Total $ 67,185 $ 242,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 514,918 December 31, 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% $ 266,453 $ 262,095 $ 63,558 $ 222,638 $ 201,087 $ 894,646 $ 1,910,477 60%-69.99% 344,110 681,996 243,800 219,593 61,757 305,175 1,856,431 70%-79.99% 166,629 304,386 47,388 66,148 2,409 53,336 640,296 80% or greater 0 0 0 3,249 0 71,472 74,721 Total $ 777,192 $ 1,248,477 $ 354,746 $ 511,628 $ 265,253 $ 1,324,629 $ 4,481,925 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 744,301 $ 1,248,477 $ 243,325 $ 452,626 $ 258,617 $ 1,203,807 $ 4,151,153 1.0 - 1.2x 32,891 0 83,655 26,558 6,636 45,742 195,482 Less than 1.0x 0 0 27,766 32,444 0 75,080 135,290 Total $ 777,192 $ 1,248,477 $ 354,746 $ 511,628 $ 265,253 $ 1,324,629 $ 4,481,925 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 208,708 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 410,808 60%-69.99% 56,210 0 0 0 0 0 56,210 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 264,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 467,018 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 262,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 465,018 1.0 - 1.2x 2,000 0 0 0 0 0 2,000 Less than 1.0x 0 0 0 0 0 0 0 Total $ 264,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 467,018 See Note 2 to the Consolidated Financial Statements included in the Company’s restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2023 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 $ 5,005,051 $ 0 $ 0 $ 0 $ 5,005,051 $ 0 Agricultural property loans 514,918 0 0 0 514,918 0 Total $ 5,519,969 $ 0 $ 0 $ 0 $ 5,519,969 $ 0 (1) As of September 30, 2023, 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. December 31, 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 $ 4,481,925 $ 0 $ 0 $ 0 $ 4,481,925 $ 0 Agricultural property loans 465,689 0 1,329 0 467,018 0 Total $ 4,947,614 $ 0 $ 1,329 $ 0 $ 4,948,943 $ 0 (1) As of December 31, 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. For both the three months ended September 30, 2023 and 2022, 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. For the nine months ended September 30, 2023 and 2022, there were $0.0 million and $27.6 million of commercial mortgage and other loans acquired, other than those through direct origination, and there were $0.0 million and $24.8 million of commercial mortgage and other loans sold. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both September 30, 2023 and December 31, 2022. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Company’s investment in separate accounts $ 426 $ 510 LPs/LLCs: Equity method: Private equity 340,262 287,969 Hedge funds 670,663 576,595 Real estate-related 92,674 107,429 Subtotal equity method 1,103,599 971,993 Fair value: Private equity 56,468 59,146 Hedge funds 194 396 Real estate-related 8,313 9,457 Subtotal fair value 64,975 68,999 Total LPs/LLCs 1,168,574 1,040,992 Derivative instruments 34,591 47,111 Total other invested assets $ 1,203,591 $ 1,088,613 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Fixed maturities $ 258,396 $ 187,628 Equity securities 403 349 Commercial mortgage and other loans 17,985 13,335 Policy loans 25,416 14,525 Other invested assets 43 48 Short-term investments and cash equivalents 6,665 3,750 Total accrued investment income $ 308,908 $ 219,635 There were no significant write-downs on accrued investment income for both the three and nine months ended September 30, 2023 and 2022. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities, available-for-sale $ 312,405 $ 153,170 $ 822,933 $ 384,347 Fixed maturities, trading 26,104 12,752 65,739 40,796 Equity securities 3,886 3,077 9,206 4,429 Commercial mortgage and other loans 58,673 29,682 163,646 74,731 Policy loans 15,962 5,354 31,580 15,573 Other invested assets 36,152 7,109 77,875 82,142 Short-term investments and cash equivalents 27,347 14,444 88,105 18,533 Gross investment income 480,529 225,588 1,259,084 620,551 Less: investment expenses (19,665) (14,826) (55,695) (38,361) Net investment income $ 460,864 $ 210,762 $ 1,203,389 $ 582,190 Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities(1) $ (8,931) $ (5,888) $ (17,154) $ (69,326) Commercial mortgage and other loans (5,059) (7,513) (7,143) (13,872) Other invested assets 10,856 (75,864) 24,052 (72,328) Derivatives(2) (465,176) 186,514 (582,846) 966,487 Short-term investments and cash equivalents 54 22 1,850 (190) Realized investment gains (losses), net(2) $ (468,256) $ 97,271 $ (581,241) $ 810,771 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 742 $ 4,371 Fixed maturity securities, available-for-sale without an allowance (2,880,630) (2,285,288) Derivatives designated as cash flow hedges(1) 94,460 138,627 Affiliated notes (12,218) (13,189) Other investments(2)(3) (1,255) (1,176) Net unrealized gains (losses) on investments $ (2,798,901) $ (2,156,655) (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". (3) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both September 30, 2023 and December 31, 2022, the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities”, which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: September 30, 2023 December 31, 2022 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) Foreign government bonds $ 490 $ 0 $ 490 $ 506 $ 0 $ 506 U.S. public corporate securities 6,879 0 6,879 7,903 0 7,903 Foreign public corporate securities 3,362 0 3,362 12,873 0 12,873 Equity securities 173,270 0 173,270 65,468 0 65,468 Total cash collateral for loaned securities(1) $ 184,001 $ 0 $ 184,001 $ 86,750 $ 0 $ 86,750 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. 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. September 30, 2023 December 31, 2022 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 $ 6,172 $ 0 $ (356) $ 3,225 $ 0 $ (316) Foreign Currency Swaps 2,100,808 187,257 (18,111) 1,933,343 233,812 (10,462) Total Derivatives Designated as Hedge Accounting Instruments $ 2,106,980 $ 187,257 $ (18,467) $ 1,936,568 $ 233,812 $ (10,778) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 160,769,460 $ 10,293,935 $ (22,659,077) $ 138,419,110 $ 6,757,890 $ (17,092,749) Interest Rate Options 29,418,000 311,893 (1,404,581) 8,368,000 123,168 (225,125) Interest Rate Futures 2,557,132 495 (5,251) 2,425,500 3,267 (201) Interest Rate Forwards 1,104,000 84,165 (86,244) 1,104,000 11,265 (12,359) Foreign Currency Foreign Currency Forwards 929,085 18,545 (6,270) 364,946 590 (10,423) Credit Credit Default Swaps 144,300 885 (316) 47,450 346 0 Currency/Interest Rate Foreign Currency Swaps 2,332,940 167,484 (15,371) 2,289,170 194,412 (14,624) Equity Total Return Swaps 13,759,916 440,719 (253,318) 15,958,130 120,341 (175,104) Equity Options 45,258,330 805,583 (1,363,539) 25,187,516 239,003 (1,112,196) Equity Futures 803,642 364 (4,063) 876,790 956 (513) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 257,076,805 $ 12,124,068 $ (25,798,030) $ 195,040,612 $ 7,451,238 $ (18,643,294) Total Derivatives(1)(2) $ 259,183,785 $ 12,311,325 $ (25,816,497) $ 196,977,180 $ 7,685,050 $ (18,654,072) (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 $5,731 million and $3,351 million as of September 30, 2023 and December 31, 2022, respectively, primarily included in "Policyholders' account balances". (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Unaudited Interim Consolidated Statements of Financial Position. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 12,311,325 $ (12,276,734) $ 34,591 $ 0 $ 34,591 Securities purchased under agreements to resell 140,000 0 140,000 0 140,000 Total Assets $ 12,451,325 $ (12,276,734) $ 174,591 $ 0 $ 174,591 Offsetting of Financial Liabilities: Derivatives $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,685,050 $ (7,637,939) $ 47,111 $ 0 $ 47,111 Securities purchased under agreements to resell 290,000 0 290,000 (290,000) 0 Total Assets $ 7,975,050 $ (7,637,939) $ 337,111 $ (290,000) $ 47,111 Offsetting of Financial Liabilities: Derivatives $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 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 14. 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps and interest rate swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, or equity derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ (32) $ 0 $ (12) Currency/Interest Rate (936) 0 10,629 19,494 (5,189) Total cash flow hedges (935) 0 10,597 19,494 (5,201) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 53,990 (2,059,987) 0 0 0 Currency 20,401 0 0 0 0 Currency/Interest Rate 8,059 0 0 262 0 Credit (253) 0 0 0 0 Equity (449,655) 266,623 0 0 0 Embedded Derivatives (96,783) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (464,241) (1,793,364) 0 262 0 Total $ (465,176) $ (1,793,364) $ 10,597 $ 19,756 $ (5,201) Nine Months Ended September 30, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 0 $ (86) $ 0 $ (13) Currency/Interest Rate (365) 0 33,308 2,041 (44,154) Total cash flow hedges (363) 0 33,222 2,041 (44,167) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 69,702 (2,767,152) 0 0 0 Currency 8,375 0 0 0 0 Currency/Interest Rate (28,263) 0 0 62 0 Credit 2,073 0 0 0 0 Equity 694,236 (331,444) 0 0 0 Embedded Derivatives (1,325,493) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (579,370) (3,098,596) 0 62 0 Total $ (579,733) $ (3,098,596) $ 33,222 $ 2,103 $ (44,167) Three Months Ended September 30, 2022 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss)(1) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ (6) $ 0 $ (113) Currency/Interest Rate 10,342 0 9,735 48,729 84,011 Total cash flow hedges 10,343 0 9,729 48,729 83,898 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 140,569 (1,204,876) 0 0 0 Currency 19,236 0 0 0 0 Currency/Interest Rate 79,436 0 0 383 0 Credit 9,495 0 0 0 0 Equity (348,314) 233,542 0 0 0 Embedded Derivatives 275,749 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 176,171 (971,334) 0 383 0 Total $ 186,514 $ (971,334) $ 9,729 $ 49,112 $ 83,898 Nine Months Ended September 30, 2022 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss)(1) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ 10 $ 0 $ (334) Currency/Interest Rate 9,989 0 26,301 88,912 188,727 Total cash flow hedges 9,990 0 26,311 88,912 188,393 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 623,761 (4,984,420) 0 0 0 Currency 39,037 0 0 0 0 Currency/Interest Rate 192,373 0 0 786 0 Credit (31,954) 0 0 0 0 Equity (173,413) 1,383,178 0 0 0 Embedded Derivatives 306,693 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 956,497 (3,601,242) 0 786 0 Total $ 966,487 $ (3,601,242) $ 26,311 $ 89,698 $ 188,393 (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2022 $ 138,627 Amount recorded in AOCI Interest Rate (97) Currency/Interest Rate (9,170) Total amount recorded in AOCI (9,267) Amount reclassified from AOCI to income Interest Rate 84 Currency/Interest Rate (34,984) Total amount reclassified from AOCI to income (34,900) Balance, September 30, 2023 $ 94,460 The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using September 30, 2023 values, it is estimated that a pre-tax gain of $21 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending September 30, 2024. 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 $144 million and $47 million as of September 30, 2023 and December 31, 2022, respectively. These credit derivatives are reported at fair value as an asset of $1 million and $0 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 the notional amount of these credit derivatives had the following NAIC rating: $42 million in NAIC 3 and $102 million in NAIC 6. The Company has no exposure on purchased credit protection as of September 30, 2023 and December 31, 2022. 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. As a result of the adoption of ASU 2018-12 in the first quarter of 2023, the Company is required to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value. Market risk benefit liabilities (or assets) represent contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits in the annuities products including GMDB, GMIB, GMAB, GMWB and GMIWB. The benefits are bundled together and accounted for as single compound market risk benefits using a fair value measurement framework. The fair value of these market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of these benefit features is based on assumptions a market participant would use in valuing market risk benefits. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these market risk benefits include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the valuations, the assets and liabilities included in market risk benefits have been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the SOFR swap curve adjusted for an additional spread relative to SOFR to reflect the Company’s market-perceived 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 the Company issued 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 are insurance liabilities and are therefore senior to debt. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon company emerging experience and industry studies, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. See "Annual Assumptions Review" in Note 2 for additional information. Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. September 30, 2023 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 $ 293,060 $ 0 $ $ 293,060 Obligations of U.S. states and their political subdivisions 0 731,917 0 731,917 Foreign government bonds 0 266,347 686 267,033 U.S. corporate public securities 0 8,836,174 0 8,836,174 U.S. corporate private securities 0 4,065,855 466,160 4,532,015 Foreign corporate public securities 0 1,687,936 6,532 1,694,468 Foreign corporate private securities 0 3,728,278 471,894 4,200,172 Asset-backed securities(2) 0 1,916,281 113,427 2,029,708 Commercial mortgage-backed securities 0 756,036 76,751 832,787 Residential mortgage-backed securities 0 381,021 0 381,021 Subtotal 0 22,662,905 1,135,450 23,798,355 Market risk benefit assets 0 0 2,519,234 2,519,234 Fixed maturities, trading 0 2,443,548 725 2,444,273 Equity securities 169,378 10,333 44,686 224,397 Short-term investments 19,809 200,674 584 221,067 Cash equivalents 0 1,144,914 0 1,144,914 Other invested assets(3) 9,208 12,302,117 0 (12,276,734) 34,591 Other assets 0 0 270,490 270,490 Reinsurance recoverable 0 0 15,544 15,544 Receivables from parent and affiliates 0 144,699 0 144,699 Subtotal excluding separate account assets 198,395 38,909,190 3,986,713 (12,276,734) 30,817,564 Separate account assets(4)(5) 130,896 106,518,193 5,500 106,654,589 Total assets $ 329,291 $ 145,427,383 $ 3,992,213 $ (12,276,734) $ 137,472,153 Market risk benefit liabilities $ 0 $ 0 $ 4,371,178 $ $ 4,371,178 Policyholders' account balances 0 0 6,005,729 6,005,729 Payables to parent and affiliates 0 25,806,000 0 (21,870,566) 3,935,434 Other liabilities(6) 10,497 (5,396) 0 (1,367) 3,734 Total liabilities $ 10,497 $ 25,800,604 $ 10,376,907 $ (21,871,933) $ 14,316,075 December 31, 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 $ 281,792 $ 0 $ $ 281,792 Obligations of U.S. states and their political subdivisions 0 628,200 0 628,200 Foreign government bonds 0 272,738 724 273,462 U.S. corporate public securities 0 6,443,944 0 6,443,944 U.S. corporate private securities 0 3,573,269 243,460 3,816,729 Foreign corporate public securities 0 1,371,354 6,868 1,378,222 Foreign corporate private securities 0 3,509,162 257,168 3,766,330 Asset-backed securities(2) 0 1,421,852 20,502 1,442,354 Commercial mortgage-backed securities 0 573,930 84,222 658,152 Residential mortgage-backed securities 0 336,216 0 336,216 Subtotal 0 18,412,457 612,944 19,025,401 Market risk benefit assets(7) 0 0 1,393,237 1,393,237 Fixed maturities, trading 0 1,936,159 0 1,936,159 Equity securities 108,076 6,403 28,593 143,072 Short-term investments 0 81,215 16,945 98,160 Cash equivalents 0 1,432,182 0 1,432,182 Other invested assets(3) 4,223 7,680,827 0 (7,637,939) 47,111 Other assets 0 0 141,041 141,041 Receivables from parent and affiliates 0 148,075 0 148,075 Subtotal excluding separate account assets 112,299 29,697,318 2,192,760 (7,637,939) 24,364,438 Separate account assets(4)(5) 102,243 108,682,425 4,645 108,789,313 Total assets $ 214,542 $ 138,379,743 $ 2,197,405 $ (7,637,939) $ 133,153,751 Market risk benefit liabilities(7) $ 0 $ 0 $ 5,521,601 $ $ 5,521,601 Policyholders' account balances 0 0 3,502,096 3,502,096 Payables to parent and affiliates 0 18,653,159 0 (16,568,242) 2,084,917 Other liabilities(6) 899 (9,496) 0 (670) (9,267) Total liabilities $ 899 $ 18,643,663 $ 9,023,697 $ (16,568,912) $ 11,099,347 (1) “Netting” amounts represent cash collateral of $(9,595) million and $(8,931) million as of September 30, 2023 and December 31, 2022, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of September 30, 2023 and December 31, 2022, the fair values of such investments were $65 million and $69 million, respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At September 30, 2023 and December 31, 2022, the fair value of such investments were $4,957 million and $5,262 million, respectively. (6) Other liabilities includes embedded derivatives associated with reinsurance agreements. (7) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. September 30, 2023 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 726,528 Discounted cash flow Discount rate 8.23 % 20 % 12.16 % Decrease Liquidation Liquidation value 63.62 % 63.62 % 63.62 % Increase Market risk benefit assets(4) $ 2,519,234 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.48 % 2.10 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(4) $ 4,371,178 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.48 % 2.10 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(10) $ 6,005,729 Discounted cash flow Lapse rate(5) 1 % 80 % Decrease Spread over SOFR(6) 0.48 % 2.15 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 6 % 28 % Increase Option budget(11) (1) % 6 % Increase December 31, 2022 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 408,494 Discounted cash flow Discount rate 9.77 % 20 % 16.53 % Decrease Market Comparables EBITDA multiples(3) 2.2 X 23.5 X 8.1 X Increase Market risk benefit assets(4)(12) $ 1,393,237 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.50 % 2.20 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 18 % 26 % Decrease Liabilities: Market risk benefit liabilities(4)(12) $ 5,521,601 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.50 % 2.20 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(10) $ 3,502,096 Discounted cash flow Lapse rate(5) 1 % 80 % Decrease Spread over SOFR(6) 0.22 % 2.26 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 6 % 30 % Increase Option budget(11) (2) % 6 % 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. (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) Market risk benefits primarily represent fair value for all living benefit guarantees including accumulation, withdrawal and income benefits. Since the valuation methodology for these assets and 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) 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. (6) 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 September 30, 2023 and December 31, 2022, 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 are insurance liabilities and are therefore senior to debt. Effective April 2023, the Company entered into an agreement with The Ohio National Life Insurance Company ("Ohio National"), an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. See Note 11 for additional information regarding this transaction. As a result of this transaction, a ceded MRB asset balance was established to fair value the reinsurance reimbursements to the Company. The establishment of the fair value also required an estimate of NPR for Ohio National, which may differ from that of the Company's; however, the NPR spreads for Ohio National were developed using a methodology similar to that of the Company. (7) 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. (8) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2023 and December 31, 2022, the minimum withdrawal rate assumption is 81% and 77%, respectively. As of September 30, 2023 and December 31, 2022, 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%. (9) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 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. (10) 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 weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (11) Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. (12) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. 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. Market Risk Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally 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 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 (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 701 $ (15) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (17) Corporate securities(3) 721,247 (27,838) 182,465 (10,882) 0 (27,762) (708) 117,152 (9,088) 944,586 (28,256) Structured securities(4) 146,339 (3,871) 53,352 0 0 (339) 0 2,297 (7,600) 190,178 (3,836) Other assets: Fixed maturities, trading 0 18 0 0 0 0 707 0 0 725 18 Equity securities 43,374 (1,219) 2,531 0 0 0 0 0 0 44,686 (1,219) Short-term investments 1,209 0 802 0 0 (1,427) 0 0 0 584 0 Other assets 217,613 25,539 33,850 0 0 (6,512) 0 0 0 270,490 19,028 Reinsurance recoverables 1,465 14,079 0 0 0 0 0 0 0 15,544 14,079 Separate account assets 4,982 (7) 1,049 (524) 0 0 0 0 0 5,500 (6) Liabilities: Policyholders' account balances(5) (5,513,449) (107,528) 0 0 (413,219) 0 28,467 0 0 (6,005,729) (273,135) Three Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,048) $ 0 $ 0 $ (31,183) $ 507 $ (674) $ 0 $ 0 $ (31,435) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (1,219) 0 0 0 0 (1,219) 0 0 Other assets 25,539 0 0 0 0 19,028 0 0 0 Reinsurance recoverables 14,079 0 0 0 0 14,079 0 0 0 Separate account assets 0 0 (7) 0 0 0 0 (6) 0 Liabilities: Policyholders' account balances (107,528) 0 0 0 0 (273,135) 0 0 0 Nine Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 724 $ (38) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (46) Corporate securities(3) 507,496 (20,639) 493,339 (39,721) 0 (104,604) 651 117,152 (9,088) 944,586 (21,842) Structured securities(4) 104,724 (7,070) 200,659 (27) 0 (1,677) 0 4,537 (110,968) 190,178 (6,965) Other assets: Fixed maturities, trading 0 18 6,250 0 0 0 707 0 (6,250) 725 18 Equity securities 28,593 (2,030) 2,531 0 0 0 15,592 0 0 44,686 (2,030) Short-term investments 16,945 2,573 3,490 0 0 (21,065) (1,359) 0 0 584 51 Other assets 141,041 33,559 107,453 0 0 (11,563) 0 0 0 270,490 21,997 Reinsurance recoverables 0 15,544 0 0 0 0 0 0 0 15,544 15,544 Separate account assets 4,645 250 1,889 (1,124) 0 (160) 0 0 0 5,500 249 Liabilities: Policyholders' account balances(5) (3,502,096) (1,355,011) 0 0 (1,251,457) 0 102,835 0 0 (6,005,729) (508,105) Nine Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,861) $ 0 $ 0 $ (26,743) $ 857 $ (2,693) $ 0 $ 0 $ (26,160) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (2,030) 0 0 0 0 (2,030) 0 0 Short-term investments 1,857 0 0 (73) 789 0 0 0 51 Other assets 33,559 0 0 0 0 21,997 0 0 0 Reinsurance recoverables 15,544 0 0 0 0 15,544 0 0 0 Separate account assets 0 0 250 0 0 0 0 249 0 Liabilities: Policyholders' account balances (1,355,011) 0 0 0 0 (508,105) 0 0 0 Three Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 135 $ 88 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 86 Corporate securities(3) 317,878 (7,376) 66,826 (11,975) 0 (54,455) 106,408 6,259 0 423,565 (6,546) Structured securities(4) 123,288 (2,903) 28,250 0 0 (403) 0 0 (33,490) 114,742 (2,860) Other assets: Equity securities 29,783 (1,111) 0 0 0 0 0 0 0 28,672 (1,110) Short-term investments 2,772 2 0 0 0 (5,876) 7,290 0 0 4,188 0 Other assets 75,858 56,595 (24,914) 0 0 (104) 0 0 0 107,435 56,700 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,427,667) 217,837 0 0 0 (433,009) 0 0 0 (3,642,839) 843,341 Three Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 307 $ 0 $ 0 $ (9,226) $ (1,272) $ 491 $ 0 $ 0 $ (9,811) Other assets: Equity securities 0 (1,111) 0 0 0 0 (1,110) 0 0 Short-term investments 0 0 0 0 2 0 0 0 0 Other assets 56,595 0 0 0 0 56,700 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 217,837 0 0 0 0 843,341 0 0 0 Nine Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 150 $ 73 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 71 Corporate securities(3) 385,634 (56,596) 200,137 (24,363) 0 (87,790) 106,408 6,259 (106,124) 423,565 (53,687) Structured securities(4) 173,944 (25,231) 61,740 0 0 (1,476) 0 0 (94,235) 114,742 (25,140) Other assets: Equity securities 12,472 (3,231) 10,000 (230) 0 0 9,661 0 0 28,672 (3,249) Short-term investments 0 7 2,766 0 0 (5,930) 7,290 55 0 4,188 0 Other assets 72,937 60,932 (23,673) 0 0 (2,761) 0 0 0 107,435 63,692 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,245,773) 188,287 0 0 0 (824,375) 239,022 0 0 (3,642,839) 1,272,540 Nine Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (16,505) $ 0 $ 0 $ (64,307) $ (942) $ (13,988) $ 0 $ 0 $ (64,768) Other assets: Equity securities 0 (3,231) 0 0 0 0 (3,249) 0 0 Short-term investments 0 0 0 0 7 0 0 0 0 Other assets 60,932 0 0 0 0 63,692 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 188,287 0 0 0 0 1,272,540 0 0 0 (1) "Other" largely represents non-cash moves related to novated variable indexed annuities under the reinsurance agreement with FLIAC. See Note 11 for more details regarding these transactions. In addition, for the prior year Policyholders' account balances 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. (2) 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. (3) Includes U.S. corporate private, foreign corporate public, foreign corporate private securities and foreign government bonds. (4) Includes asset-backed and commercial mortgage-backed securities. (5) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (6) Effective January 1, 2021, Future policy benefits previously included in “Changes in Level 3 Assets and Liabilities” are now reported as Market Risk Benefits. See Note 10 for additional information. (7) Excludes MRB assets of $2,519 million and $1,306 million and MRB liabilities of $4,371 million and $5,945 million for period ending September 30, 2023 and 2022, respectively. See Note 10 for additional information. 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 ass |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements | DEFERRED POLICY ACQUISITION COSTS, DEFERRED REINSURANCE AND DEFERRED SALES INDUCEMENTS Deferred Policy Acquisition Costs The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 102,251 $ 3,736,454 $ 648,837 $ 2,442,883 $ 6,930,425 Capitalization 77,409 180,239 114,860 412,902 785,410 Amortization expense (15,270) (245,590) (47,256) (90,768) (398,884) Other(1) 0 (393,385) 0 (12) (393,397) Balance, end of period $ 164,390 $ 3,277,718 $ 716,441 $ 2,765,005 $ 6,923,554 (1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 84,479 $ 3,806,733 $ 577,084 $ 2,561,011 $ 7,029,307 Capitalization 14,235 213,698 97,395 395,907 721,235 Amortization expense (10,059) (255,420) (40,383) (78,522) (384,384) Other(1) 0 0 (322) (541,429) (541,751) Balance, end of period $ 88,655 $ 3,765,011 $ 633,774 $ 2,336,967 $ 6,824,407 (1) Other includes the impact of the reinsurance agreement with Lotus Re. Deferred Reinsurance Losses The following tables show a rollforward for the lines of business that contain DRL balances, along with a reconciliation to the Company's total DRL balance: Nine Months Ended September 30, 2023 Variable Annuities Term Life Total (in thousands) Balance, beginning of period $ 223,515 $ 69,378 $ 292,893 Amortization expense (22,283) (6,350) (28,633) Other (8) 0 (8) Balance, end of period $ 201,224 $ 63,028 $ 264,252 Nine Months Ended September 30, 2022 Variable Annuities Term Life Total (in thousands) Balance, beginning of period $ 254,577 $ 78,426 $ 333,003 Amortization expense (23,225) (6,841) (30,066) Other (8) 0 (8) Balance, end of period $ 231,344 $ 71,585 $ 302,929 Deferred Reinsurance Gains The following tables show a rollforward for the lines of business that contain DRG balances, along with a reconciliation to the Company's total DRG balance: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable / Universal Life Total (in thousands) Balance, beginning of period $ 57,898 $ 0 $ 1,434,958 $ 1,492,856 Amortization (7,141) (10,265) (53,834) (71,240) Other(1) 28 277,133 0 277,161 Balance, end of period $ 50,785 $ 266,868 $ 1,381,124 $ 1,698,777 (1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable / Universal Life Total (in thousands) Balance, beginning of period $ 78,138 $ 0 $ 174,598 $ 252,736 Amortization (4,815) 0 (61,631) (66,446) Other(1) (13,803) 0 1,340,312 1,326,509 Balance, end of period $ 59,520 $ 0 $ 1,453,279 $ 1,512,799 (1) Includes $1,352 million deferred gain related to the reinsurance agreement with Lotus Re, entered into January 1, 2022. Deferred Sales Inducements The following table shows a rollforward of DSI balances for variable annuity products, which is the only line of business that contains a DSI balance, along with a reconciliation to the Company's total DSI balance: Nine Months Ended September 30, 2023 2022 Variable Annuities (in thousands) Balance, beginning of period $ 381,504 $ 414,619 Capitalization 2,053 751 Amortization expense (23,881) (25,546) Other (2) 0 Balance, end of period $ 359,674 $ 389,824 |
Separate Accounts
Separate Accounts | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Separate Accounts | SEPARATE ACCOUNTS The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options . See Note 9 for additional information. The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities”. The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net”. Separate Account Assets The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: September 30, 2023 December 31, 2022 (in thousands) Asset Type: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 2,439 $ 2,510 U.S. corporate securities 4,289 8,702 Foreign corporate securities 1,614 1,420 Mortgage-backed securities 177 276 Mutual funds: Equity 64,287,893 67,144,660 Fixed Income 38,483,909 38,109,374 Other 3,777,729 3,441,016 Equity securities 83,292 49,260 Other invested assets 4,958,037 5,262,178 Short-term investments 9,688 1,237 Cash and cash equivalents 2,319 30,613 Total $ 111,611,386 $ 114,051,246 For the nine months ended September 30, 2023 and year ended December 31, 2022, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded. Separate Account Liabilities The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 91,785,448 $ 22,265,798 $ 114,051,246 Deposits 327,045 2,013,783 2,340,828 Investment performance 4,080,782 2,022,446 6,103,228 Policy charges (1,740,555) (615,562) (2,356,117) Surrenders and withdrawals (6,989,586) (249,911) (7,239,497) Benefit payments (57,037) (158,198) (215,235) Net transfers (to) from general account(1) (4,467) (1,115,178) (1,119,645) Other 8,355 38,223 46,578 Balance, end of period $ 87,409,985 $ 24,201,401 $ 111,611,386 Cash surrender value(2) $ 86,152,668 $ 21,219,141 $ 107,371,809 Nine Months Ended September 30, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 123,977,624 $ 25,820,204 $ 149,797,828 Deposits 562,208 1,699,430 2,261,638 Investment performance (26,283,957) (5,354,052) (31,638,009) Policy charges (1,929,880) (570,639) (2,500,519) Surrenders and withdrawals (6,480,743) (274,650) (6,755,393) Benefit payments (49,586) (238,873) (288,459) Net transfers (to) from general account (201,039) (170,926) (371,965) Other 9,839 29,687 39,526 Balance, end of period $ 89,604,466 $ 20,940,181 $ 110,544,647 Cash surrender value(2) $ 87,929,884 $ 18,336,152 $ 106,266,036 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability For Future Policy Ben
Liability For Future Policy Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Liability For Future Policy Benefits | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves In 2023, the Company recognized an immaterial impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees. In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves, primarily due to updates to mortality assumptions on individual term life insurance. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees. Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. Nine Months Ended September 30, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 10,911,794 $ 0 $ 10,911,794 Effect of cumulative changes in discount rate assumptions, beginning of period 554,896 0 554,896 Balance at original discount rate, beginning of period 11,466,690 0 11,466,690 Effect of assumption update (790) 0 (790) Effect of actual variances from expected experience and other activity (144,504) (1,257) (145,761) Adjusted balance, beginning of period 11,321,396 (1,257) 11,320,139 Issuances 512,379 28,889 541,268 Net premiums / considerations collected (1,008,159) (27,632) (1,035,791) Interest accrual 391,662 0 391,662 Balance at original discount rate, end of period 11,217,278 0 11,217,278 Effect of cumulative changes in discount rate assumptions, end of period (939,494) 0 (939,494) Balance, end of period $ 10,277,784 $ 0 $ 10,277,784 Nine Months Ended September 30, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 17,835,251 $ 204,727 $ 18,039,978 Effect of cumulative changes in discount rate assumptions, beginning of period 962,034 24,876 986,910 Balance at original discount rate, beginning of period 18,797,285 229,603 19,026,888 Effect of assumption update (1,044) 0 (1,044) Effect of actual variances from expected experience and other activity (191,864) 6,793 (185,071) Adjusted balance, beginning of period 18,604,377 236,396 18,840,773 Issuances 512,379 28,889 541,268 Interest accrual 670,905 6,300 677,205 Benefit payments (1,019,151) (25,504) (1,044,655) Other adjustments 2,845 (84) 2,761 Balance at original discount rate, end of period 18,771,355 245,997 19,017,352 Effect of cumulative changes in discount rate assumptions, end of period (1,767,981) (34,327) (1,802,308) Balance, end of period $ 17,003,374 $ 211,670 $ 17,215,044 Other, end of period 1,838 Total balance, end of period $ 17,216,882 Nine Months Ended September 30, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 6,725,590 $ 211,670 $ 6,937,260 Flooring impact, end of period 1,773 0 1,773 Balance, end of period, post-flooring 6,727,363 211,670 6,939,033 Less: Reinsurance recoverable 6,241,505 17,097 6,258,602 Balance after reinsurance recoverable, end of period, post-flooring $ 485,858 $ 194,573 $ 680,431 Nine Months Ended September 30, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 12,485,056 $ 0 $ 12,485,056 Effect of cumulative changes in discount rate assumptions, beginning of period (1,826,120) 0 (1,826,120) Balance at original discount rate, beginning of period 10,658,936 0 10,658,936 Effect of assumption update 1,295,294 0 1,295,294 Effect of actual variances from expected experience and other activity (86,611) (1,032) (87,643) Adjusted balance, beginning of period 11,867,619 (1,032) 11,866,587 Issuances 317,058 23,787 340,845 Net premiums / considerations collected (1,000,325) (22,755) (1,023,080) Interest accrual 392,917 0 392,917 Balance at original discount rate, end of period 11,577,269 0 11,577,269 Effect of cumulative changes in discount rate assumptions, end of period (751,597) 0 (751,597) Balance, end of period $ 10,825,672 $ 0 $ 10,825,672 Nine Months Ended September 30, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 20,937,097 $ 237,065 $ 21,174,162 Effect of cumulative changes in discount rate assumptions, beginning of period (3,607,275) (16,704) (3,623,979) Balance at original discount rate, beginning of period 17,329,822 220,361 17,550,183 Effect of assumption update 1,756,995 0 1,756,995 Effect of actual variances from expected experience and other activity (171,967) (1,489) (173,456) Adjusted balance, beginning of period 18,914,850 218,872 19,133,722 Issuances 317,058 23,787 340,845 Interest accrual 664,008 5,798 669,806 Benefit payments (1,046,082) (20,263) (1,066,345) Other adjustments 3,692 (285) 3,407 Balance at original discount rate, end of period 18,853,526 227,909 19,081,435 Effect of cumulative changes in discount rate assumptions, end of period (1,370,645) (28,806) (1,399,451) Balance, end of period $ 17,482,881 $ 199,103 $ 17,681,984 Other, end of period 2,186 Total balance, end of period $ 17,684,170 Nine Months Ended September 30, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, post-flooring $ 6,657,281 $ 199,103 $ 6,856,384 Less: Reinsurance recoverable 6,293,473 16,408 6,309,881 Balance after reinsurance recoverable, end of period, post-flooring $ 363,808 $ 182,695 $ 546,503 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: Nine Months Ended September 30, 2023 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 21,914,391 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,083,578 $ 0 Discounted expected future gross premiums (at current discount rate) $ 13,840,343 $ 0 Undiscounted expected future benefits and expenses $ 29,147,479 $ 328,212 Interest accrual $ 279,242 $ 6,300 Gross premiums $ 1,351,460 $ 32,677 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 9 6 Weighted-average interest rate (at original discount rate) 5.18 % 3.62 % Weighted-average interest rate (at current discount rate) 6.02 % 5.95 % Nine Months Ended September 30, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 22,344,548 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,403,622 $ 0 Discounted expected future gross premiums (at current discount rate) $ 14,404,899 $ 0 Undiscounted expected future benefits and expenses $ 29,477,887 $ 303,385 Interest accrual $ 271,091 $ 5,798 Gross premiums $ 1,379,044 $ 25,058 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.26 % 3.55 % Weighted-average interest rate (at current discount rate) 5.67 % 5.58 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first nine months of 2023, there was a $35 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $34 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. In the first nine months of 2022, there was a $99 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $97 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first nine months of 2022 is primarily due to unfavorable assumption updates related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 18,193 $ 15,765 Effect of actual variances from expected experience and other activity (6,924) 834 Adjusted balance, beginning of period 11,269 16,599 Profits deferred 4,834 2,173 Interest accrual 423 444 Amortization (1,647) (1,424) Other adjustments (11) (25) Balance, end of period 14,868 17,767 Less: Reinsurance recoverable 1,435 1,710 Balance after reinsurance recoverable $ 13,433 $ 16,057 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Revenue(1) $ 3,325 $ (2,002) Interest accrual 423 444 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Balance, including amounts in AOCI, beginning of period, post-flooring $ 12,664,445 $ 11,660,527 Flooring impact and amounts in AOCI 1,269,237 (896,930) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 13,933,682 10,763,597 Effect of assumption update 22,910 2,197,592 Effect of actual variances from expected experience and other activity (12,611) (215,658) Adjusted balance, beginning of period 13,943,981 12,745,531 Assessments collected(1) 828,657 738,061 Interest accrual 360,309 318,069 Benefits paid (219,784) (131,667) Balance, excluding amounts in AOCI, end of period, pre-flooring 14,913,163 13,669,994 Flooring impact and amounts in AOCI (1,714,686) (1,576,731) Balance, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Less: Reinsurance recoverable 12,979,687 11,902,756 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 218,790 $ 190,507 (1) Represents the portion of gross assessments required to fund the future policy benefits. Nine Months Ended September 30, 2023 2022 ($ in thousands) Interest accrual $ 360,309 $ 318,069 Gross assessments $ 1,168,206 $ 1,020,763 Weighted-average duration of the liability in years (at original discount rate) 22 23 Weighted-average interest rate (at original discount rate) 3.36 % 3.38 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 6,939,033 $ 6,856,384 Deferred profit liability, end of period, post-flooring 14,868 17,767 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Subtotal of amounts disclosed above 20,152,378 18,967,414 Other Future policy benefits reserves(1) 1,104,756 1,036,278 Total Future policy benefits $ 21,257,134 $ 20,003,692 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated: Nine Months Ended September 30, 2023 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,351,460 $ 0 $ 32,677 $ 1,384,137 Deferred profit liability 0 0 3,325 3,325 Additional insurance reserves 0 1,168,206 0 1,168,206 Total $ 1,351,460 $ 1,168,206 $ 36,002 $ 2,555,668 Nine Months Ended September 30, 2022 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,379,044 $ 0 $ 25,058 $ 1,404,102 Deferred profit liability 0 0 (2,002) (2,002) Additional insurance reserves 0 1,020,763 0 1,020,763 Total $ 1,379,044 $ 1,020,763 $ 23,056 $ 2,422,863 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves. Nine Months Ended September 30, 2023 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 279,242 $ 0 $ 6,300 $ 285,542 Deferred profit liability 0 0 423 423 Additional insurance reserves 0 360,309 0 360,309 Total $ 279,242 $ 360,309 $ 6,723 $ 646,274 Nine Months Ended September 30, 2022 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 271,091 $ 0 $ 5,798 $ 276,889 Deferred profit liability 0 0 444 444 Additional insurance reserves 0 318,069 0 318,069 Total $ 271,091 $ 318,069 $ 6,242 $ 595,402 Policyholders' Account Balances The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,575,824 $ 16,432,032 $ 18,736,365 $ 38,744,221 Deposits 1,801,985 3,439,562 1,543,230 6,784,777 Interest credited 73,763 194,853 415,843 684,459 Policy charges (5,683) (16,564) (1,357,363) (1,379,610) Surrenders and withdrawals (161,929) (351,475) (579,913) (1,093,317) Benefit payments (37,459) (22,285) (62,055) (121,799) Net transfers (to) from separate account(1) 0 4,467 1,115,178 1,119,645 Change in market value and other adjustments(2) 81,544 1,095,144 76,107 1,252,795 Balance, end of period 5,328,045 20,775,734 19,887,392 45,991,171 Less: Reinsurance and other recoverables(3) 22,276 495,506 12,859,492 13,377,274 Policyholders' account balance net of reinsurance and other recoverables $ 5,305,769 $ 20,280,228 $ 7,027,900 $ 32,613,897 Unearned revenue reserve 3,568,084 Other 102,815 Total Policyholders' account balance $ 49,662,070 Weighted-average crediting rate 2.21 % 1.40 % 2.87 % 2.15 % Net amount at risk(4) $ 12 $ 0 $ 318,075,705 $ 318,075,717 Cash surrender value(5) $ 4,491,679 $ 17,981,713 $ 18,517,769 $ 40,991,161 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders' account balances gross liability. (4) The net amount at risk calculation includes both general and separate account balances. (5) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,005,867 $ 11,465,411 $ 18,762,548 $ 33,233,826 Deposits 352,985 3,742,495 1,624,685 5,720,165 Interest credited 38,232 120,516 435,694 594,442 Policy charges (3,393) (2,343) (1,343,735) (1,349,471) Surrenders and withdrawals (44,124) (182,878) (597,867) (824,869) Benefit payments (68,319) (28,907) (76,017) (173,243) Net transfers (to) from separate account 0 201,039 170,926 371,965 Change in market value and other adjustments(1) (97,166) 559,351 (278,141) 184,044 Balance, end of period 3,184,082 15,874,684 18,698,093 37,756,859 Less: Reinsurance and other recoverables(2) 4,664 328,079 12,970,107 13,302,850 Policyholders' account balance net of reinsurance and other recoverables $ 3,179,418 $ 15,546,605 $ 5,727,986 $ 24,454,009 Unearned revenue reserve 2,896,790 Other 98,896 Total Policyholders' account balance $ 40,752,545 Weighted-average crediting rate 1.65 % 1.18 % 3.10 % 2.23 % Net amount at risk(3) $ 235 $ 0 $ 300,033,962 $ 300,034,197 Cash surrender value(4) $ 2,617,105 $ 12,395,474 $ 17,084,598 $ 32,097,177 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (3) The net amount at risk calculation includes both general and separate account balances. (4) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: September 30, 2023 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 -50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 85 $ 188 $ 430 $ 20,481 $ 21,184 1.00% - 1.99% 497,237 74,579 237,130 82,040 890,986 2.00% - 2.99% 280,760 469,123 319,721 12,466 1,082,070 3.00% - 4.00% 31,048 0 0 0 31,048 Greater than 4.00% 0 0 0 0 0 Total $ 809,130 $ 543,890 $ 557,281 $ 114,987 $ 2,025,288 Variable Annuities Less than 1.00% $ 944,205 $ 821,295 $ 18,262 $ 2 $ 1,783,764 1.00% - 1.99% 221,831 2,113 1,086 0 225,030 2.00% - 2.99% 26,319 4,332 2,979 0 33,630 3.00% - 4.00% 956,761 3,416 0 0 960,177 Greater than 4.00% 2,027 0 0 0 2,027 Total $ 2,151,143 $ 831,156 $ 22,327 $ 2 $ 3,004,628 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 217,003 $ 217,003 1.00% - 1.99% 185,341 0 2,528,250 572,113 3,285,704 2.00% - 2.99% 27,536 1,418,150 2,778,586 268,998 4,493,270 3.00% - 4.00% 4,008,791 2,241,159 1,114,429 0 7,364,379 Greater than 4.00% 2,147,756 0 0 0 2,147,756 Total $ 6,369,424 $ 3,659,309 $ 6,421,265 $ 1,058,114 $ 17,508,112 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. September 30, 2022 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 520,312 66,011 127,370 48,257 761,950 2.00% - 2.99% 212,983 0 0 0 212,983 3.00% - 4.00% 40,381 0 0 0 40,381 Greater than 4.00% 0 0 0 0 0 Total $ 773,676 $ 66,011 $ 127,370 $ 48,257 $ 1,015,314 Variable Annuities Less than 1.00% $ 1,034,346 $ 869,636 $ 18,847 $ 2 $ 1,922,831 1.00% - 1.99% 247,033 2,223 339 0 249,595 2.00% - 2.99% 29,299 63 0 0 29,362 3.00% - 4.00% 1,110,933 0 0 0 1,110,933 Greater than 4.00% 2,167 0 0 0 2,167 Total $ 2,423,778 $ 871,922 $ 19,186 $ 2 $ 3,314,888 Variable Life / Universal Life Less than 1.00% $ 14,603 $ 0 $ 0 $ 0 $ 14,603 1.00% - 1.99% 323,385 0 733,182 2,014,152 3,070,719 2.00% - 2.99% 8,479 3,540 2,405,601 2,003,691 4,421,311 3.00% - 4.00% 4,559,965 11,551 2,316,936 139,908 7,028,360 Greater than 4.00% 2,085,177 0 0 0 2,085,177 Total $ 6,991,609 $ 15,091 $ 5,455,719 $ 4,157,751 $ 16,620,170 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. Unearned Revenue Reserve The balances of and changes in URR as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 3,067,336 $ 2,398,788 Unearned revenue 612,196 594,026 Amortization expense (111,353) (96,077) Other adjustments (95) 53 Balance, end of period 3,568,084 2,896,790 Less: Reinsurance recoverables 1,656,299 1,498,140 Unearned revenue reserve net of reinsurance recoverables $ 1,911,785 $ 1,398,650 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: Nine Months Ended September 30, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 4,550,625 $ (422,261) $ 4,128,364 Effect of cumulative changes in non-performance risk 1,727,910 0 1,727,910 Balance, beginning of period, before effect of changes in non-performance risk 6,278,535 (422,261) 5,856,274 Attributed fees collected 878,381 (179,211) 699,170 Claims paid (62,128) 5,903 (56,225) Interest accrual 235,979 (38,016) 197,963 Actual in force different from expected 52,753 (6,588) 46,165 Effect of changes in interest rates (2,869,989) 484,168 (2,385,821) Effect of changes in equity markets (940,654) 90,742 (849,912) Effect of assumption update 330,769 (54,067) 276,702 Issuances 21,271 8,206 29,477 Other adjustments(1) (17,436) (638,198) (655,634) Effect of changes in current period counterparty non-performance risk 0 (75,594) (75,594) Balance, end of period, before effect of changes in non-performance risk 3,907,481 (824,916) 3,082,565 Effect of cumulative changes in non-performance risk (1,230,621) 0 (1,230,621) Balance, end of period $ 2,676,860 $ (824,916) $ 1,851,944 Nine Months Ended September 30, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 8,884,362 $ (906,484) $ 7,977,878 Effect of cumulative changes in non-performance risk 287,605 0 287,605 Balance, beginning of period, before effect of changes in non-performance risk 9,171,967 (906,484) 8,265,483 Attributed fees collected 958,638 (113,016) 845,622 Claims paid (36,684) 1,567 (35,117) Interest accrual 71,646 (6,801) 64,845 Actual in force different from expected 77,474 (6,817) 70,657 Effect of changes in interest rates (6,853,674) 715,370 (6,138,304) Effect of changes in equity markets 3,966,792 (416,593) 3,550,199 Effect of assumption update (160,596) 23,170 (137,426) Effect of changes in current period counterparty non-performance risk 0 226,717 226,717 Balance, end of period, before effect of changes in non-performance risk 7,195,563 (482,887) 6,712,676 Effect of cumulative changes in non-performance risk (2,073,958) 0 (2,073,958) Balance, end of period $ 5,121,605 $ (482,887) $ 4,638,718 (1) Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information. In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to policyholder behavior assumptions on certain variable annuities. In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities. The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The following table presents accompanying information to the rollforward table above. September 30, 2023 September 30, 2022 Variable Annuities ($ in thousands) Net amount at risk(1) $ 12,504,440 $ 14,124,120 Weighted-average attained age of contractholders 70 69 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: September 30, 2023 September 30, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 2,519,234 $ 1,306,404 Market risk benefit liabilities 4,371,178 5,945,122 Net liability $ 1,851,944 $ 4,638,718 |
Policyholders' Liabilities
Policyholders' Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholders' Liabilities | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves In 2023, the Company recognized an immaterial impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees. In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves, primarily due to updates to mortality assumptions on individual term life insurance. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees. Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. Nine Months Ended September 30, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 10,911,794 $ 0 $ 10,911,794 Effect of cumulative changes in discount rate assumptions, beginning of period 554,896 0 554,896 Balance at original discount rate, beginning of period 11,466,690 0 11,466,690 Effect of assumption update (790) 0 (790) Effect of actual variances from expected experience and other activity (144,504) (1,257) (145,761) Adjusted balance, beginning of period 11,321,396 (1,257) 11,320,139 Issuances 512,379 28,889 541,268 Net premiums / considerations collected (1,008,159) (27,632) (1,035,791) Interest accrual 391,662 0 391,662 Balance at original discount rate, end of period 11,217,278 0 11,217,278 Effect of cumulative changes in discount rate assumptions, end of period (939,494) 0 (939,494) Balance, end of period $ 10,277,784 $ 0 $ 10,277,784 Nine Months Ended September 30, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 17,835,251 $ 204,727 $ 18,039,978 Effect of cumulative changes in discount rate assumptions, beginning of period 962,034 24,876 986,910 Balance at original discount rate, beginning of period 18,797,285 229,603 19,026,888 Effect of assumption update (1,044) 0 (1,044) Effect of actual variances from expected experience and other activity (191,864) 6,793 (185,071) Adjusted balance, beginning of period 18,604,377 236,396 18,840,773 Issuances 512,379 28,889 541,268 Interest accrual 670,905 6,300 677,205 Benefit payments (1,019,151) (25,504) (1,044,655) Other adjustments 2,845 (84) 2,761 Balance at original discount rate, end of period 18,771,355 245,997 19,017,352 Effect of cumulative changes in discount rate assumptions, end of period (1,767,981) (34,327) (1,802,308) Balance, end of period $ 17,003,374 $ 211,670 $ 17,215,044 Other, end of period 1,838 Total balance, end of period $ 17,216,882 Nine Months Ended September 30, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 6,725,590 $ 211,670 $ 6,937,260 Flooring impact, end of period 1,773 0 1,773 Balance, end of period, post-flooring 6,727,363 211,670 6,939,033 Less: Reinsurance recoverable 6,241,505 17,097 6,258,602 Balance after reinsurance recoverable, end of period, post-flooring $ 485,858 $ 194,573 $ 680,431 Nine Months Ended September 30, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 12,485,056 $ 0 $ 12,485,056 Effect of cumulative changes in discount rate assumptions, beginning of period (1,826,120) 0 (1,826,120) Balance at original discount rate, beginning of period 10,658,936 0 10,658,936 Effect of assumption update 1,295,294 0 1,295,294 Effect of actual variances from expected experience and other activity (86,611) (1,032) (87,643) Adjusted balance, beginning of period 11,867,619 (1,032) 11,866,587 Issuances 317,058 23,787 340,845 Net premiums / considerations collected (1,000,325) (22,755) (1,023,080) Interest accrual 392,917 0 392,917 Balance at original discount rate, end of period 11,577,269 0 11,577,269 Effect of cumulative changes in discount rate assumptions, end of period (751,597) 0 (751,597) Balance, end of period $ 10,825,672 $ 0 $ 10,825,672 Nine Months Ended September 30, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 20,937,097 $ 237,065 $ 21,174,162 Effect of cumulative changes in discount rate assumptions, beginning of period (3,607,275) (16,704) (3,623,979) Balance at original discount rate, beginning of period 17,329,822 220,361 17,550,183 Effect of assumption update 1,756,995 0 1,756,995 Effect of actual variances from expected experience and other activity (171,967) (1,489) (173,456) Adjusted balance, beginning of period 18,914,850 218,872 19,133,722 Issuances 317,058 23,787 340,845 Interest accrual 664,008 5,798 669,806 Benefit payments (1,046,082) (20,263) (1,066,345) Other adjustments 3,692 (285) 3,407 Balance at original discount rate, end of period 18,853,526 227,909 19,081,435 Effect of cumulative changes in discount rate assumptions, end of period (1,370,645) (28,806) (1,399,451) Balance, end of period $ 17,482,881 $ 199,103 $ 17,681,984 Other, end of period 2,186 Total balance, end of period $ 17,684,170 Nine Months Ended September 30, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, post-flooring $ 6,657,281 $ 199,103 $ 6,856,384 Less: Reinsurance recoverable 6,293,473 16,408 6,309,881 Balance after reinsurance recoverable, end of period, post-flooring $ 363,808 $ 182,695 $ 546,503 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: Nine Months Ended September 30, 2023 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 21,914,391 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,083,578 $ 0 Discounted expected future gross premiums (at current discount rate) $ 13,840,343 $ 0 Undiscounted expected future benefits and expenses $ 29,147,479 $ 328,212 Interest accrual $ 279,242 $ 6,300 Gross premiums $ 1,351,460 $ 32,677 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 9 6 Weighted-average interest rate (at original discount rate) 5.18 % 3.62 % Weighted-average interest rate (at current discount rate) 6.02 % 5.95 % Nine Months Ended September 30, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 22,344,548 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,403,622 $ 0 Discounted expected future gross premiums (at current discount rate) $ 14,404,899 $ 0 Undiscounted expected future benefits and expenses $ 29,477,887 $ 303,385 Interest accrual $ 271,091 $ 5,798 Gross premiums $ 1,379,044 $ 25,058 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.26 % 3.55 % Weighted-average interest rate (at current discount rate) 5.67 % 5.58 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first nine months of 2023, there was a $35 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $34 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. In the first nine months of 2022, there was a $99 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $97 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first nine months of 2022 is primarily due to unfavorable assumption updates related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 18,193 $ 15,765 Effect of actual variances from expected experience and other activity (6,924) 834 Adjusted balance, beginning of period 11,269 16,599 Profits deferred 4,834 2,173 Interest accrual 423 444 Amortization (1,647) (1,424) Other adjustments (11) (25) Balance, end of period 14,868 17,767 Less: Reinsurance recoverable 1,435 1,710 Balance after reinsurance recoverable $ 13,433 $ 16,057 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Revenue(1) $ 3,325 $ (2,002) Interest accrual 423 444 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Balance, including amounts in AOCI, beginning of period, post-flooring $ 12,664,445 $ 11,660,527 Flooring impact and amounts in AOCI 1,269,237 (896,930) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 13,933,682 10,763,597 Effect of assumption update 22,910 2,197,592 Effect of actual variances from expected experience and other activity (12,611) (215,658) Adjusted balance, beginning of period 13,943,981 12,745,531 Assessments collected(1) 828,657 738,061 Interest accrual 360,309 318,069 Benefits paid (219,784) (131,667) Balance, excluding amounts in AOCI, end of period, pre-flooring 14,913,163 13,669,994 Flooring impact and amounts in AOCI (1,714,686) (1,576,731) Balance, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Less: Reinsurance recoverable 12,979,687 11,902,756 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 218,790 $ 190,507 (1) Represents the portion of gross assessments required to fund the future policy benefits. Nine Months Ended September 30, 2023 2022 ($ in thousands) Interest accrual $ 360,309 $ 318,069 Gross assessments $ 1,168,206 $ 1,020,763 Weighted-average duration of the liability in years (at original discount rate) 22 23 Weighted-average interest rate (at original discount rate) 3.36 % 3.38 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 6,939,033 $ 6,856,384 Deferred profit liability, end of period, post-flooring 14,868 17,767 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Subtotal of amounts disclosed above 20,152,378 18,967,414 Other Future policy benefits reserves(1) 1,104,756 1,036,278 Total Future policy benefits $ 21,257,134 $ 20,003,692 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated: Nine Months Ended September 30, 2023 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,351,460 $ 0 $ 32,677 $ 1,384,137 Deferred profit liability 0 0 3,325 3,325 Additional insurance reserves 0 1,168,206 0 1,168,206 Total $ 1,351,460 $ 1,168,206 $ 36,002 $ 2,555,668 Nine Months Ended September 30, 2022 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,379,044 $ 0 $ 25,058 $ 1,404,102 Deferred profit liability 0 0 (2,002) (2,002) Additional insurance reserves 0 1,020,763 0 1,020,763 Total $ 1,379,044 $ 1,020,763 $ 23,056 $ 2,422,863 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves. Nine Months Ended September 30, 2023 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 279,242 $ 0 $ 6,300 $ 285,542 Deferred profit liability 0 0 423 423 Additional insurance reserves 0 360,309 0 360,309 Total $ 279,242 $ 360,309 $ 6,723 $ 646,274 Nine Months Ended September 30, 2022 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 271,091 $ 0 $ 5,798 $ 276,889 Deferred profit liability 0 0 444 444 Additional insurance reserves 0 318,069 0 318,069 Total $ 271,091 $ 318,069 $ 6,242 $ 595,402 Policyholders' Account Balances The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,575,824 $ 16,432,032 $ 18,736,365 $ 38,744,221 Deposits 1,801,985 3,439,562 1,543,230 6,784,777 Interest credited 73,763 194,853 415,843 684,459 Policy charges (5,683) (16,564) (1,357,363) (1,379,610) Surrenders and withdrawals (161,929) (351,475) (579,913) (1,093,317) Benefit payments (37,459) (22,285) (62,055) (121,799) Net transfers (to) from separate account(1) 0 4,467 1,115,178 1,119,645 Change in market value and other adjustments(2) 81,544 1,095,144 76,107 1,252,795 Balance, end of period 5,328,045 20,775,734 19,887,392 45,991,171 Less: Reinsurance and other recoverables(3) 22,276 495,506 12,859,492 13,377,274 Policyholders' account balance net of reinsurance and other recoverables $ 5,305,769 $ 20,280,228 $ 7,027,900 $ 32,613,897 Unearned revenue reserve 3,568,084 Other 102,815 Total Policyholders' account balance $ 49,662,070 Weighted-average crediting rate 2.21 % 1.40 % 2.87 % 2.15 % Net amount at risk(4) $ 12 $ 0 $ 318,075,705 $ 318,075,717 Cash surrender value(5) $ 4,491,679 $ 17,981,713 $ 18,517,769 $ 40,991,161 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders' account balances gross liability. (4) The net amount at risk calculation includes both general and separate account balances. (5) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,005,867 $ 11,465,411 $ 18,762,548 $ 33,233,826 Deposits 352,985 3,742,495 1,624,685 5,720,165 Interest credited 38,232 120,516 435,694 594,442 Policy charges (3,393) (2,343) (1,343,735) (1,349,471) Surrenders and withdrawals (44,124) (182,878) (597,867) (824,869) Benefit payments (68,319) (28,907) (76,017) (173,243) Net transfers (to) from separate account 0 201,039 170,926 371,965 Change in market value and other adjustments(1) (97,166) 559,351 (278,141) 184,044 Balance, end of period 3,184,082 15,874,684 18,698,093 37,756,859 Less: Reinsurance and other recoverables(2) 4,664 328,079 12,970,107 13,302,850 Policyholders' account balance net of reinsurance and other recoverables $ 3,179,418 $ 15,546,605 $ 5,727,986 $ 24,454,009 Unearned revenue reserve 2,896,790 Other 98,896 Total Policyholders' account balance $ 40,752,545 Weighted-average crediting rate 1.65 % 1.18 % 3.10 % 2.23 % Net amount at risk(3) $ 235 $ 0 $ 300,033,962 $ 300,034,197 Cash surrender value(4) $ 2,617,105 $ 12,395,474 $ 17,084,598 $ 32,097,177 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (3) The net amount at risk calculation includes both general and separate account balances. (4) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: September 30, 2023 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 -50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 85 $ 188 $ 430 $ 20,481 $ 21,184 1.00% - 1.99% 497,237 74,579 237,130 82,040 890,986 2.00% - 2.99% 280,760 469,123 319,721 12,466 1,082,070 3.00% - 4.00% 31,048 0 0 0 31,048 Greater than 4.00% 0 0 0 0 0 Total $ 809,130 $ 543,890 $ 557,281 $ 114,987 $ 2,025,288 Variable Annuities Less than 1.00% $ 944,205 $ 821,295 $ 18,262 $ 2 $ 1,783,764 1.00% - 1.99% 221,831 2,113 1,086 0 225,030 2.00% - 2.99% 26,319 4,332 2,979 0 33,630 3.00% - 4.00% 956,761 3,416 0 0 960,177 Greater than 4.00% 2,027 0 0 0 2,027 Total $ 2,151,143 $ 831,156 $ 22,327 $ 2 $ 3,004,628 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 217,003 $ 217,003 1.00% - 1.99% 185,341 0 2,528,250 572,113 3,285,704 2.00% - 2.99% 27,536 1,418,150 2,778,586 268,998 4,493,270 3.00% - 4.00% 4,008,791 2,241,159 1,114,429 0 7,364,379 Greater than 4.00% 2,147,756 0 0 0 2,147,756 Total $ 6,369,424 $ 3,659,309 $ 6,421,265 $ 1,058,114 $ 17,508,112 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. September 30, 2022 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 520,312 66,011 127,370 48,257 761,950 2.00% - 2.99% 212,983 0 0 0 212,983 3.00% - 4.00% 40,381 0 0 0 40,381 Greater than 4.00% 0 0 0 0 0 Total $ 773,676 $ 66,011 $ 127,370 $ 48,257 $ 1,015,314 Variable Annuities Less than 1.00% $ 1,034,346 $ 869,636 $ 18,847 $ 2 $ 1,922,831 1.00% - 1.99% 247,033 2,223 339 0 249,595 2.00% - 2.99% 29,299 63 0 0 29,362 3.00% - 4.00% 1,110,933 0 0 0 1,110,933 Greater than 4.00% 2,167 0 0 0 2,167 Total $ 2,423,778 $ 871,922 $ 19,186 $ 2 $ 3,314,888 Variable Life / Universal Life Less than 1.00% $ 14,603 $ 0 $ 0 $ 0 $ 14,603 1.00% - 1.99% 323,385 0 733,182 2,014,152 3,070,719 2.00% - 2.99% 8,479 3,540 2,405,601 2,003,691 4,421,311 3.00% - 4.00% 4,559,965 11,551 2,316,936 139,908 7,028,360 Greater than 4.00% 2,085,177 0 0 0 2,085,177 Total $ 6,991,609 $ 15,091 $ 5,455,719 $ 4,157,751 $ 16,620,170 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. Unearned Revenue Reserve The balances of and changes in URR as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 3,067,336 $ 2,398,788 Unearned revenue 612,196 594,026 Amortization expense (111,353) (96,077) Other adjustments (95) 53 Balance, end of period 3,568,084 2,896,790 Less: Reinsurance recoverables 1,656,299 1,498,140 Unearned revenue reserve net of reinsurance recoverables $ 1,911,785 $ 1,398,650 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: Nine Months Ended September 30, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 4,550,625 $ (422,261) $ 4,128,364 Effect of cumulative changes in non-performance risk 1,727,910 0 1,727,910 Balance, beginning of period, before effect of changes in non-performance risk 6,278,535 (422,261) 5,856,274 Attributed fees collected 878,381 (179,211) 699,170 Claims paid (62,128) 5,903 (56,225) Interest accrual 235,979 (38,016) 197,963 Actual in force different from expected 52,753 (6,588) 46,165 Effect of changes in interest rates (2,869,989) 484,168 (2,385,821) Effect of changes in equity markets (940,654) 90,742 (849,912) Effect of assumption update 330,769 (54,067) 276,702 Issuances 21,271 8,206 29,477 Other adjustments(1) (17,436) (638,198) (655,634) Effect of changes in current period counterparty non-performance risk 0 (75,594) (75,594) Balance, end of period, before effect of changes in non-performance risk 3,907,481 (824,916) 3,082,565 Effect of cumulative changes in non-performance risk (1,230,621) 0 (1,230,621) Balance, end of period $ 2,676,860 $ (824,916) $ 1,851,944 Nine Months Ended September 30, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 8,884,362 $ (906,484) $ 7,977,878 Effect of cumulative changes in non-performance risk 287,605 0 287,605 Balance, beginning of period, before effect of changes in non-performance risk 9,171,967 (906,484) 8,265,483 Attributed fees collected 958,638 (113,016) 845,622 Claims paid (36,684) 1,567 (35,117) Interest accrual 71,646 (6,801) 64,845 Actual in force different from expected 77,474 (6,817) 70,657 Effect of changes in interest rates (6,853,674) 715,370 (6,138,304) Effect of changes in equity markets 3,966,792 (416,593) 3,550,199 Effect of assumption update (160,596) 23,170 (137,426) Effect of changes in current period counterparty non-performance risk 0 226,717 226,717 Balance, end of period, before effect of changes in non-performance risk 7,195,563 (482,887) 6,712,676 Effect of cumulative changes in non-performance risk (2,073,958) 0 (2,073,958) Balance, end of period $ 5,121,605 $ (482,887) $ 4,638,718 (1) Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information. In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to policyholder behavior assumptions on certain variable annuities. In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities. The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The following table presents accompanying information to the rollforward table above. September 30, 2023 September 30, 2022 Variable Annuities ($ in thousands) Net amount at risk(1) $ 12,504,440 $ 14,124,120 Weighted-average attained age of contractholders 70 69 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: September 30, 2023 September 30, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 2,519,234 $ 1,306,404 Market risk benefit liabilities 4,371,178 5,945,122 Net liability $ 1,851,944 $ 4,638,718 |
Market Risk Benefits
Market Risk Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Policyholders' Liabilities | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves In 2023, the Company recognized an immaterial impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees. In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves, primarily due to updates to mortality assumptions on individual term life insurance. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees. Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. Nine Months Ended September 30, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 10,911,794 $ 0 $ 10,911,794 Effect of cumulative changes in discount rate assumptions, beginning of period 554,896 0 554,896 Balance at original discount rate, beginning of period 11,466,690 0 11,466,690 Effect of assumption update (790) 0 (790) Effect of actual variances from expected experience and other activity (144,504) (1,257) (145,761) Adjusted balance, beginning of period 11,321,396 (1,257) 11,320,139 Issuances 512,379 28,889 541,268 Net premiums / considerations collected (1,008,159) (27,632) (1,035,791) Interest accrual 391,662 0 391,662 Balance at original discount rate, end of period 11,217,278 0 11,217,278 Effect of cumulative changes in discount rate assumptions, end of period (939,494) 0 (939,494) Balance, end of period $ 10,277,784 $ 0 $ 10,277,784 Nine Months Ended September 30, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 17,835,251 $ 204,727 $ 18,039,978 Effect of cumulative changes in discount rate assumptions, beginning of period 962,034 24,876 986,910 Balance at original discount rate, beginning of period 18,797,285 229,603 19,026,888 Effect of assumption update (1,044) 0 (1,044) Effect of actual variances from expected experience and other activity (191,864) 6,793 (185,071) Adjusted balance, beginning of period 18,604,377 236,396 18,840,773 Issuances 512,379 28,889 541,268 Interest accrual 670,905 6,300 677,205 Benefit payments (1,019,151) (25,504) (1,044,655) Other adjustments 2,845 (84) 2,761 Balance at original discount rate, end of period 18,771,355 245,997 19,017,352 Effect of cumulative changes in discount rate assumptions, end of period (1,767,981) (34,327) (1,802,308) Balance, end of period $ 17,003,374 $ 211,670 $ 17,215,044 Other, end of period 1,838 Total balance, end of period $ 17,216,882 Nine Months Ended September 30, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 6,725,590 $ 211,670 $ 6,937,260 Flooring impact, end of period 1,773 0 1,773 Balance, end of period, post-flooring 6,727,363 211,670 6,939,033 Less: Reinsurance recoverable 6,241,505 17,097 6,258,602 Balance after reinsurance recoverable, end of period, post-flooring $ 485,858 $ 194,573 $ 680,431 Nine Months Ended September 30, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 12,485,056 $ 0 $ 12,485,056 Effect of cumulative changes in discount rate assumptions, beginning of period (1,826,120) 0 (1,826,120) Balance at original discount rate, beginning of period 10,658,936 0 10,658,936 Effect of assumption update 1,295,294 0 1,295,294 Effect of actual variances from expected experience and other activity (86,611) (1,032) (87,643) Adjusted balance, beginning of period 11,867,619 (1,032) 11,866,587 Issuances 317,058 23,787 340,845 Net premiums / considerations collected (1,000,325) (22,755) (1,023,080) Interest accrual 392,917 0 392,917 Balance at original discount rate, end of period 11,577,269 0 11,577,269 Effect of cumulative changes in discount rate assumptions, end of period (751,597) 0 (751,597) Balance, end of period $ 10,825,672 $ 0 $ 10,825,672 Nine Months Ended September 30, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 20,937,097 $ 237,065 $ 21,174,162 Effect of cumulative changes in discount rate assumptions, beginning of period (3,607,275) (16,704) (3,623,979) Balance at original discount rate, beginning of period 17,329,822 220,361 17,550,183 Effect of assumption update 1,756,995 0 1,756,995 Effect of actual variances from expected experience and other activity (171,967) (1,489) (173,456) Adjusted balance, beginning of period 18,914,850 218,872 19,133,722 Issuances 317,058 23,787 340,845 Interest accrual 664,008 5,798 669,806 Benefit payments (1,046,082) (20,263) (1,066,345) Other adjustments 3,692 (285) 3,407 Balance at original discount rate, end of period 18,853,526 227,909 19,081,435 Effect of cumulative changes in discount rate assumptions, end of period (1,370,645) (28,806) (1,399,451) Balance, end of period $ 17,482,881 $ 199,103 $ 17,681,984 Other, end of period 2,186 Total balance, end of period $ 17,684,170 Nine Months Ended September 30, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, post-flooring $ 6,657,281 $ 199,103 $ 6,856,384 Less: Reinsurance recoverable 6,293,473 16,408 6,309,881 Balance after reinsurance recoverable, end of period, post-flooring $ 363,808 $ 182,695 $ 546,503 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: Nine Months Ended September 30, 2023 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 21,914,391 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,083,578 $ 0 Discounted expected future gross premiums (at current discount rate) $ 13,840,343 $ 0 Undiscounted expected future benefits and expenses $ 29,147,479 $ 328,212 Interest accrual $ 279,242 $ 6,300 Gross premiums $ 1,351,460 $ 32,677 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 9 6 Weighted-average interest rate (at original discount rate) 5.18 % 3.62 % Weighted-average interest rate (at current discount rate) 6.02 % 5.95 % Nine Months Ended September 30, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 22,344,548 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,403,622 $ 0 Discounted expected future gross premiums (at current discount rate) $ 14,404,899 $ 0 Undiscounted expected future benefits and expenses $ 29,477,887 $ 303,385 Interest accrual $ 271,091 $ 5,798 Gross premiums $ 1,379,044 $ 25,058 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.26 % 3.55 % Weighted-average interest rate (at current discount rate) 5.67 % 5.58 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first nine months of 2023, there was a $35 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $34 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. In the first nine months of 2022, there was a $99 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $97 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first nine months of 2022 is primarily due to unfavorable assumption updates related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 18,193 $ 15,765 Effect of actual variances from expected experience and other activity (6,924) 834 Adjusted balance, beginning of period 11,269 16,599 Profits deferred 4,834 2,173 Interest accrual 423 444 Amortization (1,647) (1,424) Other adjustments (11) (25) Balance, end of period 14,868 17,767 Less: Reinsurance recoverable 1,435 1,710 Balance after reinsurance recoverable $ 13,433 $ 16,057 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Revenue(1) $ 3,325 $ (2,002) Interest accrual 423 444 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Balance, including amounts in AOCI, beginning of period, post-flooring $ 12,664,445 $ 11,660,527 Flooring impact and amounts in AOCI 1,269,237 (896,930) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 13,933,682 10,763,597 Effect of assumption update 22,910 2,197,592 Effect of actual variances from expected experience and other activity (12,611) (215,658) Adjusted balance, beginning of period 13,943,981 12,745,531 Assessments collected(1) 828,657 738,061 Interest accrual 360,309 318,069 Benefits paid (219,784) (131,667) Balance, excluding amounts in AOCI, end of period, pre-flooring 14,913,163 13,669,994 Flooring impact and amounts in AOCI (1,714,686) (1,576,731) Balance, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Less: Reinsurance recoverable 12,979,687 11,902,756 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 218,790 $ 190,507 (1) Represents the portion of gross assessments required to fund the future policy benefits. Nine Months Ended September 30, 2023 2022 ($ in thousands) Interest accrual $ 360,309 $ 318,069 Gross assessments $ 1,168,206 $ 1,020,763 Weighted-average duration of the liability in years (at original discount rate) 22 23 Weighted-average interest rate (at original discount rate) 3.36 % 3.38 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 6,939,033 $ 6,856,384 Deferred profit liability, end of period, post-flooring 14,868 17,767 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Subtotal of amounts disclosed above 20,152,378 18,967,414 Other Future policy benefits reserves(1) 1,104,756 1,036,278 Total Future policy benefits $ 21,257,134 $ 20,003,692 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated: Nine Months Ended September 30, 2023 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,351,460 $ 0 $ 32,677 $ 1,384,137 Deferred profit liability 0 0 3,325 3,325 Additional insurance reserves 0 1,168,206 0 1,168,206 Total $ 1,351,460 $ 1,168,206 $ 36,002 $ 2,555,668 Nine Months Ended September 30, 2022 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,379,044 $ 0 $ 25,058 $ 1,404,102 Deferred profit liability 0 0 (2,002) (2,002) Additional insurance reserves 0 1,020,763 0 1,020,763 Total $ 1,379,044 $ 1,020,763 $ 23,056 $ 2,422,863 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves. Nine Months Ended September 30, 2023 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 279,242 $ 0 $ 6,300 $ 285,542 Deferred profit liability 0 0 423 423 Additional insurance reserves 0 360,309 0 360,309 Total $ 279,242 $ 360,309 $ 6,723 $ 646,274 Nine Months Ended September 30, 2022 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 271,091 $ 0 $ 5,798 $ 276,889 Deferred profit liability 0 0 444 444 Additional insurance reserves 0 318,069 0 318,069 Total $ 271,091 $ 318,069 $ 6,242 $ 595,402 Policyholders' Account Balances The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,575,824 $ 16,432,032 $ 18,736,365 $ 38,744,221 Deposits 1,801,985 3,439,562 1,543,230 6,784,777 Interest credited 73,763 194,853 415,843 684,459 Policy charges (5,683) (16,564) (1,357,363) (1,379,610) Surrenders and withdrawals (161,929) (351,475) (579,913) (1,093,317) Benefit payments (37,459) (22,285) (62,055) (121,799) Net transfers (to) from separate account(1) 0 4,467 1,115,178 1,119,645 Change in market value and other adjustments(2) 81,544 1,095,144 76,107 1,252,795 Balance, end of period 5,328,045 20,775,734 19,887,392 45,991,171 Less: Reinsurance and other recoverables(3) 22,276 495,506 12,859,492 13,377,274 Policyholders' account balance net of reinsurance and other recoverables $ 5,305,769 $ 20,280,228 $ 7,027,900 $ 32,613,897 Unearned revenue reserve 3,568,084 Other 102,815 Total Policyholders' account balance $ 49,662,070 Weighted-average crediting rate 2.21 % 1.40 % 2.87 % 2.15 % Net amount at risk(4) $ 12 $ 0 $ 318,075,705 $ 318,075,717 Cash surrender value(5) $ 4,491,679 $ 17,981,713 $ 18,517,769 $ 40,991,161 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders' account balances gross liability. (4) The net amount at risk calculation includes both general and separate account balances. (5) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,005,867 $ 11,465,411 $ 18,762,548 $ 33,233,826 Deposits 352,985 3,742,495 1,624,685 5,720,165 Interest credited 38,232 120,516 435,694 594,442 Policy charges (3,393) (2,343) (1,343,735) (1,349,471) Surrenders and withdrawals (44,124) (182,878) (597,867) (824,869) Benefit payments (68,319) (28,907) (76,017) (173,243) Net transfers (to) from separate account 0 201,039 170,926 371,965 Change in market value and other adjustments(1) (97,166) 559,351 (278,141) 184,044 Balance, end of period 3,184,082 15,874,684 18,698,093 37,756,859 Less: Reinsurance and other recoverables(2) 4,664 328,079 12,970,107 13,302,850 Policyholders' account balance net of reinsurance and other recoverables $ 3,179,418 $ 15,546,605 $ 5,727,986 $ 24,454,009 Unearned revenue reserve 2,896,790 Other 98,896 Total Policyholders' account balance $ 40,752,545 Weighted-average crediting rate 1.65 % 1.18 % 3.10 % 2.23 % Net amount at risk(3) $ 235 $ 0 $ 300,033,962 $ 300,034,197 Cash surrender value(4) $ 2,617,105 $ 12,395,474 $ 17,084,598 $ 32,097,177 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (3) The net amount at risk calculation includes both general and separate account balances. (4) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: September 30, 2023 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 -50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 85 $ 188 $ 430 $ 20,481 $ 21,184 1.00% - 1.99% 497,237 74,579 237,130 82,040 890,986 2.00% - 2.99% 280,760 469,123 319,721 12,466 1,082,070 3.00% - 4.00% 31,048 0 0 0 31,048 Greater than 4.00% 0 0 0 0 0 Total $ 809,130 $ 543,890 $ 557,281 $ 114,987 $ 2,025,288 Variable Annuities Less than 1.00% $ 944,205 $ 821,295 $ 18,262 $ 2 $ 1,783,764 1.00% - 1.99% 221,831 2,113 1,086 0 225,030 2.00% - 2.99% 26,319 4,332 2,979 0 33,630 3.00% - 4.00% 956,761 3,416 0 0 960,177 Greater than 4.00% 2,027 0 0 0 2,027 Total $ 2,151,143 $ 831,156 $ 22,327 $ 2 $ 3,004,628 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 217,003 $ 217,003 1.00% - 1.99% 185,341 0 2,528,250 572,113 3,285,704 2.00% - 2.99% 27,536 1,418,150 2,778,586 268,998 4,493,270 3.00% - 4.00% 4,008,791 2,241,159 1,114,429 0 7,364,379 Greater than 4.00% 2,147,756 0 0 0 2,147,756 Total $ 6,369,424 $ 3,659,309 $ 6,421,265 $ 1,058,114 $ 17,508,112 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. September 30, 2022 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 520,312 66,011 127,370 48,257 761,950 2.00% - 2.99% 212,983 0 0 0 212,983 3.00% - 4.00% 40,381 0 0 0 40,381 Greater than 4.00% 0 0 0 0 0 Total $ 773,676 $ 66,011 $ 127,370 $ 48,257 $ 1,015,314 Variable Annuities Less than 1.00% $ 1,034,346 $ 869,636 $ 18,847 $ 2 $ 1,922,831 1.00% - 1.99% 247,033 2,223 339 0 249,595 2.00% - 2.99% 29,299 63 0 0 29,362 3.00% - 4.00% 1,110,933 0 0 0 1,110,933 Greater than 4.00% 2,167 0 0 0 2,167 Total $ 2,423,778 $ 871,922 $ 19,186 $ 2 $ 3,314,888 Variable Life / Universal Life Less than 1.00% $ 14,603 $ 0 $ 0 $ 0 $ 14,603 1.00% - 1.99% 323,385 0 733,182 2,014,152 3,070,719 2.00% - 2.99% 8,479 3,540 2,405,601 2,003,691 4,421,311 3.00% - 4.00% 4,559,965 11,551 2,316,936 139,908 7,028,360 Greater than 4.00% 2,085,177 0 0 0 2,085,177 Total $ 6,991,609 $ 15,091 $ 5,455,719 $ 4,157,751 $ 16,620,170 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. Unearned Revenue Reserve The balances of and changes in URR as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 3,067,336 $ 2,398,788 Unearned revenue 612,196 594,026 Amortization expense (111,353) (96,077) Other adjustments (95) 53 Balance, end of period 3,568,084 2,896,790 Less: Reinsurance recoverables 1,656,299 1,498,140 Unearned revenue reserve net of reinsurance recoverables $ 1,911,785 $ 1,398,650 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: Nine Months Ended September 30, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 4,550,625 $ (422,261) $ 4,128,364 Effect of cumulative changes in non-performance risk 1,727,910 0 1,727,910 Balance, beginning of period, before effect of changes in non-performance risk 6,278,535 (422,261) 5,856,274 Attributed fees collected 878,381 (179,211) 699,170 Claims paid (62,128) 5,903 (56,225) Interest accrual 235,979 (38,016) 197,963 Actual in force different from expected 52,753 (6,588) 46,165 Effect of changes in interest rates (2,869,989) 484,168 (2,385,821) Effect of changes in equity markets (940,654) 90,742 (849,912) Effect of assumption update 330,769 (54,067) 276,702 Issuances 21,271 8,206 29,477 Other adjustments(1) (17,436) (638,198) (655,634) Effect of changes in current period counterparty non-performance risk 0 (75,594) (75,594) Balance, end of period, before effect of changes in non-performance risk 3,907,481 (824,916) 3,082,565 Effect of cumulative changes in non-performance risk (1,230,621) 0 (1,230,621) Balance, end of period $ 2,676,860 $ (824,916) $ 1,851,944 Nine Months Ended September 30, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 8,884,362 $ (906,484) $ 7,977,878 Effect of cumulative changes in non-performance risk 287,605 0 287,605 Balance, beginning of period, before effect of changes in non-performance risk 9,171,967 (906,484) 8,265,483 Attributed fees collected 958,638 (113,016) 845,622 Claims paid (36,684) 1,567 (35,117) Interest accrual 71,646 (6,801) 64,845 Actual in force different from expected 77,474 (6,817) 70,657 Effect of changes in interest rates (6,853,674) 715,370 (6,138,304) Effect of changes in equity markets 3,966,792 (416,593) 3,550,199 Effect of assumption update (160,596) 23,170 (137,426) Effect of changes in current period counterparty non-performance risk 0 226,717 226,717 Balance, end of period, before effect of changes in non-performance risk 7,195,563 (482,887) 6,712,676 Effect of cumulative changes in non-performance risk (2,073,958) 0 (2,073,958) Balance, end of period $ 5,121,605 $ (482,887) $ 4,638,718 (1) Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information. In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to policyholder behavior assumptions on certain variable annuities. In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities. The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The following table presents accompanying information to the rollforward table above. September 30, 2023 September 30, 2022 Variable Annuities ($ in thousands) Net amount at risk(1) $ 12,504,440 $ 14,124,120 Weighted-average attained age of contractholders 70 69 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: September 30, 2023 September 30, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 2,519,234 $ 1,306,404 Market risk benefit liabilities 4,371,178 5,945,122 Net liability $ 1,851,944 $ 4,638,718 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
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 Re, and PALAC, a former subsidiary of Prudential Financial that was sold to Fortitude on April 1, 2022, which is discussed 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 YRT 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. "Change in value of market risk benefits, net of related hedging gain (loss)" include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities within the PLNJ business to Prudential Insurance. These reinsurance agreements are market risk benefits and have been accounted for in the same manner. See Note 4 for additional information related to the accounting for market risk benefits. Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 (in thousands) Reinsurance recoverables(1) $ 36,860,011 $ 37,096,562 Policy loans (1,073,903) (1,011,112) Deferred policy acquisition costs(1) (3,236,759) (3,343,270) Deferred sales inducements(1) (36,080) (38,146) Market risk benefit assets(1) 1,108,690 543,177 Other assets(1) 1,851,596 1,146,794 Policyholders’ account balances(1) 6,026,901 7,157,639 Future policy benefits(1) 6,672,884 6,320,863 Market risk benefit liabilities(1) 286,622 120,916 Other liabilities(1) 4,039,544 2,891,433 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Unaffiliated reinsurance amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Financial Position were as follows: September 30, 2023 December 31, 2022 (in thousands) Deferred policy acquisition costs(1) $ 74,341 $ 111,379 Market risk benefit assets(1) 757,038 64,738 Other assets 1,745,370 1,034,000 Policyholders’ account balances(1) 1,823,542 2,771,961 Future policy benefits 159 0 Market risk benefit liabilities(1) 149,460 40,731 Other liabilities 1,793,934 820,185 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. The deposit assets on reinsurance totaled $1,601 million and $828 million at September 30, 2023 and December 31, 2022, respectively. The funds withheld liabilities totaled $1,398 million and $705 million at September 30, 2023 and December 31, 2022, respectively. Reinsurance recoverables by counterparty are broken out below: September 30, 2023 December 31, 2022(1) (in thousands) PAR U $ 15,272,691 $ 15,051,337 PURC 7,169,637 6,928,950 PARCC 2,237,002 2,437,589 GUL Re 3,096,035 3,124,697 PAR Term 1,902,278 2,040,599 Prudential Insurance 1,112,606 986,013 Term Re 1,829,064 1,830,197 Lotus Re 2,034,218 1,952,215 DART 604,117 578,462 Unaffiliated 1,602,363 2,166,503 Total reinsurance recoverables $ 36,860,011 $ 37,096,562 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Premiums: Direct(1) $ 457,967 $ 462,478 $ 1,396,506 $ 1,406,822 Assumed 32 (2,653) (90) (10,730) Ceded(1) (372,859) (398,109) (1,144,655) (1,210,547) Net premiums(1) 85,140 61,716 251,761 185,545 Policy charges and fee income: Direct(1) 753,291 746,814 2,238,266 2,295,350 Assumed(1) 151,927 149,564 453,006 455,114 Ceded(1) (558,737) (526,432) (1,594,764) (1,892,583) Net policy charges and fee income(1) 346,481 369,946 1,096,508 857,881 Net investment income: Direct 463,070 226,827 1,216,154 617,818 Assumed 338 349 1,024 1,167 Ceded (2,544) (16,414) (13,789) (36,795) Net investment income 460,864 210,762 1,203,389 582,190 Asset administration fees: Direct 81,422 84,959 242,730 271,071 Assumed 0 0 0 0 Ceded (24,668) (16,405) (64,986) (51,495) Net asset administration fees 56,754 68,554 177,744 219,576 Other income (loss): Direct (89,144) (181,634) 216,247 (855,885) Assumed 116 3,059 (233) 550 Ceded(1) 25,473 17,168 70,736 60,206 Net Other income (loss)(1) (63,555) (161,407) 286,750 (795,129) Realized investment gains (losses), net: Direct(1) (492,184) (44,847) (826,822) 1,080,351 Assumed(1) (31,544) 122,364 189,400 (363,266) Ceded(1) 55,472 19,754 56,181 93,686 Realized investment gains (losses), net(1) (468,256) 97,271 (581,241) 810,771 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) (54,544) 29,320 152,660 (698,317) Assumed(1) 283 0 (3,160) 0 Ceded(1) (193,210) (109,398) (415,656) (537,098) Net change in value of market risk benefits, net of related hedging gain (loss)(1) (247,471) (80,078) (266,156) (1,235,415) Policyholders’ benefits (including change in reserves): Direct(1) 912,588 880,240 2,639,868 2,460,564 Assumed(1) 336,300 289,093 985,635 868,301 Ceded(1) (1,103,479) (1,081,648) (3,227,951) (2,961,322) Net policyholders’ benefits (including change in reserves)(1) 145,409 87,685 397,552 367,543 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in estimates of liability for future policy benefits: Direct(1) (44,155) (69,944) (61,510) 1,748,781 Assumed(1) (17,580) (12,640) 8,071 676,754 Ceded(1) 68,300 79,649 54,469 (2,382,670) Net change in estimates of liability for future policy benefits(1) 6,565 (2,935) 1,030 42,865 Interest credited to policyholders’ account balances: Direct(1) 228,399 259,175 666,947 593,160 Assumed 33,602 (52,300) 100,065 49,803 Ceded(1) (98,927) (109,226) (299,900) (324,377) Net interest credited to policyholders’ account balances(1) 163,074 97,649 467,112 318,586 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) (57,368) 146,690 (280,393) (71,962) (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Unaffiliated reinsurance assumed and ceded amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022(1) 2023 2022(1) (in thousands) Premiums: Assumed(2) $ 32 $ (2,653) $ (100) $ (16,061) Ceded(2) (13,942) (10,036) (47,319) (32,606) Policy charges and fee income: Assumed 460 1,929 1,383 13,350 Ceded (39,143) (21,196) (101,419) (59,453) Net investment income: Ceded 10,109 (4,122) 23,022 195 Asset administration fees: Ceded (7,464) 0 (15,204) 0 Other income (loss): Assumed 185 3,059 (53) 549 Ceded 7,887 1,622 17,540 1,622 Realized investment gains (losses), net: Assumed (31,544) 122,365 189,400 (159,280) Ceded(2) 41,007 19,601 40,378 92,377 Change in value of market risk benefits, net of related hedging gain (loss): Assumed(2) 283 0 (3,160) 0 Ceded(2) (70,693) (20,174) (150,791) (106,676) Policyholders’ benefits (including change in reserves): Assumed 265 587 545 1,941 Ceded(2) (42,655) (18,206) (106,475) (61,248) Change in estimates of liability for future policy benefits: Ceded (1,407) 0 (1,823) (6,594) Interest credited to policyholders’ account balances: Assumed 3,651 (83,932) 8,750 (86,713) Ceded 85 0 0 0 (1) Prior period has been reclassified to conform to the current period presentation. (2) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. The gross and net amounts of life insurance face amount in force as of September 30, 2023 and 2022 were as follows: 2023 2022 (in thousands) Direct gross life insurance face amount in force $ 1,115,174,542 $ 1,089,504,288 Assumed gross life insurance face amount in force 35,824,627 36,865,826 Reinsurance ceded (1,010,577,960) (1,010,441,444) Net life insurance face amount in force $ 140,421,209 $ 115,928,670 Significant Affiliated Reinsurance Agreements 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 excluded 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 did not impact PLNJ, which continued to reinsure its 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 were being managed within the Company. 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. 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 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. Effective February 1, 2023, PLNJ began selling indexed variable annuities products, which is reinsured to Prudential Insurance through the existing reinsurance agreement. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts to Prudential Insurance. As a result of the agreement, reinsurance payables includes the ceded modified coinsurance arrangement, which reflects the value of the invested assets retained by the Company and the associated asset returns. Lotus Re Effective October 1, 2021, the Company entered into an automatic coinsurance agreement with Lotus Re to reinsure $32 million 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 $1,387 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 $1,352 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. Significant Third-Party Reinsurance Arrangements The Ohio National Life Insurance Company Effective April 1, 2023, the Company entered into an agreement with Ohio National, an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. This block represents approximately 10% of the Company’s remaining legacy in force traditional variable annuity block by account value. The Company ceded 100% of separate account liabilities under modified coinsurance and 100% of general account liabilities under coinsurance of its PDI traditional variable annuity contracts. The general account liabilities associated with PDI's guaranteed living and death benefits and the corresponding reinsurance of those liabilities are accounted for as market risk benefits. As a result of the transaction, the Company recognized a $277 million deferred reinsurance gain that will be amortized into income over the estimated remaining life of the reinsured policies. FLIAC Effective December 1, 2021, the Company entered into a reinsurance agreement with FLIAC under which the Company assumed all of its indexed variable annuities under modified coinsurance. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts to the Company. As a result of the agreement, "Reinsurance recoverables" includes the assumed modified coinsurance receivable, which reflects the value of the invested assets retained by FLIAC and the associated asset returns. The Company also assumed via coinsurance 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 under this agreement. As of September 30, 2023, the total account value of contracts novated from FLIAC to the Company were $5.3 billion for indexed variable annuities contracts and $2.0 billion for fixed annuities and fixed indexed annuities contracts, which is approximately 80% 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 September 30, 2023, $2.3 billion of HDI v.3.0 account values are reinsured to Union Hamilton. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
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 benefit of $(8.3) million, or (18.34)% of income (loss) from operations before income taxes and equity in earnings of operating joint venture, in the first nine months of 2023, compared to $(350.2) million, or 27.28%, in the first nine months of 2022. 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. Inflation Reduction Act. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”). One of the most significant provisions of the Inflation Reduction Act is a 15% alternative minimum tax based on the Company’s GAAP income, with certain adjustments. This provision which is applicable only to companies with average applicable financial statement income over $1 billion for any three-year period ending in 2022 or later, is effective in taxable years beginning after December 31, 2022. The impact of the book-income alternative minimum tax, if any, will vary from year to year based on the relationship of the Company’s GAAP income to the Company’s taxable income. Any tax paid pursuant to this provision is available as a tax credit in future years when the Company’s tax rate exceeds the 15% minimum tax threshold. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2023 and 2022, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2022 $ (20,007) $ (1,474,475) $ 119,368 $ 1,365,049 $ (10,065) Change in OCI before reclassifications 431 (482,272) 73,321 (497,289) (905,809) Amounts reclassified from AOCI 0 (17,746) 0 0 (17,746) Income tax benefit (expense) (51) 105,037 (15,396) 104,431 194,021 Balance, September 30, 2023 $ (19,627) $ (1,869,456) $ 177,293 $ 972,191 $ (739,599) Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2021 $ (11,274) $ 306,331 $ (125,809) $ 227,206 $ 396,454 Change in OCI before reclassifications (11,519) (2,552,163) 346,865 1,786,353 (430,464) Amounts reclassified from AOCI 0 (55,886) 0 0 (55,886) Income tax benefit (expense) 1,357 547,513 (72,842) (375,135) 100,893 Balance, September 30, 2022 $ (21,436) $ (1,754,205) $ 148,214 $ 1,638,424 $ 10,997 (1) Includes cash flow hedges of $94 million and $40 million as of September 30, 2023 and December 31, 2022, respectively, and $228 million and $40 million as of September 30, 2022 and December 31, 2021, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 29,156 $ 68,800 $ 34,900 $ 125,212 Net unrealized investment gains (losses) on available-for-sale securities (8,931) (5,888) (17,154) (69,326) Total net unrealized investment gains (losses)(4) 20,225 62,912 17,746 55,886 Total reclassifications for the period $ 20,225 $ 62,912 $ 17,746 $ 55,886 (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 (loss)” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on Which an Allowance for Credit Losses has been Recognized Net Unrealized Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2022 $ 4,371 $ (2,161,026) $ (1,198,422) $ 1,488,679 $ 391,923 $ (1,474,475) Net investment gains (losses) on investments arising during the period (5,723) (618,777) 0 0 131,182 (493,318) Reclassification adjustment for (gains) losses included in net income (269) (17,477) 0 0 3,731 (14,015) Reclassification due to allowance for credit losses recorded during the period 2,363 (2,363) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (432,798) 575,026 (29,876) 112,352 Balance, September 30, 2023 $ 742 $ (2,799,643) $ (1,631,220) $ 2,063,705 $ 496,960 $ (1,869,456) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations The majority of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.2 million and $0.3 million for the three months ended September 30, 2023 and 2022, respectively, and $0.7 million and $0.8 million for the nine months ended September 30, 2023 and 2022, respectively. The expense charged to the Company for the deferred compensation program was $1.0 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively, and $4.4 million and $3.9 million for the nine months ended September 30, 2023 and 2022, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $3 million and $4 million for the three months ended September 30, 2023 and 2022, respectively, and $10 million and $14 million for the nine months ended September 30, 2023 and 2022, respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $4 million for both the three months ended September 30, 2023 and 2022, and $11 million for both the nine months ended September 30, 2023 and 2022. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of t he voluntary savings plan was $2 million and $3 million for the three months ended September 30, 2023 and 2022, respectively, and $6 million and $7 million for the nine months ended September 30, 2023 and 2022, respectively. The Company is charged distribution expenses from Prudential’s proprietary nationwide sales organization, “Prudential Advisors” through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. Prudential Advisors distributes Prudential life insurance, annuities, and investment products with proprietary and non-proprietary product options. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $153 million and $139 million for the three months ended September 30, 2023 and 2022, respectively, and $440 million and $471 million for the nine months ended September 30, 2023 and 2022, respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $31 million and $24 million for the three months ended September 30, 2023 and 2022, respectively, and $104 million and $58 million for the nine months ended September 30, 2023 and 2022, respectively. Corporate-Owned Life Insurance The Company has sold five Corporate-Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $3,857 million and $4,512 million at September 30, 2023 and December 31, 2022, respectively. Fees related to these COLI policies were $13 million for both the three months ended September 30, 2023 and 2022, and $38 million and $40 million for the nine months ended September 30, 2023 and 2022, respectively. The Company reinsures the risk associated with these COLI policies to an affiliate reinsurer as part of a broader program related to variable insurance policies. In May 2023, the Company funded a policy loan from the Prudential Financial COLI policy noted above in an amount of $900 million to an affiliated irrevocable trust, commonly referred to as a “rabbi trust”, which Prudential Financial created to support certain non-qualified retirement plans. The outstanding balance of the policy loan with the rabbi trust was $898 million as of September 30, 2023. Interest income related to the policy loan was $10 million and $15 million for the three months and nine months ended September 30, 2023, respectively . Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $14 million and $11 million for the three months ended September 30, 2023 and 2022, respectively, and $39 million and $29 million for the nine months ended September 30, 2023 and 2022, respectively. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. The interest income to the Company from PGF related to affiliated cash collateral was $132 million for the three months ended September 30, 2023, and $363 million for the nine months ended September 30, 2023. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $710 million and $606 million of investments in joint ventures as of September 30, 2023 and December 31, 2022, r espectively. "Net investment income" related to these ventures includes gains(losses) of $6 million and $2 million for the three months ended September 30, 2023 and 2022, respectively, and $2 million and $21 million for the nine months ended September 30, 2023 and 2022, respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $69 million and $74 million f or the three months ended September 30, 2023 and 2022, respectively, and $208 million and $237 million for the nine months ended September 30, 2023 and 2022, 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 p olicyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $10 million and $9 million for the three months ended September 30, 2023 and 2022, respectively, and $28 million for both the nine months ended September 30, 2023 and 2022. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Com prehensive Income (Loss). Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at September 30, 2023 and December 31, 2022 were as follows: Maturity Dates Interest Rates September 30, 2023 December 31, 2022 (in thousands) U.S. dollar fixed rate notes 2025 - 2027 0.00% - 14.85 % $ 144,698 $ 148,076 Total notes receivable - affiliated(1) $ 144,698 $ 148,076 (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. Ac crued interest receivable related to these loans was $0.3 million and $1.0 million at September 30, 2023 and December 31, 2022, respectively, and is included in “Other assets”. Revenues related to these loans were $0 million and $1 million for the three months ended September 30, 2023 and 2022, respectively, and $2 million and $3 million for the nine months ended September 30, 2023 and 2022, respectively, and are included in “Other income (loss)”. Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2023 and December 31, 2022 were as follows: Maturity Date Interest Rate September 30, 2023 December 31, 2022 (in thousands) Affiliated Commercial Mortgage Loan 2025 9.83 % $ 71,335 $ 72,225 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 loan on an on-going basis. Accrued interest receivable related to the loan was $0.5 million for both the September 30, 2023 and December 31, 2022, and is included in "Accrued investment income". Revenues were $2 million and $1 million for the three months ended September 30, 2023 and 2022, respectively, and $5 million and $3 million for the nine months ended September 30, 2023 and 2022, respectively, and are included in "Net investment income". Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the nine months ended September 30, 2023 and for the year ended December 31, 2022. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 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 Prudential Insurance July 2022 Transfer In Fixed Maturities $ 6,319 $ 7,230 $ 719 $ 0 PAR U July 2022 Purchase Fixed Maturities $ 16,284 $ 16,284 $ 0 $ 0 Prudential Insurance August 2022 Purchase Fixed Maturities $ 155,823 $ 139,712 $ (12,728) $ 0 Vantage Casualty Insurance Co September 2022 Purchase Fixed Maturities $ 3,497 $ 3,497 $ 0 $ 0 WH Warehouse Ltd October 2022 Sale Fixed Maturities $ 26,536 $ 26,388 $ 0 $ 148 PAR U November 2022 Purchase Fixed Maturities $ 91,051 $ 91,051 $ 0 $ 0 Prudential Insurance December 2022 Purchase Fixed Maturities $ 67,477 $ 71,369 $ 3,075 $ 0 Prudential Insurance January 2023 Purchase Fixed Maturities $ 48,329 $ 50,372 $ 1,614 $ 0 Prudential Insurance March 2023 Purchase Fixed Maturities $ 7,175 $ 7,500 $ 256 $ 0 PURC April 2023 Purchase Fixed Maturities $ 102,804 $ 102,804 $ 0 $ 0 Term Re June 2023 Purchase Fixed Maturities $ 115,573 $ 115,573 $ 0 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 4,298 $ 4,443 $ 114 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 4,394 $ 4,494 $ 80 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 19,453 $ 19,203 $ (198) $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 14,452 $ 15,086 $ 502 $ 0 Prudential Insurance September 2023 Purchase Fixed Maturities $ 15,880 $ 15,801 $ (62) $ 0 Debt Agreements The Company is authorized to borrow funds up to $7 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short-term and long-term debt to affiliates as of September 30, 2023 and December 31, 2022: Affiliate Date Amount of Notes - September 30, 2023 Amount of Notes - December 31, 2022 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 94,318 $ 96,666 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 28,295 29,000 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 95,634 97,665 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 38,253 39,066 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 47,817 48,832 3.95 % 6/20/2024 Prudential Funding LLC 12/28/2022 0 138 4.73 % 1/31/2023 Prudential Funding LLC 12/29/2022 0 62 4.73 % 1/31/2023 Prudential Funding LLC 12/30/2022 0 384 4.73 % 1/31/2023 Total Loans Payable to Affiliates $ 304,317 $ 311,813 The total interes t expense to the Company related to affiliated loans and cash collateral with PGF was $5 million and $(32) million for the three months ended September 30, 2023 and 2022, respectively, and $10 million and $(37) million for the nine months ended September 30, 2023 and 2022, respectively. Contributed Capital and Dividends In February 2023, the Company received a capital contribution in the amount of $405 million from Prudential Insurance. In March, June and September 2022, the Company received capital contributions in the amount of $8 million, $3 million and $7 million, respectively, from Prudential Insurance. In June and September 2023, there was $300 million and $650 million return of capital, respectively, to Prudential Insurance. Through September 2023 and December 2022, the Company did not pay any dividends to Prudential Insurance. Reinsurance with Affiliates As discussed in Note 11, the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of September 30, 2023 and December 31, 2022, the outstanding balances on these commitments were $506 million and $333 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 and $0.1 million as of September 30, 2023 and December 31, 2022, respectively. There were $0.1 million and $0.0 million changes in allowance for the three months ended September 30, 2023 and 2022, respectively, and $0.0 million for both the nine months ended September 30, 2023 and 2022. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of September 30, 2023 and December 31, 2022, $1,279 million and $582 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for either the three or nine months ended September 30, 2023 or 2022. 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. 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 $32 million and $33 million as of September 30, 2023 and December 31, 2022, respectively, which represents the fair value of the guarantee and is amortized in revenue over a period which approximates the life of the underlying insurance in force. Since this obligation is not subject to limitations, it is not possible to determine the maximum potential amount due under this guarantee. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of September 30, 2023, 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 16 to the Company's Consolidated Financial Statements included in the Company's restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023, and should be read in conjunction with the complete descriptions provided therein. Individual Annuities and Individual Life Moreland, Socorro v. PICA, et al. In September 2023, the court issued an Order denying plaintiff’s class certification motion. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On January 1, 2023, the Company adopted ASU 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for all periods presented in the Unaudited Interim Consolidated Financial Statements. 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, 2022, and the Company's restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. |
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. Out of Period Adjustments During the three months ended September 30, 2022, the Company recorded out of period adjustments resulting in an aggregate net charge of $73 million to “Income (loss) from operations before income taxes and equity in earnings of operating joint venture”. The adjustments primarily relate to the valuation of the embedded derivative associated with the variable indexed annuities reinsurance recoverable that should have been recorded in the second quarter of 2022 to “Realized investment gains (losses), net”. The aggregate impact of out of period adjustments recorded in the first nine months of 2022 was a net charge of $72 million to “Income (loss) from operations before income taxes and equity in earnings of operating joint ventures”. These adjustments relate to reserves for certain universal and variable life products and certain portions of variable life and annuities reinsurance activity. 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. |
New accounting pronouncements including the Adoption of ASU 2018-12 | Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Consolidated Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $271 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to an increase to "Total equity" of $673 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU and (2) updated accounting policies for all of the periods presented in the Unaudited Interim Consolidated Financial Statements. (1) Key Accounting Policy Changes Area of Change 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-payment 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. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, 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, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Area of Change Description Method of adoption Effect on the financial statements or other significant matters Amortization of deferred acquisition costs and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Consolidated Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. 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. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. Other ASUs adopted during the nine months ended September 30, 2023 The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure , effective January 1, 2023, on a prospective basis. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (“TDR”) for creditors and adds enhanced disclosure requirements. Following adoption of the ASU, all loan refinancings and restructurings are subject to the modification guidance in ASC 310-20. Specific to the accounting policy for commercial mortgage and other loans, adoption of the ASU resulted in the elimination of TDRs such that, on a prospective basis, all modifications are evaluated under the existing modification guidance in ASC 310-20 to determine whether a modification results in a new financial instrument or a continuation of the existing financial instrument. Furthermore, for modifications of loans that have a CECL allowance and result in a continuation of the existing loan, the CECL allowance of the loan is remeasured using the modified terms and the post-modification effective yield. Prior to the adoption of the ASU, if a loan modification was a TDR, the CECL allowance of the loan was remeasured using the modified terms and the loan’s original effective yield. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Deferred policy acquisition costs ("DAC") | Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”. Upon the adoption of ASU 2018-12, the carrying amount of DAC for long-duration contracts is no longer subject to recoverability testing. DAC for most long-duration contracts is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see "Annual Assumptions Review" below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits 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 are also generally assumed to be lower for the period where surrender charges apply. |
Reinsurance recoverables | Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Consolidated Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term ("YRT") arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under YRT arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contractholders to the Company. As YRT arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. |
Market risk benefits (assets and liabilities) | Market risk benefit assets represents MRBs in an asset position and are presented separately from MRBs in a liability position. See “ Market risk benefit liabilities ” below. MRB assets also reflect ceded MRBs resulting from reinsurance of the Company's Prudential Defined Income ("PDI") traditional variable annuity contracts. See Note 11 for additional information regarding the reinsurance of PDI. Market risk benefit liabilities represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 5. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s NPR which is recorded in OCI. See Note 10 for additional information regarding market risk benefits. Consistent with direct contracts, reinsurance agreements may also include features that meet the definition of an MRB and, if so, are accounted for at fair value. The fair value of direct or assumed MRBs reflects the Company's NPR, while the fair value of ceded MRBs reflects the counterparty credit risk of the reinsurer. Changes in the fair value of ceded MRBs, including the impact of changes in counterparty credit risk, are recorded in net income in "Change in value of market risk benefits, net of related hedging gain (loss)". |
Other assets and Other liabilities | Other assets consists primarily of deposit assets related to a reinsurance agreement entered into with a third-party reinsurer during 2021 using deposit accounting under U.S. GAAP, see Note 11 for additional information. Included in these deposit assets are amounts representing fair value of embedded derivative instruments associated with the index-linked features of certain annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Also included are premiums due, deferred loss on reinsurance which is amortized over the expected life of the reinsured contracts on a constant-level basis, receivables resulting from sales of securities that had not yet settled at the balance sheet date, prepaid tax expenses, and the Company’s investments in operating joint ventures. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. Other liabilities consists primarily of reinsurance payables associated with reinsurance arrangements that correspond to reinsurance receivables included above in “Reinsurance recoverables”. Also included is a funds withheld liability for assets retained under a reinsurance agreement that corresponds to the deposit assets above in "Other assets". For additional information about these arrangements see Note 11. Additionally other liabilities includes accrued expenses, technical overdrafts, payables resulting from purchases of securities that had not yet settled at the balance sheet date and deferred gain on reinsurance. The amortization method for deferred gain on reinsurance is amortized over the expected life of the reinsured contracts on a constant-level basis. Other liabilities may also include derivative instruments for which fair values are determined as described below under "Derivative Financial Instruments". |
Deferred Sales Inducements | Deferred Sales Inducements are amounts that are credited to a policyholders’ account balance primarily as an inducement to purchase fixed and/or variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology, factors and assumptions used to amortize DAC. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” Unlike DAC, DSI are considered contractual cash flows and, as a result, are subject to periodic recoverability testing. See Note 6 for additional information regarding DSI. |
Separate account assets and liabilities and Policyholders’ account balances | Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. 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. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 9 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked feature of certain universal life and annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Separate account liabilities primarily represents the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “Separate account assets ” above. |
Future policy benefits | Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of such payments depend on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. In addition, for limited-payment contracts, the liability for future policy benefits also includes a Deferred Profit Liability representing gross premiums received in excess of net premiums and is generally recognized in revenue in a constant relationship with insurance in force for life contracts or with the amount of expected future benefit payments for annuity contracts. The DPL is subject to a retrospective unlocking adjustment consistent with the liability for future policy benefits discussed above. The DPL cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”). For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio and DPL as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance and any DSI asset), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. To date, the Company has not recorded a PFL liability on any such contracts. |
Insurance Revenue And Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future policy benefits and non-level claim settlement expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized as described in "Future policy benefits" above. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized as described in "Future policy benefits" above. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are generally accounted for as market risk benefits (see “Market risk benefits” above). Amounts received from policyholders as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts using the same methodology, factors, and assumption used to amortize DAC as described above. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI. Policyholders’ account balances also includes amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products where changes in the value of the embedded derivatives are recorded through "Realized investment gains (losses), net". For additional information regarding the valuation of these embedded derivatives, see Note 5. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 102,251 $ 3,736,454 $ 648,837 $ 2,442,883 $ 6,930,425 Capitalization 77,409 180,239 114,860 412,902 785,410 Amortization expense (15,270) (245,590) (47,256) (90,768) (398,884) Other(1) 0 (393,385) 0 (12) (393,397) Balance, end of period $ 164,390 $ 3,277,718 $ 716,441 $ 2,765,005 $ 6,923,554 (1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 84,479 $ 3,806,733 $ 577,084 $ 2,561,011 $ 7,029,307 Capitalization 14,235 213,698 97,395 395,907 721,235 Amortization expense (10,059) (255,420) (40,383) (78,522) (384,384) Other(1) 0 0 (322) (541,429) (541,751) Balance, end of period $ 88,655 $ 3,765,011 $ 633,774 $ 2,336,967 $ 6,824,407 (1) Other includes the impact of the reinsurance agreement with Lotus Re. |
Liability for Future Policy Benefit (DRL, DRG, Benefit Reserves, DPL, and Additional Insurance Reserves) | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. Nine Months Ended September 30, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 10,911,794 $ 0 $ 10,911,794 Effect of cumulative changes in discount rate assumptions, beginning of period 554,896 0 554,896 Balance at original discount rate, beginning of period 11,466,690 0 11,466,690 Effect of assumption update (790) 0 (790) Effect of actual variances from expected experience and other activity (144,504) (1,257) (145,761) Adjusted balance, beginning of period 11,321,396 (1,257) 11,320,139 Issuances 512,379 28,889 541,268 Net premiums / considerations collected (1,008,159) (27,632) (1,035,791) Interest accrual 391,662 0 391,662 Balance at original discount rate, end of period 11,217,278 0 11,217,278 Effect of cumulative changes in discount rate assumptions, end of period (939,494) 0 (939,494) Balance, end of period $ 10,277,784 $ 0 $ 10,277,784 Nine Months Ended September 30, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 17,835,251 $ 204,727 $ 18,039,978 Effect of cumulative changes in discount rate assumptions, beginning of period 962,034 24,876 986,910 Balance at original discount rate, beginning of period 18,797,285 229,603 19,026,888 Effect of assumption update (1,044) 0 (1,044) Effect of actual variances from expected experience and other activity (191,864) 6,793 (185,071) Adjusted balance, beginning of period 18,604,377 236,396 18,840,773 Issuances 512,379 28,889 541,268 Interest accrual 670,905 6,300 677,205 Benefit payments (1,019,151) (25,504) (1,044,655) Other adjustments 2,845 (84) 2,761 Balance at original discount rate, end of period 18,771,355 245,997 19,017,352 Effect of cumulative changes in discount rate assumptions, end of period (1,767,981) (34,327) (1,802,308) Balance, end of period $ 17,003,374 $ 211,670 $ 17,215,044 Other, end of period 1,838 Total balance, end of period $ 17,216,882 Nine Months Ended September 30, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 6,725,590 $ 211,670 $ 6,937,260 Flooring impact, end of period 1,773 0 1,773 Balance, end of period, post-flooring 6,727,363 211,670 6,939,033 Less: Reinsurance recoverable 6,241,505 17,097 6,258,602 Balance after reinsurance recoverable, end of period, post-flooring $ 485,858 $ 194,573 $ 680,431 Nine Months Ended September 30, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 12,485,056 $ 0 $ 12,485,056 Effect of cumulative changes in discount rate assumptions, beginning of period (1,826,120) 0 (1,826,120) Balance at original discount rate, beginning of period 10,658,936 0 10,658,936 Effect of assumption update 1,295,294 0 1,295,294 Effect of actual variances from expected experience and other activity (86,611) (1,032) (87,643) Adjusted balance, beginning of period 11,867,619 (1,032) 11,866,587 Issuances 317,058 23,787 340,845 Net premiums / considerations collected (1,000,325) (22,755) (1,023,080) Interest accrual 392,917 0 392,917 Balance at original discount rate, end of period 11,577,269 0 11,577,269 Effect of cumulative changes in discount rate assumptions, end of period (751,597) 0 (751,597) Balance, end of period $ 10,825,672 $ 0 $ 10,825,672 Nine Months Ended September 30, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 20,937,097 $ 237,065 $ 21,174,162 Effect of cumulative changes in discount rate assumptions, beginning of period (3,607,275) (16,704) (3,623,979) Balance at original discount rate, beginning of period 17,329,822 220,361 17,550,183 Effect of assumption update 1,756,995 0 1,756,995 Effect of actual variances from expected experience and other activity (171,967) (1,489) (173,456) Adjusted balance, beginning of period 18,914,850 218,872 19,133,722 Issuances 317,058 23,787 340,845 Interest accrual 664,008 5,798 669,806 Benefit payments (1,046,082) (20,263) (1,066,345) Other adjustments 3,692 (285) 3,407 Balance at original discount rate, end of period 18,853,526 227,909 19,081,435 Effect of cumulative changes in discount rate assumptions, end of period (1,370,645) (28,806) (1,399,451) Balance, end of period $ 17,482,881 $ 199,103 $ 17,681,984 Other, end of period 2,186 Total balance, end of period $ 17,684,170 Nine Months Ended September 30, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, post-flooring $ 6,657,281 $ 199,103 $ 6,856,384 Less: Reinsurance recoverable 6,293,473 16,408 6,309,881 Balance after reinsurance recoverable, end of period, post-flooring $ 363,808 $ 182,695 $ 546,503 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: Nine Months Ended September 30, 2023 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 21,914,391 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,083,578 $ 0 Discounted expected future gross premiums (at current discount rate) $ 13,840,343 $ 0 Undiscounted expected future benefits and expenses $ 29,147,479 $ 328,212 Interest accrual $ 279,242 $ 6,300 Gross premiums $ 1,351,460 $ 32,677 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 9 6 Weighted-average interest rate (at original discount rate) 5.18 % 3.62 % Weighted-average interest rate (at current discount rate) 6.02 % 5.95 % Nine Months Ended September 30, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 22,344,548 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,403,622 $ 0 Discounted expected future gross premiums (at current discount rate) $ 14,404,899 $ 0 Undiscounted expected future benefits and expenses $ 29,477,887 $ 303,385 Interest accrual $ 271,091 $ 5,798 Gross premiums $ 1,379,044 $ 25,058 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.26 % 3.55 % Weighted-average interest rate (at current discount rate) 5.67 % 5.58 % The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 18,193 $ 15,765 Effect of actual variances from expected experience and other activity (6,924) 834 Adjusted balance, beginning of period 11,269 16,599 Profits deferred 4,834 2,173 Interest accrual 423 444 Amortization (1,647) (1,424) Other adjustments (11) (25) Balance, end of period 14,868 17,767 Less: Reinsurance recoverable 1,435 1,710 Balance after reinsurance recoverable $ 13,433 $ 16,057 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Revenue(1) $ 3,325 $ (2,002) Interest accrual 423 444 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Balance, including amounts in AOCI, beginning of period, post-flooring $ 12,664,445 $ 11,660,527 Flooring impact and amounts in AOCI 1,269,237 (896,930) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 13,933,682 10,763,597 Effect of assumption update 22,910 2,197,592 Effect of actual variances from expected experience and other activity (12,611) (215,658) Adjusted balance, beginning of period 13,943,981 12,745,531 Assessments collected(1) 828,657 738,061 Interest accrual 360,309 318,069 Benefits paid (219,784) (131,667) Balance, excluding amounts in AOCI, end of period, pre-flooring 14,913,163 13,669,994 Flooring impact and amounts in AOCI (1,714,686) (1,576,731) Balance, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Less: Reinsurance recoverable 12,979,687 11,902,756 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 218,790 $ 190,507 (1) Represents the portion of gross assessments required to fund the future policy benefits. Nine Months Ended September 30, 2023 2022 ($ in thousands) Interest accrual $ 360,309 $ 318,069 Gross assessments $ 1,168,206 $ 1,020,763 Weighted-average duration of the liability in years (at original discount rate) 22 23 Weighted-average interest rate (at original discount rate) 3.36 % 3.38 % The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 6,939,033 $ 6,856,384 Deferred profit liability, end of period, post-flooring 14,868 17,767 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Subtotal of amounts disclosed above 20,152,378 18,967,414 Other Future policy benefits reserves(1) 1,104,756 1,036,278 Total Future policy benefits $ 21,257,134 $ 20,003,692 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated: Nine Months Ended September 30, 2023 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,351,460 $ 0 $ 32,677 $ 1,384,137 Deferred profit liability 0 0 3,325 3,325 Additional insurance reserves 0 1,168,206 0 1,168,206 Total $ 1,351,460 $ 1,168,206 $ 36,002 $ 2,555,668 Nine Months Ended September 30, 2022 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,379,044 $ 0 $ 25,058 $ 1,404,102 Deferred profit liability 0 0 (2,002) (2,002) Additional insurance reserves 0 1,020,763 0 1,020,763 Total $ 1,379,044 $ 1,020,763 $ 23,056 $ 2,422,863 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves. Nine Months Ended September 30, 2023 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 279,242 $ 0 $ 6,300 $ 285,542 Deferred profit liability 0 0 423 423 Additional insurance reserves 0 360,309 0 360,309 Total $ 279,242 $ 360,309 $ 6,723 $ 646,274 Nine Months Ended September 30, 2022 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 271,091 $ 0 $ 5,798 $ 276,889 Deferred profit liability 0 0 444 444 Additional insurance reserves 0 318,069 0 318,069 Total $ 271,091 $ 318,069 $ 6,242 $ 595,402 |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | : Nine Months Ended September 30, 2023 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 3,067,336 $ 2,398,788 Unearned revenue 612,196 594,026 Amortization expense (111,353) (96,077) Other adjustments (95) 53 Balance, end of period 3,568,084 2,896,790 Less: Reinsurance recoverables 1,656,299 1,498,140 Unearned revenue reserve net of reinsurance recoverables $ 1,911,785 $ 1,398,650 |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: Nine Months Ended September 30, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 4,550,625 $ (422,261) $ 4,128,364 Effect of cumulative changes in non-performance risk 1,727,910 0 1,727,910 Balance, beginning of period, before effect of changes in non-performance risk 6,278,535 (422,261) 5,856,274 Attributed fees collected 878,381 (179,211) 699,170 Claims paid (62,128) 5,903 (56,225) Interest accrual 235,979 (38,016) 197,963 Actual in force different from expected 52,753 (6,588) 46,165 Effect of changes in interest rates (2,869,989) 484,168 (2,385,821) Effect of changes in equity markets (940,654) 90,742 (849,912) Effect of assumption update 330,769 (54,067) 276,702 Issuances 21,271 8,206 29,477 Other adjustments(1) (17,436) (638,198) (655,634) Effect of changes in current period counterparty non-performance risk 0 (75,594) (75,594) Balance, end of period, before effect of changes in non-performance risk 3,907,481 (824,916) 3,082,565 Effect of cumulative changes in non-performance risk (1,230,621) 0 (1,230,621) Balance, end of period $ 2,676,860 $ (824,916) $ 1,851,944 Nine Months Ended September 30, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 8,884,362 $ (906,484) $ 7,977,878 Effect of cumulative changes in non-performance risk 287,605 0 287,605 Balance, beginning of period, before effect of changes in non-performance risk 9,171,967 (906,484) 8,265,483 Attributed fees collected 958,638 (113,016) 845,622 Claims paid (36,684) 1,567 (35,117) Interest accrual 71,646 (6,801) 64,845 Actual in force different from expected 77,474 (6,817) 70,657 Effect of changes in interest rates (6,853,674) 715,370 (6,138,304) Effect of changes in equity markets 3,966,792 (416,593) 3,550,199 Effect of assumption update (160,596) 23,170 (137,426) Effect of changes in current period counterparty non-performance risk 0 226,717 226,717 Balance, end of period, before effect of changes in non-performance risk 7,195,563 (482,887) 6,712,676 Effect of cumulative changes in non-performance risk (2,073,958) 0 (2,073,958) Balance, end of period $ 5,121,605 $ (482,887) $ 4,638,718 (1) Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information. The following table presents accompanying information to the rollforward table above. September 30, 2023 September 30, 2022 Variable Annuities ($ in thousands) Net amount at risk(1) $ 12,504,440 $ 14,124,120 Weighted-average attained age of contractholders 70 69 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: September 30, 2023 September 30, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 2,519,234 $ 1,306,404 Market risk benefit liabilities 4,371,178 5,945,122 Net liability $ 1,851,944 $ 4,638,718 |
Transition adjustment from the adoption of ASU 2018-12 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards of New Guidance on Financial Statements | Unaudited Interim Consolidated Statements of Financial Position: December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 6,616,097 $ 314,328 $ 6,930,425 Reinsurance recoverables 34,561,825 2,534,737 37,096,562 Deferred sales inducements 275,574 105,930 381,504 Income tax assets 1,873,740 (178,989) 1,694,751 Market risk benefit assets 0 1,393,237 1,393,237 Other assets 1,327,393 4,034 1,331,427 TOTAL ASSETS $ 189,299,841 $ 4,173,277 $ 193,473,118 Policyholders’ account balances $ 41,748,241 $ 164,295 $ 41,912,536 Future policy benefits 23,204,533 (2,375,500) 20,829,033 Market risk benefit liabilities 0 5,521,601 5,521,601 Other liabilities 3,407,156 190,217 3,597,373 Total liabilities 184,936,310 3,500,613 188,436,923 Retained earnings / (accumulated deficit) (95,583) (898,571) (994,154) Accumulated other comprehensive income (loss) (1,581,300) 1,571,235 (10,065) Total equity 4,363,531 672,664 5,036,195 TOTAL LIABILITIES AND EQUITY $ 189,299,841 $ 4,173,277 $ 193,473,118 Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss): Three Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of Change As Currently Reported (in thousands) REVENUES Premiums $ 63,354 $ (1,638) $ 61,716 Policy charges and fee income 438,781 (68,835) 369,946 Other income (loss) (163,701) 2,294 (161,407) Realized investment gains (losses), net 23,958 73,313 97,271 Change in value of market risk benefits, net of related hedging gain (loss) 0 (80,078) (80,078) TOTAL REVENUES 641,708 (74,944) 566,764 BENEFITS AND EXPENSES Policyholders’ benefits 122,139 (34,454) 87,685 Change in estimates of liability for future policy benefits 0 (2,935) (2,935) Interest credited to policyholders’ account balances 105,170 (7,521) 97,649 Amortization of deferred policy acquisition costs 96,048 32,372 128,420 General, administrative and other expenses 241,370 1,835 243,205 TOTAL BENEFITS AND EXPENSES 564,727 (10,703) 554,024 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 76,981 (64,241) 12,740 Income tax expense (benefit) (1,983) (5,677) (7,660) INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 78,964 (58,564) 20,400 NET INCOME (LOSS) $ 78,711 $ (58,564) $ 20,147 Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (862,220) 72,112 (790,108) Interest rate remeasurement of future policy benefits 0 97,171 97,171 Gain (loss) from changes in non-performance risk on market risk benefits 0 (3,233) (3,233) Total (865,869) 166,050 (699,819) Less: Income tax expense (benefit) related to other comprehensive income (loss) (181,602) 34,891 (146,711) Other comprehensive income (loss), net of taxes (684,267) 131,159 (553,108) Comprehensive income (loss) $ (605,556) $ 72,595 $ (532,961) Nine Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of Change As Currently Reported (in thousands) REVENUES Premiums $ 195,020 $ (9,475) $ 185,545 Policy charges and fee income 1,256,155 (398,274) 857,881 Other income (loss) (803,321) 8,192 (795,129) Realized investment gains (losses), net 1,522,774 (712,003) 810,771 Change in value of market risk benefits, net of related hedging gain (loss) 0 (1,235,415) (1,235,415) TOTAL REVENUES 2,972,394 (2,346,975) 625,419 BENEFITS AND EXPENSES Policyholders’ benefits 500,009 (132,466) 367,543 Change in estimates of liability for future policy benefits 0 42,865 42,865 Interest credited to policyholders’ account balances 391,640 (73,054) 318,586 Amortization of deferred policy acquisition costs 731,768 (347,384) 384,384 General, administrative and other expenses 795,514 408 795,922 TOTAL BENEFITS AND EXPENSES 2,418,931 (509,631) 1,909,300 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 553,463 (1,837,344) (1,283,881) Income tax expense (benefit) 69,090 (419,304) (350,214) INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 484,373 (1,418,040) (933,667) NET INCOME (LOSS) $ 408,962 $ (1,418,040) $ (1,009,078) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (2,775,879) 167,830 (2,608,049) Interest rate remeasurement of future policy benefits 0 346,865 346,865 Gain (loss) from changes in non-performance risk on market risk benefits 0 1,786,353 1,786,353 Total (2,787,398) 2,301,048 (486,350) Less: Income tax expense (benefit) related to other comprehensive income (loss) (584,114) 483,221 (100,893) Other comprehensive income (loss), net of taxes (2,203,284) 1,817,827 (385,457) Comprehensive income (loss) $ (1,794,322) $ 399,787 $ (1,394,535) Unaudited Interim Consolidated Statements of Cash Flows: Nine Months Ended September 30, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 408,962 $ (1,418,040) $ (1,009,078) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (70,540) 160,284 89,744 Interest credited to policyholders’ account balances 391,640 (73,054) 318,586 Realized investment (gains) losses, net (1,522,774) 712,003 (810,771) Change in value of market risk benefits, net of related hedging (gains) losses 0 1,235,415 1,235,415 Change in: Future policy benefits and other insurance liabilities 2,021,063 1,262,586 3,283,649 Reinsurance recoverables (875,612) (1,060,937) (1,936,549) Deferred policy acquisition costs 11,130 (347,415) (336,285) Income taxes (26,802) (419,316) (446,118) Other, net(1) 1,768,968 (51,526) 1,717,442 Cash flows from (used in) operating activities $ 1,023,461 $ 0 $ 1,023,461 (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 1,772,398 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (722,837) Updates to certain universal life contract liabilities(2) (116,120) Other(3) 72,950 Total pre-tax adjustments (766,007) Tax impacts 160,861 Balance after-tax, after transition $ 1,167,252 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance gains ("DRG") and losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 546,128 Interest rate remeasurement of future policy benefits (196,526) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 722,837 Unwinding amounts related to unrealized investment gains and losses(2) (102,042) Change in operating joint ventures (753) Total pre-tax adjustments 423,516 Tax impacts (89,096) Balance after-tax, after transition $ 880,548 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. |
Deferred Policy Acquisition Costs | January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 462,098 $ 1,971,838 $ 2,433,936 Unwinding amounts related to unrealized investment gains and losses 0 74,702 74,702 Other(1) 1 (15,557) (15,556) Balance after transition $ 462,099 $ 2,030,983 $ 2,493,082 (1) Represents miscellaneous model refinements. |
Liability for Future Policy Benefit (DRL, DRG, Benefit Reserves, DPL, and Additional Insurance Reserves) | January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 118,579 $ 87,932 $ 27,167 $ 233,678 Unwinding amounts related to unrealized investment gains and losses 14,804 0 0 14,804 Effect of change in reserve basis to market risk benefits 141,032 0 0 141,032 Effect of change in SOP 03-1 reserve basis 0 0 (27,167) (27,167) Balance after transition $ 274,415 $ 87,932 $ 0 $ 362,347 (1) Deferred reinsurance losses are included in “Other assets”. January 1, 2021 Deferred Reinsurance Gains(1) Variable/Universal Life (in thousands) Balance prior to transition $ 134,213 Effect of change in SOP 03-1 reserve basis 40,046 Balance after transition $ 174,259 (1) Deferred reinsurance gains are included in “Other liabilities”. January 1, 2021 Benefit Reserves(1) Term Life Life Insurance - Taiwan Other(2) Total (in thousands) Balance prior to transition $ 6,674,490 $ 1,592,329 $ 219,744 $ 8,486,563 Changes in cash flow assumptions and other activity (259) 43,233 (7,283) 35,691 Balance after transition, at original discount rate 6,674,231 1,635,562 212,461 8,522,254 Cumulative changes in discount rate assumptions 2,432,010 3,316,991 27,818 5,776,819 Balance after transition, at current discount rate 9,106,241 4,952,553 240,279 14,299,073 Less: Reinsurance recoverable 8,536,200 4,952,553 239,874 13,728,627 Balance after transition, net of reinsurance recoverable $ 570,041 $ 0 $ 405 $ 570,446 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8. (2) Other includes fixed annuities and retirement products. January 1, 2021 Deferred Profit Liability(1) Life Insurance - Taiwan Other(2) Total (in thousands) Balance prior to transition $ 49,127 $ 1,689 $ 50,816 Changes in benefit reserves (6,671) 8,521 1,850 Balance after transition 42,456 10,210 52,666 Less: Reinsurance recoverable 42,456 10,210 52,666 Balance after transition, net of reinsurance recoverable $ 0 $ 0 $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) Other includes fixed annuities and retirement products. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 9,363,585 $ 588,311 $ 9,951,896 Unwinding amounts related to unrealized investment gains and losses (1,426,811) (53,889) (1,480,700) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 7,936,774 534,422 8,471,196 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (534,422) (534,422) Updates to certain universal life contract liabilities(2) 1,771,341 0 1,771,341 Balance after transition, excluding amounts related to unrealized investment gains and losses 9,708,115 0 9,708,115 Amounts related to unrealized investment gains and losses after transition 1,169,972 0 1,169,972 Balance after transition 10,878,087 0 10,878,087 Less: Reinsurance recoverable 10,685,150 0 10,685,150 Balance after transition, net of reinsurance recoverable $ 192,937 $ 0 $ 192,937 (1) AIR, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 1,377,669 Unwinding amounts related to unrealized investment gains and losses and other activity 367,599 Balance after transition 1,745,268 Less: Reinsurance recoverable 751,517 Balance after transition, net of reinsurance recoverable $ 993,751 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Cost of Reinsurance(1) Variable/Universal Life (in thousands) Balance prior to transition $ 602,294 Unwinding amounts related to unrealized investment gains and losses (246,899) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 355,395 Impact from updates to certain universal life contract liabilities(2) 81,920 Balance after transition, excluding amounts related to unrealized investment gains and losses 437,315 Amounts related to unrealized investment gains and losses after transition 191,098 Balance after transition $ 628,413 (1) Cost of reinsurance is included in "Other liabilities". (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. |
Market Risk Benefits | January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 13,227,814 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 534,422 Total liability prior to transition 13,762,236 Change in reserve basis to market risk benefits framework (184,693) Market risk benefits after transition, at current non-performance risk value 13,577,543 Less: Reinsured market risk benefits 13,589,575 Market risk benefits after transition, net of reinsurance $ (12,032) Market risk benefits after transition, at contract inception non-performance risk value 14,300,380 Cumulative change in non-performance risk 722,837 Market risk benefits after transition, at current non-performance risk value $ 13,577,543 (1) For additional information regarding market risk benefits, see Note 10. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2023 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 $ 392,452 $ 119 $ 99,511 $ 0 $ 293,060 Obligations of U.S. states and their political subdivisions 794,103 562 62,748 0 731,917 Foreign government bonds 341,894 628 75,489 0 267,033 U.S. public corporate securities 10,141,650 9,571 1,313,950 1,097 8,836,174 U.S. private corporate securities 4,958,820 3,596 427,455 2,946 4,532,015 Foreign public corporate securities 1,883,846 1,134 190,248 264 1,694,468 Foreign private corporate securities 4,802,652 19,942 622,422 0 4,200,172 Asset-backed securities(1) 2,037,295 15,615 23,202 0 2,029,708 Commercial mortgage-backed securities 926,653 32 93,898 0 832,787 Residential mortgage-backed securities(2) 403,193 139 22,303 8 381,021 Total fixed maturities, available-for-sale $ 26,682,558 $ 51,338 $ 2,931,226 $ 4,315 $ 23,798,355 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans and credit cards. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 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 $ 354,348 $ 300 $ 72,856 $ 0 $ 281,792 Obligations of U.S. states and their political subdivisions 654,884 4,275 30,959 0 628,200 Foreign government bonds 330,967 1,140 58,640 5 273,462 U.S. public corporate securities 7,414,790 21,299 992,145 0 6,443,944 U.S. private corporate securities 4,140,734 13,071 335,205 1,871 3,816,729 Foreign public corporate securities 1,539,172 2,455 163,384 21 1,378,222 Foreign private corporate securities 4,338,585 19,761 589,153 2,863 3,766,330 Asset-backed securities(1) 1,467,955 6,976 32,577 0 1,442,354 Commercial mortgage-backed securities 727,159 94 69,101 0 658,152 Residential mortgage-backed securities(2) 342,493 3,211 9,479 9 336,216 Total fixed maturities, available-for-sale $ 21,311,087 $ 72,582 $ 2,353,499 $ 4,769 $ 19,025,401 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and home equity. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2023 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 $ 97,348 $ 3,963 $ 191,991 $ 95,548 $ 289,339 $ 99,511 Obligations of U.S. states and their political subdivisions 448,520 24,252 212,638 38,496 661,158 62,748 Foreign government bonds 36,806 3,030 223,995 72,459 260,801 75,489 U.S. public corporate securities 3,555,490 173,174 4,847,346 1,140,717 8,402,836 1,313,891 U.S. private corporate securities 1,574,199 66,338 2,620,568 361,085 4,194,767 427,423 Foreign public corporate securities 588,547 15,738 951,916 174,194 1,540,463 189,932 Foreign private corporate securities 1,426,572 58,934 2,293,089 563,488 3,719,661 622,422 Asset-backed securities 580,841 7,610 599,359 15,592 1,180,200 23,202 Commercial mortgage-backed securities 177,533 3,454 584,984 90,444 762,517 93,898 Residential mortgage-backed securities 258,938 8,288 119,993 14,014 378,931 22,302 Total fixed maturities, available-for-sale $ 8,744,794 $ 364,781 $ 12,645,879 $ 2,566,037 $ 21,390,673 $ 2,930,818 December 31, 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 $ 212,991 $ 46,928 $ 62,630 $ 25,928 $ 275,621 $ 72,856 Obligations of U.S. states and their political subdivisions 307,734 16,851 61,915 14,108 369,649 30,959 Foreign government bonds 139,577 19,435 111,371 39,205 250,948 58,640 U.S. public corporate securities 3,873,275 389,937 1,979,725 602,208 5,853,000 992,145 U.S. private corporate securities 2,506,932 157,853 948,686 177,352 3,455,618 335,205 Foreign public corporate securities 548,083 40,508 596,437 122,856 1,144,520 163,364 Foreign private corporate securities 1,772,413 199,124 1,479,608 390,029 3,252,021 589,153 Asset-backed securities 625,710 15,146 289,581 17,431 915,291 32,577 Commercial mortgage-backed securities 459,186 30,408 176,349 38,693 635,535 69,101 Residential mortgage-backed securities 129,721 9,220 1,294 259 131,015 9,479 Total fixed maturities, available-for-sale $ 10,575,622 $ 925,410 $ 5,707,596 $ 1,428,069 $ 16,283,218 $ 2,353,479 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2023 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 753,797 $ 735,127 Due after one year through five years 8,340,245 7,851,028 Due after five years through ten years 6,783,822 6,071,535 Due after ten years 7,437,553 5,897,149 Asset-backed securities 2,037,295 2,029,708 Commercial mortgage-backed securities 926,653 832,787 Residential mortgage-backed securities 403,193 381,021 Total fixed maturities, available-for-sale $ 26,682,558 $ 23,798,355 |
Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 151,383 $ 377,344 $ 280,064 $ 1,055,433 Proceeds from maturities/prepayments 318,188 222,454 806,521 453,241 Gross investment gains from sales and maturities 1,377 (2,527) 10,826 (3,885) Gross investment losses from sales and maturities (10,920) (2,371) (28,445) (44,274) Write-downs recognized in earnings(2) 4 (1,088) 11 (20,604) (Addition to) release of allowance for credit losses 608 98 454 (563) (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $10.0 million and $2.3 million for the nine months ended September 30, 2023 and 2022, 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 September 30, 2023 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 4,917 $ 0 $ 0 $ 6 $ 4,923 Additions to allowance for credit losses not previously recorded 0 0 374 0 0 0 374 Reductions for securities sold during the period 0 0 (1,280) 0 0 0 (1,280) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 0 296 0 0 2 298 Balance, end of period $ 0 $ 0 $ 4,307 $ 0 $ 0 $ 8 $ 4,315 Three Months Ended September 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 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Additions to allowance for credit losses not previously recorded 0 0 534 0 0 7 541 Reductions for securities sold during the period 0 (92) (21) 0 0 0 (113) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 (14) (512) 0 0 0 (526) Balance, end of period $ 0 $ 10 $ 4,695 $ 0 $ 0 $ 7 4,712 Nine Months Ended September 30, 2023 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 $ 5 $ 4,755 $ 0 $ 0 $ 9 $ 4,769 Additions to allowance for credit losses not previously recorded 0 0 3,539 0 0 0 3,539 Reductions for securities sold during the period 0 (1) (5,054) 0 0 0 (5,055) Reductions for securities with intent to sell 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 (4) 1,067 0 0 (1) 1,062 Balance, end of period $ 0 $ 0 $ 4,307 $ 0 $ 0 $ 8 $ 4,315 Nine Months Ended September 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 12,696 0 0 7 13,032 Reductions for securities sold during the period 0 (96) (1,223) 0 0 0 (1,319) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Additions (reductions) on securities with previous allowance 0 90 5,750 0 0 0 5,840 Balance, end of period $ 0 $ 10 $ 4,695 $ 0 $ 0 $ 7 $ 4,712 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans”, as of the dates indicated: September 30, 2023 December 31, 2022 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 1,450,305 26.3 % $ 1,289,026 26.0 % Hospitality 102,536 1.9 104,177 2.1 Industrial 2,097,019 38.0 1,766,247 35.8 Office 580,189 10.5 590,897 11.9 Other 410,324 7.4 380,121 7.7 Retail 364,678 6.6 351,457 7.1 Total commercial mortgage loans 5,005,051 90.7 4,481,925 90.6 Agricultural property loans 514,918 9.3 467,018 9.4 Total commercial mortgage and agricultural property loans 5,519,969 100.0 % 4,948,943 100.0 % Allowance for credit losses (27,100) (20,263) Total net commercial mortgage and agricultural property loans $ 5,492,869 $ 4,928,680 The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2023 and December 31, 2022 were as follows: Maturity Date Interest Rate September 30, 2023 December 31, 2022 (in thousands) Affiliated Commercial Mortgage Loan 2025 9.83 % $ 71,335 $ 72,225 |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended September 30, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 21,133 $ 960 $ 22,093 $ 9,704 $ 220 $ 9,924 Addition to (release of) allowance for expected losses 5,055 (48) 5,007 6,116 92 6,208 Allowance, end of period $ 26,188 $ 912 $ 27,100 $ 15,820 $ 312 $ 16,132 Nine Months Ended September 30, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 19,665 $ 598 $ 20,263 $ 5,847 $ 104 $ 5,951 Addition to (release of) allowance for expected losses 6,523 314 6,837 9,973 208 10,181 Allowance, end of period $ 26,188 $ 912 $ 27,100 $ 15,820 $ 312 $ 16,132 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 195,586 $ 245,400 $ 454,857 $ 98,187 $ 256,820 $ 1,126,765 $ 0 $ 2,377,615 60%-69.99% 194,755 378,576 503,195 180,257 215,928 188,358 0 1,661,069 70%-79.99% 197,272 155,548 222,693 71,335 20,950 74,022 0 741,820 80% or greater 0 0 73,415 3,801 13,316 134,015 0 224,547 Total $ 587,613 $ 779,524 $ 1,254,160 $ 353,580 $ 507,014 $ 1,523,160 $ 0 $ 5,005,051 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 495,769 $ 775,990 $ 1,254,160 $ 282,245 $ 468,051 $ 1,422,566 $ 0 $ 4,698,781 1.0 - 1.2x 91,844 3,534 0 0 23,667 7,904 0 126,949 Less than 1.0x 0 0 0 71,335 15,296 92,690 0 179,321 Total $ 587,613 $ 779,524 $ 1,254,160 $ 353,580 $ 507,014 $ 1,523,160 $ 0 $ 5,005,051 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 27,184 $ 186,471 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 418,707 60%-69.99% 34,315 56,210 0 0 0 0 0 90,525 70%-79.99% 5,686 0 0 0 0 0 0 5,686 80% or greater 0 0 0 0 0 0 0 0 Total $ 67,185 $ 242,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 514,918 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 67,185 $ 240,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 512,918 1.0 - 1.2x 0 2,000 0 0 0 0 0 2,000 Less than 1.0x 0 0 0 0 0 0 0 0 Total $ 67,185 $ 242,681 $ 132,028 $ 26,052 $ 15,880 $ 26,342 $ 4,750 $ 514,918 December 31, 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% $ 266,453 $ 262,095 $ 63,558 $ 222,638 $ 201,087 $ 894,646 $ 1,910,477 60%-69.99% 344,110 681,996 243,800 219,593 61,757 305,175 1,856,431 70%-79.99% 166,629 304,386 47,388 66,148 2,409 53,336 640,296 80% or greater 0 0 0 3,249 0 71,472 74,721 Total $ 777,192 $ 1,248,477 $ 354,746 $ 511,628 $ 265,253 $ 1,324,629 $ 4,481,925 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 744,301 $ 1,248,477 $ 243,325 $ 452,626 $ 258,617 $ 1,203,807 $ 4,151,153 1.0 - 1.2x 32,891 0 83,655 26,558 6,636 45,742 195,482 Less than 1.0x 0 0 27,766 32,444 0 75,080 135,290 Total $ 777,192 $ 1,248,477 $ 354,746 $ 511,628 $ 265,253 $ 1,324,629 $ 4,481,925 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 208,708 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 410,808 60%-69.99% 56,210 0 0 0 0 0 56,210 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 264,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 467,018 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 262,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 465,018 1.0 - 1.2x 2,000 0 0 0 0 0 2,000 Less than 1.0x 0 0 0 0 0 0 0 Total $ 264,918 $ 133,126 $ 25,894 $ 16,053 $ 6,327 $ 20,700 $ 467,018 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2023 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 $ 5,005,051 $ 0 $ 0 $ 0 $ 5,005,051 $ 0 Agricultural property loans 514,918 0 0 0 514,918 0 Total $ 5,519,969 $ 0 $ 0 $ 0 $ 5,519,969 $ 0 (1) As of September 30, 2023, 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. December 31, 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 $ 4,481,925 $ 0 $ 0 $ 0 $ 4,481,925 $ 0 Agricultural property loans 465,689 0 1,329 0 467,018 0 Total $ 4,947,614 $ 0 $ 1,329 $ 0 $ 4,948,943 $ 0 (1) As of December 31, 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 restated Consolidated Financial Statements for the year ended December 31, 2022 included as Exhibit 99.1 within the Company's Current Report on Form 8-K filed on July 14, 2023. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Company’s investment in separate accounts $ 426 $ 510 LPs/LLCs: Equity method: Private equity 340,262 287,969 Hedge funds 670,663 576,595 Real estate-related 92,674 107,429 Subtotal equity method 1,103,599 971,993 Fair value: Private equity 56,468 59,146 Hedge funds 194 396 Real estate-related 8,313 9,457 Subtotal fair value 64,975 68,999 Total LPs/LLCs 1,168,574 1,040,992 Derivative instruments 34,591 47,111 Total other invested assets $ 1,203,591 $ 1,088,613 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Fixed maturities $ 258,396 $ 187,628 Equity securities 403 349 Commercial mortgage and other loans 17,985 13,335 Policy loans 25,416 14,525 Other invested assets 43 48 Short-term investments and cash equivalents 6,665 3,750 Total accrued investment income $ 308,908 $ 219,635 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities, available-for-sale $ 312,405 $ 153,170 $ 822,933 $ 384,347 Fixed maturities, trading 26,104 12,752 65,739 40,796 Equity securities 3,886 3,077 9,206 4,429 Commercial mortgage and other loans 58,673 29,682 163,646 74,731 Policy loans 15,962 5,354 31,580 15,573 Other invested assets 36,152 7,109 77,875 82,142 Short-term investments and cash equivalents 27,347 14,444 88,105 18,533 Gross investment income 480,529 225,588 1,259,084 620,551 Less: investment expenses (19,665) (14,826) (55,695) (38,361) Net investment income $ 460,864 $ 210,762 $ 1,203,389 $ 582,190 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Fixed maturities(1) $ (8,931) $ (5,888) $ (17,154) $ (69,326) Commercial mortgage and other loans (5,059) (7,513) (7,143) (13,872) Other invested assets 10,856 (75,864) 24,052 (72,328) Derivatives(2) (465,176) 186,514 (582,846) 966,487 Short-term investments and cash equivalents 54 22 1,850 (190) Realized investment gains (losses), net(2) $ (468,256) $ 97,271 $ (581,241) $ 810,771 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 742 $ 4,371 Fixed maturity securities, available-for-sale without an allowance (2,880,630) (2,285,288) Derivatives designated as cash flow hedges(1) 94,460 138,627 Affiliated notes (12,218) (13,189) Other investments(2)(3) (1,255) (1,176) Net unrealized gains (losses) on investments $ (2,798,901) $ (2,156,655) (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". (3) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities”, which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: September 30, 2023 December 31, 2022 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) Foreign government bonds $ 490 $ 0 $ 490 $ 506 $ 0 $ 506 U.S. public corporate securities 6,879 0 6,879 7,903 0 7,903 Foreign public corporate securities 3,362 0 3,362 12,873 0 12,873 Equity securities 173,270 0 173,270 65,468 0 65,468 Total cash collateral for loaned securities(1) $ 184,001 $ 0 $ 184,001 $ 86,750 $ 0 $ 86,750 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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. September 30, 2023 December 31, 2022 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 $ 6,172 $ 0 $ (356) $ 3,225 $ 0 $ (316) Foreign Currency Swaps 2,100,808 187,257 (18,111) 1,933,343 233,812 (10,462) Total Derivatives Designated as Hedge Accounting Instruments $ 2,106,980 $ 187,257 $ (18,467) $ 1,936,568 $ 233,812 $ (10,778) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 160,769,460 $ 10,293,935 $ (22,659,077) $ 138,419,110 $ 6,757,890 $ (17,092,749) Interest Rate Options 29,418,000 311,893 (1,404,581) 8,368,000 123,168 (225,125) Interest Rate Futures 2,557,132 495 (5,251) 2,425,500 3,267 (201) Interest Rate Forwards 1,104,000 84,165 (86,244) 1,104,000 11,265 (12,359) Foreign Currency Foreign Currency Forwards 929,085 18,545 (6,270) 364,946 590 (10,423) Credit Credit Default Swaps 144,300 885 (316) 47,450 346 0 Currency/Interest Rate Foreign Currency Swaps 2,332,940 167,484 (15,371) 2,289,170 194,412 (14,624) Equity Total Return Swaps 13,759,916 440,719 (253,318) 15,958,130 120,341 (175,104) Equity Options 45,258,330 805,583 (1,363,539) 25,187,516 239,003 (1,112,196) Equity Futures 803,642 364 (4,063) 876,790 956 (513) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 257,076,805 $ 12,124,068 $ (25,798,030) $ 195,040,612 $ 7,451,238 $ (18,643,294) Total Derivatives(1)(2) $ 259,183,785 $ 12,311,325 $ (25,816,497) $ 196,977,180 $ 7,685,050 $ (18,654,072) (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 $5,731 million and $3,351 million as of September 30, 2023 and December 31, 2022, respectively, primarily included in "Policyholders' account balances". (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Unaudited Interim Consolidated Statements of Financial Position. |
Offsetting Of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 12,311,325 $ (12,276,734) $ 34,591 $ 0 $ 34,591 Securities purchased under agreements to resell 140,000 0 140,000 0 140,000 Total Assets $ 12,451,325 $ (12,276,734) $ 174,591 $ 0 $ 174,591 Offsetting of Financial Liabilities: Derivatives $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,685,050 $ (7,637,939) $ 47,111 $ 0 $ 47,111 Securities purchased under agreements to resell 290,000 0 290,000 (290,000) 0 Total Assets $ 7,975,050 $ (7,637,939) $ 337,111 $ (290,000) $ 47,111 Offsetting of Financial Liabilities: Derivatives $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 12,311,325 $ (12,276,734) $ 34,591 $ 0 $ 34,591 Securities purchased under agreements to resell 140,000 0 140,000 0 140,000 Total Assets $ 12,451,325 $ (12,276,734) $ 174,591 $ 0 $ 174,591 Offsetting of Financial Liabilities: Derivatives $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 25,816,497 $ (21,871,933) $ 3,944,564 $ (3,944,564) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,685,050 $ (7,637,939) $ 47,111 $ 0 $ 47,111 Securities purchased under agreements to resell 290,000 0 290,000 (290,000) 0 Total Assets $ 7,975,050 $ (7,637,939) $ 337,111 $ (290,000) $ 47,111 Offsetting of Financial Liabilities: Derivatives $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 18,654,072 $ (16,568,912) $ 2,085,160 $ (2,085,160) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ (32) $ 0 $ (12) Currency/Interest Rate (936) 0 10,629 19,494 (5,189) Total cash flow hedges (935) 0 10,597 19,494 (5,201) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 53,990 (2,059,987) 0 0 0 Currency 20,401 0 0 0 0 Currency/Interest Rate 8,059 0 0 262 0 Credit (253) 0 0 0 0 Equity (449,655) 266,623 0 0 0 Embedded Derivatives (96,783) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (464,241) (1,793,364) 0 262 0 Total $ (465,176) $ (1,793,364) $ 10,597 $ 19,756 $ (5,201) Nine Months Ended September 30, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 0 $ (86) $ 0 $ (13) Currency/Interest Rate (365) 0 33,308 2,041 (44,154) Total cash flow hedges (363) 0 33,222 2,041 (44,167) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 69,702 (2,767,152) 0 0 0 Currency 8,375 0 0 0 0 Currency/Interest Rate (28,263) 0 0 62 0 Credit 2,073 0 0 0 0 Equity 694,236 (331,444) 0 0 0 Embedded Derivatives (1,325,493) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (579,370) (3,098,596) 0 62 0 Total $ (579,733) $ (3,098,596) $ 33,222 $ 2,103 $ (44,167) Three Months Ended September 30, 2022 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss)(1) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ (6) $ 0 $ (113) Currency/Interest Rate 10,342 0 9,735 48,729 84,011 Total cash flow hedges 10,343 0 9,729 48,729 83,898 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 140,569 (1,204,876) 0 0 0 Currency 19,236 0 0 0 0 Currency/Interest Rate 79,436 0 0 383 0 Credit 9,495 0 0 0 0 Equity (348,314) 233,542 0 0 0 Embedded Derivatives 275,749 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 176,171 (971,334) 0 383 0 Total $ 186,514 $ (971,334) $ 9,729 $ 49,112 $ 83,898 Nine Months Ended September 30, 2022 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss)(1) Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 0 $ 10 $ 0 $ (334) Currency/Interest Rate 9,989 0 26,301 88,912 188,727 Total cash flow hedges 9,990 0 26,311 88,912 188,393 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 623,761 (4,984,420) 0 0 0 Currency 39,037 0 0 0 0 Currency/Interest Rate 192,373 0 0 786 0 Credit (31,954) 0 0 0 0 Equity (173,413) 1,383,178 0 0 0 Embedded Derivatives 306,693 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 956,497 (3,601,242) 0 786 0 Total $ 966,487 $ (3,601,242) $ 26,311 $ 89,698 $ 188,393 (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
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, 2022 $ 138,627 Amount recorded in AOCI Interest Rate (97) Currency/Interest Rate (9,170) Total amount recorded in AOCI (9,267) Amount reclassified from AOCI to income Interest Rate 84 Currency/Interest Rate (34,984) Total amount reclassified from AOCI to income (34,900) Balance, September 30, 2023 $ 94,460 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. September 30, 2023 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 $ 293,060 $ 0 $ $ 293,060 Obligations of U.S. states and their political subdivisions 0 731,917 0 731,917 Foreign government bonds 0 266,347 686 267,033 U.S. corporate public securities 0 8,836,174 0 8,836,174 U.S. corporate private securities 0 4,065,855 466,160 4,532,015 Foreign corporate public securities 0 1,687,936 6,532 1,694,468 Foreign corporate private securities 0 3,728,278 471,894 4,200,172 Asset-backed securities(2) 0 1,916,281 113,427 2,029,708 Commercial mortgage-backed securities 0 756,036 76,751 832,787 Residential mortgage-backed securities 0 381,021 0 381,021 Subtotal 0 22,662,905 1,135,450 23,798,355 Market risk benefit assets 0 0 2,519,234 2,519,234 Fixed maturities, trading 0 2,443,548 725 2,444,273 Equity securities 169,378 10,333 44,686 224,397 Short-term investments 19,809 200,674 584 221,067 Cash equivalents 0 1,144,914 0 1,144,914 Other invested assets(3) 9,208 12,302,117 0 (12,276,734) 34,591 Other assets 0 0 270,490 270,490 Reinsurance recoverable 0 0 15,544 15,544 Receivables from parent and affiliates 0 144,699 0 144,699 Subtotal excluding separate account assets 198,395 38,909,190 3,986,713 (12,276,734) 30,817,564 Separate account assets(4)(5) 130,896 106,518,193 5,500 106,654,589 Total assets $ 329,291 $ 145,427,383 $ 3,992,213 $ (12,276,734) $ 137,472,153 Market risk benefit liabilities $ 0 $ 0 $ 4,371,178 $ $ 4,371,178 Policyholders' account balances 0 0 6,005,729 6,005,729 Payables to parent and affiliates 0 25,806,000 0 (21,870,566) 3,935,434 Other liabilities(6) 10,497 (5,396) 0 (1,367) 3,734 Total liabilities $ 10,497 $ 25,800,604 $ 10,376,907 $ (21,871,933) $ 14,316,075 December 31, 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 $ 281,792 $ 0 $ $ 281,792 Obligations of U.S. states and their political subdivisions 0 628,200 0 628,200 Foreign government bonds 0 272,738 724 273,462 U.S. corporate public securities 0 6,443,944 0 6,443,944 U.S. corporate private securities 0 3,573,269 243,460 3,816,729 Foreign corporate public securities 0 1,371,354 6,868 1,378,222 Foreign corporate private securities 0 3,509,162 257,168 3,766,330 Asset-backed securities(2) 0 1,421,852 20,502 1,442,354 Commercial mortgage-backed securities 0 573,930 84,222 658,152 Residential mortgage-backed securities 0 336,216 0 336,216 Subtotal 0 18,412,457 612,944 19,025,401 Market risk benefit assets(7) 0 0 1,393,237 1,393,237 Fixed maturities, trading 0 1,936,159 0 1,936,159 Equity securities 108,076 6,403 28,593 143,072 Short-term investments 0 81,215 16,945 98,160 Cash equivalents 0 1,432,182 0 1,432,182 Other invested assets(3) 4,223 7,680,827 0 (7,637,939) 47,111 Other assets 0 0 141,041 141,041 Receivables from parent and affiliates 0 148,075 0 148,075 Subtotal excluding separate account assets 112,299 29,697,318 2,192,760 (7,637,939) 24,364,438 Separate account assets(4)(5) 102,243 108,682,425 4,645 108,789,313 Total assets $ 214,542 $ 138,379,743 $ 2,197,405 $ (7,637,939) $ 133,153,751 Market risk benefit liabilities(7) $ 0 $ 0 $ 5,521,601 $ $ 5,521,601 Policyholders' account balances 0 0 3,502,096 3,502,096 Payables to parent and affiliates 0 18,653,159 0 (16,568,242) 2,084,917 Other liabilities(6) 899 (9,496) 0 (670) (9,267) Total liabilities $ 899 $ 18,643,663 $ 9,023,697 $ (16,568,912) $ 11,099,347 (1) “Netting” amounts represent cash collateral of $(9,595) million and $(8,931) million as of September 30, 2023 and December 31, 2022, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of September 30, 2023 and December 31, 2022, the fair values of such investments were $65 million and $69 million, respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At September 30, 2023 and December 31, 2022, the fair value of such investments were $4,957 million and $5,262 million, respectively. (6) Other liabilities includes embedded derivatives associated with reinsurance agreements. (7) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. September 30, 2023 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 726,528 Discounted cash flow Discount rate 8.23 % 20 % 12.16 % Decrease Liquidation Liquidation value 63.62 % 63.62 % 63.62 % Increase Market risk benefit assets(4) $ 2,519,234 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.48 % 2.10 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(4) $ 4,371,178 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.48 % 2.10 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(10) $ 6,005,729 Discounted cash flow Lapse rate(5) 1 % 80 % Decrease Spread over SOFR(6) 0.48 % 2.15 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 6 % 28 % Increase Option budget(11) (1) % 6 % Increase December 31, 2022 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 408,494 Discounted cash flow Discount rate 9.77 % 20 % 16.53 % Decrease Market Comparables EBITDA multiples(3) 2.2 X 23.5 X 8.1 X Increase Market risk benefit assets(4)(12) $ 1,393,237 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.50 % 2.20 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 18 % 26 % Decrease Liabilities: Market risk benefit liabilities(4)(12) $ 5,521,601 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.50 % 2.20 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(10) $ 3,502,096 Discounted cash flow Lapse rate(5) 1 % 80 % Decrease Spread over SOFR(6) 0.22 % 2.26 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 6 % 30 % Increase Option budget(11) (2) % 6 % 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. (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) Market risk benefits primarily represent fair value for all living benefit guarantees including accumulation, withdrawal and income benefits. Since the valuation methodology for these assets and 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) 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. (6) 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 September 30, 2023 and December 31, 2022, 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 are insurance liabilities and are therefore senior to debt. Effective April 2023, the Company entered into an agreement with The Ohio National Life Insurance Company ("Ohio National"), an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. See Note 11 for additional information regarding this transaction. As a result of this transaction, a ceded MRB asset balance was established to fair value the reinsurance reimbursements to the Company. The establishment of the fair value also required an estimate of NPR for Ohio National, which may differ from that of the Company's; however, the NPR spreads for Ohio National were developed using a methodology similar to that of the Company. (7) 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. (8) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2023 and December 31, 2022, the minimum withdrawal rate assumption is 81% and 77%, respectively. As of September 30, 2023 and December 31, 2022, 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%. (9) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 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. (10) 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 weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (11) Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. (12) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
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 (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 701 $ (15) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (17) Corporate securities(3) 721,247 (27,838) 182,465 (10,882) 0 (27,762) (708) 117,152 (9,088) 944,586 (28,256) Structured securities(4) 146,339 (3,871) 53,352 0 0 (339) 0 2,297 (7,600) 190,178 (3,836) Other assets: Fixed maturities, trading 0 18 0 0 0 0 707 0 0 725 18 Equity securities 43,374 (1,219) 2,531 0 0 0 0 0 0 44,686 (1,219) Short-term investments 1,209 0 802 0 0 (1,427) 0 0 0 584 0 Other assets 217,613 25,539 33,850 0 0 (6,512) 0 0 0 270,490 19,028 Reinsurance recoverables 1,465 14,079 0 0 0 0 0 0 0 15,544 14,079 Separate account assets 4,982 (7) 1,049 (524) 0 0 0 0 0 5,500 (6) Liabilities: Policyholders' account balances(5) (5,513,449) (107,528) 0 0 (413,219) 0 28,467 0 0 (6,005,729) (273,135) Three Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,048) $ 0 $ 0 $ (31,183) $ 507 $ (674) $ 0 $ 0 $ (31,435) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (1,219) 0 0 0 0 (1,219) 0 0 Other assets 25,539 0 0 0 0 19,028 0 0 0 Reinsurance recoverables 14,079 0 0 0 0 14,079 0 0 0 Separate account assets 0 0 (7) 0 0 0 0 (6) 0 Liabilities: Policyholders' account balances (107,528) 0 0 0 0 (273,135) 0 0 0 Nine Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 724 $ (38) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (46) Corporate securities(3) 507,496 (20,639) 493,339 (39,721) 0 (104,604) 651 117,152 (9,088) 944,586 (21,842) Structured securities(4) 104,724 (7,070) 200,659 (27) 0 (1,677) 0 4,537 (110,968) 190,178 (6,965) Other assets: Fixed maturities, trading 0 18 6,250 0 0 0 707 0 (6,250) 725 18 Equity securities 28,593 (2,030) 2,531 0 0 0 15,592 0 0 44,686 (2,030) Short-term investments 16,945 2,573 3,490 0 0 (21,065) (1,359) 0 0 584 51 Other assets 141,041 33,559 107,453 0 0 (11,563) 0 0 0 270,490 21,997 Reinsurance recoverables 0 15,544 0 0 0 0 0 0 0 15,544 15,544 Separate account assets 4,645 250 1,889 (1,124) 0 (160) 0 0 0 5,500 249 Liabilities: Policyholders' account balances(5) (3,502,096) (1,355,011) 0 0 (1,251,457) 0 102,835 0 0 (6,005,729) (508,105) Nine Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,861) $ 0 $ 0 $ (26,743) $ 857 $ (2,693) $ 0 $ 0 $ (26,160) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (2,030) 0 0 0 0 (2,030) 0 0 Short-term investments 1,857 0 0 (73) 789 0 0 0 51 Other assets 33,559 0 0 0 0 21,997 0 0 0 Reinsurance recoverables 15,544 0 0 0 0 15,544 0 0 0 Separate account assets 0 0 250 0 0 0 0 249 0 Liabilities: Policyholders' account balances (1,355,011) 0 0 0 0 (508,105) 0 0 0 Three Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 135 $ 88 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 86 Corporate securities(3) 317,878 (7,376) 66,826 (11,975) 0 (54,455) 106,408 6,259 0 423,565 (6,546) Structured securities(4) 123,288 (2,903) 28,250 0 0 (403) 0 0 (33,490) 114,742 (2,860) Other assets: Equity securities 29,783 (1,111) 0 0 0 0 0 0 0 28,672 (1,110) Short-term investments 2,772 2 0 0 0 (5,876) 7,290 0 0 4,188 0 Other assets 75,858 56,595 (24,914) 0 0 (104) 0 0 0 107,435 56,700 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,427,667) 217,837 0 0 0 (433,009) 0 0 0 (3,642,839) 843,341 Three Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 307 $ 0 $ 0 $ (9,226) $ (1,272) $ 491 $ 0 $ 0 $ (9,811) Other assets: Equity securities 0 (1,111) 0 0 0 0 (1,110) 0 0 Short-term investments 0 0 0 0 2 0 0 0 0 Other assets 56,595 0 0 0 0 56,700 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 217,837 0 0 0 0 843,341 0 0 0 Nine Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 150 $ 73 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 71 Corporate securities(3) 385,634 (56,596) 200,137 (24,363) 0 (87,790) 106,408 6,259 (106,124) 423,565 (53,687) Structured securities(4) 173,944 (25,231) 61,740 0 0 (1,476) 0 0 (94,235) 114,742 (25,140) Other assets: Equity securities 12,472 (3,231) 10,000 (230) 0 0 9,661 0 0 28,672 (3,249) Short-term investments 0 7 2,766 0 0 (5,930) 7,290 55 0 4,188 0 Other assets 72,937 60,932 (23,673) 0 0 (2,761) 0 0 0 107,435 63,692 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,245,773) 188,287 0 0 0 (824,375) 239,022 0 0 (3,642,839) 1,272,540 Nine Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (16,505) $ 0 $ 0 $ (64,307) $ (942) $ (13,988) $ 0 $ 0 $ (64,768) Other assets: Equity securities 0 (3,231) 0 0 0 0 (3,249) 0 0 Short-term investments 0 0 0 0 7 0 0 0 0 Other assets 60,932 0 0 0 0 63,692 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 188,287 0 0 0 0 1,272,540 0 0 0 (1) "Other" largely represents non-cash moves related to novated variable indexed annuities under the reinsurance agreement with FLIAC. See Note 11 for more details regarding these transactions. In addition, for the prior year Policyholders' account balances 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. (2) 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. (3) Includes U.S. corporate private, foreign corporate public, foreign corporate private securities and foreign government bonds. (4) Includes asset-backed and commercial mortgage-backed securities. (5) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (6) Effective January 1, 2021, Future policy benefits previously included in “Changes in Level 3 Assets and Liabilities” are now reported as Market Risk Benefits. See Note 10 for additional information. (7) Excludes MRB assets of $2,519 million and $1,306 million and MRB liabilities of $4,371 million and $5,945 million for period ending September 30, 2023 and 2022, respectively. See Note 10 for additional information. |
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 (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 701 $ (15) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (17) Corporate securities(3) 721,247 (27,838) 182,465 (10,882) 0 (27,762) (708) 117,152 (9,088) 944,586 (28,256) Structured securities(4) 146,339 (3,871) 53,352 0 0 (339) 0 2,297 (7,600) 190,178 (3,836) Other assets: Fixed maturities, trading 0 18 0 0 0 0 707 0 0 725 18 Equity securities 43,374 (1,219) 2,531 0 0 0 0 0 0 44,686 (1,219) Short-term investments 1,209 0 802 0 0 (1,427) 0 0 0 584 0 Other assets 217,613 25,539 33,850 0 0 (6,512) 0 0 0 270,490 19,028 Reinsurance recoverables 1,465 14,079 0 0 0 0 0 0 0 15,544 14,079 Separate account assets 4,982 (7) 1,049 (524) 0 0 0 0 0 5,500 (6) Liabilities: Policyholders' account balances(5) (5,513,449) (107,528) 0 0 (413,219) 0 28,467 0 0 (6,005,729) (273,135) Three Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,048) $ 0 $ 0 $ (31,183) $ 507 $ (674) $ 0 $ 0 $ (31,435) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (1,219) 0 0 0 0 (1,219) 0 0 Other assets 25,539 0 0 0 0 19,028 0 0 0 Reinsurance recoverables 14,079 0 0 0 0 14,079 0 0 0 Separate account assets 0 0 (7) 0 0 0 0 (6) 0 Liabilities: Policyholders' account balances (107,528) 0 0 0 0 (273,135) 0 0 0 Nine Months Ended September 30, 2023(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 724 $ (38) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 686 $ (46) Corporate securities(3) 507,496 (20,639) 493,339 (39,721) 0 (104,604) 651 117,152 (9,088) 944,586 (21,842) Structured securities(4) 104,724 (7,070) 200,659 (27) 0 (1,677) 0 4,537 (110,968) 190,178 (6,965) Other assets: Fixed maturities, trading 0 18 6,250 0 0 0 707 0 (6,250) 725 18 Equity securities 28,593 (2,030) 2,531 0 0 0 15,592 0 0 44,686 (2,030) Short-term investments 16,945 2,573 3,490 0 0 (21,065) (1,359) 0 0 584 51 Other assets 141,041 33,559 107,453 0 0 (11,563) 0 0 0 270,490 21,997 Reinsurance recoverables 0 15,544 0 0 0 0 0 0 0 15,544 15,544 Separate account assets 4,645 250 1,889 (1,124) 0 (160) 0 0 0 5,500 249 Liabilities: Policyholders' account balances(5) (3,502,096) (1,355,011) 0 0 (1,251,457) 0 102,835 0 0 (6,005,729) (508,105) Nine Months Ended September 30, 2023(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,861) $ 0 $ 0 $ (26,743) $ 857 $ (2,693) $ 0 $ 0 $ (26,160) Other assets: Fixed maturities, trading 0 18 0 0 0 0 18 0 0 Equity securities 0 (2,030) 0 0 0 0 (2,030) 0 0 Short-term investments 1,857 0 0 (73) 789 0 0 0 51 Other assets 33,559 0 0 0 0 21,997 0 0 0 Reinsurance recoverables 15,544 0 0 0 0 15,544 0 0 0 Separate account assets 0 0 250 0 0 0 0 249 0 Liabilities: Policyholders' account balances (1,355,011) 0 0 0 0 (508,105) 0 0 0 Three Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 135 $ 88 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 86 Corporate securities(3) 317,878 (7,376) 66,826 (11,975) 0 (54,455) 106,408 6,259 0 423,565 (6,546) Structured securities(4) 123,288 (2,903) 28,250 0 0 (403) 0 0 (33,490) 114,742 (2,860) Other assets: Equity securities 29,783 (1,111) 0 0 0 0 0 0 0 28,672 (1,110) Short-term investments 2,772 2 0 0 0 (5,876) 7,290 0 0 4,188 0 Other assets 75,858 56,595 (24,914) 0 0 (104) 0 0 0 107,435 56,700 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,427,667) 217,837 0 0 0 (433,009) 0 0 0 (3,642,839) 843,341 Three Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 307 $ 0 $ 0 $ (9,226) $ (1,272) $ 491 $ 0 $ 0 $ (9,811) Other assets: Equity securities 0 (1,111) 0 0 0 0 (1,110) 0 0 Short-term investments 0 0 0 0 2 0 0 0 0 Other assets 56,595 0 0 0 0 56,700 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 217,837 0 0 0 0 843,341 0 0 0 Nine Months Ended September 30, 2022(6)(7) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in thousands) Fixed maturities, available-for-sale: Foreign government $ 150 $ 73 $ 501 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 724 $ 71 Corporate securities(3) 385,634 (56,596) 200,137 (24,363) 0 (87,790) 106,408 6,259 (106,124) 423,565 (53,687) Structured securities(4) 173,944 (25,231) 61,740 0 0 (1,476) 0 0 (94,235) 114,742 (25,140) Other assets: Equity securities 12,472 (3,231) 10,000 (230) 0 0 9,661 0 0 28,672 (3,249) Short-term investments 0 7 2,766 0 0 (5,930) 7,290 55 0 4,188 0 Other assets 72,937 60,932 (23,673) 0 0 (2,761) 0 0 0 107,435 63,692 Separate account assets 0 (46) 7,000 (3,000) 0 0 0 0 0 3,954 (46) Liabilities: Policyholders' account balances(5) (3,245,773) 188,287 0 0 0 (824,375) 239,022 0 0 (3,642,839) 1,272,540 Nine Months Ended September 30, 2022(6) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders' account balances Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (16,505) $ 0 $ 0 $ (64,307) $ (942) $ (13,988) $ 0 $ 0 $ (64,768) Other assets: Equity securities 0 (3,231) 0 0 0 0 (3,249) 0 0 Short-term investments 0 0 0 0 7 0 0 0 0 Other assets 60,932 0 0 0 0 63,692 0 0 0 Separate account assets 0 0 (46) 0 0 0 0 (46) 0 Liabilities: Policyholders' account balances 188,287 0 0 0 0 1,272,540 0 0 0 (1) "Other" largely represents non-cash moves related to novated variable indexed annuities under the reinsurance agreement with FLIAC. See Note 11 for more details regarding these transactions. In addition, for the prior year Policyholders' account balances 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. (2) 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. (3) Includes U.S. corporate private, foreign corporate public, foreign corporate private securities and foreign government bonds. (4) Includes asset-backed and commercial mortgage-backed securities. (5) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (6) Effective January 1, 2021, Future policy benefits previously included in “Changes in Level 3 Assets and Liabilities” are now reported as Market Risk Benefits. See Note 10 for additional information. (7) Excludes MRB assets of $2,519 million and $1,306 million and MRB liabilities of $4,371 million and $5,945 million for period ending September 30, 2023 and 2022, respectively. See Note 10 for additional information. |
Fair Value Measurements, Nonrecurring | 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). For both the three and nine months ended September 30, 2023, there were no triggering events. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Equity in earnings of operating joint venture, net of taxes Investment in joint venture $ 0 $ 0 $ 0 $ (75,000) September 30, 2023 December 31, 2022 (in thousands) Carrying value after measurement as of period end: Investment in joint venture(1) $ 0 $ 60,456 (1) Reported carrying value includes value as of the measurement period of June 30, 2022 for "Investment in joint venture". |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. September 30, 2023 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 5,093,398 $ 5,093,398 $ 5,492,869 Policy loans 0 0 1,455,484 1,455,484 1,455,484 Short-term investments 45,002 0 0 45,002 45,002 Cash and cash equivalents 560,365 139,999 0 700,364 700,364 Accrued investment income 0 308,908 0 308,908 308,908 Reinsurance recoverables 0 0 22,899 22,899 24,942 Receivables from parent and affiliates 0 87,180 0 87,180 87,180 Other assets 0 89,142 1,378,029 1,467,171 1,467,171 Total assets $ 605,367 $ 625,229 $ 7,949,810 $ 9,180,406 $ 9,581,920 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,017,396 $ 4,687,310 $ 5,704,706 $ 5,726,015 Cash collateral for loaned securities 0 184,001 0 184,001 184,001 Short-term debt to affiliates 0 297,280 0 297,280 304,317 Payables to parent and affiliates 0 31,254 0 31,254 31,254 Other liabilities 0 1,953,309 32,423 1,985,732 1,985,732 Total liabilities $ 0 $ 3,483,240 $ 4,719,733 $ 8,202,973 $ 8,231,319 December 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 4,602,177 $ 4,602,177 $ 4,928,680 Policy loans 0 0 505,367 505,367 505,367 Short-term investments 26,331 0 0 26,331 26,331 Cash and cash equivalents 675,445 290,000 0 965,445 965,445 Accrued investment income 0 219,635 0 219,635 219,635 Reinsurance recoverables 0 0 25,127 25,127 27,183 Receivables from parent and affiliates 0 76,846 0 76,846 76,846 Other assets 0 94,200 730,682 824,882 824,882 Total assets $ 701,776 $ 680,681 $ 5,863,353 $ 7,245,810 $ 7,574,369 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,192,271 $ 3,141,000 $ 4,333,271 $ 4,351,945 Cash collateral for loaned securities 0 86,750 0 86,750 86,750 Short-term debt to affiliates 0 120,325 0 120,325 126,250 Long-term debt to affiliates 0 173,905 0 173,905 185,563 Payables to parent and affiliates 0 41,654 0 41,654 41,654 Other liabilities 0 1,269,615 33,250 1,302,865 1,302,866 Total liabilities $ 0 $ 2,884,520 $ 3,174,250 $ 6,058,770 $ 6,095,028 (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. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 102,251 $ 3,736,454 $ 648,837 $ 2,442,883 $ 6,930,425 Capitalization 77,409 180,239 114,860 412,902 785,410 Amortization expense (15,270) (245,590) (47,256) (90,768) (398,884) Other(1) 0 (393,385) 0 (12) (393,397) Balance, end of period $ 164,390 $ 3,277,718 $ 716,441 $ 2,765,005 $ 6,923,554 (1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 84,479 $ 3,806,733 $ 577,084 $ 2,561,011 $ 7,029,307 Capitalization 14,235 213,698 97,395 395,907 721,235 Amortization expense (10,059) (255,420) (40,383) (78,522) (384,384) Other(1) 0 0 (322) (541,429) (541,751) Balance, end of period $ 88,655 $ 3,765,011 $ 633,774 $ 2,336,967 $ 6,824,407 (1) Other includes the impact of the reinsurance agreement with Lotus Re. |
Deferred Reinsurance Losses | The following tables show a rollforward for the lines of business that contain DRL balances, along with a reconciliation to the Company's total DRL balance: Nine Months Ended September 30, 2023 Variable Annuities Term Life Total (in thousands) Balance, beginning of period $ 223,515 $ 69,378 $ 292,893 Amortization expense (22,283) (6,350) (28,633) Other (8) 0 (8) Balance, end of period $ 201,224 $ 63,028 $ 264,252 Nine Months Ended September 30, 2022 Variable Annuities Term Life Total (in thousands) Balance, beginning of period $ 254,577 $ 78,426 $ 333,003 Amortization expense (23,225) (6,841) (30,066) Other (8) 0 (8) Balance, end of period $ 231,344 $ 71,585 $ 302,929 |
Deferred Insurance Gains | The following tables show a rollforward for the lines of business that contain DRG balances, along with a reconciliation to the Company's total DRG balance: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable / Universal Life Total (in thousands) Balance, beginning of period $ 57,898 $ 0 $ 1,434,958 $ 1,492,856 Amortization (7,141) (10,265) (53,834) (71,240) Other(1) 28 277,133 0 277,161 Balance, end of period $ 50,785 $ 266,868 $ 1,381,124 $ 1,698,777 (1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable / Universal Life Total (in thousands) Balance, beginning of period $ 78,138 $ 0 $ 174,598 $ 252,736 Amortization (4,815) 0 (61,631) (66,446) Other(1) (13,803) 0 1,340,312 1,326,509 Balance, end of period $ 59,520 $ 0 $ 1,453,279 $ 1,512,799 (1) Includes $1,352 million deferred gain related to the reinsurance agreement with Lotus Re, entered into January 1, 2022. |
Deferred Sale Inducement Cost | The following table shows a rollforward of DSI balances for variable annuity products, which is the only line of business that contains a DSI balance, along with a reconciliation to the Company's total DSI balance: Nine Months Ended September 30, 2023 2022 Variable Annuities (in thousands) Balance, beginning of period $ 381,504 $ 414,619 Capitalization 2,053 751 Amortization expense (23,881) (25,546) Other (2) 0 Balance, end of period $ 359,674 $ 389,824 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Separate Account Assets | The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: September 30, 2023 December 31, 2022 (in thousands) Asset Type: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 2,439 $ 2,510 U.S. corporate securities 4,289 8,702 Foreign corporate securities 1,614 1,420 Mortgage-backed securities 177 276 Mutual funds: Equity 64,287,893 67,144,660 Fixed Income 38,483,909 38,109,374 Other 3,777,729 3,441,016 Equity securities 83,292 49,260 Other invested assets 4,958,037 5,262,178 Short-term investments 9,688 1,237 Cash and cash equivalents 2,319 30,613 Total $ 111,611,386 $ 114,051,246 |
Separate Account Liabilities | The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 91,785,448 $ 22,265,798 $ 114,051,246 Deposits 327,045 2,013,783 2,340,828 Investment performance 4,080,782 2,022,446 6,103,228 Policy charges (1,740,555) (615,562) (2,356,117) Surrenders and withdrawals (6,989,586) (249,911) (7,239,497) Benefit payments (57,037) (158,198) (215,235) Net transfers (to) from general account(1) (4,467) (1,115,178) (1,119,645) Other 8,355 38,223 46,578 Balance, end of period $ 87,409,985 $ 24,201,401 $ 111,611,386 Cash surrender value(2) $ 86,152,668 $ 21,219,141 $ 107,371,809 Nine Months Ended September 30, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 123,977,624 $ 25,820,204 $ 149,797,828 Deposits 562,208 1,699,430 2,261,638 Investment performance (26,283,957) (5,354,052) (31,638,009) Policy charges (1,929,880) (570,639) (2,500,519) Surrenders and withdrawals (6,480,743) (274,650) (6,755,393) Benefit payments (49,586) (238,873) (288,459) Net transfers (to) from general account (201,039) (170,926) (371,965) Other 9,839 29,687 39,526 Balance, end of period $ 89,604,466 $ 20,940,181 $ 110,544,647 Cash surrender value(2) $ 87,929,884 $ 18,336,152 $ 106,266,036 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability For Future Policy B_2
Liability For Future Policy Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. Nine Months Ended September 30, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 10,911,794 $ 0 $ 10,911,794 Effect of cumulative changes in discount rate assumptions, beginning of period 554,896 0 554,896 Balance at original discount rate, beginning of period 11,466,690 0 11,466,690 Effect of assumption update (790) 0 (790) Effect of actual variances from expected experience and other activity (144,504) (1,257) (145,761) Adjusted balance, beginning of period 11,321,396 (1,257) 11,320,139 Issuances 512,379 28,889 541,268 Net premiums / considerations collected (1,008,159) (27,632) (1,035,791) Interest accrual 391,662 0 391,662 Balance at original discount rate, end of period 11,217,278 0 11,217,278 Effect of cumulative changes in discount rate assumptions, end of period (939,494) 0 (939,494) Balance, end of period $ 10,277,784 $ 0 $ 10,277,784 Nine Months Ended September 30, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 17,835,251 $ 204,727 $ 18,039,978 Effect of cumulative changes in discount rate assumptions, beginning of period 962,034 24,876 986,910 Balance at original discount rate, beginning of period 18,797,285 229,603 19,026,888 Effect of assumption update (1,044) 0 (1,044) Effect of actual variances from expected experience and other activity (191,864) 6,793 (185,071) Adjusted balance, beginning of period 18,604,377 236,396 18,840,773 Issuances 512,379 28,889 541,268 Interest accrual 670,905 6,300 677,205 Benefit payments (1,019,151) (25,504) (1,044,655) Other adjustments 2,845 (84) 2,761 Balance at original discount rate, end of period 18,771,355 245,997 19,017,352 Effect of cumulative changes in discount rate assumptions, end of period (1,767,981) (34,327) (1,802,308) Balance, end of period $ 17,003,374 $ 211,670 $ 17,215,044 Other, end of period 1,838 Total balance, end of period $ 17,216,882 Nine Months Ended September 30, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 6,725,590 $ 211,670 $ 6,937,260 Flooring impact, end of period 1,773 0 1,773 Balance, end of period, post-flooring 6,727,363 211,670 6,939,033 Less: Reinsurance recoverable 6,241,505 17,097 6,258,602 Balance after reinsurance recoverable, end of period, post-flooring $ 485,858 $ 194,573 $ 680,431 Nine Months Ended September 30, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 12,485,056 $ 0 $ 12,485,056 Effect of cumulative changes in discount rate assumptions, beginning of period (1,826,120) 0 (1,826,120) Balance at original discount rate, beginning of period 10,658,936 0 10,658,936 Effect of assumption update 1,295,294 0 1,295,294 Effect of actual variances from expected experience and other activity (86,611) (1,032) (87,643) Adjusted balance, beginning of period 11,867,619 (1,032) 11,866,587 Issuances 317,058 23,787 340,845 Net premiums / considerations collected (1,000,325) (22,755) (1,023,080) Interest accrual 392,917 0 392,917 Balance at original discount rate, end of period 11,577,269 0 11,577,269 Effect of cumulative changes in discount rate assumptions, end of period (751,597) 0 (751,597) Balance, end of period $ 10,825,672 $ 0 $ 10,825,672 Nine Months Ended September 30, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 20,937,097 $ 237,065 $ 21,174,162 Effect of cumulative changes in discount rate assumptions, beginning of period (3,607,275) (16,704) (3,623,979) Balance at original discount rate, beginning of period 17,329,822 220,361 17,550,183 Effect of assumption update 1,756,995 0 1,756,995 Effect of actual variances from expected experience and other activity (171,967) (1,489) (173,456) Adjusted balance, beginning of period 18,914,850 218,872 19,133,722 Issuances 317,058 23,787 340,845 Interest accrual 664,008 5,798 669,806 Benefit payments (1,046,082) (20,263) (1,066,345) Other adjustments 3,692 (285) 3,407 Balance at original discount rate, end of period 18,853,526 227,909 19,081,435 Effect of cumulative changes in discount rate assumptions, end of period (1,370,645) (28,806) (1,399,451) Balance, end of period $ 17,482,881 $ 199,103 $ 17,681,984 Other, end of period 2,186 Total balance, end of period $ 17,684,170 Nine Months Ended September 30, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, post-flooring $ 6,657,281 $ 199,103 $ 6,856,384 Less: Reinsurance recoverable 6,293,473 16,408 6,309,881 Balance after reinsurance recoverable, end of period, post-flooring $ 363,808 $ 182,695 $ 546,503 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: Nine Months Ended September 30, 2023 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 21,914,391 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,083,578 $ 0 Discounted expected future gross premiums (at current discount rate) $ 13,840,343 $ 0 Undiscounted expected future benefits and expenses $ 29,147,479 $ 328,212 Interest accrual $ 279,242 $ 6,300 Gross premiums $ 1,351,460 $ 32,677 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 9 6 Weighted-average interest rate (at original discount rate) 5.18 % 3.62 % Weighted-average interest rate (at current discount rate) 6.02 % 5.95 % Nine Months Ended September 30, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 22,344,548 $ 0 Discounted expected future gross premiums (at original discount rate) $ 15,403,622 $ 0 Discounted expected future gross premiums (at current discount rate) $ 14,404,899 $ 0 Undiscounted expected future benefits and expenses $ 29,477,887 $ 303,385 Interest accrual $ 271,091 $ 5,798 Gross premiums $ 1,379,044 $ 25,058 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.26 % 3.55 % Weighted-average interest rate (at current discount rate) 5.67 % 5.58 % The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 18,193 $ 15,765 Effect of actual variances from expected experience and other activity (6,924) 834 Adjusted balance, beginning of period 11,269 16,599 Profits deferred 4,834 2,173 Interest accrual 423 444 Amortization (1,647) (1,424) Other adjustments (11) (25) Balance, end of period 14,868 17,767 Less: Reinsurance recoverable 1,435 1,710 Balance after reinsurance recoverable $ 13,433 $ 16,057 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Nine Months Ended September 30, 2023 2022 Fixed Annuities (in thousands) Revenue(1) $ 3,325 $ (2,002) Interest accrual 423 444 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Balance, including amounts in AOCI, beginning of period, post-flooring $ 12,664,445 $ 11,660,527 Flooring impact and amounts in AOCI 1,269,237 (896,930) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 13,933,682 10,763,597 Effect of assumption update 22,910 2,197,592 Effect of actual variances from expected experience and other activity (12,611) (215,658) Adjusted balance, beginning of period 13,943,981 12,745,531 Assessments collected(1) 828,657 738,061 Interest accrual 360,309 318,069 Benefits paid (219,784) (131,667) Balance, excluding amounts in AOCI, end of period, pre-flooring 14,913,163 13,669,994 Flooring impact and amounts in AOCI (1,714,686) (1,576,731) Balance, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Less: Reinsurance recoverable 12,979,687 11,902,756 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 218,790 $ 190,507 (1) Represents the portion of gross assessments required to fund the future policy benefits. Nine Months Ended September 30, 2023 2022 ($ in thousands) Interest accrual $ 360,309 $ 318,069 Gross assessments $ 1,168,206 $ 1,020,763 Weighted-average duration of the liability in years (at original discount rate) 22 23 Weighted-average interest rate (at original discount rate) 3.36 % 3.38 % The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated: Nine Months Ended September 30, 2023 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 6,939,033 $ 6,856,384 Deferred profit liability, end of period, post-flooring 14,868 17,767 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 13,198,477 12,093,263 Subtotal of amounts disclosed above 20,152,378 18,967,414 Other Future policy benefits reserves(1) 1,104,756 1,036,278 Total Future policy benefits $ 21,257,134 $ 20,003,692 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated: Nine Months Ended September 30, 2023 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,351,460 $ 0 $ 32,677 $ 1,384,137 Deferred profit liability 0 0 3,325 3,325 Additional insurance reserves 0 1,168,206 0 1,168,206 Total $ 1,351,460 $ 1,168,206 $ 36,002 $ 2,555,668 Nine Months Ended September 30, 2022 Revenues(1) Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 1,379,044 $ 0 $ 25,058 $ 1,404,102 Deferred profit liability 0 0 (2,002) (2,002) Additional insurance reserves 0 1,020,763 0 1,020,763 Total $ 1,379,044 $ 1,020,763 $ 23,056 $ 2,422,863 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves. Nine Months Ended September 30, 2023 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 279,242 $ 0 $ 6,300 $ 285,542 Deferred profit liability 0 0 423 423 Additional insurance reserves 0 360,309 0 360,309 Total $ 279,242 $ 360,309 $ 6,723 $ 646,274 Nine Months Ended September 30, 2022 Interest Expense Term Life Variable/ Universal Life Fixed Annuities Total (in thousands) Benefit reserves $ 271,091 $ 0 $ 5,798 $ 276,889 Deferred profit liability 0 0 444 444 Additional insurance reserves 0 318,069 0 318,069 Total $ 271,091 $ 318,069 $ 6,242 $ 595,402 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balance | The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: Nine Months Ended September 30, 2023 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,575,824 $ 16,432,032 $ 18,736,365 $ 38,744,221 Deposits 1,801,985 3,439,562 1,543,230 6,784,777 Interest credited 73,763 194,853 415,843 684,459 Policy charges (5,683) (16,564) (1,357,363) (1,379,610) Surrenders and withdrawals (161,929) (351,475) (579,913) (1,093,317) Benefit payments (37,459) (22,285) (62,055) (121,799) Net transfers (to) from separate account(1) 0 4,467 1,115,178 1,119,645 Change in market value and other adjustments(2) 81,544 1,095,144 76,107 1,252,795 Balance, end of period 5,328,045 20,775,734 19,887,392 45,991,171 Less: Reinsurance and other recoverables(3) 22,276 495,506 12,859,492 13,377,274 Policyholders' account balance net of reinsurance and other recoverables $ 5,305,769 $ 20,280,228 $ 7,027,900 $ 32,613,897 Unearned revenue reserve 3,568,084 Other 102,815 Total Policyholders' account balance $ 49,662,070 Weighted-average crediting rate 2.21 % 1.40 % 2.87 % 2.15 % Net amount at risk(4) $ 12 $ 0 $ 318,075,705 $ 318,075,717 Cash surrender value(5) $ 4,491,679 $ 17,981,713 $ 18,517,769 $ 40,991,161 (1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information. (2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders' account balances gross liability. (4) The net amount at risk calculation includes both general and separate account balances. (5) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. Nine Months Ended September 30, 2022 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 3,005,867 $ 11,465,411 $ 18,762,548 $ 33,233,826 Deposits 352,985 3,742,495 1,624,685 5,720,165 Interest credited 38,232 120,516 435,694 594,442 Policy charges (3,393) (2,343) (1,343,735) (1,349,471) Surrenders and withdrawals (44,124) (182,878) (597,867) (824,869) Benefit payments (68,319) (28,907) (76,017) (173,243) Net transfers (to) from separate account 0 201,039 170,926 371,965 Change in market value and other adjustments(1) (97,166) 559,351 (278,141) 184,044 Balance, end of period 3,184,082 15,874,684 18,698,093 37,756,859 Less: Reinsurance and other recoverables(2) 4,664 328,079 12,970,107 13,302,850 Policyholders' account balance net of reinsurance and other recoverables $ 3,179,418 $ 15,546,605 $ 5,727,986 $ 24,454,009 Unearned revenue reserve 2,896,790 Other 98,896 Total Policyholders' account balance $ 40,752,545 Weighted-average crediting rate 1.65 % 1.18 % 3.10 % 2.23 % Net amount at risk(3) $ 235 $ 0 $ 300,033,962 $ 300,034,197 Cash surrender value(4) $ 2,617,105 $ 12,395,474 $ 17,084,598 $ 32,097,177 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (3) The net amount at risk calculation includes both general and separate account balances. (4) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: September 30, 2023 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 -50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 85 $ 188 $ 430 $ 20,481 $ 21,184 1.00% - 1.99% 497,237 74,579 237,130 82,040 890,986 2.00% - 2.99% 280,760 469,123 319,721 12,466 1,082,070 3.00% - 4.00% 31,048 0 0 0 31,048 Greater than 4.00% 0 0 0 0 0 Total $ 809,130 $ 543,890 $ 557,281 $ 114,987 $ 2,025,288 Variable Annuities Less than 1.00% $ 944,205 $ 821,295 $ 18,262 $ 2 $ 1,783,764 1.00% - 1.99% 221,831 2,113 1,086 0 225,030 2.00% - 2.99% 26,319 4,332 2,979 0 33,630 3.00% - 4.00% 956,761 3,416 0 0 960,177 Greater than 4.00% 2,027 0 0 0 2,027 Total $ 2,151,143 $ 831,156 $ 22,327 $ 2 $ 3,004,628 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 217,003 $ 217,003 1.00% - 1.99% 185,341 0 2,528,250 572,113 3,285,704 2.00% - 2.99% 27,536 1,418,150 2,778,586 268,998 4,493,270 3.00% - 4.00% 4,008,791 2,241,159 1,114,429 0 7,364,379 Greater than 4.00% 2,147,756 0 0 0 2,147,756 Total $ 6,369,424 $ 3,659,309 $ 6,421,265 $ 1,058,114 $ 17,508,112 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. September 30, 2022 Range of Guaranteed Minimum Crediting Rate (1) At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 -150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 520,312 66,011 127,370 48,257 761,950 2.00% - 2.99% 212,983 0 0 0 212,983 3.00% - 4.00% 40,381 0 0 0 40,381 Greater than 4.00% 0 0 0 0 0 Total $ 773,676 $ 66,011 $ 127,370 $ 48,257 $ 1,015,314 Variable Annuities Less than 1.00% $ 1,034,346 $ 869,636 $ 18,847 $ 2 $ 1,922,831 1.00% - 1.99% 247,033 2,223 339 0 249,595 2.00% - 2.99% 29,299 63 0 0 29,362 3.00% - 4.00% 1,110,933 0 0 0 1,110,933 Greater than 4.00% 2,167 0 0 0 2,167 Total $ 2,423,778 $ 871,922 $ 19,186 $ 2 $ 3,314,888 Variable Life / Universal Life Less than 1.00% $ 14,603 $ 0 $ 0 $ 0 $ 14,603 1.00% - 1.99% 323,385 0 733,182 2,014,152 3,070,719 2.00% - 2.99% 8,479 3,540 2,405,601 2,003,691 4,421,311 3.00% - 4.00% 4,559,965 11,551 2,316,936 139,908 7,028,360 Greater than 4.00% 2,085,177 0 0 0 2,085,177 Total $ 6,991,609 $ 15,091 $ 5,455,719 $ 4,157,751 $ 16,620,170 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. |
Additional Liability, Long-Duration Insurance | : Nine Months Ended September 30, 2023 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 3,067,336 $ 2,398,788 Unearned revenue 612,196 594,026 Amortization expense (111,353) (96,077) Other adjustments (95) 53 Balance, end of period 3,568,084 2,896,790 Less: Reinsurance recoverables 1,656,299 1,498,140 Unearned revenue reserve net of reinsurance recoverables $ 1,911,785 $ 1,398,650 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: Nine Months Ended September 30, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 4,550,625 $ (422,261) $ 4,128,364 Effect of cumulative changes in non-performance risk 1,727,910 0 1,727,910 Balance, beginning of period, before effect of changes in non-performance risk 6,278,535 (422,261) 5,856,274 Attributed fees collected 878,381 (179,211) 699,170 Claims paid (62,128) 5,903 (56,225) Interest accrual 235,979 (38,016) 197,963 Actual in force different from expected 52,753 (6,588) 46,165 Effect of changes in interest rates (2,869,989) 484,168 (2,385,821) Effect of changes in equity markets (940,654) 90,742 (849,912) Effect of assumption update 330,769 (54,067) 276,702 Issuances 21,271 8,206 29,477 Other adjustments(1) (17,436) (638,198) (655,634) Effect of changes in current period counterparty non-performance risk 0 (75,594) (75,594) Balance, end of period, before effect of changes in non-performance risk 3,907,481 (824,916) 3,082,565 Effect of cumulative changes in non-performance risk (1,230,621) 0 (1,230,621) Balance, end of period $ 2,676,860 $ (824,916) $ 1,851,944 Nine Months Ended September 30, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 8,884,362 $ (906,484) $ 7,977,878 Effect of cumulative changes in non-performance risk 287,605 0 287,605 Balance, beginning of period, before effect of changes in non-performance risk 9,171,967 (906,484) 8,265,483 Attributed fees collected 958,638 (113,016) 845,622 Claims paid (36,684) 1,567 (35,117) Interest accrual 71,646 (6,801) 64,845 Actual in force different from expected 77,474 (6,817) 70,657 Effect of changes in interest rates (6,853,674) 715,370 (6,138,304) Effect of changes in equity markets 3,966,792 (416,593) 3,550,199 Effect of assumption update (160,596) 23,170 (137,426) Effect of changes in current period counterparty non-performance risk 0 226,717 226,717 Balance, end of period, before effect of changes in non-performance risk 7,195,563 (482,887) 6,712,676 Effect of cumulative changes in non-performance risk (2,073,958) 0 (2,073,958) Balance, end of period $ 5,121,605 $ (482,887) $ 4,638,718 (1) Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information. The following table presents accompanying information to the rollforward table above. September 30, 2023 September 30, 2022 Variable Annuities ($ in thousands) Net amount at risk(1) $ 12,504,440 $ 14,124,120 Weighted-average attained age of contractholders 70 69 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: September 30, 2023 September 30, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 2,519,234 $ 1,306,404 Market risk benefit liabilities 4,371,178 5,945,122 Net liability $ 1,851,944 $ 4,638,718 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 (in thousands) Reinsurance recoverables(1) $ 36,860,011 $ 37,096,562 Policy loans (1,073,903) (1,011,112) Deferred policy acquisition costs(1) (3,236,759) (3,343,270) Deferred sales inducements(1) (36,080) (38,146) Market risk benefit assets(1) 1,108,690 543,177 Other assets(1) 1,851,596 1,146,794 Policyholders’ account balances(1) 6,026,901 7,157,639 Future policy benefits(1) 6,672,884 6,320,863 Market risk benefit liabilities(1) 286,622 120,916 Other liabilities(1) 4,039,544 2,891,433 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Unaffiliated reinsurance amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Financial Position were as follows: September 30, 2023 December 31, 2022 (in thousands) Deferred policy acquisition costs(1) $ 74,341 $ 111,379 Market risk benefit assets(1) 757,038 64,738 Other assets 1,745,370 1,034,000 Policyholders’ account balances(1) 1,823,542 2,771,961 Future policy benefits 159 0 Market risk benefit liabilities(1) 149,460 40,731 Other liabilities 1,793,934 820,185 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance Recoverable by Counterparty | Reinsurance recoverables by counterparty are broken out below: September 30, 2023 December 31, 2022(1) (in thousands) PAR U $ 15,272,691 $ 15,051,337 PURC 7,169,637 6,928,950 PARCC 2,237,002 2,437,589 GUL Re 3,096,035 3,124,697 PAR Term 1,902,278 2,040,599 Prudential Insurance 1,112,606 986,013 Term Re 1,829,064 1,830,197 Lotus Re 2,034,218 1,952,215 DART 604,117 578,462 Unaffiliated 1,602,363 2,166,503 Total reinsurance recoverables $ 36,860,011 $ 37,096,562 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Premiums: Direct(1) $ 457,967 $ 462,478 $ 1,396,506 $ 1,406,822 Assumed 32 (2,653) (90) (10,730) Ceded(1) (372,859) (398,109) (1,144,655) (1,210,547) Net premiums(1) 85,140 61,716 251,761 185,545 Policy charges and fee income: Direct(1) 753,291 746,814 2,238,266 2,295,350 Assumed(1) 151,927 149,564 453,006 455,114 Ceded(1) (558,737) (526,432) (1,594,764) (1,892,583) Net policy charges and fee income(1) 346,481 369,946 1,096,508 857,881 Net investment income: Direct 463,070 226,827 1,216,154 617,818 Assumed 338 349 1,024 1,167 Ceded (2,544) (16,414) (13,789) (36,795) Net investment income 460,864 210,762 1,203,389 582,190 Asset administration fees: Direct 81,422 84,959 242,730 271,071 Assumed 0 0 0 0 Ceded (24,668) (16,405) (64,986) (51,495) Net asset administration fees 56,754 68,554 177,744 219,576 Other income (loss): Direct (89,144) (181,634) 216,247 (855,885) Assumed 116 3,059 (233) 550 Ceded(1) 25,473 17,168 70,736 60,206 Net Other income (loss)(1) (63,555) (161,407) 286,750 (795,129) Realized investment gains (losses), net: Direct(1) (492,184) (44,847) (826,822) 1,080,351 Assumed(1) (31,544) 122,364 189,400 (363,266) Ceded(1) 55,472 19,754 56,181 93,686 Realized investment gains (losses), net(1) (468,256) 97,271 (581,241) 810,771 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) (54,544) 29,320 152,660 (698,317) Assumed(1) 283 0 (3,160) 0 Ceded(1) (193,210) (109,398) (415,656) (537,098) Net change in value of market risk benefits, net of related hedging gain (loss)(1) (247,471) (80,078) (266,156) (1,235,415) Policyholders’ benefits (including change in reserves): Direct(1) 912,588 880,240 2,639,868 2,460,564 Assumed(1) 336,300 289,093 985,635 868,301 Ceded(1) (1,103,479) (1,081,648) (3,227,951) (2,961,322) Net policyholders’ benefits (including change in reserves)(1) 145,409 87,685 397,552 367,543 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in estimates of liability for future policy benefits: Direct(1) (44,155) (69,944) (61,510) 1,748,781 Assumed(1) (17,580) (12,640) 8,071 676,754 Ceded(1) 68,300 79,649 54,469 (2,382,670) Net change in estimates of liability for future policy benefits(1) 6,565 (2,935) 1,030 42,865 Interest credited to policyholders’ account balances: Direct(1) 228,399 259,175 666,947 593,160 Assumed 33,602 (52,300) 100,065 49,803 Ceded(1) (98,927) (109,226) (299,900) (324,377) Net interest credited to policyholders’ account balances(1) 163,074 97,649 467,112 318,586 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) (57,368) 146,690 (280,393) (71,962) (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Unaffiliated reinsurance assumed and ceded amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022(1) 2023 2022(1) (in thousands) Premiums: Assumed(2) $ 32 $ (2,653) $ (100) $ (16,061) Ceded(2) (13,942) (10,036) (47,319) (32,606) Policy charges and fee income: Assumed 460 1,929 1,383 13,350 Ceded (39,143) (21,196) (101,419) (59,453) Net investment income: Ceded 10,109 (4,122) 23,022 195 Asset administration fees: Ceded (7,464) 0 (15,204) 0 Other income (loss): Assumed 185 3,059 (53) 549 Ceded 7,887 1,622 17,540 1,622 Realized investment gains (losses), net: Assumed (31,544) 122,365 189,400 (159,280) Ceded(2) 41,007 19,601 40,378 92,377 Change in value of market risk benefits, net of related hedging gain (loss): Assumed(2) 283 0 (3,160) 0 Ceded(2) (70,693) (20,174) (150,791) (106,676) Policyholders’ benefits (including change in reserves): Assumed 265 587 545 1,941 Ceded(2) (42,655) (18,206) (106,475) (61,248) Change in estimates of liability for future policy benefits: Ceded (1,407) 0 (1,823) (6,594) Interest credited to policyholders’ account balances: Assumed 3,651 (83,932) 8,750 (86,713) Ceded 85 0 0 0 (1) Prior period has been reclassified to conform to the current period presentation. (2) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of September 30, 2023 and 2022 were as follows: 2023 2022 (in thousands) Direct gross life insurance face amount in force $ 1,115,174,542 $ 1,089,504,288 Assumed gross life insurance face amount in force 35,824,627 36,865,826 Reinsurance ceded (1,010,577,960) (1,010,441,444) Net life insurance face amount in force $ 140,421,209 $ 115,928,670 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2023 and 2022, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2022 $ (20,007) $ (1,474,475) $ 119,368 $ 1,365,049 $ (10,065) Change in OCI before reclassifications 431 (482,272) 73,321 (497,289) (905,809) Amounts reclassified from AOCI 0 (17,746) 0 0 (17,746) Income tax benefit (expense) (51) 105,037 (15,396) 104,431 194,021 Balance, September 30, 2023 $ (19,627) $ (1,869,456) $ 177,293 $ 972,191 $ (739,599) Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2021 $ (11,274) $ 306,331 $ (125,809) $ 227,206 $ 396,454 Change in OCI before reclassifications (11,519) (2,552,163) 346,865 1,786,353 (430,464) Amounts reclassified from AOCI 0 (55,886) 0 0 (55,886) Income tax benefit (expense) 1,357 547,513 (72,842) (375,135) 100,893 Balance, September 30, 2022 $ (21,436) $ (1,754,205) $ 148,214 $ 1,638,424 $ 10,997 (1) Includes cash flow hedges of $94 million and $40 million as of September 30, 2023 and December 31, 2022, respectively, and $228 million and $40 million as of September 30, 2022 and December 31, 2021, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 29,156 $ 68,800 $ 34,900 $ 125,212 Net unrealized investment gains (losses) on available-for-sale securities (8,931) (5,888) (17,154) (69,326) Total net unrealized investment gains (losses)(4) 20,225 62,912 17,746 55,886 Total reclassifications for the period $ 20,225 $ 62,912 $ 17,746 $ 55,886 (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) on AFS Fixed Maturity Securities wit Allowance for credit losses and All Other Investments AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on Which an Allowance for Credit Losses has been Recognized Net Unrealized Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2022 $ 4,371 $ (2,161,026) $ (1,198,422) $ 1,488,679 $ 391,923 $ (1,474,475) Net investment gains (losses) on investments arising during the period (5,723) (618,777) 0 0 131,182 (493,318) Reclassification adjustment for (gains) losses included in net income (269) (17,477) 0 0 3,731 (14,015) Reclassification due to allowance for credit losses recorded during the period 2,363 (2,363) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (432,798) 575,026 (29,876) 112,352 Balance, September 30, 2023 $ 742 $ (2,799,643) $ (1,631,220) $ 2,063,705 $ 496,960 $ (1,869,456) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at September 30, 2023 and December 31, 2022 were as follows: Maturity Dates Interest Rates September 30, 2023 December 31, 2022 (in thousands) U.S. dollar fixed rate notes 2025 - 2027 0.00% - 14.85 % $ 144,698 $ 148,076 Total notes receivable - affiliated(1) $ 144,698 $ 148,076 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Commercial Mortgage Loan | The following table sets forth the composition of “Commercial mortgage and other loans”, as of the dates indicated: September 30, 2023 December 31, 2022 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 1,450,305 26.3 % $ 1,289,026 26.0 % Hospitality 102,536 1.9 104,177 2.1 Industrial 2,097,019 38.0 1,766,247 35.8 Office 580,189 10.5 590,897 11.9 Other 410,324 7.4 380,121 7.7 Retail 364,678 6.6 351,457 7.1 Total commercial mortgage loans 5,005,051 90.7 4,481,925 90.6 Agricultural property loans 514,918 9.3 467,018 9.4 Total commercial mortgage and agricultural property loans 5,519,969 100.0 % 4,948,943 100.0 % Allowance for credit losses (27,100) (20,263) Total net commercial mortgage and agricultural property loans $ 5,492,869 $ 4,928,680 The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2023 and December 31, 2022 were as follows: Maturity Date Interest Rate September 30, 2023 December 31, 2022 (in thousands) Affiliated Commercial Mortgage Loan 2025 9.83 % $ 71,335 $ 72,225 |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the nine months ended September 30, 2023 and for the year ended December 31, 2022. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 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 Prudential Insurance July 2022 Transfer In Fixed Maturities $ 6,319 $ 7,230 $ 719 $ 0 PAR U July 2022 Purchase Fixed Maturities $ 16,284 $ 16,284 $ 0 $ 0 Prudential Insurance August 2022 Purchase Fixed Maturities $ 155,823 $ 139,712 $ (12,728) $ 0 Vantage Casualty Insurance Co September 2022 Purchase Fixed Maturities $ 3,497 $ 3,497 $ 0 $ 0 WH Warehouse Ltd October 2022 Sale Fixed Maturities $ 26,536 $ 26,388 $ 0 $ 148 PAR U November 2022 Purchase Fixed Maturities $ 91,051 $ 91,051 $ 0 $ 0 Prudential Insurance December 2022 Purchase Fixed Maturities $ 67,477 $ 71,369 $ 3,075 $ 0 Prudential Insurance January 2023 Purchase Fixed Maturities $ 48,329 $ 50,372 $ 1,614 $ 0 Prudential Insurance March 2023 Purchase Fixed Maturities $ 7,175 $ 7,500 $ 256 $ 0 PURC April 2023 Purchase Fixed Maturities $ 102,804 $ 102,804 $ 0 $ 0 Term Re June 2023 Purchase Fixed Maturities $ 115,573 $ 115,573 $ 0 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 4,298 $ 4,443 $ 114 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 4,394 $ 4,494 $ 80 $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 19,453 $ 19,203 $ (198) $ 0 Prudential Insurance June 2023 Purchase Fixed Maturities $ 14,452 $ 15,086 $ 502 $ 0 Prudential Insurance September 2023 Purchase Fixed Maturities $ 15,880 $ 15,801 $ (62) $ 0 |
Debt Agreements | The following table provides the breakout of the Company's short-term and long-term debt to affiliates as of September 30, 2023 and December 31, 2022: Affiliate Date Amount of Notes - September 30, 2023 Amount of Notes - December 31, 2022 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 94,318 $ 96,666 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 28,295 29,000 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 95,634 97,665 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 38,253 39,066 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 47,817 48,832 3.95 % 6/20/2024 Prudential Funding LLC 12/28/2022 0 138 4.73 % 1/31/2023 Prudential Funding LLC 12/29/2022 0 62 4.73 % 1/31/2023 Prudential Funding LLC 12/30/2022 0 384 4.73 % 1/31/2023 Total Loans Payable to Affiliates $ 304,317 $ 311,813 |
Business and Basis of Present_3
Business and Basis of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) subsidiary | Sep. 30, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number Of Subsidiaries | subsidiary | 1 | |||
Adoption of ASU 2018-12 for LDTI | Accounting Standards Update 2018-12 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | $ (548,806) | $ 12,740 | $ 45,368 | $ (1,283,881) |
Out of period adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | $ (73,000) | $ (72,000) |
Business and Basis of Present_4
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement For Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred policy acquisition costs | $ 6,923,554 | $ 6,930,425 | [1] | $ 6,824,407 | $ 7,029,307 | $ 2,493,082 | ||
Reinsurance recoverables | 36,860,011 | 37,096,562 | [1] | |||||
Deferred sales inducements | 359,674 | 381,504 | [1] | |||||
Income tax assets | 2,319,041 | 1,694,751 | [1] | |||||
Market risk benefits assets | 2,519,234 | 1,393,237 | [1] | 1,306,000 | ||||
Other assets | 2,029,917 | 1,331,427 | [1] | |||||
TOTAL ASSETS | 199,893,920 | 193,473,118 | ||||||
Policyholders’ account balances | 49,662,070 | 41,912,536 | [1] | 40,752,545 | ||||
Future policy benefits | 21,257,134 | 20,829,033 | [1] | 20,003,692 | ||||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | [1] | $ 5,945,000 | ||||
Other liabilities | 4,720,229 | 3,597,373 | [1] | |||||
Total liabilities | 196,077,003 | 188,436,923 | ||||||
Retained earnings / (accumulated deficit) | (941,204) | (994,154) | [1] | |||||
Accumulated other comprehensive income (loss) | (739,599) | (10,065) | [1] | |||||
Total equity | 3,816,917 | 5,036,195 | ||||||
TOTAL LIABILITIES AND EQUITY | $ 199,893,920 | 193,473,118 | ||||||
As Previously Reported | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred policy acquisition costs | 6,616,097 | $ 2,433,936 | ||||||
Reinsurance recoverables | 34,561,825 | |||||||
Deferred sales inducements | 275,574 | |||||||
Income tax assets | 1,873,740 | |||||||
Market risk benefits assets | 0 | |||||||
Other assets | 1,327,393 | |||||||
TOTAL ASSETS | 189,299,841 | |||||||
Policyholders’ account balances | 41,748,241 | |||||||
Future policy benefits | 23,204,533 | |||||||
Market risk benefit liabilities | 0 | |||||||
Other liabilities | 3,407,156 | |||||||
Total liabilities | 184,936,310 | |||||||
Retained earnings / (accumulated deficit) | (95,583) | |||||||
Accumulated other comprehensive income (loss) | (1,581,300) | |||||||
Total equity | 4,363,531 | |||||||
TOTAL LIABILITIES AND EQUITY | 189,299,841 | |||||||
Change of Effect | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred policy acquisition costs | 314,328 | 74,702 | ||||||
Reinsurance recoverables | 2,534,737 | |||||||
Deferred sales inducements | 105,930 | |||||||
Income tax assets | (178,989) | |||||||
Market risk benefits assets | 1,393,237 | |||||||
Other assets | 4,034 | |||||||
TOTAL ASSETS | 4,173,277 | |||||||
Policyholders’ account balances | 164,295 | |||||||
Future policy benefits | (2,375,500) | |||||||
Market risk benefit liabilities | 5,521,601 | |||||||
Other liabilities | 190,217 | |||||||
Total liabilities | 3,500,613 | |||||||
Retained earnings / (accumulated deficit) | (898,571) | |||||||
Accumulated other comprehensive income (loss) | 1,571,235 | |||||||
Total equity | $ 673,000 | 672,664 | $ (271,000) | |||||
TOTAL LIABILITIES AND EQUITY | $ 4,173,277 | |||||||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_5
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
REVENUES | ||||||||||
Premiums | $ 85,140 | $ 61,716 | [1] | $ 251,761 | $ 185,545 | [1] | ||||
Policy charges and fee income | 346,481 | 369,946 | [1] | 1,096,508 | 857,881 | [1] | ||||
Other income (loss) | (63,555) | (161,407) | [1] | 286,750 | (795,129) | [1] | ||||
Realized Investment gains (losses), net | (468,256) | 97,271 | [1] | (581,241) | 810,771 | [2] | ||||
Change in value of market risk benefits, net of related hedging gain (loss) | (247,471) | (80,078) | [1] | (266,156) | (1,235,415) | [2] | ||||
TOTAL REVENUES | 169,957 | 566,764 | 2,168,755 | 625,419 | ||||||
BENEFITS AND EXPENSES | ||||||||||
Policyholders' benefits | 145,409 | 87,685 | [1] | 397,552 | 367,543 | [1] | ||||
Interest credited to policyholders’ account balances | 163,074 | 97,649 | [1] | 467,112 | 318,586 | [1] | ||||
Amortization of deferred policy acquisition costs | 132,242 | 128,420 | [1] | 398,884 | 384,384 | [1] | ||||
General, administrative and other expenses | 271,473 | 243,205 | [1] | 858,809 | 795,922 | [1] | ||||
TOTAL BENEFITS AND EXPENSES | 718,763 | 554,024 | 2,123,387 | 1,909,300 | ||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 548,806 | (12,740) | (45,368) | 1,283,881 | ||||||
Income tax expense (benefit) | (104,883) | (7,660) | [1] | (8,318) | (350,214) | [1] | ||||
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (443,923) | 20,400 | 53,686 | (933,667) | ||||||
NET INCOME (LOSS) | (444,327) | $ 217,598 | $ 279,679 | 20,147 | $ (547,018) | $ (482,207) | 52,950 | (1,009,078) | [2] | |
Other comprehensive income (loss), before tax: | ||||||||||
Net unrealized investment gains (losses) | (618,892) | (790,108) | [1] | (500,018) | (2,608,049) | [1] | ||||
Interest rate remeasurement of future policy benefits | 90,909 | 97,171 | [1] | 73,321 | 346,865 | [1] | ||||
Gain (loss) from changes in non-performance risk on market risk benefits | (429,966) | (3,233) | [1] | (497,289) | 1,786,353 | [1] | ||||
Total | (960,784) | (699,819) | (923,555) | (486,350) | ||||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (201,437) | (146,711) | [1] | (194,021) | (100,893) | [1] | ||||
Other Comprehensive Income (Loss), Net of Tax | (759,347) | $ (386,891) | $ 416,704 | (553,108) | $ 101,092 | $ 66,559 | (729,534) | (385,457) | ||
Comprehensive income (loss) | $ (1,203,674) | (532,961) | $ (676,584) | (1,394,535) | ||||||
As Previously Reported | ||||||||||
REVENUES | ||||||||||
Premiums | 63,354 | 195,020 | ||||||||
Policy charges and fee income | 438,781 | 1,256,155 | ||||||||
Other income (loss) | (163,701) | (803,321) | ||||||||
Realized Investment gains (losses), net | 23,958 | 1,522,774 | ||||||||
Change in value of market risk benefits, net of related hedging gain (loss) | 0 | 0 | ||||||||
TOTAL REVENUES | 641,708 | 2,972,394 | ||||||||
BENEFITS AND EXPENSES | ||||||||||
Policyholders' benefits | 122,139 | 500,009 | ||||||||
Change in estimates of liability of future policy benefits | 0 | 0 | ||||||||
Interest credited to policyholders’ account balances | 105,170 | 391,640 | ||||||||
Amortization of deferred policy acquisition costs | 96,048 | 731,768 | ||||||||
General, administrative and other expenses | 241,370 | 795,514 | ||||||||
TOTAL BENEFITS AND EXPENSES | 564,727 | 2,418,931 | ||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (76,981) | (553,463) | ||||||||
Income tax expense (benefit) | (1,983) | 69,090 | ||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 78,964 | 484,373 | ||||||||
NET INCOME (LOSS) | 78,711 | 408,962 | ||||||||
Other comprehensive income (loss), before tax: | ||||||||||
Net unrealized investment gains (losses) | (862,220) | (2,775,879) | ||||||||
Interest rate remeasurement of future policy benefits | 0 | 0 | ||||||||
Gain (loss) from changes in non-performance risk on market risk benefits | 0 | 0 | ||||||||
Total | (865,869) | (2,787,398) | ||||||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (181,602) | (584,114) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (684,267) | (2,203,284) | ||||||||
Comprehensive income (loss) | (605,556) | (1,794,322) | ||||||||
Change of Effect | ||||||||||
REVENUES | ||||||||||
Premiums | (1,638) | (9,475) | ||||||||
Policy charges and fee income | (68,835) | (398,274) | ||||||||
Other income (loss) | 2,294 | 8,192 | ||||||||
Realized Investment gains (losses), net | 73,313 | (712,003) | ||||||||
Change in value of market risk benefits, net of related hedging gain (loss) | (80,078) | (1,235,415) | ||||||||
TOTAL REVENUES | (74,944) | (2,346,975) | ||||||||
BENEFITS AND EXPENSES | ||||||||||
Policyholders' benefits | (34,454) | (132,466) | ||||||||
Change in estimates of liability of future policy benefits | (2,935) | 42,865 | ||||||||
Interest credited to policyholders’ account balances | (7,521) | (73,054) | ||||||||
Amortization of deferred policy acquisition costs | 32,372 | (347,384) | ||||||||
General, administrative and other expenses | 1,835 | 408 | ||||||||
TOTAL BENEFITS AND EXPENSES | (10,703) | (509,631) | ||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 64,241 | 1,837,344 | ||||||||
Income tax expense (benefit) | (5,677) | (419,304) | ||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (58,564) | (1,418,040) | ||||||||
NET INCOME (LOSS) | (58,564) | (1,418,040) | ||||||||
Other comprehensive income (loss), before tax: | ||||||||||
Net unrealized investment gains (losses) | 72,112 | 167,830 | ||||||||
Interest rate remeasurement of future policy benefits | 97,171 | 346,865 | ||||||||
Gain (loss) from changes in non-performance risk on market risk benefits | (3,233) | 1,786,353 | ||||||||
Total | 166,050 | 2,301,048 | ||||||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 34,891 | 483,221 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 131,159 | 1,817,827 | ||||||||
Comprehensive income (loss) | 72,595 | 399,787 | ||||||||
Out of period adjustment | ||||||||||
BENEFITS AND EXPENSES | ||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | $ 73,000 | $ 72,000 | ||||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basic Presentation
Business and Basic Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
NET INCOME (LOSS) | $ (444,327) | $ 217,598 | $ 279,679 | $ 20,147 | $ (547,018) | $ (482,207) | $ 52,950 | $ (1,009,078) | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Policy charges and fee income | 47,830 | 89,744 | [1] | |||||||
Interest credited to policyholders’ account balances | 467,112 | 318,586 | [1] | |||||||
Realized investment (gains) losses, net | 468,256 | (97,271) | [2] | 581,241 | (810,771) | [1] | ||||
Change in value of market risk benefits, net of related hedging (gains) losses | $ 247,471 | 80,078 | [2] | 266,156 | 1,235,415 | [1] | ||||
Change in: | ||||||||||
Future policy benefits and other insurance liabilities | 1,722,582 | 3,283,649 | [1] | |||||||
Reinsurance recoverables | (447,411) | (1,936,549) | [1] | |||||||
Deferred policy acquisition costs | (386,514) | (336,285) | [1] | |||||||
Income taxes | (430,883) | (446,118) | [1] | |||||||
Other, net | 107,768 | 1,717,442 | [1],[3] | |||||||
Cash flows from (used in) operating activities | $ 1,337,477 | 1,023,461 | ||||||||
As Previously Reported | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
NET INCOME (LOSS) | 78,711 | 408,962 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Policy charges and fee income | (70,540) | |||||||||
Interest credited to policyholders’ account balances | 391,640 | |||||||||
Realized investment (gains) losses, net | (23,958) | (1,522,774) | ||||||||
Change in value of market risk benefits, net of related hedging (gains) losses | 0 | 0 | ||||||||
Change in: | ||||||||||
Future policy benefits and other insurance liabilities | 2,021,063 | |||||||||
Reinsurance recoverables | (875,612) | |||||||||
Deferred policy acquisition costs | 11,130 | |||||||||
Income taxes | (26,802) | |||||||||
Other, net | 1,768,968 | |||||||||
Cash flows from (used in) operating activities | 1,023,461 | |||||||||
Change of Effect | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
NET INCOME (LOSS) | (58,564) | (1,418,040) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Policy charges and fee income | 160,284 | |||||||||
Interest credited to policyholders’ account balances | (73,054) | |||||||||
Realized investment (gains) losses, net | (73,313) | 712,003 | ||||||||
Change in value of market risk benefits, net of related hedging (gains) losses | $ 80,078 | 1,235,415 | ||||||||
Change in: | ||||||||||
Future policy benefits and other insurance liabilities | 1,262,586 | |||||||||
Reinsurance recoverables | (1,060,937) | |||||||||
Deferred policy acquisition costs | (347,415) | |||||||||
Income taxes | (419,316) | |||||||||
Other, net | (51,526) | |||||||||
Cash flows from (used in) operating activities | $ 0 | |||||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3]Prior period has been reclassified to conform to the current period presentation. |
Business and Basis of Present_6
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Retained Earnings) (Details) - Retained Earnings $ in Thousands | Jan. 01, 2021 USD ($) |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, after transition | $ 1,167,252 |
As Previously Reported | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, prior to transition | 1,772,398 |
Change of Effect | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income | (722,837) |
Updates to certain universal life contract liabilities | (116,120) |
Other | 72,950 |
Total pre-tax adjustments | (766,007) |
Tax impacts | $ 160,861 |
Business and Basis of Present_7
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jan. 01, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | [1] | $ (10,065) | ||
Ending Balance | (739,599) | |||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | (10,065) | $ 396,454 | ||
Ending Balance | $ 880,548 | (739,599) | $ 10,997 | |
As Previously Reported | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | (1,581,300) | |||
As Previously Reported | Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | 546,128 | |||
Change of Effect | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | $ 1,571,235 | |||
Change of Effect | Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Interest rate remeasurement of future policy benefits | (196,526) | |||
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income | 722,837 | |||
Unwinding amounts related to unrealized investment gains and losses | (102,042) | |||
Change in operating joint ventures | (753) | |||
Total pre-tax adjustments | 423,516 | |||
Tax impacts | $ (89,096) | |||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_8
Business and Basis of Presentation (Schedule of Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | $ 6,923,554 | $ 6,930,425 | [1] | $ 6,824,407 | $ 7,029,307 | $ 2,493,082 | |
As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 6,616,097 | $ 2,433,936 | |||||
Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 314,328 | 74,702 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | (15,556) | ||||||
Term Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 716,441 | 648,837 | 633,774 | 577,084 | 462,099 | ||
Term Life | As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 462,098 | ||||||
Term Life | Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 0 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | 1 | ||||||
Variable/Universal Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | $ 2,765,005 | $ 2,442,883 | $ 2,336,967 | $ 2,561,011 | 2,030,983 | ||
Variable/Universal Life | As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | $ 1,971,838 | ||||||
Variable/Universal Life | Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 74,702 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | $ (15,557) | ||||||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_9
Business and Basis of Presentation (Schedule of Deferred Reinsurance) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 17,216,882 | $ 17,684,170 | ||||
Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 362,347 | |||||
As Previously Reported | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 233,678 | |||||
Unwinding amounts related to unrealized investment gains and losses | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 14,804 | |||||
Effect of change in reserve basis to market risk benefits | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 141,032 | |||||
Effect of change in SOP 03-1 reserve basis | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (27,167) | |||||
Variable Annuities | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 274,415 | |||||
Variable Annuities | As Previously Reported | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 118,579 | |||||
Variable Annuities | Unwinding amounts related to unrealized investment gains and losses | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 14,804 | |||||
Variable Annuities | Effect of change in reserve basis to market risk benefits | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 141,032 | |||||
Variable Annuities | Effect of change in SOP 03-1 reserve basis | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Term Life | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 17,003,374 | $ 17,835,251 | $ 17,482,881 | $ 20,937,097 | ||
Term Life | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 87,932 | |||||
Term Life | As Previously Reported | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 87,932 | |||||
Term Life | Unwinding amounts related to unrealized investment gains and losses | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Term Life | Effect of change in reserve basis to market risk benefits | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Term Life | Effect of change in SOP 03-1 reserve basis | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Variable/Universal Life | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 0 | |||||
Variable/Universal Life | Deferred Reinsurance Gain | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 174,259 | |||||
Variable/Universal Life | As Previously Reported | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 27,167 | |||||
Variable/Universal Life | As Previously Reported | Deferred Reinsurance Gain | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 134,213 | |||||
Variable/Universal Life | Unwinding amounts related to unrealized investment gains and losses | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Variable/Universal Life | Effect of change in reserve basis to market risk benefits | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 0 | |||||
Variable/Universal Life | Effect of change in SOP 03-1 reserve basis | Deferred Reinsurance Losses | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (27,167) | |||||
Variable/Universal Life | Effect of change in SOP 03-1 reserve basis | Deferred Reinsurance Gain | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | $ 40,046 |
Business and Basis of Presen_10
Business and Basis of Presentation (Liability for Future Policy Benefit-Benefits Reserve) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | $ 17,216,882 | $ 17,684,170 | ||||
Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 8,522,254 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | 14,299,073 | |||||
Reinsurance recoverable | 13,728,627 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 570,446 | |||||
As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 8,486,563 | |||||
Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 35,691 | |||||
Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 5,776,819 | |||||
Term Life | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 18,771,355 | $ 18,797,285 | 18,853,526 | $ 17,329,822 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | 17,003,374 | $ 17,835,251 | 17,482,881 | $ 20,937,097 | ||
Reinsurance recoverable | 6,241,505 | 6,293,473 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 485,858 | $ 363,808 | ||||
Term Life | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 6,674,231 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | 9,106,241 | |||||
Reinsurance recoverable | 8,536,200 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 570,041 | |||||
Term Life | As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 6,674,490 | |||||
Term Life | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (259) | |||||
Term Life | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 2,432,010 | |||||
Life Insurance - Taiwan | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 1,635,562 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | 4,952,553 | |||||
Reinsurance recoverable | 4,952,553 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||||
Life Insurance - Taiwan | As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 1,592,329 | |||||
Life Insurance - Taiwan | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 43,233 | |||||
Life Insurance - Taiwan | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 3,316,991 | |||||
Other | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 212,461 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance after transition, at current discount rate | 240,279 | |||||
Reinsurance recoverable | 239,874 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 405 | |||||
Other | As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 219,744 | |||||
Other | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (7,283) | |||||
Other | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | $ 27,818 |
Business and Basis of Presen_11
Business and Basis of Presentation (Liability for Future Policy Benefit-Deferred Profit Liability) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 17,216,882 | $ 17,684,170 | ||
Deferred Profit Liaibility | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 52,666 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Reinsurance recoverable | 52,666 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Deferred Profit Liaibility | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 50,816 | |||
Deferred Profit Liaibility | Changes in benefit reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in benefit reserves | 1,850 | |||
Deferred Profit Liaibility | Life Insurance - Taiwan | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 42,456 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Reinsurance recoverable | 42,456 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Deferred Profit Liaibility | Life Insurance - Taiwan | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 49,127 | |||
Deferred Profit Liaibility | Life Insurance - Taiwan | Changes in benefit reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in benefit reserves | (6,671) | |||
Deferred Profit Liaibility | Other | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 10,210 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Reinsurance recoverable | 10,210 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Deferred Profit Liaibility | Other | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 1,689 | |||
Deferred Profit Liaibility | Other | Changes in benefit reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in benefit reserves | $ 8,521 |
Business and Basis of Presen_12
Business and Basis of Presentation (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 17,216,882 | $ 17,684,170 | ||
Additional insurance reserves | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 10,878,087 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 9,708,115 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 9,708,115 | |||
Amounts related to unrealized investment gains and losses after transition | 1,169,972 | |||
Reinsurance recoverable | 10,685,150 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 192,937 | |||
Additional insurance reserves | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 9,951,896 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 8,471,196 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 8,471,196 | |||
Additional insurance reserves | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (1,480,700) | |||
Additional insurance reserves | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (534,422) | |||
Additional insurance reserves | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 1,771,341 | |||
Additional insurance reserves | Variable/Universal Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 10,878,087 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 9,708,115 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 9,708,115 | |||
Amounts related to unrealized investment gains and losses after transition | 1,169,972 | |||
Reinsurance recoverable | 10,685,150 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 192,937 | |||
Additional insurance reserves | Variable/Universal Life | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 9,363,585 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 7,936,774 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 7,936,774 | |||
Additional insurance reserves | Variable/Universal Life | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (1,426,811) | |||
Additional insurance reserves | Variable/Universal Life | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 0 | |||
Additional insurance reserves | Variable/Universal Life | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 1,771,341 | |||
Additional insurance reserves | Variable Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 0 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 0 | |||
Amounts related to unrealized investment gains and losses after transition | 0 | |||
Reinsurance recoverable | 0 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Additional insurance reserves | Variable Annuities | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 588,311 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 534,422 | |||
Balance after transition, excluding amounts related to unrealized investment gains and losses | 534,422 | |||
Additional insurance reserves | Variable Annuities | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (53,889) | |||
Additional insurance reserves | Variable Annuities | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (534,422) | |||
Additional insurance reserves | Variable Annuities | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | $ 0 |
Business and Basis of Presen_13
Business and Basis of Presentation (Unearned Revenue Reserves) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 13,198,477 | $ 12,664,445 | $ 12,093,263 | $ 11,660,527 | ||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ (12,611) | $ (215,658) | ||||
Less: Reinsurance recoverables | 12,979,687 | 11,902,756 | ||||
Balance after transition, net of reinsurance recoverable | $ 218,790 | $ 190,507 | ||||
Variable/Universal Life | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 1,745,268 | |||||
Less: Reinsurance recoverables | 751,517 | |||||
Balance after transition, net of reinsurance recoverable | 993,751 | |||||
Variable/Universal Life | As Previously Reported | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 1,377,669 | |||||
Variable/Universal Life | Changes in benefit reserves | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 367,599 |
Business and Basis of Presen_14
Business and Basis of Presentation (Market Risk Benefit, Activity) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Variable Annuities | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | $ 1,851,944 | $ 4,550,625 | $ 4,638,718 | $ 8,884,362 | $ (12,032) | |
Variable Annuities | As Previously Reported | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | $ 13,227,814 | |||||
Variable Annuities | Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 534,422 | |||||
Variable Annuities | Total liability prior to transition | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 13,762,236 | |||||
Variable Annuities | Change in reserve basis to market risk benefits framework | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | (184,693) | |||||
Variable Annuities | Market risk benefits after transition, at current non-performance risk value | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 13,577,543 | |||||
Variable Annuities | Less: Reinsured market risk benefits | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 13,589,575 | |||||
Variable Annuities | Market risk benefits after transition, at contract inception non-performance risk value | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 13,577,543 | |||||
Variable Annuities | Cumulative change in non-performance risk | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 722,837 | |||||
Individual Variable | Market risk benefits after transition, at contract inception non-performance risk value | Retirement Strategies | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | $ 14,300,380 |
Business and Basis of Presen_15
Business and Basis of Presentation (Cost Of Reinsurance) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 13,198,477 | $ 12,664,445 | $ 12,093,263 | $ 11,660,527 | ||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ (12,611) | $ (215,658) | ||||
Amounts related to unrealized investment gains and losses after transition | 12,979,687 | 11,902,756 | ||||
Balance after transition | $ 218,790 | $ 190,507 | ||||
Variable/Universal Life | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 437,315 | |||||
Amounts related to unrealized investment gains and losses after transition | 191,098 | |||||
Balance after transition | 628,413 | |||||
Variable/Universal Life | As Previously Reported | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | $ 602,294 | |||||
Variable/Universal Life | Unwinding amounts related to unrealized investment gains and losses | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | (246,899) | |||||
Variable/Universal Life | Balance prior to transition, excluding amounts related to unrealized investment gains and losses | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance prior to transition | 355,395 | |||||
Variable/Universal Life | Impact from updates to certain universal life contract liabilities | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 81,920 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narratives) (Details) | Sep. 30, 2023 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2021 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 3,816,917,000 | $ 5,036,195,000 | ||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net To Gross Ratio | 1 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | |||
Minimum | Deferred profit liability | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | |||
Change of Effect | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 673,000,000 | $ 672,664,000 | $ (271,000,000) |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 26,682,558 | $ 21,311,087 |
Allowance for Credit Losses | 4,315 | 4,769 |
Fair Value | 23,798,355 | 19,025,401 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,682,558 | 21,311,087 |
Gross Unrealized Gains | 51,338 | 72,582 |
Gross Unrealized Losses | 2,931,226 | 2,353,499 |
Allowance for Credit Losses | 4,315 | 4,769 |
Fair Value | 23,798,355 | 19,025,401 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 392,452 | 354,348 |
Gross Unrealized Gains | 119 | 300 |
Gross Unrealized Losses | 99,511 | 72,856 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 293,060 | 281,792 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 794,103 | 654,884 |
Gross Unrealized Gains | 562 | 4,275 |
Gross Unrealized Losses | 62,748 | 30,959 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 731,917 | 628,200 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 341,894 | 330,967 |
Gross Unrealized Gains | 628 | 1,140 |
Gross Unrealized Losses | 75,489 | 58,640 |
Allowance for Credit Losses | 0 | 5 |
Fair Value | 267,033 | 273,462 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,141,650 | 7,414,790 |
Gross Unrealized Gains | 9,571 | 21,299 |
Gross Unrealized Losses | 1,313,950 | 992,145 |
Allowance for Credit Losses | 1,097 | 0 |
Fair Value | 8,836,174 | 6,443,944 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,958,820 | 4,140,734 |
Gross Unrealized Gains | 3,596 | 13,071 |
Gross Unrealized Losses | 427,455 | 335,205 |
Allowance for Credit Losses | 2,946 | 1,871 |
Fair Value | 4,532,015 | 3,816,729 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,883,846 | 1,539,172 |
Gross Unrealized Gains | 1,134 | 2,455 |
Gross Unrealized Losses | 190,248 | 163,384 |
Allowance for Credit Losses | 264 | 21 |
Fair Value | 1,694,468 | 1,378,222 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,802,652 | 4,338,585 |
Gross Unrealized Gains | 19,942 | 19,761 |
Gross Unrealized Losses | 622,422 | 589,153 |
Allowance for Credit Losses | 0 | 2,863 |
Fair Value | 4,200,172 | 3,766,330 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,037,295 | 1,467,955 |
Gross Unrealized Gains | 15,615 | 6,976 |
Gross Unrealized Losses | 23,202 | 32,577 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 2,029,708 | 1,442,354 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 926,653 | 727,159 |
Gross Unrealized Gains | 32 | 94 |
Gross Unrealized Losses | 93,898 | 69,101 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 832,787 | 658,152 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 403,193 | 342,493 |
Gross Unrealized Gains | 139 | 3,211 |
Gross Unrealized Losses | 22,303 | 9,479 |
Allowance for Credit Losses | 8 | 9 |
Fair Value | $ 381,021 | $ 336,216 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 8,744,794 | $ 10,575,622 |
Less than Twelve Months, Gross Unrealized Losses | 364,781 | 925,410 |
Twelve Months or More, Fair Value | 12,645,879 | 5,707,596 |
Twelve Months or More, Gross Unrealized Losses | 2,566,037 | 1,428,069 |
Total, Fair Value | 21,390,673 | 16,283,218 |
Total, Gross Unrealized Losses | 2,930,818 | 2,353,479 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 97,348 | 212,991 |
Less than Twelve Months, Gross Unrealized Losses | 3,963 | 46,928 |
Twelve Months or More, Fair Value | 191,991 | 62,630 |
Twelve Months or More, Gross Unrealized Losses | 95,548 | 25,928 |
Total, Fair Value | 289,339 | 275,621 |
Total, Gross Unrealized Losses | 99,511 | 72,856 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 448,520 | 307,734 |
Less than Twelve Months, Gross Unrealized Losses | 24,252 | 16,851 |
Twelve Months or More, Fair Value | 212,638 | 61,915 |
Twelve Months or More, Gross Unrealized Losses | 38,496 | 14,108 |
Total, Fair Value | 661,158 | 369,649 |
Total, Gross Unrealized Losses | 62,748 | 30,959 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 36,806 | 139,577 |
Less than Twelve Months, Gross Unrealized Losses | 3,030 | 19,435 |
Twelve Months or More, Fair Value | 223,995 | 111,371 |
Twelve Months or More, Gross Unrealized Losses | 72,459 | 39,205 |
Total, Fair Value | 260,801 | 250,948 |
Total, Gross Unrealized Losses | 75,489 | 58,640 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 3,555,490 | 3,873,275 |
Less than Twelve Months, Gross Unrealized Losses | 173,174 | 389,937 |
Twelve Months or More, Fair Value | 4,847,346 | 1,979,725 |
Twelve Months or More, Gross Unrealized Losses | 1,140,717 | 602,208 |
Total, Fair Value | 8,402,836 | 5,853,000 |
Total, Gross Unrealized Losses | 1,313,891 | 992,145 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 1,574,199 | 2,506,932 |
Less than Twelve Months, Gross Unrealized Losses | 66,338 | 157,853 |
Twelve Months or More, Fair Value | 2,620,568 | 948,686 |
Twelve Months or More, Gross Unrealized Losses | 361,085 | 177,352 |
Total, Fair Value | 4,194,767 | 3,455,618 |
Total, Gross Unrealized Losses | 427,423 | 335,205 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 588,547 | 548,083 |
Less than Twelve Months, Gross Unrealized Losses | 15,738 | 40,508 |
Twelve Months or More, Fair Value | 951,916 | 596,437 |
Twelve Months or More, Gross Unrealized Losses | 174,194 | 122,856 |
Total, Fair Value | 1,540,463 | 1,144,520 |
Total, Gross Unrealized Losses | 189,932 | 163,364 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 1,426,572 | 1,772,413 |
Less than Twelve Months, Gross Unrealized Losses | 58,934 | 199,124 |
Twelve Months or More, Fair Value | 2,293,089 | 1,479,608 |
Twelve Months or More, Gross Unrealized Losses | 563,488 | 390,029 |
Total, Fair Value | 3,719,661 | 3,252,021 |
Total, Gross Unrealized Losses | 622,422 | 589,153 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 580,841 | 625,710 |
Less than Twelve Months, Gross Unrealized Losses | 7,610 | 15,146 |
Twelve Months or More, Fair Value | 599,359 | 289,581 |
Twelve Months or More, Gross Unrealized Losses | 15,592 | 17,431 |
Total, Fair Value | 1,180,200 | 915,291 |
Total, Gross Unrealized Losses | 23,202 | 32,577 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 177,533 | 459,186 |
Less than Twelve Months, Gross Unrealized Losses | 3,454 | 30,408 |
Twelve Months or More, Fair Value | 584,984 | 176,349 |
Twelve Months or More, Gross Unrealized Losses | 90,444 | 38,693 |
Total, Fair Value | 762,517 | 635,535 |
Total, Gross Unrealized Losses | 93,898 | 69,101 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 258,938 | 129,721 |
Less than Twelve Months, Gross Unrealized Losses | 8,288 | 9,220 |
Twelve Months or More, Fair Value | 119,993 | 1,294 |
Twelve Months or More, Gross Unrealized Losses | 14,014 | 259 |
Total, Fair Value | 378,931 | 131,015 |
Total, Gross Unrealized Losses | $ 22,302 | $ 9,479 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||||
Loans acquired | $ 0 | $ 0 | $ 0 | $ 27,600 | |
Loans sold | 0 | 0 | 0 | 24,800 | |
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 | $ 2,930,818 | 2,930,818 | 2,353,479 | ||
Twelve Months or More, Gross Unrealized Losses | 2,566,037 | 2,566,037 | 1,428,069 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 2,754,100 | 2,754,100 | 2,164,100 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 176,700 | $ 176,700 | 189,400 | ||
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 29% | 29% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 12% | 12% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 5% | 5% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 9% | 9% | |||
Mexico | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 2% | 2% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 1% | 1% | |||
Other Income | Fixed maturities | Trading | |||||
Schedule of Investments [Line Items] | |||||
Net unrealized investment gains (losses) | $ (221,600) | (194,600) | $ (179,000) | (715,100) | |
Other Income | Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Net unrealized investment gains (losses) | (10,900) | $ (10,200) | (2,800) | $ (24,300) | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Twelve Months or More, Gross Unrealized Losses | $ 2,566,000 | $ 2,566,000 | $ 1,428,100 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 753,797 | |
Due after one year through five years | 8,340,245 | |
Due after five years through ten years | 6,783,822 | |
Due after ten years | 7,437,553 | |
Amortized Cost | 26,682,558 | $ 21,311,087 |
Fair Value | ||
Due in one year or less | 735,127 | |
Due after one year through five years | 7,851,028 | |
Due after five years through ten years | 6,071,535 | |
Due after ten years | 5,897,149 | |
Fair Value | 23,798,355 | $ 19,025,401 |
Asset-backed securities | ||
Amortized Cost | ||
Debt securities, available-for-sale, maturity, without single maturity date, amortized cost | 2,037,295 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 2,029,708 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt securities, available-for-sale, maturity, without single maturity date, amortized cost | 926,653 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 832,787 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt securities, available-for-sale, maturity, without single maturity date, amortized cost | 403,193 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 381,021 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 1,096,571 | $ 1,511,002 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 151,383 | $ 377,344 | 280,064 | 1,055,433 |
Proceeds from maturities/prepayments | 318,188 | 222,454 | 806,521 | 453,241 |
Gross investment gains from sales and maturities | 1,377 | (2,527) | 10,826 | (3,885) |
Gross investment losses from sales and maturities | (10,920) | (2,371) | (28,445) | (44,274) |
Write-downs recognized in earnings | 4 | (1,088) | 11 | (20,604) |
(Addition to) release of allowance for credit losses | $ 608 | $ 98 | 454 | (563) |
Noncash or part noncash divestiture, amount of consideration received | $ 10,000 | $ 2,300 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities - Available-for-sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | $ 4,923 | $ 4,810 | $ 4,769 | $ 4,149 |
Additions to allowance for credit losses not previously recorded | 374 | 541 | 3,539 | 13,032 |
Reductions for securities sold during the period | (1,280) | (113) | (5,055) | (1,319) |
Reductions for securities with intent to sell | 0 | 0 | 0 | (16,990) |
Additions (reductions) on securities with previous allowance | 298 | (526) | 1,062 | 5,840 |
Balance, end of period | 4,315 | 4,712 | 4,315 | 4,712 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | 0 | 0 |
Additions (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 | 0 | 116 | 5 | 11 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 329 |
Reductions for securities sold during the period | 0 | (92) | (1) | (96) |
Reductions for securities with intent to sell | 0 | 0 | 0 | (324) |
Additions (reductions) on securities with previous allowance | 0 | (14) | (4) | 90 |
Balance, end of period | 0 | 10 | 0 | 10 |
U.S. and Foreign Corporate Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 4,917 | 4,694 | 4,755 | 4,138 |
Additions to allowance for credit losses not previously recorded | 374 | 534 | 3,539 | 12,696 |
Reductions for securities sold during the period | (1,280) | (21) | (5,054) | (1,223) |
Reductions for securities with intent to sell | 0 | 0 | 0 | (16,666) |
Additions (reductions) on securities with previous allowance | 296 | (512) | 1,067 | 5,750 |
Balance, end of period | 4,307 | 4,695 | 4,307 | 4,695 |
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | 0 | 0 |
Additions (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 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | 0 | 0 |
Additions (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 | 6 | 0 | 9 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 7 | 0 | 7 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | 0 | 0 |
Additions (reductions) on securities with previous allowance | 2 | 0 | (1) | 0 |
Balance, end of period | $ 8 | $ 7 | $ 8 | $ 7 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 5,519,969 | $ 4,948,943 |
Commercial mortgage loans, Percentage | 100% | 100% |
Allowance for Credit Losses | $ (27,100) | $ (20,263) |
Commercial Mortgage Loans | 5,492,869 | 4,928,680 |
Commercial Mortgage and Agricultural Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial Mortgage Loans | 5,492,869 | 4,928,680 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,450,305 | $ 1,289,026 |
Commercial mortgage loans, Percentage | 26.30% | 26% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 102,536 | $ 104,177 |
Commercial mortgage loans, Percentage | 1.90% | 2.10% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,097,019 | $ 1,766,247 |
Commercial mortgage loans, Percentage | 38% | 35.80% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 580,189 | $ 590,897 |
Commercial mortgage loans, Percentage | 10.50% | 11.90% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 410,324 | $ 380,121 |
Commercial mortgage loans, Percentage | 7.40% | 7.70% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 364,678 | $ 351,457 |
Commercial mortgage loans, Percentage | 6.60% | 7.10% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 5,005,051 | $ 4,481,925 |
Commercial mortgage loans, Percentage | 90.70% | 90.60% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 514,918 | $ 467,018 |
Commercial mortgage loans, Percentage | 9.30% | 9.40% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | $ 22,093 | $ 9,924 | $ 20,263 | $ 5,951 |
Addition to (release of) allowance for expected losses | 5,007 | 6,208 | 6,837 | 10,181 |
Total ending balance | 27,100 | 16,132 | 27,100 | 16,132 |
Commercial mortgage loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 21,133 | 9,704 | 19,665 | 5,847 |
Addition to (release of) allowance for expected losses | 5,055 | 6,116 | 6,523 | 9,973 |
Total ending balance | 26,188 | 15,820 | 26,188 | 15,820 |
Agricultural Property Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 960 | 220 | 598 | 104 |
Addition to (release of) allowance for expected losses | (48) | 92 | 314 | 208 |
Total ending balance | $ 912 | $ 312 | $ 912 | $ 312 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 5,519,969 | $ 4,948,943 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 587,613 | 777,192 |
One Year Prior | 779,524 | 1,248,477 |
Two Year Prior | 1,254,160 | 354,746 |
Three Year Prior | 353,580 | 511,628 |
Four Year Prior | 507,014 | 265,253 |
Prior | 1,523,160 | 1,324,629 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 5,005,051 | 4,481,925 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 495,769 | 744,301 |
One Year Prior | 775,990 | 1,248,477 |
Two Year Prior | 1,254,160 | 243,325 |
Three Year Prior | 282,245 | 452,626 |
Four Year Prior | 468,051 | 258,617 |
Prior | 1,422,566 | 1,203,807 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 4,698,781 | 4,151,153 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 91,844 | 32,891 |
One Year Prior | 3,534 | 0 |
Two Year Prior | 0 | 83,655 |
Three Year Prior | 0 | 26,558 |
Four Year Prior | 23,667 | 6,636 |
Prior | 7,904 | 45,742 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 126,949 | 195,482 |
Commercial mortgage 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 | 27,766 |
Three Year Prior | 71,335 | 32,444 |
Four Year Prior | 15,296 | 0 |
Prior | 92,690 | 75,080 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 179,321 | 135,290 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 67,185 | 264,918 |
One Year Prior | 242,681 | 133,126 |
Two Year Prior | 132,028 | 25,894 |
Three Year Prior | 26,052 | 16,053 |
Four Year Prior | 15,880 | 6,327 |
Prior | 26,342 | 20,700 |
Revolving Loans | 4,750 | |
Recording investment gross of allowance for credit losses | 514,918 | 467,018 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 67,185 | 262,918 |
One Year Prior | 240,681 | 133,126 |
Two Year Prior | 132,028 | 25,894 |
Three Year Prior | 26,052 | 16,053 |
Four Year Prior | 15,880 | 6,327 |
Prior | 26,342 | 20,700 |
Revolving Loans | 4,750 | |
Recording investment gross of allowance for credit losses | 512,918 | 465,018 |
Agricultural Property Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 2,000 |
One Year Prior | 2,000 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 2,000 | 2,000 |
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 | 0 | 0 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 0 | 0 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 195,586 | 266,453 |
One Year Prior | 245,400 | 262,095 |
Two Year Prior | 454,857 | 63,558 |
Three Year Prior | 98,187 | 222,638 |
Four Year Prior | 256,820 | 201,087 |
Prior | 1,126,765 | 894,646 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 2,377,615 | 1,910,477 |
0%-59.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 27,184 | 208,708 |
One Year Prior | 186,471 | 133,126 |
Two Year Prior | 132,028 | 25,894 |
Three Year Prior | 26,052 | 16,053 |
Four Year Prior | 15,880 | 6,327 |
Prior | 26,342 | 20,700 |
Revolving Loans | 4,750 | |
Recording investment gross of allowance for credit losses | 418,707 | 410,808 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 194,755 | 344,110 |
One Year Prior | 378,576 | 681,996 |
Two Year Prior | 503,195 | 243,800 |
Three Year Prior | 180,257 | 219,593 |
Four Year Prior | 215,928 | 61,757 |
Prior | 188,358 | 305,175 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 1,661,069 | 1,856,431 |
60%-69.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 34,315 | 56,210 |
One Year Prior | 56,210 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 90,525 | 56,210 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 197,272 | 166,629 |
One Year Prior | 155,548 | 304,386 |
Two Year Prior | 222,693 | 47,388 |
Three Year Prior | 71,335 | 66,148 |
Four Year Prior | 20,950 | 2,409 |
Prior | 74,022 | 53,336 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 741,820 | 640,296 |
70%-79.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 5,686 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 5,686 | 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 | 73,415 | 0 |
Three Year Prior | 3,801 | 3,249 |
Four Year Prior | 13,316 | 0 |
Prior | 134,015 | 71,472 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 224,547 | 74,721 |
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 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 5,519,969 | $ 4,948,943 |
Non-Accrual Status | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 5,519,969 | 4,947,614 |
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 | 1,329 |
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 | 5,005,051 | 4,481,925 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 5,005,051 | 4,481,925 |
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 | 514,918 | 467,018 |
Non-Accrual Status | 0 | 0 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 514,918 | 465,689 |
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 | 1,329 |
Agricultural Loan | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 1,203,591 | $ 1,088,613 |
Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 1,168,574 | 1,040,992 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 426 | 510 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 34,591 | 47,111 |
Equity Method | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 1,103,599 | 971,993 |
Equity Method | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 340,262 | 287,969 |
Equity Method | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 670,663 | 576,595 |
Equity Method | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 92,674 | 107,429 |
Fair Value | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 64,975 | 68,999 |
Fair Value | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 56,468 | 59,146 |
Fair Value | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 194 | 396 |
Fair Value | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 8,313 | $ 9,457 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Net Investment Income | ||
Accrued investment income | $ 308,908 | $ 219,635 |
Fixed maturities | ||
Net Investment Income | ||
Accrued investment income | 258,396 | 187,628 |
Equity securities | ||
Net Investment Income | ||
Accrued investment income | 403 | 349 |
Commercial mortgage and other loans | ||
Net Investment Income | ||
Accrued investment income | 17,985 | 13,335 |
Policy loans | ||
Net Investment Income | ||
Accrued investment income | 25,416 | 14,525 |
Other invested assets | ||
Net Investment Income | ||
Accrued investment income | 43 | 48 |
Short-term investments and cash equivalents | ||
Net Investment Income | ||
Accrued investment income | $ 6,665 | $ 3,750 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 480,529 | $ 225,588 | $ 1,259,084 | $ 620,551 |
Less: investment expenses | (19,665) | (14,826) | (55,695) | (38,361) |
Net investment income | 460,864 | 210,762 | 1,203,389 | 582,190 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3,886 | 3,077 | 9,206 | 4,429 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 58,673 | 29,682 | 163,646 | 74,731 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 15,962 | 5,354 | 31,580 | 15,573 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 36,152 | 7,109 | 77,875 | 82,142 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 27,347 | 14,444 | 88,105 | 18,533 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 312,405 | 153,170 | 822,933 | 384,347 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 26,104 | $ 12,752 | $ 65,739 | $ 40,796 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | $ (468,256) | $ 97,271 | [1] | $ (581,241) | $ 810,771 | [2] |
Fixed maturities | ||||||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | (8,931) | (5,888) | (17,154) | (69,326) | ||
Commercial mortgage and other loans | ||||||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | (5,059) | (7,513) | (7,143) | (13,872) | ||
Other invested assets | ||||||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | 10,856 | (75,864) | 24,052 | (72,328) | ||
Derivatives | ||||||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | (465,176) | 186,514 | (582,846) | 966,487 | ||
Short-term investments and cash equivalents | ||||||
Schedule Of Gain Loss On Investments [Line Items] | ||||||
Realized Investment gains (losses), net | $ 54 | $ 22 | $ 1,850 | $ (190) | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ (2,798,901) | $ (2,156,655) |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 742 | 4,371 |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | (2,880,630) | (2,285,288) |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 94,460 | 138,627 |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | (12,218) | (13,189) |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ (1,255) | $ (1,176) |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 184,001 | $ 86,750 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 184,001 | 86,750 |
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 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 490 | 506 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 490 | 506 |
Foreign government bonds | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 6,879 | 7,903 |
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 | 6,879 | 7,903 |
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 | 3,362 | 12,873 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 3,362 | 12,873 |
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 | 173,270 | 65,468 |
Equity securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 173,270 | 65,468 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 259,183,785 | $ 196,977,180 |
Assets | 12,311,325 | 7,685,050 |
Liabilities | (25,816,497) | (18,654,072) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,106,980 | 1,936,568 |
Assets | 187,257 | 233,812 |
Liabilities | (18,467) | (10,778) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,172 | 3,225 |
Assets | 0 | 0 |
Liabilities | (356) | (316) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,100,808 | 1,933,343 |
Assets | 187,257 | 233,812 |
Liabilities | (18,111) | (10,462) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 257,076,805 | 195,040,612 |
Assets | 12,124,068 | 7,451,238 |
Liabilities | (25,798,030) | (18,643,294) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 160,769,460 | 138,419,110 |
Assets | 10,293,935 | 6,757,890 |
Liabilities | (22,659,077) | (17,092,749) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,557,132 | 2,425,500 |
Assets | 495 | 3,267 |
Liabilities | (5,251) | (201) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 929,085 | 364,946 |
Assets | 18,545 | 590 |
Liabilities | (6,270) | (10,423) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 144,300 | 47,450 |
Assets | 885 | 346 |
Liabilities | (316) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,332,940 | 2,289,170 |
Assets | 167,484 | 194,412 |
Liabilities | (15,371) | (14,624) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 45,258,330 | 25,187,516 |
Assets | 805,583 | 239,003 |
Liabilities | (1,363,539) | (1,112,196) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Option | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 29,418,000 | 8,368,000 |
Assets | 311,893 | 123,168 |
Liabilities | (1,404,581) | (225,125) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forward | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,104,000 | 1,104,000 |
Assets | 84,165 | 11,265 |
Liabilities | (86,244) | (12,359) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swap | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 13,759,916 | 15,958,130 |
Assets | 440,719 | 120,341 |
Liabilities | (253,318) | (175,104) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 803,642 | 876,790 |
Assets | 364 | 956 |
Liabilities | $ (4,063) | $ (513) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 12,311,325 | $ 7,685,050 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,276,734) | (7,637,939) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 34,591 | 47,111 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 34,591 | 47,111 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 140,000 | 290,000 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 140,000 | 290,000 |
Financial Instruments/Collateral | 0 | (290,000) |
Net Amount | 140,000 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 12,451,325 | 7,975,050 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,276,734) | (7,637,939) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 174,591 | 337,111 |
Financial Instruments/Collateral | 0 | (290,000) |
Net Amount | 174,591 | 47,111 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 25,816,497 | 18,654,072 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (21,871,933) | (16,568,912) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 3,944,564 | 2,085,160 |
Financial Instruments/Collateral | (3,944,564) | (2,085,160) |
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 | 25,816,497 | 18,654,072 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (21,871,933) | (16,568,912) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 3,944,564 | 2,085,160 |
Financial Instruments/Collateral | (3,944,564) | (2,085,160) |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ (465,176) | $ 186,514 | $ (579,733) | $ 966,487 |
Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (1,793,364) | (971,334) | (3,098,596) | (3,601,242) |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 10,597 | 9,729 | 33,222 | 26,311 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 19,756 | 49,112 | 2,103 | 89,698 |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (5,201) | 83,898 | (44,167) | 188,393 |
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 | (935) | 10,343 | (363) | 9,990 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
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 | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 10,597 | 9,729 | 33,222 | 26,311 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 19,494 | 48,729 | 2,041 | 88,912 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (5,201) | 83,898 | (44,167) | 188,393 |
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 | 1 | 1 | 2 | 1 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
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 | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (32) | (6) | (86) | 10 |
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 | (12) | (113) | (13) | (334) |
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 | (936) | 10,342 | (365) | 9,989 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
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 | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 10,629 | 9,735 | 33,308 | 26,301 |
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 | 19,494 | 48,729 | 2,041 | 88,912 |
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 | (5,189) | 84,011 | (44,154) | 188,727 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (464,241) | 176,171 | (579,370) | 956,497 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (1,793,364) | (971,334) | (3,098,596) | (3,601,242) |
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 | 262 | 383 | 62 | 786 |
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 | 53,990 | 140,569 | 69,702 | 623,761 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (2,059,987) | (1,204,876) | (2,767,152) | (4,984,420) |
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 | 20,401 | 19,236 | 8,375 | 39,037 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
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 | 8,059 | 79,436 | (28,263) | 192,373 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
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 | 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 | 262 | 383 | 62 | 786 |
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 | (253) | 9,495 | 2,073 | (31,954) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (449,655) | (348,314) | 694,236 | (173,413) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 266,623 | 233,542 | (331,444) | 1,383,178 |
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 | (96,783) | 275,749 | (1,325,493) | 306,693 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Market Risk Benefit, Increase (Decrease) from Equity Market Change) | ||||
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 | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Cash flow hedgers in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 138,627 |
Amount Recorded in AOCI | (9,267) |
Amounts reclassified into current period earnings | (34,900) |
Balance, ending | 94,460 |
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 | (97) |
Amounts reclassified into current period earnings | 84 |
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 | (9,170) |
Amounts reclassified into current period earnings | $ (34,984) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (5,731) | $ (3,351) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 21 | |
Credit Default Swaps Referencing Indices, Sell Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 144 | 47 |
Credit Risk Derivatives, at Fair Value, Net Asset | 1 | $ 0 |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 3 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 42 | |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 102 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | $ 23,798,355 | $ 19,025,401 | ||
Market risk benefits assets | 2,519,234 | 1,393,237 | [1] | $ 1,306,000 |
Fixed maturities, trading | 2,444,273 | 1,936,159 | ||
Equity securities | 224,397 | 143,072 | ||
Other invested assets | 1,203,591 | 1,088,613 | ||
Other assets | 2,029,917 | 1,331,427 | [1] | |
Reinsurance recoverables | 36,860,011 | 37,096,562 | [1] | |
Receivables from parent and affiliates | 231,879 | 224,921 | ||
Separate account assets | 111,611,386 | 114,051,246 | ||
TOTAL ASSETS | 199,893,920 | 193,473,118 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | [1] | $ 5,945,000 |
Payables to parent and affiliates | 3,966,688 | 2,126,571 | ||
Total liabilities | 196,077,003 | 188,436,923 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | 23,798,355 | 19,025,401 | ||
Market risk benefits assets | 2,519,234 | 1,393,237 | ||
Fixed maturities, trading | 2,444,273 | 1,936,159 | ||
Equity securities | 224,397 | 143,072 | ||
Short-term investments | 221,067 | 98,160 | ||
Cash equivalents | 1,144,914 | 1,432,182 | ||
Other invested assets | 34,591 | 47,111 | ||
Other assets | 270,490 | 141,041 | ||
Reinsurance recoverables | 15,544 | |||
Receivables from parent and affiliates | 144,699 | 148,075 | ||
Subtotal excluding separate account assets | 30,817,564 | 24,364,438 | ||
Separate account assets | 106,654,589 | 108,789,313 | ||
TOTAL ASSETS | 137,472,153 | 133,153,751 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | ||
Policyholders’ account balances | 6,005,729 | 3,502,096 | ||
Payables to parent and affiliates | 3,935,434 | 2,084,917 | ||
Other liabilities | 3,734 | (9,267) | ||
Total liabilities | 14,316,075 | 11,099,347 | ||
Assets netting | (12,276,734) | (7,637,939) | ||
Liabilities netting | (21,871,933) | (16,568,912) | ||
Netting | (9,595,000) | (8,931,000) | ||
Fair Value, Measurements, Recurring | Other invested assets | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets netting | (12,276,734) | (7,637,939) | ||
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities netting | (21,870,566) | (16,568,242) | ||
Fair Value, Measurements, Recurring | Other liabilities | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities netting | (1,367) | (670) | ||
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 | 293,060 | 281,792 | ||
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 | 731,917 | 628,200 | ||
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 | 267,033 | 273,462 | ||
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 | 8,836,174 | 6,443,944 | ||
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 | 4,532,015 | 3,816,729 | ||
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 | 1,694,468 | 1,378,222 | ||
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 | 4,200,172 | 3,766,330 | ||
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 | 2,029,708 | 1,442,354 | ||
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 | 832,787 | 658,152 | ||
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 | 381,021 | 336,216 | ||
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 | ||
Market risk benefits assets | 0 | 0 | ||
Fixed maturities, trading | 0 | 0 | ||
Equity securities | 169,378 | 108,076 | ||
Short-term investments | 19,809 | 0 | ||
Cash equivalents | 0 | 0 | ||
Other invested assets | 9,208 | 4,223 | ||
Other assets | 0 | 0 | ||
Reinsurance recoverables | 0 | |||
Receivables from parent and affiliates | 0 | 0 | ||
Subtotal excluding separate account assets | 198,395 | 112,299 | ||
Separate account assets | 130,896 | 102,243 | ||
TOTAL ASSETS | 329,291 | 214,542 | ||
Market risk benefit liabilities | 0 | 0 | ||
Policyholders’ account balances | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 10,497 | 899 | ||
Total liabilities | 10,497 | 899 | ||
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 | 22,662,905 | 18,412,457 | ||
Market risk benefits assets | 0 | 0 | ||
Fixed maturities, trading | 2,443,548 | 1,936,159 | ||
Equity securities | 10,333 | 6,403 | ||
Short-term investments | 200,674 | 81,215 | ||
Cash equivalents | 1,144,914 | 1,432,182 | ||
Other invested assets | 12,302,117 | 7,680,827 | ||
Other assets | 0 | 0 | ||
Reinsurance recoverables | 0 | |||
Receivables from parent and affiliates | 144,699 | 148,075 | ||
Subtotal excluding separate account assets | 38,909,190 | 29,697,318 | ||
Separate account assets | 106,518,193 | 108,682,425 | ||
TOTAL ASSETS | 145,427,383 | 138,379,743 | ||
Market risk benefit liabilities | 0 | 0 | ||
Policyholders’ account balances | 0 | 0 | ||
Payables to parent and affiliates | 25,806,000 | 18,653,159 | ||
Other liabilities | (5,396) | (9,496) | ||
Total liabilities | 25,800,604 | 18,643,663 | ||
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 | 293,060 | 281,792 | ||
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 | 731,917 | 628,200 | ||
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 | 266,347 | 272,738 | ||
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 | 8,836,174 | 6,443,944 | ||
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 | 4,065,855 | 3,573,269 | ||
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 | 1,687,936 | 1,371,354 | ||
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 | 3,728,278 | 3,509,162 | ||
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 | 1,916,281 | 1,421,852 | ||
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 | 756,036 | 573,930 | ||
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 | 381,021 | 336,216 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | 1,135,450 | 612,944 | ||
Market risk benefits assets | 2,519,234 | 1,393,237 | ||
Fixed maturities, trading | 725 | 0 | ||
Equity securities | 44,686 | 28,593 | ||
Short-term investments | 584 | 16,945 | ||
Cash equivalents | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Other assets | 270,490 | 141,041 | ||
Reinsurance recoverables | 15,544 | |||
Receivables from parent and affiliates | 0 | 0 | ||
Subtotal excluding separate account assets | 3,986,713 | 2,192,760 | ||
Separate account assets | 5,500 | 4,645 | ||
TOTAL ASSETS | 3,992,213 | 2,197,405 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | ||
Policyholders’ account balances | 6,005,729 | 3,502,096 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 10,376,907 | 9,023,697 | ||
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 | 686 | 724 | ||
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 | 466,160 | 243,460 | ||
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 | 6,532 | 6,868 | ||
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 | 471,894 | 257,168 | ||
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 | 113,427 | 20,502 | ||
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 | 76,751 | 84,222 | ||
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 | 65,000 | 69,000 | ||
Separate account assets | ||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value investment measured at NAV per share | $ 4,957,000 | $ 5,262,000 | ||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Corporate securities | $ 232,311 | $ 148,179 | ||
Market risk benefits assets | 2,519,234 | 1,393,237 | [1] | $ 1,306,000 |
Market risk benefit liabilities | 4,371,178 | 5,521,601 | [1] | $ 5,945,000 |
Fair Value, Measurements, Recurring | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Market risk benefits assets | 2,519,234 | 1,393,237 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | ||
Policyholders’ account balances | 6,005,729 | 3,502,096 | ||
Level 3 | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Funds held under reinsurance agreements | $ 10,000,000 | |||
Level 3 | Minimum | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Policyholder Age | 50 years | |||
Level 3 | Minimum | Market risk benefit liabilities | ||||
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] | ||||
Market risk benefits assets | $ 2,519,234 | 1,393,237 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | ||
Policyholders’ account balances | $ 6,005,729 | $ 3,502,096 | ||
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit liabilities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Lapse rate | 1% | 1% | ||
Spread over SOFR | 0.48% | 0.50% | ||
Utilization rate | 38% | 38% | ||
Withdrawal rate (greater than maximum range) | 81% | 77% | ||
Mortality rate | 0% | 0% | ||
Equity volatility curve | 15% | 18% | ||
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 SOFR | 0.48% | 0.22% | ||
Mortality rate | 0% | 0% | ||
Equity volatility curve | 6% | 6% | ||
Option budget | (1.00%) | (2.00%) | ||
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Discount rate | 8.23% | 9.77% | ||
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit assets | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Lapse rate | 1% | 1% | ||
Spread over SOFR | 0.48% | 0.50% | ||
Utilization rate | 38% | 38% | ||
Withdrawal rate (greater than maximum range) | 81% | 77% | ||
Mortality rate | 0% | 0% | ||
Equity volatility curve | 15% | 18% | ||
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
EBITDA multiples | 2.2 | |||
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Liquidation value | 63.62% | |||
Level 3 | Internal | Maximum | Discounted cash flow | Market risk benefit liabilities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Lapse rate | 20% | 20% | ||
Spread over SOFR | 2.10% | 2.20% | ||
Utilization rate | 95% | 95% | ||
Withdrawal rate (greater than maximum range) | 100% | 100% | ||
Mortality rate | 15% | 15% | ||
Equity volatility curve | 25% | 26% | ||
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Lapse rate | 80% | 80% | ||
Spread over SOFR | 2.15% | 2.26% | ||
Mortality rate | 23% | 23% | ||
Equity volatility curve | 28% | 30% | ||
Option budget | 6% | 6% | ||
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 | Discounted cash flow | Market risk benefit assets | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Lapse rate | 20% | 20% | ||
Spread over SOFR | 2.10% | 2.20% | ||
Utilization rate | 95% | 95% | ||
Withdrawal rate (greater than maximum range) | 100% | 100% | ||
Mortality rate | 15% | 15% | ||
Equity volatility curve | 25% | 26% | ||
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
EBITDA multiples | 23.5 | |||
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Liquidation value | 63.62% | |||
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Discount rate | 12.16% | 16.53% | ||
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
EBITDA multiples | 8.1 | |||
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Liquidation value | 63.62% | |||
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit liabilities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Market risk benefit liabilities | $ 4,371,178 | $ 5,521,601 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Policyholders’ account balances | 6,005,729 | 3,502,096 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Corporate securities | 726,528 | 408,494 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit assets | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||
Market risk benefits assets | $ 2,519,234 | $ 1,393,237 | ||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | [1] | |
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Market risk benefits assets | $ 2,519,234 | $ 1,306,000 | $ 2,519,234 | $ 1,306,000 | $ 1,393,237 | |
Market risk benefit liabilities | 4,371,178 | 5,945,000 | 4,371,178 | 5,945,000 | $ 5,521,601 | |
Equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair Value, beginning of period | 43,374 | 29,783 | 28,593 | 12,472 | ||
Purchases | 2,531 | 0 | 2,531 | 10,000 | ||
Sales | 0 | 0 | 0 | (230) | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 | ||
Other | 0 | 0 | 15,592 | 9,661 | ||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Fair Value, end of period | 44,686 | 28,672 | 44,686 | 28,672 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (1,219) | (1,111) | (2,030) | (3,231) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (1,219) | (1,110) | (2,030) | (3,249) | ||
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 (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (1,219) | (1,111) | (2,030) | (3,231) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (1,219) | (1,110) | (2,030) | (3,249) | ||
Equity securities | Interest credited to policyholders’ account balances | ||||||
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 | 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 | 1,209 | 2,772 | 16,945 | 0 | ||
Purchases | 802 | 0 | 3,490 | 2,766 | ||
Sales | 0 | 0 | 0 | 0 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | (1,427) | (5,876) | (21,065) | (5,930) | ||
Other | 0 | 7,290 | (1,359) | 7,290 | ||
Transfers into Level 3 | 0 | 0 | 0 | 55 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Fair Value, end of period | 584 | 4,188 | 584 | 4,188 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 2 | 2,573 | 7 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | 51 | 0 | ||
Short-term investments | Realized investment gains (losses), net | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 1,857 | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | 0 | |||
Short-term investments | Other income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | 0 | |||
Short-term investments | Interest credited to policyholders’ account balances | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | 0 | |||
Short-term investments | Included in other comprehensive income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | (73) | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 51 | 0 | |||
Short-term investments | Net investment income | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 2 | 789 | 7 | |||
Other assets | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair Value, beginning of period | 217,613 | 75,858 | 141,041 | 72,937 | ||
Purchases | 33,850 | (24,914) | 107,453 | (23,673) | ||
Sales | 0 | 0 | 0 | 0 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | (6,512) | (104) | (11,563) | (2,761) | ||
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 | 270,490 | 107,435 | 270,490 | 107,435 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 25,539 | 56,595 | 33,559 | 60,932 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 19,028 | 56,700 | 21,997 | 63,692 | ||
Other assets | Realized investment gains (losses), net | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 25,539 | 56,595 | 33,559 | 60,932 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 19,028 | 56,700 | 21,997 | 63,692 | ||
Other assets | Other 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 | Interest credited to policyholders’ account balances | ||||||
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 | 1,465 | 0 | ||||
Purchases | 0 | 0 | ||||
Sales | 0 | 0 | ||||
Issuances | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Other | 0 | 0 | ||||
Transfers into Level 3 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | ||||
Fair Value, end of period | 15,544 | 15,544 | ||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 14,079 | 15,544 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 14,079 | 15,544 | ||||
Reinsurance Recoverables | Realized investment gains (losses), net | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 14,079 | 15,544 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 14,079 | 15,544 | ||||
Reinsurance Recoverables | Other income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Reinsurance Recoverables | Interest credited to policyholders’ account balances | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Reinsurance Recoverables | Included in other comprehensive income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Reinsurance Recoverables | Net investment income | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Separate account assets | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair Value, beginning of period | 4,982 | 0 | 4,645 | 0 | ||
Purchases | 1,049 | 7,000 | 1,889 | 7,000 | ||
Sales | (524) | (3,000) | (1,124) | (3,000) | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | 0 | 0 | (160) | 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 | 5,500 | 3,954 | 5,500 | 3,954 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (7) | (46) | 250 | (46) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (6) | (46) | 249 | (46) | ||
Separate account assets | 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 | ||
Separate account assets | Other 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 | ||
Separate account assets | Interest credited to policyholders’ account balances | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (7) | (46) | 250 | (46) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (6) | (46) | 249 | (46) | ||
Separate account 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 | ||
Separate account assets | 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 | (5,513,449) | (3,427,667) | (3,502,096) | (3,245,773) | ||
Purchases | 0 | 0 | 0 | 0 | ||
Sales | 0 | 0 | 0 | 0 | ||
Issuances | (413,219) | 0 | (1,251,457) | 0 | ||
Settlements | 0 | (433,009) | 0 | (824,375) | ||
Other | 28,467 | 0 | 102,835 | 239,022 | ||
Transfers Into Level 3 | 0 | 0 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||
Fair Value, end of period | (6,005,729) | (3,642,839) | (6,005,729) | (3,642,839) | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (107,528) | 217,837 | (1,355,011) | 188,287 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (273,135) | 843,341 | (508,105) | 1,272,540 | ||
Policyholders' account balances | Realized investment gains (losses), net | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (107,528) | 217,837 | (1,355,011) | 188,287 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (273,135) | 843,341 | (508,105) | 1,272,540 | ||
Policyholders' account balances | Other 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 | Interest credited to policyholders’ account balances | ||||||
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 | (1,048) | 307 | (1,861) | (16,505) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (674) | 491 | (2,693) | (13,988) | ||
Available-for-sale | Fixed maturities | Other 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 | ||
Available-for-sale | Fixed maturities | Interest credited to policyholders’ account balances | ||||||
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 | (31,183) | (9,226) | (26,743) | (64,307) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (31,435) | (9,811) | (26,160) | (64,768) | ||
Available-for-sale | Fixed maturities | Net investment income | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 507 | (1,272) | 857 | (942) | ||
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 | 701 | 135 | 724 | 150 | ||
Purchases | 0 | 501 | 0 | 501 | ||
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 | 686 | 724 | 686 | 724 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (15) | 88 | (38) | 73 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (17) | 86 | (46) | 71 | ||
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 | 721,247 | 317,878 | 507,496 | 385,634 | ||
Purchases | 182,465 | 66,826 | 493,339 | 200,137 | ||
Sales | (10,882) | (11,975) | (39,721) | (24,363) | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | (27,762) | (54,455) | (104,604) | (87,790) | ||
Other | (708) | 106,408 | 651 | 106,408 | ||
Transfers into Level 3 | 117,152 | 6,259 | 117,152 | 6,259 | ||
Transfers out of Level 3 | (9,088) | 0 | (9,088) | (106,124) | ||
Fair Value, end of period | 944,586 | 423,565 | 944,586 | 423,565 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (27,838) | (7,376) | (20,639) | (56,596) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (28,256) | (6,546) | (21,842) | (53,687) | ||
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 | 146,339 | 123,288 | 104,724 | 173,944 | ||
Purchases | 53,352 | 28,250 | 200,659 | 61,740 | ||
Sales | 0 | 0 | (27) | 0 | ||
Issuances | 0 | 0 | 0 | 0 | ||
Settlements | (339) | (403) | (1,677) | (1,476) | ||
Other | 0 | 0 | 0 | 0 | ||
Transfers into Level 3 | 2,297 | 0 | 4,537 | 0 | ||
Transfers out of Level 3 | (7,600) | (33,490) | (110,968) | (94,235) | ||
Fair Value, end of period | 190,178 | 114,742 | 190,178 | 114,742 | ||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | (3,871) | (2,903) | (7,070) | (25,231) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | (3,836) | $ (2,860) | (6,965) | $ (25,140) | ||
Trading | Fixed maturities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair Value, beginning of period | 0 | 0 | ||||
Purchases | 0 | 6,250 | ||||
Sales | 0 | 0 | ||||
Issuances | 0 | 0 | ||||
Settlements | 0 | 0 | ||||
Other | 707 | 707 | ||||
Transfers into Level 3 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | (6,250) | ||||
Fair Value, end of period | 725 | 725 | ||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 18 | 18 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 18 | 18 | ||||
Trading | Fixed maturities | Realized investment gains (losses), net | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Trading | Fixed maturities | Other income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 18 | 18 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 18 | 18 | ||||
Trading | Fixed maturities | Interest credited to policyholders’ account balances | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | 0 | 0 | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||||
Included in earnings | 0 | 0 | ||||
Trading | Fixed maturities | Net investment income | ||||||
Total gains (losses) (realized/unrealized): | ||||||
Included in earnings | $ 0 | $ 0 | ||||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
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 Joint Venture - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity in earnings of operating joint venture, net of taxes | $ 0 | $ 0 | $ 0 | $ (75,000) | |
Carrying value after measurement as of period end | $ 0 | $ 0 | $ 60,456 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets: | |||
Policy loans | $ 1,455,484 | $ 505,367 | |
Cash and cash equivalents | 1,845,278 | 2,397,627 | |
Accrued investment income | 308,908 | 219,635 | |
Reinsurance recoverables | 36,860,011 | 37,096,562 | [1] |
Receivables from parent and affiliates | 231,879 | 224,921 | |
Liabilities [Abstract] | |||
Cash collateral for loaned securities | 184,001 | 86,750 | |
Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 5,093,398 | 4,602,177 | |
Policy loans | 1,455,484 | 505,367 | |
Short-term investments | 45,002 | 26,331 | |
Cash and cash equivalents | 700,364 | 965,445 | |
Accrued investment income | 308,908 | 219,635 | |
Reinsurance recoverables | 22,899 | 25,127 | |
Receivables from parent and affiliates | 87,180 | 76,846 | |
Other assets | 1,467,171 | 824,882 | |
Total assets | 9,180,406 | 7,245,810 | |
Liabilities [Abstract] | |||
Policyholders’ account balances - investment contracts | 5,704,706 | 4,333,271 | |
Cash collateral for loaned securities | 184,001 | 86,750 | |
Short-term debt to affiliates | 297,280 | 120,325 | |
Long-term debt to affiliates | 173,905 | ||
Payables to parent and affiliates | 31,254 | 41,654 | |
Other liabilities | 1,985,732 | 1,302,865 | |
Total liabilities | 8,202,973 | 6,058,770 | |
Carrying Amount | |||
Assets: | |||
Commercial mortgage and other loans | 5,492,869 | 4,928,680 | |
Policy loans | 1,455,484 | 505,367 | |
Short-term investments | 45,002 | 26,331 | |
Cash and cash equivalents | 700,364 | 965,445 | |
Accrued investment income | 308,908 | 219,635 | |
Reinsurance recoverables | 24,942 | 27,183 | |
Receivables from parent and affiliates | 87,180 | 76,846 | |
Other assets | 1,467,171 | 824,882 | |
Total assets | 9,581,920 | 7,574,369 | |
Liabilities [Abstract] | |||
Policyholders’ account balances - investment contracts | 5,726,015 | 4,351,945 | |
Cash collateral for loaned securities | 184,001 | 86,750 | |
Short-term debt to affiliates | 304,317 | 126,250 | |
Long-term debt to affiliates | 185,563 | ||
Payables to parent and affiliates | 31,254 | 41,654 | |
Other liabilities | 1,985,732 | 1,302,866 | |
Total liabilities | 8,231,319 | 6,095,028 | |
Level 1 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Short-term investments | 45,002 | 26,331 | |
Cash and cash equivalents | 560,365 | 675,445 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 605,367 | 701,776 | |
Liabilities [Abstract] | |||
Policyholders’ account balances - investment contracts | 0 | 0 | |
Cash collateral for loaned securities | 0 | 0 | |
Short-term debt to affiliates | 0 | 0 | |
Long-term debt to affiliates | 0 | ||
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 2 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Short-term investments | 0 | 0 | |
Cash and cash equivalents | 139,999 | 290,000 | |
Accrued investment income | 308,908 | 219,635 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 87,180 | 76,846 | |
Other assets | 89,142 | 94,200 | |
Total assets | 625,229 | 680,681 | |
Liabilities [Abstract] | |||
Policyholders’ account balances - investment contracts | 1,017,396 | 1,192,271 | |
Cash collateral for loaned securities | 184,001 | 86,750 | |
Short-term debt to affiliates | 297,280 | 120,325 | |
Long-term debt to affiliates | 173,905 | ||
Payables to parent and affiliates | 31,254 | 41,654 | |
Other liabilities | 1,953,309 | 1,269,615 | |
Total liabilities | 3,483,240 | 2,884,520 | |
Level 3 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 5,093,398 | 4,602,177 | |
Policy loans | 1,455,484 | 505,367 | |
Short-term investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 22,899 | 25,127 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 1,378,029 | 730,682 | |
Total assets | 7,949,810 | 5,863,353 | |
Liabilities [Abstract] | |||
Policyholders’ account balances - investment contracts | 4,687,310 | 3,141,000 | |
Cash collateral for loaned securities | 0 | 0 | |
Short-term debt to affiliates | 0 | 0 | |
Long-term debt to affiliates | 0 | ||
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 32,423 | 33,250 | |
Total liabilities | $ 4,719,733 | $ 3,174,250 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements (Balance of and Changes in DAC) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred Policy Acquisition Cost, Beginning Balance | $ 6,930,425 | [1] | $ 7,029,307 |
Capitalization | 785,410 | 721,235 | |
Amortization expense | (398,884) | (384,384) | |
Other | (393,397) | (541,751) | |
Balance, end of period | 6,923,554 | 6,824,407 | |
Fixed Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred Policy Acquisition Cost, Beginning Balance | 102,251 | 84,479 | |
Capitalization | 77,409 | 14,235 | |
Amortization expense | (15,270) | (10,059) | |
Other | 0 | 0 | |
Balance, end of period | 164,390 | 88,655 | |
Variable Annuities | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred Policy Acquisition Cost, Beginning Balance | 3,736,454 | 3,806,733 | |
Capitalization | 180,239 | 213,698 | |
Amortization expense | (245,590) | (255,420) | |
Other | (393,385) | 0 | |
Balance, end of period | 3,277,718 | 3,765,011 | |
Term Life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred Policy Acquisition Cost, Beginning Balance | 648,837 | 577,084 | |
Capitalization | 114,860 | 97,395 | |
Amortization expense | (47,256) | (40,383) | |
Other | 0 | (322) | |
Balance, end of period | 716,441 | 633,774 | |
Variable/Universal Life | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred Policy Acquisition Cost, Beginning Balance | 2,442,883 | 2,561,011 | |
Capitalization | 412,902 | 395,907 | |
Amortization expense | (90,768) | (78,522) | |
Other | (12) | (541,429) | |
Balance, end of period | $ 2,765,005 | $ 2,336,967 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements (Balance of and Changes in Deferred Reinsurance Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 292,893 | $ 333,003 |
Amortization expense | (28,633) | (30,066) |
Other | (8) | (8) |
Balance, end of period | 264,252 | 302,929 |
Variable Annuities | ||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 223,515 | 254,577 |
Amortization expense | (22,283) | (23,225) |
Other | (8) | (8) |
Balance, end of period | 201,224 | 231,344 |
Term Life | ||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 69,378 | 78,426 |
Amortization expense | (6,350) | (6,841) |
Other | 0 | 0 |
Balance, end of period | $ 63,028 | $ 71,585 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements (Balance of and Changes in Deferred Reinsurance Gain) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | |||
Balance, beginning of period | $ 252,736 | $ 1,492,856 | $ 252,736 |
Amortization | (71,240) | (66,446) | |
Other | 277,161 | 1,326,509 | |
Balance, end of period | 1,698,777 | 1,512,799 | |
Lotus Re | |||
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | |||
Other | 1,352,000 | ||
Fixed Annuities | |||
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | |||
Balance, beginning of period | 78,138 | 57,898 | 78,138 |
Amortization | (7,141) | (4,815) | |
Other | 28 | (13,803) | |
Balance, end of period | 50,785 | 59,520 | |
Variable Annuities | |||
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | |||
Balance, beginning of period | 0 | 0 | 0 |
Amortization | (10,265) | 0 | |
Other | 277,133 | 0 | |
Balance, end of period | 266,868 | 0 | |
Variable/Universal Life | |||
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | |||
Balance, beginning of period | $ 174,598 | 1,434,958 | 174,598 |
Amortization | (53,834) | (61,631) | |
Other | 0 | 1,340,312 | |
Balance, end of period | $ 1,381,124 | $ 1,453,279 |
Deferred Policy Acquisition C_6
Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements (Balance of and Changes in DSI) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance, beginning of period | [1] | $ 381,504 | |
Balance, end of period | 359,674 | ||
Variable Annuities | |||
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance, beginning of period | 381,504 | $ 414,619 | |
Capitalization | 2,053 | 751 | |
Amortization expense | (23,881) | (25,546) | |
Other | (2) | 0 | |
Balance, end of period | $ 359,674 | $ 389,824 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Separate Accounts (Separate Acc
Separate Accounts (Separate Account Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 111,611,386 | $ 114,051,246 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 2,439 | 2,510 |
U.S. corporate securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 4,289 | 8,702 |
Foreign corporate securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 1,614 | 1,420 |
Mortgage-backed securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 177 | 276 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 64,287,893 | 67,144,660 |
Fixed Income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 38,483,909 | 38,109,374 |
Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 3,777,729 | 3,441,016 |
Equity securities | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 83,292 | 49,260 |
Other invested assets | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 4,958,037 | 5,262,178 |
Short-term investments | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 9,688 | 1,237 |
Cash and cash equivalents | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 2,319 | $ 30,613 |
Separate Accounts (Separate A_2
Separate Accounts (Separate Account Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 114,051,246 | $ 149,797,828 |
Deposits | 2,340,828 | 2,261,638 |
Investment performance | 6,103,228 | (31,638,009) |
Policy charges | (2,356,117) | (2,500,519) |
Surrenders and withdrawals | (7,239,497) | (6,755,393) |
Benefit payments | (215,235) | (288,459) |
Net transfers (to) from separate account | (1,119,645) | (371,965) |
Other | 46,578 | 39,526 |
Balance, end of period | 111,611,386 | 110,544,647 |
Cash surrender value | 107,371,809 | 106,266,036 |
Variable Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 91,785,448 | 123,977,624 |
Deposits | 327,045 | 562,208 |
Investment performance | 4,080,782 | (26,283,957) |
Policy charges | (1,740,555) | (1,929,880) |
Surrenders and withdrawals | (6,989,586) | (6,480,743) |
Benefit payments | (57,037) | (49,586) |
Net transfers (to) from separate account | (4,467) | (201,039) |
Other | 8,355 | 9,839 |
Balance, end of period | 87,409,985 | 89,604,466 |
Cash surrender value | 86,152,668 | 87,929,884 |
Variable Life | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 22,265,798 | 25,820,204 |
Deposits | 2,013,783 | 1,699,430 |
Investment performance | 2,022,446 | (5,354,052) |
Policy charges | (615,562) | (570,639) |
Surrenders and withdrawals | (249,911) | (274,650) |
Benefit payments | (158,198) | (238,873) |
Net transfers (to) from separate account | (1,115,178) | (170,926) |
Other | 38,223 | 29,687 |
Balance, end of period | 24,201,401 | 20,940,181 |
Cash surrender value | 21,219,141 | $ 18,336,152 |
Policy loan funding to an affiliated irrevocable trust | Variable Life | ||
Separate Account, Liability [Roll Forward] | ||
Net transfers (to) from separate account | $ (900,000) |
Liability For Future Policy B_3
Liability For Future Policy Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Other adjustments | $ (6,565) | $ 2,935 | [1] | $ (1,030) | $ (42,865) | [1] | ||
Balance after transition | 17,216,882 | 17,684,170 | 17,216,882 | 17,684,170 | ||||
Balance, end of period, pre-flooring | 6,937,260 | 6,937,260 | ||||||
Flooring impact, end of period | 1,773 | 1,773 | ||||||
Balance, end of period, post flooring | 20,152,378 | 18,967,414 | 20,152,378 | 18,967,414 | ||||
Interest accrual | 360,309 | 318,069 | ||||||
Other Businesses | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance after transition | 1,838 | 2,186 | 1,838 | 2,186 | ||||
Nonparticipating Traditional And Limited-Pay Business | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Gain in net income | (35,000) | 97,000 | ||||||
Loss in net income | 34,000 | 99,000 | ||||||
Term Life | ||||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||||
Balance, beginning of period | 10,911,794 | 12,485,056 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 554,896 | (1,826,120) | ||||||
Balance at original discount rate, beginning of period | 11,466,690 | 10,658,936 | ||||||
Effect of assumption update | $ (790) | $ 1,295,294 | ||||||
Effect of actual variances from expected experience and other activity | (144,504) | (86,611) | ||||||
Adjusted balance, beginning of period | 11,321,396 | 11,867,619 | ||||||
Issuances | 512,379 | 317,058 | ||||||
Net premiums / considerations collected | (1,008,159) | (1,000,325) | ||||||
Interest accrual | 391,662 | 392,917 | ||||||
Balance at original discount rate, end of period | 11,217,278 | 11,577,269 | 11,217,278 | 11,577,269 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | (939,494) | (751,597) | (939,494) | (751,597) | ||||
Balance, end of period | 10,277,784 | 10,825,672 | 10,277,784 | 10,825,672 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance prior to transition | 17,835,251 | 20,937,097 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 962,034 | (3,607,275) | ||||||
Balance prior to transition | 18,797,285 | 17,329,822 | ||||||
Effect of assumption update | (1,044) | 1,756,995 | ||||||
Effect of actual variances from expected experience and other activity | (191,864) | (171,967) | ||||||
Adjusted balance, beginning of period | 18,604,377 | 18,914,850 | ||||||
Issuances | 512,379 | 317,058 | ||||||
Interest accrual | 670,905 | 664,008 | ||||||
Benefit payments | (1,019,151) | (1,046,082) | ||||||
Other adjustments | 2,845 | 3,692 | ||||||
Balance after transition, at original discount rate | 18,771,355 | 18,853,526 | 18,771,355 | 18,853,526 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | (1,767,981) | (1,370,645) | (1,767,981) | (1,370,645) | ||||
Balance after transition | 17,003,374 | 17,482,881 | 17,003,374 | 17,482,881 | ||||
Balance, end of period, pre-flooring | 6,725,590 | 6,725,590 | ||||||
Flooring impact, end of period | 1,773 | 1,773 | ||||||
Balance, end of period, post flooring | 6,727,363 | 6,657,281 | 6,727,363 | 6,657,281 | ||||
Reinsurance recoverable | 6,241,505 | 6,293,473 | 6,241,505 | 6,293,473 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 485,858 | 363,808 | 485,858 | 363,808 | ||||
Term Life | Gross Basis | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Undiscounted expected future gross premiums | 21,914,391 | 22,344,548 | 21,914,391 | 22,344,548 | ||||
Discounted expected future gross premiums (at original discount rate) | 15,083,578 | 15,403,622 | 15,083,578 | 15,403,622 | ||||
Discounted expected future gross premiums (at current discount rate) | 13,840,343 | 14,404,899 | 13,840,343 | 14,404,899 | ||||
Undiscounted expected future benefits and expenses | $ 29,147,479 | $ 29,477,887 | 29,147,479 | 29,477,887 | ||||
Interest accrual | 279,242 | 271,091 | ||||||
Gross Premiums | $ 1,351,460 | $ 1,379,044 | ||||||
Weighted-average duration of the liability in years (at original discount rate) | 10 years | 11 years | 10 years | 11 years | ||||
Weighted-average duration of the liability in years (at current discount rate) | 9 years | 10 years | 9 years | 10 years | ||||
Weighted-average interest rate (at original discount rate) | 5.18% | 5.26% | 5.18% | 5.26% | ||||
Weighted-average interest rate (at current discount rate) | 6.02% | 5.67% | 6.02% | 5.67% | ||||
Fixed Annuities | ||||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||||
Balance, beginning of period | $ 0 | $ 0 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 0 | 0 | ||||||
Balance at original discount rate, beginning of period | 0 | 0 | ||||||
Effect of assumption update | 0 | 0 | ||||||
Effect of actual variances from expected experience and other activity | (1,257) | (1,032) | ||||||
Issuances | 28,889 | 23,787 | ||||||
Net premiums / considerations collected | (27,632) | (22,755) | ||||||
Interest accrual | 0 | 0 | ||||||
Balance at original discount rate, end of period | $ 0 | $ 0 | 0 | 0 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | 0 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance prior to transition | 204,727 | 237,065 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 24,876 | (16,704) | ||||||
Balance prior to transition | 229,603 | 220,361 | ||||||
Effect of assumption update | 0 | 0 | ||||||
Effect of actual variances from expected experience and other activity | 6,793 | (1,489) | ||||||
Adjusted balance, beginning of period | 236,396 | 218,872 | ||||||
Issuances | 28,889 | 23,787 | ||||||
Interest accrual | 6,300 | 5,798 | ||||||
Benefit payments | (25,504) | (20,263) | ||||||
Other adjustments | (84) | (285) | ||||||
Balance after transition, at original discount rate | 245,997 | 227,909 | 245,997 | 227,909 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | (34,327) | (28,806) | (34,327) | (28,806) | ||||
Balance after transition | 211,670 | 199,103 | 211,670 | 199,103 | ||||
Balance, end of period, pre-flooring | 211,670 | 211,670 | ||||||
Flooring impact, end of period | 0 | 0 | ||||||
Balance, end of period, post flooring | 211,670 | 199,103 | 211,670 | 199,103 | ||||
Reinsurance recoverable | 17,097 | 16,408 | 17,097 | 16,408 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 194,573 | 182,695 | 194,573 | 182,695 | ||||
Fixed Annuities | Gross Basis | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Undiscounted expected future gross premiums | 0 | 0 | 0 | 0 | ||||
Discounted expected future gross premiums (at original discount rate) | 0 | 0 | 0 | 0 | ||||
Discounted expected future gross premiums (at current discount rate) | 0 | 0 | 0 | 0 | ||||
Undiscounted expected future benefits and expenses | $ 328,212 | $ 303,385 | 328,212 | 303,385 | ||||
Interest accrual | 6,300 | 5,798 | ||||||
Gross Premiums | $ 32,677 | $ 25,058 | ||||||
Weighted-average duration of the liability in years (at original discount rate) | 7 years | 7 years | 7 years | 7 years | ||||
Weighted-average duration of the liability in years (at current discount rate) | 6 years | 6 years | 6 years | 6 years | ||||
Weighted-average interest rate (at original discount rate) | 3.62% | 3.55% | 3.62% | 3.55% | ||||
Weighted-average interest rate (at current discount rate) | 5.95% | 5.58% | 5.95% | 5.58% | ||||
Fixed Annuity Netting | ||||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||||
Adjusted balance, beginning of period | $ (1,257) | $ (1,032) | ||||||
Term Life And Fixed Annuities | ||||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||||
Balance, beginning of period | 10,911,794 | 12,485,056 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 554,896 | (1,826,120) | ||||||
Balance at original discount rate, beginning of period | 11,466,690 | 10,658,936 | ||||||
Effect of assumption update | (790) | 1,295,294 | ||||||
Effect of actual variances from expected experience and other activity | (145,761) | (87,643) | ||||||
Adjusted balance, beginning of period | 11,320,139 | 11,866,587 | ||||||
Issuances | 541,268 | 340,845 | ||||||
Net premiums / considerations collected | (1,035,791) | (1,023,080) | ||||||
Interest accrual | 391,662 | 392,917 | ||||||
Balance at original discount rate, end of period | $ 11,217,278 | $ 11,577,269 | 11,217,278 | 11,577,269 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | (939,494) | (751,597) | (939,494) | (751,597) | ||||
Balance, end of period | 10,277,784 | 10,825,672 | 10,277,784 | 10,825,672 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance, end of period, post flooring | 6,939,033 | 6,856,384 | 6,939,033 | 6,856,384 | ||||
Reinsurance recoverable | 6,258,602 | 6,309,881 | 6,258,602 | 6,309,881 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 680,431 | 546,503 | 680,431 | 546,503 | ||||
Term Life And Fixed Annuities | Total | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance prior to transition | 18,039,978 | 21,174,162 | ||||||
Effect of cumulative changes in discount rate assumptions, beginning of period | 986,910 | (3,623,979) | ||||||
Balance prior to transition | 19,026,888 | 17,550,183 | ||||||
Effect of assumption update | (1,044) | 1,756,995 | ||||||
Effect of actual variances from expected experience and other activity | $ (185,071) | $ (173,456) | ||||||
Adjusted balance, beginning of period | 18,840,773 | 19,133,722 | ||||||
Issuances | 541,268 | 340,845 | ||||||
Interest accrual | 677,205 | 669,806 | ||||||
Benefit payments | (1,044,655) | (1,066,345) | ||||||
Other adjustments | 2,761 | 3,407 | ||||||
Balance after transition, at original discount rate | 19,017,352 | 19,081,435 | 19,017,352 | 19,081,435 | ||||
Effect of cumulative changes in discount rate assumptions, end of period | (1,802,308) | (1,399,451) | (1,802,308) | (1,399,451) | ||||
Balance after transition | $ 17,215,044 | $ 17,681,984 | $ 17,215,044 | $ 17,681,984 | ||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability For Future Policy B_4
Liability For Future Policy Benefits (Deferred Profit Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Other adjustments | $ (6,565) | $ 2,935 | [1] | $ (1,030) | $ (42,865) | [1] | ||
Balance, end of period | 20,152,378 | 18,967,414 | 20,152,378 | 18,967,414 | ||||
Deferred profit liability | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Revenue | 3,325 | |||||||
Deferred Profit Liability Netting | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Revenue | (2,002) | |||||||
Fixed Annuities | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Effect of actual variances from expected experience and other activity | $ 6,793 | $ (1,489) | ||||||
Adjusted balance, beginning of period | 236,396 | 218,872 | ||||||
Interest accrual | 6,300 | 5,798 | ||||||
Other adjustments | (84) | (285) | ||||||
Balance, end of period | 211,670 | 199,103 | 211,670 | 199,103 | ||||
Reinsurance recoverable | 17,097 | 16,408 | 17,097 | 16,408 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 194,573 | 182,695 | 194,573 | 182,695 | ||||
Fixed Annuities | Gross Basis | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Revenue | 32,677 | 25,058 | ||||||
Fixed Annuities | Deferred profit liability | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Balance, beginning of period | 18,193 | 15,765 | ||||||
Effect of actual variances from expected experience and other activity | (6,924) | 834 | ||||||
Adjusted balance, beginning of period | $ 11,269 | $ 16,599 | ||||||
Profits deferred | 4,834 | 2,173 | ||||||
Interest accrual | 423 | 444 | ||||||
Amortization | (1,647) | (1,424) | ||||||
Other adjustments | (11) | (25) | ||||||
Balance, end of period | 14,868 | 17,767 | 14,868 | 17,767 | ||||
Reinsurance recoverable | 1,435 | 1,710 | 1,435 | 1,710 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 13,433 | $ 16,057 | 13,433 | 16,057 | ||||
Revenue | 3,325 | |||||||
Fixed Annuities | Deferred profit liability | Gross Basis | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Interest accrual | 423 | 444 | ||||||
Fixed Annuities | Deferred Profit Liability Netting | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Revenue | (2,002) | |||||||
Fixed Annuities | Deferred Profit Liability Netting | Gross Basis | ||||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||||
Revenue | $ 3,325 | $ (2,002) | ||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability For Future Policy B_5
Liability For Future Policy Benefits (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | ||||
Balance, including amounts in AOCI, post-flooring | $ 12,664,445 | $ 11,660,527 | ||
Flooring impact and amounts in AOCI | 1,269,237 | (896,930) | ||
Balance, excluding amounts in AOCI, beginning of period, pre-flooring | 13,933,682 | 10,763,597 | ||
Effect of assumption update | $ 22,910 | $ 2,197,592 | ||
Effect of actual variances from expected experience and other activity | (12,611) | (215,658) | ||
Adjusted balance, beginning of period | $ 13,943,981 | $ 12,745,531 | ||
Assessments collected | 828,657 | 738,061 | ||
Interest accrual | 360,309 | 318,069 | ||
Benefits paid | (219,784) | (131,667) | ||
Balance, excluding amounts in AOCI, end of period, pre-flooring | 14,913,163 | 13,669,994 | ||
Flooring impact and amounts in AOCI | (1,714,686) | (1,576,731) | ||
Balance after Transition | 13,198,477 | 12,093,263 | ||
Amounts related to unrealized investment gains and losses after transition | 12,979,687 | 11,902,756 | ||
Additional Liability, Long-Duration Insurance, after Reinsurance | 218,790 | 190,507 | ||
Gross assessments | $ 1,168,206 | $ 1,020,763 | ||
Weighted-average duration of the liability in years (at original discount rate) | 22 years | 23 years | ||
Weighted-average interest rate (at original discount rate) | 3.36% | 3.38% |
Liability For Future Policy B_6
Liability For Future Policy Benefits (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | |||||
Benefit reserves, end of period, post-flooring | $ 6,939,033 | $ 6,856,384 | |||
Deferred profit liability, end of period, post-flooring | 14,868 | 17,767 | |||
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring | 13,198,477 | $ 12,664,445 | 12,093,263 | $ 11,660,527 | |
Subtotal of amounts disclosed above | 20,152,378 | 18,967,414 | |||
Other Future Policy Benefits reserves | 1,104,756 | 1,036,278 | |||
Total Future policy Benefits | $ 21,257,134 | $ 20,829,033 | [1] | $ 20,003,692 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability For Future Policy B_7
Liability For Future Policy Benefits (Revenue and Interest Expense) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Benefit Reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | $ 1,384,137 | $ 1,404,102 |
Interest expense | 285,542 | 276,889 |
Benefit Reserves | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest expense | 0 | 0 |
Benefit Reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,351,460 | 1,379,044 |
Interest expense | 279,242 | 271,091 |
Benefit Reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 32,677 | 25,058 |
Interest expense | 6,300 | 5,798 |
Additional insurance reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,168,206 | 1,020,763 |
Interest expense | 360,309 | 318,069 |
Additional insurance reserves | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,168,206 | 1,020,763 |
Interest expense | 360,309 | 318,069 |
Additional insurance reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest expense | 0 | 0 |
Additional insurance reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest expense | 0 | 0 |
Deferred profit liability | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 3,325 | |
Interest expense | 423 | 444 |
Deferred profit liability | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | |
Interest expense | 0 | 0 |
Deferred profit liability | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | |
Interest expense | 0 | 0 |
Deferred profit liability | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 3,325 | |
Interest expense | 423 | 444 |
Deferred Profit Liability Netting | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | (2,002) | |
Deferred Profit Liability Netting | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | |
Deferred Profit Liability Netting | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | |
Deferred Profit Liability Netting | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | (2,002) | |
Revenues | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 2,555,668 | 2,422,863 |
Revenues | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,168,206 | 1,020,763 |
Revenues | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,351,460 | 1,379,044 |
Revenues | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 36,002 | 23,056 |
Interest Expense | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest expense | 646,274 | 595,402 |
Interest Expense | Variable/Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest expense | 360,309 | 318,069 |
Interest Expense | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest expense | 279,242 | 271,091 |
Interest Expense | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest expense | $ 6,723 | $ 6,242 |
Policyholders' Liabilities (Det
Policyholders' Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | [1] | $ 41,912,536 | |
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 1,119,645 | $ 371,965 | |
Unearned revenue reserve | 3,568,084 | 2,896,790 | |
Other | 102,815 | 98,896 | |
Policyholder Account Balance, Total | $ 49,662,070 | $ 40,752,545 | |
Weighted-average crediting rate | 2.15% | 2.23% | |
Net amount at risk | $ 318,075,717 | $ 300,034,197 | |
Cash surrender value | 40,991,161 | 32,097,177 | |
Total | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 38,744,221 | 33,233,826 | |
Deposits | 6,784,777 | 5,720,165 | |
Interest credited | 684,459 | 594,442 | |
Policy charges | (1,379,610) | (1,349,471) | |
Surrenders and withdrawals | (1,093,317) | (824,869) | |
Benefit payments | (121,799) | (173,243) | |
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 1,119,645 | 371,965 | |
Change in market value and other adjustments | 1,252,795 | 184,044 | |
Balance, end of period | 45,991,171 | 37,756,859 | |
Reinsurance and other recoverable | 13,377,274 | 13,302,850 | |
Policyholders' account balance net of reinsurance and other recoverables | 32,613,897 | 24,454,009 | |
Policyholder Account Balance, Total | |||
Variable Annuities | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 16,432,032 | 11,465,411 | |
Deposits | 3,439,562 | 3,742,495 | |
Interest credited | 194,853 | 120,516 | |
Policy charges | (16,564) | (2,343) | |
Surrenders and withdrawals | (351,475) | (182,878) | |
Benefit payments | (22,285) | (28,907) | |
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 4,467 | 201,039 | |
Change in market value and other adjustments | 1,095,144 | 559,351 | |
Balance, end of period | 20,775,734 | 15,874,684 | |
Reinsurance and other recoverable | 495,506 | 328,079 | |
Policyholders' account balance net of reinsurance and other recoverables | 20,280,228 | 15,546,605 | |
Policyholder Account Balance, Total | $ 3,004,628 | $ 3,314,888 | |
Weighted-average crediting rate | 1.40% | 1.18% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value | 17,981,713 | 12,395,474 | |
Variable/Universal Life | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 18,736,365 | 18,762,548 | |
Deposits | 1,543,230 | 1,624,685 | |
Interest credited | 415,843 | 435,694 | |
Policy charges | (1,357,363) | (1,343,735) | |
Surrenders and withdrawals | (579,913) | (597,867) | |
Benefit payments | (62,055) | (76,017) | |
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 1,115,178 | 170,926 | |
Change in market value and other adjustments | 76,107 | (278,141) | |
Balance, end of period | 19,887,392 | 18,698,093 | |
Reinsurance and other recoverable | 12,859,492 | 12,970,107 | |
Policyholders' account balance net of reinsurance and other recoverables | 7,027,900 | 5,727,986 | |
Policyholder Account Balance, Total | $ 17,508,112 | $ 16,620,170 | |
Weighted-average crediting rate | 2.87% | 3.10% | |
Net amount at risk | $ 318,075,705 | $ 300,033,962 | |
Cash surrender value | 18,517,769 | 17,084,598 | |
Variable Life | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 1,115,178 | 170,926 | |
Fixed Annuities | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 3,575,824 | 3,005,867 | |
Deposits | 1,801,985 | 352,985 | |
Interest credited | 73,763 | 38,232 | |
Policy charges | (5,683) | (3,393) | |
Surrenders and withdrawals | (161,929) | (44,124) | |
Benefit payments | (37,459) | (68,319) | |
Transfer to (from) Policyholder Account Balance (to) from Separate Account | 0 | 0 | |
Change in market value and other adjustments | 81,544 | (97,166) | |
Balance, end of period | 5,328,045 | 3,184,082 | |
Reinsurance and other recoverable | 22,276 | 4,664 | |
Policyholders' account balance net of reinsurance and other recoverables | 5,305,769 | 3,179,418 | |
Policyholder Account Balance, Total | $ 2,025,288 | $ 1,015,314 | |
Weighted-average crediting rate | 2.21% | 1.65% | |
Net amount at risk | $ 12 | $ 235 | |
Cash surrender value | 4,491,679 | $ 2,617,105 | |
Policy loans | Variable Life | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Transfer to (from) Policyholder Account Balance (to) from Separate Account | $ 900,000 | ||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Policyholders' Liabilities (Gua
Policyholders' Liabilities (Guaranteed Minimum Crediting Rate) (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 49,662,070 | $ 41,912,536 | [1] | $ 40,752,545 | |
1 - 50 bps above guaranteed minimum | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 1 | 1 | |||
1 - 50 bps above guaranteed minimum | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 50 | 50 | |||
51 - 150 bps above guaranteed minimum | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 51 | 51 | |||
51 - 150 bps above guaranteed minimum | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 150 | 150 | |||
Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 150 | 150 | |||
Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 2,025,288 | 3,575,824 | $ 1,015,314 | $ 3,005,867 | |
Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 809,130 | 773,676 | |||
Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 543,890 | 66,011 | |||
Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 557,281 | 127,370 | |||
Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 114,987 | 48,257 | |||
Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 3,004,628 | 16,432,032 | 3,314,888 | 11,465,411 | |
Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,151,143 | 2,423,778 | |||
Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 831,156 | 871,922 | |||
Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 22,327 | 19,186 | |||
Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2 | 2 | |||
Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 17,508,112 | $ 18,736,365 | 16,620,170 | $ 18,762,548 | |
Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 6,369,424 | 6,991,609 | |||
Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 3,659,309 | 15,091 | |||
Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 6,421,265 | 5,455,719 | |||
Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 1,058,114 | $ 4,157,751 | |||
Less than 1.00% | Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
Account Values with Crediting Rates | $ 21,184 | $ 0 | |||
Less than 1.00% | Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 85 | 0 | |||
Less than 1.00% | Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 188 | 0 | |||
Less than 1.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 430 | 0 | |||
Less than 1.00% | Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 20,481 | $ 0 | |||
Less than 1.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
Account Values with Crediting Rates | $ 1,783,764 | $ 1,922,831 | |||
Less than 1.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 944,205 | 1,034,346 | |||
Less than 1.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 821,295 | 869,636 | |||
Less than 1.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 18,262 | 18,847 | |||
Less than 1.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 2 | $ 2 | |||
Less than 1.00% | Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
Account Values with Crediting Rates | $ 217,003 | $ 14,603 | |||
Less than 1.00% | Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 14,603 | |||
Less than 1.00% | Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 217,003 | 0 | |||
1.00% - 1.99% | Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 890,986 | $ 761,950 | |||
1.00% - 1.99% | Fixed Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
1.00% - 1.99% | Fixed Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |||
1.00% - 1.99% | Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 497,237 | $ 520,312 | |||
1.00% - 1.99% | Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 74,579 | 66,011 | |||
1.00% - 1.99% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 237,130 | 127,370 | |||
1.00% - 1.99% | Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 82,040 | 48,257 | |||
1.00% - 1.99% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 225,030 | $ 249,595 | |||
1.00% - 1.99% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
1.00% - 1.99% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |||
1.00% - 1.99% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 221,831 | $ 247,033 | |||
1.00% - 1.99% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,113 | 2,223 | |||
1.00% - 1.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,086 | 339 | |||
1.00% - 1.99% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
1.00% - 1.99% | Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 3,285,704 | $ 3,070,719 | |||
1.00% - 1.99% | Variable/Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
1.00% - 1.99% | Variable/Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |||
1.00% - 1.99% | Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 185,341 | $ 323,385 | |||
1.00% - 1.99% | Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
1.00% - 1.99% | Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,528,250 | 733,182 | |||
1.00% - 1.99% | Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 572,113 | 2,014,152 | |||
2.00% - 2.99% | Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 1,082,070 | $ 212,983 | |||
2.00% - 2.99% | Fixed Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |||
2.00% - 2.99% | Fixed Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |||
2.00% - 2.99% | Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 280,760 | $ 212,983 | |||
2.00% - 2.99% | Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 469,123 | 0 | |||
2.00% - 2.99% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 319,721 | 0 | |||
2.00% - 2.99% | Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 12,466 | 0 | |||
2.00% - 2.99% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 33,630 | $ 29,362 | |||
2.00% - 2.99% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |||
2.00% - 2.99% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |||
2.00% - 2.99% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 26,319 | $ 29,299 | |||
2.00% - 2.99% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 4,332 | 63 | |||
2.00% - 2.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,979 | 0 | |||
2.00% - 2.99% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
2.00% - 2.99% | Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 4,493,270 | $ 4,421,311 | |||
2.00% - 2.99% | Variable/Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |||
2.00% - 2.99% | Variable/Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |||
2.00% - 2.99% | Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 27,536 | $ 8,479 | |||
2.00% - 2.99% | Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,418,150 | 3,540 | |||
2.00% - 2.99% | Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,778,586 | 2,405,601 | |||
2.00% - 2.99% | Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 268,998 | 2,003,691 | |||
3.00% - 4.00% | Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 31,048 | $ 40,381 | |||
3.00% - 4.00% | Fixed Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |||
3.00% - 4.00% | Fixed Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
3.00% - 4.00% | Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 31,048 | $ 40,381 | |||
3.00% - 4.00% | Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 960,177 | $ 1,110,933 | |||
3.00% - 4.00% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |||
3.00% - 4.00% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
3.00% - 4.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 956,761 | $ 1,110,933 | |||
3.00% - 4.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 3,416 | 0 | |||
3.00% - 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 7,364,379 | $ 7,028,360 | |||
3.00% - 4.00% | Variable/Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |||
3.00% - 4.00% | Variable/Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
3.00% - 4.00% | Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 4,008,791 | $ 4,559,965 | |||
3.00% - 4.00% | Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,241,159 | 11,551 | |||
3.00% - 4.00% | Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,114,429 | 2,316,936 | |||
3.00% - 4.00% | Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | $ 139,908 | |||
Greater than 4.00% | Fixed Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |||
Greater than 4.00% | Fixed Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Fixed Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Fixed Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | $ 0 | |||
Greater than 4.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
Account Values with Crediting Rates | $ 2,027 | $ 2,167 | |||
Greater than 4.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,027 | 2,167 | |||
Greater than 4.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | $ 0 | |||
Greater than 4.00% | Variable/Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
Account Values with Crediting Rates | $ 2,147,756 | $ 2,085,177 | |||
Greater than 4.00% | Variable/Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 2,147,756 | 2,085,177 | |||
Greater than 4.00% | Variable/Universal Life | 1 - 50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable/Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable/Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | $ 0 | |||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Policyholders' Liabilities (Add
Policyholders' Liabilities (Additional Insurance Reserves) (Details) - Variable/Universal Life - Policyholder Contract Deposit - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Policyholder Account Balance, Unearned Revenue Reserve | $ 3,067,336 | $ 2,398,788 |
Policyholder Account Balance, Unearned Revenue Reserve, Issuance | 612,196 | 594,026 |
Policyholder Account Balance, Unearned Revenue Reserve, Amortization Expense | (111,353) | (96,077) |
Other adjustments | (95) | 53 |
Policyholder Account Balance, Unearned Revenue Reserve | 3,568,084 | 2,896,790 |
Policyholder Account Balance, Unearned Revenue Reserve, Reinsurance | 1,656,299 | 1,498,140 |
Unearned revenue reserve net of reinsurance recoverables | $ 1,911,785 | $ 1,398,650 |
Market Risk Benefits - Rollforw
Market Risk Benefits - Rollforward of Balances for Variable Annuity Products (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Variable Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ 4,550,625 | $ 8,884,362 |
Effect of cumulative changes in non-performance risk | 1,727,910 | 287,605 |
Balance, beginning of period, before effect of changes in non-performance risk | 6,278,535 | 9,171,967 |
Attributed fees collected | 878,381 | 958,638 |
Claims paid | (62,128) | (36,684) |
Interest accrual | 235,979 | 71,646 |
Actual in force different from expected | 52,753 | 77,474 |
Effect of changes in interest rates | (2,869,989) | (6,853,674) |
Effect of changes in equity markets | (940,654) | 3,966,792 |
Effect of assumption update | 330,769 | (160,596) |
Issuances | 21,271 | |
Other adjustments | (17,436) | |
Effect of changes in current period counterparty non-performance risk | 0 | 0 |
Balance, end of period, before effect of changes in non-performance risk | 3,907,481 | 7,195,563 |
Effect of cumulative changes in non-performance risk | (1,230,621) | (2,073,958) |
Balance, end of period | 2,676,860 | 5,121,605 |
Less: Reinsured Market Risk Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | (422,261) | (906,484) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, beginning of period, before effect of changes in non-performance risk | (422,261) | (906,484) |
Interest accrual | (38,016) | (6,801) |
Actual in force different from expected | (6,588) | (6,817) |
Effect of changes in interest rates | 484,168 | 715,370 |
Effect of changes in equity markets | 90,742 | (416,593) |
Effect of assumption update | (54,067) | 23,170 |
Issuances | 8,206 | |
Other adjustments | (638,198) | |
Effect of changes in current period counterparty non-performance risk | (75,594) | 226,717 |
Balance, end of period, before effect of changes in non-performance risk | (824,916) | (482,887) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, end of period | (824,916) | (482,887) |
Less: Reinsured Market Risk Benefits | Ohio National | ||
Market Risk Benefit [Roll Forward] | ||
Other adjustments | 638,000 | |
Less: Reinsured Market Risk Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Attributed fees collected | (179,211) | (113,016) |
Claims paid | 5,903 | 1,567 |
Total, Net of Reinsurance | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | 4,128,364 | 7,977,878 |
Effect of cumulative changes in non-performance risk | 1,727,910 | 287,605 |
Balance, beginning of period, before effect of changes in non-performance risk | 5,856,274 | 8,265,483 |
Attributed fees collected | 699,170 | 845,622 |
Claims paid | (56,225) | (35,117) |
Interest accrual | 197,963 | 64,845 |
Actual in force different from expected | 46,165 | 70,657 |
Effect of changes in interest rates | (2,385,821) | (6,138,304) |
Effect of changes in equity markets | (849,912) | 3,550,199 |
Effect of assumption update | 276,702 | (137,426) |
Issuances | 29,477 | |
Other adjustments | (655,634) | |
Effect of changes in current period counterparty non-performance risk | (75,594) | 226,717 |
Balance, end of period, before effect of changes in non-performance risk | 3,082,565 | 6,712,676 |
Effect of cumulative changes in non-performance risk | (1,230,621) | (2,073,958) |
Balance, end of period | $ 1,851,944 | $ 4,638,718 |
Market Risk Benefits - Market R
Market Risk Benefits - Market Risk Benefits In Asset and Liability Positions (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Market risk benefit assets | $ 2,519,234 | $ 1,306,000 | $ 1,393,237 | [1] | ||
Market risk benefit liabilities | 4,371,178 | 5,945,000 | 5,521,601 | [1] | ||
Variable Annuities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Net amount at risk | $ 12,504,440 | $ 14,124,120 | ||||
Weighted-average attained age of contractholders | 70 years | 69 years | ||||
Market risk benefit assets | $ 2,519,234 | $ 1,306,404 | ||||
Market risk benefit liabilities | 4,371,178 | 5,945,122 | ||||
Net liability | $ 1,851,944 | $ 4,638,718 | $ 4,550,625 | $ 8,884,362 | $ (12,032) | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | $ 36,860,011 | $ 37,096,562 | [1] | |||
Policy loans | 1,455,484 | 505,367 | ||||
Deferred policy acquisition costs | 6,923,554 | 6,930,425 | [1] | $ 6,824,407 | $ 7,029,307 | $ 2,493,082 |
Deferred sales inducements | 359,674 | 381,504 | [1] | |||
Market risk benefits assets | 2,519,234 | 1,393,237 | [1] | 1,306,000 | ||
Other assets | 2,029,917 | 1,331,427 | [1] | |||
Future policy benefits | 21,257,134 | 20,829,033 | [1] | 20,003,692 | ||
Market risk benefit liabilities | 4,371,178 | 5,521,601 | [1] | $ 5,945,000 | ||
Other liabilities | 4,720,229 | 3,597,373 | [1] | |||
Impacts of Reinsurance | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | 36,860,011 | 37,096,562 | ||||
Market risk benefits assets | 1,108,690 | 543,177 | ||||
Other assets | 1,851,596 | 1,146,794 | ||||
Policyholders' account balance | 6,026,901 | 7,157,639 | ||||
Future policy benefits | 6,672,884 | 6,320,863 | ||||
Market risk benefit liabilities | 286,622 | 120,916 | ||||
Other liabilities | 4,039,544 | 2,891,433 | ||||
Items Effected By Reinsurance Netting | ||||||
Effects of Reinsurance [Line Items] | ||||||
Policy loans | (1,073,903) | (1,011,112) | ||||
Deferred policy acquisition costs | (3,236,759) | (3,343,270) | ||||
Deferred sales inducements | (36,080) | (38,146) | ||||
Unaffiliated activity | ||||||
Effects of Reinsurance [Line Items] | ||||||
Deferred policy acquisition costs | 74,341 | 111,379 | ||||
Market risk benefits assets | 757,038 | 64,738 | ||||
Other assets | 1,745,370 | 1,034,000 | ||||
Policyholders' account balance | 1,823,542 | 2,771,961 | ||||
Future policy benefits | 159 | 0 | ||||
Market risk benefit liabilities | 149,460 | 40,731 | ||||
Other liabilities | $ 1,793,934 | $ 820,185 | ||||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 36,860,011 | $ 37,096,562 | [1] |
PAR U | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 15,272,691 | 15,051,337 | |
PURC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 7,169,637 | 6,928,950 | |
PARCC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 2,237,002 | 2,437,589 | |
GUL Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 3,096,035 | 3,124,697 | |
PAR Term | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,902,278 | 2,040,599 | |
Prudential Insurance | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,112,606 | 986,013 | |
Term Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,829,064 | 1,830,197 | |
Lotus Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 2,034,218 | 1,952,215 | |
DART | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 604,117 | 578,462 | |
Unaffiliated | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 1,602,363 | $ 2,166,503 | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Premiums: | ||||||
Direct | $ 457,967 | $ 462,478 | $ 1,396,506 | $ 1,406,822 | ||
Assumed | 32 | (2,653) | (90) | (10,730) | ||
Ceded | (372,859) | (398,109) | (1,144,655) | (1,210,547) | ||
Net Premiums | 85,140 | 61,716 | [1] | 251,761 | 185,545 | [1] |
Policy charges and fee income: | ||||||
Direct | 753,291 | 746,814 | 2,238,266 | 2,295,350 | ||
Assumed | 151,927 | 149,564 | 453,006 | 455,114 | ||
Ceded | (558,737) | (526,432) | (1,594,764) | (1,892,583) | ||
Net policy charges and fee income | 346,481 | 369,946 | [1] | 1,096,508 | 857,881 | [1] |
Net investment income: | ||||||
Direct | 463,070 | 226,827 | 1,216,154 | 617,818 | ||
Assumed | 338 | 349 | 1,024 | 1,167 | ||
Ceded | (2,544) | (16,414) | (13,789) | (36,795) | ||
Net investment income | 460,864 | 210,762 | 1,203,389 | 582,190 | ||
Asset administration fees: | ||||||
Direct | 81,422 | 84,959 | 242,730 | 271,071 | ||
Assumed | 0 | 0 | 0 | 0 | ||
Ceded | (24,668) | (16,405) | (64,986) | (51,495) | ||
Net asset administration fees | 56,754 | 68,554 | 177,744 | 219,576 | ||
Other income (loss): | ||||||
Direct | (89,144) | (181,634) | 216,247 | (855,885) | ||
Assumed | 116 | 3,059 | (233) | 550 | ||
Ceded | 25,473 | 17,168 | 70,736 | 60,206 | ||
Net Other income (loss) | (63,555) | (161,407) | [1] | 286,750 | (795,129) | [1] |
Realized investment gains (losses), net: | ||||||
Direct | (492,184) | (44,847) | (826,822) | 1,080,351 | ||
Assumed | (31,544) | 122,364 | 189,400 | (363,266) | ||
Ceded | 55,472 | 19,754 | 56,181 | 93,686 | ||
Realized investment gains (losses), net | (468,256) | 97,271 | [1] | (581,241) | 810,771 | [2] |
Change in value of market risk benefits, net of related hedging gain (loss): | ||||||
Direct | (54,544) | 29,320 | 152,660 | (698,317) | ||
Assumed | 283 | 0 | (3,160) | 0 | ||
Ceded | (193,210) | (109,398) | (415,656) | (537,098) | ||
Net change in value of market risk benefits, net of related hedging gain (loss) | (247,471) | (80,078) | [1] | (266,156) | (1,235,415) | [2] |
Policyholders’ benefits (including change in reserves): | ||||||
Direct | 912,588 | 880,240 | 2,639,868 | 2,460,564 | ||
Assumed | 336,300 | 289,093 | 985,635 | 868,301 | ||
Ceded | (1,103,479) | (1,081,648) | (3,227,951) | (2,961,322) | ||
Net policyholders’ benefits (including change in reserves | 145,409 | 87,685 | [1] | 397,552 | 367,543 | [1] |
Change in estimates of liability for future policy benefits: | ||||||
Direct | (44,155) | (69,944) | (61,510) | 1,748,781 | ||
Assumed | (17,580) | (12,640) | 8,071 | 676,754 | ||
Ceded | 68,300 | 79,649 | 54,469 | (2,382,670) | ||
Change in estimates of liability for future policy benefits | 6,565 | (2,935) | [1] | 1,030 | 42,865 | [1] |
Interest credited to policyholders’ account balances: | ||||||
Direct | 228,399 | 259,175 | 666,947 | 593,160 | ||
Assumed | 33,602 | (52,300) | 100,065 | 49,803 | ||
Ceded | (98,927) | (109,226) | (299,900) | (324,377) | ||
Net interest credited to policyholders’ account balances | 163,074 | 97,649 | [1] | 467,112 | 318,586 | [1] |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (57,368) | 146,690 | (280,393) | (71,962) | ||
Unaffiliated | ||||||
Premiums: | ||||||
Assumed | 32 | (2,653) | (100) | (16,061) | ||
Ceded | (13,942) | (10,036) | (47,319) | (32,606) | ||
Policy charges and fee income: | ||||||
Assumed | 460 | 1,929 | 1,383 | 13,350 | ||
Ceded | (39,143) | (21,196) | (101,419) | (59,453) | ||
Net investment income: | ||||||
Ceded | 10,109 | (4,122) | 23,022 | 195 | ||
Asset administration fees: | ||||||
Ceded | (7,464) | 0 | (15,204) | 0 | ||
Other income (loss): | ||||||
Assumed | 185 | 3,059 | (53) | 549 | ||
Ceded | 7,887 | 1,622 | 17,540 | 1,622 | ||
Realized investment gains (losses), net: | ||||||
Assumed | (31,544) | 122,365 | 189,400 | (159,280) | ||
Ceded | 41,007 | 19,601 | 40,378 | 92,377 | ||
Change in value of market risk benefits, net of related hedging gain (loss): | ||||||
Assumed | 283 | 0 | (3,160) | 0 | ||
Ceded | (70,693) | (20,174) | (150,791) | (106,676) | ||
Policyholders’ benefits (including change in reserves): | ||||||
Assumed | 265 | 587 | 545 | 1,941 | ||
Ceded | (42,655) | (18,206) | (106,475) | (61,248) | ||
Change in estimates of liability for future policy benefits: | ||||||
Ceded | (1,407) | 0 | (1,823) | (6,594) | ||
Interest credited to policyholders’ account balances: | ||||||
Assumed | 3,651 | (83,932) | 8,750 | (86,713) | ||
Ceded | $ 85 | $ 0 | $ 0 | $ 0 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 1,115,174,542 | $ 1,089,504,288 |
Assumed gross life insurance face amount in force | 35,824,627 | 36,865,826 |
Reinsurance ceded | (1,010,577,960) | (1,010,441,444) |
Net life insurance face amount in force | $ 140,421,209 | $ 115,928,670 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 21 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | ||||||||||||||||
Apr. 01, 2023 USD ($) | Jan. 01, 2022 USD ($) | Jul. 01, 2019 | Jul. 01, 2017 | Jul. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2023 USD ($) counterparty | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) counterparty | Sep. 30, 2022 USD ($) | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2022 USD ($) | Oct. 01, 2021 USD ($) | ||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Deposit assets on reinsurance | $ 1,601,000 | $ 1,601,000 | $ 828,000 | |||||||||||||||||||
Funds witheld liabilities | 1,398,000 | 1,398,000 | 705,000 | |||||||||||||||||||
Ceded Premiums | (372,859) | $ (398,109) | (1,144,655) | $ (1,210,547) | ||||||||||||||||||
Policy loan assets | 1,455,484 | 1,455,484 | 505,367 | |||||||||||||||||||
Deferred Reinsurance Gain | 1,698,777 | 1,512,799 | $ 252,736 | 1,698,777 | 1,512,799 | 1,492,856 | ||||||||||||||||
Reinsurance recoverables | $ 36,860,011 | $ 36,860,011 | 37,096,562 | [1] | ||||||||||||||||||
Number of counterparties | counterparty | 2 | 2 | ||||||||||||||||||||
Impacts of Reinsurance | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | $ 36,860,011 | $ 36,860,011 | 37,096,562 | |||||||||||||||||||
PAR U | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 15,272,691 | 15,272,691 | 15,051,337 | |||||||||||||||||||
PURC | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 7,169,637 | 7,169,637 | 6,928,950 | |||||||||||||||||||
PARCC | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 2,237,002 | 2,237,002 | 2,437,589 | |||||||||||||||||||
GUL Re | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 3,096,035 | 3,096,035 | 3,124,697 | |||||||||||||||||||
PAR Term | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 1,902,278 | 1,902,278 | 2,040,599 | |||||||||||||||||||
Term Re | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 1,829,064 | 1,829,064 | 1,830,197 | |||||||||||||||||||
Prudential Insurance | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 1,112,606 | 1,112,606 | 986,013 | |||||||||||||||||||
Lotus Re | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 2,034,218 | 2,034,218 | 1,952,215 | |||||||||||||||||||
DART | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 604,117 | 604,117 | 578,462 | |||||||||||||||||||
Ohio National | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Deferred Reinsurance Gain | $ 277,000 | |||||||||||||||||||||
Reinsure aprox amount of account values of PDI traditional variable annuity contracts | $ 10,000,000 | |||||||||||||||||||||
Percent of total reinsured block | 0.10 | |||||||||||||||||||||
Ohio National | Separate account liabilities under MODCO | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% | |||||||||||||||||||||
Ohio National | General account liabilities under MODCO | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% | |||||||||||||||||||||
Union Hamilton | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance recoverables | 2,300,000 | 2,300,000 | ||||||||||||||||||||
Union Hamilton | Quote Share Reinsurance | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50% | |||||||||||||||||||||
Variable Annuities | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Deferred Reinsurance Gain | 266,868 | 0 | 0 | 266,868 | 0 | 0 | ||||||||||||||||
Variable Annuities | FLIAC | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Funds held under reinsurance agreements | 5,300,000 | 5,300,000 | ||||||||||||||||||||
Fixed Annuities | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Deferred Reinsurance Gain | 50,785 | $ 59,520 | $ 78,138 | 50,785 | $ 59,520 | $ 57,898 | ||||||||||||||||
Fixed Annuities | FLIAC | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Funds held under reinsurance agreements | $ 2,000,000 | $ 2,000,000 | ||||||||||||||||||||
Percent of total reinsured block | 0.80 | 0.80 | ||||||||||||||||||||
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 | 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 | $ 1,387,000 | |||||||||||||||||||||
Net liabilities associated with the transaction for modified coinsurance | 14,037,000 | |||||||||||||||||||||
Policy loan assets | 855,000 | |||||||||||||||||||||
Cash received | 820,000 | |||||||||||||||||||||
Recognized gain | $ 1,352,000 | |||||||||||||||||||||
Affiliated Entity | DART | ||||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | |||||||||||||||||||||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Sep. 30, 2023 | Sep. 30, 2022 | ||
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | $ (104,883) | $ (7,660) | $ (8,318) | $ (350,214) | [1] | |
Effective Income Tax Rate, Percent | (18.34%) | 27.28% | ||||
Federal Statutory Income Tax Rate, Percent | 21% | |||||
Book-income Alternative Minimum Tax Rate | 15% | |||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | [1] | $ (10,065) | |||||
Income tax benefit (expense) | $ 201,437 | $ 146,711 | [2] | 194,021 | $ 100,893 | [2] | |
Ending Balance | (739,599) | (739,599) | |||||
Foreign Currency Translation Adjustments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (20,007) | (11,274) | |||||
Change in OCI before reclassifications | 431 | (11,519) | |||||
Amounts reclassified from AOCI | 0 | 0 | |||||
Income tax benefit (expense) | (51) | 1,357 | |||||
Ending Balance | (19,627) | (21,436) | (19,627) | (21,436) | |||
Net unrealized investment gains (losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (1,474,475) | 306,331 | |||||
Change in OCI before reclassifications | (482,272) | (2,552,163) | |||||
Amounts reclassified from AOCI | (17,746) | (55,886) | |||||
Income tax benefit (expense) | 105,037 | 547,513 | |||||
Ending Balance | (1,869,456) | (1,754,205) | (1,869,456) | (1,754,205) | |||
Accumulated Other Comprehensive Income (Loss) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (10,065) | 396,454 | |||||
Change in OCI before reclassifications | (905,809) | (430,464) | |||||
Amounts reclassified from AOCI | (17,746) | (55,886) | |||||
Income tax benefit (expense) | 194,021 | 100,893 | |||||
Ending Balance | (739,599) | 10,997 | (739,599) | 10,997 | |||
Interest Rate Remeasurement of Future Policy Benefits | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 119,368 | (125,809) | |||||
Change in OCI before reclassifications | 73,321 | 346,865 | |||||
Amounts reclassified from AOCI | 0 | 0 | |||||
Income tax benefit (expense) | (15,396) | (72,842) | |||||
Ending Balance | 177,293 | 148,214 | 177,293 | 148,214 | |||
Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 1,365,049 | 227,206 | |||||
Change in OCI before reclassifications | (497,289) | 1,786,353 | |||||
Amounts reclassified from AOCI | 0 | 0 | |||||
Income tax benefit (expense) | 104,431 | (375,135) | |||||
Ending Balance | 972,191 | 1,638,424 | 972,191 | 1,638,424 | |||
Cash flow hedges | Net unrealized investment gains (losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 40,000 | 40,000 | |||||
Ending Balance | $ 94,000 | $ 228,000 | $ 94,000 | $ 228,000 | |||
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (17,746) | $ (55,886) | ||
Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (17,746) | (55,886) | ||
Amounts reclassified from AOCI | Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 20,225 | $ 62,912 | 17,746 | 55,886 |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 20,225 | 62,912 | 17,746 | 55,886 |
Amounts reclassified from AOCI | Fixed maturities, available-for-sale | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | (8,931) | (5,888) | (17,154) | (69,326) |
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) | $ 29,156 | $ 68,800 | $ 34,900 | $ 125,212 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) in AOCI on AFS Fixed Maturity Securities with Allowance for Credit Losses and All Other Investments) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (10,065) | [1] |
Ending Balance | (739,599) | |
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 | 4,371 | |
Net investment gains (losses) on investments arising during the period | (5,723) | |
Reclassification adjustment for (gains) losses included in net income | (269) | |
Reclassification due to allowance for credit losses recorded during the period | 2,363 | |
Impact of net unrealized investment (gains) losses | 0 | |
Ending Balance | 742 | |
Net Unrealized Investment Gains (Losses) on All Other Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,161,026) | |
Net investment gains (losses) on investments arising during the period | (618,777) | |
Reclassification adjustment for (gains) losses included in net income | (17,477) | |
Reclassification due to allowance for credit losses recorded during the period | (2,363) | |
Impact of net unrealized investment (gains) losses | 0 | |
Ending Balance | (2,799,643) | |
Deferred Policy Acquisition Costs and Other Costs | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,198,422) | |
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 | (432,798) | |
Ending Balance | (1,631,220) | |
Future Policy Benefits and Policyholders’ Account Balances and other liabilities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 1,488,679 | |
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 | 575,026 | |
Ending Balance | 2,063,705 | |
Income Tax Benefit (Expense) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 391,923 | |
Net investment gains (losses) on investments arising during the period | 131,182 | |
Reclassification adjustment for (gains) losses included in net income | 3,731 | |
Reclassification due to allowance for credit losses recorded during the period | 0 | |
Impact of net unrealized investment (gains) losses | (29,876) | |
Ending Balance | 496,960 | |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,474,475) | |
Net investment gains (losses) on investments arising during the period | (493,318) | |
Reclassification adjustment for (gains) losses included in net income | (14,015) | |
Reclassification due to allowance for credit losses recorded during the period | 0 | |
Impact of net unrealized investment (gains) losses | 112,352 | |
Ending Balance | $ (1,869,456) | |
[1]Prior period amounts adjusted for the implementation of Accounting Standard Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) policy | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |||
Related Party Transaction [Line Items] | ||||||||||||
Commissions and fees | $ 346,481,000 | $ 369,946,000 | [1] | $ 1,096,508,000 | $ 857,881,000 | [1] | ||||||
Payments to Fund Policy Loans | 1,111,590,000 | 111,949,000 | ||||||||||
Policy loans | 1,455,484,000 | 1,455,484,000 | $ 505,367,000 | |||||||||
Net investment income | 460,864,000 | 210,762,000 | 1,203,389,000 | 582,190,000 | ||||||||
Other invested assets | 1,203,591,000 | 1,203,591,000 | 1,088,613,000 | |||||||||
Fee income from revenue sharing agreement | 56,754,000 | 68,554,000 | 177,744,000 | 219,576,000 | ||||||||
Accrued investment income | 308,908,000 | 308,908,000 | 219,635,000 | |||||||||
Return of capital | $ (300,000,000) | |||||||||||
Prudential Insurance | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Contributed Capital | $ 405,000,000 | $ 7,000,000 | $ 3,000,000 | $ 8,000,000 | ||||||||
Dividends | 0 | 0 | ||||||||||
Return of capital | 650,000,000 | $ 300,000,000 | ||||||||||
PGF | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment Income, Interest | 132,000,000 | 363,000,000 | ||||||||||
Prudential Insurance | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stock option program plan expense | 200,000 | 300,000 | 700,000 | 800,000 | ||||||||
Deferred compensation program expense | 1,000,000 | 700,000 | 4,400,000 | 3,900,000 | ||||||||
Pension plan expense | 3,000,000 | 4,000,000 | 10,000,000 | 14,000,000 | ||||||||
Welfare plan expense | 4,000,000 | 4,000,000 | $ 11,000,000 | 11,000,000 | ||||||||
Defined contribution plan, employer matching contribution, percent (up to) | 4% | |||||||||||
Defined contribution plan, cost recognized | 2,000,000 | 3,000,000 | $ 6,000,000 | 7,000,000 | ||||||||
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 | 3,857,000,000 | $ 3,857,000,000 | 4,512,000,000 | |||||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 13,000,000 | 13,000,000 | 38,000,000 | 40,000,000 | ||||||||
Prudential Financial | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Company's share of corporate expenses | 31,000,000 | 24,000,000 | $ 104,000,000 | 58,000,000 | ||||||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | |||||||||||
Payments to Fund Policy Loans | $ 900,000,000 | |||||||||||
Policy loans | 898,000,000 | 898,000,000 | ||||||||||
Interest Income on Policy Loans | 10,000,000 | 15,000,000 | ||||||||||
Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net investment income | 2,000,000 | 1,000,000 | 5,000,000 | 3,000,000 | ||||||||
Accrued interest receivable related to long-term notes receivable | 300,000 | 300,000 | 1,000,000 | |||||||||
Revenues related to long-term notes receivable | 0 | 1,000,000 | 2,000,000 | 3,000,000 | ||||||||
Accrued investment income | 500,000 | 500,000 | 500,000 | |||||||||
Line of credit facility, maximum borrowing capacity | 7,000,000,000 | 7,000,000,000 | ||||||||||
Interest expense related to loans payable, Related Party | 5,000,000 | (32,000,000) | 10,000,000 | (37,000,000) | ||||||||
Affiliated Entity | PAD | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Commissions and fees | 153,000,000 | 139,000,000 | 440,000,000 | 471,000,000 | ||||||||
Affiliated Entity | PGIM | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net investment income | 14,000,000 | 11,000,000 | 39,000,000 | 29,000,000 | ||||||||
Affiliated Entity | ASTISI and PGIM Investments | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Fee income from revenue sharing agreement | 69,000,000 | 74,000,000 | 208,000,000 | 237,000,000 | ||||||||
Affiliated Entity | PGIM Investments | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Fee income from revenue sharing agreement | 10,000,000 | 9,000,000 | 28,000,000 | 28,000,000 | ||||||||
Prudential Financial Joint Ventures | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net investment income | 6,000,000 | $ 2,000,000 | 2,000,000 | $ 21,000,000 | ||||||||
Other invested assets | $ 710,000,000 | $ 710,000,000 | $ 606,000,000 | |||||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 144,698 | $ 148,076 |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 144,698 | $ 148,076 |
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 | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Commercial Mortgage Loans | $ 5,492,869 | $ 4,928,680 |
Affiliated Entity | Commercial mortgage loans | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 9.83% | |
Commercial Mortgage Loans | $ 71,335 | $ 72,225 |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Sep. 30, 2023 | Sep. 30, 2022 | [2] | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||||
Additional paid-in capital | $ 6,037,914 | ||||||
Realized investment gains (losses) | $ (468,256) | $ 97,271 | $ (581,241) | $ 810,771 | |||
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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | (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 | |||||
Additional paid-in capital | (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 | |||||
Additional paid-in capital | (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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 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 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance - July 2022 - Transfer in - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 6,319 | 6,319 | |||||
Book Value | 7,230 | 7,230 | |||||
Additional paid-in capital | 719 | 719 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Arizona Reinsurance Captive Co - July 2022 - Purchase - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 16,284 | 16,284 | |||||
Book Value | 16,284 | 16,284 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance - August 2022 - Purchase - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 155,823 | 155,823 | |||||
Book Value | 139,712 | 139,712 | |||||
Additional paid-in capital | (12,728) | (12,728) | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Vantage Casualty Insurance Co - September 2022 - Purchase - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 3,497 | 3,497 | |||||
Book Value | 3,497 | 3,497 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | WH Warehouse Ltd - October 2022 - Sale - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 26,536 | 26,536 | |||||
Book Value | 26,388 | 26,388 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 148 | ||||||
Affiliated Entity | PARU - November 2022 - Purchase - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 91,051 | 91,051 | |||||
Book Value | 91,051 | 91,051 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance - December 2022 - Purchase - Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 67,477 | 67,477 | |||||
Book Value | 71,369 | 71,369 | |||||
Additional paid-in capital | 3,075 | 3,075 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, January 2023, Purchase, Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 48,329 | 48,329 | |||||
Book Value | 50,372 | 50,372 | |||||
Additional paid-in capital | 1,614 | 1,614 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, March 2023, Purchase, Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 7,175 | 7,175 | |||||
Book Value | 7,500 | 7,500 | |||||
Additional paid-in capital | 256 | 256 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | PURC, April 2023, Purchase, Fixed maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 102,804 | 102,804 | |||||
Book Value | 102,804 | 102,804 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Term Re, June 2023, Purchase, Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 115,573 | 115,573 | |||||
Book Value | 115,573 | 115,573 | |||||
Additional paid-in capital | 0 | 0 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, June 2023, Purchase, Fixed Maturities | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 4,298 | 4,298 | |||||
Book Value | 4,443 | 4,443 | |||||
Additional paid-in capital | 114 | 114 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, June 2023, Purchase, Fixed Maturities 1 | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 4,394 | 4,394 | |||||
Book Value | 4,494 | 4,494 | |||||
Additional paid-in capital | 80 | 80 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, June 2023, Purchase, Fixed Maturities 2 | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 19,453 | 19,453 | |||||
Book Value | 19,203 | 19,203 | |||||
Additional paid-in capital | (198) | (198) | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, June 2023, Purchase, Fixed Maturities 3 | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 14,452 | 14,452 | |||||
Book Value | 15,086 | 15,086 | |||||
Additional paid-in capital | 502 | 502 | |||||
Realized investment gains (losses) | 0 | ||||||
Affiliated Entity | Prudential Insurance, September 2023, Purchase, Fixed Maturities 4 | |||||||
Related Party Transaction [Line Items] | |||||||
Fair Value | 15,880 | 15,880 | |||||
Book Value | 15,801 | 15,801 | |||||
Additional paid-in capital | $ (62) | (62) | |||||
Realized investment gains (losses) | $ 0 | ||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 304,317 | $ 311,813 |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 94,318 | 96,666 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 28,295 | 29,000 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 95,634 | 97,665 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 38,253 | 39,066 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 47,817 | 48,832 |
Interest Rates | 3.95% | |
Prudential Funding, LLC, Loan Issued 12/28/2022 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 138 |
Interest Rates | 4.73% | |
Prudential Funding, LLC, Loan Issued 12/29/2022 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 62 |
Interest Rates | 4.73% | |
Prudential Funding, LLC, Loan Issued 12/30/2022 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 384 |
Interest Rates | 4.73% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | 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 | CT Corp Joint Venture | ||||||
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 | 506 | 506 | $ 333 | |||
Allowance for credit losses | 0 | 0 | 0.1 | |||
Change in allowance for credit loss expense (reversal) | 0.1 | $ 0 | 0 | $ 0 | ||
Commitments | Investments | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Commitments to purchase investment (excluding commercial mortgage loans) | 1,279 | 1,279 | 582 | |||
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 | $ 32 | $ 32 | $ 33 |