Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 033-44202 | |
Entity Registrant Name | PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT | |
Entity Central Index Key | 0000881453 | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 06-1241288 | |
Entity Address, Address Line One | One Corporate Drive | |
Entity Address, City or Town | Shelton | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | 203 | |
Local Phone Number | 926-1888 | |
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 | 25,000 |
Unaudited Interim Statements of
Unaudited Interim Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2021-$2,226; 2020-$686) (amortized cost: 2021-$10,191,008; 2020-$16,177,891) | $ 10,577,150 | $ 18,584,685 |
Fixed maturities, trading, at fair value (amortized cost: 2021-$338,930; 2020-$1,017,771) | 341,924 | 1,114,142 |
Equity securities, at fair value (cost: 2021-$239,035; 2020-$279,096) | 236,395 | 288,082 |
Commercial mortgage and other loans (net of $4,234 and $7,382 allowance for credit losses at September 30, 2021 and December 31, 2020, respectively) | 2,044,843 | 1,765,770 |
Policy loans | 11,871 | 11,806 |
Short-term investments | 95,313 | 318,161 |
Other invested assets (includes $13,826 and $204,863 of assets measured at fair value at September 30, 2021 and December 31, 2020, respectively) | 96,160 | 818,810 |
Total investments | 13,403,656 | 22,901,456 |
Cash and cash equivalents | 1,413,331 | 1,069,211 |
Deferred policy acquisition costs | 1,000,868 | 4,237,780 |
Accrued investment income | 74,015 | 121,604 |
Reinsurance recoverables | 384,614 | 694,040 |
Income taxes | 1,088,488 | 1,448,714 |
Value of business acquired | 27,186 | 27,247 |
Deferred sales inducements | 294,029 | 714,598 |
Receivables from parent and affiliates | 54,706 | 87,620 |
Other assets | 550,440 | 767,540 |
Separate account assets | 31,916,178 | 32,205,296 |
TOTAL ASSETS | 50,207,511 | 64,275,106 |
LIABILITIES | ||
Future policy benefits | 4,650,800 | 18,560,891 |
Policyholders’ account balances | 10,718,803 | 9,181,459 |
Payables to parent and affiliates | 329,775 | 47,345 |
Short-term debt | 0 | 119,671 |
Long-term debt | 0 | 299,747 |
Reinsurance payables | 31,437 | 178,860 |
Other liabilities | 503,550 | 980,692 |
Separate account liabilities | 31,916,178 | 32,205,296 |
Total liabilities | 48,150,543 | 61,573,961 |
EQUITY | ||
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding | 2,500 | 2,500 |
Additional paid-in capital | 590,601 | 4,382,936 |
Retained earnings / (accumulated deficit) | 1,178,953 | (3,217,350) |
Accumulated other comprehensive income (loss) | 284,914 | 1,533,059 |
Total equity | 2,056,968 | 2,701,145 |
TOTAL LIABILITIES AND EQUITY | $ 50,207,511 | $ 64,275,106 |
Unaudited Interim Statements _2
Unaudited Interim Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, at fair value (AFS), allowance for credit loss | $ 2,226 | $ 686 |
Fixed Maturities, Available-for-sale, amortized cost | 10,191,008 | 16,177,891 |
Fixed maturities, trading, amortized cost | 338,930 | 1,017,771 |
Equity securities, at fair value | 239,035 | 279,096 |
Commercial mtg and other loans, allowance for credit losses | 4,234 | 7,382 |
Other invested assets, at fair value | $ 13,826 | $ 204,863 |
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Common Stock, Shares Authorized | 25,000 | 25,000 |
Common Stock, Shares, Issued | 25,000 | 25,000 |
Common Stock, Shares, Outstanding | 25,000 | 25,000 |
Unaudited Interim Statements _3
Unaudited Interim Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
REVENUES | ||||||
Premiums | $ 5,657 | $ 13,936 | $ 32,696 | $ 45,528 | ||
Policy charges and fee income | 106,137 | 489,440 | 1,127,868 | 1,441,991 | ||
Net investment income | 101,318 | 144,669 | 386,525 | 426,132 | ||
Asset management and service fees | 22,685 | 99,419 | [1] | 232,256 | 288,909 | [1] |
Other income (loss) | (41,719) | 3,339 | [1] | (555,728) | 64,831 | [1] |
Realized investment gains (losses), net | 5,080,691 | (245,974) | 7,372,863 | (4,379,429) | ||
TOTAL REVENUES | 5,274,769 | 504,829 | 8,596,480 | (2,112,038) | ||
BENEFITS AND EXPENSES | ||||||
Policyholders’ benefits | (241,771) | 43,824 | (215,754) | 248,585 | ||
Interest credited to policyholders’ account balances | 440,455 | 81,284 | 609,624 | 161,000 | ||
Amortization of deferred policy acquisition costs | 19,081 | 204,516 | 401,735 | 439,730 | ||
Commission expense | 1,408,014 | 193,174 | 1,738,901 | 602,303 | ||
General, administrative and other expenses | (90,076) | 29,604 | 38,395 | 160,487 | ||
TOTAL BENEFITS AND EXPENSES | 1,535,703 | 552,402 | 2,572,901 | 1,612,105 | ||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 3,739,066 | (47,573) | 6,023,579 | (3,724,143) | ||
Income tax expense (benefit) | 777,976 | 134,587 | 1,247,276 | (964,981) | ||
NET INCOME (LOSS) | 2,961,090 | (182,160) | 4,776,303 | (2,759,162) | ||
Other comprehensive income (loss), before tax: | ||||||
Foreign currency translation adjustments | (183) | 327 | (117) | (154) | ||
Net unrealized investment gains (losses) | (87,605) | 33,026 | (1,579,814) | 1,560,493 | ||
Total | (87,788) | 33,353 | (1,579,931) | 1,560,339 | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | ||||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (18,436) | 7,006 | (331,786) | 327,672 | ||
Other comprehensive income (loss), net of taxes | (69,352) | 26,347 | (1,248,145) | 1,232,667 | ||
Comprehensive income (loss) | $ 2,891,738 | $ (155,813) | $ 3,528,158 | $ (1,526,495) | ||
[1] | Prior period amounts have been reclassified to conform to current period presentation. |
Unaudited Interim Statements _4
Unaudited Interim Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of adoption of accounting changes | [1] | Cumulative effect of adoption of accounting changesRetained Earnings (Accumulated Deficit) | [1] |
Beginning Balance at Dec. 31, 2019 | $ 5,527,355 | $ 2,500 | $ 5,142,936 | $ (46,693) | $ 428,612 | $ (1,392) | $ (1,392) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Return of capital | (207,000) | (207,000) | |||||||
Comprehensive income: | |||||||||
Net income (loss) | (820,788) | (820,788) | |||||||
Other comprehensive income (loss), net of tax | 1,010,888 | 1,010,888 | |||||||
Total comprehensive income (loss) | 190,100 | ||||||||
Ending Balance at Mar. 31, 2020 | 5,509,063 | 2,500 | 4,935,936 | (868,873) | 1,439,500 | ||||
Beginning Balance at Dec. 31, 2019 | 5,527,355 | 2,500 | 5,142,936 | (46,693) | 428,612 | $ (1,392) | $ (1,392) | ||
Comprehensive income: | |||||||||
Net income (loss) | (2,759,162) | ||||||||
Other comprehensive income (loss), net of tax | 1,232,667 | ||||||||
Ending Balance at Sep. 30, 2020 | 3,427,468 | 2,500 | 4,570,936 | (2,807,247) | 1,661,279 | ||||
Beginning Balance at Mar. 31, 2020 | 5,509,063 | 2,500 | 4,935,936 | (868,873) | 1,439,500 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Return of capital | (173,000) | (173,000) | |||||||
Comprehensive income: | |||||||||
Net income (loss) | (1,756,214) | (1,756,214) | |||||||
Other comprehensive income (loss), net of tax | 195,432 | 195,432 | |||||||
Total comprehensive income (loss) | (1,560,782) | ||||||||
Ending Balance at Jun. 30, 2020 | 3,775,281 | 2,500 | 4,762,936 | (2,625,087) | 1,634,932 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Return of capital | (192,000) | (192,000) | |||||||
Comprehensive income: | |||||||||
Net income (loss) | (182,160) | (182,160) | |||||||
Other comprehensive income (loss), net of tax | 26,347 | 26,347 | |||||||
Total comprehensive income (loss) | (155,813) | ||||||||
Ending Balance at Sep. 30, 2020 | 3,427,468 | 2,500 | 4,570,936 | (2,807,247) | 1,661,279 | ||||
Beginning Balance at Dec. 31, 2020 | 2,701,145 | 2,500 | 4,382,936 | (3,217,350) | 1,533,059 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividend to parent | (192,000) | (192,000) | |||||||
Comprehensive income: | |||||||||
Net income (loss) | 1,889,813 | 1,889,813 | |||||||
Other comprehensive income (loss), net of tax | (1,412,895) | (1,412,895) | |||||||
Total comprehensive income (loss) | 476,918 | ||||||||
Ending Balance at Mar. 31, 2021 | 2,986,063 | 2,500 | 4,382,936 | (1,519,537) | 120,164 | ||||
Beginning Balance at Dec. 31, 2020 | 2,701,145 | 2,500 | 4,382,936 | (3,217,350) | 1,533,059 | ||||
Comprehensive income: | |||||||||
Net income (loss) | 4,776,303 | ||||||||
Other comprehensive income (loss), net of tax | (1,248,145) | ||||||||
Ending Balance at Sep. 30, 2021 | 2,056,968 | 2,500 | 590,601 | 1,178,953 | 284,914 | ||||
Beginning Balance at Mar. 31, 2021 | 2,986,063 | 2,500 | 4,382,936 | (1,519,537) | 120,164 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividend to parent | (188,000) | (188,000) | |||||||
Comprehensive income: | |||||||||
Net income (loss) | (74,600) | (74,600) | |||||||
Other comprehensive income (loss), net of tax | 234,102 | 234,102 | |||||||
Total comprehensive income (loss) | 159,502 | ||||||||
Ending Balance at Jun. 30, 2021 | 2,957,565 | 2,500 | 4,382,936 | (1,782,137) | 354,266 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Return of capital | (3,813,369) | (3,813,369) | |||||||
Asset purchased/ transferred from / to affiliates | 21,034 | 21,034 | |||||||
Comprehensive income: | |||||||||
Net income (loss) | 2,961,090 | 2,961,090 | |||||||
Other comprehensive income (loss), net of tax | (69,352) | (69,352) | |||||||
Total comprehensive income (loss) | 2,891,738 | ||||||||
Ending Balance at Sep. 30, 2021 | $ 2,056,968 | $ 2,500 | $ 590,601 | $ 1,178,953 | $ 284,914 | ||||
[1] | Includes the impact from the adoption of ASU 2016-13. See Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. |
Unaudited Interim Statements _5
Unaudited Interim Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 4,776,303 | $ (2,759,162) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (1,919) | (194) |
Realized investment (gains) losses, net | (7,372,863) | 4,379,429 |
Depreciation and amortization | 5,572 | 1,288 |
Interest credited to policyholders’ account balances | 609,624 | 161,000 |
Change in: | ||
Future policy benefits | 604,172 | 1,014,611 |
Accrued investment income | 47,589 | (14,442) |
Net receivables from/payables to parent and affiliates | (23,245) | (12,673) |
Deferred sales inducements | (867) | (1,049) |
Deferred policy acquisition costs | 3,487,773 | 205,496 |
Income taxes | 686,421 | (636,990) |
Reinsurance recoverables, net | 40,516 | (37,789) |
Derivatives, net | (3,001,376) | 5,063,948 |
Other, net | (1,922,973) | (32,760) |
Cash flows from (used in) operating activities | (2,065,273) | 7,330,713 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 8,858,846 | 572,885 |
Fixed maturities, trading | 2,082,332 | 159,732 |
Equity securities | 45,557 | 29,057 |
Commercial mortgage and other loans | 115,768 | 25,308 |
Policy loans | 544 | 1,045 |
Other invested assets | 43,923 | 27,263 |
Short-term investments | 389,294 | 6,320,503 |
Payments for the purchase/origination of: | ||
Fixed maturities, available for sale | (5,142,331) | (3,005,885) |
Fixed maturities, trading | (5,383,875) | (543,613) |
Equity securities | (6,426) | (16,019) |
Commercial mortgage and other loans | (1,089,461) | (232,974) |
Policy loans | (96) | (73) |
Other invested assets | (224,583) | (147,298) |
Short-term investments | (166,451) | (7,800,148) |
Notes receivable from parent and affiliates, net | 51,397 | 0 |
Derivatives, net | (88,260) | (774,629) |
Other, net | 3,470 | 0 |
Cash flows from (used in) investing activities | (510,352) | (5,384,846) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders' account deposits | 6,715,772 | 4,455,177 |
Ceded policyholders' account deposits | (6,752) | (33,061) |
Policyholders' account withdrawals | (2,596,597) | (3,070,114) |
Ceded policyholders' account withdrawals | 11,167 | 29,759 |
Repayments of debt (maturities longer than 90 days) | (299,747) | 0 |
Net increase/(decrease) in short-term borrowing | (119,671) | 11,322 |
Drafts outstanding | (9,869) | (12,968) |
Distribution to parent | (773,756) | (572,000) |
Other, net | (802) | (47,209) |
Cash flows from (used in) financing activities | 2,919,745 | 760,906 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 344,120 | 2,706,773 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,069,211 | 2,795,163 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,413,331 | $ 5,501,936 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Annuities Life Assurance Corporation (the “Company” or “PALAC”), with its principal offices in Shelton, Connecticut, is a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey corporation. The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing long-term savings and retirement products, including insurance products, and individual and group annuities. Effective April 1, 2016, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life Insurance Company ("Pruco Life"), excluding the Pruco Life Insurance Company of New Jersey ("PLNJ") business which was reinsured to The Prudential Insurance Company of America (“Prudential Insurance”), in each case under a coinsurance and modified coinsurance agreement. This reinsurance agreement covers new and in force business and excludes business reinsured externally. As of December 31, 2020, Pruco Life discontinued the sales of traditional variable annuities with guaranteed living benefit riders. The discontinuation has no impact on the reinsurance agreement between Pruco Life and the Company. In addition, the living benefit hedging program related to the living benefit guarantees as well as the product risks for retained and reinsured businesses are being managed within the Company and Prudential Insurance, as applicable. Effective July 1, 2021, Pruco Life recaptured the risks related to its business, as discussed above, that had previously been reinsured to the Company from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in the Company, were transferred to Pruco Life. In addition, the living benefit hedging program related to the previously reinsured living benefit riders will be managed within Pruco Life. This transaction is referred to as the "2021 Variable Annuities Recapture". The financial statement impacts of this transaction are as follows: Unaudited Interim Statement of Financial Position Balance as of June 30, 2021 Impacts of Recapture Total as of July 1, 2021 (in millions) ASSETS Total investments(1)(2) $ 20,501 $ (8,327) $ 12,174 Cash and cash equivalents 2,091 (409) 1,682 Deferred policy acquisition costs 4,215 (3,286) 929 Accrued investment income 110 (42) 68 Reinsurance recoverables 567 (181) 386 Income tax receivable 1,707 (787) 920 Value of business acquired 28 0 28 Deferred sales inducements 692 (388) 304 Receivables from parent and affiliates 114 (41) 73 Other assets 544 0 544 Separate account assets 32,934 0 32,934 TOTAL ASSETS $ 63,503 $ (13,461) $ 50,042 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 13,707 $ (9,048) $ 4,659 Policyholders’ account balances 12,617 (3,199) 9,418 Payables to parent and affiliates 34 0 34 Long-term debt 300 0 300 Reinsurance payable 148 (115) 33 Other liabilities 805 (245) 560 Separate account liabilities 32,934 0 32,934 Total Liabilities 60,545 (12,607) 47,938 EQUITY Common stock 3 0 3 Additional paid-in capital(3) 4,383 (3,786) 597 Retained earnings (1,782) 3,026 1,244 Accumulated other comprehensive income 354 (94) 260 Total equity 2,958 (854) 2,104 TOTAL LIABILITIES AND EQUITY $ 63,503 $ (13,461) $ 50,042 Significant non-cash transactions (1) The decrease in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred an increase related to ceding commissions of $2.0 billion received from Pruco Life. (3) The decrease in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to return of capital to PAI. Unaudited Interim Statement of Operations and Comprehensive Income (Loss) For the three and nine months ended September 30, 2021 Impacts of Recapture (in millions) REVENUES Other income (loss) $ 1 Realized investment gains (losses), net 5,142 TOTAL REVENUES 5,143 BENEFITS AND EXPENSES Policyholders’ benefits (257) Interest credited to policyholders’ account balances 399 Commission expense 1,362 General, administrative and other expenses (191) TOTAL BENEFITS AND EXPENSES 1,313 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 3,830 Income tax expense (benefit) 804 NET INCOME (LOSS) $ 3,026 Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) Pruco Life July 1, 2021 Sale Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,720 $ 0 $ 173 $ 15 PAI July 1, 2021 Return of Capital Fixed Maturities $ 3,420 $ 3,420 $ (3,420) $ 0 $ 0 As part of the recapture transaction, the Company sent invested assets of $6.8 billion, net of $2.0 billion ceding commissions as consideration to Pruco Life, which is equivalent to the amount of statutory reserve credit taken as of June 30, 2021. The company released living benefit liabilities of $8.3 billion as well as variable annuity base contracts of $3.0 billion and benefit and payout reserves of $0.9 billion. Also, the Company derecognized its assumed Deferred Policy Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI") balances as of June 30, 2021. The company also recognized a deferred reinsurance gain from the original transaction of $0.2 billion. As a result of the recapture transaction, the Company recognized a pre-tax gain of $3.8 billion immediately. There was a $3.8 billion return of capital to PAI, which includes $3.4 billion in invested assets and $0.4 billion in cash. Basis of Presentation The Unaudited Interim 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”). 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 Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining DAC and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain annuity products; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. COVID-19 Since the first quarter of 2020, the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets. While markets have rebounded, the pandemic has adversely impacted, and may continue to adversely impact, the Company's results of operations, financial condition and cash flows. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. The risks may have manifested, and may continue to manifest, in the Company's financial statements in the areas of, among others, i) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value; and ii) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, VOBA, etc.). The Company cannot predict what impact the COVID-19 pandemic will ultimately have on its businesses. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. Sale of PALAC |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of September 30, 2021, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. ASU issued but not yet adopted as of September 30, 2021 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, in November 2020, the FASB issued ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application to defer for an additional one year the effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance either as of January 1, 2020 or January 1, 2021 (and record transition adjustments as of January 1, 2020 or January 1, 2021, respectively) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. The Company currently intends to adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. The Company expects the standard to have a significant financial impact on the Financial Statements and will significantly enhance disclosures. In addition to the significant impacts to the balance sheet upon adoption, the Company also expects an impact to the pattern of earnings emergence following the transition date. Outlined below are four key areas of change, although there are other less significant changes not noted below. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in Accumulated other comprehensive income (loss) ("AOCI") or (2) a full retrospective transition method. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. The impacts of electing such method are currently under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of either the beginning of the prior year (if early adoption is elected)or the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. As noted above, the Company currently intends to adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. Upon adoption, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between discount rates locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of DAC and other balances Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a full retrospective transition method for DAC and other balances. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits ("MRB") Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change in MRB liabilities attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of either the beginning of prior year (if early adoption is elected) or the beginning of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. The Company currently intends to adopt this guidance effective January 1, 2023 using the retrospective transition method. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Modifications related to COVID-19 We assess modifications to certain fixed income instruments on a case-by-case basis to evaluate whether a troubled debt restructuring ("TDR") has occurred. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") provides a temporary suspension of TDR accounting for certain COVID-19 related modifications where the investment was not more than 30 days past due as of December 31, 2019 (“TDR Relief”). The TDR Relief was set to expire on December 31, 2020, but was extended through December 31, 2021 by the Consolidated Appropriations Act of 2021. The Company elected to apply the TDR Relief beginning in the first quarter of 2021. The TDR Relief does not apply to modifications completed 60 days after the national emergency related to COVID-19 ends, or December 31, 2021, whichever comes earlier. As of September 30, 2021, any such modifications did not have a material impact on the Company's results of operations. For additional information regarding the Company’s policies for troubled debt restructurings, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Investments | 3. INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 669,350 $ 57,637 $ 302 $ 0 $ 726,685 Obligations of U.S. states and their political subdivisions 283,487 14,845 883 0 297,449 Foreign government bonds 164,023 14,207 813 0 177,417 U.S. public corporate securities 2,843,576 180,349 16,855 0 3,007,070 U.S. private corporate securities 2,037,889 73,950 6,759 2,226 2,102,854 Foreign public corporate securities 744,178 17,155 3,725 0 757,608 Foreign private corporate securities 1,311,604 43,078 23,911 0 1,330,771 Asset-backed securities(1) 1,266,654 7,321 311 0 1,273,664 Commercial mortgage-backed securities 793,065 36,371 6,519 0 822,917 Residential mortgage-backed securities(2) 77,182 3,562 29 0 80,715 Total fixed maturities, available-for-sale $ 10,191,008 $ 448,475 $ 60,107 $ 2,226 $ 10,577,150 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, equipment leases, home equity loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 7,283,403 $ 1,631,715 $ 12,686 $ 0 $ 8,902,432 Obligations of U.S. states and their political subdivisions 258,135 19,512 156 0 277,491 Foreign government bonds 153,009 24,378 4 0 177,383 U.S. public corporate securities 3,112,420 339,348 1,361 0 3,450,407 U.S. private corporate securities 1,736,035 155,943 4,706 209 1,887,063 Foreign public corporate securities 513,204 29,029 408 0 541,825 Foreign private corporate securities 1,338,936 158,227 2,851 477 1,493,835 Asset-backed securities(1) 984,318 9,870 1,605 0 992,583 Commercial mortgage-backed securities 728,522 57,522 102 0 785,942 Residential mortgage-backed securities(2) 69,909 5,818 3 0 75,724 Total fixed maturities, available-for-sale $ 16,177,891 $ 2,431,362 $ 23,882 $ 686 $ 18,584,685 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, equipment leases and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,479 $ 302 $ 0 $ 0 $ 74,479 $ 302 Obligations of U.S. states and their political subdivisions 3,491 72 8,784 811 12,275 883 Foreign government bonds 18,592 813 0 0 18,592 813 U.S. public corporate securities 907,661 16,191 9,998 664 917,659 16,855 U.S. private corporate securities 479,408 6,722 2,491 37 481,899 6,759 Foreign public corporate securities 438,175 3,464 3,722 261 441,897 3,725 Foreign private corporate securities 589,332 23,737 2,848 174 592,180 23,911 Asset-backed securities 316,315 309 5,002 2 321,317 311 Commercial mortgage-backed securities 214,547 6,226 6,971 293 221,518 6,519 Residential mortgage-backed securities 7,245 26 74 3 7,319 29 Total fixed maturities, available-for-sale $ 3,049,245 $ 57,862 $ 39,890 $ 2,245 $ 3,089,135 $ 60,107 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 244,507 $ 12,686 $ 0 $ 0 $ 244,507 $ 12,686 Obligations of U.S. states and their political subdivisions 9,440 156 0 0 9,440 156 Foreign government bonds 257 1 87 3 344 4 U.S. public corporate securities 117,755 1,335 2,185 26 119,940 1,361 U.S. private corporate securities 35,411 2,614 16,071 2,092 51,482 4,706 Foreign public corporate securities 69,610 408 0 0 69,610 408 Foreign private corporate securities 11,679 188 50,809 2,663 62,488 2,851 Asset-backed securities 219,535 320 246,535 1,285 466,070 1,605 Commercial mortgage-backed securities 45,617 102 0 0 45,617 102 Residential mortgage-backed securities 0 0 80 3 80 3 Total fixed maturities, available-for-sale $ 753,811 $ 17,810 $ 315,767 $ 6,072 $ 1,069,578 $ 23,882 As of September 30, 2021 and December 31, 2020, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $53.7 million and $17.4 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 $6.4 million and $6.5 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of September 30, 2021, the $2.2 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the capital goods, consumer non-cyclical, and utility sectors. As of December 31, 2020, the $6.1 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the transportation, consumer non-cyclical and energy sectors and in asset-backed securities. In accordance with its policy described in Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at September 30, 2021. This conclusion was based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of September 30, 2021, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 134,591 $ 136,840 Due after one year through five years 1,851,380 1,895,997 Due after five years through ten years 3,011,050 3,081,257 Due after ten years 3,057,086 3,285,760 Asset-backed securities 1,266,654 1,273,664 Commercial mortgage-backed securities 793,065 822,917 Residential mortgage-backed securities 77,182 80,715 Total fixed maturities, available-for-sale $ 10,191,008 $ 10,577,150 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 Nine Months Ended 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 215,523 $ 20,268 $ 8,008,956 $ 352,945 Proceeds from maturities/prepayments 195,328 88,208 606,621 220,109 Gross investment gains from sales and maturities 157,167 24 1,295,797 18,279 Gross investment losses from sales and maturities (14,452) (366) (75,069) (1,856) Write-downs recognized in earnings(2) 0 0 (22,619) (693) (Addition to) release of allowance for credit losses (1,891) 414 (1,540) (568) (1) Includes $(243.3) million and $0.2 million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2021 and 2020, respectively. (2) Amounts represent write-downs on 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, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 335 $ 0 $ 0 $ 0 $ 335 Additions to allowance for credit losses not previously recorded 0 0 2,226 0 0 0 2,226 Reductions for securities sold during the period 0 0 (282) 0 0 0 (282) Addition (reductions) on securities with previous allowance 0 0 (53) 0 0 0 (53) Balance, end of period $ 0 $ 0 $ 2,226 $ 0 $ 0 $ 0 $ 2,226 Three Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 982 $ 0 $ 0 $ 0 $ 982 Additions to allowance for credit losses not previously recorded 0 0 216 0 0 0 216 Reductions for securities sold during the period 0 0 0 0 0 0 0 Addition (reductions) on securities with previous allowance 0 0 (630) 0 0 0 (630) Balance, end of period $ 0 $ 0 $ 568 $ 0 $ 0 $ 0 $ 568 Nine Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 686 $ 0 $ 0 $ 0 $ 686 Additions to allowance for credit losses not previously recorded 0 0 2,658 0 0 0 2,658 Reductions for securities sold during the period 0 0 (295) 0 0 0 (295) Addition (reductions) on securities with previous allowance 0 0 (823) 0 0 0 (823) Balance, end of period $ 0 $ 0 $ 2,226 $ 0 $ 0 $ 0 $ 2,226 Nine Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 1,384 0 0 0 1,384 Reductions for securities sold during the period 0 0 (2) 0 0 0 (2) Addition (reductions) on securities with previous allowance 0 0 (814) 0 0 0 (814) Balance, end of period $ 0 $ 0 $ 568 $ 0 $ 0 $ 0 $ 568 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional information about the Company’s methodology for developing our allowance for credit losses. For the three months ended September 30, 2021, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the capital goods and transportation sectors within private corporate securities. For the three months ended September 30, 2020, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to recoveries in the capital goods sector within private corporate securities. For the nine months ended September 30, 2021, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the capital goods and transportation sectors within private corporate securities. For the nine months ended September 30, 2020, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the capital goods and utility sectors within private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both September 30, 2021 and December 31, 2020. Fixed Maturities, Trading The net change in unrealized gains (losses) from fixed maturities, trading still held at period end, recorded within “Other income (loss),” was $24.3 million and $1.2 million during the three months ended September 30, 2021 and 2020, respectively, and $(275.9) million and $62.8 million during the nine months ended September 30, 2021 and 2020, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $(2.6) million and $0.4 million during the three months ended September 30, 2021 and 2020, respectively, and $(11.6) million and $2.1 million during the nine months ended September 30, 2021 and 2020, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 471,521 23.0 % $ 369,764 20.9 % Hospitality 28,525 1.4 16,679 0.9 Industrial 814,100 39.7 590,231 33.3 Office 323,811 15.8 374,107 21.1 Other 218,338 10.7 187,643 10.6 Retail 100,815 4.9 130,154 7.3 Total commercial mortgage loans 1,957,110 95.5 1,668,578 94.1 Agricultural property loans 91,967 4.5 104,574 5.9 Total commercial mortgage and agricultural property loans 2,049,077 100.0 % 1,773,152 100.0 % Allowance for credit losses (4,234) (7,382) Total net commercial mortgage and agricultural property loans $ 2,044,843 $ 1,765,770 As of September 30, 2021, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States with the largest concentrations in California (35%), Texas (16%) and New York (6%) and included loans secured by properties in Europe (9%) and Mexico (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, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 5,392 $ 191 $ 5,583 $ 6,701 $ 178 $ 6,879 Addition to (release of) allowance for expected losses (1,236) (113) (1,349) 646 108 754 Allowance, end of period $ 4,156 $ 78 $ 4,234 $ 7,347 $ 286 $ 7,633 Nine Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 7,116 $ 266 $ 7,382 $ 2,622 $ 41 $ 2,663 Cumulative effect of adoption of ASU 2016-13 0 0 0 3,118 39 3,157 Addition to (release of) allowance for expected losses (2,960) (188) (3,148) 1,607 206 1,813 Allowance, end of period $ 4,156 $ 78 $ 4,234 $ 7,347 $ 286 $ 7,633 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended September 30, 2021, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to loan sales and the improving credit environment. For the three months ended September 30, 2020, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to new loan originations. For the nine months ended September 30, 2021, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to the improving credit environment. For the nine months ended September 30, 2020, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the cumulative effect of adoption of ASU 2016-13 and new 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, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial Mortgage Loans Loan-to-Value Ratio: 0%-59.99% $ 157,985 $ 0 $ 103,674 $ 29,382 $ 96,901 $ 291,073 $ 679,015 60%-69.99% 393,844 47,418 155,279 57,978 49,793 49,700 754,012 70%-79.99% 273,159 72,241 63,464 0 21,282 73,576 503,722 80% or greater 0 0 0 0 0 20,361 20,361 Total $ 824,988 $ 119,659 $ 322,417 $ 87,360 $ 167,976 $ 434,710 $ 1,957,110 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 802,988 $ 119,659 $ 291,455 $ 76,739 $ 134,416 $ 409,620 $ 1,834,877 1.0 - 1.2x 22,000 0 19,890 10,621 12,278 4,846 69,635 Less than 1.0x 0 0 11,072 0 21,282 20,244 52,598 Total $ 824,988 $ 119,659 $ 322,417 $ 87,360 $ 167,976 $ 434,710 $ 1,957,110 Agricultural Property Loans Loan-to-Value Ratio: 0%-59.99% $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 5,908 $ 88,528 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 3,439 3,439 Total $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial Mortgage Loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 114,636 $ 36,423 $ 116,130 $ 175,740 $ 255,848 $ 698,777 60%-69.99% 174,507 204,112 59,935 90,954 57,569 54,530 641,607 70%-79.99% 81,671 51,333 10,806 80,257 56,169 46,855 327,091 80% or greater 0 0 0 0 0 1,103 1,103 Total $ 256,178 $ 370,081 $ 107,164 $ 287,341 $ 289,478 $ 358,336 $ 1,668,578 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 256,178 $ 347,151 $ 107,164 $ 287,341 $ 274,124 $ 323,060 $ 1,595,018 1.0 - 1.2x 0 22,930 0 0 3,969 18,420 45,319 Less than 1.0x 0 0 0 0 11,385 16,856 28,241 Total $ 256,178 $ 370,081 $ 107,164 $ 287,341 $ 289,478 $ 358,336 $ 1,668,578 Agricultural Property Loans Loan-to-Value Ratio: 0%-59.99% $ 47,245 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 102,312 60%-69.99% 2,262 0 0 0 0 0 2,262 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 49,507 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 104,574 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 49,507 $ 13,769 $ 1,255 $ 4,277 $ 1,180 $ 27,783 $ 97,771 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 3,216 0 3,587 6,803 Total $ 49,507 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 104,574 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2021 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,957,110 $ 0 $ 0 $ 0 $ 1,957,110 $ 0 Agricultural property loans 91,967 0 0 0 91,967 0 Total $ 2,049,077 $ 0 $ 0 $ 0 $ 2,049,077 $ 0 (1) As of September 30, 2021, there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. December 31, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,668,578 $ 0 $ 0 $ 0 $ 1,668,578 $ 0 Agricultural property loans 104,574 0 0 0 104,574 0 Total $ 1,773,152 $ 0 $ 0 $ 0 $ 1,773,152 $ 0 (1) As of December 31, 2020, there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. The Company did not have any commercial mortgage and other loans purchased with credit deterioration as of both September 30, 2021 and December 31, 2020. For both the three months ended September 30, 2021 and 2020, there were $0 million of commercial mortgage loans acquired, other than those through direct origination. For the three months ended September 30, 2021 and 2020, there were $707 million and $0 million, respectively, of commercial mortgage and other loans sold. For the nine months ended September 30, 2021 and 2020, there were $167 million and $0 million, respectively, of commercial mortgage loans acquired, other than those through direct origination. For the nine months ended September 30, 2021 and 2020, there were $707 million and $0 million, respectively, of commercial mortgage and other loans sold. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) LPs/LLCs: Equity method: Private equity $ 21,756 $ 28,955 Hedge funds 0 340,951 Real estate-related 60,578 244,041 Subtotal equity method 82,334 613,947 Fair value: Private equity 3,829 4,220 Hedge funds 161 172 Real estate-related 5,639 6,220 Subtotal fair value 9,629 10,612 Total LPs/LLCs 91,963 624,559 Derivative instruments 4,197 194,251 Total other invested assets $ 96,160 $ 818,810 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturities $ 69,573 $ 116,342 Equity securities 0 1 Commercial mortgage and other loans 4,345 4,828 Policy loans 12 11 Short-term investments and cash equivalents 85 158 Other(1) 0 264 Total accrued investment income $ 74,015 $ 121,604 (1) Primarily includes affiliated accrued income. There were no write-downs on accrued investment income for both the three months and nine months ended September 30, 2021 and 2020. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 79,832 $ 113,538 $ 279,957 $ 323,737 Fixed maturities, trading 2,009 3,972 27,631 9,474 Equity securities 1,214 63 3,498 194 Commercial mortgage and other loans 14,140 13,898 46,266 42,517 Policy loans 222 182 462 538 Other invested assets 10,791 15,102 49,085 20,968 Short-term investments and cash equivalents 437 4,601 798 48,569 Gross investment income 108,645 151,356 407,697 445,997 Less: investment expenses (7,327) (6,687) (21,172) (19,865) Net investment income $ 101,318 $ 144,669 $ 386,525 $ 426,132 Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities(1) $ 140,824 $ 72 $ 1,196,569 $ 15,162 Commercial mortgage and other loans 28,276 (753) 27,818 (2,489) Derivatives(2) 4,906,067 (246,742) 6,139,403 (4,397,341) Other invested assets 5,393 1,405 8,961 2,875 Short-term investments and cash equivalents 131 44 112 2,364 Realized investment gains (losses), net $ 5,080,691 $ (245,974) $ 7,372,863 $ (4,379,429) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 153 $ 2 Fixed maturity securities, available-for-sale without an allowance 388,215 2,407,478 Derivatives designated as cash flow hedges(1) 15,009 (43,000) Affiliated notes, available-for-sale 0 4,629 Net unrealized gains (losses) on investments $ 403,377 $ 2,369,109 (1) For more information on cash flow hedges, see Note 4. Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both September 30, 2021 and December 31, 2020, the Company had no repurchase agreements or securities lending transactions. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. DERIVATIVES AND HEDGING Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include but are not necessarily limited to: • Interest rate contracts: futures, swaps, forwards, 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 Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. September 30, 2021 December 31, 2020 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 898,672 $ 26,388 $ (10,653) $ 1,376,290 $ 23,167 $ (82,625) Total Derivatives Designated as Hedge Accounting Instruments $ 898,672 $ 26,388 $ (10,653) $ 1,376,290 $ 23,167 $ (82,625) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 12,000 $ 142 $ 0 $ 4,597,200 $ 2,755 $ (1,621) Interest Rate Swaps 10,663,230 373,323 (375,201) 131,129,200 12,448,036 (9,540,941) Interest Rate Options 0 0 0 10,198,000 608,538 (178,563) Interest Rate Forwards 0 0 0 75,000 464 0 Foreign Currency Foreign Currency Forwards 54,352 1,345 (123) 34,988 4 (557) Currency/Interest Rate Foreign Currency Swaps 463,694 11,752 (1,645) 228,117 7,939 (8,440) Credit Credit Default Swaps 1,672,000 45,520 0 1,574,173 38,875 (52) Equity Equity Futures 1,744,706 6,006 (7,336) 5,558,882 9,424 (24,688) Total Return Swaps 4,336,238 54,807 (48,142) 22,121,729 62,362 (1,162,907) Equity Options 18,019,904 477,178 (804,210) 23,856,379 1,617,672 (952,452) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 36,966,124 $ 970,073 $ (1,236,657) $ 199,373,668 $ 14,796,069 $ (11,870,221) Total Derivatives(1)(2) $ 37,864,796 $ 996,461 $ (1,247,310) $ 200,749,958 $ 14,819,236 $ (11,952,846) (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 $4,200 million and $17,314 million as of September 30, 2021 and December 31, 2020, respectively included in “Future policy benefits” and $1,458 million and $580 million as of September 30, 2021 and December 31, 2020, respectively included in “Policyholders’ account balances". Other assets included $69 million and $54 million as of September 30, 2021 and December 31, 2020, respectively. Other liabilities included $31 million and $35 million as of September 30, 2021 and December 31, 2020, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $302 million and $471 million as of September 30, 2021 and December 31, 2020, respectively. (2) Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Unaudited Interim 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 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 Statements of Financial Position. September 30, 2021 Gross Gross Amounts Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Offsetting of Financial Liabilities: Derivatives $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 December 31, 2020 Gross Gross Amounts Net Amounts Presented in the Statements of Financial Position Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 14,819,236 $ (14,624,985) $ 194,251 $ 0 $ 194,251 Securities purchased under agreements to resell 150,000 0 150,000 (150,000) 0 Total Assets $ 14,969,236 $ (14,624,985) $ 344,251 $ (150,000) $ 194,251 Offsetting of Financial Liabilities: Derivatives $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, or equity derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2021 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 3,547 $ 2,085 $ 5,160 $ 32,718 Total cash flow hedges 3,547 2,085 5,160 32,718 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (62,751) 0 0 0 Currency 1,649 0 0 0 Currency/Interest Rate (9,413) 0 1 0 Credit 1,631 0 0 0 Equity (18,433) 0 0 0 Embedded Derivatives(2) 4,989,837 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: 4,902,520 0 1 0 Total $ 4,906,067 $ 2,085 $ 5,161 $ 32,718 Nine Months Ended September 30, 2021 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 7,789 $ 10,643 $ 10,662 $ 58,009 Total cash flow hedges 7,789 10,643 10,662 58,009 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,852,373) 0 0 0 Currency 1,803 0 0 0 Currency/Interest Rate 816 0 (35) 0 Credit 10,991 0 0 0 Equity (1,798,400) 0 0 0 Embedded Derivatives(2) 9,768,777 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: 6,131,614 0 (35) 0 Total $ 6,139,403 $ 10,643 $ 10,627 $ 58,009 Three Months Ended September 30, 2020 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (194) $ 4,581 $ (13,989) $ (45,498) Total cash flow hedges (194) 4,581 (13,989) (45,498) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (995,815) 0 0 0 Currency (837) 0 0 0 Currency/Interest Rate (17,813) 0 (105) 0 Credit (344) 0 0 0 Equity (2,116,755) 0 0 0 Embedded Derivatives 2,885,016 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: (246,548) 0 (105) 0 Total $ (246,742) $ 4,581 $ (14,094) $ (45,498) Nine Months Ended September 30, 2020 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 4,373 $ 13,509 $ (6,694) $ 22,964 Total cash flow hedges 4,373 13,509 (6,694) 22,964 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 5,974,212 0 0 0 Currency 250 0 0 0 Currency/Interest Rate 12,270 0 (36) 0 Credit (5,872) 0 0 0 Equity (1,931,846) 0 0 0 Embedded Derivatives (8,450,728) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: (4,401,714) 0 (36) 0 Total $ (4,397,341) $ 13,509 $ (6,730) $ 22,964 (1) Net change in AOCI. (2) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2020 $ (43,000) Amount recorded in AOCI Currency/Interest Rate 87,103 Total amount recorded in AOCI 87,103 Amount reclassified from AOCI to income Currency/Interest Rate (29,094) Total amount reclassified from AOCI to income (29,094) Balance, September 30, 2021 $ 15,009 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 Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using September 30, 2021 values, it is estimated that a pre-tax gain of $10 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending September 30, 2022. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Credit Derivatives Credit derivatives, where the Company has written credit protection on certain index references, had outstanding notional amounts of $1,672 million and $1,568 million as of September 30, 2021 and December 31, 2020, respectively. These credit derivatives are reported at fair value as an asset of $45 million and $39 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 the notional amount of these credit derivatives had the following NAIC rating: $1,597 million in NAIC 3 and $75 million in NAIC 6. The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0 million and $6 million reported as of September 30, 2021 and December 31, 2020, respectively, with a fair value of $0 million for both periods. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding, LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. September 30, 2021 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 711,685 $ 15,000 $ $ 726,685 Obligations of U.S. states and their political subdivisions 0 297,449 0 297,449 Foreign government bonds 0 177,417 0 177,417 U.S. corporate public securities 0 3,007,070 0 3,007,070 U.S. corporate private securities 0 1,999,725 103,129 2,102,854 Foreign corporate public securities 0 757,407 201 757,608 Foreign corporate private securities 0 1,210,413 120,358 1,330,771 Asset-backed securities(2) 0 1,239,072 34,592 1,273,664 Commercial mortgage-backed securities 0 822,917 0 822,917 Residential mortgage-backed securities 0 60,695 20,020 80,715 Subtotal 0 10,283,850 293,300 10,577,150 Fixed maturities, trading 0 340,174 1,750 341,924 Equity securities 225,561 0 834 226,395 Short-term investments 34,997 43,545 11,770 90,312 Cash equivalents 354,986 930,245 0 1,285,231 Other invested assets(3) 6,148 990,313 0 (992,264) 4,197 Other assets 0 0 69,396 69,396 Reinsurance recoverables 0 0 302,251 302,251 Receivables from parent and affiliates 0 0 0 0 Subtotal excluding separate account assets 621,692 12,588,127 679,301 (992,264) 12,896,856 Separate account assets(4) 0 31,916,178 0 31,916,178 Total assets $ 621,692 $ 44,504,305 $ 679,301 $ (992,264) $ 44,813,034 Future policy benefits(5) $ 0 $ 0 $ 4,199,893 $ $ 4,199,893 Policyholders' account balances 0 0 1,457,772 1,457,772 Payables to parent and affiliates 0 1,239,681 0 (957,128) 282,553 Other liabilities 7,629 31,175 0 (3,390) 35,414 Total liabilities $ 7,629 $ 1,270,856 $ 5,657,665 $ (960,518) $ 5,975,632 December 31, 2020 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 8,887,432 $ 15,000 $ $ 8,902,432 Obligations of U.S. states and their political subdivisions 0 277,491 0 277,491 Foreign government bonds 0 177,383 0 177,383 U.S. corporate public securities 0 3,450,407 0 3,450,407 U.S. corporate private securities 0 1,804,855 82,208 1,887,063 Foreign corporate public securities 0 541,644 181 541,825 Foreign corporate private securities 0 1,427,537 66,298 1,493,835 Asset-backed securities(2) 0 974,041 18,542 992,583 Commercial mortgage-backed securities 0 785,942 0 785,942 Residential mortgage-backed securities 0 75,724 0 75,724 Subtotal 0 18,402,456 182,229 18,584,685 Fixed maturities, trading 0 1,109,097 5,045 1,114,142 Equity securities 234,452 39,477 4,153 278,082 Short-term investments 0 143,161 10,000 153,161 Cash equivalents 0 533,133 0 533,133 Other invested assets(3) 39,906 14,779,330 0 (14,624,985) 194,251 Other assets 0 0 53,980 53,980 Reinsurance recoverables 0 62,232 409,013 471,245 Receivables from parent and affiliates 0 56,026 0 56,026 Subtotal excluding separate account assets 274,358 35,124,912 664,420 (14,624,985) 21,438,705 Separate account assets(4) 0 32,205,296 0 32,205,296 Total assets $ 274,358 $ 67,330,208 $ 664,420 $ (14,624,985) $ 53,644,001 Future policy benefits(5) $ 0 $ 0 $ 17,314,004 $ $ 17,314,004 Policyholders' account balances 0 0 580,184 580,184 Payables to parent and affiliates 0 11,926,536 0 (11,926,536) 0 Other liabilities 26,309 33,416 0 (9,523) 50,202 Total liabilities $ 26,309 $ 11,959,952 $ 17,894,188 $ (11,936,059) $ 17,944,390 (1) “Netting” amounts represent cash collateral of $32 million and $2,689 million as of September 30, 2021 and December 31, 2020, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At September 30, 2021 and December 31, 2020, the fair values of such investments were $9.6 million and $10.6 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 Statements of Financial Position. (5) As of September 30, 2021, the net embedded derivative liability position of $4,200 million includes $58 million of embedded derivatives in an asset position and $4,258 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $17,314 million includes $455 million of embedded derivatives in an asset position and $17,769 million of embedded derivatives in a liability position. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. September 30, 2021 Fair Value Valuation Techniques Unobservable Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 190,885 Discounted cash flow Discount rate 2.34 % 16.44 % 4.43 % Decrease Market Comparables EBITDA multiples(3) 6.5X 12.4X 8.9X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 302,251 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 4,199,893 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 17 % 26 % Increase Policyholders' account balances(5) $ 1,457,772 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Equity volatility curve 6 % 34 % Increase December 31, 2020 Fair Value Valuation Techniques Unobservable Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 59,960 Discounted cash flow Discount rate 0.99 % 20 % 6.53 % Decrease Reinsurance recoverables $ 409,013 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 17,314,004 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 580,184 Discounted cash flow Lapse rate(6) 1 % 40 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Equity volatility curve(11) 6 % 42 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s 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. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception.The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2021 and December 31, 2020, the minimum withdrawal rate assumption is 76% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (11) Prior period amount has been updated. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 232,200 (6,046) 142,922 (10,700) 0 (14,040) (122,057) 1,409 0 223,688 (5,886) Structured securities(5) 216,363 2 32,350 0 0 (1,894) (19,859) 0 (172,350) 54,612 323 Other assets: Fixed maturities, trading 5,350 0 1,750 0 0 0 0 0 (5,350) 1,750 0 Equity securities 4,684 24 0 0 0 0 (3,874) 0 0 834 24 Short term investments 22,921 128 6,344 0 0 (17,567) (56) 0 0 11,770 0 Cash equivalents 25 0 0 0 0 0 (25) 0 0 0 0 Other assets 68,305 798 1,026 0 0 (733) 0 0 0 69,396 65 Reinsurance recoverables 302,009 (4,026) 4,268 0 0 0 0 0 0 302,251 (1,469) Liabilities: Future policy benefits (12,530,109) 8,379,775 0 0 (49,559) 0 0 0 0 (4,199,893) 13,942 Policyholders' account balances(6) (1,361,320) (8,465) 0 0 (87,987) 0 0 0 0 (1,457,772) 543,302 Three Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 281 $ 0 $ (6,335) $ 10 $ (2,172) $ 0 $ (3,391) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 24 0 0 0 24 0 Short term investments 128 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 798 0 0 0 65 0 0 Reinsurance recoverables (4,026) 0 0 0 (1,469) 0 0 Liabilities: Future policy benefits 8,379,775 0 0 0 13,942 0 0 Policyholders' account balances (8,465) 0 0 0 543,302 0 0 Nine Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 148,687 (4,632) 249,431 (10,700) 0 (45,362) (122,057) 16,556 (8,235) 223,688 (6,409) Structured securities(5) 18,542 (838) 235,148 0 0 (6,031) (19,859) 0 (172,350) 54,612 (519) Other assets: Fixed maturities, trading 5,045 305 1,750 0 0 0 0 0 (5,350) 1,750 311 Equity securities 4,153 555 0 0 0 0 (3,874) 0 0 834 555 Short term investments 10,000 90 30,386 0 0 (29,290) 44 540 0 11,770 (34) Cash equivalents 0 (13) 138 0 0 0 (125) 0 0 0 (13) Other assets 53,980 14,077 7,492 0 0 (6,153) 0 0 0 69,396 7,924 Reinsurance recoverables 409,013 (119,574) 12,812 0 0 0 0 0 0 302,251 (106,025) Liabilities: Future policy benefits (17,314,004) 13,745,555 0 0 (631,444) 0 0 0 0 (4,199,893) 1,281,075 Policyholders' account balances(6) (580,184) (516,443) 0 0 (361,145) 0 0 0 0 (1,457,772) 79,361 Nine Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2,734) $ 0 $ (2,766) $ 30 $ (5,210) $ 0 $ (1,718) Other assets: Fixed maturities, trading 0 311 0 (6) 0 311 0 Equity securities 0 555 0 0 0 555 0 Short term investments 94 0 0 (4) (34) 0 0 Cash equivalents (13) 0 0 0 (13) 0 0 Other assets 14,077 0 0 0 7,924 0 0 Reinsurance recoverables (119,574) 0 0 0 (106,025) 0 0 Liabilities: Future policy benefits 13,745,555 0 0 0 1,281,075 0 0 Policyholders' account balances (516,443) 0 0 0 79,361 0 0 Three Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 12,216 $ 0 $ 1,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 123,389 1,827 13,775 7,775 0 (8,624) (7,775) 7,819 (795) 137,391 1,689 Structured securities(5) 18,128 169 1,899 0 0 (599) 0 312 0 19,909 157 Other assets: Fixed maturities, trading 4,301 365 0 0 0 0 0 0 0 4,666 371 Equity securities 5,242 938 0 0 0 0 0 0 0 6,180 939 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 27,136 2,844 10,789 0 0 (4) 0 0 0 40,765 2,840 Reinsurance recoverables 539,123 (55,075) 4,287 0 0 0 0 0 0 488,335 (51,944) Liabilities: Future policy benefits (23,998,671) 2,964,808 0 0 (291,756) 0 0 0 0 (21,325,619) 2,776,482 Policyholders' account balances(6) (226,072) (34,565) 0 0 (42,423) 0 0 0 0 (303,060) (22,855) Three Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 254 $ 0 $ 1,683 $ 59 $ 414 $ 0 $ 1,432 Other assets: Fixed maturities, trading 0 371 0 (6) 0 371 0 Equity securities 0 938 0 0 0 939 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 2,844 0 0 0 2,840 0 0 Reinsurance recoverables (55,075) 0 0 0 (51,944) 0 0 Liabilities: Future policy benefits 2,964,808 0 0 0 2,776,482 0 0 Policyholders' account balances (34,565) 0 0 0 (22,855) 0 0 Nine Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 10,547 $ 0 $ 2,669 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 104,267 (4,337) 28,948 (1,190) 0 (14,434) (7,775) 32,951 (1,039) 137,391 (6,353) Structured securities(5) 18,825 38 8,044 0 0 (1,674) 0 312 (5,636) 19,909 26 Other assets: Fixed maturities, trading 4,464 202 0 0 0 0 0 0 0 4,666 218 Equity securities 5,247 933 0 0 0 0 0 0 0 6,180 934 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 8,059 3,789 28,923 0 0 (6) 0 0 0 40,765 3,784 Reinsurance recoverables 302,814 172,671 12,850 0 0 0 0 0 0 488,335 178,844 Liabilities: Future policy benefits (11,822,998) (8,644,255) 0 0 (858,366) 0 0 0 0 (21,325,619) (8,923,218) Policyholders' account balances(6) (196,892) (13,231) 0 0 (92,937) 0 0 0 0 (303,060) 9,727 Nine Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 87 $ 0 $ (4,442) $ 56 $ (567) $ 0 $ (5,760) Other assets: Fixed maturities, trading 0 218 0 (16) 0 218 0 Equity securities 0 933 0 0 0 934 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 3,789 0 0 0 3,784 0 0 Reinsurance recoverables 172,671 0 0 0 178,844 0 0 Liabilities: Future policy benefits (8,644,255) 0 0 0 (8,923,218) 0 0 Policyholders' account balances (13,231) 0 0 0 9,727 0 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Retitled to "Other income (loss)" to conform to current period presentation. Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. September 30, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,109,355 $ 2,109,355 $ 2,044,843 Policy loans 0 0 11,871 11,871 11,871 Short-term investments 5,001 0 0 5,001 5,001 Cash and cash equivalents 128,100 0 0 128,100 128,100 Accrued investment income 0 74,015 0 74,015 74,015 Reinsurance recoverables 0 0 9,017 9,017 8,106 Receivables from parent and affiliates 0 54,706 0 54,706 54,706 Other assets 0 22,145 422,855 445,000 445,000 Total assets $ 133,101 $ 150,866 $ 2,553,098 $ 2,837,065 $ 2,771,642 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 2,384,386 $ 2,384,386 $ 2,372,734 Short-term debt 0 0 0 0 0 Long-term debt 0 0 0 0 0 Reinsurance payables 0 0 0 0 0 Payables to parent and affiliates 0 47,222 0 47,222 47,222 Other liabilities 0 493,697 0 493,697 493,697 Separate account liabilities - investment contracts 0 10 0 10 10 Total liabilities $ 0 $ 540,929 $ 2,384,386 $ 2,925,315 $ 2,913,663 December 31, 2020 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,836,633 $ 1,836,633 $ 1,765,770 Policy loans 0 0 11,806 11,806 11,806 Short-term investments 165,000 0 0 165,000 165,000 Cash and cash equivalents 386,078 150,000 0 536,078 536,078 Accrued investment income 0 121,604 0 121,604 121,604 Reinsurance recoverables 0 0 51,225 51,225 50,484 Receivables from parent and affiliates 0 31,594 0 31,594 31,594 Other assets 0 278,355 394,069 672,424 672,424 Total assets $ 551,078 $ 581,553 $ 2,293,733 $ 3,426,364 $ 3,354,760 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 2,426,471 $ 2,426,471 $ 2,406,100 Short-term debt 0 121,205 0 121,205 119,671 Long-term debt 0 332,451 0 332,451 299,747 Reinsurance payables 0 0 44,446 44,446 44,446 Payables to parent and affiliates 0 47,345 0 47,345 47,345 Other liabilities 0 757,968 0 757,968 757,968 Separate account liabilities - investment contracts 0 30 0 30 30 Total liabilities $ 0 $ 1,258,999 $ 2,470,917 $ 3,729,916 $ 3,675,307 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Income tax expense (benefit)” divided by projected “Income (loss) from operations before income taxes”. 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 amounted to an income tax expense of $1,247 million, or 20.71% of income (loss) from operations before income taxes in the first nine months of 2021, compared to an income tax benefit of $(965) million, or 25.91%, in the first nine months of 2020. The Company’s current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company uses reinsurance as part of its risk management and capital management strategies for certain of its living benefit guarantees and variable annuity base contracts. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to affiliates. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance. This reinsurance covers new and in force business and excludes business reinsured externally. As of December 31, 2020, Pruco Life discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation has no impact on the reinsurance agreement between Pruco Life and the Company. Effective July 1, 2021, Pruco Life recaptured the risks related to its business, as discussed above, that had previously been reinsured to the Company from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in the Company, were transferred to Pruco Life. In addition, the living benefit hedging program related to the previously reinsured living benefit riders will be managed within Pruco Life. See Note 1 for the additional information. Effective December 31, 2015, the Company surrendered its New York license and reinsured the majority of its New York business, both the living benefit guarantees and base contracts, to Prudential Insurance. 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. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through "Realized investment gains (losses), net". See Note 4 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Reinsurance recoverables $ 384,614 $ 694,040 Deferred policy acquisition costs (53,181) 3,414,620 Deferred sales inducements (25,952) 374,631 Value of business acquired (2,053) (2,124) Other assets 55,470 61,471 Policyholders’ account balances 0 3,273,863 Future policy benefits 0 12,610,942 Reinsurance payables(1) 31,437 178,860 Other liabilities 0 262,462 (1) Includes $0 million and $2.3 million of unaffiliated activity as of September 30, 2021 and December 31, 2020, respectively. The reinsurance recoverables by counterparty are broken out below: September 30, 2021 December 31, 2020 (in thousands) Prudential Insurance $ 384,614 $ 494,611 Pruco Life 0 198,547 Unaffiliated 0 882 Total reinsurance recoverables $ 384,614 $ 694,040 Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Premiums: Direct $ 6,520 $ 6,161 $ 19,238 $ 20,376 Assumed 0 8,630 16,093 27,060 Ceded (863) (855) (2,635) (1,908) Net premiums 5,657 13,936 32,696 45,528 Policy charges and fee income: Direct 112,675 102,669 328,795 304,593 Assumed 0 395,381 819,191 1,161,236 Ceded(1) (6,538) (8,610) (20,118) (23,838) Net policy charges and fee income 106,137 489,440 1,127,868 1,441,991 Asset management and service fees(2): Direct 24,892 22,904 73,375 67,147 Assumed 0 78,549 165,177 227,614 Ceded (2,207) (2,034) (6,296) (5,852) Net asset management and service fees 22,685 99,419 232,256 288,909 Realized investment gains (losses), net: Direct (3,242,554) (2,520,872) (4,855,611) 1,878,766 Assumed 8,328,213 2,332,646 12,350,171 (6,422,045) Ceded (4,968) (57,748) (121,697) 163,850 Realized investment gains (losses), net 5,080,691 (245,974) 7,372,863 (4,379,429) Policyholders' benefits (including change in reserves): Direct 19,028 14,018 43,533 73,651 Assumed (256,596) 30,844 (253,812) 181,079 Ceded(3) (4,203) (1,038) (5,475) (6,145) Net policyholders' benefits (including change in reserves) (241,771) 43,824 (215,754) 248,585 Interest credited to policyholders’ account balances: Direct 43,018 40,428 139,185 73,983 Assumed 399,099 43,457 476,408 89,311 Ceded (1,662) (2,601) (5,969) (2,294) Net interest credited to policyholders’ account balances 440,455 81,284 609,624 161,000 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization 1,193,211 307,043 1,707,648 890,849 (1) Includes $(0.4) million and $(1.7) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(0.4) million and $(2.4) million for the nine months ended September 30, 2021 and 2020, respectively. (2) Prior period amounts updated to conform to current period presentation. (3) Includes $(2.9) million and $0.1 million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(3.3) million and $(0.3) million for the nine months ended September 30, 2021 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Statements of Operations and Comprehensive Income (Loss). The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2021 and 2020 are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2020 $ (708) $ 1,533,767 $ 1,533,059 Change in OCI before reclassifications (117) (354,151) (354,268) Amounts reclassified from AOCI 0 (1,225,663) (1,225,663) Income tax benefit (expense) 25 331,761 331,786 Balance, September 30, 2021 $ (800) $ 285,714 $ 284,914 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2019 $ (934) $ 429,546 $ 428,612 Change in OCI before reclassifications (154) 1,586,843 1,586,689 Amounts reclassified from AOCI 0 (26,350) (26,350) Income tax benefit (expense) 32 (327,704) (327,672) Balance, September 30, 2020 $ (1,056) $ 1,662,335 $ 1,661,279 (1) Includes cash flow hedges of $15 million and $(43) million as of September 30, 2021 and December 31, 2020, respectively, and $23 million and $0 million as of September 30, 2020 and December 31, 2019, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/ Interest rate(3) $ 10,792 $ (9,602) $ 29,094 $ 11,188 Net unrealized investment gains (losses) on available-for-sale securities 140,824 73 1,196,569 15,162 Total net unrealized investment gains (losses)(4) 151,616 (9,529) 1,225,663 26,350 Total reclassifications for the period $ 151,616 $ (9,529) $ 1,225,663 $ 26,350 (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 and future policy benefits 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 Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC and Other Costs(2) Future Policy Benefits and Other Liabilities(3) Income Tax Accumulated Other Comprehensive (in thousands) Balance, December 31, 2020 $ 2 $ 2,369,107 $ (363,429) $ (63,159) $ (408,754) $ 1,533,767 Net investment gains (losses) on investments arising during the period 2,017 (742,086) 0 0 155,611 (584,458) Reclassification adjustment for (gains) losses included in net income (1,991) (1,223,672) 0 0 257,295 (968,368) Reclassification due to allowance for credit losses recorded during the period 125 (125) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 325,247 60,671 (81,145) 304,773 Balance, September 30, 2021 $ 153 $ 403,224 $ (38,182) $ (2,488) $ (76,993) $ 285,714 (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables, DSI and VOBA. (3) "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations The majority of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.1 million and $0.0 million for the three months ended September 30, 2021 and 2020, respectively, and $0.4 million and $0.1 million for the nine months ended September 30, 2021 and 2020, respectively. The expense charged to the Company for the deferred compensation program was $0.3 million and $0.2 million for the three months ended September 30, 2021 and 2020, respectively, and $1.5 million and $0.5 million for the nine months ended September 30, 2021 and 2020, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $2.4 million and $0.9 million for the three months ended September 30, 2021 and 2020, respectively, and $7.1 million and $2.0 million for the nine months ended September 30, 2021 and 2020, respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $0.9 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $2.9 million and $1.6 million for the nine months ended September 30, 2021 and 2020, respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $0.9 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $2.7 million and $0.8 million for the nine months ended September 30, 2021 and 2020, respectively. 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 products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s products. Commissions and fees paid by the Company to PAD were $110 million and $61 million for the three months ended September 30, 2021 and 2020, respectively, and $347 million and $113 million for the nine months ended September 30, 2021 and 2020, respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $7 million and $5 million for the three months ended September 30, 2021 and 2020, respectively, and $20 million and $11 million for the nine months ended September 30, 2021 and 2020, 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 $7 million and $6 million for the three months ended September 30, 2021 and 2020, respectively, and $18 million and $16 million for the nine months ended September 30, 2021 and 2020, respectively. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $0 million and $534 million as of September 30, 2021 and December 31, 2020, respectively. "Net investment income" related to these ventures includes a loss of $0 million and a gain of $8 million for the three months ended September 30, 2021 and 2020, respectively, and gains of $17 million and $5 million for the nine months ended September 30, 2021 and 2020, respectively. Effective July 1, 2021, the Company transferred these investments in joint ventures to Pruco Life. See Note 1 for additional information. Affiliated Asset Management and Service Fees 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 and The Prudential Series Fund. Income received from ASTISI and PGIM Investments related to this agreement was $24 million and $23 million for the three months ended September 30, 2021 and 2020, respectively, and $72 million and $66 million for the nine months ended September 30, 2021 and 2020, respectively. These revenues are recorded as “Asset management and service fees” in the Company's Unaudited Inte Affiliated Notes Receivable Affiliated notes receivable included in "Receivables from parent and affiliates" at September 30, 2021 and December 31, 2020 were as follows: Maturity Dates Interest Rates September 30, 2021 December 31, 2020 (in thousands) U.S. dollar fixed rate notes 2026 - 2027 2.62% - 14.85 % $ 0 $ 56,025 Total long-term notes receivable - affiliated(1) $ 0 $ 56,025 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Effective August 2021, the Company transferred these affiliated loan receivables to Pruco Life at fair value. Accrued interest receivable related to these loans was $0.0 million at both September 30, 2021 and December 31, 2020 and is included in “Other assets”. Revenues related to these loans were $0.2 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $0.9 million and $1.1 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in “Asset management and service fees”. Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2021 and December 31, 2020 was as follows: Maturity Date Interest Rate September 30, 2021 December 31, 2020 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.58% $ 0 $ 74,005 The commercial mortgage loan shown above is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage on an on-going basis. This affiliated commercial mortgage loan was transferred to Pruco Life as part of the 2021 Variable Annuities Recapture. See Note 1 for additional information. Accrued interest receivable related to the loan was $0.0 million and $0.3 million at September 30, 2021 and December 31, 2020, respectively, and is included in "Accrued investment income". Revenues were $0.0 million and $0.9 million for the three months ended September 30, 2021 and 2020, respectively, and $1.7 million and $1.2 million for the nine months ended September 30, 2021 and 2020, 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, 2021 and for the year ended December 31, 2020, excluding those related to the 2021 Variable Recapture, as described in Note 1. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential International Insurance Service Company March 2020 Purchase Fixed Maturities $ 107,014 $ 107,014 $ 0 $ 0 Prudential Insurance March 2020 Purchase Fixed Maturities $ 258,885 $ 258,885 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 91,131 $ 91,131 $ 0 $ 0 Prudential Insurance June 2020 Sale Fixed Maturities $ 65,646 $ 57,699 $ 0 $ 7,947 Gibraltar Life Insurance Company June 2020 Purchase Fixed Maturities $ 222,091 $ 222,091 $ 0 $ 0 Prudential Insurance April 2021 Purchase Fixed Maturities $ 200,873 $ 200,873 $ 0 $ 0 Prudential Insurance April 2021 Purchase Commercial Mortgage Loan $ 176,904 $ 176,904 $ 0 $ 0 Vantage Casualty Insurance Co. June 2021 Purchase Fixed Maturities $ 14,662 $ 14,662 $ 0 $ 0 Prudential Insurance June 2021 Sale Equities $ 3,050 $ 3,013 $ 0 $ 37 Pruco Life June 2021 Sale Equities $ 40,284 $ 38,026 $ 0 $ 2,258 Passaic Fund LLC June 2021 Transfer Out Other Invested Assets $ 12,350 $ 12,350 $ 0 $ 0 Passaic Fund LLC July 2021 Transfer Out Other Invested Assets $ 195,776 $ 195,926 $ 0 $ (150) Prudential Insurance September 2021 Purchase Fixed Maturities $ 2,104 $ 2,104 $ 0 $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 11,788 $ 10,844 $ 0 $ 944 Prudential Retirement Insurance and Annuity Company September 2021 Sale Fixed Maturities $ 26,086 $ 24,349 $ 0 $ 1,737 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Retirement Insurance and Annuity Company September 2021 Purchase Fixed Maturities $ 35,311 $ 35,311 $ 0 $ 0 Prudential Insurance September 2021 Purchase Derivatives $ 71 $ 71 $ 0 $ 0 Prudential Retirement Insurance and Annuity Company September 2021 Purchase Derivatives $ (991) $ (991) $ 0 $ 0 Debt Agreements The Company is authorized to borrow funds up to $9 billion from Prudential Financial and its affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short and long-term debt to affiliates as of September 30, 2021 and December 31, 2020: Affiliate Date Amount of Notes - September 30, 2021 Amount of Notes - December 31, 2020 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 0 $ 93,671 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 0 93,671 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 0 28,102 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 0 93,671 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 0 37,468 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 0 46,835 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 0 26,000 2.59 % 6/28/2021 Total Loans Payable to Affiliates $ 0 $ 419,418 Effective August 2021, $300 million in long-term debt was transferred from the Company to Pruco Life based on the market value of the loans plus accrued interest which totaled $326 million. The Company recognized a loss of $24 million on the transfer. The $300 million debt was legally extinguished. The total interest expense to the Company related to affiliated loans and cash collateral with PGF was $1 million and $9 million for the three months ended September 30, 2021 and 2020, respectively, and $9 million and $45 million for the nine months ended September 30, 2021 and 2020, respectively. Contributed Capital and Dividends Through September 2021 and December 2020, the Company did not receive any capital contributions. In July 2021, in connection with the 2021 Variable Annuities Recapture, there was a $3,813 million return of capital to PAI. In March, June, September and December 2020, there was a $207 million, $173 million, $192 million and $188 million return of capital, respectively, to PAI. In March and June 2021, the Company paid a dividend of $192 million and $188 million, respectively, to PAI. In 2020, the Company did not pay any dividends to PAI. Reinsurance with Affiliates As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of September 30, 2021 and December 31, 2020, the outstanding balances on these commitments were $303 million and $48 million, respectively. These amounts include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses o f $0.0 million as of both September 30, 2021 and December 31, 2020. There was a change in allowance of $0.0 million for both the three and nine months ended September 30, 2021 and 2020. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of September 30, 2021 and December 31, 2020, $652 million and $305 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for either the three or nine months ended September 30, 2021 or 2020. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of September 30, 2021, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $150 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 15 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Regulatory Variable Products The Company has received regulatory inquiries and requests for information from state and federal regulators, including a subpoena from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim 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”). 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 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining DAC and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain annuity products; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of September 30, 2021, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of September 30, 2021 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, in November 2020, the FASB issued ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application to defer for an additional one year the effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance either as of January 1, 2020 or January 1, 2021 (and record transition adjustments as of January 1, 2020 or January 1, 2021, respectively) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. The Company currently intends to adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. The Company expects the standard to have a significant financial impact on the Financial Statements and will significantly enhance disclosures. In addition to the significant impacts to the balance sheet upon adoption, the Company also expects an impact to the pattern of earnings emergence following the transition date. Outlined below are four key areas of change, although there are other less significant changes not noted below. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in Accumulated other comprehensive income (loss) ("AOCI") or (2) a full retrospective transition method. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. The impacts of electing such method are currently under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of either the beginning of the prior year (if early adoption is elected)or the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. As noted above, the Company currently intends to adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. Upon adoption, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between discount rates locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of DAC and other balances Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a full retrospective transition method for DAC and other balances. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits ("MRB") Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change in MRB liabilities attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of either the beginning of prior year (if early adoption is elected) or the beginning of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. The Company currently intends to adopt this guidance effective January 1, 2023 using the retrospective transition method. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Reinsurance | The financial statement impacts of this transaction are as follows: Unaudited Interim Statement of Financial Position Balance as of June 30, 2021 Impacts of Recapture Total as of July 1, 2021 (in millions) ASSETS Total investments(1)(2) $ 20,501 $ (8,327) $ 12,174 Cash and cash equivalents 2,091 (409) 1,682 Deferred policy acquisition costs 4,215 (3,286) 929 Accrued investment income 110 (42) 68 Reinsurance recoverables 567 (181) 386 Income tax receivable 1,707 (787) 920 Value of business acquired 28 0 28 Deferred sales inducements 692 (388) 304 Receivables from parent and affiliates 114 (41) 73 Other assets 544 0 544 Separate account assets 32,934 0 32,934 TOTAL ASSETS $ 63,503 $ (13,461) $ 50,042 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 13,707 $ (9,048) $ 4,659 Policyholders’ account balances 12,617 (3,199) 9,418 Payables to parent and affiliates 34 0 34 Long-term debt 300 0 300 Reinsurance payable 148 (115) 33 Other liabilities 805 (245) 560 Separate account liabilities 32,934 0 32,934 Total Liabilities 60,545 (12,607) 47,938 EQUITY Common stock 3 0 3 Additional paid-in capital(3) 4,383 (3,786) 597 Retained earnings (1,782) 3,026 1,244 Accumulated other comprehensive income 354 (94) 260 Total equity 2,958 (854) 2,104 TOTAL LIABILITIES AND EQUITY $ 63,503 $ (13,461) $ 50,042 Significant non-cash transactions (1) The decrease in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred an increase related to ceding commissions of $2.0 billion received from Pruco Life. (3) The decrease in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to return of capital to PAI. Unaudited Interim Statement of Operations and Comprehensive Income (Loss) For the three and nine months ended September 30, 2021 Impacts of Recapture (in millions) REVENUES Other income (loss) $ 1 Realized investment gains (losses), net 5,142 TOTAL REVENUES 5,143 BENEFITS AND EXPENSES Policyholders’ benefits (257) Interest credited to policyholders’ account balances 399 Commission expense 1,362 General, administrative and other expenses (191) TOTAL BENEFITS AND EXPENSES 1,313 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 3,830 Income tax expense (benefit) 804 NET INCOME (LOSS) $ 3,026 Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) Pruco Life July 1, 2021 Sale Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,720 $ 0 $ 173 $ 15 PAI July 1, 2021 Return of Capital Fixed Maturities $ 3,420 $ 3,420 $ (3,420) $ 0 $ 0 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 669,350 $ 57,637 $ 302 $ 0 $ 726,685 Obligations of U.S. states and their political subdivisions 283,487 14,845 883 0 297,449 Foreign government bonds 164,023 14,207 813 0 177,417 U.S. public corporate securities 2,843,576 180,349 16,855 0 3,007,070 U.S. private corporate securities 2,037,889 73,950 6,759 2,226 2,102,854 Foreign public corporate securities 744,178 17,155 3,725 0 757,608 Foreign private corporate securities 1,311,604 43,078 23,911 0 1,330,771 Asset-backed securities(1) 1,266,654 7,321 311 0 1,273,664 Commercial mortgage-backed securities 793,065 36,371 6,519 0 822,917 Residential mortgage-backed securities(2) 77,182 3,562 29 0 80,715 Total fixed maturities, available-for-sale $ 10,191,008 $ 448,475 $ 60,107 $ 2,226 $ 10,577,150 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, equipment leases, home equity loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 7,283,403 $ 1,631,715 $ 12,686 $ 0 $ 8,902,432 Obligations of U.S. states and their political subdivisions 258,135 19,512 156 0 277,491 Foreign government bonds 153,009 24,378 4 0 177,383 U.S. public corporate securities 3,112,420 339,348 1,361 0 3,450,407 U.S. private corporate securities 1,736,035 155,943 4,706 209 1,887,063 Foreign public corporate securities 513,204 29,029 408 0 541,825 Foreign private corporate securities 1,338,936 158,227 2,851 477 1,493,835 Asset-backed securities(1) 984,318 9,870 1,605 0 992,583 Commercial mortgage-backed securities 728,522 57,522 102 0 785,942 Residential mortgage-backed securities(2) 69,909 5,818 3 0 75,724 Total fixed maturities, available-for-sale $ 16,177,891 $ 2,431,362 $ 23,882 $ 686 $ 18,584,685 (1) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, equipment leases and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,479 $ 302 $ 0 $ 0 $ 74,479 $ 302 Obligations of U.S. states and their political subdivisions 3,491 72 8,784 811 12,275 883 Foreign government bonds 18,592 813 0 0 18,592 813 U.S. public corporate securities 907,661 16,191 9,998 664 917,659 16,855 U.S. private corporate securities 479,408 6,722 2,491 37 481,899 6,759 Foreign public corporate securities 438,175 3,464 3,722 261 441,897 3,725 Foreign private corporate securities 589,332 23,737 2,848 174 592,180 23,911 Asset-backed securities 316,315 309 5,002 2 321,317 311 Commercial mortgage-backed securities 214,547 6,226 6,971 293 221,518 6,519 Residential mortgage-backed securities 7,245 26 74 3 7,319 29 Total fixed maturities, available-for-sale $ 3,049,245 $ 57,862 $ 39,890 $ 2,245 $ 3,089,135 $ 60,107 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 244,507 $ 12,686 $ 0 $ 0 $ 244,507 $ 12,686 Obligations of U.S. states and their political subdivisions 9,440 156 0 0 9,440 156 Foreign government bonds 257 1 87 3 344 4 U.S. public corporate securities 117,755 1,335 2,185 26 119,940 1,361 U.S. private corporate securities 35,411 2,614 16,071 2,092 51,482 4,706 Foreign public corporate securities 69,610 408 0 0 69,610 408 Foreign private corporate securities 11,679 188 50,809 2,663 62,488 2,851 Asset-backed securities 219,535 320 246,535 1,285 466,070 1,605 Commercial mortgage-backed securities 45,617 102 0 0 45,617 102 Residential mortgage-backed securities 0 0 80 3 80 3 Total fixed maturities, available-for-sale $ 753,811 $ 17,810 $ 315,767 $ 6,072 $ 1,069,578 $ 23,882 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 134,591 $ 136,840 Due after one year through five years 1,851,380 1,895,997 Due after five years through ten years 3,011,050 3,081,257 Due after ten years 3,057,086 3,285,760 Asset-backed securities 1,266,654 1,273,664 Commercial mortgage-backed securities 793,065 822,917 Residential mortgage-backed securities 77,182 80,715 Total fixed maturities, available-for-sale $ 10,191,008 $ 10,577,150 |
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 Nine Months Ended 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 215,523 $ 20,268 $ 8,008,956 $ 352,945 Proceeds from maturities/prepayments 195,328 88,208 606,621 220,109 Gross investment gains from sales and maturities 157,167 24 1,295,797 18,279 Gross investment losses from sales and maturities (14,452) (366) (75,069) (1,856) Write-downs recognized in earnings(2) 0 0 (22,619) (693) (Addition to) release of allowance for credit losses (1,891) 414 (1,540) (568) (1) Includes $(243.3) million and $0.2 million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2021 and 2020, respectively. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Three Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 335 $ 0 $ 0 $ 0 $ 335 Additions to allowance for credit losses not previously recorded 0 0 2,226 0 0 0 2,226 Reductions for securities sold during the period 0 0 (282) 0 0 0 (282) Addition (reductions) on securities with previous allowance 0 0 (53) 0 0 0 (53) Balance, end of period $ 0 $ 0 $ 2,226 $ 0 $ 0 $ 0 $ 2,226 Three Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 982 $ 0 $ 0 $ 0 $ 982 Additions to allowance for credit losses not previously recorded 0 0 216 0 0 0 216 Reductions for securities sold during the period 0 0 0 0 0 0 0 Addition (reductions) on securities with previous allowance 0 0 (630) 0 0 0 (630) Balance, end of period $ 0 $ 0 $ 568 $ 0 $ 0 $ 0 $ 568 Nine Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 686 $ 0 $ 0 $ 0 $ 686 Additions to allowance for credit losses not previously recorded 0 0 2,658 0 0 0 2,658 Reductions for securities sold during the period 0 0 (295) 0 0 0 (295) Addition (reductions) on securities with previous allowance 0 0 (823) 0 0 0 (823) Balance, end of period $ 0 $ 0 $ 2,226 $ 0 $ 0 $ 0 $ 2,226 Nine Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 1,384 0 0 0 1,384 Reductions for securities sold during the period 0 0 (2) 0 0 0 (2) Addition (reductions) on securities with previous allowance 0 0 (814) 0 0 0 (814) Balance, end of period $ 0 $ 0 $ 568 $ 0 $ 0 $ 0 $ 568 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 471,521 23.0 % $ 369,764 20.9 % Hospitality 28,525 1.4 16,679 0.9 Industrial 814,100 39.7 590,231 33.3 Office 323,811 15.8 374,107 21.1 Other 218,338 10.7 187,643 10.6 Retail 100,815 4.9 130,154 7.3 Total commercial mortgage loans 1,957,110 95.5 1,668,578 94.1 Agricultural property loans 91,967 4.5 104,574 5.9 Total commercial mortgage and agricultural property loans 2,049,077 100.0 % 1,773,152 100.0 % Allowance for credit losses (4,234) (7,382) Total net commercial mortgage and agricultural property loans $ 2,044,843 $ 1,765,770 |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 5,392 $ 191 $ 5,583 $ 6,701 $ 178 $ 6,879 Addition to (release of) allowance for expected losses (1,236) (113) (1,349) 646 108 754 Allowance, end of period $ 4,156 $ 78 $ 4,234 $ 7,347 $ 286 $ 7,633 Nine Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 7,116 $ 266 $ 7,382 $ 2,622 $ 41 $ 2,663 Cumulative effect of adoption of ASU 2016-13 0 0 0 3,118 39 3,157 Addition to (release of) allowance for expected losses (2,960) (188) (3,148) 1,607 206 1,813 Allowance, end of period $ 4,156 $ 78 $ 4,234 $ 7,347 $ 286 $ 7,633 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial Mortgage Loans Loan-to-Value Ratio: 0%-59.99% $ 157,985 $ 0 $ 103,674 $ 29,382 $ 96,901 $ 291,073 $ 679,015 60%-69.99% 393,844 47,418 155,279 57,978 49,793 49,700 754,012 70%-79.99% 273,159 72,241 63,464 0 21,282 73,576 503,722 80% or greater 0 0 0 0 0 20,361 20,361 Total $ 824,988 $ 119,659 $ 322,417 $ 87,360 $ 167,976 $ 434,710 $ 1,957,110 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 802,988 $ 119,659 $ 291,455 $ 76,739 $ 134,416 $ 409,620 $ 1,834,877 1.0 - 1.2x 22,000 0 19,890 10,621 12,278 4,846 69,635 Less than 1.0x 0 0 11,072 0 21,282 20,244 52,598 Total $ 824,988 $ 119,659 $ 322,417 $ 87,360 $ 167,976 $ 434,710 $ 1,957,110 Agricultural Property Loans Loan-to-Value Ratio: 0%-59.99% $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 5,908 $ 88,528 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 3,439 3,439 Total $ 38,000 $ 26,970 $ 13,711 $ 1,238 $ 2,701 $ 9,347 $ 91,967 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial Mortgage Loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 114,636 $ 36,423 $ 116,130 $ 175,740 $ 255,848 $ 698,777 60%-69.99% 174,507 204,112 59,935 90,954 57,569 54,530 641,607 70%-79.99% 81,671 51,333 10,806 80,257 56,169 46,855 327,091 80% or greater 0 0 0 0 0 1,103 1,103 Total $ 256,178 $ 370,081 $ 107,164 $ 287,341 $ 289,478 $ 358,336 $ 1,668,578 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 256,178 $ 347,151 $ 107,164 $ 287,341 $ 274,124 $ 323,060 $ 1,595,018 1.0 - 1.2x 0 22,930 0 0 3,969 18,420 45,319 Less than 1.0x 0 0 0 0 11,385 16,856 28,241 Total $ 256,178 $ 370,081 $ 107,164 $ 287,341 $ 289,478 $ 358,336 $ 1,668,578 Agricultural Property Loans Loan-to-Value Ratio: 0%-59.99% $ 47,245 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 102,312 60%-69.99% 2,262 0 0 0 0 0 2,262 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 49,507 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 104,574 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 49,507 $ 13,769 $ 1,255 $ 4,277 $ 1,180 $ 27,783 $ 97,771 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 3,216 0 3,587 6,803 Total $ 49,507 $ 13,769 $ 1,255 $ 7,493 $ 1,180 $ 31,370 $ 104,574 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2021 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,957,110 $ 0 $ 0 $ 0 $ 1,957,110 $ 0 Agricultural property loans 91,967 0 0 0 91,967 0 Total $ 2,049,077 $ 0 $ 0 $ 0 $ 2,049,077 $ 0 (1) As of September 30, 2021, there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. December 31, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,668,578 $ 0 $ 0 $ 0 $ 1,668,578 $ 0 Agricultural property loans 104,574 0 0 0 104,574 0 Total $ 1,773,152 $ 0 $ 0 $ 0 $ 1,773,152 $ 0 (1) As of December 31, 2020, there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) LPs/LLCs: Equity method: Private equity $ 21,756 $ 28,955 Hedge funds 0 340,951 Real estate-related 60,578 244,041 Subtotal equity method 82,334 613,947 Fair value: Private equity 3,829 4,220 Hedge funds 161 172 Real estate-related 5,639 6,220 Subtotal fair value 9,629 10,612 Total LPs/LLCs 91,963 624,559 Derivative instruments 4,197 194,251 Total other invested assets $ 96,160 $ 818,810 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturities $ 69,573 $ 116,342 Equity securities 0 1 Commercial mortgage and other loans 4,345 4,828 Policy loans 12 11 Short-term investments and cash equivalents 85 158 Other(1) 0 264 Total accrued investment income $ 74,015 $ 121,604 (1) Primarily includes affiliated accrued income. |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 79,832 $ 113,538 $ 279,957 $ 323,737 Fixed maturities, trading 2,009 3,972 27,631 9,474 Equity securities 1,214 63 3,498 194 Commercial mortgage and other loans 14,140 13,898 46,266 42,517 Policy loans 222 182 462 538 Other invested assets 10,791 15,102 49,085 20,968 Short-term investments and cash equivalents 437 4,601 798 48,569 Gross investment income 108,645 151,356 407,697 445,997 Less: investment expenses (7,327) (6,687) (21,172) (19,865) Net investment income $ 101,318 $ 144,669 $ 386,525 $ 426,132 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities(1) $ 140,824 $ 72 $ 1,196,569 $ 15,162 Commercial mortgage and other loans 28,276 (753) 27,818 (2,489) Derivatives(2) 4,906,067 (246,742) 6,139,403 (4,397,341) Other invested assets 5,393 1,405 8,961 2,875 Short-term investments and cash equivalents 131 44 112 2,364 Realized investment gains (losses), net $ 5,080,691 $ (245,974) $ 7,372,863 $ (4,379,429) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 153 $ 2 Fixed maturity securities, available-for-sale without an allowance 388,215 2,407,478 Derivatives designated as cash flow hedges(1) 15,009 (43,000) Affiliated notes, available-for-sale 0 4,629 Net unrealized gains (losses) on investments $ 403,377 $ 2,369,109 (1) For more information on cash flow hedges, see Note 4. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. September 30, 2021 December 31, 2020 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 898,672 $ 26,388 $ (10,653) $ 1,376,290 $ 23,167 $ (82,625) Total Derivatives Designated as Hedge Accounting Instruments $ 898,672 $ 26,388 $ (10,653) $ 1,376,290 $ 23,167 $ (82,625) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 12,000 $ 142 $ 0 $ 4,597,200 $ 2,755 $ (1,621) Interest Rate Swaps 10,663,230 373,323 (375,201) 131,129,200 12,448,036 (9,540,941) Interest Rate Options 0 0 0 10,198,000 608,538 (178,563) Interest Rate Forwards 0 0 0 75,000 464 0 Foreign Currency Foreign Currency Forwards 54,352 1,345 (123) 34,988 4 (557) Currency/Interest Rate Foreign Currency Swaps 463,694 11,752 (1,645) 228,117 7,939 (8,440) Credit Credit Default Swaps 1,672,000 45,520 0 1,574,173 38,875 (52) Equity Equity Futures 1,744,706 6,006 (7,336) 5,558,882 9,424 (24,688) Total Return Swaps 4,336,238 54,807 (48,142) 22,121,729 62,362 (1,162,907) Equity Options 18,019,904 477,178 (804,210) 23,856,379 1,617,672 (952,452) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 36,966,124 $ 970,073 $ (1,236,657) $ 199,373,668 $ 14,796,069 $ (11,870,221) Total Derivatives(1)(2) $ 37,864,796 $ 996,461 $ (1,247,310) $ 200,749,958 $ 14,819,236 $ (11,952,846) (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 $4,200 million and $17,314 million as of September 30, 2021 and December 31, 2020, respectively included in “Future policy benefits” and $1,458 million and $580 million as of September 30, 2021 and December 31, 2020, respectively included in “Policyholders’ account balances". Other assets included $69 million and $54 million as of September 30, 2021 and December 31, 2020, respectively. Other liabilities included $31 million and $35 million as of September 30, 2021 and December 31, 2020, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $302 million and $471 million as of September 30, 2021 and December 31, 2020, respectively. (2) Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Unaudited Interim 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 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 Statements of Financial Position. September 30, 2021 Gross Gross Amounts Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Offsetting of Financial Liabilities: Derivatives $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 December 31, 2020 Gross Gross Amounts Net Amounts Presented in the Statements of Financial Position Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 14,819,236 $ (14,624,985) $ 194,251 $ 0 $ 194,251 Securities purchased under agreements to resell 150,000 0 150,000 (150,000) 0 Total Assets $ 14,969,236 $ (14,624,985) $ 344,251 $ (150,000) $ 194,251 Offsetting of Financial Liabilities: Derivatives $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 |
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 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 Statements of Financial Position. September 30, 2021 Gross Gross Amounts Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 996,461 $ (992,264) $ 4,197 $ 0 $ 4,197 Offsetting of Financial Liabilities: Derivatives $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,247,310 $ (960,518) $ 286,792 $ (286,792) $ 0 December 31, 2020 Gross Gross Amounts Net Amounts Presented in the Statements of Financial Position Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 14,819,236 $ (14,624,985) $ 194,251 $ 0 $ 194,251 Securities purchased under agreements to resell 150,000 0 150,000 (150,000) 0 Total Assets $ 14,969,236 $ (14,624,985) $ 344,251 $ (150,000) $ 194,251 Offsetting of Financial Liabilities: Derivatives $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,952,846 $ (11,936,059) $ 16,787 $ (16,787) $ 0 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2021 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 3,547 $ 2,085 $ 5,160 $ 32,718 Total cash flow hedges 3,547 2,085 5,160 32,718 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (62,751) 0 0 0 Currency 1,649 0 0 0 Currency/Interest Rate (9,413) 0 1 0 Credit 1,631 0 0 0 Equity (18,433) 0 0 0 Embedded Derivatives(2) 4,989,837 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: 4,902,520 0 1 0 Total $ 4,906,067 $ 2,085 $ 5,161 $ 32,718 Nine Months Ended September 30, 2021 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 7,789 $ 10,643 $ 10,662 $ 58,009 Total cash flow hedges 7,789 10,643 10,662 58,009 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,852,373) 0 0 0 Currency 1,803 0 0 0 Currency/Interest Rate 816 0 (35) 0 Credit 10,991 0 0 0 Equity (1,798,400) 0 0 0 Embedded Derivatives(2) 9,768,777 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: 6,131,614 0 (35) 0 Total $ 6,139,403 $ 10,643 $ 10,627 $ 58,009 Three Months Ended September 30, 2020 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (194) $ 4,581 $ (13,989) $ (45,498) Total cash flow hedges (194) 4,581 (13,989) (45,498) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (995,815) 0 0 0 Currency (837) 0 0 0 Currency/Interest Rate (17,813) 0 (105) 0 Credit (344) 0 0 0 Equity (2,116,755) 0 0 0 Embedded Derivatives 2,885,016 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: (246,548) 0 (105) 0 Total $ (246,742) $ 4,581 $ (14,094) $ (45,498) Nine Months Ended September 30, 2020 Realized Net Other Income (Loss) AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 4,373 $ 13,509 $ (6,694) $ 22,964 Total cash flow hedges 4,373 13,509 (6,694) 22,964 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 5,974,212 0 0 0 Currency 250 0 0 0 Currency/Interest Rate 12,270 0 (36) 0 Credit (5,872) 0 0 0 Equity (1,931,846) 0 0 0 Embedded Derivatives (8,450,728) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments: (4,401,714) 0 (36) 0 Total $ (4,397,341) $ 13,509 $ (6,730) $ 22,964 (1) Net change in AOCI. (2) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2020 $ (43,000) Amount recorded in AOCI Currency/Interest Rate 87,103 Total amount recorded in AOCI 87,103 Amount reclassified from AOCI to income Currency/Interest Rate (29,094) Total amount reclassified from AOCI to income (29,094) Balance, September 30, 2021 $ 15,009 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. September 30, 2021 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 711,685 $ 15,000 $ $ 726,685 Obligations of U.S. states and their political subdivisions 0 297,449 0 297,449 Foreign government bonds 0 177,417 0 177,417 U.S. corporate public securities 0 3,007,070 0 3,007,070 U.S. corporate private securities 0 1,999,725 103,129 2,102,854 Foreign corporate public securities 0 757,407 201 757,608 Foreign corporate private securities 0 1,210,413 120,358 1,330,771 Asset-backed securities(2) 0 1,239,072 34,592 1,273,664 Commercial mortgage-backed securities 0 822,917 0 822,917 Residential mortgage-backed securities 0 60,695 20,020 80,715 Subtotal 0 10,283,850 293,300 10,577,150 Fixed maturities, trading 0 340,174 1,750 341,924 Equity securities 225,561 0 834 226,395 Short-term investments 34,997 43,545 11,770 90,312 Cash equivalents 354,986 930,245 0 1,285,231 Other invested assets(3) 6,148 990,313 0 (992,264) 4,197 Other assets 0 0 69,396 69,396 Reinsurance recoverables 0 0 302,251 302,251 Receivables from parent and affiliates 0 0 0 0 Subtotal excluding separate account assets 621,692 12,588,127 679,301 (992,264) 12,896,856 Separate account assets(4) 0 31,916,178 0 31,916,178 Total assets $ 621,692 $ 44,504,305 $ 679,301 $ (992,264) $ 44,813,034 Future policy benefits(5) $ 0 $ 0 $ 4,199,893 $ $ 4,199,893 Policyholders' account balances 0 0 1,457,772 1,457,772 Payables to parent and affiliates 0 1,239,681 0 (957,128) 282,553 Other liabilities 7,629 31,175 0 (3,390) 35,414 Total liabilities $ 7,629 $ 1,270,856 $ 5,657,665 $ (960,518) $ 5,975,632 December 31, 2020 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 8,887,432 $ 15,000 $ $ 8,902,432 Obligations of U.S. states and their political subdivisions 0 277,491 0 277,491 Foreign government bonds 0 177,383 0 177,383 U.S. corporate public securities 0 3,450,407 0 3,450,407 U.S. corporate private securities 0 1,804,855 82,208 1,887,063 Foreign corporate public securities 0 541,644 181 541,825 Foreign corporate private securities 0 1,427,537 66,298 1,493,835 Asset-backed securities(2) 0 974,041 18,542 992,583 Commercial mortgage-backed securities 0 785,942 0 785,942 Residential mortgage-backed securities 0 75,724 0 75,724 Subtotal 0 18,402,456 182,229 18,584,685 Fixed maturities, trading 0 1,109,097 5,045 1,114,142 Equity securities 234,452 39,477 4,153 278,082 Short-term investments 0 143,161 10,000 153,161 Cash equivalents 0 533,133 0 533,133 Other invested assets(3) 39,906 14,779,330 0 (14,624,985) 194,251 Other assets 0 0 53,980 53,980 Reinsurance recoverables 0 62,232 409,013 471,245 Receivables from parent and affiliates 0 56,026 0 56,026 Subtotal excluding separate account assets 274,358 35,124,912 664,420 (14,624,985) 21,438,705 Separate account assets(4) 0 32,205,296 0 32,205,296 Total assets $ 274,358 $ 67,330,208 $ 664,420 $ (14,624,985) $ 53,644,001 Future policy benefits(5) $ 0 $ 0 $ 17,314,004 $ $ 17,314,004 Policyholders' account balances 0 0 580,184 580,184 Payables to parent and affiliates 0 11,926,536 0 (11,926,536) 0 Other liabilities 26,309 33,416 0 (9,523) 50,202 Total liabilities $ 26,309 $ 11,959,952 $ 17,894,188 $ (11,936,059) $ 17,944,390 (1) “Netting” amounts represent cash collateral of $32 million and $2,689 million as of September 30, 2021 and December 31, 2020, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At September 30, 2021 and December 31, 2020, the fair values of such investments were $9.6 million and $10.6 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 Statements of Financial Position. (5) As of September 30, 2021, the net embedded derivative liability position of $4,200 million includes $58 million of embedded derivatives in an asset position and $4,258 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $17,314 million includes $455 million of embedded derivatives in an asset position and $17,769 million of embedded derivatives in a liability position. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. September 30, 2021 Fair Value Valuation Techniques Unobservable Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 190,885 Discounted cash flow Discount rate 2.34 % 16.44 % 4.43 % Decrease Market Comparables EBITDA multiples(3) 6.5X 12.4X 8.9X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 302,251 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 4,199,893 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 17 % 26 % Increase Policyholders' account balances(5) $ 1,457,772 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Equity volatility curve 6 % 34 % Increase December 31, 2020 Fair Value Valuation Techniques Unobservable Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 59,960 Discounted cash flow Discount rate 0.99 % 20 % 6.53 % Decrease Reinsurance recoverables $ 409,013 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 17,314,004 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 580,184 Discounted cash flow Lapse rate(6) 1 % 40 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Equity volatility curve(11) 6 % 42 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s 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. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception.The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2021 and December 31, 2020, the minimum withdrawal rate assumption is 76% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (11) Prior period amount has been updated. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 232,200 (6,046) 142,922 (10,700) 0 (14,040) (122,057) 1,409 0 223,688 (5,886) Structured securities(5) 216,363 2 32,350 0 0 (1,894) (19,859) 0 (172,350) 54,612 323 Other assets: Fixed maturities, trading 5,350 0 1,750 0 0 0 0 0 (5,350) 1,750 0 Equity securities 4,684 24 0 0 0 0 (3,874) 0 0 834 24 Short term investments 22,921 128 6,344 0 0 (17,567) (56) 0 0 11,770 0 Cash equivalents 25 0 0 0 0 0 (25) 0 0 0 0 Other assets 68,305 798 1,026 0 0 (733) 0 0 0 69,396 65 Reinsurance recoverables 302,009 (4,026) 4,268 0 0 0 0 0 0 302,251 (1,469) Liabilities: Future policy benefits (12,530,109) 8,379,775 0 0 (49,559) 0 0 0 0 (4,199,893) 13,942 Policyholders' account balances(6) (1,361,320) (8,465) 0 0 (87,987) 0 0 0 0 (1,457,772) 543,302 Three Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 281 $ 0 $ (6,335) $ 10 $ (2,172) $ 0 $ (3,391) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 24 0 0 0 24 0 Short term investments 128 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 798 0 0 0 65 0 0 Reinsurance recoverables (4,026) 0 0 0 (1,469) 0 0 Liabilities: Future policy benefits 8,379,775 0 0 0 13,942 0 0 Policyholders' account balances (8,465) 0 0 0 543,302 0 0 Nine Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 148,687 (4,632) 249,431 (10,700) 0 (45,362) (122,057) 16,556 (8,235) 223,688 (6,409) Structured securities(5) 18,542 (838) 235,148 0 0 (6,031) (19,859) 0 (172,350) 54,612 (519) Other assets: Fixed maturities, trading 5,045 305 1,750 0 0 0 0 0 (5,350) 1,750 311 Equity securities 4,153 555 0 0 0 0 (3,874) 0 0 834 555 Short term investments 10,000 90 30,386 0 0 (29,290) 44 540 0 11,770 (34) Cash equivalents 0 (13) 138 0 0 0 (125) 0 0 0 (13) Other assets 53,980 14,077 7,492 0 0 (6,153) 0 0 0 69,396 7,924 Reinsurance recoverables 409,013 (119,574) 12,812 0 0 0 0 0 0 302,251 (106,025) Liabilities: Future policy benefits (17,314,004) 13,745,555 0 0 (631,444) 0 0 0 0 (4,199,893) 1,281,075 Policyholders' account balances(6) (580,184) (516,443) 0 0 (361,145) 0 0 0 0 (1,457,772) 79,361 Nine Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2,734) $ 0 $ (2,766) $ 30 $ (5,210) $ 0 $ (1,718) Other assets: Fixed maturities, trading 0 311 0 (6) 0 311 0 Equity securities 0 555 0 0 0 555 0 Short term investments 94 0 0 (4) (34) 0 0 Cash equivalents (13) 0 0 0 (13) 0 0 Other assets 14,077 0 0 0 7,924 0 0 Reinsurance recoverables (119,574) 0 0 0 (106,025) 0 0 Liabilities: Future policy benefits 13,745,555 0 0 0 1,281,075 0 0 Policyholders' account balances (516,443) 0 0 0 79,361 0 0 Three Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 12,216 $ 0 $ 1,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 123,389 1,827 13,775 7,775 0 (8,624) (7,775) 7,819 (795) 137,391 1,689 Structured securities(5) 18,128 169 1,899 0 0 (599) 0 312 0 19,909 157 Other assets: Fixed maturities, trading 4,301 365 0 0 0 0 0 0 0 4,666 371 Equity securities 5,242 938 0 0 0 0 0 0 0 6,180 939 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 27,136 2,844 10,789 0 0 (4) 0 0 0 40,765 2,840 Reinsurance recoverables 539,123 (55,075) 4,287 0 0 0 0 0 0 488,335 (51,944) Liabilities: Future policy benefits (23,998,671) 2,964,808 0 0 (291,756) 0 0 0 0 (21,325,619) 2,776,482 Policyholders' account balances(6) (226,072) (34,565) 0 0 (42,423) 0 0 0 0 (303,060) (22,855) Three Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 254 $ 0 $ 1,683 $ 59 $ 414 $ 0 $ 1,432 Other assets: Fixed maturities, trading 0 371 0 (6) 0 371 0 Equity securities 0 938 0 0 0 939 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 2,844 0 0 0 2,840 0 0 Reinsurance recoverables (55,075) 0 0 0 (51,944) 0 0 Liabilities: Future policy benefits 2,964,808 0 0 0 2,776,482 0 0 Policyholders' account balances (34,565) 0 0 0 (22,855) 0 0 Nine Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 10,547 $ 0 $ 2,669 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 104,267 (4,337) 28,948 (1,190) 0 (14,434) (7,775) 32,951 (1,039) 137,391 (6,353) Structured securities(5) 18,825 38 8,044 0 0 (1,674) 0 312 (5,636) 19,909 26 Other assets: Fixed maturities, trading 4,464 202 0 0 0 0 0 0 0 4,666 218 Equity securities 5,247 933 0 0 0 0 0 0 0 6,180 934 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 8,059 3,789 28,923 0 0 (6) 0 0 0 40,765 3,784 Reinsurance recoverables 302,814 172,671 12,850 0 0 0 0 0 0 488,335 178,844 Liabilities: Future policy benefits (11,822,998) (8,644,255) 0 0 (858,366) 0 0 0 0 (21,325,619) (8,923,218) Policyholders' account balances(6) (196,892) (13,231) 0 0 (92,937) 0 0 0 0 (303,060) 9,727 Nine Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 87 $ 0 $ (4,442) $ 56 $ (567) $ 0 $ (5,760) Other assets: Fixed maturities, trading 0 218 0 (16) 0 218 0 Equity securities 0 933 0 0 0 934 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 3,789 0 0 0 3,784 0 0 Reinsurance recoverables 172,671 0 0 0 178,844 0 0 Liabilities: Future policy benefits (8,644,255) 0 0 0 (8,923,218) 0 0 Policyholders' account balances (13,231) 0 0 0 9,727 0 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Retitled to "Other income (loss)" to conform to current period presentation. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 232,200 (6,046) 142,922 (10,700) 0 (14,040) (122,057) 1,409 0 223,688 (5,886) Structured securities(5) 216,363 2 32,350 0 0 (1,894) (19,859) 0 (172,350) 54,612 323 Other assets: Fixed maturities, trading 5,350 0 1,750 0 0 0 0 0 (5,350) 1,750 0 Equity securities 4,684 24 0 0 0 0 (3,874) 0 0 834 24 Short term investments 22,921 128 6,344 0 0 (17,567) (56) 0 0 11,770 0 Cash equivalents 25 0 0 0 0 0 (25) 0 0 0 0 Other assets 68,305 798 1,026 0 0 (733) 0 0 0 69,396 65 Reinsurance recoverables 302,009 (4,026) 4,268 0 0 0 0 0 0 302,251 (1,469) Liabilities: Future policy benefits (12,530,109) 8,379,775 0 0 (49,559) 0 0 0 0 (4,199,893) 13,942 Policyholders' account balances(6) (1,361,320) (8,465) 0 0 (87,987) 0 0 0 0 (1,457,772) 543,302 Three Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 281 $ 0 $ (6,335) $ 10 $ (2,172) $ 0 $ (3,391) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 24 0 0 0 24 0 Short term investments 128 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 798 0 0 0 65 0 0 Reinsurance recoverables (4,026) 0 0 0 (1,469) 0 0 Liabilities: Future policy benefits 8,379,775 0 0 0 13,942 0 0 Policyholders' account balances (8,465) 0 0 0 543,302 0 0 Nine Months Ended September 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 15,000 $ 0 Corporate securities(4) 148,687 (4,632) 249,431 (10,700) 0 (45,362) (122,057) 16,556 (8,235) 223,688 (6,409) Structured securities(5) 18,542 (838) 235,148 0 0 (6,031) (19,859) 0 (172,350) 54,612 (519) Other assets: Fixed maturities, trading 5,045 305 1,750 0 0 0 0 0 (5,350) 1,750 311 Equity securities 4,153 555 0 0 0 0 (3,874) 0 0 834 555 Short term investments 10,000 90 30,386 0 0 (29,290) 44 540 0 11,770 (34) Cash equivalents 0 (13) 138 0 0 0 (125) 0 0 0 (13) Other assets 53,980 14,077 7,492 0 0 (6,153) 0 0 0 69,396 7,924 Reinsurance recoverables 409,013 (119,574) 12,812 0 0 0 0 0 0 302,251 (106,025) Liabilities: Future policy benefits (17,314,004) 13,745,555 0 0 (631,444) 0 0 0 0 (4,199,893) 1,281,075 Policyholders' account balances(6) (580,184) (516,443) 0 0 (361,145) 0 0 0 0 (1,457,772) 79,361 Nine Months Ended September 30, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2,734) $ 0 $ (2,766) $ 30 $ (5,210) $ 0 $ (1,718) Other assets: Fixed maturities, trading 0 311 0 (6) 0 311 0 Equity securities 0 555 0 0 0 555 0 Short term investments 94 0 0 (4) (34) 0 0 Cash equivalents (13) 0 0 0 (13) 0 0 Other assets 14,077 0 0 0 7,924 0 0 Reinsurance recoverables (119,574) 0 0 0 (106,025) 0 0 Liabilities: Future policy benefits 13,745,555 0 0 0 1,281,075 0 0 Policyholders' account balances (516,443) 0 0 0 79,361 0 0 Three Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 12,216 $ 0 $ 1,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 123,389 1,827 13,775 7,775 0 (8,624) (7,775) 7,819 (795) 137,391 1,689 Structured securities(5) 18,128 169 1,899 0 0 (599) 0 312 0 19,909 157 Other assets: Fixed maturities, trading 4,301 365 0 0 0 0 0 0 0 4,666 371 Equity securities 5,242 938 0 0 0 0 0 0 0 6,180 939 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 27,136 2,844 10,789 0 0 (4) 0 0 0 40,765 2,840 Reinsurance recoverables 539,123 (55,075) 4,287 0 0 0 0 0 0 488,335 (51,944) Liabilities: Future policy benefits (23,998,671) 2,964,808 0 0 (291,756) 0 0 0 0 (21,325,619) 2,776,482 Policyholders' account balances(6) (226,072) (34,565) 0 0 (42,423) 0 0 0 0 (303,060) (22,855) Three Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 254 $ 0 $ 1,683 $ 59 $ 414 $ 0 $ 1,432 Other assets: Fixed maturities, trading 0 371 0 (6) 0 371 0 Equity securities 0 938 0 0 0 939 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 2,844 0 0 0 2,840 0 0 Reinsurance recoverables (55,075) 0 0 0 (51,944) 0 0 Liabilities: Future policy benefits 2,964,808 0 0 0 2,776,482 0 0 Policyholders' account balances (34,565) 0 0 0 (22,855) 0 0 Nine Months Ended September 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 10,547 $ 0 $ 2,669 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 13,216 $ 0 Corporate securities(4) 104,267 (4,337) 28,948 (1,190) 0 (14,434) (7,775) 32,951 (1,039) 137,391 (6,353) Structured securities(5) 18,825 38 8,044 0 0 (1,674) 0 312 (5,636) 19,909 26 Other assets: Fixed maturities, trading 4,464 202 0 0 0 0 0 0 0 4,666 218 Equity securities 5,247 933 0 0 0 0 0 0 0 6,180 934 Short term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 8,059 3,789 28,923 0 0 (6) 0 0 0 40,765 3,784 Reinsurance recoverables 302,814 172,671 12,850 0 0 0 0 0 0 488,335 178,844 Liabilities: Future policy benefits (11,822,998) (8,644,255) 0 0 (858,366) 0 0 0 0 (21,325,619) (8,923,218) Policyholders' account balances(6) (196,892) (13,231) 0 0 (92,937) 0 0 0 0 (303,060) 9,727 Nine Months Ended September 30, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss)(7) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss)(7) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 87 $ 0 $ (4,442) $ 56 $ (567) $ 0 $ (5,760) Other assets: Fixed maturities, trading 0 218 0 (16) 0 218 0 Equity securities 0 933 0 0 0 934 0 Short term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 3,789 0 0 0 3,784 0 0 Reinsurance recoverables 172,671 0 0 0 178,844 0 0 Liabilities: Future policy benefits (8,644,255) 0 0 0 (8,923,218) 0 0 Policyholders' account balances (13,231) 0 0 0 9,727 0 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Retitled to "Other income (loss)" to conform to current period presentation. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. September 30, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,109,355 $ 2,109,355 $ 2,044,843 Policy loans 0 0 11,871 11,871 11,871 Short-term investments 5,001 0 0 5,001 5,001 Cash and cash equivalents 128,100 0 0 128,100 128,100 Accrued investment income 0 74,015 0 74,015 74,015 Reinsurance recoverables 0 0 9,017 9,017 8,106 Receivables from parent and affiliates 0 54,706 0 54,706 54,706 Other assets 0 22,145 422,855 445,000 445,000 Total assets $ 133,101 $ 150,866 $ 2,553,098 $ 2,837,065 $ 2,771,642 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 2,384,386 $ 2,384,386 $ 2,372,734 Short-term debt 0 0 0 0 0 Long-term debt 0 0 0 0 0 Reinsurance payables 0 0 0 0 0 Payables to parent and affiliates 0 47,222 0 47,222 47,222 Other liabilities 0 493,697 0 493,697 493,697 Separate account liabilities - investment contracts 0 10 0 10 10 Total liabilities $ 0 $ 540,929 $ 2,384,386 $ 2,925,315 $ 2,913,663 December 31, 2020 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,836,633 $ 1,836,633 $ 1,765,770 Policy loans 0 0 11,806 11,806 11,806 Short-term investments 165,000 0 0 165,000 165,000 Cash and cash equivalents 386,078 150,000 0 536,078 536,078 Accrued investment income 0 121,604 0 121,604 121,604 Reinsurance recoverables 0 0 51,225 51,225 50,484 Receivables from parent and affiliates 0 31,594 0 31,594 31,594 Other assets 0 278,355 394,069 672,424 672,424 Total assets $ 551,078 $ 581,553 $ 2,293,733 $ 3,426,364 $ 3,354,760 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 2,426,471 $ 2,426,471 $ 2,406,100 Short-term debt 0 121,205 0 121,205 119,671 Long-term debt 0 332,451 0 332,451 299,747 Reinsurance payables 0 0 44,446 44,446 44,446 Payables to parent and affiliates 0 47,345 0 47,345 47,345 Other liabilities 0 757,968 0 757,968 757,968 Separate account liabilities - investment contracts 0 30 0 30 30 Total liabilities $ 0 $ 1,258,999 $ 2,470,917 $ 3,729,916 $ 3,675,307 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Reinsurance recoverables $ 384,614 $ 694,040 Deferred policy acquisition costs (53,181) 3,414,620 Deferred sales inducements (25,952) 374,631 Value of business acquired (2,053) (2,124) Other assets 55,470 61,471 Policyholders’ account balances 0 3,273,863 Future policy benefits 0 12,610,942 Reinsurance payables(1) 31,437 178,860 Other liabilities 0 262,462 (1) Includes $0 million and $2.3 million of unaffiliated activity as of September 30, 2021 and December 31, 2020, respectively. |
Reinsurance Recoverables by Counterparty | The reinsurance recoverables by counterparty are broken out below: September 30, 2021 December 31, 2020 (in thousands) Prudential Insurance $ 384,614 $ 494,611 Pruco Life 0 198,547 Unaffiliated 0 882 Total reinsurance recoverables $ 384,614 $ 694,040 |
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Premiums: Direct $ 6,520 $ 6,161 $ 19,238 $ 20,376 Assumed 0 8,630 16,093 27,060 Ceded (863) (855) (2,635) (1,908) Net premiums 5,657 13,936 32,696 45,528 Policy charges and fee income: Direct 112,675 102,669 328,795 304,593 Assumed 0 395,381 819,191 1,161,236 Ceded(1) (6,538) (8,610) (20,118) (23,838) Net policy charges and fee income 106,137 489,440 1,127,868 1,441,991 Asset management and service fees(2): Direct 24,892 22,904 73,375 67,147 Assumed 0 78,549 165,177 227,614 Ceded (2,207) (2,034) (6,296) (5,852) Net asset management and service fees 22,685 99,419 232,256 288,909 Realized investment gains (losses), net: Direct (3,242,554) (2,520,872) (4,855,611) 1,878,766 Assumed 8,328,213 2,332,646 12,350,171 (6,422,045) Ceded (4,968) (57,748) (121,697) 163,850 Realized investment gains (losses), net 5,080,691 (245,974) 7,372,863 (4,379,429) Policyholders' benefits (including change in reserves): Direct 19,028 14,018 43,533 73,651 Assumed (256,596) 30,844 (253,812) 181,079 Ceded(3) (4,203) (1,038) (5,475) (6,145) Net policyholders' benefits (including change in reserves) (241,771) 43,824 (215,754) 248,585 Interest credited to policyholders’ account balances: Direct 43,018 40,428 139,185 73,983 Assumed 399,099 43,457 476,408 89,311 Ceded (1,662) (2,601) (5,969) (2,294) Net interest credited to policyholders’ account balances 440,455 81,284 609,624 161,000 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization 1,193,211 307,043 1,707,648 890,849 (1) Includes $(0.4) million and $(1.7) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(0.4) million and $(2.4) million for the nine months ended September 30, 2021 and 2020, respectively. (2) Prior period amounts updated to conform to current period presentation. (3) Includes $(2.9) million and $0.1 million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(3.3) million and $(0.3) million for the nine months ended September 30, 2021 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2021 and 2020 are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2020 $ (708) $ 1,533,767 $ 1,533,059 Change in OCI before reclassifications (117) (354,151) (354,268) Amounts reclassified from AOCI 0 (1,225,663) (1,225,663) Income tax benefit (expense) 25 331,761 331,786 Balance, September 30, 2021 $ (800) $ 285,714 $ 284,914 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2019 $ (934) $ 429,546 $ 428,612 Change in OCI before reclassifications (154) 1,586,843 1,586,689 Amounts reclassified from AOCI 0 (26,350) (26,350) Income tax benefit (expense) 32 (327,704) (327,672) Balance, September 30, 2020 $ (1,056) $ 1,662,335 $ 1,661,279 (1) Includes cash flow hedges of $15 million and $(43) million as of September 30, 2021 and December 31, 2020, respectively, and $23 million and $0 million as of September 30, 2020 and December 31, 2019, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/ Interest rate(3) $ 10,792 $ (9,602) $ 29,094 $ 11,188 Net unrealized investment gains (losses) on available-for-sale securities 140,824 73 1,196,569 15,162 Total net unrealized investment gains (losses)(4) 151,616 (9,529) 1,225,663 26,350 Total reclassifications for the period $ 151,616 $ (9,529) $ 1,225,663 $ 26,350 (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 and future policy benefits and other liabilities. |
All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC and Other Costs(2) Future Policy Benefits and Other Liabilities(3) Income Tax Accumulated Other Comprehensive (in thousands) Balance, December 31, 2020 $ 2 $ 2,369,107 $ (363,429) $ (63,159) $ (408,754) $ 1,533,767 Net investment gains (losses) on investments arising during the period 2,017 (742,086) 0 0 155,611 (584,458) Reclassification adjustment for (gains) losses included in net income (1,991) (1,223,672) 0 0 257,295 (968,368) Reclassification due to allowance for credit losses recorded during the period 125 (125) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 325,247 60,671 (81,145) 304,773 Balance, September 30, 2021 $ 153 $ 403,224 $ (38,182) $ (2,488) $ (76,993) $ 285,714 (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables, DSI and VOBA. (3) "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |
Affiliated Commercial Mortgage Loan | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 471,521 23.0 % $ 369,764 20.9 % Hospitality 28,525 1.4 16,679 0.9 Industrial 814,100 39.7 590,231 33.3 Office 323,811 15.8 374,107 21.1 Other 218,338 10.7 187,643 10.6 Retail 100,815 4.9 130,154 7.3 Total commercial mortgage loans 1,957,110 95.5 1,668,578 94.1 Agricultural property loans 91,967 4.5 104,574 5.9 Total commercial mortgage and agricultural property loans 2,049,077 100.0 % 1,773,152 100.0 % Allowance for credit losses (4,234) (7,382) Total net commercial mortgage and agricultural property loans $ 2,044,843 $ 1,765,770 |
Affiliated Asset Transfer | The table below shows affiliated asset trades for the nine months ended September 30, 2021 and for the year ended December 31, 2020, excluding those related to the 2021 Variable Recapture, as described in Note 1. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential International Insurance Service Company March 2020 Purchase Fixed Maturities $ 107,014 $ 107,014 $ 0 $ 0 Prudential Insurance March 2020 Purchase Fixed Maturities $ 258,885 $ 258,885 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 91,131 $ 91,131 $ 0 $ 0 Prudential Insurance June 2020 Sale Fixed Maturities $ 65,646 $ 57,699 $ 0 $ 7,947 Gibraltar Life Insurance Company June 2020 Purchase Fixed Maturities $ 222,091 $ 222,091 $ 0 $ 0 Prudential Insurance April 2021 Purchase Fixed Maturities $ 200,873 $ 200,873 $ 0 $ 0 Prudential Insurance April 2021 Purchase Commercial Mortgage Loan $ 176,904 $ 176,904 $ 0 $ 0 Vantage Casualty Insurance Co. June 2021 Purchase Fixed Maturities $ 14,662 $ 14,662 $ 0 $ 0 Prudential Insurance June 2021 Sale Equities $ 3,050 $ 3,013 $ 0 $ 37 Pruco Life June 2021 Sale Equities $ 40,284 $ 38,026 $ 0 $ 2,258 Passaic Fund LLC June 2021 Transfer Out Other Invested Assets $ 12,350 $ 12,350 $ 0 $ 0 Passaic Fund LLC July 2021 Transfer Out Other Invested Assets $ 195,776 $ 195,926 $ 0 $ (150) Prudential Insurance September 2021 Purchase Fixed Maturities $ 2,104 $ 2,104 $ 0 $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 11,788 $ 10,844 $ 0 $ 944 Prudential Retirement Insurance and Annuity Company September 2021 Sale Fixed Maturities $ 26,086 $ 24,349 $ 0 $ 1,737 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Retirement Insurance and Annuity Company September 2021 Purchase Fixed Maturities $ 35,311 $ 35,311 $ 0 $ 0 Prudential Insurance September 2021 Purchase Derivatives $ 71 $ 71 $ 0 $ 0 Prudential Retirement Insurance and Annuity Company September 2021 Purchase Derivatives $ (991) $ (991) $ 0 $ 0 |
Affiliated Entity | |
Related Party Transaction [Line Items] | |
Affiliated Notes Receivables | Affiliated notes receivable included in "Receivables from parent and affiliates" at September 30, 2021 and December 31, 2020 were as follows: Maturity Dates Interest Rates September 30, 2021 December 31, 2020 (in thousands) U.S. dollar fixed rate notes 2026 - 2027 2.62% - 14.85 % $ 0 $ 56,025 Total long-term notes receivable - affiliated(1) $ 0 $ 56,025 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Commercial Mortgage Loan | The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2021 and December 31, 2020 was as follows: Maturity Date Interest Rate September 30, 2021 December 31, 2020 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.58% $ 0 $ 74,005 |
Debt Agreements | The following table provides the breakout of the Company's short and long-term debt to affiliates as of September 30, 2021 and December 31, 2020: Affiliate Date Amount of Notes - September 30, 2021 Amount of Notes - December 31, 2020 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 0 $ 93,671 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 0 93,671 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 0 28,102 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 0 93,671 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 0 37,468 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 0 46,835 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 0 26,000 2.59 % 6/28/2021 Total Loans Payable to Affiliates $ 0 $ 419,418 |
Business and Basis of Present_3
Business and Basis of Presentation (Unaudited Interim Statement of Financial Position) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | |||||||
Total investments | $ 13,403,656 | $ 13,403,656 | $ 20,501,000 | $ 22,901,456 | |||
Cash and cash equivalents | 1,413,331 | 1,413,331 | 2,091,000 | 1,069,211 | |||
Deferred policy acquisition costs | 1,000,868 | 1,000,868 | 4,215,000 | 4,237,780 | |||
Accrued investment income | 74,015 | 74,015 | 110,000 | 121,604 | |||
Reinsurance recoverables | 384,614 | 384,614 | 567,000 | 694,040 | |||
Income tax receivable | 1,088,488 | 1,088,488 | 1,707,000 | 1,448,714 | |||
Value of business acquired | 27,186 | 27,186 | 28,000 | 27,247 | |||
Deferred sales inducements | 294,029 | 294,029 | 692,000 | 714,598 | |||
Receivables from parent and affiliates | 54,706 | 54,706 | 114,000 | 87,620 | |||
Other assets | 550,440 | 550,440 | 544,000 | 767,540 | |||
Separate account assets | 31,916,178 | 31,916,178 | 32,934,000 | 32,205,296 | |||
TOTAL ASSETS | 50,207,511 | 50,207,511 | 63,503,000 | 64,275,106 | |||
LIABILITIES | |||||||
Future policy benefits | 13,707,000 | ||||||
Policyholder Account Balance | 12,617,000 | ||||||
Payables to parent and affiliates | 329,775 | 329,775 | 34,000 | 47,345 | |||
Long-term debt | 0 | 0 | 300,000 | 299,747 | |||
Reinsurance payables | 31,437 | 31,437 | 148,000 | 178,860 | |||
Other liabilities | 503,550 | 503,550 | 805,000 | 980,692 | |||
Separate account liabilities | 31,916,178 | 31,916,178 | 32,934,000 | 32,205,296 | |||
Total Liabilities | 48,150,543 | 48,150,543 | 60,545,000 | 61,573,961 | |||
EQUITY | |||||||
Common stock | 2,500 | 2,500 | 3,000 | 2,500 | |||
Additional paid-in capital | 590,601 | 590,601 | 4,383,000 | 4,382,936 | |||
Retained earnings | 1,178,953 | 1,178,953 | (1,782,000) | (3,217,350) | |||
Accumulated other comprehensive income | 284,914 | 284,914 | 354,000 | 1,533,059 | |||
Total equity | 2,056,968 | 2,056,968 | 2,958,000 | 2,701,145 | |||
TOTAL LIABILITIES AND EQUITY | 50,207,511 | 50,207,511 | $ 63,503,000 | $ 64,275,106 | |||
Increase related to ceding commissions | $ 106,137 | $ 489,440 | $ 1,127,868 | $ 1,441,991 | |||
Impacts of recapture | |||||||
ASSETS | |||||||
Total investments | $ 12,174,000 | ||||||
Cash and cash equivalents | 1,682,000 | ||||||
Deferred policy acquisition costs | 929,000 | ||||||
Accrued investment income | 68,000 | ||||||
Reinsurance recoverables | 386,000 | ||||||
Income tax receivable | 920,000 | ||||||
Value of business acquired | 28,000 | ||||||
Deferred sales inducements | 304,000 | ||||||
Receivables from parent and affiliates | 73,000 | ||||||
Other assets | 544,000 | ||||||
Separate account assets | 32,934,000 | ||||||
TOTAL ASSETS | 50,042,000 | ||||||
LIABILITIES | |||||||
Future policy benefits | 4,659,000 | ||||||
Policyholder Account Balance | 9,418,000 | ||||||
Payables to parent and affiliates | 34,000 | ||||||
Long-term debt | 300,000 | ||||||
Reinsurance payables | 33,000 | ||||||
Other liabilities | 560,000 | ||||||
Separate account liabilities | 32,934,000 | ||||||
Total Liabilities | 47,938,000 | ||||||
EQUITY | |||||||
Common stock | 3,000 | ||||||
Additional paid-in capital | 597,000 | ||||||
Retained earnings | 1,244,000 | ||||||
Accumulated other comprehensive income | 260,000 | ||||||
Total equity | 2,104,000 | ||||||
TOTAL LIABILITIES AND EQUITY | 50,042,000 | ||||||
Variable annuity | Total investments | |||||||
EQUITY | |||||||
Increase related to ceding commissions | 2,000,000 | ||||||
Variable annuity | PAI | Additional paid-in capital | |||||||
EQUITY | |||||||
Non-cash activities | 3,400,000 | ||||||
Variable annuity | Impacts of recapture | |||||||
ASSETS | |||||||
Total investments | (8,327,000) | ||||||
Cash and cash equivalents | (409,000) | ||||||
Deferred policy acquisition costs | (3,286,000) | ||||||
Accrued investment income | (42,000) | ||||||
Reinsurance recoverables | (181,000) | ||||||
Income tax receivable | (787,000) | ||||||
Value of business acquired | 0 | ||||||
Deferred sales inducements | (388,000) | ||||||
Receivables from parent and affiliates | (41,000) | ||||||
Other assets | 0 | ||||||
Separate account assets | 0 | ||||||
TOTAL ASSETS | (13,461,000) | ||||||
LIABILITIES | |||||||
Future policy benefits | (9,048,000) | ||||||
Policyholder Account Balance | (3,199,000) | ||||||
Payables to parent and affiliates | 0 | ||||||
Long-term debt | 0 | ||||||
Reinsurance payables | (115,000) | ||||||
Other liabilities | (245,000) | ||||||
Separate account liabilities | 0 | ||||||
Total Liabilities | (12,607,000) | ||||||
EQUITY | |||||||
Common stock | 0 | ||||||
Additional paid-in capital | (3,786,000) | ||||||
Retained earnings | 3,026,000 | ||||||
Accumulated other comprehensive income | (94,000) | ||||||
Total equity | (854,000) | ||||||
TOTAL LIABILITIES AND EQUITY | (13,461,000) | ||||||
Variable annuity | Impacts of recapture | Total investments | |||||||
EQUITY | |||||||
Non-cash activities | $ (8,300,000) |
Business and Basis of Present_4
Business and Basis of Presentation (Unaudited Interim Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
REVENUES | ||||||||||
Other income (loss) | $ (41,719) | $ 3,339 | [1] | $ (555,728) | $ 64,831 | [1] | ||||
Realized investment gains (losses), net | 5,080,691 | (245,974) | 7,372,863 | (4,379,429) | ||||||
TOTAL REVENUES | 5,274,769 | 504,829 | 8,596,480 | (2,112,038) | ||||||
BENEFITS AND EXPENSES | ||||||||||
Policyholders’ benefits | (241,771) | 43,824 | (215,754) | 248,585 | ||||||
Interest credited to policyholders’ account balances | 440,455 | 81,284 | 609,624 | 161,000 | ||||||
Commission expense | 1,408,014 | 193,174 | 1,738,901 | 602,303 | ||||||
General, administrative and other expenses | (90,076) | 29,604 | 38,395 | 160,487 | ||||||
TOTAL BENEFITS AND EXPENSES | 1,535,703 | 552,402 | 2,572,901 | 1,612,105 | ||||||
Income tax expense (benefit) | 777,976 | 134,587 | 1,247,276 | (964,981) | ||||||
NET INCOME (LOSS) | 2,961,090 | $ (74,600) | $ 1,889,813 | $ (182,160) | $ (1,756,214) | $ (820,788) | 4,776,303 | $ (2,759,162) | ||
Variable annuity | Impacts of recapture | ||||||||||
REVENUES | ||||||||||
Other income (loss) | 1,000 | 1,000 | ||||||||
Realized investment gains (losses), net | 5,142,000 | 5,142,000 | ||||||||
TOTAL REVENUES | 5,143,000 | 5,143,000 | ||||||||
BENEFITS AND EXPENSES | ||||||||||
Policyholders’ benefits | (257,000) | (257,000) | ||||||||
Interest credited to policyholders’ account balances | 399,000 | 399,000 | ||||||||
Commission expense | 1,362,000 | 1,362,000 | ||||||||
General, administrative and other expenses | (191,000) | (191,000) | ||||||||
TOTAL BENEFITS AND EXPENSES | 1,313,000 | 1,313,000 | ||||||||
INCOME (LOSS) FROM OPERATING BEFORE INCOME TAXES | 3,830,000 | 3,830,000 | ||||||||
Income tax expense (benefit) | 804,000 | 804,000 | ||||||||
NET INCOME (LOSS) | $ 3,026,000 | $ 3,026,000 | ||||||||
[1] | Prior period amounts have been reclassified to conform to current period presentation. |
Business and Basis of Present_5
Business and Basis of Presentation (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Effects of Reinsurance [Line Items] | |||||
Realized Investment Gain/(Loss), Net | $ 5,080,691 | $ (245,974) | $ 7,372,863 | $ (4,379,429) | |
Affiliated Entity | Pruco Life June 2021 Sale | |||||
Effects of Reinsurance [Line Items] | |||||
Fair Value | 40,284 | 40,284 | |||
Book Value | 38,026 | 38,026 | |||
APIC Increase/(Decrease) | 0 | 0 | |||
Realized Investment Gain/(Loss), Net | 2,258 | ||||
Variable annuity | Impacts of recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Realized Investment Gain/(Loss), Net | $ 5,142,000 | $ 5,142,000 | |||
Variable annuity | Impacts of recapture | Pruco Life June 2021 Sale | |||||
Effects of Reinsurance [Line Items] | |||||
Book Value | $ 6,800,000 | ||||
Variable annuity | Impacts of recapture | Affiliated Entity | Pruco Life June 2021 Sale | |||||
Effects of Reinsurance [Line Items] | |||||
Fair Value | 4,908,000 | ||||
Book Value | 4,720,000 | ||||
APIC Increase/(Decrease) | 0 | ||||
Realized Investment Gain/(Loss), Net | 173,000 | ||||
Derivative Gain/(Loss) | 15,000 | ||||
Variable annuity | Impacts of recapture | Affiliated Entity | PAI July 2021 Return of Capital | |||||
Effects of Reinsurance [Line Items] | |||||
Fair Value | 3,420,000 | ||||
Book Value | 3,420,000 | ||||
APIC Increase/(Decrease) | (3,420,000) | ||||
Realized Investment Gain/(Loss), Net | 0 | ||||
Derivative Gain/(Loss) | $ 0 |
Business and Basis of Present_6
Business and Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Effects of Reinsurance [Line Items] | |||||
Increase related to ceding commissions | $ 106,137 | $ 489,440 | $ 1,127,868 | $ 1,441,991 | |
Reinsurance recoverable | $ (40,516) | $ 37,789 | |||
Variable annuity | Investments | |||||
Effects of Reinsurance [Line Items] | |||||
Increase related to ceding commissions | $ 2,000,000 | ||||
Variable annuity | PAI | Additional Paid-in Capital | |||||
Effects of Reinsurance [Line Items] | |||||
Non-cash activities | 3,400,000 | ||||
Cash | 400,000 | ||||
Variable annuity | Impacts of recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Release living benefit liabilities | 8,300,000 | ||||
Variable annuity contracts | 3,000,000 | ||||
Reserves payout | (900,000) | ||||
Net deferred reinsurance gain | 200,000 | ||||
Pre-tax gain | 3,800,000 | ||||
Variable annuity | Impacts of recapture | Investments | |||||
Effects of Reinsurance [Line Items] | |||||
Non-cash activities | (8,300,000) | ||||
Variable annuity | Impacts of recapture | Pruco Life | |||||
Effects of Reinsurance [Line Items] | |||||
Invested assets | 6,800,000 | ||||
Variable annuity | Impacts of recapture | PAI | |||||
Effects of Reinsurance [Line Items] | |||||
Return of capital | $ 3,800,000 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 10,191,008 | $ 16,177,891 |
Allowance for Credit Losses | 2,226 | 686 |
Fair Value | 10,577,150 | 18,584,685 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,191,008 | 16,177,891 |
Gross Unrealized Gains | 448,475 | 2,431,362 |
Gross Unrealized Losses | 60,107 | 23,882 |
Allowance for Credit Losses | 2,226 | 686 |
Fair Value | 10,577,150 | 18,584,685 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 669,350 | 7,283,403 |
Gross Unrealized Gains | 57,637 | 1,631,715 |
Gross Unrealized Losses | 302 | 12,686 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 726,685 | 8,902,432 |
Fixed maturities | US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 283,487 | 258,135 |
Gross Unrealized Gains | 14,845 | 19,512 |
Gross Unrealized Losses | 883 | 156 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 297,449 | 277,491 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 164,023 | 153,009 |
Gross Unrealized Gains | 14,207 | 24,378 |
Gross Unrealized Losses | 813 | 4 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 177,417 | 177,383 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,843,576 | 3,112,420 |
Gross Unrealized Gains | 180,349 | 339,348 |
Gross Unrealized Losses | 16,855 | 1,361 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 3,007,070 | 3,450,407 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,037,889 | 1,736,035 |
Gross Unrealized Gains | 73,950 | 155,943 |
Gross Unrealized Losses | 6,759 | 4,706 |
Allowance for Credit Losses | 2,226 | 209 |
Fair Value | 2,102,854 | 1,887,063 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 744,178 | 513,204 |
Gross Unrealized Gains | 17,155 | 29,029 |
Gross Unrealized Losses | 3,725 | 408 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 757,608 | 541,825 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,311,604 | 1,338,936 |
Gross Unrealized Gains | 43,078 | 158,227 |
Gross Unrealized Losses | 23,911 | 2,851 |
Allowance for Credit Losses | 0 | 477 |
Fair Value | 1,330,771 | 1,493,835 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,266,654 | 984,318 |
Gross Unrealized Gains | 7,321 | 9,870 |
Gross Unrealized Losses | 311 | 1,605 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 1,273,664 | 992,583 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 793,065 | 728,522 |
Gross Unrealized Gains | 36,371 | 57,522 |
Gross Unrealized Losses | 6,519 | 102 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 822,917 | 785,942 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 77,182 | 69,909 |
Gross Unrealized Gains | 3,562 | 5,818 |
Gross Unrealized Losses | 29 | 3 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 80,715 | $ 75,724 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 3,049,245 | $ 753,811 |
Less than Twelve Months, Gross Unrealized Losses | 57,862 | 17,810 |
Twelve Months or More, Fair Value | 39,890 | 315,767 |
Twelve Months or More, Gross Unrealized Losses | 2,245 | 6,072 |
Total, Fair Value | 3,089,135 | 1,069,578 |
Total, Gross Unrealized Losses | 60,107 | 23,882 |
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 | 74,479 | 244,507 |
Less than Twelve Months, Gross Unrealized Losses | 302 | 12,686 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 74,479 | 244,507 |
Total, Gross Unrealized Losses | 302 | 12,686 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 3,491 | 9,440 |
Less than Twelve Months, Gross Unrealized Losses | 72 | 156 |
Twelve Months or More, Fair Value | 8,784 | 0 |
Twelve Months or More, Gross Unrealized Losses | 811 | 0 |
Total, Fair Value | 12,275 | 9,440 |
Total, Gross Unrealized Losses | 883 | 156 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 18,592 | 257 |
Less than Twelve Months, Gross Unrealized Losses | 813 | 1 |
Twelve Months or More, Fair Value | 0 | 87 |
Twelve Months or More, Gross Unrealized Losses | 0 | 3 |
Total, Fair Value | 18,592 | 344 |
Total, Gross Unrealized Losses | 813 | 4 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 907,661 | 117,755 |
Less than Twelve Months, Gross Unrealized Losses | 16,191 | 1,335 |
Twelve Months or More, Fair Value | 9,998 | 2,185 |
Twelve Months or More, Gross Unrealized Losses | 664 | 26 |
Total, Fair Value | 917,659 | 119,940 |
Total, Gross Unrealized Losses | 16,855 | 1,361 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 479,408 | 35,411 |
Less than Twelve Months, Gross Unrealized Losses | 6,722 | 2,614 |
Twelve Months or More, Fair Value | 2,491 | 16,071 |
Twelve Months or More, Gross Unrealized Losses | 37 | 2,092 |
Total, Fair Value | 481,899 | 51,482 |
Total, Gross Unrealized Losses | 6,759 | 4,706 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 438,175 | 69,610 |
Less than Twelve Months, Gross Unrealized Losses | 3,464 | 408 |
Twelve Months or More, Fair Value | 3,722 | 0 |
Twelve Months or More, Gross Unrealized Losses | 261 | 0 |
Total, Fair Value | 441,897 | 69,610 |
Total, Gross Unrealized Losses | 3,725 | 408 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 589,332 | 11,679 |
Less than Twelve Months, Gross Unrealized Losses | 23,737 | 188 |
Twelve Months or More, Fair Value | 2,848 | 50,809 |
Twelve Months or More, Gross Unrealized Losses | 174 | 2,663 |
Total, Fair Value | 592,180 | 62,488 |
Total, Gross Unrealized Losses | 23,911 | 2,851 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 316,315 | 219,535 |
Less than Twelve Months, Gross Unrealized Losses | 309 | 320 |
Twelve Months or More, Fair Value | 5,002 | 246,535 |
Twelve Months or More, Gross Unrealized Losses | 2 | 1,285 |
Total, Fair Value | 321,317 | 466,070 |
Total, Gross Unrealized Losses | 311 | 1,605 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 214,547 | 45,617 |
Less than Twelve Months, Gross Unrealized Losses | 6,226 | 102 |
Twelve Months or More, Fair Value | 6,971 | 0 |
Twelve Months or More, Gross Unrealized Losses | 293 | 0 |
Total, Fair Value | 221,518 | 45,617 |
Total, Gross Unrealized Losses | 6,519 | 102 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 7,245 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 26 | 0 |
Twelve Months or More, Fair Value | 74 | 80 |
Twelve Months or More, Gross Unrealized Losses | 3 | 3 |
Total, Fair Value | 7,319 | 80 |
Total, Gross Unrealized Losses | $ 29 | $ 3 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||||
Loans Acquired | $ 0 | $ 0 | $ 167,000 | $ 0 | |
Loans Sold | 707,000 | 0 | 707,000 | 0 | |
Commercial mortgage and others loans Purchased with Credit Deterioration | 0 | $ 0 | |||
Accrued Investment Income Write Down | 0 | 0 | 0 | 0 | |
Repurchase Agreements | 0 | 0 | 0 | ||
Securities Lending | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | 100.00% | ||
Fixed maturities purchased with credit deterioration | $ 0 | $ 0 | |||
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 60,107 | 60,107 | 23,882 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 2,245 | 2,245 | 6,072 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 53,700 | 53,700 | 17,400 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 6,400 | $ 6,400 | 6,500 | ||
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 35.00% | 35.00% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 16.00% | 16.00% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 6.00% | 6.00% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 9.00% | 9.00% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 1.00% | 1.00% | |||
Other Income | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ 24,300 | 1,200 | $ (275,900) | 62,800 | |
Other Income | Equity Securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | (2,600) | $ 400 | (11,600) | $ 2,100 | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 2,200 | $ 2,200 | $ 6,100 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost: | ||
Due in one or less | $ 134,591 | |
Due after one year through five years | 1,851,380 | |
Due after five years through ten years | 3,011,050 | |
Due after ten years | 3,057,086 | |
Fixed Maturities, Available-for-sale, amortized cost | 10,191,008 | $ 16,177,891 |
Fair Value: | ||
Due in one year or less | 136,840 | |
Due after one year through five years | 1,895,997 | |
Due after five years through ten years | 3,081,257 | |
Due after ten years | 3,285,760 | |
Fair Value | 10,577,150 | 18,584,685 |
Asset-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 1,266,654 | |
Fair Value: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,273,664 | |
Commercial mortgage-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 793,065 | |
Fair Value: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 822,917 | |
Residential mortgage-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 77,182 | |
Fair Value: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 80,715 | |
Fixed maturities | ||
Amortized Cost: | ||
Fixed Maturities, Available-for-sale, amortized cost | 10,191,008 | 16,177,891 |
Fair Value: | ||
Fair Value | 10,577,150 | 18,584,685 |
Fixed maturities | Asset-backed securities | ||
Amortized Cost: | ||
Fixed Maturities, Available-for-sale, amortized cost | 1,266,654 | 984,318 |
Fair Value: | ||
Fair Value | 1,273,664 | 992,583 |
Fixed maturities | Commercial mortgage-backed securities | ||
Amortized Cost: | ||
Fixed Maturities, Available-for-sale, amortized cost | 793,065 | 728,522 |
Fair Value: | ||
Fair Value | 822,917 | 785,942 |
Fixed maturities | Residential mortgage-backed securities | ||
Amortized Cost: | ||
Fixed Maturities, Available-for-sale, amortized cost | 77,182 | 69,909 |
Fair Value: | ||
Fair Value | $ 80,715 | $ 75,724 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 8,858,846 | $ 572,885 | ||
Available-for-sale | Fixed maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 215,523 | $ 20,268 | 8,008,956 | 352,945 |
Proceeds from maturities/prepayments | 195,328 | 88,208 | 606,621 | 220,109 |
Gross investment gains from sales and maturities | 157,167 | 24 | 1,295,797 | 18,279 |
Gross investment losses from sales and maturities | (14,452) | (366) | (75,069) | (1,856) |
Write-downs recognized in earnings | 0 | 0 | 22,619 | 693 |
(Addition to) release of allowance for credit losses | $ (1,891) | $ 414 | (1,540) | (568) |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ (243,300) | $ 200 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities - Available-for-sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | $ 335 | $ 982 | $ 686 | $ 0 |
Additions to allowance for credit losses not previously recorded | 2,226 | 216 | 2,658 | 1,384 |
Reductions for securities sold during the period | (282) | 0 | (295) | (2) |
Addition (reductions) on securities with previous allowance | (53) | (630) | (823) | (814) |
Balance, end of period | 2,226 | 568 | 2,226 | 568 |
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 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Foreign government bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
U.S. and Foreign Corporate Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 335 | 982 | 686 | 0 |
Additions to allowance for credit losses not previously recorded | 2,226 | 216 | 2,658 | 1,384 |
Reductions for securities sold during the period | (282) | 0 | (295) | (2) |
Addition (reductions) on securities with previous allowance | (53) | (630) | (823) | (814) |
Balance, end of period | 2,226 | 568 | 2,226 | 568 |
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,049,077 | $ 1,773,152 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for credit losses | $ (4,234) | $ (7,382) |
Total net commercial mortgage and agricultural property loans | 2,044,843 | 1,765,770 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 471,521 | $ 369,764 |
Commercial mortgage loans, Percentage | 23.00% | 20.90% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 28,525 | $ 16,679 |
Commercial mortgage loans, Percentage | 1.40% | 0.90% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 814,100 | $ 590,231 |
Commercial mortgage loans, Percentage | 39.70% | 33.30% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 323,811 | $ 374,107 |
Commercial mortgage loans, Percentage | 15.80% | 21.10% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 218,338 | $ 187,643 |
Commercial mortgage loans, Percentage | 10.70% | 10.60% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 100,815 | $ 130,154 |
Commercial mortgage loans, Percentage | 4.90% | 7.30% |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,957,110 | $ 1,668,578 |
Commercial mortgage loans, Percentage | 95.50% | 94.10% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 91,967 | $ 104,574 |
Commercial mortgage loans, Percentage | 4.50% | 5.90% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance, beginning of period | $ 5,583 | $ 6,879 | $ 7,382 | $ 2,663 |
Cumulative effect of adoption of ASU 2016-13 | 0 | 3,157 | ||
Addition to (release of) allowance for expected losses | (1,349) | 754 | (3,148) | 1,813 |
Allowance, end of period | 4,234 | 7,633 | 4,234 | 7,633 |
Commercial Mortgage Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance, beginning of period | 5,392 | 6,701 | 7,116 | 2,622 |
Cumulative effect of adoption of ASU 2016-13 | 0 | 3,118 | ||
Addition to (release of) allowance for expected losses | (1,236) | 646 | (2,960) | 1,607 |
Allowance, end of period | 4,156 | 7,347 | 4,156 | 7,347 |
Agricultural Property Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance, beginning of period | 191 | 178 | 266 | 41 |
Cumulative effect of adoption of ASU 2016-13 | 0 | 39 | ||
Addition to (release of) allowance for expected losses | (113) | 108 | (188) | 206 |
Allowance, end of period | $ 78 | $ 286 | $ 78 | $ 286 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,049,077 | $ 1,773,152 |
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 824,988 | 256,178 |
One Years Prior | 119,659 | 370,081 |
Two Years Prior | 322,417 | 107,164 |
Three Years Prior | 87,360 | 287,341 |
Four Years Prior | 167,976 | 289,478 |
Prior | 434,710 | 358,336 |
Recording investment gross of allowance for credit losses | 1,957,110 | 1,668,578 |
Commercial Mortgage Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 802,988 | 256,178 |
One Years Prior | 119,659 | 347,151 |
Two Years Prior | 291,455 | 107,164 |
Three Years Prior | 76,739 | 287,341 |
Four Years Prior | 134,416 | 274,124 |
Prior | 409,620 | 323,060 |
Recording investment gross of allowance for credit losses | 1,834,877 | 1,595,018 |
Commercial Mortgage Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 22,000 | 0 |
One Years Prior | 0 | 22,930 |
Two Years Prior | 19,890 | 0 |
Three Years Prior | 10,621 | 0 |
Four Years Prior | 12,278 | 3,969 |
Prior | 4,846 | 18,420 |
Recording investment gross of allowance for credit losses | 69,635 | 45,319 |
Commercial Mortgage Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 11,072 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 21,282 | 11,385 |
Prior | 20,244 | 16,856 |
Recording investment gross of allowance for credit losses | 52,598 | 28,241 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 38,000 | 49,507 |
One Years Prior | 26,970 | 13,769 |
Two Years Prior | 13,711 | 1,255 |
Three Years Prior | 1,238 | 7,493 |
Four Years Prior | 2,701 | 1,180 |
Prior | 9,347 | 31,370 |
Recording investment gross of allowance for credit losses | 91,967 | 104,574 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 38,000 | 49,507 |
One Years Prior | 26,970 | 13,769 |
Two Years Prior | 13,711 | 1,255 |
Three Years Prior | 1,238 | 4,277 |
Four Years Prior | 2,701 | 1,180 |
Prior | 5,908 | 27,783 |
Recording investment gross of allowance for credit losses | 88,528 | 97,771 |
Agricultural Property Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Property Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 3,216 |
Four Years Prior | 0 | 0 |
Prior | 3,439 | 3,587 |
Recording investment gross of allowance for credit losses | 3,439 | 6,803 |
0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 157,985 | 0 |
One Years Prior | 0 | 114,636 |
Two Years Prior | 103,674 | 36,423 |
Three Years Prior | 29,382 | 116,130 |
Four Years Prior | 96,901 | 175,740 |
Prior | 291,073 | 255,848 |
Recording investment gross of allowance for credit losses | 679,015 | 698,777 |
0%-59.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 38,000 | 47,245 |
One Years Prior | 26,970 | 13,769 |
Two Years Prior | 13,711 | 1,255 |
Three Years Prior | 1,238 | 7,493 |
Four Years Prior | 2,701 | 1,180 |
Prior | 9,347 | 31,370 |
Recording investment gross of allowance for credit losses | 91,967 | 102,312 |
60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 393,844 | 174,507 |
One Years Prior | 47,418 | 204,112 |
Two Years Prior | 155,279 | 59,935 |
Three Years Prior | 57,978 | 90,954 |
Four Years Prior | 49,793 | 57,569 |
Prior | 49,700 | 54,530 |
Recording investment gross of allowance for credit losses | 754,012 | 641,607 |
60%-69.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 2,262 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 2,262 |
70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 273,159 | 81,671 |
One Years Prior | 72,241 | 51,333 |
Two Years Prior | 63,464 | 10,806 |
Three Years Prior | 0 | 80,257 |
Four Years Prior | 21,282 | 56,169 |
Prior | 73,576 | 46,855 |
Recording investment gross of allowance for credit losses | 503,722 | 327,091 |
70%-79.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 0 | 0 |
Prior | 20,361 | 1,103 |
Recording investment gross of allowance for credit losses | 20,361 | 1,103 |
80% or greater | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Years Prior | 0 | 0 |
Two Years Prior | 0 | 0 |
Three Years Prior | 0 | 0 |
Four Years Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,049,077 | $ 1,773,152 |
Non-Accrual Status | 0 | 0 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,957,110 | 1,668,578 |
Non-Accrual Status | 0 | 0 |
Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 91,967 | 104,574 |
Non-Accrual Status | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,049,077 | 1,773,152 |
Current | Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,957,110 | 1,668,578 |
Current | Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 91,967 | 104,574 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
30-59 Days Past Due | Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
30-59 Days Past Due | Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,957,110 | 1,668,578 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 96,160 | $ 818,810 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 91,963 | 624,559 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 4,197 | 194,251 |
Equity Method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 82,334 | 613,947 |
Equity Method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 21,756 | 28,955 |
Equity Method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 0 | 340,951 |
Equity Method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 60,578 | 244,041 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 9,629 | 10,612 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 3,829 | 4,220 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 161 | 172 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 5,639 | $ 6,220 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Net Investment Income | |||
Accrued investment income | $ 74,015 | $ 110,000 | $ 121,604 |
Fixed maturities | |||
Net Investment Income | |||
Accrued investment income | 69,573 | 116,342 | |
Equity Securities | |||
Net Investment Income | |||
Accrued investment income | 0 | 1 | |
Commercial mortgage and other loans | |||
Net Investment Income | |||
Accrued investment income | 4,345 | 4,828 | |
Policy loans | |||
Net Investment Income | |||
Accrued investment income | 12 | 11 | |
Short-term investments and cash equivalents | |||
Net Investment Income | |||
Accrued investment income | 85 | 158 | |
Other | |||
Net Investment Income | |||
Accrued investment income | $ 0 | $ 264 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 108,645 | $ 151,356 | $ 407,697 | $ 445,997 |
Less: investment expenses | (7,327) | (6,687) | (21,172) | (19,865) |
Net investment income | 101,318 | 144,669 | 386,525 | 426,132 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 1,214 | 63 | 3,498 | 194 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 14,140 | 13,898 | 46,266 | 42,517 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 222 | 182 | 462 | 538 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 10,791 | 15,102 | 49,085 | 20,968 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 437 | 4,601 | 798 | 48,569 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 79,832 | 113,538 | 279,957 | 323,737 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 2,009 | $ 3,972 | $ 27,631 | $ 9,474 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 5,080,691 | $ (245,974) | $ 7,372,863 | $ (4,379,429) |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 140,824 | 72 | 1,196,569 | 15,162 |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 28,276 | (753) | 27,818 | (2,489) |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 4,906,067 | (246,742) | 6,139,403 | (4,397,341) |
Other invested assets | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 5,393 | 1,405 | 8,961 | 2,875 |
Short-term investments and cash equivalents | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 131 | $ 44 | $ 112 | $ 2,364 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 403,377 | $ 2,369,109 |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 153 | 2 |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 388,215 | 2,407,478 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 15,009 | (43,000) |
Affiliated notes, available-for-sale | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 0 | $ 4,629 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional | $ 37,864,796 | $ 200,749,958 |
Assets | 996,461 | 14,819,236 |
Liabilities | (1,247,310) | (11,952,846) |
Future policy benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (4,200,000) | (17,314,000) |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (1,458,000) | (580,000) |
Other assets | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 69,000 | 54,000 |
Other liabilities | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (31,000) | (35,000) |
Reinsurance Recoverables (Payables) | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 302,000 | 471,000 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 898,672 | 1,376,290 |
Assets | 26,388 | 23,167 |
Liabilities | (10,653) | (82,625) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 898,672 | 1,376,290 |
Assets | 26,388 | 23,167 |
Liabilities | (10,653) | (82,625) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 36,966,124 | 199,373,668 |
Assets | 970,073 | 14,796,069 |
Liabilities | (1,236,657) | (11,870,221) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 12,000 | 4,597,200 |
Assets | 142 | 2,755 |
Liabilities | 0 | (1,621) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 10,663,230 | 131,129,200 |
Assets | 373,323 | 12,448,036 |
Liabilities | (375,201) | (9,540,941) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 0 | 10,198,000 |
Assets | 0 | 608,538 |
Liabilities | 0 | (178,563) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 0 | 75,000 |
Assets | 0 | 464 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 54,352 | 34,988 |
Assets | 1,345 | 4 |
Liabilities | (123) | (557) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 463,694 | 228,117 |
Assets | 11,752 | 7,939 |
Liabilities | (1,645) | (8,440) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swap | ||
Derivative [Line Items] | ||
Notional | 1,672,000 | 1,574,173 |
Assets | 45,520 | 38,875 |
Liabilities | 0 | (52) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 1,744,706 | 5,558,882 |
Assets | 6,006 | 9,424 |
Liabilities | (7,336) | (24,688) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 4,336,238 | 22,121,729 |
Assets | 54,807 | 62,362 |
Liabilities | (48,142) | (1,162,907) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 18,019,904 | 23,856,379 |
Assets | 477,178 | 1,617,672 |
Liabilities | $ (804,210) | $ (952,452) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 996,461 | $ 14,819,236 |
Gross Amounts Offset in the Statements of Financial Position | (992,264) | (14,624,985) |
Net Amounts Presented in the Statements of Financial Position | 4,197 | 194,251 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 4,197 | 194,251 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 0 | 150,000 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 150,000 |
Financial Instruments/Collateral | 0 | (150,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 996,461 | 14,969,236 |
Gross Amounts Offset in the Statements of Financial Position | (992,264) | (14,624,985) |
Net Amounts Presented in the Statements of Financial Position | 4,197 | 344,251 |
Financial Instruments/Collateral | 0 | (150,000) |
Net Amount | 4,197 | 194,251 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 1,247,310 | 11,952,846 |
Gross Amounts Offset in the Statements of Financial Position | (960,518) | (11,936,059) |
Net Amounts Presented in the Statements of Financial Position | 286,792 | 16,787 |
Financial Instruments/Collateral | (286,792) | (16,787) |
Net Amount | 0 | 0 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 1,247,310 | 11,952,846 |
Gross amounts Offset in the Statements of Financial Position Agreements to Repurchase, Securities Loaned, Asset | (960,518) | (11,936,059) |
Net Amounts Presented in the Statements of Financial Position | 286,792 | 16,787 |
Financial Instruments/Collateral | (286,792) | (16,787) |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 4,906,067 | $ (246,742) | $ 6,139,403 | $ (4,397,341) |
Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,085 | 4,581 | 10,643 | 13,509 |
Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5,161 | (14,094) | 10,627 | (6,730) |
Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 32,718 | (45,498) | 58,009 | 22,964 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3,547 | (194) | 7,789 | 4,373 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,085 | 4,581 | 10,643 | 13,509 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5,160 | (13,989) | 10,662 | (6,694) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 32,718 | (45,498) | 58,009 | 22,964 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3,547 | (194) | 7,789 | 4,373 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,085 | 4,581 | 10,643 | 13,509 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5,160 | (13,989) | 10,662 | (6,694) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 32,718 | (45,498) | 58,009 | 22,964 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4,902,520 | (246,548) | 6,131,614 | (4,401,714) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (105) | (35) | (36) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (62,751) | (995,815) | (1,852,373) | 5,974,212 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,649 | (837) | 1,803 | 250 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9,413) | (17,813) | 816 | 12,270 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (105) | (35) | (36) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,631 | (344) | 10,991 | (5,872) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (18,433) | (2,116,755) | (1,798,400) | (1,931,846) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4,989,837 | 2,885,016 | 9,768,777 | (8,450,728) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Cash flow hedges in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ (43,000) |
Amount recorded in AOCI | 87,103 |
Amount reclassified into current period earnings | (29,094) |
Balance, ending | 15,009 |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount recorded in AOCI | 87,103 |
Amount reclassified into current period earnings | $ (29,094) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 10 | |
Credit Default Swaps Referencing Indices, Sell Protection | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,672 | $ 1,568 |
Credit Risk Derivatives, at Fair Value, Net | 45 | 39 |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 3 | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,597 | |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 6 | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 75 | |
Credit Default Swap, Buying Protection | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 6 |
Credit Risk Derivatives, at Fair Value, Net | $ 0 | $ 0 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 10,577,150 | $ 18,584,685 | |
Fixed maturities trading | 341,924 | 1,114,142 | |
Equity securities | 236,395 | 288,082 | |
Short-term investments | 95,313 | 318,161 | |
Other invested assets | 96,160 | 818,810 | |
Other Assets | 550,440 | $ 544,000 | 767,540 |
Reinsurance recoverables | 384,614 | 567,000 | 694,040 |
Receivables from parent and affiliates | 54,706 | 114,000 | 87,620 |
Separate account assets | 31,916,178 | 32,934,000 | 32,205,296 |
TOTAL ASSETS | 50,207,511 | 63,503,000 | 64,275,106 |
Future policy benefits | 13,707,000 | ||
Policyholders’ account balances | 10,718,803 | 9,181,459 | |
Payables to parent and affiliates | 329,775 | 34,000 | 47,345 |
Other Liabilities | 503,550 | 805,000 | 980,692 |
Total Liabilities | 48,150,543 | $ 60,545,000 | 61,573,961 |
Future policy benefits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 4,200,000 | 17,314,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 58,000 | 455,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 4,258,000 | 17,769,000 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 10,577,150 | 18,584,685 | |
Fixed maturities trading | 341,924 | 1,114,142 | |
Equity securities | 226,395 | 278,082 | |
Short-term investments | 90,312 | 153,161 | |
Cash equivalents | 1,285,231 | 533,133 | |
Other invested assets | 4,197 | 194,251 | |
Other Assets | 69,396 | 53,980 | |
Reinsurance recoverables | 302,251 | 471,245 | |
Receivables from parent and affiliates | 0 | 56,026 | |
Subtotal excluding separate account assets | 12,896,856 | 21,438,705 | |
Separate account assets | 31,916,178 | 32,205,296 | |
TOTAL ASSETS | 44,813,034 | 53,644,001 | |
Future policy benefits | 4,199,893 | 17,314,004 | |
Policyholders’ account balances | 1,457,772 | 580,184 | |
Payables to parent and affiliates | 282,553 | 0 | |
Other Liabilities | 35,414 | 50,202 | |
Total Liabilities | 5,975,632 | 17,944,390 | |
Assets Netting | (992,264) | (14,624,985) | |
Liabilities Netting | (960,518) | (11,936,059) | |
Netting | (32,000) | (2,689,000) | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (992,264) | (14,624,985) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (957,128) | (11,926,536) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (3,390) | (9,523) | |
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] | |||
Fair Value | 726,685 | 8,902,432 | |
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] | |||
Fair Value | 297,449 | 277,491 | |
Fair Value, Measurements, Recurring | Foreign government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 177,417 | 177,383 | |
Fair Value, Measurements, Recurring | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,007,070 | 3,450,407 | |
Fair Value, Measurements, Recurring | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,102,854 | 1,887,063 | |
Fair Value, Measurements, Recurring | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 757,608 | 541,825 | |
Fair Value, Measurements, Recurring | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,330,771 | 1,493,835 | |
Fair Value, Measurements, Recurring | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,273,664 | 992,583 | |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 822,917 | 785,942 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 80,715 | 75,724 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Fixed maturities trading | 0 | 0 | |
Equity securities | 225,561 | 234,452 | |
Short-term investments | 34,997 | 0 | |
Cash equivalents | 354,986 | 0 | |
Other invested assets | 6,148 | 39,906 | |
Other Assets | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 621,692 | 274,358 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 621,692 | 274,358 | |
Future policy benefits | 0 | 0 | |
Policyholders’ account balances | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Other Liabilities | 7,629 | 26,309 | |
Total Liabilities | 7,629 | 26,309 | |
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] | |||
Fair Value | 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] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 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] | |||
Fair Value | 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] | |||
Fair Value | 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] | |||
Fair Value | 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] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 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] | |||
Fair Value | 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] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 10,283,850 | 18,402,456 | |
Fixed maturities trading | 340,174 | 1,109,097 | |
Equity securities | 0 | 39,477 | |
Short-term investments | 43,545 | 143,161 | |
Cash equivalents | 930,245 | 533,133 | |
Other invested assets | 990,313 | 14,779,330 | |
Other Assets | 0 | 0 | |
Reinsurance recoverables | 0 | 62,232 | |
Receivables from parent and affiliates | 0 | 56,026 | |
Subtotal excluding separate account assets | 12,588,127 | 35,124,912 | |
Separate account assets | 31,916,178 | 32,205,296 | |
TOTAL ASSETS | 44,504,305 | 67,330,208 | |
Future policy benefits | 0 | 0 | |
Policyholders’ account balances | 0 | 0 | |
Payables to parent and affiliates | 1,239,681 | 11,926,536 | |
Other Liabilities | 31,175 | 33,416 | |
Total Liabilities | 1,270,856 | 11,959,952 | |
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] | |||
Fair Value | 711,685 | 8,887,432 | |
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] | |||
Fair Value | 297,449 | 277,491 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 177,417 | 177,383 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,007,070 | 3,450,407 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,999,725 | 1,804,855 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 757,407 | 541,644 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,210,413 | 1,427,537 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,239,072 | 974,041 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 822,917 | 785,942 | |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 60,695 | 75,724 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 293,300 | 182,229 | |
Fixed maturities trading | 1,750 | 5,045 | |
Equity securities | 834 | 4,153 | |
Short-term investments | 11,770 | 10,000 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Other Assets | 69,396 | 53,980 | |
Reinsurance recoverables | 302,251 | 409,013 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 679,301 | 664,420 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 679,301 | 664,420 | |
Future policy benefits | 4,199,893 | 17,314,004 | |
Policyholders’ account balances | 1,457,772 | 580,184 | |
Payables to parent and affiliates | 0 | 0 | |
Other Liabilities | 0 | 0 | |
Total Liabilities | 5,657,665 | 17,894,188 | |
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] | |||
Fair Value | 15,000 | 15,000 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 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] | |||
Fair Value | 103,129 | 82,208 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 201 | 181 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 120,358 | 66,298 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 34,592 | 18,542 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 20,020 | 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 | $ 9,600 | $ 10,600 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 239,035 | $ 279,096 | |
Future policy benefits | $ 13,707,000 | ||
Policyholders’ account balances | 10,718,803 | 9,181,459 | |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | 4,199,893 | 17,314,004 | |
Policyholders’ account balances | $ 1,457,772 | 580,184 | |
Level 3 | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Policyholder Age | 45 years | ||
Level 3 | Minimum | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Mortality rate | 0.00% | ||
Level 3 | Maximum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Policyholder Age | 90 years | ||
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 4,199,893 | 17,314,004 | |
Policyholders’ account balances | $ 1,457,772 | $ 580,184 | |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1.00% | 1.00% | |
Spread over LIBOR | 0.05% | 0.06% | |
Utilization rate | 39.00% | 39.00% | |
Withdrawal rate (greater than maximum range) | 76.00% | 76.00% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 17.00% | 18.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1.00% | 1.00% | |
Spread over LIBOR | 0.05% | 0.06% | |
Equity volatility curve | 6.00% | 6.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 2.34% | 0.99% | |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 6.5 | ||
Level 3 | Internal | Minimum | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 20.00% | 20.00% | |
Spread over LIBOR | 1.05% | 1.17% | |
Utilization rate | 96.00% | 96.00% | |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% | |
Mortality rate | 15.00% | 15.00% | |
Equity volatility curve | 26.00% | 26.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 42.00% | 40.00% | |
Spread over LIBOR | 1.05% | 1.17% | |
Equity volatility curve | 34.00% | 42.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 16.44% | 20.00% | |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 12.4 | ||
Level 3 | Internal | Maximum | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 4.43% | 6.53% | |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 8.9 | ||
Level 3 | Internal | Weighted Average | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 4,199,893 | $ 17,314,004 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Policyholders’ account balances | 1,457,772 | 580,184 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 190,885 | 59,960 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Reinsurance recoverables | $ 302,251 | $ 409,013 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 4,684 | $ 5,242 | $ 4,153 | $ 5,247 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | (3,874) | 0 | (3,874) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 834 | 6,180 | 834 | 6,180 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 24 | 938 | 555 | 933 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 24 | 939 | 555 | 934 |
Equity Securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity Securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 24 | 938 | 555 | 933 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 24 | 939 | 555 | 934 |
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 | 22,921 | 0 | 10,000 | 0 |
Purchases | 6,344 | 0 | 30,386 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (17,567) | 0 | (29,290) | 0 |
Other | (56) | 0 | 44 | 0 |
Transfers into Level 3 | 0 | 0 | 540 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 11,770 | 0 | 11,770 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 128 | 0 | 90 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | (34) | 0 |
Short-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 128 | 0 | 94 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | (34) | 0 |
Short-term investments | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | (4) | 0 |
Cash equivalents | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 25 | 0 | 0 | 0 |
Purchases | 0 | 0 | 138 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | (25) | 0 | (125) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | (13) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | (13) | 0 |
Cash equivalents | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | (13) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | (13) | 0 |
Cash equivalents | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 68,305 | 27,136 | 53,980 | 8,059 |
Purchases | 1,026 | 10,789 | 7,492 | 28,923 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (733) | (4) | (6,153) | (6) |
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 | 69,396 | 40,765 | 69,396 | 40,765 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 798 | 2,844 | 14,077 | 3,789 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 65 | 2,840 | 7,924 | 3,784 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 798 | 2,844 | 14,077 | 3,789 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 65 | 2,840 | 7,924 | 3,784 |
Other assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 302,009 | 539,123 | 409,013 | 302,814 |
Purchases | 4,268 | 4,287 | 12,812 | 12,850 |
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 | 302,251 | 488,335 | 302,251 | 488,335 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4,026) | (55,075) | (119,574) | 172,671 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,469) | (51,944) | (106,025) | 178,844 |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4,026) | (55,075) | (119,574) | 172,671 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,469) | (51,944) | (106,025) | 178,844 |
Reinsurance recoverables | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (12,530,109) | (23,998,671) | (17,314,004) | (11,822,998) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (49,559) | (291,756) | (631,444) | (858,366) |
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 | (4,199,893) | (21,325,619) | (4,199,893) | (21,325,619) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,379,775 | 2,964,808 | 13,745,555 | (8,644,255) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 13,942 | 2,776,482 | 1,281,075 | (8,923,218) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,379,775 | 2,964,808 | 13,745,555 | (8,644,255) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 13,942 | 2,776,482 | 1,281,075 | (8,923,218) |
Future policy benefits | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (1,361,320) | (226,072) | (580,184) | (196,892) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (87,987) | (42,423) | (361,145) | (92,937) |
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 | (1,457,772) | (303,060) | (1,457,772) | (303,060) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (8,465) | (34,565) | (516,443) | (13,231) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 543,302 | (22,855) | 79,361 | 9,727 |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (8,465) | (34,565) | (516,443) | (13,231) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 543,302 | (22,855) | 79,361 | 9,727 |
Policyholders' account balances | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 281 | 254 | (2,734) | 87 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (2,172) | 414 | (5,210) | (567) |
Available-for-sale | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6,335) | 1,683 | (2,766) | (4,442) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (3,391) | 1,432 | (1,718) | (5,760) |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 10 | 59 | 30 | 56 |
Available-for-sale | Fixed maturities | U.S. government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 15,000 | 12,216 | 15,000 | 10,547 |
Purchases | 0 | 1,000 | 0 | 2,669 |
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 | 15,000 | 13,216 | 15,000 | 13,216 |
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 | Corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 232,200 | 123,389 | 148,687 | 104,267 |
Purchases | 142,922 | 13,775 | 249,431 | 28,948 |
Sales | (10,700) | 7,775 | (10,700) | (1,190) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (14,040) | (8,624) | (45,362) | (14,434) |
Other | (122,057) | (7,775) | (122,057) | (7,775) |
Transfers into Level 3 | 1,409 | 7,819 | 16,556 | 32,951 |
Transfers out of Level 3 | 0 | (795) | (8,235) | (1,039) |
Fair Value, end of period | 223,688 | 137,391 | 223,688 | 137,391 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6,046) | 1,827 | (4,632) | (4,337) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5,886) | 1,689 | (6,409) | (6,353) |
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 | 216,363 | 18,128 | 18,542 | 18,825 |
Purchases | 32,350 | 1,899 | 235,148 | 8,044 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (1,894) | (599) | (6,031) | (1,674) |
Other | (19,859) | 0 | (19,859) | 0 |
Transfers into Level 3 | 0 | 312 | 0 | 312 |
Transfers out of Level 3 | (172,350) | 0 | (172,350) | (5,636) |
Fair Value, end of period | 54,612 | 19,909 | 54,612 | 19,909 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 2 | 169 | (838) | 38 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 323 | 157 | (519) | 26 |
Trading | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 5,350 | 4,301 | 5,045 | 4,464 |
Purchases | 1,750 | 0 | 1,750 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (5,350) | 0 | (5,350) | 0 |
Fair Value, end of period | 1,750 | 4,666 | 1,750 | 4,666 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 365 | 305 | 202 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 371 | 311 | 218 |
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 371 | 311 | 218 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 371 | 311 | 218 |
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ 0 | $ (6) | $ (6) | $ (16) |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | |||
Policy loans | $ 11,871 | $ 11,806 | |
Cash and cash equivalents | 1,413,331 | $ 2,091,000 | 1,069,211 |
Accrued investment income | 74,015 | 110,000 | 121,604 |
Reinsurance recoverables | 384,614 | 567,000 | 694,040 |
Receivables from parent and affiliates | 54,706 | 114,000 | 87,620 |
Liabilities: | |||
Long-term debt | 0 | 300,000 | 299,747 |
Reinsurance payables | 31,437 | $ 148,000 | 178,860 |
Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 2,109,355 | 1,836,633 | |
Policy loans | 11,871 | 11,806 | |
Short-term investments | 5,001 | 165,000 | |
Cash and cash equivalents | 128,100 | 536,078 | |
Accrued investment income | 74,015 | 121,604 | |
Reinsurance recoverables | 9,017 | 51,225 | |
Receivables from parent and affiliates | 54,706 | 31,594 | |
Other assets | 445,000 | 672,424 | |
Total assets | 2,837,065 | 3,426,364 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 2,384,386 | 2,426,471 | |
Short-term debt | 0 | 121,205 | |
Long-term debt | 0 | 332,451 | |
Reinsurance payables | 0 | 44,446 | |
Payables to parent and affiliates | 47,222 | 47,345 | |
Other liabilities | 493,697 | 757,968 | |
Separate account liabilities - investment contracts | 10 | 30 | |
Total liabilities | 2,925,315 | 3,729,916 | |
Carrying Amount | |||
Assets: | |||
Commercial mortgage and other loans | 2,044,843 | 1,765,770 | |
Policy loans | 11,871 | 11,806 | |
Short-term investments | 5,001 | 165,000 | |
Cash and cash equivalents | 128,100 | 536,078 | |
Accrued investment income | 74,015 | 121,604 | |
Reinsurance recoverables | 8,106 | 50,484 | |
Receivables from parent and affiliates | 54,706 | 31,594 | |
Other assets | 445,000 | 672,424 | |
Total assets | 2,771,642 | 3,354,760 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 2,372,734 | 2,406,100 | |
Short-term debt | 0 | 119,671 | |
Long-term debt | 0 | 299,747 | |
Reinsurance payables | 0 | 44,446 | |
Payables to parent and affiliates | 47,222 | 47,345 | |
Other liabilities | 493,697 | 757,968 | |
Separate account liabilities - investment contracts | 10 | 30 | |
Total liabilities | 2,913,663 | 3,675,307 | |
Level 1 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Short-term investments | 5,001 | 165,000 | |
Cash and cash equivalents | 128,100 | 386,078 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 133,101 | 551,078 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Reinsurance payables | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 0 | 0 | |
Separate account liabilities - investment contracts | 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 | 0 | 150,000 | |
Accrued investment income | 74,015 | 121,604 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 54,706 | 31,594 | |
Other assets | 22,145 | 278,355 | |
Total assets | 150,866 | 581,553 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 0 | 0 | |
Short-term debt | 0 | 121,205 | |
Long-term debt | 0 | 332,451 | |
Reinsurance payables | 0 | 0 | |
Payables to parent and affiliates | 47,222 | 47,345 | |
Other liabilities | 493,697 | 757,968 | |
Separate account liabilities - investment contracts | 10 | 30 | |
Total liabilities | 540,929 | 1,258,999 | |
Level 3 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 2,109,355 | 1,836,633 | |
Policy loans | 11,871 | 11,806 | |
Short-term investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 9,017 | 51,225 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 422,855 | 394,069 | |
Total assets | 2,553,098 | 2,293,733 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 2,384,386 | 2,426,471 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Reinsurance payables | 0 | 44,446 | |
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 0 | 0 | |
Separate account liabilities - investment contracts | 0 | 0 | |
Total liabilities | $ 2,384,386 | $ 2,470,917 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 777,976 | $ 134,587 | $ 1,247,276 | $ (964,981) | |
Effective income tax rate, percent | 20.71% | 25.91% | |||
Federal Statutory income tax rate, percent | 35.00% | 21.00% | |||
CARES Act NOL Carryback | $ 156,000 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 384,614 | $ 567,000 | $ 694,040 |
Deferred policy acquisition costs | 1,000,868 | 4,215,000 | 4,237,780 |
Deferred sales inducements | 294,029 | 692,000 | 714,598 |
Value of business acquired | 27,186 | 28,000 | 27,247 |
Other assets | 550,440 | 544,000 | 767,540 |
Policyholders’ account balances | 10,718,803 | 9,181,459 | |
Future policy benefits | 13,707,000 | ||
Reinsurance payables | 31,437 | 148,000 | 178,860 |
Other liabilities | 503,550 | $ 805,000 | 980,692 |
Impacts of Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | 384,614 | 694,040 | |
Deferred policy acquisition costs | (53,181) | 3,414,620 | |
Deferred sales inducements | (25,952) | 374,631 | |
Value of business acquired | (2,053) | (2,124) | |
Other assets | 55,470 | 61,471 | |
Policyholders’ account balances | 0 | 3,273,863 | |
Future policy benefits | 0 | 12,610,942 | |
Reinsurance payables | 31,437 | 178,860 | |
Other liabilities | 0 | 262,462 | |
Unaffiliated activity | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance payables | $ 0 | $ 2,300 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverables by Counterparty) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 384,614 | $ 567,000 | $ 694,040 |
Prudential Insurance | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 384,614 | 494,611 | |
Pruco Life | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 0 | 198,547 | |
Unaffiliated | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 0 | $ 882 |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Premiums: | ||||
Direct | $ 6,520 | $ 6,161 | $ 19,238 | $ 20,376 |
Assumed | 0 | 8,630 | 16,093 | 27,060 |
Ceded | (863) | (855) | (2,635) | (1,908) |
Net premiums | 5,657 | 13,936 | 32,696 | 45,528 |
Policy charges and fee income: | ||||
Direct | 112,675 | 102,669 | 328,795 | 304,593 |
Assumed | 0 | 395,381 | 819,191 | 1,161,236 |
Ceded | (6,538) | (8,610) | (20,118) | (23,838) |
Net policy charges and fee income | 106,137 | 489,440 | 1,127,868 | 1,441,991 |
Asset management and service fees: | ||||
Direct | 24,892 | 22,904 | 73,375 | 67,147 |
Assumed | 0 | 78,549 | 165,177 | 227,614 |
Ceded | (2,207) | (2,034) | (6,296) | (5,852) |
Net asset management and service fees | 22,685 | 99,419 | 232,256 | 288,909 |
Realized investment gains (losses), net: | ||||
Direct | (3,242,554) | (2,520,872) | (4,855,611) | 1,878,766 |
Assumed | 8,328,213 | 2,332,646 | 12,350,171 | (6,422,045) |
Ceded | (4,968) | (57,748) | (121,697) | 163,850 |
Realized investment gains (losses), net | 5,080,691 | (245,974) | 7,372,863 | (4,379,429) |
Policyholders' benefits (including change in reserves): | ||||
Direct | 19,028 | 14,018 | 43,533 | 73,651 |
Assumed | (256,596) | 30,844 | (253,812) | 181,079 |
Ceded | (4,203) | (1,038) | (5,475) | (6,145) |
Net policyholders' benefits (including change in reserves) | (241,771) | 43,824 | (215,754) | 248,585 |
Interest credited to policyholders’ account balances: | ||||
Direct | 43,018 | 40,428 | 139,185 | 73,983 |
Assumed | 399,099 | 43,457 | 476,408 | 89,311 |
Ceded | (1,662) | (2,601) | (5,969) | (2,294) |
Net interest credited to policyholders’ account balances | 440,455 | 81,284 | 609,624 | 161,000 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | 1,193,211 | 307,043 | 1,707,648 | 890,849 |
Unaffiliated activity | ||||
Policy charges and fee income: | ||||
Ceded | (400) | (1,700) | (400) | (2,400) |
Policyholders' benefits (including change in reserves): | ||||
Ceded | $ (2,900) | $ 100 | $ (3,300) | $ (300) |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 354,000 | $ 1,533,059 | ||
Income tax benefit (expense) | 18,436 | $ (7,006) | 331,786 | $ (327,672) |
Ending balance | 284,914 | 284,914 | ||
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (708) | (934) | ||
Change in OCI before reclassifications | (117) | (154) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 25 | 32 | ||
Ending balance | (800) | (1,056) | (800) | (1,056) |
Net Unrealized Investment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,533,767 | 429,546 | ||
Change in OCI before reclassifications | (354,151) | 1,586,843 | ||
Amounts reclassified from AOCI | (1,225,663) | (26,350) | ||
Income tax benefit (expense) | 331,761 | (327,704) | ||
Ending balance | 285,714 | 1,662,335 | 285,714 | 1,662,335 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,533,059 | 428,612 | ||
Change in OCI before reclassifications | (354,268) | 1,586,689 | ||
Amounts reclassified from AOCI | (1,225,663) | (26,350) | ||
Income tax benefit (expense) | 331,786 | (327,672) | ||
Ending balance | 284,914 | 1,661,279 | 284,914 | 1,661,279 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (43,000) | 0 | ||
Ending balance | $ 15,000 | $ 23,000 | $ 15,000 | $ 23,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (1,225,663) | $ (26,350) | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (1,225,663) | (26,350) | ||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 151,616 | $ (9,529) | 1,225,663 | 26,350 |
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 151,616 | (9,529) | 1,225,663 | 26,350 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 140,824 | 73 | 1,196,569 | 15,162 |
Reclassification out of Accumulated Other Comprehensive Income | Currency/Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | $ 10,792 | $ (9,602) | $ 29,094 | $ 11,188 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) on AFS Fixed Maturity Securities on which an allowance for credit losses has been recognized and All Other Investments) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 1,533,059 |
Ending balance | 284,914 |
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 | 2 |
Net investment gains (losses) on investments arising during the period | 2,017 |
Reclassification adjustment for (gains) losses included in net income | (1,991) |
Reclassification due to allowance for credit losses recorded during the period | 125 |
Impact of net unrealized investment (gains) losses | 0 |
Ending balance | 153 |
Net Unrealized Investment Gains (Losses) on All Other Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 2,369,107 |
Net investment gains (losses) on investments arising during the period | (742,086) |
Reclassification adjustment for (gains) losses included in net income | (1,223,672) |
Reclassification due to allowance for credit losses recorded during the period | (125) |
Impact of net unrealized investment (gains) losses | 0 |
Ending balance | 403,224 |
Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (363,429) |
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 | 325,247 |
Ending balance | (38,182) |
Future Policy Benefits and Other Liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (63,159) |
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 | 60,671 |
Ending balance | (2,488) |
Income Tax Benefit (Expense) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (408,754) |
Net investment gains (losses) on investments arising during the period | 155,611 |
Reclassification adjustment for (gains) losses included in net income | 257,295 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | (81,145) |
Ending balance | (76,993) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 1,533,767 |
Net investment gains (losses) on investments arising during the period | (584,458) |
Reclassification adjustment for (gains) losses included in net income | (968,368) |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | 304,773 |
Ending balance | $ 285,714 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||||||
Investment expense | $ 7,327,000 | $ 6,687,000 | $ 21,172,000 | $ 19,865,000 | ||||||
Commissions and fees | 106,137,000 | 489,440,000 | 1,127,868,000 | 1,441,991,000 | ||||||
Other invested assets | 96,160,000 | $ 818,810,000 | 96,160,000 | $ 818,810,000 | ||||||
Net investment income | 101,318,000 | 144,669,000 | 386,525,000 | 426,132,000 | ||||||
Fee income from revenue sharing agreement | 22,685,000 | 99,419,000 | 232,256,000 | 288,909,000 | ||||||
Accrued investment income | 74,015,000 | $ 110,000,000 | 121,604,000 | 74,015,000 | 121,604,000 | |||||
Long-term debt | 0 | 300,000,000 | 299,747,000 | 0 | 299,747,000 | |||||
Pruco Life | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Long-term debt | 300,000,000 | 300,000,000 | ||||||||
Market value of loan | 326,000,000 | 326,000,000 | ||||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | (24,000,000) | |||||||||
Prudential Insurance | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Stock option program plan expense | 100,000 | 0 | 400,000 | 100,000 | ||||||
Deferred compensation program expense | 300,000 | 200,000 | 1,500,000 | 500,000 | ||||||
Pension plan expense | 2,400,000 | 900,000 | 7,100,000 | 2,000,000 | ||||||
Welfare plan expense | 900,000 | 600,000 | $ 2,900,000 | 1,600,000 | ||||||
Defined contribution plan employer matching contribution percent | 4.00% | |||||||||
Defined contribution plan, cost recognized | 900,000 | 300,000 | $ 2,700,000 | 800,000 | ||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 0 | 900,000 | 1,700,000 | 1,200,000 | ||||||
Accrued interest receivable related to long-term notes receivables | 0 | 0 | 0 | 0 | ||||||
Revenue related to long-term notes receivable | 200,000 | 300,000 | 900,000 | 1,100,000 | ||||||
Accrued investment income | 0 | 300,000 | 0 | 300,000 | ||||||
Interest expense related to loans payable | 1,000,000 | 9,000,000 | 9,000,000 | 45,000,000 | ||||||
Affiliated Entity | PAD | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Commissions and fees | 110,000,000 | 61,000,000 | 347,000,000 | 113,000,000 | ||||||
Affiliated Entity | ASTISI and PGIM Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Fee income from revenue sharing agreement | 24,000,000 | 23,000,000 | 72,000,000 | 66,000,000 | ||||||
Affiliated Entity | PGIM | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Investment expense | 7,000,000 | 6,000,000 | 18,000,000 | 16,000,000 | ||||||
Prudential Financial Joint Venture | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other invested assets | 0 | 534,000,000 | 0 | 534,000,000 | ||||||
Net investment income | 0 | 8,000,000 | 17,000,000 | 5,000,000 | ||||||
Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Company's share of corporate expenses (benefits) | 7,000,000 | 5,000,000 | 20,000,000 | $ 11,000,000 | ||||||
Line of credit facility, maximum borrowing capacity | 9,000,000,000 | 9,000,000,000 | ||||||||
PAI | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contributed capital | $ 0 | 0 | ||||||||
Return of capital | $ 3,813,000,000 | $ 188,000,000 | $ 192,000,000 | $ 173,000,000 | $ 207,000,000 | |||||
Dividend | $ 188,000,000 | $ 192,000,000 | $ 0 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 0 | $ 56,025 |
U.S. dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 0 | $ 56,025 |
U.S. dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.62% | |
U.S. dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Commercial Mortgage Loan) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Commercial Mortgage Loans | $ 2,044,843 | $ 1,765,770 |
Affiliated Entity | Commercial Mortgage Loans | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.58% | |
Commercial Mortgage Loans | $ 0 | $ 74,005 |
Related Party Transactions (A_3
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Realized investment gains (losses), net | $ 5,080,691 | $ (245,974) | $ 7,372,863 | $ (4,379,429) |
Affiliated Entity | Prudential International Insurance Service Company March 2020 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 107,014 | 107,014 | ||
Book Value | 107,014 | 107,014 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance March 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 258,885 | 258,885 | ||
Book Value | 258,885 | 258,885 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance April 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 91,131 | 91,131 | ||
Book Value | 91,131 | 91,131 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance June 2020 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 65,646 | 65,646 | ||
Book Value | 57,699 | 57,699 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 7,947 | |||
Affiliated Entity | Gibraltar life insurance company June 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 222,091 | 222,091 | ||
Book Value | 222,091 | 222,091 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance April 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 200,873 | 200,873 | ||
Book Value | 200,873 | 200,873 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance April 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 176,904 | 176,904 | ||
Book Value | 176,904 | 176,904 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Vantage Casualty Insurance Co June 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 14,662 | 14,662 | ||
Book Value | 14,662 | 14,662 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance June 2021 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 3,050 | 3,050 | ||
Book Value | 3,013 | 3,013 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 37 | |||
Affiliated Entity | Pruco Life June 2021 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 40,284 | 40,284 | ||
Book Value | 38,026 | 38,026 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 2,258 | |||
Affiliated Entity | Passaic Fund LLC June 2021 Transfer Out | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 12,350 | 12,350 | ||
Book Value | 12,350 | 12,350 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Passaic Fund LLC July 2021 Transfer Out | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 195,776 | 195,776 | ||
Book Value | 195,926 | 195,926 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | (150) | |||
Affiliated Entity | Prudential Insurance September 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 2,104 | 2,104 | ||
Book Value | 2,104 | 2,104 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 11,788 | 11,788 | ||
Book Value | 10,844 | 10,844 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 944 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Company September 2021 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 26,086 | 26,086 | ||
Book Value | 24,349 | 24,349 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 1,737 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Company September 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 35,311 | 35,311 | ||
Book Value | 35,311 | 35,311 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 71 | 71 | ||
Book Value | 71 | 71 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses), net | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Company September 2021 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | (991) | (991) | ||
Book Value | (991) | (991) | ||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | ||
Realized investment gains (losses), net | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 419,418 |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 93,671 |
Interest Rate | 3.47% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 93,671 |
Interest Rate | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 28,102 |
Interest Rate | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 93,671 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 37,468 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 46,835 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 26,000 |
Interest Rate | 2.59% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingent Liabilities [Line Items] | |||||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 150 | $ 150 | |||
Commitments | Commercial Mortgage Loans | |||||
Commitments and Contingent Liabilities [Line Items] | |||||
Total outstanding mortgage loan commitments | 303 | 303 | $ 48 | ||
Allowance or related charges for credit losses | 0 | 0 | 0 | ||
Change in allowance for credit losses | 0 | $ 0 | 0 | $ 0 | |
Commitments | Investments | |||||
Commitments and Contingent Liabilities [Line Items] | |||||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 652 | 652 | $ 305 | ||
Purchase Commitment | |||||
Commitments and Contingent Liabilities [Line Items] | |||||
Change in allowance for credit losses | $ 0 | $ 0 | $ 0 | $ 0 |