PRUCO LIFE INSURANCE CO, 10-Q filed on 8/12/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2020
Aug. 12, 2020
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Fiscal Year Focus 2020  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q2  
Document Transition Report false  
Entity File Number 033-37587  
Entity Registrant Name PRUCO LIFE INSURANCE CO  
Entity Central Index Key 0000777917  
Entity Incorporation, State or Country Code AZ  
Entity Tax Identification Number 22-1944557  
Entity Address, Address Line One 213 Washington Street  
Entity Address, City or Town Newark  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07102  
City Area Code 973  
Local Phone Number 802-6000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   250,000
v3.20.2
Unaudited Interim Consolidated Statements of Financial Position - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
ASSETS    
Fixed maturities, available for sale, at fair value (amortized cost: 2020 – $5,550,300; 2019 – $5,283,266; 2020-net of $4,572 allowance for credit losses) $ 6,106,322 $ 5,681,970
Fixed maturities, trading, at fair value (amortized cost: 2020 – $59,995; 2019 – $59,995) 56,707 59,964
Equity securities, at fair value (cost: 2020 – $6,212; 2019 – $6,360) 9,559 10,494
Policy loans 1,320,636 1,314,064
Short-term investments 101,967 0
Commercial mortgage and other loans (net of $4,559 and $1,768 allowance for credit losses at June 30, 2020 and December 31, 2019, respectively) 1,198,559 [1] 1,239,885
Other invested assets (includes $106,550 and $87,456 of assets measured at fair value at June 30, 2020 and December 31, 2019, respectively) 468,005 429,558
Total investments 9,261,755 8,735,935
Cash and cash equivalents 713,781 563,199
Deferred policy acquisition costs 2,120,749 [1] 1,855,698
Accrued investment income 89,439 89,448
Reinsurance recoverables 52,917,099 [1] 40,710,159
Receivables from parent and affiliates 297,911 271,981
Income taxes receivable 119,823 [1] 102,652
Other assets 439,055 441,543
Separate account assets 130,903,117 138,387,772
TOTAL ASSETS 196,862,729 191,158,387
LIABILITIES    
Future policy benefits 37,371,656 [1] 25,258,673
Policyholders’ account balances 23,433,178 [1] 22,878,823
Cash collateral for loaned securities 2,700 7,529
Short-term debt to affiliates 0 2,845
Payables to parent and affiliates 88,384 216,842
Other liabilities 1,473,182 [1] 1,390,876
Separate account liabilities 130,903,117 138,387,772
Total liabilities 193,272,217 188,143,360
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY    
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding) 2,500 2,500
Additional paid-in capital 1,476,690 1,153,632
Retained earnings 1,682,845 1,577,453
Accumulated other comprehensive income (loss) 428,477 281,442
Total equity 3,590,512 3,015,027
TOTAL LIABILITIES AND EQUITY $ 196,862,729 $ 191,158,387
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Fixed maturities, available for sale, amortized cost $ 5,550,300 $ 5,283,266
Fixed Maturities, Available-for-sale, allowance for credit losses 4,572  
Fixed maturities, trading, amortized cost 59,995 59,995
Equity securities, cost 6,212 6,360
Commercial mortgage and other loans, allowance for credit losses 4,559 1,768
Other invested assets, at fair value $ 106,550 $ 87,456
Common stock, par value (in dollars per share) $ 10 $ 10
Common stock, shares authorized 1,000,000 1,000,000
Common stock, shares issued 250,000 250,000
Common stock, shares outstanding 250,000 250,000
v3.20.2
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
REVENUES        
Premiums $ 22,544 $ 12,417 $ 37,415 $ 26,411
Policy charges and fee income 161,085 148,671 301,004 287,860
Net investment income 83,462 105,562 163,043 198,812
Asset administration fees 4,302 3,961 8,690 7,618
Other income 14,892 14,998 23,728 35,955
Realized investment gains (losses), net (80,231) (52,250) 9,664 (100,885)
TOTAL REVENUES 206,054 233,359 543,544 455,771
BENEFITS AND EXPENSES        
Policyholders’ benefits 86,253 46,291 172,176 85,769
Interest credited to policyholders’ account balances 66,417 50,710 121,463 94,907
Amortization of deferred policy acquisition costs 13,638 41,672 62,947 60,851
General, administrative and other expenses 59,118 80,564 135,032 128,508
TOTAL BENEFITS AND EXPENSES 225,426 219,237 491,618 370,035
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE (19,372) 14,122 51,926 85,736
Income tax expense (benefit) (29,417) (34,585) (56,518) (51,465)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE 10,045 48,707 108,444 137,201
Equity in earnings of operating joint venture, net of taxes (513) (272) (1,300) (978)
NET INCOME (LOSS) 9,532 48,435 107,144 136,223
Other comprehensive income (loss), before tax:        
Foreign currency translation adjustments 16,514 958 (3,888) 7,007
Net unrealized investment gains (losses) 325,293 183,514 191,027 343,599
Total 341,807 184,472 187,139 350,606
Less: Income tax expense (benefit) related to other comprehensive income (loss) 68,391 38,512 40,104 72,145
Other comprehensive income (loss), net of taxes 273,416 145,960 147,035 278,461
Comprehensive income (loss) $ 282,948 $ 194,395 $ 254,179 $ 414,684
v3.20.2
Unaudited Interim Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total Equity
Cumulative effect of adoption of accounting changes
Retained Earnings
Cumulative effect of adoption of accounting changes
Total Equity
Beginning Balance at Dec. 31, 2018   $ 2,500 $ 1,146,592 $ 1,612,435 $ (28,296) $ 2,733,231 $ (1,114) [1] $ (1,114) [1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Contributed (distributed) capital-parent/child asset transfers     (4)     (4)    
Contributed capital     0     0    
Comprehensive income (loss):                
Net income (loss)       87,788   87,788    
Other comprehensive income (loss), net of tax         132,501 132,501    
Total comprehensive income (loss)           220,289    
Ending Balance at Mar. 31, 2019   2,500 1,146,588 1,699,109 104,205 2,952,402    
Beginning Balance at Dec. 31, 2018   2,500 1,146,592 1,612,435 (28,296) 2,733,231 (1,114) [1] (1,114) [1]
Comprehensive income (loss):                
Net income (loss) $ 136,223              
Other comprehensive income (loss), net of tax 278,461              
Ending Balance at Jun. 30, 2019   2,500 1,146,588 1,747,544 250,165 3,146,797    
Beginning Balance at Mar. 31, 2019   2,500 1,146,588 1,699,109 104,205 2,952,402    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Contributed (distributed) capital-parent/child asset transfers     0     0    
Contributed capital     0     0    
Comprehensive income (loss):                
Net income (loss) 48,435     48,435   48,435    
Other comprehensive income (loss), net of tax 145,960       145,960 145,960    
Total comprehensive income (loss)           194,395    
Ending Balance at Jun. 30, 2019   2,500 1,146,588 1,747,544 250,165 3,146,797    
Beginning Balance at Dec. 31, 2019   2,500 1,153,632 1,577,453 281,442 3,015,027 (1,752) [2] (1,752) [2]
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Contributed (distributed) capital-parent/child asset transfers     0     0    
Comprehensive income (loss):                
Net income (loss)       97,612   97,612    
Other comprehensive income (loss), net of tax         (126,381) (126,381)    
Total comprehensive income (loss)           (28,769)    
Ending Balance at Mar. 31, 2020   2,500 1,153,632 1,673,313 155,061 2,984,506    
Beginning Balance at Dec. 31, 2019   2,500 1,153,632 1,577,453 281,442 3,015,027 $ (1,752) [2] $ (1,752) [2]
Comprehensive income (loss):                
Net income (loss) 107,144              
Other comprehensive income (loss), net of tax 147,035              
Ending Balance at Jun. 30, 2020   2,500 1,476,690 1,682,845 428,477 3,590,512    
Beginning Balance at Mar. 31, 2020   2,500 1,153,632 1,673,313 155,061 2,984,506    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Contributed (distributed) capital-parent/child asset transfers     (1,942)     (1,942)    
Contributed capital     325,000     325,000    
Comprehensive income (loss):                
Net income (loss) 9,532     9,532   9,532    
Other comprehensive income (loss), net of tax $ 273,416       273,416 273,416    
Total comprehensive income (loss)           282,948    
Ending Balance at Jun. 30, 2020   $ 2,500 $ 1,476,690 $ 1,682,845 $ 428,477 $ 3,590,512    
[1]
Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information.
[2]
Includes the impact from the adoption of ASU 2016-13. See Note 2.
v3.20.2
Unaudited Interim Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 107,144 $ 136,223
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Policy charges and fee income (39,490) (32,885) [1]
Interest credited to policyholders’ account balances 121,463 94,907
Realized investment (gains) losses, net (9,664) 100,885
Amortization and other non-cash items (18,346) (52,217)
Change in:    
Future policy benefits 1,380,155 1,388,982
Reinsurance recoverables (1,236,738) (1,339,652)
Accrued investment income 9 (4,889)
Net payables to/receivables from parent and affiliates (156,618) (69,192)
Deferred policy acquisition costs (278,479) (133,641)
Income taxes (56,291) (93,244)
Derivatives, net 67,672 98,778
Other, net (59,424) (32,189)
Cash flows from (used in) operating activities (178,607) 61,866
Proceeds from the sale/maturity/prepayment of:    
Fixed maturities, available-for-sale 150,587 179,330
Equity securities 192 21,656
Policy loans 86,793 78,129
Ceded policy loans (6,573) (6,285)
Short-term investments 99,606 369
Commercial mortgage and other loans 74,985 36,892
Other invested assets 4,706 10,206
Payments for the purchase/origination of:    
Fixed maturities, available-for-sale (369,432) (566,299)
Fixed maturities, trading 0 (6,015)
Equity securities (6) (110)
Policy loans (73,633) (81,818)
Ceded policy loans 12,948 8,112
Short-term investments (201,551) (463)
Commercial mortgage and other loans (41,429) (53,190)
Other invested assets (34,816) (34,855)
Notes receivable from parent and affiliates, net (5,254) 9,995
Derivatives, net (9,799) 729
Other, net 1,317 (3,404)
Cash flows from (used in) investing activities (311,359) (407,021)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Policyholders’ account deposits 2,454,899 2,702,683
Ceded policyholders’ account deposits (1,796,974) (1,784,740)
Policyholders’ account withdrawals (1,653,848) (1,777,827) [1]
Ceded policyholders’ account withdrawals 1,341,955 1,241,925
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities (4,829) (3,980)
Contributed capital 325,000 0
Contributed (distributed) capital - parent/child asset transfers (2,458) (5)
Net change in all other financing arrangements (maturities 90 days or less) (2,845) 0
Drafts outstanding (17,252) 3,581
Other, net (3,100) (37,825) [1]
Cash flows from (used in) financing activities 640,548 343,812
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 150,582 (1,343)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 563,199 416,840
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 713,781 $ 415,497
[1] Prior period amounts have been revised to correct an error. See Note 11 for details.
v3.20.2
Business and Basis of Presentation
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business and Basis of Presentation BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors.

Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only. Pruco Life and its subsidiary are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products; valuation of investments including derivatives, measurement of allowance for credit losses, and recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

COVID-19

Beginning in the first quarter of 2020, the outbreak of the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets and has adversely impacted, and may continue to adversely impact, our 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 our 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, morbidity and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, etc.). We cannot predict what impact the COVID-19 pandemic will ultimately have on the global economy, markets or our businesses.





Revision to Prior Period Consolidated Financial Statements

The Company identified an error in the presentation of certain cash flow activity related to policyholders' account balances that impacted several line items within previously issued Consolidated Statements of Cash Flows. Prior period amounts have been revised in the financial statements to correct this error. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. See Note 11 for a more detailed description of the revision and for comparisons of amounts previously reported to the revised amounts.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.
v3.20.2
Significant Accounting Policies and Pronouncements
 6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Significant Accounting Policies and Pronouncements SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of June 30, 2020, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Adoption of ASU 2016-13

The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis.

This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment.

The impacts of this ASU on the Company’s Consolidated Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

(1) Cumulative Effect Adjustment Upon Adoption

Adoption of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.8 million, primarily related to commercial mortgage and other loans. The impact of adoption is not material to the following financial statement line items: deferred policy acquisition costs; reinsurance recoverables; income taxes receivable; future policy benefits; policyholders' account balances; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings.

(2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations

The allowance for credit losses is presented parenthetically on relevant line items in the Consolidated Statements of Financial Position. In the Consolidated Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial.

(3) Changes to Accounting Policies

This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13.

Fixed maturities, available-for-sale

Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not.

AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer.

When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value.

For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.”

Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment.

Commercial mortgage and other loans

Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance.

The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans.

For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model.

Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below.

Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s operations do not generate enough income to cover the loan’s current debt payments. A debt-service-coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt-service-coverage ratios related to the Company’s commercial mortgage and agricultural mortgage loan portfolios. Generally, every loan is re-rated at least annually.

Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations.

When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities”, and the change in the allowance is reported in “Realized investment gains (losses), net.”

When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through "Realized investment gains (losses), net." The carrying amount of the loan is not adjusted for subsequent recoveries in value.

The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.”

Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments.

Reinsurance

Reinsurance recoverables are reported on the Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.”

Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner.

Other ASUs adopted during the six months ended June 30, 2020.
Standard
 
Description
 
Effective date and method of adoption
 
Effect on the financial statements or other significant matters
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation
of the Effects of Reference Rate Reform on Financial Reporting
 
This ASU provides optional relief for certain contracts impacted by reference rate reform. The standard permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU also temporarily (until December 31, 2022) allows hedge relationships to continue without de-designation upon changes due to reference rate reform.
 
March 12, 2020 to December 31, 2022 using the prospective method.

 
This ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
The Company made the election under ASU 2020-04 for all applicable contracts as they converted from the current reference rate to the new reference rate.



ASU issued but not yet adopted as of June 30, 2020 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In 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, the FASB voted in June 2020 to tentatively defer for an additional one year the current 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. Subsequently in July 2020, the FASB issued a proposed ASU with a comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

ASU 2018-12 Amended Topic
 
Description
 
Method of adoption
 
Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products
 
Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations.
 
An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in Accumulated Other Comprehensive Income (loss) ("AOCI") or (2) a full retrospective transition method.
 
The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products
 
Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through OCI.
 
As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.
 
Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.
Amortization of DAC and other balances
 
Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.
 
An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.
 
The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits
 
Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record market risk benefit 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 that is 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 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.
 
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.
v3.20.2
Investments
 6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Investments
3.    INVESTMENTS

Fixed Maturity Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:
 
June 30, 2020
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Allowance for Credit Losses
 
Fair
Value
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
124,521

 
$
3,921

 
$
0

 
$
0

 
$
128,442

Obligations of U.S. states and their political subdivisions
460,917

 
51,958

 
0

 
0

 
512,875

Foreign government bonds
190,655

 
32,670

 
42

 
0

 
223,283

U.S. public corporate securities
2,060,742

 
342,008

 
7,976

 
0

 
2,394,774

U.S. private corporate securities
898,457

 
70,998

 
4,803

 
1,899

 
962,753

Foreign public corporate securities
225,423

 
28,997

 
2,762

 
0

 
251,658

Foreign private corporate securities
969,193

 
40,731

 
32,418

 
2,673

 
974,833

Asset-backed securities(1)
122,786

 
658

 
2,554

 
0

 
120,890

Commercial mortgage-backed securities
437,874

 
34,650

 
0

 
0

 
472,524

Residential mortgage-backed securities(2)
59,732

 
4,558

 
0

 
0

 
64,290

Total fixed maturities, available-for-sale
$
5,550,300

 
$
611,149

 
$
50,555

 
$
4,572

 
$
6,106,322


(1)
Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and home equity loans.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
OTTI
in AOCI(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
83,622

 
$
2,846

 
$
0

 
$
86,468

 
$
0

Obligations of U.S. states and their political subdivisions
458,152

 
39,675

 
0

 
497,827

 
0

Foreign government bonds
196,034

 
26,793

 
1

 
222,826

 
0

U.S. public corporate securities
1,914,503

 
229,071

 
2,247

 
2,141,327

 
0

U.S. private corporate securities
886,281

 
44,497

 
1,006

 
929,772

 
0

Foreign public corporate securities
256,843

 
22,158

 
385

 
278,616

 
0

Foreign private corporate securities
939,603

 
38,426

 
19,551

 
958,478

 
0

Asset-backed securities(1)
119,602

 
800

 
466

 
119,936

 
(7
)
Commercial mortgage-backed securities
367,848

 
15,231

 
163

 
382,916

 
0

Residential mortgage-backed securities(2)
60,778

 
3,050

 
24

 
63,804

 
(131
)
Total fixed maturities, available-for-sale
$
5,283,266

 
$
422,547

 
$
23,843

 
$
5,681,970

 
$
(138
)

(1)
Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(3)
Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $1.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

The following table sets 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 date indicated:

 
June 30, 2020
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Foreign government bonds
$
2,119

 
$
42

 
$
0

 
$
0

 
$
2,119

 
$
42

U.S. public corporate securities
119,249

 
6,812

 
4,858

 
1,164

 
124,107

 
7,976

U.S. private corporate securities
85,321

 
4,514

 
3,772

 
287

 
89,093

 
4,801

Foreign public corporate securities
10,640

 
819

 
5,312

 
1,943

 
15,952

 
2,762

Foreign private corporate securities
148,434

 
5,474

 
192,258

 
26,330

 
340,692

 
31,804

Asset-backed securities
47,117

 
1,087

 
55,368

 
1,467

 
102,485

 
2,554

Commercial mortgage-backed securities
0

 
0

 
0

 
0

 
0

 
0

Residential mortgage-backed securities
83

 
0

 
0

 
0

 
83

 
0

Total fixed maturities, available-for-sale
$
412,963

 
$
18,748

 
$
261,568

 
$
31,191

 
$
674,531

 
$
49,939


The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date indicated:

 
December 31, 2019
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Foreign government bonds
$
2,152

 
$
1

 
$
400

 
$
0

 
$
2,552

 
$
1

U.S. public corporate securities
81,622

 
984

 
19,206

 
1,263

 
100,828

 
2,247

U.S. private corporate securities
33,264

 
780

 
22,143

 
226

 
55,407

 
1,006

Foreign public corporate securities
3,839

 
23

 
9,379

 
362

 
13,218

 
385

Foreign private corporate securities
32,800

 
921

 
186,693

 
18,630

 
219,493

 
19,551

Asset-backed securities
32,361

 
243

 
55,461

 
223

 
87,822

 
466

Commercial mortgage-backed securities
22,153

 
163

 
0

 
0

 
22,153

 
163

Residential mortgage-backed securities
3,049

 
16

 
692

 
8

 
3,741

 
24

Total fixed maturities, available-for-sale
$
211,240

 
$
3,131

 
$
293,974

 
$
20,712

 
$
505,214

 
$
23,843



As of June 30, 2020, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $31.9 million related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $18.0 million, related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2020, the $31.2 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, energy and consumer non-cyclical sectors.

As of December 31, 2019, the gross unrealized losses on fixed maturity securities were composed of $16.0 million related to “1” highest quality or “2” high quality securities based on the NAIC or equivalent rating and $7.8 million related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2019, the $20.7 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, energy and consumer non-cyclical sectors.

In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at June 30, 2020. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of June 30, 2020, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

 
June 30, 2020
 
Amortized Cost
 
Fair Value
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
Due in one year or less
$
238,403

 
$
240,471

Due after one year through five years
730,695

 
744,717

Due after five years through ten years
958,937

 
998,183

Due after ten years
3,001,873

 
3,465,247

Asset-backed securities
122,786

 
120,890

Commercial mortgage-backed securities
437,874

 
472,524

Residential mortgage-backed securities
59,732

 
64,290

Total fixed maturities, available-for-sale
$
5,550,300

 
$
6,106,322



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, impairments and the allowance for credit losses of fixed maturities, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
Proceeds from sales(1)
$
5,223

 
$
28,231

 
$
12,941

 
$
53,018

Proceeds from maturities/prepayments
55,968

 
75,554

 
137,754

 
128,429

Gross investment gains from sales and maturities
39

 
(1,384
)
 
592

 
(435
)
Gross investment losses from sales and maturities
(1,663
)
 
(1,105
)
 
(1,736
)
 
(3,075
)
OTTI recognized in earnings(2)
N/A

 
0

 
N/A

 
(3,163
)
Write-downs recognized in earnings(3)
(77
)
 
N/A

 
(1,022
)
 
N/A

(Addition to) release of allowance for credit losses(4)
$
(2,362
)
 
N/A

 
(4,572
)
 
N/A


(1)
Includes $0.1 million and $2.1 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019, respectively.
(2)
For the three and six months ended June 30, 2019, amounts exclude the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
(3)
For the three and six months ended June 30, 2020, amounts represent write-downs on securities approaching maturity related to foreign exchange movements and securities actively marketed for sale.
(4)
Effective January 1, 2020, credit losses on available-for-sale fixed maturity securities are recorded within the “allowance for credit losses.”

The following table sets forth the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated:

 
June 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 year
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Additions to allowance for credit losses not previously recorded
0

 
0

 
4,891

 
0

 
0

 
0

 
4,891

Reductions for securities sold during the period
0

 
0

 
(9
)
 
0

 
0

 
0

 
(9
)
Addition (reductions) on securities with previous allowance
0

 
0

 
(310
)
 
0

 
0

 
0

 
(310
)
Balance, end of period
$
0

 
$
0

 
$
4,572

 
$
0

 
$
0

 
$
0

 
$
4,572



See Note 2 for additional information about the Company’s methodology for developing our allowance and expected losses.

As of June 30, 2020, the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows on private corporate securities.

The Company did not have any fixed maturity securities purchased with credit deterioration, as of June 30, 2020.
Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was less than $(0.1) million and $(0.5) million during the three months ended June 30, 2020 and 2019, respectively, and $(0.8) million and $0.2 million during the six months ended June 30, 2020 and 2019, respectively.

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
Amount
(in thousands)
 
% of
Total
 
Amount
(in thousands)
 
% of
Total
Commercial mortgage and agricultural property loans by property type:
 
 
 
 
 
 
 
Apartments/Multi-Family
$
356,713

 
29.7
%
 
$
355,175

 
28.6
%
Hospitality
33,673

 
2.8

 
31,449

 
2.5

Industrial
310,332

 
25.8

 
299,803

 
24.1

Office
189,770

 
15.8

 
205,498

 
16.6

Other
139,624

 
11.6

 
136,841

 
11.0

Retail
151,200

 
12.6

 
190,690

 
15.4

Total commercial mortgage loans
1,181,312

 
98.3

 
1,219,456

 
98.2

Agricultural property loans
20,879

 
1.7

 
22,197

 
1.8

Total commercial mortgage and agricultural property loans by property type
1,202,191

 
100.0
%
 
1,241,653

 
100.0
%
Allowance for credit losses
(4,559
)
 
 
 
(1,768
)
 
 
Total net commercial mortgage and agricultural property loans by property type
1,197,632

 
 
 
1,239,885

 
 
Other loans:
 
 
 
 
 
 
 
Other collateralized loans
927

 
 
 
0

 
 
Total other loans
927

 
 
 
0

 
 
Allowance for credit losses
0

 
 
 
0

 
 
Total net other loans
927

 
 
 
0

 
 
Total commercial mortgage and other loans
$
1,198,559

 
 
 
$
1,239,885

 
 


As of June 30, 2020, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (22%), Texas (14%) and New York (8%)) and included loans secured by properties in Europe (9%), Mexico (3%) and Australia (2%).

The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Other Collateralized Loans
 
Total
 
(in thousands)
Balance at December 31, 2018
$
2,026

 
$
39

 
$
0

 
$
2,065

Addition to (release of) allowance for credit losses
(283
)
 
(14
)
 
0

 
(297
)
Balance at December 31, 2019
1,743

 
25

 
0

 
1,768

Cumulative effect of adoption of ASU 2016-13
2,495

 
(8
)
 
0

 
2,487

Addition to (release of) allowance for expected losses
311

 
(7
)
 
0

 
304

Balance at June 30, 2020
$
4,549

 
$
10

 
$
0

 
$
4,559



See Note 2 for additional information about the Company's methodology for developing our allowance and expected losses.

As of June 30, 2020, the increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the cumulative effect of adoption of ASU 2016-13.

The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:
 
June 30, 2020
 
Amortized Cost by Origination Year
 
2020
 
2019
 
2018
 
2017
 
2016
 
Prior
 
Revolving Loans
 
Total
 
(in thousands)
Loan-to-Value Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
$
0

 
$
57,680

 
$
35,787

 
$
90,979

 
$
164,124

 
$
256,759

 
$
0

 
$
605,329

60%-69.99%
16,864

 
65,000

 
80,324

 
53,111

 
90,127

 
91,606

 
0

 
397,032

70%-79.99%
7,627

 
45,957

 
81,130

 
32,826

 
9,628

 
1,561

 
0

 
178,729

80% or greater
0

 
0

 
0

 
0

 
0

 
222

 
0

 
222

Subtotal
24,491

 
168,637

 
197,241

 
176,916

 
263,879

 
350,148

 
0

 
1,181,312

Agricultural property loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
0

 
0

 
0

 
6,486

 
0

 
14,393

 
0

 
20,879

60%-69.99%
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

70%-79.99%
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

80% or greater
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

Subtotal
0

 
0

 
0

 
6,486

 
0

 
14,393

 
0

 
20,879

Total commercial mortgage and agricultural property loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
0

 
57,680

 
35,787

 
97,465

 
164,124

 
271,152

 
0

 
626,208

60%-69.99%
16,864

 
65,000

 
80,324

 
53,111

 
90,127

 
91,606

 
0

 
397,032

70%-79.99%
7,627

 
45,957

 
81,130

 
32,826

 
9,628

 
1,561

 
0

 
178,729

80% or greater
0

 
0

 
0

 
0

 
0

 
222

 
0

 
222

Total commercial mortgage and agricultural property loans
$
24,491

 
$
168,637

 
$
197,241

 
$
183,402

 
$
263,879

 
$
364,541

 
$
0

 
$
1,202,191



 
June 30, 2020
 
December 31, 2019
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
(in thousands)
Debt Service Coverage Ratio:
 
 
 
 
 
 
 
Greater or equal to 1.2x
$
1,117,808

 
$
20,064

 
$
1,159,411

 
$
21,382

1.0 - 1.2x
62,866

 
0

 
58,948

 
0

Less than 1.0x
638

 
815

 
1,097

 
815

Total
$
1,181,312

 
$
20,879

 
$
1,219,456

 
$
22,197



See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process.


The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
 
June 30, 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
$
1,181,312

 
$
0

 
$
0

 
$
0

 
$
1,181,312

 
$
0

Agricultural property loans
20,879

 
0

 
0

 
0

 
20,879

 
0

Other collateralized loans
927

 
0

 
0

 
0

 
927

 
0

Total
$
1,203,118

 
$
0

 
$
0

 
$
0

 
$
1,203,118

 
$
0


(1)
As of June 30, 2020, there were no loans in this category accruing interest.
(2)
For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
 
December 31, 2019
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due(1)
 
Total Loans
 
Non-Accrual Status(2)
 
(in thousands)
Commercial mortgage loans
$
1,219,456

 
$
0

 
$
0

 
$
0

 
$
1,219,456

 
$
0

Agricultural property loans
22,197

 
0

 
0

 
0

 
22,197

 
0

Total
$
1,241,653

 
$
0

 
$
0

 
$
0

 
$
1,241,653

 
$
0



(1)
As of December 31, 2019, there were no loans in this category accruing interest.
(2)
For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

There were no loans on non-accrual status with a related allowance for credit losses which recognized interest income for both the three and six months ended June 30, 2020.

The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of June 30, 2020.

For both the three and six months ended June 30, 2020 and 2019, there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three and six months ended June 30, 2020, there were no commercial mortgage and other loans sold. For the three months ended June 30, 2019, there were no commercial mortgage loans sold, and for the six months ended June 30, 2019, there was $5 million 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:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Company’s investment in separate accounts
$
44,685

 
$
46,573

LPs/LLCs:
 
 
 
Equity method:
 
 
 
Private equity
203,599

 
189,095

Hedge funds
68,132

 
64,002

Real estate-related
45,039

 
42,432

Subtotal equity method
316,770

 
295,529

Fair value:
 
 
 
Private equity
58,562

 
62,639

Hedge funds
503

 
562

Real estate-related
11,813

 
11,707

Subtotal fair value
70,878

 
74,908

Total LPs/LLCs
387,648

 
370,437

Derivative instruments
35,672

 
12,548

Total other invested assets
$
468,005

 
$
429,558



Accrued Investment Income

The following table sets forth the composition of “Accrued investment income,” as of the date indicated:

 
June 30, 2020
 
(in thousands)
 
 
Fixed maturities
$
50,396

Equity securities
1

Commercial mortgage and other loans
3,563

Policy loans
35,388

Short-term investments and cash equivalents
91

Total accrued investment income
$
89,439



There were no significant write-downs on accrued investment income for both the three and six months ended June 30, 2020.

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities, available-for-sale
$
54,897

 
$
59,370

 
$
109,463

 
$
115,636

Fixed maturities, trading
395

 
326

 
793

 
634

Equity securities
103

 
221

 
205

 
442

Commercial mortgage and other loans
12,322

 
13,435

 
26,098

 
25,926

Policy loans
17,615

 
16,766

 
34,926

 
32,965

Other invested assets
2,165

 
18,060

 
(1,744
)
 
27,971

Short-term investments and cash equivalents
580

 
1,839

 
2,612

 
4,150

Gross investment income
88,077

 
110,017

 
172,353

 
207,724

Less: investment expenses
(4,615
)
 
(4,455
)
 
(9,310
)
 
(8,912
)
Net investment income
$
83,462

 
$
105,562

 
$
163,043

 
$
198,812



Realized Investment Gains (Losses), Net 

The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities(1)
$
(4,063
)
 
$
(2,489
)
 
$
(6,738
)
 
$
(6,673
)
Commercial mortgage and other loans
(44
)
 
99

 
(232
)
 
106

Other invested assets
5

 
0

 
(310
)
 
12

Derivatives
(76,353
)
 
(49,846
)
 
17,104

 
(94,323
)
Short-term investments and cash equivalents
224

 
(14
)
 
(160
)
 
(7
)
Realized investment gains (losses), net
$
(80,231
)
 
$
(52,250
)
 
$
9,664

 
$
(100,885
)

 
(1)
Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Fixed maturity securities, available-for-sale — with OTTI(1)
$ N/A

 
$
1,568

Fixed maturity securities, available-for-sale — all other(1)
N/A

 
397,136

Fixed maturity securities, available-for-sale with an allowance
(874
)
 
N/A

Fixed maturity securities, available-for-sale without an allowance
561,468

 
N/A

Derivatives designated as cash flow hedges(2)
93,867

 
26,126

Affiliated notes
6,029

 
4,715

Other investments
(4,391
)
 
(4,365
)
Net unrealized gains (losses) on investments
$
656,099

 
$
425,180


(1)
Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.”
(2)
For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of June 30, 2020 and December 31, 2019, the Company had no repurchase agreements.

The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
Remaining Contractual Maturities of the Agreements
 
 
 
Remaining Contractual Maturities of the Agreements
 
 
 
Overnight & Continuous
 
Up to 30 Days
 
Total
 
Overnight & Continuous
 
Up to 30 Days
 
Total
 
(in thousands)
U.S. public corporate securities
$
0

 
$
0

 
$
0

 
$
5,048

 
$
0

 
$
5,048

Foreign public corporate securities
2,700

 
0

 
2,700

 
2,481

 
0

 
2,481

Total cash collateral for loaned securities(1)
$
2,700

 
$
0

 
$
2,700

 
$
7,529

 
$
0

 
$
7,529



(1)
The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated.
v3.20.2
Derivative Instruments
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to:
• Interest rate contracts: futures, swaps, options, caps and floors
•Equity contracts: futures, options and total return swaps
•Foreign exchange contracts: futures, options, forwards and swaps
•Credit contracts: single and index reference credit default swaps

Other types of financial contracts that the Company accounts for as derivatives include:
•Embedded derivatives

For detailed information on these contracts and the related strategies, see Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

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.
 
 
June 30, 2020
 
December 31, 2019
Primary Underlying Risk/Instrument Type
 
 
 
Fair Value
 
 
 
Fair Value
 
Gross Notional
 
Assets
 
Liabilities
 
Gross Notional
 
Assets
 
Liabilities
 
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Currency/Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
3,557

 
$
233

 
$
0

 
$
3,615

 
$
0

 
$
(50
)
Foreign Currency Swaps
 
795,871

 
97,822

 
(403
)
 
773,933

 
36,551

 
(12,471
)
Total Derivatives Designated as Hedge Accounting Instruments
 
$
799,428

 
$
98,055

 
$
(403
)
 
$
777,548

 
$
36,551

 
$
(12,521
)
Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
568,050

 
$
71,613

 
$
(13,849
)
 
$
569,925

 
$
33,256

 
$
(4,490
)
Foreign Currency
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Forwards
 
38,421

 
40

 
(704
)
 
21,580

 
0

 
(518
)
Credit
 
 
 
 
 
 
 
 
 
 
 
 
Credit Default Swaps
 
2,313

 
29

 
0

 
0

 
0

 
0

Currency/Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Swaps
 
136,770

 
19,336

 
(14
)
 
151,792

 
7,563

 
(1,892
)
Equity
 
 
 
 
 
 
 
 
 
 
 
 
Equity Options
 
2,990,475

 
128,092

 
(59,381
)
 
2,680,048

 
174,398

 
(78,381
)
Total Derivatives Not Qualifying as Hedge Accounting Instruments
 
$
3,736,029

 
$
219,110

 
$
(73,948
)
 
$
3,423,345

 
$
215,217

 
$
(85,281
)
Total Derivatives(1)(2)
 
$
4,535,457

 
$
317,165

 
$
(74,351
)
 
$
4,200,893

 
$
251,768

 
$
(97,802
)

(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 $19,014 million and $8,530 million as of June 30, 2020 and December 31, 2019, respectively included in "Future policy benefits" and $1,045 million and $962 million as of June 30, 2020 and December 31, 2019, respectively included in "Policyholders' account balances". The fair value of the related reinsurance, included in "Reinsurance recoverables" or "Other liabilities" was an asset of $19,028 million and $8,540 million as of June 30, 2020 and December 31, 2019, respectively.
(2)
Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Unaudited Interim Consolidated Statements of Financial Position.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

 
June 30, 2020
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the
Consolidated Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
317,165

 
$
(281,406
)
 
$
35,759

 
$
(34,768
)
 
$
991

Securities purchased under agreements to resell
139,384

 
0

 
139,384

 
(139,384
)
 
0

Total Assets
$
456,549

 
$
(281,406
)
 
$
175,143

 
$
(174,152
)
 
$
991

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0


 
December 31, 2019
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the Consolidated
Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Securities purchased under agreements to resell
0

 
0

 
0

 
0

 
0

Total Assets
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0


(1)
Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

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 June 30, 2020
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Interest Rate
$
0

 
$
1

 
$
0

 
$
27

Currency/Interest Rate
387

 
2,745

 
(3,687
)
 
(30,356
)
Total cash flow hedges
387

 
2,746

 
(3,687
)
 
(30,329
)
Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
(796
)
 
0

 
0

 
0

Currency
(444
)
 
0

 
0

 
0

Currency/Interest Rate
(4,662
)
 
0

 
(10
)
 
0

Credit
(225
)
 
0

 
0

 
0

Equity
42,826

 
0

 
0

 
0

Embedded Derivatives
(113,439
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(76,740
)
 
0

 
(10
)
 
0

Total
$
(76,353
)
 
$
2,746

 
$
(3,697
)
 
$
(30,329
)
 
Six Months Ended June 30, 2020
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Interest Rate
$
(44
)
 
$
(2
)
 
$
0

 
$
327

Currency/Interest Rate
771

 
5,374

 
5,141

 
67,414

Total cash flow hedges
727

 
5,372

 
5,141

 
67,741

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
29,709

 
0

 
0

 
0

Currency
1,027

 
0

 
0

 
0

Currency/Interest Rate
14,671

 
0

 
48

 
0

Credit
(225
)
 
0

 
0

 
0

Equity
(32,118
)
 
0

 
0

 
0

Embedded Derivatives
3,313

 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
16,377

 
0

 
48

 
0

Total
$
17,104

 
$
5,372

 
$
5,189

 
$
67,741







 
Three Months Ended June 30, 2019
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Currency/Interest Rate
$
(88
)
 
$
2,211

 
$
1,482

 
$
13,316

Total cash flow hedges
(88
)
 
2,211

 
1,482

 
13,316

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
7,682

 
0

 
0

 
0

Currency
343

 
0

 
0

 
0

Currency/Interest Rate
1,673

 
0

 
4

 
0

Credit
0

 
0

 
0

 
0

Equity
12,666

 
0

 
0

 
0

Embedded Derivatives
(72,122
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(49,758
)
 
0

 
4

 
0

Total
$
(49,846
)
 
$
2,211

 
$
1,486

 
$
13,316



 
Six Months Ended June 30, 2019
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Currency/Interest Rate
$
(248
)
 
$
4,280

 
$
(34
)
 
$
6,662

Total cash flow hedges
(248
)
 
4,280

 
(34
)
 
6,662

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
15,297

 
0

 
0

 
0

Currency
323

 
0

 
0

 
0

Currency/Interest Rate
3,103

 
0

 
5

 
0

Credit
(1
)
 
0

 
0

 
0

Equity
41,529

 
0

 
0

 
0

Embedded Derivatives
(154,326
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(94,075
)
 
0

 
5

 
0

Total
$
(94,323
)
 
$
4,280

 
$
(29
)
 
$
6,662


(1)
Net change in AOCI.

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
 
(in thousands)    
Balance, December 31, 2019
$
26,126

Amount recorded in AOCI
 
Interest Rate
281

Currency/Interest Rate
78,700

Total amount recorded in AOCI
78,981

Amount reclassified from AOCI to income
 
Interest Rate
46

Currency/Interest Rate
(11,286
)
Total amount reclassified from AOCI to income
(11,240
)
Balance, June 30, 2020
$
93,867



The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2020 values, it is estimated that a pre-tax gain of $9 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2021.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments.

There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Credit Derivatives

The Company has no exposure from credit derivative positions where it has written credit protection as of June 30, 2020 and December 31, 2019.

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 $2 million and $0 million reported as of June 30, 2020 and December 31, 2019, respectively with a fair value of $0 million for both periods.

Credit Risk

The Company is exposed to losses in the event of non-performance by a counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.
v3.20.2
Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
 
As of June 30, 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

 
$
83,650

 
$
44,792

 
$
0

 
$
128,442

Obligations of U.S. states and their political subdivisions
0

 
512,875

 
0

 
0

 
512,875

Foreign government bonds
0

 
223,122

 
161

 
0

 
223,283

U.S. corporate public securities
0

 
2,394,770

 
4

 
0

 
2,394,774

U.S. corporate private securities
0

 
926,773

 
35,980

 
0

 
962,753

Foreign corporate public securities
0

 
242,461

 
9,197

 
0

 
251,658

Foreign corporate private securities
0

 
863,042

 
111,791

 
0

 
974,833

Asset-backed securities(2)
0

 
119,383

 
1,507

 
0

 
120,890

Commercial mortgage-backed securities
0

 
472,524

 
0

 
0

 
472,524

Residential mortgage-backed securities
0

 
64,290

 
0

 
0

 
64,290

Subtotal
0

 
5,902,890

 
203,432

 
0

 
6,106,322

Fixed maturities, trading
0

 
56,063

 
644

 
0

 
56,707

Equity securities
108

 
301

 
9,150

 
0

 
9,559

Short-term investments
99,980

 
1,987

 
0

 
0

 
101,967

Cash equivalents
364,949

 
180,643

 
0

 
0

 
545,592

Other invested assets(3)
0

 
317,165

 
0

 
(281,406
)
 
35,759

Reinsurance recoverables
0

 
0

 
19,028,138

 
0

 
19,028,138

Receivables from parent and affiliates
0

 
120,138

 
0

 
0

 
120,138

Subtotal excluding separate account assets
465,037

 
6,579,187

 
19,241,364

 
(281,406
)
 
26,004,182

Separate account assets(4)(5)
0

 
126,304,403

 
0

 
0

 
126,304,403

Total assets
$
465,037

 
$
132,883,590

 
$
19,241,364

 
$
(281,406
)
 
$
152,308,585

Future policy benefits(6)
$
0

 
$
0

 
$
19,014,066

 
$
0

 
$
19,014,066

Policyholders' account balances
0

 
0

 
1,045,483

 
0

 
1,045,483

Payables to parent and affiliates
0

 
74,351

 
0

 
(74,351
)
 
0

Total liabilities
$
0

 
$
74,351

 
$
20,059,549

 
$
(74,351
)
 
$
20,059,549


 
 
As of December 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Netting(1)
 
Total
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
0

 
$
47,797

 
$
38,671

 
$
0

 
$
86,468

Obligations of U.S. states and their political subdivisions
0

 
497,827

 
0

 
0

 
497,827

Foreign government bonds
0

 
222,663

 
163

 
0

 
222,826

U.S. corporate public securities
0

 
2,141,324

 
3

 
0

 
2,141,327

U.S. corporate private securities
0

 
893,943

 
35,829

 
0

 
929,772

Foreign corporate public securities
0

 
278,435

 
181

 
0

 
278,616

Foreign corporate private securities
0

 
944,408

 
14,070

 
0

 
958,478

Asset-backed securities(2)
0

 
117,935

 
2,001

 
0

 
119,936

Commercial mortgage-backed securities
0

 
382,916

 
0

 
0

 
382,916

Residential mortgage-backed securities
0

 
63,804

 
0

 
0

 
63,804

Subtotal
0

 
5,591,052

 
90,918

 
0

 
5,681,970

Fixed maturities, trading
0

 
59,296

 
668

 
0

 
59,964

Equity securities
131

 
465

 
9,898

 
0

 
10,494

Short-term investments
0

 
0

 
0

 
0

 
0

Cash equivalents
0

 
547,642

 
0

 
0

 
547,642

Other invested assets(3)
0

 
251,764

 
4

 
(239,220
)
 
12,548

Reinsurance recoverables
0

 
0

 
8,539,671

 
0

 
8,539,671

Receivables from parent and affiliates
0

 
119,431

 
3,135

 
0

 
122,566

Subtotal excluding separate account assets
131

 
6,569,650

 
8,644,294

 
(239,220
)
 
14,974,855

Separate account assets(4)(5)
0

 
133,625,669

 
0

 
0

 
133,625,669

Total assets
$
131

 
$
140,195,319

 
$
8,644,294

 
$
(239,220
)
 
$
148,600,524

Future policy benefits(6)
$
0

 
$
0

 
$
8,529,566

 
$
0

 
$
8,529,566

Policyholders' account balances
0

 
0

 
962,351

 
0

 
962,351

Payables to parent and affiliates
0

 
97,802

 
0

 
(97,802
)
 
0

Total liabilities
$
0

 
$
97,802

 
$
9,491,917

 
$
(97,802
)
 
$
9,491,917


(1)
“Netting” amounts represent cash collateral of $207.1 million and $141.4 million as of June 30, 2020 and December 31, 2019, 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 June 30, 2020 and December 31, 2019, the fair values of such investments were $71 million and $75 million, respectively.
(4)
Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.
(5)
Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At June 30, 2020 and December 31, 2019, the fair value of such investments was $4,599 million and $4,762 million, respectively.
(6)
As of June 30, 2020, the net embedded derivative liability position of $19,014 million includes $236 million of embedded derivatives in an asset position and $19,250 million of embedded derivatives in a liability position. As of December 31, 2019, the net embedded derivative liability position of $8,530 million includes $611 million of embedded derivatives in an asset position and $9,141 million of embedded derivatives in a liability position.
Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.
 
As of June 30, 2020
 
Fair Value  
  Valuation  
Techniques
 
Unobservable Inputs  
 
Minimum  
 
Maximum  
 
  Weighted  
Average
 
  Impact of 
Increase in 
Input on 
Fair Value(1)
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities(2)
$
134,414

Discounted cash flow
 
Discount rate
 
1.44
%
 
 
20.73
%
 
 
3.93
%
 
 
Decrease
Reinsurance recoverables
$
19,028,138

Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits(4)
$
19,014,066

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
20
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.17
%
 
 
1.69
%
 
 
 
 
 
Decrease
 
 
 
 
Utilization rate(8)
 
39
%
 
 
96
%
 
 
 
 
 
Increase
 
 
 
 
Withdrawal rate 
 
See table footnote (9) below.
 
 
 
 
Mortality rate(10)
 
0
%
 
 
15
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
18
%
 
 
29
%
 
 
 
 
 
Increase
Policyholders' account balances(5)
$
1,045,483

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
6
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.17
%
 
 
1.69
%
 
 
 
 
 
Decrease
 
 
 
 
Mortality rate(10)
 
0
%
 
 
24
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
18
%
 
 
35
%
 
 
 
 
 
Increase
 
As of December 31, 2019
 
Fair Value  
   Valuation  
Techniques
 
  Unobservable
Inputs  
 
Minimum  
 
Maximum  
 
  Weighted  
Average
 
  Impact of 
Increase in 
Input on 
Fair Value(1)
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities(2)
$
27,816

Discounted cash flow
 
Discount rate
 
5.24
%
 
 
17.47
%
 
 
8.25
%
 
 
Decrease
 
 
Market comparables
 
EBITDA multiples(3)
 
5.7X
 
 
5.7X
 
 
5.7X
 
 
Increase
Reinsurance recoverables
$
8,539,671

Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits(4)
$
8,529,566

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
18
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.10
%
 
 
1.23
%
 
 
 
 
 
Decrease
 
 
 
 
Utilization rate(8)
 
43
%
 
 
97
%
 
 
 
 
 
Increase
 
 
 
 
Withdrawal rate
 
See table footnote (9) below.
 
 
 
 
Mortality rate(10)
 
0
%
 
 
15
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
13
%
 
 
23
%
 
 
 
 
 
Increase
Policyholders' account balances(5)
962,351

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
6
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.10
%
 
 
1.23
%
 
 
 
 
 
Decrease
 
 
 
 
Mortality rate(10)
 
0
%
 
 
24
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
10
%
 
 
23
%
 
 
 
 
 
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 and available-for-sale.
(3)
Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.
(4)
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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(5)
Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(6)
Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.
(7)
The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.
(8)
The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.
(9)
The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2020 and December 31, 2019, the minimum withdrawal rate assumption is 76% and 78% respectively. As of June 30, 2020 and December 31, 2019 the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.
(10)
The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value.

Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

 
Three Months Ended June 30, 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
$
42,013

$
0

$
2,779

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
152

9

0

0

0

0

0

0

0

161

9

Corporate securities(4)
130,682

16,438

1,471

0

0

(3,377
)
0

11,758

0

156,972

16,378

Structured securities(5)
7,438

9

0

0

0

(304
)
0

0

(5,636
)
1,507

9

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
538

106

0

0

0

0

0

0

0

644

106

Equity securities
9,196

(46
)
0

0

0

0

0

0

0

9,150

(46
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
20,214,824

(1,457,242
)
270,556

0

0

0

0

0

0

19,028,138

(1,317,838
)
Receivables from parent and affiliates
1,575

4

0

0

0

(1,579
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(20,196,457
)
1,450,990

0

0

(268,599
)
0

0

0

0

(19,014,066
)
1,319,848

Policyholders' account balances(6)
(900,261
)
(77,695
)
0

0

(67,527
)
0

0

0

0

(1,045,483
)
(82,850
)

 
Three Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(2,361
)
$
0

$
18,807

$
10

 
$
(2,361
)
$
0

$
18,757

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

106

0

0

 
0

106

0

Equity securities
0

(46
)
0

0

 
0

(46
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
(1,457,242
)
0

0

0

 
(1,317,838
)
0

0

Receivables from parent and affiliates
0

0

0

4

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
1,450,990

0

0

0

 
1,319,848

0

0

Policyholders' account balances
(77,695
)
0

0

0

 
(82,850
)
0

0




 
Six Months Ended June 30, 2020
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
38,671

$
0

$
6,121

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
163

(2
)
0

0

0

0

0

0

0

161

(2
)
Corporate securities(4)
50,083

(1,532
)
8,664

(3,680
)
0

(6,335
)
0

109,772

0

156,972

(807
)
Structured securities(5)
2,001

(475
)
6,145

0

0

(528
)
0

0

(5,636
)
1,507

(473
)
Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
668

(24
)
0

0

0

0

0

0

0

644

(24
)
Equity securities
9,898

(748
)
0

0

0

0

0

0

0

9,150

(748
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
8,539,671

9,950,960

537,507

0

0

0

0

0

0

19,028,138

10,102,377

Receivables from parent and affiliates
3,135

23

0

0

0

(3,158
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(8,529,566
)
(9,950,913
)
0

0

(533,587
)
0

0

0

0

(19,014,066
)
(10,102,329
)
Policyholders' account balances(6)
(962,351
)
39,960

0

0

(123,092
)
0

0

0

0

(1,045,483
)
42,260


 
Six Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(4,140
)
$
0

$
2,031

$
100

 
$
(3,695
)
$
0

$
2,413

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(24
)
0

0

 
0

(24
)
0

Equity securities
0

(748
)
0

0

 
0

(748
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
9,950,960

0

0

0

 
10,102,377

0

0

Receivables from parent and affiliates
0

0

0

23

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
(9,950,913
)
0

0

0

 
(10,102,329
)
0

0

Policyholders' account balances
39,960

0

0

0

 
42,260

0

0


 
Three Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
32,188

$
0

$
2,204

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
164

1

0

0

0

0

0

0

0

165

0

Corporate securities(4)
54,960

234

791

(25
)
0

(2,584
)
(1
)
639

0

54,014

0

Structured securities(5)
79,804

42

0

(1
)
0

(177
)
0

1,700

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,991

1,114

0

0

0

0

0

0

0

17,105

1,114

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
6,468,704

1,773,188

244,013

0

0

0

0

0

0

8,485,905

1,833,209

Receivables from parent and affiliates
7,792

82

0

0

0

(1,579
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(6,459,377
)
(1,775,097
)
0

0

(242,067
)
0

0

0

0

(8,476,541
)
(1,836,960
)
Policyholders' account balances(6)
(53,136
)
(691,927
)
0

0

(41,906
)
0

0

0

0

(786,969
)
(691,376
)

 
Three Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(665
)
$
0

$
678

$
264

 
$
0

$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,114

0

0

 
0

1,114

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
1,773,188

0

0

0

 
1,833,209

0

Receivables from parent and affiliates
0

0

0

82

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(1,775,097
)
0

0

0

 
(1,836,960
)
0

Policyholders' account balances
(691,927
)
0

0

0

 
(691,376
)
0


 
Six Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
29,816

$
0

$
4,576

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
0

6

0

0

0

0

0

159

0

165

0

Corporate securities(4)
56,588

(3,178
)
2,122

(53
)
0

(9,681
)
0

8,216

0

54,014

(3,163
)
Structured securities(5)
6,556

1,310

0

(2
)
0

(4,156
)
0

77,660

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,997

1,108

0

0

0

0

0

0

0

17,105

1,108

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
5,600,008

2,406,506

479,391

0

0

0

0

0

0

8,485,905

2,504,883

Receivables from parent and affiliates
9,261

193

0

0

0

(3,159
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(5,588,840
)
(2,412,199
)
0

0

(475,502
)
0

0

0

0

(8,476,541
)
(2,510,576
)
Policyholders' account balances(6)
(13,015
)
(725,541
)
0

0

(48,413
)
0

0

0

0

(786,969
)
(724,989
)

 
Six Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(3,067
)
$
0

$
842

$
363

 
$
(3,163
)
$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,108

0

0

 
0

1,108

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
2,406,506

0

0

0

 
2,504,883

0

Receivables from parent and affiliates
0

0

0

193

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(2,412,199
)
0

0

0

 
(2,510,576
)
0

Policyholders' account balances
(725,541
)
0

0

0

 
(724,989
)
0


(1)
Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.
(2)
Other includes reclassifications of certain assets and liabilities between reporting categories.
(3)
Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
(4)
Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.
(5)
Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.
(6)
Issuances and settlements for Policyholders' account balances are presented net in the rollforward.
(7)
Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.
 
Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
 
June 30, 2020
 
Fair Value
 
Carrying
Amount(1)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
 
(in thousands)
Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgage and other loans
$
0

 
$
0

 
$
1,258,891

 
$
1,258,891

 
$
1,198,559

Policy loans
0

 
0

 
1,320,636

 
1,320,636

 
1,320,636

Cash and cash equivalents
28,805

 
139,384

 
0

 
168,189

 
168,189

Accrued investment income
0

 
89,439

 
0

 
89,439

 
89,439

Reinsurance recoverables
0

 
0

 
222,842

 
222,842

 
214,466

Receivables from parent and affiliates
0

 
177,773

 
0

 
177,773

 
177,773

Other assets
0

 
26,064

 
0

 
26,064

 
26,064

Total assets
$
28,805

 
$
432,660

 
$
2,802,369

 
$
3,263,834

 
$
3,195,126

Liabilities:
 
 
 
 
 
 
 
 
 
Policyholders’ account balances - investment contracts
$
0

 
$
1,328,711

 
$
283,303

 
$
1,612,014

 
$
1,603,637

Cash collateral for loaned securities
0

 
2,700

 
0

 
2,700

 
2,700

Short-term debt to affiliates
0

 
0

 
0

 
0

 
0

Payables to parent and affiliates
0

 
88,384

 
0

 
88,384

 
88,384

Other liabilities
0

 
355,439

 
0

 
355,439

 
355,439

Total liabilities
$
0

 
$
1,775,234

 
$
283,303

 
$
2,058,537

 
$
2,050,160

 
December 31, 2019
 
Fair Value
 
Carrying
Amount(1)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
 
(in thousands)
Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgage and other loans
$
0

 
$
0

 
$
1,288,625

 
$
1,288,625

 
$
1,239,885

Policy loans
0

 
0

 
1,314,064

 
1,314,064

 
1,314,064

Cash and cash equivalents
15,557

 
0

 
0

 
15,557

 
15,557

Accrued investment income
0

 
89,448

 
0

 
89,448

 
89,448

Reinsurance recoverables
0

 
0

 
212,368

 
212,368

 
211,813

Receivables from parent and affiliates
0

 
149,415

 
0

 
149,415

 
149,415

Other assets
0

 
22,505

 
0

 
22,505

 
22,505

Total assets
$
15,557

 
$
261,368

 
$
2,815,057

 
$
3,091,982

 
$
3,042,687

Liabilities:
 
 
 
 
 
 
 
 
 
Policyholders’ account balances - investment contracts
$
0

 
$
1,264,128

 
$
277,782

 
$
1,541,910

 
$
1,541,355

Cash collateral for loaned securities
0

 
7,529

 
0

 
7,529

 
7,529

Short-term debt to affiliates
0

 
2,845

 
0

 
2,845

 
2,845

Payables to parent and affiliates
0

 
216,842

 
0

 
216,842

 
216,842

Other liabilities
0

 
387,109

 
0

 
387,109

 
387,109

Total liabilities
$
0

 
$
1,878,453

 
$
277,782

 
$
2,156,235

 
$
2,155,680


(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
v3.20.2
Income Taxes
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES

The Company determines its interim tax provision using the annual effective tax rate methodology as required by ASC 740-270. However, the Company has utilized a discrete effective tax rate method to calculate taxes for the six months ended June 30, 2020. The Company has determined that the use of this discrete method is more appropriate than the full year effective tax rate method. The variability inherent in the forecasted pretax income when combined with the forecasted permanent book-tax differences produces a result that a small change in pretax ordinary income will have a very significant impact on the forecasted effective tax rate. As a result, the Company has determined that the forecasted effective tax rate is unreliable.

The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $(56.5) million, or (108.84)% of income (loss) from operations before income taxes and equity in earnings of operating joint venture, in the first six months of 2020, compared to $(51.5) million, or (60.03)%, in the first six months of 2019. The Company's current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits.


On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. One provision of the CARES Act amends the Tax Cuts and Jobs Act (“TCJA”) and allows companies with net operating losses (“NOLs”) originating in 2018, 2019 or 2020 to carry back those losses for five years. The Company has incorporated into the year-to-date effective tax rate an income tax benefit of $30 million that would result from carrying the estimated 2020 NOL back to tax years that have a 35% tax rate. This amount is an estimate and will change if the amount of, and sources of, 2020 net taxable income are different from forecast.
v3.20.2
Reinsurance
 6 Months Ended
Jun. 30, 2020
Reinsurance Disclosures [Abstract]  
Reinsurance REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re") and Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance policy charges and fee income ceded for universal life and variable annuity products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives.

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2020 and December 31, 2019 were as follows:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Reinsurance recoverables(1)
$
52,917,099

 
$
40,710,159

Policy loans
(151,049
)
 
(142,262
)
Deferred policy acquisition costs
(6,779,267
)
 
(6,989,618
)
Deferred sales inducements
(471,999
)
 
(515,968
)
Other assets(2)
257,709

 
258,427

Policyholders’ account balances
4,873,043

 
4,934,544

Future policy benefits(3)
4,697,373

 
4,209,817

Other liabilities(4)
995,122

 
884,641



(1)
Includes $416.4 million and $156.7 million of unaffiliated activity as of June 30, 2020 and December 31, 2019, respectively.
(2)
Includes $0.0 million of unaffiliated activity at both June 30, 2020 and December 31, 2019.
(3)
Includes $0.1 million of unaffiliated activity at both June 30, 2020 and December 31, 2019.
(4)
Includes $46.8 million and $43.1 million of unaffiliated activity as of June 30, 2020 and December 31, 2019, respectively.

Reinsurance recoverables by counterparty are broken out below:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
PAR U
$
12,952,267

 
$
12,380,683

PALAC
21,096,307

 
11,635,405

PURC
5,115,192

 
4,692,769

PARCC
2,557,822

 
2,627,595

GUL Re
2,449,345

 
2,292,638

PAR Term
1,872,568

 
1,825,594

Prudential Insurance
2,848,823

 
1,764,512

Prudential of Taiwan
1,548,740

 
1,499,685

Term Re
1,646,121

 
1,506,366

DART
412,715

 
327,235

Unaffiliated
417,199

 
157,677

Total reinsurance recoverables
$
52,917,099

 
$
40,710,159



Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
484,577

 
$
476,986

 
$
960,063

 
$
939,257

Assumed(1)
47

 
52

 
95

 
106

Ceded(2)
(462,080
)
 
(464,621
)
 
(922,743
)
 
(912,952
)
Net premiums
22,544

 
12,417

 
37,415

 
26,411

Policy charges and fee income:
 
 
 
 
 
 
 
Direct
816,817

 
1,106,725

 
1,718,259

 
1,959,920

Assumed
131,579

 
128,748

 
264,083

 
255,707

Ceded(3)
(787,311
)
 
(1,086,802
)
 
(1,681,338
)
 
(1,927,767
)
Net policy charges and fee income
161,085

 
148,671

 
301,004

 
287,860

Net investment income:
 
 
 
 
 
 
 
Direct
84,946

 
106,949

 
166,038

 
201,507

Assumed
394

 
407

 
794

 
803

Ceded
(1,878
)
 
(1,794
)
 
(3,789
)
 
(3,498
)
Net investment income
83,462

 
105,562

 
163,043

 
198,812

Asset administration fees:
 
 
 
 
 
 
 
Direct
84,330

 
87,951

 
173,659

 
171,819

Assumed
0

 
0

 
0

 
0

Ceded
(80,028
)
 
(83,990
)
 
(164,969
)
 
(164,201
)
Net asset administration fees
4,302

 
3,961

 
8,690

 
7,618

Other income:
 
 
 
 
 
 
 
Direct
12,682

 
20,030

 
21,288

 
39,828

Assumed(4)
408

 
(1,271
)
 
(29
)
 
(1,471
)
Ceded
640

 
(39
)
 
125

 
(62
)
Amortization of reinsurance income
1,162

 
(3,722
)
 
2,344

 
(2,340
)
Net other income
14,892

 
14,998

 
23,728

 
35,955

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
1,408,425

 
(1,783,941
)
 
(9,900,749
)
 
(2,419,452
)
Assumed
0

 
0

 
0

 
0

Ceded(5)
(1,488,656
)
 
1,731,691

 
9,910,413

 
2,318,567

Realized investment gains (losses), net
(80,231
)
 
(52,250
)
 
9,664

 
(100,885
)
Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
744,620

 
1,150,985

 
1,811,718

 
1,797,296

Assumed(6)
208,315

 
282,961

 
569,770

 
494,711

Ceded(7)
(866,682
)
 
(1,387,655
)
 
(2,209,312
)
 
(2,206,238
)
Net policyholders’ benefits (including change in reserves)
86,253

 
46,291

 
172,176

 
85,769

Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
92,457

 
118,420

 
271,752

 
213,111

Assumed
34,020

 
34,512

 
68,256

 
65,169

Ceded
(60,060
)
 
(102,222
)
 
(218,545
)
 
(183,373
)
Net interest credited to policyholders’ account balances
66,417

 
50,710

 
121,463

 
94,907

Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization
(139,336
)
 
(573,978
)
 
(882,247
)
 
(917,993
)

(1)
Includes $0.1 million and $0 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.1 million for both the six months ended June 30, 2020 and 2019, respectively.
(2)
Includes $(2.6) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2020, and 2019, respectively and $(5.1) million and $(0.2) million for the six months ended June 30, 2020 and 2019, respectively.
(3)
Includes $(11) million and $(7) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $(21) million and $(12) million for the six months ended June 30, 2020 and 2019, respectively.
(4)
Includes $(0.4) million and $(1.0) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.0 million and $(2.0) million for the six months ended June 30, 2020 and 2019, respectively.
(5)
Includes $(29) million and $42 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $227 million and $56 million for the six months ended June 30, 2020 and 2019, respectively.
(6)
Includes $0.5 million and $0 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.6 million and $(0.2) million for the six months ended June 30, 2020and 2019, respectively.
(7)
Includes $(19) million and $(2) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $(24) million and $(4) million for the six months ended June 30, 2020 and 2019, respectively.

The gross and net amounts of life insurance face amount in force as of June 30, 2020 and 2019 were as follows:
 
2020
 
2019
 
(in thousands)
Direct gross life insurance face amount in force
$
1,020,870,402

 
$
966,542,451

Assumed gross life insurance face amount in force
39,361,931

 
40,382,452

Reinsurance ceded
(976,357,109
)
 
(925,430,727
)
Net life insurance face amount in force
$
83,875,224

 
$
81,494,176



Information regarding significant affiliated reinsurance agreements is described below.

PAR U

Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011.

Effective July 1, 2012, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principle-based reserving.

On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.

PALAC

Effective April 1, 2016, the Company entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to PALAC, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement covers new and in force business and excludes business reinsured externally.

PURC

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

PARCC

Prior to July 1, 2019, the Company reinsured 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 90% to 100% of the policy risk amount reinsured, which resulted in an initial transfer of $476 million in premiums and $409 million in expenses ceded with the difference being deferred and subsequently amortized through income.

GUL Re

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017 through December 31, 2019, excluding those policies that are subject to principle-based reserving.

Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014.

PAR Term

Prior to July 1, 2019, the Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 95% to 100% of the policy risk amount reinsured, which resulted in an initial transfer of $150 million in premiums and $115 million in expenses ceded with the difference being deferred and subsequently amortized through income.

Prudential of Taiwan

On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwanese branch, including its Taiwanese insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life.

The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars.

On August 11, 2020, Prudential International Insurance Holdings, Ltd. (“PIIH”), a subsidiary of Prudential Financial, entered into a Share Purchase Agreement with Taishin Financial Holding Co., Ltd. (the “Buyer”) pursuant to which PIIH has agreed to sell to the Buyer all of the issued and outstanding capital stock of Prudential of Taiwan. Upon closing of the sale, which is subject to regulatory approval and the satisfaction of customary closing conditions, the Buyer will provide Pruco Life a backstop indemnification and Pruco Life will provide a guarantee to stand ready to perform in the event of default by both Prudential of Taiwan and the Buyer.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re.  

Prudential Insurance

The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. As of January 1, 2020, the remaining portions of new business (specifically Term policies) ceased being reinsured by the Company to Prudential Insurance. Effective July 1, 2017, the Company reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk. Effective July 1, 2019, this agreement has been recaptured for certain term life insurance policies which are now reinsured to PARCC and PAR Term as noted above.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control.

The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to Prudential Insurance. This reinsurance agreement covers new and in force business.

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018 through December 31, 2019, excluding those policies that are subject to principle-based reserving.

Information regarding significant third-party reinsurance arrangements is described below.

Union Hamilton

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiary, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier® Retirement Variable Annuity, to Union Hamilton. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of June 30, 2020, $2.9 billion of HDI v.3.0 account values are reinsured to Union Hamilton.
v3.20.2
Equity
 6 Months Ended
Jun. 30, 2020
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 Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019, are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2019
$
(7,917
)
 
$
289,359

 
$
281,442

Change in OCI before reclassifications
(3,888
)
 
195,529

 
191,641

Amounts reclassified from AOCI
0

 
(4,502
)
 
(4,502
)
Income tax benefit (expense)
12

 
(40,116
)
 
(40,104
)
Balance, June 30, 2020
$
(11,793
)
 
$
440,270

 
$
428,477

 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2018
$
(17,448
)
 
$
(10,848
)
 
$
(28,296
)
Change in OCI before reclassifications
7,007

 
332,927

 
339,934

Amounts reclassified from AOCI
0

 
10,672

 
10,672

Income tax benefit (expense)
2

 
(72,147
)
 
(72,145
)
Balance, June 30, 2019
$
(10,439
)
 
$
260,604

 
$
250,165


(1)
Includes cash flow hedges of $94 million and $26 million as of June 30, 2020 and December 31, 2019, respectively, and $29 million and $(18) million as of June 30, 2019 and December 31, 2018, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
 
 
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges - Currency/Interest rate(3)
$
(553
)
 
$
(4,393
)
 
$
11,240

 
$
(3,999
)
Net unrealized investment gains (losses) on available-for-sale securities
(4,063
)
 
(2,489
)
 
(6,738
)
 
(6,673
)
Total net unrealized investment gains (losses)(4)
(4,616
)
 
(6,882
)
 
4,502

 
(10,672
)
Total reclassifications for the period
$
(4,616
)
 
$
(6,882
)
 
$
4,502

 
$
(10,672
)

(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)
See Note 4 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to 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 Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
DAC and Other Costs(2)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(1)
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Net investment gains (losses) on investments arising during the period
53

 
0

 
0

 
(11
)
 
42

Reclassification adjustment for (gains) losses included in net income
0

 
0

 
0

 
0

 
0

Increase (decrease) due to non-credit related losses recognized in AOCI during the period
(927
)
 
0

 
0

 
195

 
(732
)
Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
133

 
0

 
(28
)
 
105

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
59

 
(12
)
 
47

Balance, June 30, 2020
$
(874
)
 
$
133

 
$
59

 
$
144

 
$
(538
)

(1)
Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.
(2)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(3)
"Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(1)
 
DAC and Other Costs(3)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(2)
$
425,180

 
$
423,227

 
$
(482,134
)
 
$
(76,914
)
 
$
289,359

Net investment gains (losses) on investments arising during the period
235,368

 
0

 
0

 
(49,428
)
 
185,940

Reclassification adjustment for (gains) losses included in net income
(4,502
)
 
0

 
0

 
945

 
(3,557
)
Reclassification due to allowance for credit losses recorded during the period
927

 
0

 
0

 
(195
)
 
732

Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
475,035

 
0

 
(99,758
)
 
375,277

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
(515,119
)
 
108,176

 
(406,943
)
Balance, June 30, 2020
$
656,973

 
$
898,262

 
$
(997,253
)
 
$
(117,174
)
 
$
440,808


(1)
Includes cash flow hedges. See Note 4 for information on cash flow hedges.
(2)
Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized.
(3)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(4)
"Other liabilities" primarily includes reinsurance payables.
v3.20.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2020
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 $0.4 million and $0.6 million for the three months ended June 30, 2020, and 2019, respectively, and $0.5 million and $0.7 million for the six months ended June 30, 2020 and 2019, respectively. The expense charged to the Company for the deferred compensation program was $0.1 million and $1.2 million for the three months ended June 30, 2020 and 2019, respectively, and $3.0 million and $3.9 million for the six months ended June 30, 2020 and 2019, 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 $4 million and $5 million for the three months ended June 30, 2020 and 2019, respectively, and $9 million and $10 million for the six months ended June 30, 2020 and 2019, respectively.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $3 million and $6 million for the three months ended June 30, 2020 and 2019, respectively, and $9 million and $12 million for the six months ended June 30, 2020 and 2019, respectively.

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $2 million for both the three months ended June 30, 2020 and 2019, and $4 million and $5 million for the six months ended June 30, 2020 and 2019, respectively.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $129 million and $197 million for the three months ended June 30, 2020 and 2019, respectively, and $297 million and $376 million for the six months ended June 30, 2020 and 2019, 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 $6 million and $20 million for the three months ended June 30, 2020 and 2019, respectively, and $25 million and $37 million for the six months ended June 30, 2020 and 2019, respectively.

Corporate-Owned Life Insurance

The Company has sold five Corporate-Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $4,207 million at June 30, 2020 and $4,339 million at December 31, 2019. Fees related to these COLI policies were $11 million for both the three months ended June 30, 2020 and 2019, and $25 million and $24 million for the six months ended June 30, 2020 and 2019, respectively. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per individual policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $4 million and $3 million for the three months ended June 30, 2020 and 2019, respectively, and $7 million for both the six months ended June 30, 2020 and 2019. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $97 million and $96 million as of June 30, 2020 and December 31, 2019, respectively. "Net investment income" related to these ventures includes a gain of $8 million and $2 million for the three months ended June 30, 2020 and 2019, respectively, and a loss of $2 million and a gain of $7 million for the six months ended June 30, 2020 and 2019, respectively.
Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $81 million and $84 million for the three months ended June 30, 2020 and 2019, respectively, and $166 million and $165 million for the six months ended June 30, 2020 and 2019, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $3 million for both the three months ended June 30, 2020 and 2019, and $5 million for both the six months ended June 30, 2020 and 2019. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).
Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at June 30, 2020 and December 31, 2019 were as follows:
 
Maturity Dates
 
Interest Rates
 
June 30, 2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
(in thousands)
U.S. dollar fixed rate notes
2020
-
2027
 
0.00%
-
14.85
%
 
$
120,139

 
$
122,566

Total notes receivable - affiliated(1)
 
 
 
 
 
 
 
 
$
120,139

 
$
122,566


(1)
All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

Accrued interest receivable related to these loans was $1 million at both June 30, 2020 and December 31, 2019 and is included in “Other assets”. Revenues related to these assets were $1 million for both the three months ended June 30, 2020 and 2019, and $2 million for both the six months ended June 30, 2020 and 2019 and are included in “Other income”.
Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the six months ended June 30, 2020 and for the year ended December 31, 2019.
Affiliate
 
Date
 
Transaction  
 
Security Type  
 
Fair Value  
 
Book Value  
 
APIC, Net of Tax Increase/(Decrease)
 
Realized
Investment
Gain (Loss)
 
 
 
 
 
 
 
 
(in thousands)
Prudential Insurance
 
February 2019
 
Sale
 
Commercial Mortgages
 
$
4,995

 
$
5,000

 
$
(4
)
 
$
0

PALAC
 
April 2019
 
Sale
 
Equity Securities
 
$
14,525

 
$
13,466

 
$
0

 
$
1,059

Term Re
 
September 2019
 
Sale
 
Fixed Maturities
 
$
9,178

 
$
8,135

 
$
0

 
$
1,043

PURC
 
September 2019
 
Sale
 
Fixed Maturities
 
$
8,399

 
$
7,455

 
$
0

 
$
944

PAR U
 
September 2019
 
Sale
 
Fixed Maturities
 
$
31,466

 
$
28,146

 
$
0

 
$
3,320

Prudential Insurance
 
September 2019
 
Sale
 
Fixed Maturities
 
$
10,702

 
$
9,254

 
$
1,144

 
$
0

PURC
 
December 2019
 
Sale
 
Equity Securities
 
$
7,767

 
$
6,002

 
$
0

 
$
1,765

PAR Term
 
December 2019
 
Sale
 
Fixed Maturities
 
$
27,330

 
$
24,739

 
$
0

 
$
2,591

PURC
 
December 2019
 
Sale
 
Fixed Maturities
 
$
93,830

 
$
75,586

 
$
0

 
$
18,244

PURC
 
December 2019
 
Sale
 
Fixed Maturities
 
$
78,884

 
$
68,645

 
$
0

 
$
10,239

Prudential Insurance
 
December 2019
 
Purchase
 
Other Invested Assets
 
$
9,000

 
$
9,000

 
$
0

 
$
0

Prudential Insurance
 
March 2020
 
Purchase
 
Other Invested Assets
 
$
1,390

 
$
1,390

 
$
0

 
$
0

Prudential Insurance
 
April 2020
 
Purchase
 
Fixed Maturities
 
$
61,953

 
$
59,659

 
$
(1,812
)
 
$
0

Prudential Insurance
 
April 2020
 
Purchase
 
Fixed Maturities
 
$
3,485

 
$
3,320

 
$
(130
)
 
$
0


 
Debt Agreements

The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. As of June 30, 2020 and December 31, 2019, there was no debt outstanding.

The total interest expense to the Company related to loans payable to affiliates was $0.1 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $0.6 million and $0.8 million for the six months ended June 30, 2020 and 2019, respectively.

Contributed Capital and Dividends

In June 2020, the Company received a capital contribution in the amount of $325 million from Prudential Insurance. In December of 2019, the Company received a capital contribution in the amount of $6 million from Prudential Insurance.

Through June 2020, the Company did not pay any dividends to Prudential Insurance. In December 2019, the Company paid a dividend in the amount of $250 million to Prudential Insurance.

Reinsurance with Affiliates

As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates.
v3.20.2
Commitments and Contingent Liabilities
 6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial mortgage loans. As of June 30, 2020 and December 31, 2019, the outstanding balances on these commitments were $37 million and $26 million, respectively. The above amount includes unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses of $0.0 million as of June 30, 2020, which is a change of $0.0 million for the three and six months ended June 30, 2020. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of June 30, 2020 and December 31, 2019, $357 million and $261 million, respectively, of these commitments were outstanding. The above amount includes unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for both the three and six months ended June 30, 2020.

Guarantees

In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

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. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of June 30, 2020, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 14 to the Company's Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, and should be read in conjunction with the complete descriptions provided in the Form 10-K.

Behfarin v. Pruco Life

In June 2020, the court issued an order: (i) granting plaintiffs’ motion for certification of the settlement class; (ii) approving the proposed nationwide class settlement agreement; (iii) approving the class notice; (iv) awarding attorneys’ fees and costs to plaintiffs and a reduced incentive award to Behfarin; and (v) dismissing the action with prejudice, but maintaining jurisdiction over the settlement.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.
v3.20.2
Revision to Prior Year Information
 6 Months Ended
Jun. 30, 2020
Prior Period Adjustment [Abstract]  
Revision to Prior Year Information REVISION TO PRIOR YEAR INFORMATION

Revision to 2019 Consolidated Financial Statements

The Company identified an error in the presentation of certain cash flow activity related to policyholders' account balances that impacted several line items within previously issued Consolidated Statements of Cash Flows. While these items affect the cash flows from operating and financing activities, they had no impact on the net increase (decrease) in cash and cash equivalents for the previously reported periods. Prior period amounts have been revised in the financial statements to correct this error as shown below.

Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the consolidated financial statements for the six months ended June 30, 2019, which are presented herein, have been revised. Similarly, impacted prior periods presented within the Quarterly Report on Form 10-Q for the period ended September 30, 2020 and Annual Report on Form 10-K for the year ended December 31, 2020 will be revised.

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Cash Flows

Six Months Ended June 30, 2019

As Previously Reported

Revision

As Revised

(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:








Policy charges and fee income
$
(135,809
)

$
102,924


$
(32,885
)
Cash flows from (used in) operating activities
(41,058
)

102,924


61,866

CASH FLOWS FROM FINANCING ACTIVITIES:





Policyholders' account withdrawals
(1,712,728
)

(65,099
)

(1,777,827
)
Other, net
0


(37,825
)

(37,825
)
Cash flows from (used in) financing activities
446,736


(102,924
)

343,812
v3.20.2
Significant Accounting Policies and Pronouncements (Policies)
 6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products; valuation of investments including derivatives, measurement of allowance for credit losses, and recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.
Reclassifications
Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.
Adoption of New Accounting Pronouncements

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of June 30, 2020, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Adoption of ASU 2016-13

The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis.

This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment.

The impacts of this ASU on the Company’s Consolidated Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

(1) Cumulative Effect Adjustment Upon Adoption

Adoption of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.8 million, primarily related to commercial mortgage and other loans. The impact of adoption is not material to the following financial statement line items: deferred policy acquisition costs; reinsurance recoverables; income taxes receivable; future policy benefits; policyholders' account balances; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings.

(2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations

The allowance for credit losses is presented parenthetically on relevant line items in the Consolidated Statements of Financial Position. In the Consolidated Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial.

(3) Changes to Accounting Policies

This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13.

Fixed maturities, available-for-sale

Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not.

AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer.

When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value.

For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.”

Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment.

Commercial mortgage and other loans

Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance.

The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans.

For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model.

Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below.

Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s operations do not generate enough income to cover the loan’s current debt payments. A debt-service-coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt-service-coverage ratios related to the Company’s commercial mortgage and agricultural mortgage loan portfolios. Generally, every loan is re-rated at least annually.

Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations.

When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities”, and the change in the allowance is reported in “Realized investment gains (losses), net.”

When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through "Realized investment gains (losses), net." The carrying amount of the loan is not adjusted for subsequent recoveries in value.

The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.”

Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments.

Reinsurance

Reinsurance recoverables are reported on the Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.”

Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner.

Other ASUs adopted during the six months ended June 30, 2020.
Standard
 
Description
 
Effective date and method of adoption
 
Effect on the financial statements or other significant matters
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation
of the Effects of Reference Rate Reform on Financial Reporting
 
This ASU provides optional relief for certain contracts impacted by reference rate reform. The standard permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU also temporarily (until December 31, 2022) allows hedge relationships to continue without de-designation upon changes due to reference rate reform.
 
March 12, 2020 to December 31, 2022 using the prospective method.

 
This ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
The Company made the election under ASU 2020-04 for all applicable contracts as they converted from the current reference rate to the new reference rate.
Future Adoption Of New Accounting Pronouncements
ASU issued but not yet adopted as of June 30, 2020 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In 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, the FASB voted in June 2020 to tentatively defer for an additional one year the current 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. Subsequently in July 2020, the FASB issued a proposed ASU with a comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

ASU 2018-12 Amended Topic
 
Description
 
Method of adoption
 
Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products
 
Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations.
 
An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in Accumulated Other Comprehensive Income (loss) ("AOCI") or (2) a full retrospective transition method.
 
The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products
 
Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through OCI.
 
As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.
 
Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.
Amortization of DAC and other balances
 
Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.
 
An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.
 
The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits
 
Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record market risk benefit 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 that is 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 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.
 
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.
v3.20.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Fixed Maturities, Available-for-sale Securities
The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:
 
June 30, 2020
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Allowance for Credit Losses
 
Fair
Value
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
124,521

 
$
3,921

 
$
0

 
$
0

 
$
128,442

Obligations of U.S. states and their political subdivisions
460,917

 
51,958

 
0

 
0

 
512,875

Foreign government bonds
190,655

 
32,670

 
42

 
0

 
223,283

U.S. public corporate securities
2,060,742

 
342,008

 
7,976

 
0

 
2,394,774

U.S. private corporate securities
898,457

 
70,998

 
4,803

 
1,899

 
962,753

Foreign public corporate securities
225,423

 
28,997

 
2,762

 
0

 
251,658

Foreign private corporate securities
969,193

 
40,731

 
32,418

 
2,673

 
974,833

Asset-backed securities(1)
122,786

 
658

 
2,554

 
0

 
120,890

Commercial mortgage-backed securities
437,874

 
34,650

 
0

 
0

 
472,524

Residential mortgage-backed securities(2)
59,732

 
4,558

 
0

 
0

 
64,290

Total fixed maturities, available-for-sale
$
5,550,300

 
$
611,149

 
$
50,555

 
$
4,572

 
$
6,106,322


(1)
Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and home equity loans.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
OTTI
in AOCI(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
83,622

 
$
2,846

 
$
0

 
$
86,468

 
$
0

Obligations of U.S. states and their political subdivisions
458,152

 
39,675

 
0

 
497,827

 
0

Foreign government bonds
196,034

 
26,793

 
1

 
222,826

 
0

U.S. public corporate securities
1,914,503

 
229,071

 
2,247

 
2,141,327

 
0

U.S. private corporate securities
886,281

 
44,497

 
1,006

 
929,772

 
0

Foreign public corporate securities
256,843

 
22,158

 
385

 
278,616

 
0

Foreign private corporate securities
939,603

 
38,426

 
19,551

 
958,478

 
0

Asset-backed securities(1)
119,602

 
800

 
466

 
119,936

 
(7
)
Commercial mortgage-backed securities
367,848

 
15,231

 
163

 
382,916

 
0

Residential mortgage-backed securities(2)
60,778

 
3,050

 
24

 
63,804

 
(131
)
Total fixed maturities, available-for-sale
$
5,283,266

 
$
422,547

 
$
23,843

 
$
5,681,970

 
$
(138
)

(1)
Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.
(2)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(3)
Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $1.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
Duration Of Gross Unrealized Losses On Fixed Maturity Securities

The following table sets 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 date indicated:

 
June 30, 2020
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Foreign government bonds
$
2,119

 
$
42

 
$
0

 
$
0

 
$
2,119

 
$
42

U.S. public corporate securities
119,249

 
6,812

 
4,858

 
1,164

 
124,107

 
7,976

U.S. private corporate securities
85,321

 
4,514

 
3,772

 
287

 
89,093

 
4,801

Foreign public corporate securities
10,640

 
819

 
5,312

 
1,943

 
15,952

 
2,762

Foreign private corporate securities
148,434

 
5,474

 
192,258

 
26,330

 
340,692

 
31,804

Asset-backed securities
47,117

 
1,087

 
55,368

 
1,467

 
102,485

 
2,554

Commercial mortgage-backed securities
0

 
0

 
0

 
0

 
0

 
0

Residential mortgage-backed securities
83

 
0

 
0

 
0

 
83

 
0

Total fixed maturities, available-for-sale
$
412,963

 
$
18,748

 
$
261,568

 
$
31,191

 
$
674,531

 
$
49,939


The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date indicated:

 
December 31, 2019
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
Fair Value  
 
Gross
  Unrealized  
Losses
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Foreign government bonds
$
2,152

 
$
1

 
$
400

 
$
0

 
$
2,552

 
$
1

U.S. public corporate securities
81,622

 
984

 
19,206

 
1,263

 
100,828

 
2,247

U.S. private corporate securities
33,264

 
780

 
22,143

 
226

 
55,407

 
1,006

Foreign public corporate securities
3,839

 
23

 
9,379

 
362

 
13,218

 
385

Foreign private corporate securities
32,800

 
921

 
186,693

 
18,630

 
219,493

 
19,551

Asset-backed securities
32,361

 
243

 
55,461

 
223

 
87,822

 
466

Commercial mortgage-backed securities
22,153

 
163

 
0

 
0

 
22,153

 
163

Residential mortgage-backed securities
3,049

 
16

 
692

 
8

 
3,741

 
24

Total fixed maturities, available-for-sale
$
211,240

 
$
3,131

 
$
293,974

 
$
20,712

 
$
505,214

 
$
23,843
Fixed Maturities Classified by Contractual Maturity Date
The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

 
June 30, 2020
 
Amortized Cost
 
Fair Value
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
Due in one year or less
$
238,403

 
$
240,471

Due after one year through five years
730,695

 
744,717

Due after five years through ten years
958,937

 
998,183

Due after ten years
3,001,873

 
3,465,247

Asset-backed securities
122,786

 
120,890

Commercial mortgage-backed securities
437,874

 
472,524

Residential mortgage-backed securities
59,732

 
64,290

Total fixed maturities, available-for-sale
$
5,550,300

 
$
6,106,322
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, impairments and the allowance for credit losses of fixed maturities, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
Proceeds from sales(1)
$
5,223

 
$
28,231

 
$
12,941

 
$
53,018

Proceeds from maturities/prepayments
55,968

 
75,554

 
137,754

 
128,429

Gross investment gains from sales and maturities
39

 
(1,384
)
 
592

 
(435
)
Gross investment losses from sales and maturities
(1,663
)
 
(1,105
)
 
(1,736
)
 
(3,075
)
OTTI recognized in earnings(2)
N/A

 
0

 
N/A

 
(3,163
)
Write-downs recognized in earnings(3)
(77
)
 
N/A

 
(1,022
)
 
N/A

(Addition to) release of allowance for credit losses(4)
$
(2,362
)
 
N/A

 
(4,572
)
 
N/A


(1)
Includes $0.1 million and $2.1 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019, respectively.
(2)
For the three and six months ended June 30, 2019, amounts exclude the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
(3)
For the three and six months ended June 30, 2020, amounts represent write-downs on securities approaching maturity related to foreign exchange movements and securities actively marketed for sale.
(4)
Effective January 1, 2020, credit losses on available-for-sale fixed maturity securities are recorded within the “allowance for credit losses.”

Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI
The following table sets forth the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated:

 
June 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 year
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Additions to allowance for credit losses not previously recorded
0

 
0

 
4,891

 
0

 
0

 
0

 
4,891

Reductions for securities sold during the period
0

 
0

 
(9
)
 
0

 
0

 
0

 
(9
)
Addition (reductions) on securities with previous allowance
0

 
0

 
(310
)
 
0

 
0

 
0

 
(310
)
Balance, end of period
$
0

 
$
0

 
$
4,572

 
$
0

 
$
0

 
$
0

 
$
4,572
Commercial Mortgage and Other Loans
The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
Amount
(in thousands)
 
% of
Total
 
Amount
(in thousands)
 
% of
Total
Commercial mortgage and agricultural property loans by property type:
 
 
 
 
 
 
 
Apartments/Multi-Family
$
356,713

 
29.7
%
 
$
355,175

 
28.6
%
Hospitality
33,673

 
2.8

 
31,449

 
2.5

Industrial
310,332

 
25.8

 
299,803

 
24.1

Office
189,770

 
15.8

 
205,498

 
16.6

Other
139,624

 
11.6

 
136,841

 
11.0

Retail
151,200

 
12.6

 
190,690

 
15.4

Total commercial mortgage loans
1,181,312

 
98.3

 
1,219,456

 
98.2

Agricultural property loans
20,879

 
1.7

 
22,197

 
1.8

Total commercial mortgage and agricultural property loans by property type
1,202,191

 
100.0
%
 
1,241,653

 
100.0
%
Allowance for credit losses
(4,559
)
 
 
 
(1,768
)
 
 
Total net commercial mortgage and agricultural property loans by property type
1,197,632

 
 
 
1,239,885

 
 
Other loans:
 
 
 
 
 
 
 
Other collateralized loans
927

 
 
 
0

 
 
Total other loans
927

 
 
 
0

 
 
Allowance for credit losses
0

 
 
 
0

 
 
Total net other loans
927

 
 
 
0

 
 
Total commercial mortgage and other loans
$
1,198,559

 
 
 
$
1,239,885

 
 
Allowance for Credit Losses
The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Other Collateralized Loans
 
Total
 
(in thousands)
Balance at December 31, 2018
$
2,026

 
$
39

 
$
0

 
$
2,065

Addition to (release of) allowance for credit losses
(283
)
 
(14
)
 
0

 
(297
)
Balance at December 31, 2019
1,743

 
25

 
0

 
1,768

Cumulative effect of adoption of ASU 2016-13
2,495

 
(8
)
 
0

 
2,487

Addition to (release of) allowance for expected losses
311

 
(7
)
 
0

 
304

Balance at June 30, 2020
$
4,549

 
$
10

 
$
0

 
$
4,559
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 date indicated:
 
June 30, 2020
 
Amortized Cost by Origination Year
 
2020
 
2019
 
2018
 
2017
 
2016
 
Prior
 
Revolving Loans
 
Total
 
(in thousands)
Loan-to-Value Ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
$
0

 
$
57,680

 
$
35,787

 
$
90,979

 
$
164,124

 
$
256,759

 
$
0

 
$
605,329

60%-69.99%
16,864

 
65,000

 
80,324

 
53,111

 
90,127

 
91,606

 
0

 
397,032

70%-79.99%
7,627

 
45,957

 
81,130

 
32,826

 
9,628

 
1,561

 
0

 
178,729

80% or greater
0

 
0

 
0

 
0

 
0

 
222

 
0

 
222

Subtotal
24,491

 
168,637

 
197,241

 
176,916

 
263,879

 
350,148

 
0

 
1,181,312

Agricultural property loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
0

 
0

 
0

 
6,486

 
0

 
14,393

 
0

 
20,879

60%-69.99%
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

70%-79.99%
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

80% or greater
0

 
0

 
0

 
0

 
0

 
0

 
0

 
0

Subtotal
0

 
0

 
0

 
6,486

 
0

 
14,393

 
0

 
20,879

Total commercial mortgage and agricultural property loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0%-59.99%
0

 
57,680

 
35,787

 
97,465

 
164,124

 
271,152

 
0

 
626,208

60%-69.99%
16,864

 
65,000

 
80,324

 
53,111

 
90,127

 
91,606

 
0

 
397,032

70%-79.99%
7,627

 
45,957

 
81,130

 
32,826

 
9,628

 
1,561

 
0

 
178,729

80% or greater
0

 
0

 
0

 
0

 
0

 
222

 
0

 
222

Total commercial mortgage and agricultural property loans
$
24,491

 
$
168,637

 
$
197,241

 
$
183,402

 
$
263,879

 
$
364,541

 
$
0

 
$
1,202,191



 
June 30, 2020
 
December 31, 2019
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
Commercial Mortgage Loans
 
Agricultural Property Loans
 
(in thousands)
Debt Service Coverage Ratio:
 
 
 
 
 
 
 
Greater or equal to 1.2x
$
1,117,808

 
$
20,064

 
$
1,159,411

 
$
21,382

1.0 - 1.2x
62,866

 
0

 
58,948

 
0

Less than 1.0x
638

 
815

 
1,097

 
815

Total
$
1,181,312

 
$
20,879

 
$
1,219,456

 
$
22,197
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status
The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
 
June 30, 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
$
1,181,312

 
$
0

 
$
0

 
$
0

 
$
1,181,312

 
$
0

Agricultural property loans
20,879

 
0

 
0

 
0

 
20,879

 
0

Other collateralized loans
927

 
0

 
0

 
0

 
927

 
0

Total
$
1,203,118

 
$
0

 
$
0

 
$
0

 
$
1,203,118

 
$
0


(1)
As of June 30, 2020, there were no loans in this category accruing interest.
(2)
For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
 
December 31, 2019
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due(1)
 
Total Loans
 
Non-Accrual Status(2)
 
(in thousands)
Commercial mortgage loans
$
1,219,456

 
$
0

 
$
0

 
$
0

 
$
1,219,456

 
$
0

Agricultural property loans
22,197

 
0

 
0

 
0

 
22,197

 
0

Total
$
1,241,653

 
$
0

 
$
0

 
$
0

 
$
1,241,653

 
$
0



(1)
As of December 31, 2019, there were no loans in this category accruing interest.
(2)
For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Other Invested Assets
The following table sets forth the composition of “Other invested assets,” as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Company’s investment in separate accounts
$
44,685

 
$
46,573

LPs/LLCs:
 
 
 
Equity method:
 
 
 
Private equity
203,599

 
189,095

Hedge funds
68,132

 
64,002

Real estate-related
45,039

 
42,432

Subtotal equity method
316,770

 
295,529

Fair value:
 
 
 
Private equity
58,562

 
62,639

Hedge funds
503

 
562

Real estate-related
11,813

 
11,707

Subtotal fair value
70,878

 
74,908

Total LPs/LLCs
387,648

 
370,437

Derivative instruments
35,672

 
12,548

Total other invested assets
$
468,005

 
$
429,558
Accrued Investment Income
The following table sets forth the composition of “Accrued investment income,” as of the date indicated:

 
June 30, 2020
 
(in thousands)
 
 
Fixed maturities
$
50,396

Equity securities
1

Commercial mortgage and other loans
3,563

Policy loans
35,388

Short-term investments and cash equivalents
91

Total accrued investment income
$
89,439
Net Investment Income
The following table sets forth “Net investment income” by investment type, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities, available-for-sale
$
54,897

 
$
59,370

 
$
109,463

 
$
115,636

Fixed maturities, trading
395

 
326

 
793

 
634

Equity securities
103

 
221

 
205

 
442

Commercial mortgage and other loans
12,322

 
13,435

 
26,098

 
25,926

Policy loans
17,615

 
16,766

 
34,926

 
32,965

Other invested assets
2,165

 
18,060

 
(1,744
)
 
27,971

Short-term investments and cash equivalents
580

 
1,839

 
2,612

 
4,150

Gross investment income
88,077

 
110,017

 
172,353

 
207,724

Less: investment expenses
(4,615
)
 
(4,455
)
 
(9,310
)
 
(8,912
)
Net investment income
$
83,462

 
$
105,562

 
$
163,043

 
$
198,812
Realized Investment Gains (Losses), Net
The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Fixed maturities(1)
$
(4,063
)
 
$
(2,489
)
 
$
(6,738
)
 
$
(6,673
)
Commercial mortgage and other loans
(44
)
 
99

 
(232
)
 
106

Other invested assets
5

 
0

 
(310
)
 
12

Derivatives
(76,353
)
 
(49,846
)
 
17,104

 
(94,323
)
Short-term investments and cash equivalents
224

 
(14
)
 
(160
)
 
(7
)
Realized investment gains (losses), net
$
(80,231
)
 
$
(52,250
)
 
$
9,664

 
$
(100,885
)

 
(1)
Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.
Net Unrealized Gains and (Losses) on Investments
The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Fixed maturity securities, available-for-sale — with OTTI(1)
$ N/A

 
$
1,568

Fixed maturity securities, available-for-sale — all other(1)
N/A

 
397,136

Fixed maturity securities, available-for-sale with an allowance
(874
)
 
N/A

Fixed maturity securities, available-for-sale without an allowance
561,468

 
N/A

Derivatives designated as cash flow hedges(2)
93,867

 
26,126

Affiliated notes
6,029

 
4,715

Other investments
(4,391
)
 
(4,365
)
Net unrealized gains (losses) on investments
$
656,099

 
$
425,180


(1)
Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.”
(2)
For more information on cash flow hedges, see Note 4.
Repurchase Agreements and Securities Lending
The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
 
June 30, 2020
 
December 31, 2019
 
Remaining Contractual Maturities of the Agreements
 
 
 
Remaining Contractual Maturities of the Agreements
 
 
 
Overnight & Continuous
 
Up to 30 Days
 
Total
 
Overnight & Continuous
 
Up to 30 Days
 
Total
 
(in thousands)
U.S. public corporate securities
$
0

 
$
0

 
$
0

 
$
5,048

 
$
0

 
$
5,048

Foreign public corporate securities
2,700

 
0

 
2,700

 
2,481

 
0

 
2,481

Total cash collateral for loaned securities(1)
$
2,700

 
$
0

 
$
2,700

 
$
7,529

 
$
0

 
$
7,529



(1)
The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated.
v3.20.2
Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2020
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.
 
 
June 30, 2020
 
December 31, 2019
Primary Underlying Risk/Instrument Type
 
 
 
Fair Value
 
 
 
Fair Value
 
Gross Notional
 
Assets
 
Liabilities
 
Gross Notional
 
Assets
 
Liabilities
 
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Currency/Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
3,557

 
$
233

 
$
0

 
$
3,615

 
$
0

 
$
(50
)
Foreign Currency Swaps
 
795,871

 
97,822

 
(403
)
 
773,933

 
36,551

 
(12,471
)
Total Derivatives Designated as Hedge Accounting Instruments
 
$
799,428

 
$
98,055

 
$
(403
)
 
$
777,548

 
$
36,551

 
$
(12,521
)
Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
568,050

 
$
71,613

 
$
(13,849
)
 
$
569,925

 
$
33,256

 
$
(4,490
)
Foreign Currency
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Forwards
 
38,421

 
40

 
(704
)
 
21,580

 
0

 
(518
)
Credit
 
 
 
 
 
 
 
 
 
 
 
 
Credit Default Swaps
 
2,313

 
29

 
0

 
0

 
0

 
0

Currency/Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Swaps
 
136,770

 
19,336

 
(14
)
 
151,792

 
7,563

 
(1,892
)
Equity
 
 
 
 
 
 
 
 
 
 
 
 
Equity Options
 
2,990,475

 
128,092

 
(59,381
)
 
2,680,048

 
174,398

 
(78,381
)
Total Derivatives Not Qualifying as Hedge Accounting Instruments
 
$
3,736,029

 
$
219,110

 
$
(73,948
)
 
$
3,423,345

 
$
215,217

 
$
(85,281
)
Total Derivatives(1)(2)
 
$
4,535,457

 
$
317,165

 
$
(74,351
)
 
$
4,200,893

 
$
251,768

 
$
(97,802
)

(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 $19,014 million and $8,530 million as of June 30, 2020 and December 31, 2019, respectively included in "Future policy benefits" and $1,045 million and $962 million as of June 30, 2020 and December 31, 2019, respectively included in "Policyholders' account balances". The fair value of the related reinsurance, included in "Reinsurance recoverables" or "Other liabilities" was an asset of $19,028 million and $8,540 million as of June 30, 2020 and December 31, 2019, respectively.
(2)
Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Unaudited Interim Consolidated Statements of Financial Position.
Offsetting Of Financial Assets
The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

 
June 30, 2020
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the
Consolidated Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
317,165

 
$
(281,406
)
 
$
35,759

 
$
(34,768
)
 
$
991

Securities purchased under agreements to resell
139,384

 
0

 
139,384

 
(139,384
)
 
0

Total Assets
$
456,549

 
$
(281,406
)
 
$
175,143

 
$
(174,152
)
 
$
991

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0


 
December 31, 2019
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the Consolidated
Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Securities purchased under agreements to resell
0

 
0

 
0

 
0

 
0

Total Assets
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0


(1)
Amounts exclude the excess of collateral received/pledged from/to the counterparty.
Offsetting Of Financial Liabilities
The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

 
June 30, 2020
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the
Consolidated Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
317,165

 
$
(281,406
)
 
$
35,759

 
$
(34,768
)
 
$
991

Securities purchased under agreements to resell
139,384

 
0

 
139,384

 
(139,384
)
 
0

Total Assets
$
456,549

 
$
(281,406
)
 
$
175,143

 
$
(174,152
)
 
$
991

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
74,351

 
$
(74,351
)
 
$
0

 
$
0

 
$
0


 
December 31, 2019
 
Gross
Amounts of
Recognized
Financial
Instruments
 
Gross
Amounts
Offset in the Consolidated
Statements of
Financial
Position
 
Net Amounts
Presented in
the Consolidated Statements
of Financial
Position
 
Financial
Instruments/
Collateral (1)
 
Net
Amount
 
(in thousands)
Offsetting of Financial Assets:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Securities purchased under agreements to resell
0

 
0

 
0

 
0

 
0

Total Assets
$
251,765

 
$
(239,220
)
 
$
12,545

 
$
(12,545
)
 
$
0

Offsetting of Financial Liabilities:
 
 
 
 
 
 
 
 
 
Derivatives(1)
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0

Securities sold under agreements to repurchase
0

 
0

 
0

 
0

 
0

Total Liabilities
$
97,802

 
$
(97,802
)
 
$
0

 
$
0

 
$
0


(1)
Amounts exclude the excess of collateral received/pledged from/to the counterparty.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
 
Three Months Ended June 30, 2020
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Interest Rate
$
0

 
$
1

 
$
0

 
$
27

Currency/Interest Rate
387

 
2,745

 
(3,687
)
 
(30,356
)
Total cash flow hedges
387

 
2,746

 
(3,687
)
 
(30,329
)
Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
(796
)
 
0

 
0

 
0

Currency
(444
)
 
0

 
0

 
0

Currency/Interest Rate
(4,662
)
 
0

 
(10
)
 
0

Credit
(225
)
 
0

 
0

 
0

Equity
42,826

 
0

 
0

 
0

Embedded Derivatives
(113,439
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(76,740
)
 
0

 
(10
)
 
0

Total
$
(76,353
)
 
$
2,746

 
$
(3,697
)
 
$
(30,329
)
 
Six Months Ended June 30, 2020
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Interest Rate
$
(44
)
 
$
(2
)
 
$
0

 
$
327

Currency/Interest Rate
771

 
5,374

 
5,141

 
67,414

Total cash flow hedges
727

 
5,372

 
5,141

 
67,741

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
29,709

 
0

 
0

 
0

Currency
1,027

 
0

 
0

 
0

Currency/Interest Rate
14,671

 
0

 
48

 
0

Credit
(225
)
 
0

 
0

 
0

Equity
(32,118
)
 
0

 
0

 
0

Embedded Derivatives
3,313

 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
16,377

 
0

 
48

 
0

Total
$
17,104

 
$
5,372

 
$
5,189

 
$
67,741







 
Three Months Ended June 30, 2019
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Currency/Interest Rate
$
(88
)
 
$
2,211

 
$
1,482

 
$
13,316

Total cash flow hedges
(88
)
 
2,211

 
1,482

 
13,316

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
7,682

 
0

 
0

 
0

Currency
343

 
0

 
0

 
0

Currency/Interest Rate
1,673

 
0

 
4

 
0

Credit
0

 
0

 
0

 
0

Equity
12,666

 
0

 
0

 
0

Embedded Derivatives
(72,122
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(49,758
)
 
0

 
4

 
0

Total
$
(49,846
)
 
$
2,211

 
$
1,486

 
$
13,316



 
Six Months Ended June 30, 2019
 
Realized
Investment
Gains (Losses)
 
Net
Investment
Income
 
Other
Income
 
AOCI(1)
 
(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Currency/Interest Rate
$
(248
)
 
$
4,280

 
$
(34
)
 
$
6,662

Total cash flow hedges
(248
)
 
4,280

 
(34
)
 
6,662

Derivatives Not Qualifying as Hedge Accounting Instruments:
 
 
 
 
 
 
 
Interest Rate
15,297

 
0

 
0

 
0

Currency
323

 
0

 
0

 
0

Currency/Interest Rate
3,103

 
0

 
5

 
0

Credit
(1
)
 
0

 
0

 
0

Equity
41,529

 
0

 
0

 
0

Embedded Derivatives
(154,326
)
 
0

 
0

 
0

Total Derivatives Not Qualifying as Hedge Accounting Instruments
(94,075
)
 
0

 
5

 
0

Total
$
(94,323
)
 
$
4,280

 
$
(29
)
 
$
6,662


(1)
Net change in AOCI.
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, 2019
$
26,126

Amount recorded in AOCI
 
Interest Rate
281

Currency/Interest Rate
78,700

Total amount recorded in AOCI
78,981

Amount reclassified from AOCI to income
 
Interest Rate
46

Currency/Interest Rate
(11,286
)
Total amount reclassified from AOCI to income
(11,240
)
Balance, June 30, 2020
$
93,867
v3.20.2
Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
 
As of June 30, 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

 
$
83,650

 
$
44,792

 
$
0

 
$
128,442

Obligations of U.S. states and their political subdivisions
0

 
512,875

 
0

 
0

 
512,875

Foreign government bonds
0

 
223,122

 
161

 
0

 
223,283

U.S. corporate public securities
0

 
2,394,770

 
4

 
0

 
2,394,774

U.S. corporate private securities
0

 
926,773

 
35,980

 
0

 
962,753

Foreign corporate public securities
0

 
242,461

 
9,197

 
0

 
251,658

Foreign corporate private securities
0

 
863,042

 
111,791

 
0

 
974,833

Asset-backed securities(2)
0

 
119,383

 
1,507

 
0

 
120,890

Commercial mortgage-backed securities
0

 
472,524

 
0

 
0

 
472,524

Residential mortgage-backed securities
0

 
64,290

 
0

 
0

 
64,290

Subtotal
0

 
5,902,890

 
203,432

 
0

 
6,106,322

Fixed maturities, trading
0

 
56,063

 
644

 
0

 
56,707

Equity securities
108

 
301

 
9,150

 
0

 
9,559

Short-term investments
99,980

 
1,987

 
0

 
0

 
101,967

Cash equivalents
364,949

 
180,643

 
0

 
0

 
545,592

Other invested assets(3)
0

 
317,165

 
0

 
(281,406
)
 
35,759

Reinsurance recoverables
0

 
0

 
19,028,138

 
0

 
19,028,138

Receivables from parent and affiliates
0

 
120,138

 
0

 
0

 
120,138

Subtotal excluding separate account assets
465,037

 
6,579,187

 
19,241,364

 
(281,406
)
 
26,004,182

Separate account assets(4)(5)
0

 
126,304,403

 
0

 
0

 
126,304,403

Total assets
$
465,037

 
$
132,883,590

 
$
19,241,364

 
$
(281,406
)
 
$
152,308,585

Future policy benefits(6)
$
0

 
$
0

 
$
19,014,066

 
$
0

 
$
19,014,066

Policyholders' account balances
0

 
0

 
1,045,483

 
0

 
1,045,483

Payables to parent and affiliates
0

 
74,351

 
0

 
(74,351
)
 
0

Total liabilities
$
0

 
$
74,351

 
$
20,059,549

 
$
(74,351
)
 
$
20,059,549


 
 
As of December 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Netting(1)
 
Total
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government authorities and agencies
$
0

 
$
47,797

 
$
38,671

 
$
0

 
$
86,468

Obligations of U.S. states and their political subdivisions
0

 
497,827

 
0

 
0

 
497,827

Foreign government bonds
0

 
222,663

 
163

 
0

 
222,826

U.S. corporate public securities
0

 
2,141,324

 
3

 
0

 
2,141,327

U.S. corporate private securities
0

 
893,943

 
35,829

 
0

 
929,772

Foreign corporate public securities
0

 
278,435

 
181

 
0

 
278,616

Foreign corporate private securities
0

 
944,408

 
14,070

 
0

 
958,478

Asset-backed securities(2)
0

 
117,935

 
2,001

 
0

 
119,936

Commercial mortgage-backed securities
0

 
382,916

 
0

 
0

 
382,916

Residential mortgage-backed securities
0

 
63,804

 
0

 
0

 
63,804

Subtotal
0

 
5,591,052

 
90,918

 
0

 
5,681,970

Fixed maturities, trading
0

 
59,296

 
668

 
0

 
59,964

Equity securities
131

 
465

 
9,898

 
0

 
10,494

Short-term investments
0

 
0

 
0

 
0

 
0

Cash equivalents
0

 
547,642

 
0

 
0

 
547,642

Other invested assets(3)
0

 
251,764

 
4

 
(239,220
)
 
12,548

Reinsurance recoverables
0

 
0

 
8,539,671

 
0

 
8,539,671

Receivables from parent and affiliates
0

 
119,431

 
3,135

 
0

 
122,566

Subtotal excluding separate account assets
131

 
6,569,650

 
8,644,294

 
(239,220
)
 
14,974,855

Separate account assets(4)(5)
0

 
133,625,669

 
0

 
0

 
133,625,669

Total assets
$
131

 
$
140,195,319

 
$
8,644,294

 
$
(239,220
)
 
$
148,600,524

Future policy benefits(6)
$
0

 
$
0

 
$
8,529,566

 
$
0

 
$
8,529,566

Policyholders' account balances
0

 
0

 
962,351

 
0

 
962,351

Payables to parent and affiliates
0

 
97,802

 
0

 
(97,802
)
 
0

Total liabilities
$
0

 
$
97,802

 
$
9,491,917

 
$
(97,802
)
 
$
9,491,917


(1)
“Netting” amounts represent cash collateral of $207.1 million and $141.4 million as of June 30, 2020 and December 31, 2019, 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 June 30, 2020 and December 31, 2019, the fair values of such investments were $71 million and $75 million, respectively.
(4)
Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.
(5)
Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At June 30, 2020 and December 31, 2019, the fair value of such investments was $4,599 million and $4,762 million, respectively.
(6)
As of June 30, 2020, the net embedded derivative liability position of $19,014 million includes $236 million of embedded derivatives in an asset position and $19,250 million of embedded derivatives in a liability position. As of December 31, 2019, the net embedded derivative liability position of $8,530 million includes $611 million of embedded derivatives in an asset position and $9,141 million of embedded derivatives in a liability position.
Fair Value Inputs, Assets and Liabilities, Quantitative Information The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.
 
As of June 30, 2020
 
Fair Value  
  Valuation  
Techniques
 
Unobservable Inputs  
 
Minimum  
 
Maximum  
 
  Weighted  
Average
 
  Impact of 
Increase in 
Input on 
Fair Value(1)
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities(2)
$
134,414

Discounted cash flow
 
Discount rate
 
1.44
%
 
 
20.73
%
 
 
3.93
%
 
 
Decrease
Reinsurance recoverables
$
19,028,138

Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits(4)
$
19,014,066

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
20
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.17
%
 
 
1.69
%
 
 
 
 
 
Decrease
 
 
 
 
Utilization rate(8)
 
39
%
 
 
96
%
 
 
 
 
 
Increase
 
 
 
 
Withdrawal rate 
 
See table footnote (9) below.
 
 
 
 
Mortality rate(10)
 
0
%
 
 
15
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
18
%
 
 
29
%
 
 
 
 
 
Increase
Policyholders' account balances(5)
$
1,045,483

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
6
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.17
%
 
 
1.69
%
 
 
 
 
 
Decrease
 
 
 
 
Mortality rate(10)
 
0
%
 
 
24
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
18
%
 
 
35
%
 
 
 
 
 
Increase
 
As of December 31, 2019
 
Fair Value  
   Valuation  
Techniques
 
  Unobservable
Inputs  
 
Minimum  
 
Maximum  
 
  Weighted  
Average
 
  Impact of 
Increase in 
Input on 
Fair Value(1)
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities(2)
$
27,816

Discounted cash flow
 
Discount rate
 
5.24
%
 
 
17.47
%
 
 
8.25
%
 
 
Decrease
 
 
Market comparables
 
EBITDA multiples(3)
 
5.7X
 
 
5.7X
 
 
5.7X
 
 
Increase
Reinsurance recoverables
$
8,539,671

Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits(4)
$
8,529,566

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
18
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.10
%
 
 
1.23
%
 
 
 
 
 
Decrease
 
 
 
 
Utilization rate(8)
 
43
%
 
 
97
%
 
 
 
 
 
Increase
 
 
 
 
Withdrawal rate
 
See table footnote (9) below.
 
 
 
 
Mortality rate(10)
 
0
%
 
 
15
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
13
%
 
 
23
%
 
 
 
 
 
Increase
Policyholders' account balances(5)
962,351

Discounted cash flow
 
Lapse rate(6)
 
1
%
 
 
6
%
 
 
 
 
 
Decrease
 
 
 
 
Spread over LIBOR(7)
 
0.10
%
 
 
1.23
%
 
 
 
 
 
Decrease
 
 
 
 
Mortality rate(10)
 
0
%
 
 
24
%
 
 
 
 
 
Decrease
 
 
 
 
Equity volatility curve
 
10
%
 
 
23
%
 
 
 
 
 
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 and available-for-sale.
(3)
Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.
(4)
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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(5)
Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(6)
Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.
(7)
The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.
(8)
The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.
(9)
The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2020 and December 31, 2019, the minimum withdrawal rate assumption is 76% and 78% respectively. As of June 30, 2020 and December 31, 2019 the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.
(10)
The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

 
Three Months Ended June 30, 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
$
42,013

$
0

$
2,779

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
152

9

0

0

0

0

0

0

0

161

9

Corporate securities(4)
130,682

16,438

1,471

0

0

(3,377
)
0

11,758

0

156,972

16,378

Structured securities(5)
7,438

9

0

0

0

(304
)
0

0

(5,636
)
1,507

9

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
538

106

0

0

0

0

0

0

0

644

106

Equity securities
9,196

(46
)
0

0

0

0

0

0

0

9,150

(46
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
20,214,824

(1,457,242
)
270,556

0

0

0

0

0

0

19,028,138

(1,317,838
)
Receivables from parent and affiliates
1,575

4

0

0

0

(1,579
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(20,196,457
)
1,450,990

0

0

(268,599
)
0

0

0

0

(19,014,066
)
1,319,848

Policyholders' account balances(6)
(900,261
)
(77,695
)
0

0

(67,527
)
0

0

0

0

(1,045,483
)
(82,850
)

 
Three Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(2,361
)
$
0

$
18,807

$
10

 
$
(2,361
)
$
0

$
18,757

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

106

0

0

 
0

106

0

Equity securities
0

(46
)
0

0

 
0

(46
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
(1,457,242
)
0

0

0

 
(1,317,838
)
0

0

Receivables from parent and affiliates
0

0

0

4

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
1,450,990

0

0

0

 
1,319,848

0

0

Policyholders' account balances
(77,695
)
0

0

0

 
(82,850
)
0

0




 
Six Months Ended June 30, 2020
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
38,671

$
0

$
6,121

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
163

(2
)
0

0

0

0

0

0

0

161

(2
)
Corporate securities(4)
50,083

(1,532
)
8,664

(3,680
)
0

(6,335
)
0

109,772

0

156,972

(807
)
Structured securities(5)
2,001

(475
)
6,145

0

0

(528
)
0

0

(5,636
)
1,507

(473
)
Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
668

(24
)
0

0

0

0

0

0

0

644

(24
)
Equity securities
9,898

(748
)
0

0

0

0

0

0

0

9,150

(748
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
8,539,671

9,950,960

537,507

0

0

0

0

0

0

19,028,138

10,102,377

Receivables from parent and affiliates
3,135

23

0

0

0

(3,158
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(8,529,566
)
(9,950,913
)
0

0

(533,587
)
0

0

0

0

(19,014,066
)
(10,102,329
)
Policyholders' account balances(6)
(962,351
)
39,960

0

0

(123,092
)
0

0

0

0

(1,045,483
)
42,260


 
Six Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(4,140
)
$
0

$
2,031

$
100

 
$
(3,695
)
$
0

$
2,413

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(24
)
0

0

 
0

(24
)
0

Equity securities
0

(748
)
0

0

 
0

(748
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
9,950,960

0

0

0

 
10,102,377

0

0

Receivables from parent and affiliates
0

0

0

23

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
(9,950,913
)
0

0

0

 
(10,102,329
)
0

0

Policyholders' account balances
39,960

0

0

0

 
42,260

0

0


 
Three Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
32,188

$
0

$
2,204

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
164

1

0

0

0

0

0

0

0

165

0

Corporate securities(4)
54,960

234

791

(25
)
0

(2,584
)
(1
)
639

0

54,014

0

Structured securities(5)
79,804

42

0

(1
)
0

(177
)
0

1,700

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,991

1,114

0

0

0

0

0

0

0

17,105

1,114

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
6,468,704

1,773,188

244,013

0

0

0

0

0

0

8,485,905

1,833,209

Receivables from parent and affiliates
7,792

82

0

0

0

(1,579
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(6,459,377
)
(1,775,097
)
0

0

(242,067
)
0

0

0

0

(8,476,541
)
(1,836,960
)
Policyholders' account balances(6)
(53,136
)
(691,927
)
0

0

(41,906
)
0

0

0

0

(786,969
)
(691,376
)

 
Three Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(665
)
$
0

$
678

$
264

 
$
0

$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,114

0

0

 
0

1,114

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
1,773,188

0

0

0

 
1,833,209

0

Receivables from parent and affiliates
0

0

0

82

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(1,775,097
)
0

0

0

 
(1,836,960
)
0

Policyholders' account balances
(691,927
)
0

0

0

 
(691,376
)
0


 
Six Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
29,816

$
0

$
4,576

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
0

6

0

0

0

0

0

159

0

165

0

Corporate securities(4)
56,588

(3,178
)
2,122

(53
)
0

(9,681
)
0

8,216

0

54,014

(3,163
)
Structured securities(5)
6,556

1,310

0

(2
)
0

(4,156
)
0

77,660

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,997

1,108

0

0

0

0

0

0

0

17,105

1,108

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
5,600,008

2,406,506

479,391

0

0

0

0

0

0

8,485,905

2,504,883

Receivables from parent and affiliates
9,261

193

0

0

0

(3,159
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(5,588,840
)
(2,412,199
)
0

0

(475,502
)
0

0

0

0

(8,476,541
)
(2,510,576
)
Policyholders' account balances(6)
(13,015
)
(725,541
)
0

0

(48,413
)
0

0

0

0

(786,969
)
(724,989
)

 
Six Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(3,067
)
$
0

$
842

$
363

 
$
(3,163
)
$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,108

0

0

 
0

1,108

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
2,406,506

0

0

0

 
2,504,883

0

Receivables from parent and affiliates
0

0

0

193

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(2,412,199
)
0

0

0

 
(2,510,576
)
0

Policyholders' account balances
(725,541
)
0

0

0

 
(724,989
)
0


(1)
Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.
(2)
Other includes reclassifications of certain assets and liabilities between reporting categories.
(3)
Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
(4)
Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.
(5)
Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.
(6)
Issuances and settlements for Policyholders' account balances are presented net in the rollforward.
(7)
Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

 
Three Months Ended June 30, 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
$
42,013

$
0

$
2,779

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
152

9

0

0

0

0

0

0

0

161

9

Corporate securities(4)
130,682

16,438

1,471

0

0

(3,377
)
0

11,758

0

156,972

16,378

Structured securities(5)
7,438

9

0

0

0

(304
)
0

0

(5,636
)
1,507

9

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
538

106

0

0

0

0

0

0

0

644

106

Equity securities
9,196

(46
)
0

0

0

0

0

0

0

9,150

(46
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
20,214,824

(1,457,242
)
270,556

0

0

0

0

0

0

19,028,138

(1,317,838
)
Receivables from parent and affiliates
1,575

4

0

0

0

(1,579
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(20,196,457
)
1,450,990

0

0

(268,599
)
0

0

0

0

(19,014,066
)
1,319,848

Policyholders' account balances(6)
(900,261
)
(77,695
)
0

0

(67,527
)
0

0

0

0

(1,045,483
)
(82,850
)

 
Three Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(2,361
)
$
0

$
18,807

$
10

 
$
(2,361
)
$
0

$
18,757

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

106

0

0

 
0

106

0

Equity securities
0

(46
)
0

0

 
0

(46
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
(1,457,242
)
0

0

0

 
(1,317,838
)
0

0

Receivables from parent and affiliates
0

0

0

4

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
1,450,990

0

0

0

 
1,319,848

0

0

Policyholders' account balances
(77,695
)
0

0

0

 
(82,850
)
0

0




 
Six Months Ended June 30, 2020
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
38,671

$
0

$
6,121

$
0

$
0

$
0

$
0

$
0

$
0

$
44,792

$
0

Foreign government
163

(2
)
0

0

0

0

0

0

0

161

(2
)
Corporate securities(4)
50,083

(1,532
)
8,664

(3,680
)
0

(6,335
)
0

109,772

0

156,972

(807
)
Structured securities(5)
2,001

(475
)
6,145

0

0

(528
)
0

0

(5,636
)
1,507

(473
)
Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
668

(24
)
0

0

0

0

0

0

0

644

(24
)
Equity securities
9,898

(748
)
0

0

0

0

0

0

0

9,150

(748
)
Other invested assets
4

(4
)
0

0

0

0

0

0

0

0

(4
)
Short-term investments
0

0

0

0

0

0

0

0

0

0

0

Reinsurance recoverables
8,539,671

9,950,960

537,507

0

0

0

0

0

0

19,028,138

10,102,377

Receivables from parent and affiliates
3,135

23

0

0

0

(3,158
)
0

0

0

0

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(8,529,566
)
(9,950,913
)
0

0

(533,587
)
0

0

0

0

(19,014,066
)
(10,102,329
)
Policyholders' account balances(6)
(962,351
)
39,960

0

0

(123,092
)
0

0

0

0

(1,045,483
)
42,260


 
Six Months Ended June 30, 2020
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
Included in other comprehensive income (loss)(7)
 
(in thousands)
Fixed maturities, available-for-sale
$
(4,140
)
$
0

$
2,031

$
100

 
$
(3,695
)
$
0

$
2,413

Other assets:
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(24
)
0

0

 
0

(24
)
0

Equity securities
0

(748
)
0

0

 
0

(748
)
0

Other invested assets
(4
)
0

0

0

 
(4
)
0

0

Short-term investments
0

0

0

0

 
0

0

0

Reinsurance recoverables
9,950,960

0

0

0

 
10,102,377

0

0

Receivables from parent and affiliates
0

0

0

23

 
0

0

0

Liabilities:
 
 
 
 
 
 
 
 
Future policy benefits
(9,950,913
)
0

0

0

 
(10,102,329
)
0

0

Policyholders' account balances
39,960

0

0

0

 
42,260

0

0


 
Three Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
32,188

$
0

$
2,204

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
164

1

0

0

0

0

0

0

0

165

0

Corporate securities(4)
54,960

234

791

(25
)
0

(2,584
)
(1
)
639

0

54,014

0

Structured securities(5)
79,804

42

0

(1
)
0

(177
)
0

1,700

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,991

1,114

0

0

0

0

0

0

0

17,105

1,114

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
6,468,704

1,773,188

244,013

0

0

0

0

0

0

8,485,905

1,833,209

Receivables from parent and affiliates
7,792

82

0

0

0

(1,579
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(6,459,377
)
(1,775,097
)
0

0

(242,067
)
0

0

0

0

(8,476,541
)
(1,836,960
)
Policyholders' account balances(6)
(53,136
)
(691,927
)
0

0

(41,906
)
0

0

0

0

(786,969
)
(691,376
)

 
Three Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(665
)
$
0

$
678

$
264

 
$
0

$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,114

0

0

 
0

1,114

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
1,773,188

0

0

0

 
1,833,209

0

Receivables from parent and affiliates
0

0

0

82

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(1,775,097
)
0

0

0

 
(1,836,960
)
0

Policyholders' account balances
(691,927
)
0

0

0

 
(691,376
)
0


 
Six Months Ended June 30, 2019
 
Fair Value, beginning of period
Total realized and unrealized gains (losses)(1)
Purchases
Sales
Issuances
Settlements
Other(2)
Transfers into Level 3
Transfers out of Level 3
Fair Value, end of period
Unrealized gains (losses) for assets still held(3)
 
(in thousands)
Fixed maturities, available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
29,816

$
0

$
4,576

$
0

$
0

$
0

$
0

$
0

$
0

$
34,392

$
0

Foreign government
0

6

0

0

0

0

0

159

0

165

0

Corporate securities(4)
56,588

(3,178
)
2,122

(53
)
0

(9,681
)
0

8,216

0

54,014

(3,163
)
Structured securities(5)
6,556

1,310

0

(2
)
0

(4,156
)
0

77,660

(77,071
)
4,297

0

Other assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

0

0

0

751

0

605

(146
)
Equity securities
15,997

1,108

0

0

0

0

0

0

0

17,105

1,108

Other invested assets
4

0

0

0

0

0

0

0

0

4

0

Short-term investments
0

0

463

0

0

(369
)
0

0

0

94

0

Reinsurance recoverables
5,600,008

2,406,506

479,391

0

0

0

0

0

0

8,485,905

2,504,883

Receivables from parent and affiliates
9,261

193

0

0

0

(3,159
)
0

0

0

6,295

0

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
(5,588,840
)
(2,412,199
)
0

0

(475,502
)
0

0

0

0

(8,476,541
)
(2,510,576
)
Policyholders' account balances(6)
(13,015
)
(725,541
)
0

0

(48,413
)
0

0

0

0

(786,969
)
(724,989
)

 
Six Months Ended June 30, 2019
 
Total realized and unrealized gains (losses)
 
Unrealized gains (losses) for assets still held(3)
 
Realized investment gains (losses), net(1)
Other income (loss)
Included in other comprehensive income (loss)
Net investment income
 
Realized investment gains (losses), net
Other income (loss)
 
(in thousands)
Fixed maturities, available-for-sale
$
(3,067
)
$
0

$
842

$
363

 
$
(3,163
)
$
0

Other assets:
 
 
 
 
 
 
 
Fixed maturities, trading
0

(146
)
0

0

 
0

(146
)
Equity securities
0

1,108

0

0

 
0

1,108

Other invested assets
0

0

0

0

 
0

0

Short-term investments
0

0

0

0

 
0

0

Reinsurance recoverables
2,406,506

0

0

0

 
2,504,883

0

Receivables from parent and affiliates
0

0

0

193

 
0

0

Liabilities:
 
 
 
 
 
 
 
Future policy benefits
(2,412,199
)
0

0

0

 
(2,510,576
)
0

Policyholders' account balances
(725,541
)
0

0

0

 
(724,989
)
0


(1)
Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.
(2)
Other includes reclassifications of certain assets and liabilities between reporting categories.
(3)
Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
(4)
Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.
(5)
Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.
(6)
Issuances and settlements for Policyholders' account balances are presented net in the rollforward.
(7)
Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.
Fair Value Disclosure Financial Instruments Not Carried at Fair Value
The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
 
June 30, 2020
 
Fair Value
 
Carrying
Amount(1)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
 
(in thousands)
Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgage and other loans
$
0

 
$
0

 
$
1,258,891

 
$
1,258,891

 
$
1,198,559

Policy loans
0

 
0

 
1,320,636

 
1,320,636

 
1,320,636

Cash and cash equivalents
28,805

 
139,384

 
0

 
168,189

 
168,189

Accrued investment income
0

 
89,439

 
0

 
89,439

 
89,439

Reinsurance recoverables
0

 
0

 
222,842

 
222,842

 
214,466

Receivables from parent and affiliates
0

 
177,773

 
0

 
177,773

 
177,773

Other assets
0

 
26,064

 
0

 
26,064

 
26,064

Total assets
$
28,805

 
$
432,660

 
$
2,802,369

 
$
3,263,834

 
$
3,195,126

Liabilities:
 
 
 
 
 
 
 
 
 
Policyholders’ account balances - investment contracts
$
0

 
$
1,328,711

 
$
283,303

 
$
1,612,014

 
$
1,603,637

Cash collateral for loaned securities
0

 
2,700

 
0

 
2,700

 
2,700

Short-term debt to affiliates
0

 
0

 
0

 
0

 
0

Payables to parent and affiliates
0

 
88,384

 
0

 
88,384

 
88,384

Other liabilities
0

 
355,439

 
0

 
355,439

 
355,439

Total liabilities
$
0

 
$
1,775,234

 
$
283,303

 
$
2,058,537

 
$
2,050,160

 
December 31, 2019
 
Fair Value
 
Carrying
Amount(1)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total
 
(in thousands)
Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgage and other loans
$
0

 
$
0

 
$
1,288,625

 
$
1,288,625

 
$
1,239,885

Policy loans
0

 
0

 
1,314,064

 
1,314,064

 
1,314,064

Cash and cash equivalents
15,557

 
0

 
0

 
15,557

 
15,557

Accrued investment income
0

 
89,448

 
0

 
89,448

 
89,448

Reinsurance recoverables
0

 
0

 
212,368

 
212,368

 
211,813

Receivables from parent and affiliates
0

 
149,415

 
0

 
149,415

 
149,415

Other assets
0

 
22,505

 
0

 
22,505

 
22,505

Total assets
$
15,557

 
$
261,368

 
$
2,815,057

 
$
3,091,982

 
$
3,042,687

Liabilities:
 
 
 
 
 
 
 
 
 
Policyholders’ account balances - investment contracts
$
0

 
$
1,264,128

 
$
277,782

 
$
1,541,910

 
$
1,541,355

Cash collateral for loaned securities
0

 
7,529

 
0

 
7,529

 
7,529

Short-term debt to affiliates
0

 
2,845

 
0

 
2,845

 
2,845

Payables to parent and affiliates
0

 
216,842

 
0

 
216,842

 
216,842

Other liabilities
0

 
387,109

 
0

 
387,109

 
387,109

Total liabilities
$
0

 
$
1,878,453

 
$
277,782

 
$
2,156,235

 
$
2,155,680


(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
v3.20.2
Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2020
Reinsurance Disclosures [Abstract]  
Reinsurance Impact on Statements of Financial Position
Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2020 and December 31, 2019 were as follows:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
Reinsurance recoverables(1)
$
52,917,099

 
$
40,710,159

Policy loans
(151,049
)
 
(142,262
)
Deferred policy acquisition costs
(6,779,267
)
 
(6,989,618
)
Deferred sales inducements
(471,999
)
 
(515,968
)
Other assets(2)
257,709

 
258,427

Policyholders’ account balances
4,873,043

 
4,934,544

Future policy benefits(3)
4,697,373

 
4,209,817

Other liabilities(4)
995,122

 
884,641



(1)
Includes $416.4 million and $156.7 million of unaffiliated activity as of June 30, 2020 and December 31, 2019, respectively.
(2)
Includes $0.0 million of unaffiliated activity at both June 30, 2020 and December 31, 2019.
(3)
Includes $0.1 million of unaffiliated activity at both June 30, 2020 and December 31, 2019.
(4)
Includes $46.8 million and $43.1 million of unaffiliated activity as of June 30, 2020 and December 31, 2019, respectively.
Reinsurance Recoverable by Counterparty
Reinsurance recoverables by counterparty are broken out below:
 
June 30, 2020
 
December 31, 2019
 
(in thousands)
PAR U
$
12,952,267

 
$
12,380,683

PALAC
21,096,307

 
11,635,405

PURC
5,115,192

 
4,692,769

PARCC
2,557,822

 
2,627,595

GUL Re
2,449,345

 
2,292,638

PAR Term
1,872,568

 
1,825,594

Prudential Insurance
2,848,823

 
1,764,512

Prudential of Taiwan
1,548,740

 
1,499,685

Term Re
1,646,121

 
1,506,366

DART
412,715

 
327,235

Unaffiliated
417,199

 
157,677

Total reinsurance recoverables
$
52,917,099

 
$
40,710,159
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss)
Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
484,577

 
$
476,986

 
$
960,063

 
$
939,257

Assumed(1)
47

 
52

 
95

 
106

Ceded(2)
(462,080
)
 
(464,621
)
 
(922,743
)
 
(912,952
)
Net premiums
22,544

 
12,417

 
37,415

 
26,411

Policy charges and fee income:
 
 
 
 
 
 
 
Direct
816,817

 
1,106,725

 
1,718,259

 
1,959,920

Assumed
131,579

 
128,748

 
264,083

 
255,707

Ceded(3)
(787,311
)
 
(1,086,802
)
 
(1,681,338
)
 
(1,927,767
)
Net policy charges and fee income
161,085

 
148,671

 
301,004

 
287,860

Net investment income:
 
 
 
 
 
 
 
Direct
84,946

 
106,949

 
166,038

 
201,507

Assumed
394

 
407

 
794

 
803

Ceded
(1,878
)
 
(1,794
)
 
(3,789
)
 
(3,498
)
Net investment income
83,462

 
105,562

 
163,043

 
198,812

Asset administration fees:
 
 
 
 
 
 
 
Direct
84,330

 
87,951

 
173,659

 
171,819

Assumed
0

 
0

 
0

 
0

Ceded
(80,028
)
 
(83,990
)
 
(164,969
)
 
(164,201
)
Net asset administration fees
4,302

 
3,961

 
8,690

 
7,618

Other income:
 
 
 
 
 
 
 
Direct
12,682

 
20,030

 
21,288

 
39,828

Assumed(4)
408

 
(1,271
)
 
(29
)
 
(1,471
)
Ceded
640

 
(39
)
 
125

 
(62
)
Amortization of reinsurance income
1,162

 
(3,722
)
 
2,344

 
(2,340
)
Net other income
14,892

 
14,998

 
23,728

 
35,955

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
1,408,425

 
(1,783,941
)
 
(9,900,749
)
 
(2,419,452
)
Assumed
0

 
0

 
0

 
0

Ceded(5)
(1,488,656
)
 
1,731,691

 
9,910,413

 
2,318,567

Realized investment gains (losses), net
(80,231
)
 
(52,250
)
 
9,664

 
(100,885
)
Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
744,620

 
1,150,985

 
1,811,718

 
1,797,296

Assumed(6)
208,315

 
282,961

 
569,770

 
494,711

Ceded(7)
(866,682
)
 
(1,387,655
)
 
(2,209,312
)
 
(2,206,238
)
Net policyholders’ benefits (including change in reserves)
86,253

 
46,291

 
172,176

 
85,769

Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
92,457

 
118,420

 
271,752

 
213,111

Assumed
34,020

 
34,512

 
68,256

 
65,169

Ceded
(60,060
)
 
(102,222
)
 
(218,545
)
 
(183,373
)
Net interest credited to policyholders’ account balances
66,417

 
50,710

 
121,463

 
94,907

Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization
(139,336
)
 
(573,978
)
 
(882,247
)
 
(917,993
)

(1)
Includes $0.1 million and $0 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.1 million for both the six months ended June 30, 2020 and 2019, respectively.
(2)
Includes $(2.6) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2020, and 2019, respectively and $(5.1) million and $(0.2) million for the six months ended June 30, 2020 and 2019, respectively.
(3)
Includes $(11) million and $(7) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $(21) million and $(12) million for the six months ended June 30, 2020 and 2019, respectively.
(4)
Includes $(0.4) million and $(1.0) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.0 million and $(2.0) million for the six months ended June 30, 2020 and 2019, respectively.
(5)
Includes $(29) million and $42 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $227 million and $56 million for the six months ended June 30, 2020 and 2019, respectively.
(6)
Includes $0.5 million and $0 million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $0.6 million and $(0.2) million for the six months ended June 30, 2020and 2019, respectively.
(7)
Includes $(19) million and $(2) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively and $(24) million and $(4) million for the six months ended June 30, 2020 and 2019, respectively.

Gross and Net Life Insurance in Force
The gross and net amounts of life insurance face amount in force as of June 30, 2020 and 2019 were as follows:
 
2020
 
2019
 
(in thousands)
Direct gross life insurance face amount in force
$
1,020,870,402

 
$
966,542,451

Assumed gross life insurance face amount in force
39,361,931

 
40,382,452

Reinsurance ceded
(976,357,109
)
 
(925,430,727
)
Net life insurance face amount in force
$
83,875,224

 
$
81,494,176
v3.20.2
Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019, are as follows:
 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2019
$
(7,917
)
 
$
289,359

 
$
281,442

Change in OCI before reclassifications
(3,888
)
 
195,529

 
191,641

Amounts reclassified from AOCI
0

 
(4,502
)
 
(4,502
)
Income tax benefit (expense)
12

 
(40,116
)
 
(40,104
)
Balance, June 30, 2020
$
(11,793
)
 
$
440,270

 
$
428,477

 
Accumulated Other Comprehensive Income (Loss)
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Investment Gains
(Losses)(1)
 
Total Accumulated
Other
Comprehensive
Income (Loss)
 
(in thousands)
Balance, December 31, 2018
$
(17,448
)
 
$
(10,848
)
 
$
(28,296
)
Change in OCI before reclassifications
7,007

 
332,927

 
339,934

Amounts reclassified from AOCI
0

 
10,672

 
10,672

Income tax benefit (expense)
2

 
(72,147
)
 
(72,145
)
Balance, June 30, 2019
$
(10,439
)
 
$
260,604

 
$
250,165


(1)
Includes cash flow hedges of $94 million and $26 million as of June 30, 2020 and December 31, 2019, respectively, and $29 million and $(18) million as of June 30, 2019 and December 31, 2018, respectively.
Reclassification out of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands)
Amounts reclassified from AOCI (1)(2):
 
 
 
 
 
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges - Currency/Interest rate(3)
$
(553
)
 
$
(4,393
)
 
$
11,240

 
$
(3,999
)
Net unrealized investment gains (losses) on available-for-sale securities
(4,063
)
 
(2,489
)
 
(6,738
)
 
(6,673
)
Total net unrealized investment gains (losses)(4)
(4,616
)
 
(6,882
)
 
4,502

 
(10,672
)
Total reclassifications for the period
$
(4,616
)
 
$
(6,882
)
 
$
4,502

 
$
(10,672
)

(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)
See Note 4 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. 
Allowance for Credit Losses Net Unrealized Investment Gain (Loss) in AOCI Rollforward The amounts for the periods indicated below, split between amounts related to 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 Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
DAC and Other Costs(2)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(1)
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Net investment gains (losses) on investments arising during the period
53

 
0

 
0

 
(11
)
 
42

Reclassification adjustment for (gains) losses included in net income
0

 
0

 
0

 
0

 
0

Increase (decrease) due to non-credit related losses recognized in AOCI during the period
(927
)
 
0

 
0

 
195

 
(732
)
Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
133

 
0

 
(28
)
 
105

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
59

 
(12
)
 
47

Balance, June 30, 2020
$
(874
)
 
$
133

 
$
59

 
$
144

 
$
(538
)

(1)
Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.
(2)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(3)
"Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward
All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(1)
 
DAC and Other Costs(3)
 
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)
 
Deferred
Income Tax
(Liability)
Benefit
 
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
 
(in thousands)
Balance, December 31, 2019(2)
$
425,180

 
$
423,227

 
$
(482,134
)
 
$
(76,914
)
 
$
289,359

Net investment gains (losses) on investments arising during the period
235,368

 
0

 
0

 
(49,428
)
 
185,940

Reclassification adjustment for (gains) losses included in net income
(4,502
)
 
0

 
0

 
945

 
(3,557
)
Reclassification due to allowance for credit losses recorded during the period
927

 
0

 
0

 
(195
)
 
732

Impact of net unrealized investment (gains) losses on DAC and other costs
0

 
475,035

 
0

 
(99,758
)
 
375,277

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities
0

 
0

 
(515,119
)
 
108,176

 
(406,943
)
Balance, June 30, 2020
$
656,973

 
$
898,262

 
$
(997,253
)
 
$
(117,174
)
 
$
440,808


(1)
Includes cash flow hedges. See Note 4 for information on cash flow hedges.
(2)
Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized.
(3)
"Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.
(4)
"Other liabilities" primarily includes reinsurance payables.
v3.20.2
Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2020
Related Party Transaction [Line Items]  
Affiliated Asset Transfers The table below shows affiliated asset trades for the six months ended June 30, 2020 and for the year ended December 31, 2019.
Affiliate
 
Date
 
Transaction  
 
Security Type  
 
Fair Value  
 
Book Value  
 
APIC, Net of Tax Increase/(Decrease)
 
Realized
Investment
Gain (Loss)
 
 
 
 
 
 
 
 
(in thousands)
Prudential Insurance
 
February 2019
 
Sale
 
Commercial Mortgages
 
$
4,995

 
$
5,000

 
$
(4
)
 
$
0

PALAC
 
April 2019
 
Sale
 
Equity Securities
 
$
14,525

 
$
13,466

 
$
0

 
$
1,059

Term Re
 
September 2019
 
Sale
 
Fixed Maturities
 
$
9,178

 
$
8,135

 
$
0

 
$
1,043

PURC
 
September 2019
 
Sale
 
Fixed Maturities
 
$
8,399

 
$
7,455

 
$
0

 
$
944

PAR U
 
September 2019
 
Sale
 
Fixed Maturities
 
$
31,466

 
$
28,146

 
$
0

 
$
3,320

Prudential Insurance
 
September 2019
 
Sale
 
Fixed Maturities
 
$
10,702

 
$
9,254

 
$
1,144

 
$
0

PURC
 
December 2019
 
Sale
 
Equity Securities
 
$
7,767

 
$
6,002

 
$
0

 
$
1,765

PAR Term
 
December 2019
 
Sale
 
Fixed Maturities
 
$
27,330

 
$
24,739

 
$
0

 
$
2,591

PURC
 
December 2019
 
Sale
 
Fixed Maturities
 
$
93,830

 
$
75,586

 
$
0

 
$
18,244

PURC
 
December 2019
 
Sale
 
Fixed Maturities
 
$
78,884

 
$
68,645

 
$
0

 
$
10,239

Prudential Insurance
 
December 2019
 
Purchase
 
Other Invested Assets
 
$
9,000

 
$
9,000

 
$
0

 
$
0

Prudential Insurance
 
March 2020
 
Purchase
 
Other Invested Assets
 
$
1,390

 
$
1,390

 
$
0

 
$
0

Prudential Insurance
 
April 2020
 
Purchase
 
Fixed Maturities
 
$
61,953

 
$
59,659

 
$
(1,812
)
 
$
0

Prudential Insurance
 
April 2020
 
Purchase
 
Fixed Maturities
 
$
3,485

 
$
3,320

 
$
(130
)
 
$
0
Affiliated Entity  
Related Party Transaction [Line Items]  
Affiliated Notes Receivable
Affiliated notes receivable included in “Receivables from parent and affiliates” at June 30, 2020 and December 31, 2019 were as follows:
 
Maturity Dates
 
Interest Rates
 
June 30, 2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
(in thousands)
U.S. dollar fixed rate notes
2020
-
2027
 
0.00%
-
14.85
%
 
$
120,139

 
$
122,566

Total notes receivable - affiliated(1)
 
 
 
 
 
 
 
 
$
120,139

 
$
122,566


(1)
All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.
v3.20.2
Revision to Prior Year Information (Tables)
 6 Months Ended
Jun. 30, 2020
Prior Period Adjustment [Abstract]  
Revisions to 2019 Consolidated Financial Statements
The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Cash Flows

Six Months Ended June 30, 2019

As Previously Reported

Revision

As Revised

(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:








Policy charges and fee income
$
(135,809
)

$
102,924


$
(32,885
)
Cash flows from (used in) operating activities
(41,058
)

102,924


61,866

CASH FLOWS FROM FINANCING ACTIVITIES:





Policyholders' account withdrawals
(1,712,728
)

(65,099
)

(1,777,827
)
Other, net
0


(37,825
)

(37,825
)
Cash flows from (used in) financing activities
446,736


(102,924
)

343,812
v3.20.2
Business and Basis of Presentation (Narrative) (Details)
 6 Months Ended
Jun. 30, 2020
subsidiary
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number Of Subsidiaries 1
v3.20.2
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Retained earnings $ 1,682,845   $ 1,577,453
Cumulative Effect Adjustment Upon Adoption | ASU 2016-13      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Retained earnings   $ 1,800  
v3.20.2
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 5,550,300 $ 5,283,266
Allowance for Credit Losses 4,572  
Fair Value 6,106,322 5,681,970
Fixed maturities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 5,550,300 5,283,266
Gross Unrealized Gains 611,149 422,547
Gross Unrealized Losses 50,555 23,843
Allowance for Credit Losses 4,572  
Fair Value 6,106,322 5,681,970
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 124,521 83,622
Gross Unrealized Gains 3,921 2,846
Gross Unrealized Losses 0 0
Allowance for Credit Losses 0  
Fair Value 128,442 86,468
Fixed maturities | Obligations of U.S. states and their political subdivisions    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 460,917 458,152
Gross Unrealized Gains 51,958 39,675
Gross Unrealized Losses 0 0
Allowance for Credit Losses 0  
Fair Value 512,875 497,827
Fixed maturities | Foreign government bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 190,655 196,034
Gross Unrealized Gains 32,670 26,793
Gross Unrealized Losses 42 1
Allowance for Credit Losses 0  
Fair Value 223,283 222,826
Fixed maturities | U.S. public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,060,742 1,914,503
Gross Unrealized Gains 342,008 229,071
Gross Unrealized Losses 7,976 2,247
Allowance for Credit Losses 0  
Fair Value 2,394,774 2,141,327
Fixed maturities | U.S. private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 898,457 886,281
Gross Unrealized Gains 70,998 44,497
Gross Unrealized Losses 4,803 1,006
Allowance for Credit Losses 1,899  
Fair Value 962,753 929,772
Fixed maturities | Foreign public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 225,423 256,843
Gross Unrealized Gains 28,997 22,158
Gross Unrealized Losses 2,762 385
Allowance for Credit Losses 0  
Fair Value 251,658 278,616
Fixed maturities | Foreign private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 969,193 939,603
Gross Unrealized Gains 40,731 38,426
Gross Unrealized Losses 32,418 19,551
Allowance for Credit Losses 2,673  
Fair Value 974,833 958,478
Fixed maturities | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 122,786 119,602
Gross Unrealized Gains 658 800
Gross Unrealized Losses 2,554 466
Allowance for Credit Losses 0  
Fair Value 120,890 119,936
Fixed maturities | Commercial mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 437,874 367,848
Gross Unrealized Gains 34,650 15,231
Gross Unrealized Losses 0 163
Allowance for Credit Losses 0  
Fair Value 472,524 382,916
Fixed maturities | Residential mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 59,732 60,778
Gross Unrealized Gains 4,558 3,050
Gross Unrealized Losses 0 24
Allowance for Credit Losses 0  
Fair Value $ 64,290 63,804
OTTI | Fixed maturities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   (138)
Net Unrealized Gains (Losses)   1,700
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Foreign government bonds    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | U.S. public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | U.S. private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Foreign public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Foreign private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   (7)
OTTI | Fixed maturities | Commercial mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   0
OTTI | Fixed maturities | Residential mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
OTTI in AOCI   $ (131)
v3.20.2
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value $ 412,963 $ 211,240
Less than Twelve Months, Gross Unrealized Losses 18,748 3,131
Twelve Months or More, Fair Value 261,568 293,974
Twelve Months or More, Gross Unrealized Losses 31,191 20,712
Total, Fair Value 674,531 505,214
Total, Gross Unrealized Losses 49,939 23,843
Foreign government bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 2,119 2,152
Less than Twelve Months, Gross Unrealized Losses 42 1
Twelve Months or More, Fair Value 0 400
Twelve Months or More, Gross Unrealized Losses 0 0
Total, Fair Value 2,119 2,552
Total, Gross Unrealized Losses 42 1
U.S. public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 119,249 81,622
Less than Twelve Months, Gross Unrealized Losses 6,812 984
Twelve Months or More, Fair Value 4,858 19,206
Twelve Months or More, Gross Unrealized Losses 1,164 1,263
Total, Fair Value 124,107 100,828
Total, Gross Unrealized Losses 7,976 2,247
U.S. private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 85,321 33,264
Less than Twelve Months, Gross Unrealized Losses 4,514 780
Twelve Months or More, Fair Value 3,772 22,143
Twelve Months or More, Gross Unrealized Losses 287 226
Total, Fair Value 89,093 55,407
Total, Gross Unrealized Losses 4,801 1,006
Foreign public corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 10,640 3,839
Less than Twelve Months, Gross Unrealized Losses 819 23
Twelve Months or More, Fair Value 5,312 9,379
Twelve Months or More, Gross Unrealized Losses 1,943 362
Total, Fair Value 15,952 13,218
Total, Gross Unrealized Losses 2,762 385
Foreign private corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 148,434 32,800
Less than Twelve Months, Gross Unrealized Losses 5,474 921
Twelve Months or More, Fair Value 192,258 186,693
Twelve Months or More, Gross Unrealized Losses 26,330 18,630
Total, Fair Value 340,692 219,493
Total, Gross Unrealized Losses 31,804 19,551
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 47,117 32,361
Less than Twelve Months, Gross Unrealized Losses 1,087 243
Twelve Months or More, Fair Value 55,368 55,461
Twelve Months or More, Gross Unrealized Losses 1,467 223
Total, Fair Value 102,485 87,822
Total, Gross Unrealized Losses 2,554 466
Commercial mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 0 22,153
Less than Twelve Months, Gross Unrealized Losses 0 163
Twelve Months or More, Fair Value 0 0
Twelve Months or More, Gross Unrealized Losses 0 0
Total, Fair Value 0 22,153
Total, Gross Unrealized Losses 0 163
Residential mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than Twelve Months, Fair Value 83 3,049
Less than Twelve Months, Gross Unrealized Losses 0 16
Twelve Months or More, Fair Value 0 692
Twelve Months or More, Gross Unrealized Losses 0 8
Total, Fair Value 83 3,741
Total, Gross Unrealized Losses $ 0 $ 24
v3.20.2
Investments (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Schedule of Investments [Line Items]          
Loans acquired $ 0 $ 0 $ 0 $ 0  
Loans Sold 0 0 0 5,000  
Fixed Maturity Purchased with Credit Deterioration     0    
Accrued Investment Income Write Down 0   0    
Securities sold under agreements to repurchase $ 0   $ 0   $ 0
Commercial mortgage loans, Percentage 100.00%   100.00%   100.00%
Loans on non-accrual status, recognized in interest income $ 0   $ 0    
Loans on non accrual status, do not have allowance for credit losses 0   0    
Commercial Mortgage and other loans purchased with Credit Deterioration     0    
Fixed maturities          
Schedule of Investments [Line Items]          
Gross Unrealized Losses 49,939   49,939   $ 23,843
Gross unrealized losses of twelve months or more concentrated in various sectors 31,191   31,191   20,712
NAIC high or highest quality rating | Fixed maturities          
Schedule of Investments [Line Items]          
Gross Unrealized Losses 31,900   31,900   16,000
NAIC other than high or highest quality rating | Fixed maturities          
Schedule of Investments [Line Items]          
Gross Unrealized Losses $ 18,000   $ 18,000   7,800
California          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 22.00%   22.00%    
Texas          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 14.00%   14.00%    
New York          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 8.00%   8.00%    
Europe          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 9.00%   9.00%    
Mexico          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 3.00%   3.00%    
Australia          
Schedule of Investments [Line Items]          
Commercial mortgage loans, Percentage 2.00%   2.00%    
Other Income | Equity securities          
Schedule of Investments [Line Items]          
Unrealized Gain (Loss) on Investments $ (100) $ (500) $ (800) $ 200  
Fixed maturities          
Schedule of Investments [Line Items]          
Gross unrealized losses of twelve months or more concentrated in various sectors $ 31,200   $ 31,200   $ 20,700
v3.20.2
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Amortized Cost    
Due in one year or less $ 238,403  
Due after one year through five years 730,695  
Due after five years through ten years 958,937  
Due after ten years 3,001,873  
Amortized Cost 5,550,300 $ 5,283,266
Fair Value    
Due in one year or less 240,471  
Due after one year through five years 744,717  
Due after five years through ten years 998,183  
Due after ten years 3,465,247  
Fair Value 6,106,322 5,681,970
Asset-backed securities    
Amortized Cost    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost 122,786  
Fair Value    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 120,890  
Commercial mortgage-backed securities    
Amortized Cost    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost 437,874  
Fair Value    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 472,524  
Residential mortgage-backed securities    
Amortized Cost    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost 59,732  
Fair Value    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 64,290  
Fixed maturities    
Amortized Cost    
Amortized Cost 5,550,300 5,283,266
Fair Value    
Fair Value 6,106,322 5,681,970
Fixed maturities | Asset-backed securities    
Amortized Cost    
Amortized Cost 122,786 119,602
Fair Value    
Fair Value 120,890 119,936
Fixed maturities | Commercial mortgage-backed securities    
Amortized Cost    
Amortized Cost 437,874 367,848
Fair Value    
Fair Value 472,524 382,916
Fixed maturities | Residential mortgage-backed securities    
Amortized Cost    
Amortized Cost 59,732 60,778
Fair Value    
Fair Value $ 64,290 $ 63,804
v3.20.2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Debt Securities, Available-for-sale [Line Items]        
Proceeds from maturities/prepayments     $ 150,587 $ 179,330
Fixed maturities | Available-for-sale        
Debt Securities, Available-for-sale [Line Items]        
Proceeds from sales $ 5,223 $ 28,231 12,941 53,018
Proceeds from maturities/prepayments 55,968 75,554 137,754 128,429
Gross investment gains from sales and maturities 39 (1,384) 592 (435)
Gross investment losses from sales and maturities (1,663) (1,105) (1,736) (3,075)
OTTI recognized in earnings   $ 0   (3,163)
Write-downs recognized in earnings (77)   (1,022)  
(Addition to) release of allowance for credit losses $ (2,362)   (4,572)  
Non-cash related proceeds     $ 100 $ 2,100
v3.20.2
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities
$ in Thousands
 6 Months Ended
Jun. 30, 2020
USD ($)
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period $ 0
Additions to allowance for credit losses not previously recorded 4,891
Reductions for securities sold during the period (9)
Addition/reductions on securities with previous allowance (310)
Balance, end of period 4,572
US Treasury securities and obligations of U.S. government authorities and agencies  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 0
Reductions for securities sold during the period 0
Addition/reductions on securities with previous allowance 0
Balance, end of period 0
Foreign government bonds  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 0
Reductions for securities sold during the period 0
Addition/reductions on securities with previous allowance 0
Balance, end of period 0
U.S. and Foreign Corporate Securities  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 4,891
Reductions for securities sold during the period (9)
Addition/reductions on securities with previous allowance (310)
Balance, end of period 4,572
Asset-backed securities  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 0
Reductions for securities sold during the period 0
Addition/reductions on securities with previous allowance 0
Balance, end of period 0
Commercial mortgage-backed securities  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 0
Reductions for securities sold during the period 0
Addition/reductions on securities with previous allowance 0
Balance, end of period 0
Residential mortgage-backed securities  
Debt Securities, Available-for-sale [Line Items]  
Balance, beginning of period 0
Additions to allowance for credit losses not previously recorded 0
Reductions for securities sold during the period 0
Addition/reductions on securities with previous allowance 0
Balance, end of period $ 0
v3.20.2
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 1,202,191 $ 1,241,653
Commercial mortgage loans, Percentage 100.00% 100.00%
Allowance for Credit Losses $ (4,559) $ (1,768)
Total net other loans 927 0
Other loans 927 0
Allowance for credit losses, other loans 0 0
Total commercial mortgage and other loans 1,198,559 1,239,885
Commercial Mortgage and Agricultural Loans    
Commercial Mortgage and Other Loans [Line Items]    
Total net other loans 1,197,632 1,239,885
Other collateralized loans    
Commercial Mortgage and Other Loans [Line Items]    
Other loans 927 0
Apartments and multi-family    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 356,713 $ 355,175
Commercial mortgage loans, Percentage 29.70% 28.60%
Hospitality    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 33,673 $ 31,449
Commercial mortgage loans, Percentage 2.80% 2.50%
Industrial    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 310,332 $ 299,803
Commercial mortgage loans, Percentage 25.80% 24.10%
Office    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 189,770 $ 205,498
Commercial mortgage loans, Percentage 15.80% 16.60%
Other    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 139,624 $ 136,841
Commercial mortgage loans, Percentage 11.60% 11.00%
Retail    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 151,200 $ 190,690
Commercial mortgage loans, Percentage 12.60% 15.40%
Commercial mortgage loans    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 1,181,312 $ 1,219,456
Commercial mortgage loans, Percentage 98.30% 98.20%
Agricultural property loans    
Commercial Mortgage and Other Loans [Line Items]    
Commercial mortgage and agricultural property loans by property type $ 20,879 $ 22,197
Commercial mortgage loans, Percentage 1.70% 1.80%
v3.20.2
Investments (Allowance for Credit Losses) (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]    
Balance, beginning of year $ 1,768 $ 2,065
Cumulative effect of adoption of ASU 2016-13 2,487  
Addition to (release of) allowance for credit losses   (297)
Addition to (release of) allowance for expected losses 304  
Total ending balance 4,559 1,768
Commercial Mortgage Loans    
Allowance for Loan and Lease Losses [Roll Forward]    
Balance, beginning of year 1,743 2,026
Cumulative effect of adoption of ASU 2016-13 2,495  
Addition to (release of) allowance for credit losses   (283)
Addition to (release of) allowance for expected losses 311  
Total ending balance 4,549 1,743
Agricultural Property Loans    
Allowance for Loan and Lease Losses [Roll Forward]    
Balance, beginning of year 25 39
Cumulative effect of adoption of ASU 2016-13 (8)  
Addition to (release of) allowance for credit losses   (14)
Addition to (release of) allowance for expected losses (7)  
Total ending balance 10 25
Other collateralized loans    
Allowance for Loan and Lease Losses [Roll Forward]    
Balance, beginning of year 0 0
Cumulative effect of adoption of ASU 2016-13 0  
Addition to (release of) allowance for credit losses   0
Addition to (release of) allowance for expected losses 0  
Total ending balance $ 0 $ 0
v3.20.2
Investments (Loan-to-value ratios) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 $ 24,491  
2019 168,637  
2018 197,241  
2017 176,916  
2016 263,879  
Prior 350,148  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 1,181,312  
Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 6,486  
2016 0  
Prior 14,393  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 20,879  
Commercial Mortgage and Agricultural Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 24,491  
2019 168,637  
2018 197,241  
2017 183,402  
2016 263,879  
Prior 364,541  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 1,202,191  
0%-59.99% | Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 57,680  
2018 35,787  
2017 90,979  
2016 164,124  
Prior 256,759  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 605,329  
0%-59.99% | Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 6,486  
2016 0  
Prior 14,393  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 20,879  
0%-59.99% | Commercial Mortgage and Agricultural Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 57,680  
2018 35,787  
2017 97,465  
2016 164,124  
Prior 271,152  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 626,208  
60%-69.99% | Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 16,864  
2019 65,000  
2018 80,324  
2017 53,111  
2016 90,127  
Prior 91,606  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 397,032  
60%-69.99% | Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 0  
2016 0  
Prior 0  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 0  
60%-69.99% | Commercial Mortgage and Agricultural Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 16,864  
2019 65,000  
2018 80,324  
2017 53,111  
2016 90,127  
Prior 91,606  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 397,032  
70%-79.99% | Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 7,627  
2019 45,957  
2018 81,130  
2017 32,826  
2016 9,628  
Prior 1,561  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 178,729  
70%-79.99% | Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 0  
2016 0  
Prior 0  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 0  
70%-79.99% | Commercial Mortgage and Agricultural Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 7,627  
2019 45,957  
2018 81,130  
2017 32,826  
2016 9,628  
Prior 1,561  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 178,729  
80% or greater | Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 0  
2016 0  
Prior 222  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 222  
80% or greater | Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 0  
2016 0  
Prior 0  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 0  
80% or greater | Commercial Mortgage and Agricultural Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
2020 0  
2019 0  
2018 0  
2017 0  
2016 0  
Prior 222  
Revolving Loans 0  
Recording investment gross of allowance for credit losses 222  
Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Recording investment gross of allowance for credit losses 1,181,312 $ 1,219,456
Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Recording investment gross of allowance for credit losses $ 20,879 $ 22,197
v3.20.2
Investments (Debt Service Coverage Ratio) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Commercial mortgage loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 1,181,312 $ 1,219,456
Commercial mortgage loans | ≥ 1.2X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 1,117,808 1,159,411
Commercial mortgage loans | 1.0X to 1.2X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 62,866 58,948
Commercial mortgage loans | Less than 1.0X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 638 1,097
Agricultural Property Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 20,879 22,197
Agricultural Property Loans | ≥ 1.2X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 20,064 21,382
Agricultural Property Loans | 1.0X to 1.2X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss 0 0
Agricultural Property Loans | Less than 1.0X    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing Receivable, before Allowance for Credit Loss $ 815 $ 815
v3.20.2
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Financing Receivable, Past Due [Line Items]    
Current $ 1,203,118 $ 1,241,653
Total Loans 1,203,118 1,241,653
Non-Accrual Status 0 0
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
90 Days or More Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Commercial mortgage loans    
Financing Receivable, Past Due [Line Items]    
Current 1,181,312 1,219,456
Total Loans 1,181,312 1,219,456
Non-Accrual Status 0 0
Commercial mortgage loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Commercial mortgage loans | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Commercial mortgage loans | 90 Days or More Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Agricultural property loans    
Financing Receivable, Past Due [Line Items]    
Current 20,879 22,197
Total Loans 20,879 22,197
Non-Accrual Status 0 0
Agricultural property loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Agricultural property loans | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Agricultural property loans | 90 Days or More Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0 0
Other collateralized loans    
Financing Receivable, Past Due [Line Items]    
Current 927  
Total Loans 927  
Non-Accrual Status 0  
Other collateralized loans | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0  
Other collateralized loans | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0  
Other collateralized loans | 90 Days or More Past Due    
Financing Receivable, Past Due [Line Items]    
Past Due 0  
Loans | 90 Days or More Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Interest $ 0 $ 0
v3.20.2
Investments (Other Invested Assets) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Other Invested Assets [Line Items]    
Other invested assets $ 468,005 $ 429,558
Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 387,648 370,437
Company’s investment in separate accounts    
Other Invested Assets [Line Items]    
Other invested assets 44,685 46,573
Derivative Instruments    
Other Invested Assets [Line Items]    
Other invested assets 35,672 12,548
Equity Method | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 316,770 295,529
Equity Method | Private equity | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 203,599 189,095
Equity Method | Hedge funds | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 68,132 64,002
Equity Method | Real estate-related | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 45,039 42,432
Fair Value | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 70,878 74,908
Fair Value | Private equity | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 58,562 62,639
Fair Value | Hedge funds | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets 503 562
Fair Value | Real estate-related | Total LPs/LLCs    
Other Invested Assets [Line Items]    
Other invested assets $ 11,813 $ 11,707
v3.20.2
Investments (Accrued Investment Income) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Net Investment Income    
Accrued investment income $ 89,439 $ 89,448
Fixed maturities    
Net Investment Income    
Accrued investment income 50,396  
Equity securities    
Net Investment Income    
Accrued investment income 1  
Commercial mortgage and other loans    
Net Investment Income    
Accrued investment income 3,563  
Policy loans    
Net Investment Income    
Accrued investment income 35,388  
Short-term investments and cash equivalents    
Net Investment Income    
Accrued investment income $ 91  
v3.20.2
Investments (Net Investment Income) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income $ 88,077 $ 110,017 $ 172,353 $ 207,724
Less: investment expenses (4,615) (4,455) (9,310) (8,912)
Net investment income 83,462 105,562 163,043 198,812
Equity securities        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 103 221 205 442
Commercial mortgage and other loans        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 12,322 13,435 26,098 25,926
Policy loans        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 17,615 16,766 34,926 32,965
Other invested assets        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 2,165 18,060 (1,744) 27,971
Short-term investments and cash equivalents        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 580 1,839 2,612 4,150
Available-for-sale | Fixed maturities        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income 54,897 59,370 109,463 115,636
Trading | Fixed maturities        
Schedule of Investment Income, Reported Amounts, by Category [Line Items]        
Gross investment income $ 395 $ 326 $ 793 $ 634
v3.20.2
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net $ (80,231) $ (52,250) $ 9,664 $ (100,885)
Fixed maturities        
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net (4,063) (2,489) (6,738) (6,673)
Commercial mortgage and other loans        
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net (44) 99 (232) 106
Other invested assets        
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net 5 0 (310) 12
Derivatives        
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net (76,353) (49,846) 17,104 (94,323)
Short-term investments and cash equivalents        
Schedule Of Gain Loss On Investments [Line Items]        
Realized investment gains (losses), net $ 224 $ (14) $ (160) $ (7)
v3.20.2
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments $ 656,099 $ 425,180
Fixed maturities | Available-for-sale | OTTI    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments   1,568
Fixed maturities | Available-for-sale | All other    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments   397,136
Fixed maturities | Available-for-sale | With an allowance    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments (874)  
Fixed maturities | Available-for-sale | Without an allowance    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments 561,468  
Derivatives designated as cash flow hedges    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments 93,867 26,126
Affiliated notes    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments 6,029 4,715
Other investments    
Gain (Loss) on Securities [Line Items]    
Net Unrealized Gains (Losses) on Investments $ (4,391) $ (4,365)
v3.20.2
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities $ 2,700 $ 7,529
Overnight & Continuous    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 2,700 7,529
Up to 30 Days    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 0 0
30 days or greater    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 0 0
U.S. public corporate securities    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 0 5,048
U.S. public corporate securities | Overnight & Continuous    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 0 5,048
U.S. public corporate securities | Up to 30 Days    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 0 0
Foreign public corporate securities    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 2,700 2,481
Foreign public corporate securities | Overnight & Continuous    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities 2,700 2,481
Foreign public corporate securities | Up to 30 Days    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Total cash collateral for loaned securities $ 0 $ 0
v3.20.2
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Derivative [Line Items]    
Assets $ 317,165 $ 251,768
Liabilities (74,351) (97,802)
Derivative, Notional Amount 4,535,457 4,200,893
Derivatives Designated as Hedge Accounting Instruments:    
Derivative [Line Items]    
Assets 98,055 36,551
Liabilities (403) (12,521)
Derivative, Notional Amount 799,428 777,548
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps    
Derivative [Line Items]    
Assets 233 0
Liabilities 0 (50)
Derivative, Notional Amount 3,557 3,615
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps    
Derivative [Line Items]    
Assets 97,822 36,551
Liabilities (403) (12,471)
Derivative, Notional Amount 795,871 773,933
Derivatives Not Qualifying as Hedge Accounting Instruments:    
Derivative [Line Items]    
Assets 219,110 215,217
Liabilities (73,948) (85,281)
Derivative, Notional Amount 3,736,029 3,423,345
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps    
Derivative [Line Items]    
Assets 71,613 33,256
Liabilities (13,849) (4,490)
Derivative, Notional Amount 568,050 569,925
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards    
Derivative [Line Items]    
Assets 40 0
Liabilities (704) (518)
Derivative, Notional Amount 38,421 21,580
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps    
Derivative [Line Items]    
Assets 29 0
Liabilities 0 0
Derivative, Notional Amount 2,313 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps    
Derivative [Line Items]    
Assets 19,336 7,563
Liabilities (14) (1,892)
Derivative, Notional Amount 136,770 151,792
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options    
Derivative [Line Items]    
Assets 128,092 174,398
Liabilities (59,381) (78,381)
Derivative, Notional Amount $ 2,990,475 $ 2,680,048
v3.20.2
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Derivatives Assets    
Gross Amounts of Recognized Financial Instruments $ 317,165 $ 251,765
Gross Amounts Offset in the Consolidated Statement of Financial Position (281,406) (239,220)
Net Amounts Presented in the Consolidated Statement of Financial Position 35,759 12,545
Financial Instruments/Collateral (34,768) (12,545)
Net Amount 991 0
Securities Purchased under Agreements to Resell    
Gross Amounts of Recognized Financial Instruments 139,384 0
Gross Amounts Offset in the Consolidated Statement of Financial Position 0 0
Net Amounts Presented in the Consolidated Statement of Financial Position 139,384 0
Financial Instruments/Collateral (139,384) 0
Net Amount 0 0
Total Assets    
Gross Amounts of Recognized Financial Instruments 456,549 251,765
Gross Amounts Offset in the Consolidated Statement of Financial Position (281,406) (239,220)
Net Amounts Presented in the Consolidated Statement of Financial Position 175,143 12,545
Financial Instruments/Collateral (174,152) (12,545)
Net Amount 991 0
Derivatives Liabilities    
Gross Amounts of Recognized Financial Instruments 74,351 97,802
Gross Amounts Offset in the Consolidated Statement of Financial Position (74,351) (97,802)
Net Amounts Presented in the Consolidated Statement of Financial Position 0 0
Financial Instruments/Collateral 0 0
Net Amount 0 0
Securities Sold under Agreements to Repurchase    
Gross Amounts of Recognized Financial Instruments 0 0
Gross Amounts Offset in the Consolidated Statement of Financial Position 0 0
Net Amounts Presented in the Consolidated Statement of Financial Position 0 0
Financial Instruments/Collateral 0 0
Net Amount 0 0
Total Liabilities    
Gross Amounts of Recognized Financial Instruments 74,351 97,802
Gross Amounts Offset in the Consolidated Statement of Financial Position (74,351) (97,802)
Net Amounts Presented in the Consolidated Statement of Financial Position 0 0
Financial Instruments/Collateral 0 0
Net Amount $ 0 $ 0
v3.20.2
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net $ (76,353) $ (49,846) $ 17,104 $ (94,323)
Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 2,746 2,211 5,372 4,280
Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (3,697) 1,486 5,189 (29)
AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (30,329) 13,316 67,741 6,662
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 387 (88) 727 (248)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 2,746 2,211 5,372 4,280
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (3,687) 1,482 5,141 (34)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (30,329) 13,316 67,741 6,662
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0   (44)  
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 1   (2)  
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0   0  
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 27   327  
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 387 (88) 771 (248)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 2,745 2,211 5,374 4,280
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (3,687) 1,482 5,141 (34)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (30,356) 13,316 67,414 6,662
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (76,740) (49,758) 16,377 (94,075)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (10) 4 48 5
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (796) 7,682 29,709 15,297
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (444) 343 1,027 323
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (4,662) 1,673 14,671 3,103
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (10) 4 48 5
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (225) 0 (225) (1)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 42,826 12,666 (32,118) 41,529
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net (113,439) (72,122) 3,313 (154,326)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net 0 0 0 0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, gain (loss) on derivatives, net $ 0 $ 0 $ 0 $ 0
v3.20.2
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
USD ($)
Cash flow hedgers in AOCI  
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]  
Balance, beginning $ 26,126
Amount Recorded in AOCI 78,981
Amounts reclassified into current period earnings (11,240)
Balance, ending 93,867
Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]  
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]  
Amount Recorded in AOCI 281
Amounts reclassified into current period earnings 46
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]  
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]  
Amount Recorded in AOCI 78,700
Amounts reclassified into current period earnings $ (11,286)
v3.20.2
Derivative Instruments (Narrative) (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Derivative [Line Items]    
Credit Derivative, Purchased Credit Protection $ 2.0 $ 0.0
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months 9.0  
Credit Derivative Protection Purchased Fair Value Asset (Liability) 0.0 0.0
Future Policy Benefits    
Derivative [Line Items]    
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net (19,014.0) (8,530.0)
Reinsurance Recoverables    
Derivative [Line Items]    
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net 19,028.0 8,540.0
Policyholders' account balances    
Derivative [Line Items]    
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net $ (1,045.0) $ (962.0)
v3.20.2
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale $ 6,106,322 $ 5,681,970
Fixed maturities, trading 56,707 59,964
Equity securities 9,559 10,494
Other invested assets 468,005 429,558
Reinsurance recoverables 52,917,099 [1] 40,710,159
Receivables from parent and affiliates 297,911 271,981
Separate account assets 130,903,117 138,387,772
TOTAL ASSETS 196,862,729 191,158,387
Future policy benefits 37,371,656 [1] 25,258,673
Payables to parent and affiliates 88,384 216,842
Total liabilities 193,272,217 188,143,360
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 19,014,000 8,530,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset 236,000 611,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability 19,250,000 9,141,000
Fair Value, Measurements, Recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 6,106,322 5,681,970
Fixed maturities, trading 56,707 59,964
Equity securities 9,559 10,494
Short-term Investments 101,967 0
Cash equivalents 545,592 547,642
Other invested assets 35,759 12,548
Reinsurance recoverables 19,028,138 8,539,671
Receivables from parent and affiliates 120,138 122,566
Subtotal excluding separate account assets 26,004,182 14,974,855
Separate account assets 126,304,403 133,625,669
TOTAL ASSETS 152,308,585 148,600,524
Future policy benefits 19,014,066 8,529,566
Policyholders’ account balances 1,045,483 962,351
Payables to parent and affiliates 0 0
Total liabilities 20,059,549 9,491,917
Asset Netting (281,406) (239,220)
Liability Netting (74,351) (97,802)
Netting (207,100) (141,400)
Fair Value, Measurements, Recurring | Other invested assets    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Asset Netting (281,406) (239,220)
Fair Value, Measurements, Recurring | Payables to parent and affiliates    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Liability Netting (74,351) (97,802)
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 128,442 86,468
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 512,875 497,827
Fair Value, Measurements, Recurring | Foreign government bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 223,283 222,826
Fair Value, Measurements, Recurring | U.S. corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 2,394,774 2,141,327
Fair Value, Measurements, Recurring | U.S. corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 962,753 929,772
Fair Value, Measurements, Recurring | Foreign corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 251,658 278,616
Fair Value, Measurements, Recurring | Foreign corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 974,833 958,478
Fair Value, Measurements, Recurring | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 120,890 119,936
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 472,524 382,916
Fair Value, Measurements, Recurring | Residential mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 64,290 63,804
Fair Value, Measurements, Recurring | Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fixed maturities, trading 0 0
Equity securities 108 131
Short-term Investments 99,980 0
Cash equivalents 364,949 0
Other invested assets 0 0
Reinsurance recoverables 0 0
Receivables from parent and affiliates 0 0
Subtotal excluding separate account assets 465,037 131
Separate account assets 0 0
TOTAL ASSETS 465,037 131
Future policy benefits 0 0
Policyholders’ account balances 0 0
Payables to parent and affiliates 0 0
Total liabilities 0 0
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 5,902,890 5,591,052
Fixed maturities, trading 56,063 59,296
Equity securities 301 465
Short-term Investments 1,987 0
Cash equivalents 180,643 547,642
Other invested assets 317,165 251,764
Reinsurance recoverables 0 0
Receivables from parent and affiliates 120,138 119,431
Subtotal excluding separate account assets 6,579,187 6,569,650
Separate account assets 126,304,403 133,625,669
TOTAL ASSETS 132,883,590 140,195,319
Future policy benefits 0 0
Policyholders’ account balances 0 0
Payables to parent and affiliates 74,351 97,802
Total liabilities 74,351 97,802
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 83,650 47,797
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 512,875 497,827
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 223,122 222,663
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 2,394,770 2,141,324
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 926,773 893,943
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 242,461 278,435
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 863,042 944,408
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 119,383 117,935
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 472,524 382,916
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 64,290 63,804
Fair Value, Measurements, Recurring | Level 3    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 203,432 90,918
Fixed maturities, trading 644 668
Equity securities 9,150 9,898
Short-term Investments 0 0
Cash equivalents 0 0
Other invested assets 0 4
Reinsurance recoverables 19,028,138 8,539,671
Receivables from parent and affiliates 0 3,135
Subtotal excluding separate account assets 19,241,364 8,644,294
Separate account assets 0 0
TOTAL ASSETS 19,241,364 8,644,294
Future policy benefits 19,014,066 8,529,566
Policyholders’ account balances 1,045,483 962,351
Payables to parent and affiliates 0 0
Total liabilities 20,059,549 9,491,917
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 44,792 38,671
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 161 163
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 4 3
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 35,980 35,829
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 9,197 181
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 111,791 14,070
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 1,507 2,001
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fixed maturities, available-for-sale 0 0
Other invested assets    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair value investment measured at NAV per share 71,000 75,000
Separate Account Assets    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Fair value investment measured at NAV per share $ 4,599,000 $ 4,762,000
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Corporate securities $ 6,212 $ 6,360
Future policy benefits 37,371,656 [1] 25,258,673
Fair Value, Measurements, Recurring    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Future policy benefits 19,014,066 8,529,566
Policyholders’ account balances $ 1,045,483 962,351
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 $ 19,014,066 8,529,566
Policyholders’ account balances $ 1,045,483 $ 962,351
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 0.17% 0.10%
Utilization rate 39.00% 43.00%
Withdrawal rate (greater than maximum range) 76.00% 78.00%
Mortality rate 0.00% 0.00%
Equity volatility curve 18.00% 13.00%
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 0.17% 0.10%
Mortality rate 0.00% 0.00%
Equity volatility curve 18.00% 10.00%
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Discount Rate 1.44% 5.24%
Level 3 | Internal | Minimum | Market comparables | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
EBITDA   5.7
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Lapse rate 20.00% 18.00%
Spread over LIBOR 1.69% 1.23%
Utilization rate 96.00% 97.00%
Withdrawal rate (greater than maximum range) 100.00% 100.00%
Mortality rate 15.00% 15.00%
Equity volatility curve 29.00% 23.00%
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Lapse rate 6.00% 6.00%
Spread over LIBOR 1.69% 1.23%
Mortality rate 24.00% 24.00%
Equity volatility curve 35.00% 23.00%
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Discount Rate 20.73% 17.47%
Level 3 | Internal | Maximum | Market comparables | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
EBITDA   5.7
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Discount Rate 3.93% 8.25%
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
EBITDA   5.7
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Future policy benefits $ 19,014,066 $ 8,529,566
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Policyholders’ account balances 1,045,483 962,351
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Corporate securities 134,414 27,816
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables    
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]    
Reinsurance recoverables $ 19,028,138 $ 8,539,671
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Equity securities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period $ 9,196 $ 15,991 $ 9,898 $ 15,997
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Other 0 0 0 0
Transfers into Level 3 0 0 0 0
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 9,150 17,105 9,150 17,105
Total gains (losses) (realized/unrealized):        
Included in earnings (46) 1,114 (748) 1,108
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (46) 1,114 (748) 1,108
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 (46) 1,114 (748) 1,108
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (46) 1,114 (748) 1,108
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  
Equity securities | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Other invested assets        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 4 4 4 4
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Other 0 0 0 0
Transfers into Level 3 0 0 0 0
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 0 4 0 4
Total gains (losses) (realized/unrealized):        
Included in earnings (4) 0 (4) 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (4) 0 (4) 0
Other invested assets | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings (4) 0 (4) 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (4) 0 (4) 0
Other invested assets | Other income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Other invested assets | Included in other comprehensive income (loss)        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0   0  
Other invested assets | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Short-term investments        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 0 0 0 0
Purchases 0 463 0 463
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 (369) 0 (369)
Other 0 0 0 0
Transfers into Level 3 0 0 0 0
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 0 94 0 94
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Short-term investments | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Short-term investments | Other income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Short-term investments | Included in other comprehensive income (loss)        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0   0  
Short-term investments | 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 20,214,824 6,468,704 8,539,671 5,600,008
Purchases 270,556 244,013 537,507 479,391
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 19,028,138 8,485,905 19,028,138 8,485,905
Total gains (losses) (realized/unrealized):        
Included in earnings (1,457,242) 1,773,188 9,950,960 2,406,506
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (1,317,838) 1,833,209 10,102,377 2,504,883
Reinsurance recoverables | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings (1,457,242) 1,773,188 9,950,960 2,406,506
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (1,317,838) 1,833,209 10,102,377 2,504,883
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  
Reinsurance recoverables | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Receivables from parents and affiliates        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 1,575 7,792 3,135 9,261
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements (1,579) (1,579) (3,158) (3,159)
Other 0 0 0 0
Transfers into Level 3 0 0 0 0
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 0 6,295 0 6,295
Total gains (losses) (realized/unrealized):        
Included in earnings 4 82 23 193
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Receivables from parents and affiliates | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Receivables from parents and affiliates | Other income        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Receivables from parents and affiliates | Included in other comprehensive income (loss)        
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0   0  
Receivables from parents and affiliates | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings 4 82 23 193
Future policy benefits        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period (20,196,457) (6,459,377) (8,529,566) (5,588,840)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances (268,599) (242,067) (533,587) (475,502)
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 (19,014,066) (8,476,541) (19,014,066) (8,476,541)
Total gains (losses) (realized/unrealized):        
Included in earnings 1,450,990 (1,775,097) (9,950,913) (2,412,199)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 1,319,848 (1,836,960) (10,102,329) (2,510,576)
Future policy benefits | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings 1,450,990 (1,775,097) (9,950,913) (2,412,199)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 1,319,848 (1,836,960) (10,102,329) (2,510,576)
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  
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 (900,261) (53,136) (962,351) (13,015)
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances (67,527) (41,906) (123,092) (48,413)
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 (1,045,483) (786,969) (1,045,483) (786,969)
Total gains (losses) (realized/unrealized):        
Included in earnings (77,695) (691,927) 39,960 (725,541)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (82,850) (691,376) 42,260 (724,989)
Policyholders' account balances | Realized investment gains (losses), net        
Total gains (losses) (realized/unrealized):        
Included in earnings (77,695) (691,927) 39,960 (725,541)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (82,850) (691,376) 42,260 (724,989)
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  
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 (2,361) (665) (4,140) (3,067)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings (2,361) 0 (3,695) (3,163)
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 18,807 678 2,031 842
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 18,757   2,413  
Available-for-sale | Fixed maturities | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings 10 264 100 363
Available-for-sale | Fixed maturities | US government        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 42,013 32,188 38,671 29,816
Purchases 2,779 2,204 6,121 4,576
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 44,792 34,392 44,792 34,392
Total gains (losses) (realized/unrealized):        
Included in earnings 0 0 0 0
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 0 0 0 0
Available-for-sale | Fixed maturities | Foreign government bonds        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 152 164 163 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Other 0 0 0 0
Transfers into Level 3 0 0 0 159
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 161 165 161 165
Total gains (losses) (realized/unrealized):        
Included in earnings 9 1 (2) 6
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 9 0 (2) 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 130,682 54,960 50,083 56,588
Purchases 1,471 791 8,664 2,122
Sales 0 (25) (3,680) (53)
Issuances 0 0 0 0
Settlements (3,377) (2,584) (6,335) (9,681)
Other 0 (1) 0 0
Transfers into Level 3 11,758 639 109,772 8,216
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 156,972 54,014 156,972 54,014
Total gains (losses) (realized/unrealized):        
Included in earnings 16,438 234 (1,532) (3,178)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 16,378 0 (807) (3,163)
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 7,438 79,804 2,001 6,556
Purchases 0 0 6,145 0
Sales 0 (1) 0 (2)
Issuances 0 0 0 0
Settlements (304) (177) (528) (4,156)
Other 0 0 0 0
Transfers into Level 3 0 1,700 0 77,660
Transfers out of Level 3 (5,636) (77,071) (5,636) (77,071)
Fair Value, end of period 1,507 4,297 1,507 4,297
Total gains (losses) (realized/unrealized):        
Included in earnings 9 42 (475) 1,310
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 9 0 (473) 0
Trading | Fixed maturities        
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair Value, beginning of period 538 0 668 0
Purchases 0 0 0 0
Sales 0 0 0 0
Issuances 0 0 0 0
Settlements 0 0 0 0
Other 0 0 0 0
Transfers into Level 3 0 751 0 751
Transfers out of Level 3 0 0 0 0
Fair Value, end of period 644 605 644 605
Total gains (losses) (realized/unrealized):        
Included in earnings 106 (146) (24) (146)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 106 (146) (24) (146)
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 106 (146) (24) (146)
Unrealized gains (losses) for assets/liabilities still held:        
Included in earnings 106 (146) (24) (146)
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  
Trading | Fixed maturities | Net investment income        
Total gains (losses) (realized/unrealized):        
Included in earnings $ 0 $ 0 $ 0 $ 0
v3.20.2
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Assets:    
Policy loans $ 1,320,636 $ 1,314,064
Cash and cash equivalents 713,781 563,199
Accrued investment income 89,439 89,448
Reinsurance recoverables 52,917,099 [1] 40,710,159
Receivables from parent and affiliates 297,911 271,981
Liabilities:    
Cash collateral for loaned securities 2,700 7,529
Short-term debt 0 0
Fair Value    
Assets:    
Commercial mortgage and other loans 1,258,891 1,288,625
Policy loans 1,320,636 1,314,064
Cash and cash equivalents 168,189 15,557
Accrued investment income 89,439 89,448
Reinsurance recoverables 222,842 212,368
Receivables from parent and affiliates 177,773 149,415
Other assets 26,064 22,505
Total assets 3,263,834 3,091,982
Liabilities:    
Policyholders’ account balances - investment contracts 1,612,014 1,541,910
Cash collateral for loaned securities 2,700 7,529
Short-term debt 0 2,845
Payables to parent and affiliates 88,384 216,842
Other liabilities 355,439 387,109
Total liabilities 2,058,537 2,156,235
Carrying Amount    
Assets:    
Commercial mortgage and other loans 1,198,559 1,239,885
Policy loans 1,320,636 1,314,064
Cash and cash equivalents 168,189 15,557
Accrued investment income 89,439 89,448
Reinsurance recoverables 214,466 211,813
Receivables from parent and affiliates 177,773 149,415
Other assets 26,064 22,505
Total assets 3,195,126 3,042,687
Liabilities:    
Policyholders’ account balances - investment contracts 1,603,637 1,541,355
Cash collateral for loaned securities 2,700 7,529
Short-term debt 0 2,845
Payables to parent and affiliates 88,384 216,842
Other liabilities 355,439 387,109
Total liabilities 2,050,160 2,155,680
Level 1 | Fair Value    
Assets:    
Commercial mortgage and other loans 0 0
Policy loans 0 0
Cash and cash equivalents 28,805 15,557
Accrued investment income 0 0
Reinsurance recoverables 0 0
Receivables from parent and affiliates 0 0
Other assets 0 0
Total assets 28,805 15,557
Liabilities:    
Policyholders’ account balances - investment contracts 0 0
Cash collateral for loaned securities 0 0
Short-term debt 0 0
Payables to parent and affiliates 0 0
Other liabilities 0 0
Total liabilities 0 0
Level 2 | Fair Value    
Assets:    
Commercial mortgage and other loans 0 0
Policy loans 0 0
Cash and cash equivalents 139,384 0
Accrued investment income 89,439 89,448
Reinsurance recoverables 0 0
Receivables from parent and affiliates 177,773 149,415
Other assets 26,064 22,505
Total assets 432,660 261,368
Liabilities:    
Policyholders’ account balances - investment contracts 1,328,711 1,264,128
Cash collateral for loaned securities 2,700 7,529
Short-term debt 0 2,845
Payables to parent and affiliates 88,384 216,842
Other liabilities 355,439 387,109
Total liabilities 1,775,234 1,878,453
Level 3 | Fair Value    
Assets:    
Commercial mortgage and other loans 1,258,891 1,288,625
Policy loans 1,320,636 1,314,064
Cash and cash equivalents 0 0
Accrued investment income 0 0
Reinsurance recoverables 222,842 212,368
Receivables from parent and affiliates 0 0
Other assets 0 0
Total assets 2,802,369 2,815,057
Liabilities:    
Policyholders’ account balances - investment contracts 283,303 277,782
Cash collateral for loaned securities 0 0
Short-term debt 0 0
Payables to parent and affiliates 0 0
Other liabilities 0 0
Total liabilities $ 283,303 $ 277,782
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2017
Income Tax Disclosure [Abstract]          
Income tax expense (benefit) $ (29,417) $ (34,585) $ (56,518) $ (51,465)  
Effective Income Tax Rate, Percent     (108.84%) (60.03%)  
Federal Statutory Income Tax Rate, Percent     21.00%   35.00%
CARES Act NOL Carryback     $ 30,000    
v3.20.2
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Effects of Reinsurance [Line Items]    
Reinsurance recoverables $ 52,917,099 [1] $ 40,710,159
Policy loans 1,320,636 1,314,064
Deferred policy acquisition costs 2,120,749 [1] 1,855,698
Other assets 439,055 441,543
Future policy benefits 37,371,656 [1] 25,258,673
Other liabilities 1,473,182 [1] 1,390,876
Impacts of Reinsurance    
Effects of Reinsurance [Line Items]    
Reinsurance recoverables 52,917,099 40,710,159
Policy loans (151,049) (142,262)
Deferred policy acquisition costs (6,779,267) (6,989,618)
Deferred sales inducements (471,999) (515,968)
Other assets 257,709 258,427
Policyholders’ account balances 4,873,043 4,934,544
Future policy benefits 4,697,373 4,209,817
Other liabilities 995,122 884,641
Unaffiliated activity    
Effects of Reinsurance [Line Items]    
Reinsurance recoverables 416,400 156,700
Other assets 0 0
Future policy benefits 100 100
Other liabilities $ 46,800 $ 43,100
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables $ 52,917,099 [1] $ 40,710,159
PAR U    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 12,952,267 12,380,683
PALAC    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 21,096,307 11,635,405
PURC    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 5,115,192 4,692,769
PARCC    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 2,557,822 2,627,595
GUL Re    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 2,449,345 2,292,638
PAR Term    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 1,872,568 1,825,594
Prudential Insurance    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 2,848,823 1,764,512
Prudential of Taiwan    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 1,548,740 1,499,685
Term Re    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 1,646,121 1,506,366
DART    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables 412,715 327,235
Unaffiliated    
Effects of Reinsurance [Line Items]    
Total reinsurance recoverables $ 417,199 $ 157,677
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Premiums:        
Direct $ 484,577 $ 476,986 $ 960,063 $ 939,257
Assumed 47 52 95 106
Ceded (462,080) (464,621) (922,743) (912,952)
Net premiums 22,544 12,417 37,415 26,411
Policy charges and fee income:        
Direct 816,817 1,106,725 1,718,259 1,959,920
Assumed 131,579 128,748 264,083 255,707
Ceded (787,311) (1,086,802) (1,681,338) (1,927,767)
Net policy charges and fee income 161,085 148,671 301,004 287,860
Net investment income:        
Direct 84,946 106,949 166,038 201,507
Assumed 394 407 794 803
Ceded (1,878) (1,794) (3,789) (3,498)
Net investment income 83,462 105,562 163,043 198,812
Asset administration fees:        
Direct 84,330 87,951 173,659 171,819
Assumed 0 0 0 0
Ceded (80,028) (83,990) (164,969) (164,201)
Net asset administration fees 4,302 3,961 8,690 7,618
Other income:        
Direct 12,682 20,030 21,288 39,828
Assumed 408 (1,271) (29) (1,471)
Ceded 640 (39) 125 (62)
Amortization of reinsurance income 1,162 (3,722) 2,344 (2,340)
Net other income 14,892 14,998 23,728 35,955
Realized investment gains (losses), net:        
Direct 1,408,425 (1,783,941) (9,900,749) (2,419,452)
Assumed 0 0 0 0
Ceded (1,488,656) 1,731,691 9,910,413 2,318,567
Realized investment gains (losses), net (80,231) (52,250) 9,664 (100,885)
Policyholders’ benefits (including change in reserves):        
Direct 744,620 1,150,985 1,811,718 1,797,296
Assumed 208,315 282,961 569,770 494,711
Ceded (866,682) (1,387,655) (2,209,312) (2,206,238)
Net policyholders’ benefits (including change in reserves) 86,253 46,291 172,176 85,769
Interest credited to policyholders’ account balances:        
Direct 92,457 118,420 271,752 213,111
Assumed 34,020 34,512 68,256 65,169
Ceded (60,060) (102,222) (218,545) (183,373)
Net interest credited to policyholders’ account balances 66,417 50,710 121,463 94,907
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (139,336) (573,978) (882,247) (917,993)
Unaffiliated activity        
Premiums:        
Assumed 100 0 100 100
Ceded (2,600) (100) (5,100) (200)
Policy charges and fee income:        
Ceded (11,000) (7,000) (21,000) (12,000)
Other income:        
Assumed (400) (1,000) 0 (2,000)
Realized investment gains (losses), net:        
Ceded (29,000) 42,000 227,000 56,000
Policyholders’ benefits (including change in reserves):        
Assumed 500 0 600 (200)
Ceded $ (19,000) $ (2,000) $ (24,000) $ (4,000)
v3.20.2
Reinsurance (Life Insurance In Force) (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 30, 2019
Reinsurance Disclosures [Abstract]    
Direct gross life insurance face amount in force $ 1,020,870,402 $ 966,542,451
Assumed gross life insurance face amount in force 39,361,931 40,382,452
Reinsurance ceded (976,357,109) (925,430,727)
Net life insurance face amount in force $ 83,875,224 $ 81,494,176
v3.20.2
Reinsurance (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 21 Months Ended 24 Months Ended 36 Months Ended 48 Months Ended
Jul. 01, 2019
Dec. 31, 2013
Jul. 01, 2012
Dec. 31, 2010
Dec. 31, 2009
Jan. 31, 2001
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2016
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2016
Dec. 31, 2013
Dec. 31, 2017
Dec. 31, 2013
Effects of Reinsurance [Line Items]                                  
Ceded Premiums             $ (462,080) $ (464,621) $ (922,743) $ (912,952)              
Reinsurance recoverables             52,917,099 [1]   52,917,099 [1]     $ 40,710,159 $ 40,710,159        
PAR U                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             12,952,267   12,952,267     12,380,683 12,380,683        
PURC                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             5,115,192   5,115,192     4,692,769 4,692,769        
PARCC                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             2,557,822   2,557,822     2,627,595 2,627,595        
GUL Re                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             2,449,345   2,449,345     2,292,638 2,292,638        
PAR Term                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             1,872,568   1,872,568     1,825,594 1,825,594        
Prudential of Taiwan                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             1,548,740   1,548,740     1,499,685 1,499,685        
Term Re                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             1,646,121   1,646,121     1,506,366 1,506,366        
Prudential Insurance                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             2,848,823   2,848,823     1,764,512 1,764,512        
DART                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             412,715   412,715     $ 327,235 $ 327,235        
Union Hamilton Reinsurance, Ltd.                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance recoverables             $ 2,900,000   $ 2,900,000                
Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage                     50.00%            
Affiliated Entity | PAR U                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage     95.00% 70.00%                          
Affiliated Entity | PURC                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage                           95.00% 70.00%    
Affiliated Entity | PARCC                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage 100.00%       90.00%                        
Ceded Premiums $ (476,000)                                
Ceded Expenses $ (409,000)                                
Affiliated Entity | GUL Re                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage   30.00%                     95.00%        
Affiliated Entity | PAR Term                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage 100.00%                               95.00%
Ceded Premiums $ (150,000)                                
Ceded Expenses $ (115,000)                                
Affiliated Entity | Prudential of Taiwan                                  
Effects of Reinsurance [Line Items]                                  
Related Party Transaction, Term           2 years                      
Affiliated Entity | Term Re                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage                               95.00%  
Affiliated Entity | Prudential Insurance                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage                 100.00%                
Affiliated Entity | DART                                  
Effects of Reinsurance [Line Items]                                  
Reinsurance Retention Policy, Reinsured Risk, Percentage                       95.00%          
[1] June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details.
v3.20.2
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     $ 281,442  
Income tax benefit (expense) $ (68,391) $ (38,512) (40,104) $ (72,145)
Ending Balance 428,477   428,477  
Foreign Currency Translation Adjustments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     (7,917) (17,448)
Change in OCI before reclassifications     (3,888) 7,007
Amounts reclassified from AOCI     0 0
Income tax benefit (expense)     12 2
Ending Balance (11,793) (10,439) (11,793) (10,439)
Net unrealized investment gains (losses)        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     289,359 (10,848)
Change in OCI before reclassifications     195,529 332,927
Amounts reclassified from AOCI     (4,502) 10,672
Income tax benefit (expense)     (40,116) (72,147)
Ending Balance 440,270 260,604 440,270 260,604
Accumulated Other Comprehensive Income (Loss)        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     281,442 (28,296)
Change in OCI before reclassifications     191,641 339,934
Amounts reclassified from AOCI     (4,502) 10,672
Income tax benefit (expense)     (40,104) (72,145)
Ending Balance 428,477 250,165 428,477 250,165
Cash flow hedges | Net unrealized investment gains (losses)        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning Balance     26,000 (18,000)
Ending Balance $ 94,000 $ 29,000 $ 94,000 $ 29,000
v3.20.2
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Net unrealized investment gains (losses)        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amounts reclassified from AOCI     $ (4,502) $ 10,672
Total reclassifications for the period        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amounts reclassified from AOCI     (4,502) 10,672
Amounts reclassified from AOCI | Net unrealized investment gains (losses)        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amounts reclassified from AOCI $ (4,616) $ (6,882) 4,502 (10,672)
Amounts reclassified from AOCI | Total reclassifications for the period        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amounts reclassified from AOCI (4,616) (6,882) 4,502 (10,672)
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net unrealized investment gains (losses) (4,063) (2,489) (6,738) (6,673)
Amounts reclassified from AOCI | Currency/Interest rate | Cash flow hedges        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Net unrealized investment gains (losses) $ (553) $ (4,393) $ 11,240 $ (3,999)
v3.20.2
Equity (Allowance for Credit Losses Net Unrealized Investment Gains (Losses) in AOCI) (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance $ 281,442
Ending Balance 428,477
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 289,359
Ending Balance 440,270
With an Allowance | Net Unrealized Gains (Losses) on Investments  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 0
Net investment gains (losses) on investments arising during the period 53
Reclassification adjustment for (gains) losses included in net income 0
Increase (decrease) due to non-credit related losses recognized in AOCI during the period (927)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 0
Ending Balance (874)
With an Allowance | Deferred Policy Acquisition Costs and Other Costs  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 0
Net investment gains (losses) on investments arising during the period 0
Reclassification adjustment for (gains) losses included in net income 0
Increase (decrease) due to non-credit related losses recognized in AOCI during the period 0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 133
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 0
Ending Balance 133
With an Allowance | Future Policy Benefits and Policyholders’ Account Balances  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 0
Net investment gains (losses) on investments arising during the period 0
Reclassification adjustment for (gains) losses included in net income 0
Increase (decrease) due to non-credit related losses recognized in AOCI during the period 0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 59
Ending Balance 59
With an Allowance | Deferred Income Tax (Liability) Benefit  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 0
Net investment gains (losses) on investments arising during the period (11)
Reclassification adjustment for (gains) losses included in net income 0
Increase (decrease) due to non-credit related losses recognized in AOCI during the period 195
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs (28)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances (12)
Ending Balance 144
With an Allowance | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 0
Net investment gains (losses) on investments arising during the period 42
Reclassification adjustment for (gains) losses included in net income 0
Increase (decrease) due to non-credit related losses recognized in AOCI during the period (732)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 105
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 47
Ending Balance $ (538)
v3.20.2
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance $ 281,442
Ending Balance 428,477
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 289,359
Ending Balance 440,270
All Other | Net Unrealized Gains (Losses) on Investments  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 425,180
Net investment gains (losses) on investments arising during the period 235,368
Reclassification adjustment for (gains) losses included in net income (4,502)
Reclassification due to allowance for credit losses recorded during the period 927
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 0
Ending Balance 656,973
All Other | Deferred Policy Acquisition Costs and Other Costs  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 423,227
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 on deferred policy acquisition costs and other costs 475,035
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 0
Ending Balance 898,262
All Other | Future Policy Benefits and Policyholders’ Account Balances  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (482,134)
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 on deferred policy acquisition costs and other costs 0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances (515,119)
Ending Balance (997,253)
All Other | Deferred Income Tax (Liability) Benefit  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance (76,914)
Net investment gains (losses) on investments arising during the period (49,428)
Reclassification adjustment for (gains) losses included in net income 945
Reclassification due to allowance for credit losses recorded during the period (195)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs (99,758)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances 108,176
Ending Balance (117,174)
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)  
AOCI Attributable to Parent, Net of Tax [Roll Forward]  
Beginning Balance 289,359
Net investment gains (losses) on investments arising during the period 185,940
Reclassification adjustment for (gains) losses included in net income (3,557)
Reclassification due to allowance for credit losses recorded during the period 732
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 375,277
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances (406,943)
Ending Balance $ 440,808
v3.20.2
Related Party Transactions (Narrative) (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
policy
Jun. 30, 2019
USD ($)
Related Party Transaction [Line Items]          
Commissions and fees $ 161,085,000   $ 148,671,000 $ 301,004,000 $ 287,860,000
Other invested assets 468,005,000 $ 429,558,000   468,005,000  
Net investment income 83,462,000   105,562,000 163,043,000 198,812,000
Fee income from revenue sharing agreement 4,302,000   3,961,000 8,690,000 7,618,000
Debt Outstanding 0 0   0  
Dividends   250,000,000   0  
Prudential Insurance          
Related Party Transaction [Line Items]          
Contributed Capital 325,000,000 6,000,000      
Prudential Insurance          
Related Party Transaction [Line Items]          
Stock option program plan expense 400,000   600,000 500,000 700,000
Deferred compensation program expense 100,000   1,200,000 3,000,000.0 3,900,000
Pension plan expense 4,000,000   5,000,000 9,000,000 10,000,000
Welfare plan expense 3,000,000   6,000,000 $ 9,000,000 12,000,000
Defined contribution plan, employer matching contribution, percent (up to)       4.00%  
Defined contribution plan, cost recognized 2,000,000   2,000,000 $ 4,000,000 5,000,000
Number of Corporate Owned Life Insurance policies sold | policy       5  
Prudential Insurance and Prudential Financial          
Related Party Transaction [Line Items]          
Life Insurance, Corporate or Bank Owned, amount 4,207,000,000 4,339,000,000   $ 4,207,000,000  
Fees related to Life Insurance, Corporate or Bank Owned, amount 11,000,000   11,000,000 25,000,000 24,000,000
Maximum amount of mortality risk 3,500,000     3,500,000  
Prudential Financial          
Related Party Transaction [Line Items]          
Company's share of corporate expenses 6,000,000   20,000,000 $ 25,000,000 37,000,000
Number of Corporate Owned Life Insurance policies sold | policy       1  
Affiliated Entity          
Related Party Transaction [Line Items]          
Accrued interest receivable related to long-tern notes receivable 1,000,000 1,000,000   $ 1,000,000  
Revenues related to long-term notes receivable 1,000,000   1,000,000 2,000,000 2,000,000
Line of credit facility, maximum borrowing capacity 2,200,000,000     2,200,000,000  
Interest expense related to loans payable 100,000   600,000 600,000 800,000
Affiliated Entity | PAD          
Related Party Transaction [Line Items]          
Commissions and fees 129,000,000   197,000,000 297,000,000 376,000,000
Affiliated Entity | ASTISI and PGIM Investments          
Related Party Transaction [Line Items]          
Fee income from revenue sharing agreement 81,000,000   84,000,000 166,000,000 165,000,000
Affiliated Entity | PGIM Investments          
Related Party Transaction [Line Items]          
Fee income from revenue sharing agreement 3,000,000   3,000,000 5,000,000 5,000,000
Affiliated Entity | PGIM          
Related Party Transaction [Line Items]          
Net investment income 4,000,000   3,000,000 7,000,000 7,000,000
Prudential Financial Joint Ventures          
Related Party Transaction [Line Items]          
Other invested assets 97,000,000 $ 96,000,000   97,000,000  
Net investment income $ 8,000,000   $ 2,000,000 $ 2,000,000 $ 7,000,000
v3.20.2
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]    
Total notes receivable - affiliated $ 120,139 $ 122,566
U.S. Dollar fixed rate notes    
Related Party Transaction [Line Items]    
Total notes receivable - affiliated $ 120,139 $ 122,566
U.S. Dollar fixed rate notes | Minimum    
Related Party Transaction [Line Items]    
Interest Rates 0.00%  
U.S. Dollar fixed rate notes | Maximum    
Related Party Transaction [Line Items]    
Interest Rates 14.85%  
v3.20.2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Related Party Transaction [Line Items]        
Realized investment gains (losses) $ (80,231) $ (52,250) $ 9,664 $ (100,885)
Affiliated Entity | Prudential Insurance February 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 4,995   4,995  
Book Value 5,000   5,000  
APIC, Net of Tax Increase/(Decrease) (4)   (4)  
Realized investment gains (losses)     0  
Affiliated Entity | PALAC April 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 14,525   14,525  
Book Value 13,466   13,466  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     1,059  
Affiliated Entity | Term Re September 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 9,178   9,178  
Book Value 8,135   8,135  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     1,043  
Affiliated Entity | PURC September 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 8,399   8,399  
Book Value 7,455   7,455  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     944  
Affiliated Entity | PARU September 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 31,466   31,466  
Book Value 28,146   28,146  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     3,320  
Affiliated Entity | Prudential Insurance September 2019 - Sale        
Related Party Transaction [Line Items]        
Fair Value 10,702   10,702  
Book Value 9,254   9,254  
APIC, Net of Tax Increase/(Decrease) 1,144   1,144  
Realized investment gains (losses)     0  
Affiliated Entity | PURC December 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 7,767   7,767  
Book Value 6,002   6,002  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     1,765  
Affiliated Entity | PAR Term December 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 27,330   27,330  
Book Value 24,739   24,739  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     2,591  
Affiliated Entity | PURC December 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 93,830   93,830  
Book Value 75,586   75,586  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     18,244  
Affiliated Entity | PURC December 2019 Sale        
Related Party Transaction [Line Items]        
Fair Value 78,884   78,884  
Book Value 68,645   68,645  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     10,239  
Affiliated Entity | Prudential Insurance December 2019 Purchase        
Related Party Transaction [Line Items]        
Fair Value 9,000   9,000  
Book Value 9,000   9,000  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     0  
Affiliated Entity | Prudential Insurance March 2020 - Purchase        
Related Party Transaction [Line Items]        
Fair Value 1,390   1,390  
Book Value 1,390   1,390  
APIC, Net of Tax Increase/(Decrease) 0   0  
Realized investment gains (losses)     0  
Affiliated Entity | Prudential Insurance April 2020 - Purchase        
Related Party Transaction [Line Items]        
Fair Value 61,953   61,953  
Book Value 59,659   59,659  
APIC, Net of Tax Increase/(Decrease) (1,812)   (1,812)  
Realized investment gains (losses)     0  
Affiliated Entity | Prudential Insurance April 2020 - Purchase        
Related Party Transaction [Line Items]        
Fair Value 3,485   3,485  
Book Value 3,320   3,320  
APIC, Net of Tax Increase/(Decrease) $ (130)   (130)  
Realized investment gains (losses)     $ 0  
v3.20.2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Jul. 31, 2017
Commitments and Contingent Liabilities [Line Items]        
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) $ 100.0 $ 100.0    
Indonesia        
Commitments and Contingent Liabilities [Line Items]        
Joint Venture with CT Corp, Ownership Percentage       49.00%
Commitments | Commercial Mortgage Loans        
Commitments and Contingent Liabilities [Line Items]        
Total outstanding mortgage loan commitments 37.0 37.0 $ 26.0  
Allowance for credit losses 0.0 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) 357.0 357.0 $ 261.0  
Purchase Commitment        
Commitments and Contingent Liabilities [Line Items]        
Change in allowance for credit losses $ 0.0 $ 0.0    
v3.20.2
Revision to Prior Year Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Policy charges and fee income $ (39,490) $ (32,885) [1]
Cash flows from (used in) operating activities (178,607) 61,866
CASH FLOWS FROM FINANCING ACTIVITIES:    
Policyholders' account withdrawals (1,653,848) (1,777,827) [1]
Other, net (3,100) (37,825) [1]
Cash flows from (used in) financing activities $ 640,548 343,812
As Previously Reported    
CASH FLOWS FROM OPERATING ACTIVITIES:    
Policy charges and fee income   (135,809)
Cash flows from (used in) operating activities   (41,058)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Policyholders' account withdrawals   (1,712,728)
Other, net   0
Cash flows from (used in) financing activities   446,736
Revision    
CASH FLOWS FROM OPERATING ACTIVITIES:    
Policy charges and fee income   102,924
Cash flows from (used in) operating activities   102,924
CASH FLOWS FROM FINANCING ACTIVITIES:    
Policyholders' account withdrawals   (65,099)
Other, net   (37,825)
Cash flows from (used in) financing activities   $ (102,924)
[1] Prior period amounts have been revised to correct an error. See Note 11 for details.