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Fair Values of Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2016
Fair Value Disclosures [Abstract] |
Carrying Amounts and Fair Values of Financial Instruments | The following sets forth a comparison of the carrying amounts and fair values of our financial instruments:
| March 31, 2016 |  | December 31, 2015
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
| (Dollars in thousands)
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Available for sale | $ | 38,410,000 |  |  | $ | 38,410,000 |  |  | $ | 36,421,839 |  |  | $ | 36,421,839 |
Held for investment | 76,672 |  |  | 67,672 |  |  | 76,622 |  |  | 65,377 |
Equity securities, available for sale | 7,813 |  |  | 7,813 |  |  | 7,828 |  |  | 7,828 |
Mortgage loans on real estate | 2,471,435 |  |  | 2,504,371 |  |  | 2,435,257 |  |  | 2,471,864 |
Derivative instruments | 387,469 |  |  | 387,469 |  |  | 337,256 |  |  | 337,256 |
Other investments | 285,200 |  |  | 288,303 |  |  | 285,044 |  |  | 290,075 |
Cash and cash equivalents | 707,177 |  |  | 707,177 |  |  | 397,749 |  |  | 397,749 |
Coinsurance deposits | 3,586,871 |  |  | 3,220,784 |  |  | 3,187,470 |  |  | 2,860,882 |
Interest rate caps | 740 |  |  | 740 |  |  | 1,410 |  |  | 1,410 |
Counterparty collateral | 85,477 |  |  | 85,477 |  |  | 82,312 |  |  | 82,312 |
Liabilities |  |  |  |  |  |  |
Policy benefit reserves | 47,113,312 |  |  | 39,941,007 |  |  | 45,151,460 |  |  | 38,435,515 |
Single premium immediate annuity (SPIA) benefit reserves | 313,559 |  |  | 325,251 |  |  | 324,264 |  |  | 336,066 |
Notes payable | 393,482 |  |  | 411,252 |  |  | 393,227 |  |  | 417,752 |
Subordinated debentures | 241,550 |  |  | 212,638 |  |  | 241,452 |  |  | 216,933 |
Interest rate swap | 5,375 |  |  | 5,375 |  |  | 3,139 |  |  | 3,139 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis, By Fair Value Hierarchy Level | Our assets and liabilities which are measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 are presented below based on the fair value hierarchy levels:
| Total Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (Dollars in thousands)
March 31, 2016 |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |
United States Government full faith and credit | $ | 473,402 |  |  | $ | 441,625 |  |  | $ | 31,777 |  |  | $ | — |
United States Government sponsored agencies | 1,566,287 |  |  | — |  |  | 1,566,287 |  |  | — |
United States municipalities, states and territories | 3,883,737 |  |  | — |  |  | 3,883,737 |  |  | — |
Foreign government obligations | 221,861 |  |  | — |  |  | 221,861 |  |  | — |
Corporate securities | 25,168,468 |  |  | 9 |  |  | 25,168,459 |  |  | — |
Residential mortgage backed securities | 1,432,353 |  |  | — |  |  | 1,432,353 |  |  | — |
Commercial mortgage backed securities | 4,503,261 |  |  | — |  |  | 4,503,261 |  |  | — |
Other asset backed securities | 1,160,631 |  |  | — |  |  | 1,160,631 |  |  | — |
Equity securities, available for sale: finance, insurance and real estate | 7,813 |  |  | — |  |  | 7,813 |  |  | — |
Derivative instruments | 387,469 |  |  | — |  |  | 387,469 |  |  | — |
Cash and cash equivalents | 707,177 |  |  | 707,177 |  |  | — |  |  | — |
Interest rate caps | 740 |  |  | — |  |  | 740 |  |  | — |
Counterparty collateral | 85,477 |  |  | — |  |  | 85,477 |  |  | — |
| $ | 39,598,676 |  |  | $ | 1,148,811 |  |  | $ | 38,449,865 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |
Interest rate swap | $ | 5,375 |  |  | $ | — |  |  | $ | 5,375 |  |  | $ | — |
Fixed index annuities - embedded derivatives | 6,254,466 |  |  | — |  |  | — |  |  | 6,254,466 |
| $ | 6,259,841 |  |  | $ | — |  |  | $ | 5,375 |  |  | $ | 6,254,466 |
December 31, 2015 |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |
United States Government full faith and credit | $ | 471,256 |  |  | $ | 438,598 |  |  | $ | 32,658 |  |  | $ | — |
United States Government sponsored agencies | 1,398,611 |  |  | — |  |  | 1,398,611 |  |  | — |
United States municipalities, states and territories | 3,755,367 |  |  | — |  |  | 3,755,367 |  |  | — |
Foreign government obligations | 212,565 |  |  | — |  |  | 212,565 |  |  | — |
Corporate securities | 23,802,394 |  |  | 121 |  |  | 23,802,273 |  |  | — |
Residential mortgage backed securities | 1,462,072 |  |  | — |  |  | 1,462,072 |  |  | — |
Commercial mortgage backed securities | 4,174,396 |  |  | — |  |  | 4,174,396 |  |  | — |
Other asset backed securities | 1,145,178 |  |  | — |  |  | 1,145,178 |  |  | — |
Equity securities, available for sale: finance, insurance and real estate | 7,828 |  |  | — |  |  | 7,828 |  |  | — |
Derivative instruments | 337,256 |  |  | — |  |  | 337,256 |  |  | — |
Cash and cash equivalents | 397,749 |  |  | 397,749 |  |  | — |  |  | — |
Interest rate caps | 1,410 |  |  | — |  |  | 1,410 |  |  | — |
Counterparty collateral | 82,312 |  |  | — |  |  | 82,312 |  |  | — |
| $ | 37,248,394 |  |  | $ | 836,468 |  |  | $ | 36,411,926 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |
Interest rate swap | $ | 3,139 |  |  | $ | — |  |  | $ | 3,139 |  |  | $ | — |
Fixed index annuities - embedded derivatives | 5,983,622 |  |  | — |  |  | — |  |  | 5,983,622 |
| $ | 5,986,761 |  |  | $ | — |  |  | $ | 3,139 |  |  | $ | 5,983,622 |
Schedule of Assumptions Used in Estimating Fair Value | The following table presents average lapse rate and partial withdrawal rate assumptions, by contract duration, used in estimating the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each reporting date:
|  | Average Lapse Rates |  | Average Partial Withdrawal Rates
Contract Duration (Years) |  | Three Months Ended March 31, 2016 |  | Year Ended December 31, 2015 |  | Three Months Ended March 31, 2016 |  | Year Ended December 31, 2015
1 - 5 |  | 1.77% |  | 1.58% |  | 3.29% |  | 3.08%
6 - 10 |  | 6.60% |  | 8.55% |  | 3.30% |  | 3.55%
11 - 15 |  | 11.24% |  | 12.01% |  | 3.31% |  | 3.59%
16 - 20 |  | 12.03% |  | 12.99% |  | 3.17% |  | 3.22%
20+ |  | 11.68% |  | 12.54% |  | 3.17% |  | 3.22%
Assets Measured at Fair Value on Recurring Basis, Level 3 Reconciliation |
| Three Months Ended March 31,
| 2016 |  | 2015
| (Dollars in thousands)
Available for sale securities |  |  |
Beginning balance | $ | — |  |  | $ | 375 |
Principal returned | — |  |  | (12 | )
Amortization of premium/accretion of discount | — |  |  | (57 | )
Total gains (losses) (realized/unrealized): |  |  |
Included in other comprehensive income | — |  |  | 36 |
Included in operations | — |  |  | — |
Ending balance | $ | — |  |  | $ | 342 |
Liabilities Measured at Fair Value on Recurring Basis, Level 3 Reconciliation |
| Three Months Ended March 31,
| 2016 |  | 2015
| (Dollars in thousands)
Fixed index annuities - embedded derivatives |  |  |
Beginning balance | $ | 5,983,622 |  |  | $ | 5,574,653 |
Premiums less benefits | 91,129 |  |  | 360,395 |
Change in fair value, net | 179,715 |  |  | (69,877 | )
Ending balance | $ | 6,254,466 |  |  | $ | 5,865,171 |

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the underlying assumptions and percentages or rates used in determining the fair value of guarantee obligations for each type of long-duration contract. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6482852&loc=d3e14931-158439 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6482852&loc=d3e14944-158439 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6482852&loc=d3e14937-158439 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6481800&loc=d3e11318-158416 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 80 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6484115&loc=d3e19393-158473 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 55 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6588021&loc=d3e7104-158389 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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