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Investments (Tables)

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Schedule of Fixed Maturity Securities

At March 31, 2021 and December 31, 2020, the amortized cost and fair value of fixed maturity securities were as follows:

			Amortized Cost (1)						Gross Unrealized Gains						Gross Unrealized Losses (2)						Allowance for Credit Losses						Fair Value
			(Dollars in thousands)
March 31, 2021
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	38,488					$	661					$	(422)					$	—					$	38,727
United States Government sponsored agencies			995,405						32,086						(50)						—						1,027,441
United States municipalities, states and territories			3,258,694						405,772						(5,831)						(2,791)						3,655,844
Foreign government obligations			177,075						17,081						(212)						—						193,944
Corporate securities			26,976,452						3,028,857						(59,329)						(55,715)						29,890,265
Residential mortgage backed securities			1,263,013						88,251						(3,599)						(1,192)						1,346,473
Commercial mortgage backed securities			4,019,810						190,057						(32,625)						—						4,177,242
Other asset backed securities			5,385,522						70,498						(95,615)						—						5,360,405
			$	42,114,459					$	3,833,263					$	(197,683)					$	(59,698)					$	45,690,341
December 31, 2020
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	37,471					$	2,300					$	—					$	—					$	39,771
United States Government sponsored agencies			995,465						44,132						(46)						—						1,039,551
United States municipalities, states and territories			3,236,767						543,252						(1,044)						(2,844)						3,776,131
Foreign government obligations			177,062						25,644						—						—						202,706
Corporate securities			26,745,196						4,507,716						(35,892)						(60,193)						31,156,827
Residential mortgage backed securities			1,399,956						117,135						(2,526)						(1,734)						1,512,831
Commercial mortgage backed securities			4,119,650						206,255						(64,678)						—						4,261,227
Other asset backed securities			5,593,169						103,320						(146,640)						—						5,549,849
			$	42,304,736					$	5,549,754					$	(250,826)					$	(64,771)					$	47,538,893

(1)Amortized cost excludes accrued interest receivable of $389.2 million and $377.5 million as of March 31, 2021 and December 31, 2020, respectively.

(2)Gross unrealized losses are net of allowance for credit losses.

Schedule of Fixed Maturity Securities by Contractual Maturity Date

The amortized cost and fair value of fixed maturity securities at March 31, 2021, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines.

			Available for sale
			Amortized Cost						Fair Value
			(Dollars in thousands)
Due in one year or less			$	890,969					$	899,102
Due after one year through five years			6,970,380						7,416,931
Due after five years through ten years			7,771,264						8,448,559
Due after ten years through twenty years			9,332,336						10,859,556
Due after twenty years			6,481,165						7,182,073
			31,446,114						34,806,221
Residential mortgage backed securities			1,263,013						1,346,473
Commercial mortgage backed securities			4,019,810						4,177,242
Other asset backed securities			5,385,522						5,360,405
			$	42,114,459					$	45,690,341

Schedule of Components of Net Unrealized Gains on Available for Sale Fixed Maturity Securities Reported as Separate Component of Stockholders' Equity

Net unrealized gains on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following:

			March 31, 2021						December 31, 2020
			(Dollars in thousands)
Net unrealized gains on available for sale fixed maturity securities			$	3,635,679					$	5,297,040
Adjustments for assumed changes in amortization of deferred policy acquisition costs and deferred sales inducements and policy benefit reserves			(1,758,810)						(2,536,251)
Deferred income tax valuation allowance reversal			22,534						22,534
Deferred income tax expense			(394,143)						(579,766)
Net unrealized gains reported as accumulated other comprehensive income			$	1,505,260					$	2,203,557

Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation

The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated:

						March 31, 2021												December 31, 2020
NAIC Designation						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(Dollars in thousands)
1						$	23,074,878					$	25,301,796					$	23,330,149					$	26,564,542
2						17,431,710						18,833,794						17,312,485						19,377,013
3						1,305,190						1,310,371						1,292,124						1,299,455
4						209,974						189,560						282,049						256,651
5						40,511						27,540						29,396						16,288
6						52,196						27,280						58,533						24,944
						$	42,114,459					$	45,690,341					$	42,304,736					$	47,538,893

Schedule of Gross Unrealized Losses on Investments, By Category and Length of Time

The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 819 and 843 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2021 and December 31, 2020:

			Less than 12 months												12 months or more												Total
			Fair Value						Unrealized Losses (1)						Fair Value						Unrealized Losses (1)						Fair Value						Unrealized Losses (1)
			(Dollars in thousands)
March 31, 2021
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	22,652					$	(422)					$	—					$	—					$	22,652					$	(422)
United States Government sponsored agencies			159,997						(50)						—						—						159,997						(50)
United States municipalities, states and territories			232,070						(8,611)						8,110						(11)						240,180						(8,622)
Foreign government obligations			13,953						(212)						—						—						13,953						(212)
Corporate securities:
Finance, insurance and real estate			360,414						(24,862)						—						—						360,414						(24,862)
Manufacturing, construction and mining			139,787						(4,867)						18,107						(2,045)						157,894						(6,912)
Utilities and related sectors			351,801						(14,178)						159,078						(6,697)						510,879						(20,875)
Wholesale/retail trade			121,015						(7,039)						14,720						(1,191)						135,735						(8,230)
Services, media and other			347,679						(15,635)						99,895						(38,530)						447,574						(54,165)
Residential mortgage backed securities			250,527						(2,435)						52,433						(2,356)						302,960						(4,791)
Commercial mortgage backed securities			97,296						(4,390)						493,065						(28,235)						590,361						(32,625)
Other asset backed securities			710,247						(4,576)						2,484,451						(91,039)						3,194,698						(95,615)
			$	2,807,438					$	(87,277)					$	3,329,859					$	(170,104)					$	6,137,297					$	(257,381)
December 31, 2020
Fixed maturity securities, available for sale:
United States Government sponsored agencies			$	250,475					$	(46)					$	—					$	—					$	250,475					$	(46)
United States municipalities, states and territories			31,802						(3,887)						868						(1)						32,670						(3,888)
Corporate securities:
Finance, insurance and real estate			109,789						(1,733)						—						—						109,789						(1,733)
Manufacturing, construction and mining			—						—						19,335						(1,384)						19,335						(1,384)
Utilities and related sectors			310,823						(27,509)						35,408						(3,628)						346,231						(31,137)
Wholesale/retail trade			65,567						(4,344)						16,000						(26)						81,567						(4,370)
Services, media and other			120,098						(11,564)						83,890						(45,897)						203,988						(57,461)
Residential mortgage backed securities			156,016						(2,384)						13,599						(1,876)						169,615						(4,260)
Commercial mortgage backed securities			934,593						(54,834)						35,153						(9,844)						969,746						(64,678)
Other asset backed securities			1,013,781						(16,607)						2,567,723						(130,033)						3,581,504						(146,640)
			$	2,992,944					$	(122,908)					$	2,771,976					$	(192,689)					$	5,764,920					$	(315,597)

(1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $59.7 million and $64.8 million as of March 31, 2021 and December 31, 2020, respectively.

Schedule of Changes in Net Unrealized Gains/Losses on Investments

Changes in net unrealized gains/losses on investments for the three months ended March 31, 2021 and 2020 are as follows:

									Three Months Ended   March 31,
															2021						2020
															(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value															$	(1,661,361)					$	(2,862,408)
Adjustment for effect on other balance sheet accounts:
Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves															777,441						1,397,198
Deferred income tax asset/liability															185,623						307,695
															963,064						1,704,893
Change in net unrealized gains/losses on investments carried at fair value															$	(698,297)					$	(1,157,515)

Net Realized Gains (Losses) on Investments

Net realized losses on investments for the three months ended March 31, 2021 and 2020, are as follows:

									Three Months Ended   March 31,
															2021						2020
															(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains															$	2,367					$	14,238
Gross realized losses															(8,196)						(1,206)
Credit losses															(1,437)						(31,371)
															(7,266)						(18,339)
Mortgage loans on real estate:
Decrease (increase) in allowance for credit losses															2,515						(1,997)
Gain on sale of mortgage loans															168						—
															2,683						(1,997)
															$	(4,583)					$	(20,336)

Rollforward of Allowance for Credit Loss

The following table provides a rollforward of the allowance for credit loss:

			Three Months Ended March 31, 2021
			United States Municipalities, States and Territories						Corporate Securities						Commercial Mortgage Backed Securities						Residential Mortgage Backed Securities						Other Asset Backed Securities						Total
			(Dollars in thousands)
Beginning balance			$	2,844					$	60,193					$	—					$	1,734					$	—					$	64,771
Additions for credit losses not previously recorded			—						705						—						111						—						816
Change in allowance on securities with previous allowance			(53)						1,327						—						(653)						—						621
Reduction for securities sold during the period			—						(6,510)						—						—						—						(6,510)
Ending balance			$	2,791					$	55,715					$	—					$	1,192					$	—					$	59,698
			Three Months Ended March 31, 2020
			United States Municipalities, States and Territories						Corporate Securities						Commercial Mortgage Backed Securities						Residential Mortgage Backed Securities						Other Asset Backed Securities						Total
			(Dollars in thousands)
Beginning balance			$	—					$	—					$	—					$	—					$	—					$	—
Additions for credit losses not previously recorded			—						28,332						2,491						—						548						31,371
Reduction for securities with credit losses due to intent to sell			—						—						(2,491)						—						(548)						(3,039)
Ending balance			$	—					$	28,332					$	—					$	—					$	—					$	28,332

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