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Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

Schedule of Fixed Maturity Securities

At December 31, 2021 and 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)
December 31, 2021
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	37,109					$	718					$	(34)					$	—					$	37,793
United States Government sponsored agencies			1,008,920						32,123						(90)						—						1,040,953
United States municipalities, states and territories			3,495,563						437,456						(3,042)						(2,776)						3,927,201
Foreign government obligations			380,646						22,742						(843)						—						402,545
Corporate securities			31,084,629						3,614,047						(38,442)						—						34,660,234
Residential mortgage backed securities			1,056,778						70,434						(2,093)						(70)						1,125,049
Commercial mortgage backed securities			4,708,878						149,152						(17,719)						—						4,840,311
Other asset backed securities			5,226,660						95,304						(50,107)						—						5,271,857
			$	46,999,183					$	4,421,976					$	(112,370)					$	(2,846)					$	51,305,943
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 $400.7 million and $377.5 million as of December 31, 2021 and 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 December 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			$	1,950,504					$	1,968,323
Due after one year through five years			7,573,038						7,962,521
Due after five years through ten years			7,230,026						7,860,389
Due after ten years through twenty years			10,119,850						12,053,093
Due after twenty years			9,133,449						10,224,400
			36,006,867						40,068,726
Residential mortgage backed securities			1,056,778						1,125,049
Commercial mortgage backed securities			4,708,878						4,840,311
Other asset backed securities			5,226,660						5,271,857
			$	46,999,183					$	51,305,943

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:

			December 31,
			2021						2020
			(Dollars in thousands)
Net unrealized gains on available for sale fixed maturity securities			$	4,309,606					$	5,297,040
Adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves			(1,993,869)						(2,536,251)
Deferred income tax valuation allowance reversal			22,534						22,534
Deferred income tax expense			(489,482)						(579,766)
Net unrealized gains reported as accumulated other comprehensive income			$	1,848,789					$	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:

						December 31,
						2021												2020
NAIC Designation						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(Dollars in thousands)
1						$	26,157,531					$	28,785,839					$	23,330,149					$	26,564,542
2						19,758,594						21,396,020						17,312,485						19,377,013
3						909,311						941,210						1,292,124						1,299,455
4						133,070						147,160						282,049						256,651
5						16,496						15,357						29,396						16,288
6						24,181						20,357						58,533						24,944
						$	46,999,183					$	51,305,943					$	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 1,427 and 843 securities, respectively) have been in a continuous unrealized loss position, at December 31, 2021 and 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)
December 31, 2021
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	1,007					$	(34)					$	—					$	—					$	1,007					$	(34)
United States Government sponsored agencies			759,970						(90)						—						—						759,970						(90)
United States municipalities, states and territories			168,942						(2,468)						15,711						(3,350)						184,653						(5,818)
Foreign government obligations			42,861						(843)						—						—						42,861						(843)
Corporate securities			2,375,603						(30,070)						116,819						(8,372)						2,492,422						(38,442)
Residential mortgage backed securities			250,964						(1,408)						26,917						(755)						277,881						(2,163)
Commercial mortgage backed securities			784,464						(5,500)						142,224						(12,219)						926,688						(17,719)
Other asset backed securities			1,351,324						(11,345)						1,771,182						(38,762)						3,122,506						(50,107)
			$	5,735,135					$	(51,758)					$	2,072,853					$	(63,458)					$	7,807,988					$	(115,216)
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			606,277						(45,150)						154,633						(50,935)						760,910						(96,085)
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 $2.8 million and $64.8 million as of December 31, 2021 and 2020, respectively.

Schedule of Changes in Net Unrealized Gains/Losses on Investments

Changes in net unrealized gains/losses on investments for the years ended December 31, 2021, 2020 and 2019 are as follows:

			Year Ended December 31,
			2021						2020						2019
			(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value			$	(987,434)					$	1,955,496					$	3,549,007
Adjustment for effect on other balance sheet accounts:
Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves			542,382						(880,517)						(1,775,474)
Deferred income tax asset/liability			90,284						(225,746)						(372,472)
			632,666						(1,106,263)						(2,147,946)
Change in net unrealized gains/losses on investments carried at fair value			$	(354,768)					$	849,233					$	1,401,061

Components of Net Investment Income

Components of net investment income are as follows:

			Year Ended December 31,
			2021						2020						2019
			(Dollars in thousands)
Fixed maturity securities			$	1,772,675					$	2,035,762					$	2,171,768
Real estate investments			14,138						—						—
Mortgage loans on real estate			215,138						170,749						145,344
Cash and cash equivalents			3,385						4,871						5,164
Other investments			96,556						3,168						7,202
			2,101,892						2,214,550						2,329,478
Less investment expenses			(64,417)						(32,472)						(21,843)
Net investment income			$	2,037,475					$	2,182,078					$	2,307,635

Net Realized Gains (Losses) on Investments

Net realized gains (losses) on investments for the years ended December 31, 2021, 2020 and 2019 are as follows:

			Year Ended December 31,
			2021						2020						2019
			(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains			$	10,167					$	305,170					$	21,449
Gross realized losses			(19,140)						(276,847)						(6,397)
Net credit loss (provision) release (1)			(6,241)						(94,560)						—
			(15,214)						(66,237)						15,052
Other investments:
Gross realized gains			—						—						7,296
Gross realized losses			—						—						(14,446)
			—						—						(7,150)
Mortgage loans on real estate:
Decrease (increase) in allowance for credit losses			7,005						(15,447)						(940)
Recovery of specific allowance			—						712						—
Gain (loss) on sale of mortgage loans			(5,033)						292						—
			1,972						(14,443)						(940)
Total net realized (losses) gains			$	(13,242)					$	(80,680)					$	6,962

(1)Prior to adopting authoritative guidance effective January 1, 2020, credit losses on available for sale fixed maturity securities were classified as other than temporary impairments and reported in a separate line item in the Consolidated Statements of Operations. We recognized $18.7 million of other than temporary impairments during the year ended December 31, 2019.

Non-Income Producing Investments

The following table summarizes the carrying value of our investments that have been non-income producing for 12 consecutive months:

			December 31,
			2021						2020
			(Dollars in thousands)
Fixed maturity securities, available for sale			$	4,118					$	5,766

Rollforward of Allowance for Credit Loss

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

			Year Ended December 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						—						407						—						1,112
Change in allowance on securities with previous allowance			(68)						443						—						(857)						—						(482)
Reduction for securities with credit losses due to intent to sell			—						(209)						—						—						—						(209)
Reduction for securities sold during the period			—						(50,758)						—						—						—						(50,758)
Write-offs charged against the allowance			—						(10,032)						—						—						—						(10,032)
Recoveries of amounts previously written off			—						(342)						—						(1,214)						—						(1,556)
Ending balance			$	2,776					$	—					$	—					$	70					$	—					$	2,846
			Year Ended December 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 (1)			$	—					$	—					$	—					$	—					$	—					$	—
Additions for credit losses not previously recorded			2,844						60,193						29,241						1,734						548						94,560
Reduction for securities with credit losses due to intent to sell			—						—						(21,888)						—						(548)						(22,436)
Reduction for securities sold during the period			—						—						(7,353)						—						—						(7,353)
Ending balance			$	2,844					$	60,193					$	—					$	1,734					$	—					$	64,771

(1)The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 - Significant Accounting Policies for further details.

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