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Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

Schedule of Fixed Maturity Securities

At March 31, 2022 and December 31, 2021, 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, 2022
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	39,302					$	88					$	(724)					$	—					$	38,666
United States Government sponsored agencies			158,596						18,473						(2,224)						—						174,845
United States municipalities, states and territories			3,694,146						214,986						(94,613)						(2,009)						3,812,510
Foreign government obligations			415,227						11,175						(21,236)						—						405,166
Corporate securities			33,550,018						1,311,404						(984,070)						(3,825)						33,873,527
Residential mortgage backed securities			1,195,436						38,688						(22,822)						(743)						1,210,559
Commercial mortgage backed securities			4,873,980						23,338						(127,451)						—						4,769,867
Other asset backed securities			5,438,210						53,355						(114,585)						—						5,376,980
			$	49,364,915					$	1,671,507					$	(1,367,725)					$	(6,577)					$	49,662,120
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

(1)Amortized cost excludes accrued interest receivable of $440.5 million and $400.7 million as of March 31, 2022 and December 31, 2021, 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, 2022, 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			$	1,285,124					$	1,294,473
Due after one year through five years			8,050,284						8,089,245
Due after five years through ten years			7,228,862						7,278,595
Due after ten years through twenty years			10,741,247						11,453,442
Due after twenty years			10,551,772						10,188,959
			37,857,289						38,304,714
Residential mortgage backed securities			1,195,436						1,210,559
Commercial mortgage backed securities			4,873,980						4,769,867
Other asset backed securities			5,438,210						5,376,980
			$	49,364,915					$	49,662,120

Schedule 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, 2022						December 31, 2021
			(Dollars in thousands)
Net unrealized gains on available for sale fixed maturity securities			$	295,235					$	4,309,606
Adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves			(242,590)						(1,993,869)
Deferred income tax valuation allowance reversal			22,534						22,534
Deferred income tax expense			(11,473)						(489,482)
Net unrealized gains reported as accumulated other comprehensive income			$	63,706					$	1,848,789

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, 2022												December 31, 2021
NAIC Designation						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(Dollars in thousands)
1						$	27,701,587					$	28,064,072					$	26,157,531					$	28,785,839
2						20,740,585						20,701,013						19,758,594						21,396,020
3						772,726						748,881						909,311						941,210
4						117,725						122,867						133,070						147,160
5						3,259						3,259						16,496						15,357
6						29,033						22,028						24,181						20,357
						$	49,364,915					$	49,662,120					$	46,999,183					$	51,305,943

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 3,781 and 1,427 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021:

			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, 2022
Fixed maturity securities, available for sale:
United States Government full faith and credit			$	27,565					$	(686)					$	434					$	(38)					$	27,999					$	(724)
United States Government sponsored agencies			11,468						(2,224)						—						—						11,468						(2,224)
United States municipalities, states and territories			1,161,530						(94,117)						18,344						(2,505)						1,179,874						(96,622)
Foreign government obligations			252,267						(21,236)						—						—						252,267						(21,236)
Corporate securities			12,808,738						(965,862)						131,098						(22,033)						12,939,836						(987,895)
Residential mortgage backed securities			501,285						(21,186)						32,665						(2,379)						533,950						(23,565)
Commercial mortgage backed securities			3,217,274						(111,459)						88,148						(15,992)						3,305,422						(127,451)
Other asset backed securities			2,503,524						(50,385)						1,731,947						(64,200)						4,235,471						(114,585)
			$	20,483,651					$	(1,267,155)					$	2,002,636					$	(107,147)					$	22,486,287					$	(1,374,302)
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)

(1)Unrealized losses have not been reduced to reflect the allowance for credit losses of $6.6 million and $2.8 million as of March 31, 2022 and December 31, 2021, 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, 2022 and 2021 are as follows:

									Three Months Ended   March 31,
															2022						2021
															(Dollars in thousands)
Fixed maturity securities available for sale carried at fair value															$	(4,014,371)					$	(1,661,361)
Adjustment for effect on other balance sheet accounts:
Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves															1,751,279						777,441
Deferred income tax asset/liability															478,009						185,623
															2,229,288						963,064
Change in net unrealized gains/losses on investments carried at fair value															$	(1,785,083)					$	(698,297)

Net Realized Gains (Losses) on Investments

Net realized losses on investments for the three months ended March 31, 2022 and 2021, are as follows:

									Three Months Ended   March 31,
															2022						2021
															(Dollars in thousands)
Available for sale fixed maturity securities:
Gross realized gains															$	3,465					$	2,367
Gross realized losses															(2,006)						(8,196)
Net credit loss (provision) release															(7,356)						(1,437)
															(5,897)						(7,266)
Mortgage loans on real estate:
Decrease (increase) in allowance for credit losses															(5,245)						2,515
Gain (loss) on sale of mortgage loans															(1,985)						168
															(7,230)						2,683
															$	(13,127)					$	(4,583)

Rollforward of Allowance for Credit Loss

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

			Three Months Ended March 31, 2022
			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			$	2,776					$	—					$	—					$	70					$	—					$	2,846
Additions for credit losses not previously recorded			—						3,825						—						336						—						4,161
Change in allowance on securities with previous allowance			(767)						—						—						337						—						(430)
Reduction for securities sold during the period			—						—						—						—						—						—
Ending balance			$	2,009					$	3,825					$	—					$	743					$	—					$	6,577
			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

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