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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

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:

			December 31,
			2022												2021
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in thousands)
Assets
Fixed maturity securities, available for sale			$	39,804,617					$	39,804,617					$	51,305,943					$	51,305,943
Mortgage loans on real estate			6,949,027						6,502,463						5,687,998						5,867,227
Real estate investments			1,056,063						1,056,063						337,939						337,939
Limited partnerships and limited liability companies			684,835						684,835						168,711						168,711
Derivative instruments			431,727						431,727						1,277,480						1,277,480
Other investments			1,817,085						1,817,085						1,247,024						1,247,024
Cash and cash equivalents			1,919,669						1,919,669						4,508,982						4,508,982
Coinsurance deposits			13,208,399						12,000,116						8,850,608						7,938,292
Liabilities
Policy benefit reserves			60,743,370						55,572,896						65,076,041						56,375,076
Single premium immediate annuity (SPIA) benefit reserves			212,119						221,130						226,207						235,891
Other policy funds - FHLB			300,000						300,000						—						—
Notes and loan payable			792,073						774,220						496,250						569,485
Subordinated debentures			78,753						87,293						78,421						93,721

Assets and Liabilities Measured 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 December 31, 2022 and 2021 are presented below based on the fair value hierarchy levels:

			Total Fair Value						NAV						Quoted Prices in Active Markets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(Dollars in thousands)
December 31, 2022
Assets
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	169,071					$	—					$	26,184					$	142,887					$	—
States, municipalities and territories			3,822,982						—						—						3,822,982						—
Foreign corporate securities and foreign governments			676,852						—						—						676,852						—
Corporate securities			24,161,921						—						—						23,759,573						402,348
Residential mortgage backed securities			1,377,611						—						—						1,377,611						—
Commercial mortgage backed securities			3,687,478						—						—						3,687,478						—
Other asset backed securities			5,908,702						—						—						5,465,784						442,918
Other investments			1,013,297						—						398,280						615,017						—
Real estate investments			940,559						—						—						—						940,559
Limited partnerships and limited liability companies			684,835						620,626						—						—						64,209
Derivative instruments			431,727						—						—						431,727						—
Cash and cash equivalents			1,919,669						—						1,919,669						—						—
			$	44,794,704					$	620,626					$	2,344,133					$	39,979,911					$	1,850,034
Liabilities
Funds withheld liability - embedded derivative			$	(441,864)					$	—					$	—					$	—					$	(441,864)
Fixed index annuities - embedded derivatives			4,820,845						—						—						—						4,820,845
			$	4,378,981					$	—					$	—					$	—					$	4,378,981
December 31, 2021
Assets
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	1,078,746					$	—					$	32,737					$	1,046,009					$	—
States, municipalities and territories			3,927,201						—						—						3,927,201						—
Foreign corporate securities and foreign governments			402,545						—						—						402,545						—
Corporate securities			34,660,234						—						32,700						34,627,534						—
Residential mortgage backed securities			1,125,049						—						—						1,125,049						—
Commercial mortgage backed securities			4,840,311						—						—						4,840,311						—
Other asset backed securities			5,271,857						—						—						5,271,857						—
Other investments			12,226						—						—						5,877						6,349
Real estate investments			337,939						—						—						—						337,939
Limited partnerships and limited liability companies			168,711						168,711						—						—						—
Derivative instruments			1,277,480						—						—						1,277,480						—
Cash and cash equivalents			4,508,982						—						4,508,982						—						—
			$	57,611,281					$	168,711					$	4,574,419					$	52,523,863					$	344,288
Liabilities
Funds withheld liability - embedded derivative			$	(2,362)					$	—					$	—					$	(2,362)					$	—
Fixed index annuities - embedded derivatives			7,964,961						—						—						—						7,964,961
			$	7,962,599					$	—					$	—					$	(2,362)					$	7,964,961

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)						December 31, 2022						December 31, 2021						December 31, 2022						December 31, 2021
1 - 5						2.17%						3.04%						1.86%						2.19%
6 - 10						3.28%						2.84%						1.97%						2.26%
11 - 15						3.63%						4.47%						1.86%						2.14%
16 - 20						8.55%						8.93%						2.96%						1.33%
20+						4.90%						4.93%						1.81%						—%

Assets Measured at Fair Value on Recurring Basis, Level 3 Reconciliation

The following table provides a reconciliation of the beginning and ending balances for our Level 3 assets and liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the years ended December 31, 2022 and 2021:

			Year Ended   December 31,
			2022						2021
Fixed maturity securities, available for sale - Corporate securities
Beginning balance			$	—					$	—
Purchases			2,233						—
Transfers in			391,702						—
Transfers out			—						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			8,413						—
Ending balance			$	402,348					$	—
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance			$	—					$	—
Purchases			296,800						—
Transfers in			153,669						—
Transfers out			—						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(7,551)						—
Ending balance			$	442,918					$	—
Other investments
Beginning balance			$	6,349					$	—
Transfers in			—						6,349
Transfers out			(3,867)						—
Total realized/unrealized gains (losses):
Included in net income			(2,482)						—
Included in other comprehensive income (loss)			—						—
Ending balance			$	—					$	6,349

			Year Ended   December 31,
			2022						2021
Real estate investments
Beginning balance			$	337,939					$	—
Purchases and sales, net			602,298						335,767
Change in fair value			322						2,172
Ending balance			$	940,559					$	337,939
Limited partnerships and limited liability companies
Beginning balance			$	—					$	—
Purchases and sales, net			57,574						—
Change in fair value			6,635						—
Ending balance			$	64,209					$	—
Funds withheld liability - embedded derivative
Beginning balance			$	—					$	—
Transfers in			(441,864)						—
Change in fair value			—						—
Ending balance			$	(441,864)					$	—
Fixed index annuities - embedded derivatives
Beginning balance			$	7,964,961					$	7,938,281
Premiums less benefits			(125,940)						1,424,372
Change in fair value, net			(2,561,676)						(876,803)
Reserve release related to in-force ceded reinsurance			(456,500)						(520,889)
Ending balance			$	4,820,845					$	7,964,961

Liabilities Measured at Fair Value on Recurring Basis, Level 3 Reconciliation

The following table provides a reconciliation of the beginning and ending balances for our Level 3 assets and liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the years ended December 31, 2022 and 2021:

			Year Ended   December 31,
			2022						2021
Fixed maturity securities, available for sale - Corporate securities
Beginning balance			$	—					$	—
Purchases			2,233						—
Transfers in			391,702						—
Transfers out			—						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			8,413						—
Ending balance			$	402,348					$	—
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance			$	—					$	—
Purchases			296,800						—
Transfers in			153,669						—
Transfers out			—						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(7,551)						—
Ending balance			$	442,918					$	—
Other investments
Beginning balance			$	6,349					$	—
Transfers in			—						6,349
Transfers out			(3,867)						—
Total realized/unrealized gains (losses):
Included in net income			(2,482)						—
Included in other comprehensive income (loss)			—						—
Ending balance			$	—					$	6,349

			Year Ended   December 31,
			2022						2021
Real estate investments
Beginning balance			$	337,939					$	—
Purchases and sales, net			602,298						335,767
Change in fair value			322						2,172
Ending balance			$	940,559					$	337,939
Limited partnerships and limited liability companies
Beginning balance			$	—					$	—
Purchases and sales, net			57,574						—
Change in fair value			6,635						—
Ending balance			$	64,209					$	—
Funds withheld liability - embedded derivative
Beginning balance			$	—					$	—
Transfers in			(441,864)						—
Change in fair value			—						—
Ending balance			$	(441,864)					$	—
Fixed index annuities - embedded derivatives
Beginning balance			$	7,964,961					$	7,938,281
Premiums less benefits			(125,940)						1,424,372
Change in fair value, net			(2,561,676)						(876,803)
Reserve release related to in-force ceded reinsurance			(456,500)						(520,889)
Ending balance			$	4,820,845					$	7,964,961

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