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Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Liability for Future Policy Benefit, Activity

			Liability for Future Policy Benefits for Payout Annuity With Life Contingency
			(Dollars in thousands)
Pre-adoption 1/1/2021 balance			$	337,467
Adjustment to opening retained earnings for expected future policy benefits			2,566
Adjustment for the effect of remeasurement of liability at current single A rate			68,717
Post adoption 1/1/2021 balance			$	408,750

The balances of and changes in the liability for future policy benefits for the nine months ended September 30, 2023 and year ended December 31, 2022 is as follows:

									Present Value of Expected Future Policy Benefits
									Nine Months Ended   September 30, 2023						Year Ended December 31, 2022
									(Dollars in thousands)
Balance, beginning of period									$	318,677					$	402,305
Beginning balance at original discount rate									342,453						352,708
Effect of changes in cash flow assumptions									(4,607)						1,277
Effect of actual variances from expected experience									(1,692)						(1,941)
Adjusted beginning of year balance									336,154						352,044
Issuances									6,391						16,072
Interest accrual									10,357						14,664
Derecognition (lapses and benefit payments)									(29,252)						(40,327)
Ending balance at original discount rate									323,650						342,453
Effect of changes in discount rate assumptions									(31,316)						(23,776)
Balance, end of period									$	292,334					$	318,677

The reconciliation of the net liability for future policy benefits to the liability for future policy benefits included in policy benefit reserves in the consolidated balance sheets is as follows:

			September 30, 2023						December 31, 2022
			(Dollars in thousands)
Liability for future policy benefits			$	292,334					$	318,677
Deferred profit liability			22,975						19,223
			315,309						337,900
Less: Reinsurance recoverable			(1,997)						(1,259)
Net liability for future policy benefits, after reinsurance recoverable			$	313,312					$	336,641

The weighted-average liability duration of the liability for future policy benefits is as follows:

			September 30, 2023						December 31, 2022
SPIA With Life Contingency:
Weighted-average liability duration of the liability for future policy benefits (years)			6.82						6.78

The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the nine months ended September 30, 2023 and year ended December 31, 2022 is as follows:

									Nine Months Ended   September 30, 2023												Year Ended December 31, 2022
															Gross Premiums or Assessments						Interest Expense						Gross Premiums or Assessments						Interest Expense
															(Dollars in thousands)
SPIA With Life Contingency															$	6,994					$	10,297					$	16,994					$	14,613
Total															$	6,994					$	10,297					$	16,994					$	14,613

The weighted-average interest rate is as follows:

			September 30, 2023						December 31, 2022
Interest accretion rate			4.25		%				4.25		%
Current discount rate			5.92		%				5.37		%

Market Risk Benefit, Activity

			Market Risk Benefit Liability
			(Dollars in thousands)
Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs			$	2,547,231
Adjustment for the removal of shadow adjustments			(584,636)
Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date			229,108
Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk			33,781
Post adoption 1/1/2021 MRB balance			$	2,225,484

			Ceded Market Risk Benefit (a)
			(Dollars in thousands)
Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs			$	62,108
Adjustment for the difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk			27,230
Post adoption 1/1/2021 ceded MRB balance			$	89,338

(a)The ceded market risk benefit is recognized in coinsurance deposits on the Consolidated Balance Sheets.

The balances of and changes in the liability for market risk benefits (MRB) for the nine months ended September 30, 2023 and year ended December 31, 2022 is as follows:

									Nine Months Ended   September 30, 2023												Year Ended December 31, 2022
															Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
															(Dollars in thousands)
MRB Liability
Balance, beginning of period															$	37,863					$	2,187,758					$	78,411					$	2,557,378
Balance, beginning of period, before effect of changes in the instrument-specific credit risk															44,355						2,453,169						77,731						2,310,437
Issuances															32						218,643						376						59,452
Interest accrual															2,294						118,391						1,349						72,551
Attributed fees collected															920						93,757						1,270						125,168
Benefits payments															—						—						—						—
Effect of changes in interest rates															(8,338)						(401,074)						(19,421)						(952,265)
Effect of changes in equity markets															—						(9,167)						—						186,618
Effect of changes in equity index volatility															—						(36,721)						—						241,563
Actual policyholder behavior different from expected behavior															—						—						—						—
Effect of changes in future expected policyholder behavior															(250)						(948)						602						46,567
Effect of changes in other future expected assumptions															16,720						(219,094)						(17,552)						363,078
Balance, end of period, before effect of changes in the instrument-specific credit															55,733						2,216,956						44,355						2,453,169
Effect of changes in the instrument-specific credit risk															(5,134)						(61,163)						(6,492)						(265,411)
Balance, end of period															50,599						2,155,793						37,863						2,187,758
Reinsured MRB, end of period															15,776						562,516						10,656						593,959
Balance, end of period, net of reinsurance															$	34,823					$	1,593,277					$	27,207					$	1,593,799
Net amount at risk (a)															$	265,429					$	11,673,620					$	258,826					$	10,987,198
Weighted average attained age of contract holders (years)															70						71						69						71

(a)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

The following is a reconciliation of market risk benefits by amounts in an asset position and in a liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets:

			September 30, 2023
			Asset						Liability						Net Liability
			(Dollars in thousands)
Fixed Index Annuities			$	343,923					$	2,499,716					$	2,155,793
Fixed Rate Annuities			2,592						53,191						50,599
Total			$	346,515					$	2,552,907					$	2,206,392

			December 31, 2022
			Asset						Liability						Net Liability
			(Dollars in thousands)
Fixed Index Annuities			$	226,294					$	2,414,052					$	2,187,758
Fixed Rate Annuities			3,577						41,440						37,863
Total			$	229,871					$	2,455,492					$	2,225,621

The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the nine months ended September 30, 2023 and year ended December 31, 2022:

									Nine Months Ended   September 30, 2023												Year Ended December 31, 2022
															Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
															(Dollars in thousands)
Ceded MRB
Balance, beginning of period															$	10,656					$	593,959					$	—					$	156,931
Write-off related to in-force ceded reinsurance															—						—						10,091						334,835
Issuances															—						146,498						—						36,036
Interest accrual															536						24,861						104						7,598
Attributed fees collected															41						22,440						28						23,745
Benefits payments															—						—						—						—
Effect of changes in interest rates															(1,129)						(74,994)						135						(171,948)
Effect of changes in equity markets															—						(2,167)						118						43,799
Effect of changes in equity index volatility															—						(8,485)						—						34,278
Actual policyholder behavior different from expected behavior															—						—						—						—
Effect of changes in future expected policyholder behavior															58						5,098						180						12,598
Effect of changes in other future expected assumptions															5,614						(144,694)						—						116,087
Balance, end of period															$	15,776					$	562,516					$	10,656					$	593,959
Net amount at risk (a)															$	74,611					$	2,828,270					$	72,350					$	2,402,964
Weighted average attained age of contract holders (years)															70						70						70						71

(a)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

The following is a reconciliation of reinsurance market risk benefits by amounts in an asset position and in liability position to market risk benefit amounts included in coinsurance deposits and other liabilities, respectively, in the consolidated balance sheets:

			September 30, 2023
			Asset						Liability						Net Asset
			(Dollars in thousands)
Fixed Index Annuities			$	695,387					$	132,871					$	562,516
Fixed Rate Annuities			16,026						250						15,776
Total			$	711,413					$	133,121					$	578,292

			December 31, 2022
			Asset						Liability						Net Asset
			(Dollars in thousands)
Fixed Index Annuities			$	629,611					$	35,652					$	593,959
Fixed Rate Annuities			11,070						414						10,656
Total			$	640,681					$	36,066					$	604,615

Deferred Policy Acquisition Costs

			Deferred Policy Acquisition Costs
			Fixed Index Annuities and Fixed Rate Annuities
			(Dollars in thousands)
Pre-adoption 1/1/2021 balance			$	2,225,199
Adjustments for the removal of shadow adjustments			1,183,306
Post adoption 1/1/2021 balance			$	3,408,505

The following tables present the balances and changes in deferred policy acquisition costs:

			Nine Months Ended September 30, 2023
			Fixed Index Annuities						Fixed Rate Annuities						Single Premium Immediate Annuities						Total
			(Dollars in thousands)
Balance, beginning of period			$	2,649,322					$	120,105					$	4,216					$	2,773,643
Capitalizations			350,302						16,586						45						366,933
Amortization expense			(184,710)						(22,069)						(493)						(207,272)
Balance, end of period			$	2,814,914					$	114,622					$	3,768					$	2,933,304

			Year Ended December 31, 2022
			Fixed Index Annuities						Fixed Rate Annuities						Single Premium Immediate Annuities						Total
			(Dollars in thousands)
Balance, beginning of period			$	2,906,684					$	151,322					$	4,198					$	3,062,204
Write-off related to in-force ceded reinsurance			(196,417)						(7,209)						—						(203,626)
Capitalizations			193,989						4,424						663						199,076
Amortization expense			(254,934)						(28,432)						(645)						(284,011)
Balance, end of period			$	2,649,322					$	120,105					$	4,216					$	2,773,643

Deferred Sales Inducements

			Deferred Sales Inducements
			Fixed Index Annuities and Fixed Rate Annuities
			(Dollars in thousands)
Pre-adoption 1/1/2021 balance			$	1,448,375
Adjustments for the removal of shadow adjustments			768,310
Post adoption 1/1/2021 balance			$	2,216,685

The following tables present the balances and changes in deferred sales inducements:

			Nine Months Ended September 30, 2023
			Fixed Index Annuities						Fixed Rate Annuities						Total
			(Dollars in thousands)
Balance, beginning of period			$	2,017,960					$	27,723					$	2,045,683
Capitalizations			353,220						67						353,287
Amortization expense			(139,568)						(2,338)						(141,906)
Balance, end of period			$	2,231,612					$	25,452					$	2,257,064

			Year Ended December 31, 2022
			Fixed Index Annuities						Fixed Rate Annuities						Total
			(Dollars in thousands)
Balance, beginning of period			$	2,088,591					$	31,370					$	2,119,961
Capitalizations			107,684						8						107,692
Amortization expense			(178,315)						(3,655)						(181,970)
Balance, end of period			$	2,017,960					$	27,723					$	2,045,683

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