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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Annuity Deposits (Net of Coinsurance), By Product Type

Annuity deposits (net of coinsurance) collected in 2022, 2021 and 2020, by product type were as follows:

						Year Ended December 31,
Product Type						2022						2021						2020
						(Dollars in thousands)
Fixed index annuities						$	2,202,688					$	3,026,211					$	2,309,580
Annual reset fixed rate annuities						5,535						6,000						7,846
Multi-year fixed rate annuities						139,092						2,452,994						1,295,843
Single premium immediate annuities (SPIA)						18,935						59,816						33,461
						$	2,366,250					$	5,545,021					$	3,646,730

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 the years ended December 31, 2022 and 2021 is as follows:

			Present Value of Expected Future Policy Benefits
			December 31,
			2022						2021
			(Dollars in thousands)
Balance, beginning of year			$	402,305					$	384,510
Beginning balance at original discount rate			352,708						315,793
Effect of changes in cash flow assumptions			1,277						7,892
Effect of actual variances from expected experience			(1,941)						(1,908)
Adjusted beginning of year balance			352,044						321,777
Issuances			16,072						55,229
Interest accrual			14,664						14,819
Benefit payments			—						—
Net premiums collected			—						—
Derecognition (lapses)			(40,327)						(39,117)
Ending balance at original discount rate			342,453						352,708
Effect of changes in discount rate assumptions			(23,776)						49,597
Balance, end of year			$	318,677					$	402,305

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:

			December 31,
			2022						2021
			(Dollars in thousands)
Liability for future policy benefits			$	318,677					$	402,305
Deferred profit liability			19,223						18,716
			337,900						421,021
Less: Reinsurance recoverable			(1,259)						(1,283)
Net liability for future policy benefits, after reinsurance recoverable			$	336,641					$	419,738

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

			December 31,
			2022						2021
SPIA With Life Contingency:
Weighted-average liability duration of the liability for future policy benefits (years)			6.78						7.57

The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the the years ended December 31, 2022 and 2021 is as follows:

			December 31, 2022												December 31, 2021
			Gross Premiums or Assessments						Interest Expense						Gross Premiums or Assessments						Interest Expense
			(Dollars in thousands)
SPIA With Life Contingency			$	16,994					$	14,613					$	53,778					$	14,777
Total			$	16,994					$	14,613					$	53,778					$	14,777

The weighted-average interest rate is as follows:

			December 31,
			2022						2021
Interest accretion rate			4.25		%				4.29		%
Current discount rate			5.37		%				1.74		%

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 balance			$	2,225,484

			Ceded Market Risk Benefit
			(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

The balances of and changes in the liability for market risk benefits (MRB) for the years ended December 31, 2022 and 2021 is as follows:

			December 31, 2022												December 31, 2021
			Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
			(Dollars in thousands)
MRB Liability
Balance, beginning of year			$	78,411					$	2,557,378					$	73,904					$	2,294,129
Balance, beginning of year, before effect of changes in the instrument-specific credit risk			77,731						2,310,437						74,371						2,064,555
Issuances			376						59,452						23						22,836
Interest accrual			1,349						72,551						986						39,614
Attributed fees collected			1,270						125,168						1,326						122,756
Benefits payments			—						—						—						—
Effect of changes in interest rates			(19,421)						(952,265)						(4,091)						(206,055)
Effect of changes in equity markets			—						186,618						—						(151,145)
Effect of changes in equity index volatility			—						241,563						—						(57,940)
Actual policyholder behavior different from expected behavior			—						—						—						—
Effect of changes in future expected policyholder behavior			602						46,567						369						142,713
Effect of changes in other future expected assumptions			(17,552)						363,078						4,747						333,103
Balance, end of year, before effect of changes in the instrument-specific credit			44,355						2,453,169						77,731						2,310,437
Effect of changes in the instrument-specific credit risk			(6,492)						(265,411)						680						246,941
Balance, end of year			37,863						2,187,758						78,411						2,557,378
Reinsured MRB, end of period			10,656						593,959						—						156,931
Balance, end of period, net of reinsurance			$	27,207					$	1,593,799					$	78,411					$	2,400,447
Net amount at risk (a)			$	258,826					$	10,987,198					$	239,995					$	10,001,385
Weighted average attained age of contract holders (years)			69						71						69						70

(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 liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets:

			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
			December 31, 2021
			Asset						Liability						Net Liability
			(Dollars in thousands)
Fixed Index Annuities			$	520,566					$	3,077,944					$	2,557,378
Fixed Rate Annuities			5,807						84,218						78,411
Total			$	526,373					$	3,162,162					$	2,635,789

The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the years ended December 31, 2022 and 2021:

			December 31, 2022												December 31, 2021
			Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
			(Dollars in thousands)
Ceded MRB
Balance, beginning of year			$	—					$	156,931					$	—					$	90,022
Inception of in-force ceded reinsurance			10,091						334,835						—						100,327
Issuances			—						36,036						—						915
Interest accrual			104						7,598						—						414
Attributed fees collected			28						23,745						—						9,904
Benefits payments			—						—						—						—
Effect of changes in interest rates			135						(171,948)						—						1,601
Effect of changes in equity markets			118						43,799						—						(6,148)
Effect of changes in equity index volatility			—						34,278						—						(9,074)
Actual policyholder behavior different from expected behavior			—						—						—						—
Effect of changes in future expected policyholder behavior			180						12,598						—						16,878
Effect of changes in other future expected assumptions			—						116,087						—						(47,908)
Balance, end of year			$	10,656					$	593,959					$	—					$	156,931
Net amount at risk (a)			$	72,350					$	2,402,964					$	—					$	582,315
Weighted average attained age of contract holders (years)			70						71						0.00						69

(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:

			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
			December 31, 2021
			Asset						Liability						Net Asset
			(Dollars in thousands)
Fixed Index Annuities			$	250,046					$	93,115					$	156,931
Fixed Rate Annuities			—						—						—
Total			$	250,046					$	93,115					$	156,931

Rollforward of 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:

			December 31, 2022
			Fixed Index Annuities						Fixed Rate Annuities						Total
			(Dollars in thousands)
Balance, beginning of year			$	2,088,591					$	31,371					$	2,119,962
Capitalizations			107,684						7						107,691
Amortization expense			(178,315)						(3,655)						(181,970)
Balance, end of year			$	2,017,960					$	27,723					$	2,045,683
			December 31, 2021
			Fixed Index Annuities						Fixed Rate Annuities						Total
			(Dollars in thousands)
Balance, beginning of year			$	2,180,980					$	35,705					$	2,216,685
Capitalizations			95,104						57						95,161
Amortization expense			(187,493)						(4,391)						(191,884)
Balance, end of year			$	2,088,591					$	31,371					$	2,119,962

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