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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Annuity Deposits (Net of Coinsurance), By Product Type

Annuity deposits (net of coinsurance) collected in 2023, 2022 and 2021, by product type were as follows:

						Year Ended December 31,
Product Type						2023						2022						2021
						(Dollars in thousands)
Fixed index annuities						$	5,041,981					$	2,202,688					$	3,026,211
Annual reset fixed rate annuities						4,898						5,535						6,000
Multi-year fixed rate annuities						176,415						139,092						2,452,994
Single premium immediate annuities (SPIA)						1,224						18,935						59,816
						$	5,224,518					$	2,366,250					$	5,545,021

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 years ended December 31, 2023 and 2022 is as follows:

			Present Value of Expected Future Policy Benefits
			December 31,
			2023						2022
			(Dollars in thousands)
Balance, beginning of year			$	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			(1,887)						(1,941)
Adjusted beginning of year balance			335,959						352,044
Issuances			6,945						16,072
Interest accrual			13,710						14,664
Derecognition (lapses and benefit payments)			(38,980)						(40,327)
Ending balance at original discount rate			317,634						342,453
Effect of changes in discount rate assumptions			(14,434)						(23,776)
Balance, end of year			$	303,200					$	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:

			December 31,
			2023						2022
			(Dollars in thousands)
Liability for future policy benefits			$	303,200					$	318,677
Deferred profit liability			22,455						19,223
Liability for future policy benefits included in policy benefit reserves			325,655						337,900
Less: Reinsurance recoverable			(2,496)						(1,259)
Net liability for future policy benefits, after reinsurance recoverable			$	323,159					$	336,641

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

			December 31,
			2023						2022
SPIA With Life Contingency:
Weighted-average liability duration of the liability for future policy benefits (years)			6.56						6.78

The amount of revenue and interest associated with the liability for future policy benefits recognized in the Consolidated Statement of Operations for the years ended December 31, 2023 and 2022 is as follows:

			December 31, 2023												December 31, 2022
			Gross Premiums or Assessments						Interest Expense						Gross Premiums or Assessments						Interest Expense
			(Dollars in thousands)
SPIA With Life Contingency			$	7,608					$	13,626					$	16,994					$	14,613
Total			$	7,608					$	13,626					$	16,994					$	14,613

The weighted-average interest rate is as follows:

			December 31,
			2023						2022
Interest accretion rate			4.26		%				4.25		%
Current discount rate			5.00		%				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 net market risk benefit (MRB) assets and liabilities for the years ended December 31, 2023 and 2022 is as follows:

			December 31, 2023												December 31, 2022
			Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
			(Dollars in thousands)
Balance, beginning of year			$	37,863					$	2,187,758					$	78,411					$	2,557,378
Balance, beginning of year, before effect of changes in the instrument-specific credit risk			44,355						2,453,169						77,731						2,310,437
Issuances			32						289,939						376						59,452
Interest accrual			3,139						155,512						1,349						72,551
Attributed fees collected			1,216						128,437						1,270						125,168
Benefits payments			—						—						—						—
Effect of changes in interest rates			(380)						(126,255)						(19,421)						(952,265)
Effect of changes in equity markets			—						(48,164)						—						186,618
Effect of changes in equity index volatility			—						(77,023)						—						241,563
Effect of changes in future expected policyholder behavior			(1,509)						(11,582)						602						46,567
Effect of changes in other future expected assumptions			16,720						(219,094)						(17,552)						363,078
Balance, end of year, before effect of changes in the instrument-specific credit			63,573						2,544,939						44,355						2,453,169
Effect of changes in the instrument-specific credit risk			(3,386)						61,734						(6,492)						(265,411)
Balance, end of year			60,187						2,606,673						37,863						2,187,758
Reinsured MRB, end of period			18,391						640,826						10,656						593,959
Balance, end of period, net of reinsurance			$	41,796					$	1,965,847					$	27,207					$	1,593,799
Net amount at risk (a)			$	266,438					$	11,721,734					$	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 Market risk benefit asset and Market risk benefit reserves, respectively, in the Consolidated Balance Sheets:

			December 31, 2023
			Asset						Liability						Net Liability
			(Dollars in thousands)
Fixed Index Annuities			$	477,306					$	3,083,979					$	2,606,673
Fixed Rate Annuities			2,388						62,575						60,187
Total			$	479,694					$	3,146,554					$	2,666,860
			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 benefit assets and liabilities associated with fixed index annuities for the years ended December 31, 2023 and 2022:

			December 31, 2023												December 31, 2022
			Fixed Rate Annuities						Fixed Index Annuities						Fixed Rate Annuities						Fixed Index Annuities
			(Dollars in thousands)
Balance, beginning of year			$	10,656					$	593,959					$	—					$	156,931
Write-off related to in-force ceded reinsurance			—						—						10,091						334,835
Issuances			—						146,898						—						36,036
Interest accrual			775						33,503						104						7,598
Attributed fees collected			67						32,036						28						23,745
Benefits payments			—						—						—						—
Effect of changes in interest rates			1,407						14,700						135						(171,948)
Effect of changes in equity markets			—						(22,775)						118						43,799
Effect of changes in equity index volatility			—						(18,656)						—						34,278
Effect of changes in future expected policyholder behavior			(128)						5,855						180						12,598
Effect of changes in other future expected assumptions			5,614						(144,694)						—						116,087
Balance, end of year			$	18,391					$	640,826					$	10,656					$	593,959
Net amount at risk (a)			$	75,281					$	2,853,318					$	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:

			December 31, 2023
			Asset						Liability						Net Asset
			(Dollars in thousands)
Fixed Index Annuities			$	820,006					$	179,180					$	640,826
Fixed Rate Annuities			18,628						237						18,391
Total			$	838,634					$	179,417					$	659,217
			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

Rollforward of 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:

			December 31, 2023
			Fixed Index Annuities						Fixed Rate Annuities						Single Premium Immediate Annuities						Total
			(Dollars in thousands)
Balance, beginning of year			$	2,649,322					$	120,105					$	4,216					$	2,773,643
Capitalizations			557,749						18,536						52						576,337
Amortization expense			(249,607)						(29,454)						(639)						(279,700)
Balance, end of year			$	2,957,464					$	109,187					$	3,629					$	3,070,280
			December 31, 2022
			Fixed Index Annuities						Fixed Rate Annuities						Single Premium Immediate Annuities						Total
			(Dollars in thousands)
Balance, beginning of year			$	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 year			$	2,649,322					$	120,105					$	4,216					$	2,773,643

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, 2023
			Fixed Index Annuities						Fixed Rate Annuities						Total
			(Dollars in thousands)
Balance, beginning of year			$	2,017,960					$	27,723					$	2,045,683
Capitalizations			513,726						67						513,793
Amortization expense			(189,200)						(3,052)						(192,252)
Balance, end of year			$	2,342,486					$	24,738					$	2,367,224
			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

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