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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

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,
			2023												2022
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in thousands)
Assets
Fixed maturity securities, available for sale			$	34,780,482					$	34,780,482					$	39,804,617					$	39,804,617
Mortgage loans on real estate			7,537,594						7,047,993						6,949,027						6,502,463
Real estate investments			1,334,247						1,336,247						1,056,063						1,056,063
Limited partnerships and limited liability companies			506,685						506,685						684,835						684,835
Derivative instruments			1,207,288						1,207,288						431,727						431,727
Other investments			2,277,822						2,277,822						1,817,085						1,817,085
Cash and cash equivalents			9,772,586						9,772,586						1,919,669						1,919,669
Coinsurance deposits			14,582,728						13,570,942						13,254,956						12,640,797
Market risk benefits			479,694						479,694						229,871						229,871
Liabilities
Policy benefit reserves			60,549,922						56,366,631						58,419,911						55,572,896
Market risk benefits			3,146,554						3,146,554						2,455,492						2,455,492
Single premium immediate annuity (SPIA) benefit reserves			188,301						196,720						212,119						221,130
Other policy funds - FHLB			—						—						300,000						300,000
Notes and loan payable			785,443						770,570						792,073						774,220
Subordinated debentures			79,107						86,254						78,753						87,293

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, 2023 and 2022 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, 2023
Assets
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	171,141					$	—					$	27,593					$	143,548					$	—
States, municipalities and territories			3,098,940						—						—						2,876,723						222,217
Foreign corporate securities and foreign governments			493,739						—						—						493,739						—
Corporate securities			20,603,416						—						—						20,347,979						255,437
Residential mortgage backed securities			1,402,501						—						—						1,402,501						—
Commercial mortgage backed securities			2,952,547						—						—						2,952,547						—
Other asset backed securities			6,058,198						—						—						4,467,224						1,590,974
Other investments			1,795,511						—						875,596						919,915						—
Real estate investments			1,217,271						—						—						—						1,217,271
Limited partnerships and limited liability companies			506,685						353,554						—						—						153,131
Derivative instruments			1,207,288						—						—						1,207,288						—
Cash and cash equivalents			9,772,586						—						9,772,586						—						—
Market risk benefits (a)			479,694						—						—						—						479,694
			$	49,759,517					$	353,554					$	10,675,775					$	34,811,464					$	3,918,724
Liabilities
Funds withheld liability - embedded derivative			$	(256,776)					$	—					$	—					$	—					$	(256,776)
Fixed index annuities - embedded derivatives			5,181,894						—						—						—						5,181,894
Market risk benefits (a)			3,146,554						—						—						—						3,146,554
			$	8,071,672					$	—					$	—					$	—					$	8,071,672
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						—						—
Market risk benefits (a)			229,871						—						—						—						229,871
			$	45,024,575					$	620,626					$	2,344,133					$	39,979,911					$	2,079,905
Liabilities
Funds withheld liability - embedded derivative			$	(441,864)					$	—					$	—					$	—					$	(441,864)
Fixed index annuities - embedded derivatives			4,820,845						—						—						—						4,820,845
Market risk benefits (a)			2,455,492						—						—						—						2,455,492
			$	6,834,473					$	—					$	—					$	—					$	6,834,473

(a)See Note 8 - Policyholder Liabilities for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as significant inputs and assumptions used in the fair value measurements of market risk benefits.

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, 2023 and 2022:

			Year Ended   December 31,
			2023						2022
			(Dollars in thousands)
Fixed maturity securities, available for sale - States, municipalities and territories
Beginning balance			$	—					$	—
Purchases and sales, net			—						—
Transfers in			203,757						—
Transfers out			(2,001)						—
Total realized/unrealized gains (losses)
Included in net income			—						—
Included in other comprehensive income (loss)			20,461						—
Ending balance			$	222,217					$	—
Fixed maturity securities, available for sale - Corporate securities
Beginning balance			$	402,348					$	—
Purchases and sales, net			(45,187)						2,233
Transfers in			82,866						391,702
Transfers out			(172,174)						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(12,416)						8,413
Ending balance			$	255,437					$	402,348
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance			$	442,918					$	—
Purchases and sales, net			1,071,824						296,800
Transfers in			160,160						153,669
Transfers out			(20,817)						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(63,111)						(7,551)
Ending balance			$	1,590,974					$	442,918
Other investments
Beginning balance			$	—					$	6,349
Transfers in			9,821						—
Transfers out			(23,244)						(3,867)
Total realized/unrealized gains (losses):
Included in net income			—						(2,482)
Included in other comprehensive income (loss)			13,423						—
Ending balance			$	—					$	—
Real estate investments
Beginning balance			$	940,559					$	337,939
Purchases and sales, net			313,235						602,298
Change in fair value			(36,523)						322
Ending balance			$	1,217,271					$	940,559

			Year Ended   December 31,
			2023						2022
			(Dollars in thousands)
Limited partnerships and limited liability companies
Beginning balance			$	64,209					$	—
Purchases and sales, net			99,963						57,574
Change in fair value			(11,041)						6,635
Ending balance			$	153,131					$	64,209
Funds withheld liability - embedded derivative
Beginning balance			$	(441,864)					$	—
Transfers in			—						(441,864)
Change in fair value			185,088						—
Ending balance			$	(256,776)					$	(441,864)
Fixed index annuities - embedded derivatives
Beginning balance			$	4,820,845					$	7,964,961
Premiums less benefits			(177,559)						(125,940)
Change in fair value, net			538,608						(2,561,676)
Reserve release related to in-force ceded reinsurance			—						(456,500)
Ending balance			$	5,181,894					$	4,820,845

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, 2023 and 2022:

			Year Ended   December 31,
			2023						2022
			(Dollars in thousands)
Fixed maturity securities, available for sale - States, municipalities and territories
Beginning balance			$	—					$	—
Purchases and sales, net			—						—
Transfers in			203,757						—
Transfers out			(2,001)						—
Total realized/unrealized gains (losses)
Included in net income			—						—
Included in other comprehensive income (loss)			20,461						—
Ending balance			$	222,217					$	—
Fixed maturity securities, available for sale - Corporate securities
Beginning balance			$	402,348					$	—
Purchases and sales, net			(45,187)						2,233
Transfers in			82,866						391,702
Transfers out			(172,174)						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(12,416)						8,413
Ending balance			$	255,437					$	402,348
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance			$	442,918					$	—
Purchases and sales, net			1,071,824						296,800
Transfers in			160,160						153,669
Transfers out			(20,817)						—
Total realized/unrealized gains (losses):
Included in net income			—						—
Included in other comprehensive income (loss)			(63,111)						(7,551)
Ending balance			$	1,590,974					$	442,918
Other investments
Beginning balance			$	—					$	6,349
Transfers in			9,821						—
Transfers out			(23,244)						(3,867)
Total realized/unrealized gains (losses):
Included in net income			—						(2,482)
Included in other comprehensive income (loss)			13,423						—
Ending balance			$	—					$	—
Real estate investments
Beginning balance			$	940,559					$	337,939
Purchases and sales, net			313,235						602,298
Change in fair value			(36,523)						322
Ending balance			$	1,217,271					$	940,559

			Year Ended   December 31,
			2023						2022
			(Dollars in thousands)
Limited partnerships and limited liability companies
Beginning balance			$	64,209					$	—
Purchases and sales, net			99,963						57,574
Change in fair value			(11,041)						6,635
Ending balance			$	153,131					$	64,209
Funds withheld liability - embedded derivative
Beginning balance			$	(441,864)					$	—
Transfers in			—						(441,864)
Change in fair value			185,088						—
Ending balance			$	(256,776)					$	(441,864)
Fixed index annuities - embedded derivatives
Beginning balance			$	4,820,845					$	7,964,961
Premiums less benefits			(177,559)						(125,940)
Change in fair value, net			538,608						(2,561,676)
Reserve release related to in-force ceded reinsurance			—						(456,500)
Ending balance			$	5,181,894					$	4,820,845

Quantitative Information About Level 3 Fair Value Measurements

The following table provides quantitative information about the significant unobservable inputs used for recurring fair value measurements categorized within Level 3, excluding investments where third party valuation inputs were not reasonably available. The market risk benefits are also excluded from the table. See Note 8 - Policyholder Liabilities for information on the unobservable inputs used in the fair value measurements of market risk benefits. See discussion of the valuation technique and significant unobservable inputs used for the embedded derivative component of our fixed index annuities in the Fixed index annuities-embedded derivatives paragraph below.

December 31, 2023

Assets / (Liabilities) Measured at Fair Value

Valuation Techniques(s)

Unobservable Input Description

Input / Range of Inputs

Weighted Average

Assets:

(in thousands)

Fixed maturity securities:

Corporate securities

$

83,666

Discounted cash flow

Liquidity premium

20 basis points

Other asset backed securities

591,992

Discounted cash flow

Discount rate

5.26%

25.00%

6.92%

Weighted average lives

1.14 years

12.09 years

5.69 years

Real estate investments

1,217,271

Broker price opinion (a)

Limited partnerships and limited

46,705

Discounted cash flow

Residual capitalization rate

5.25%

5.25%

5.25%

liability companies - real estate

Discount rate

6.50%

6.75%

6.61%

Limited partnerships and limited

106,426

Discounted cash flow

Discount rate

11.00%

11.00%

11.00%

liability companies - infrastructure

December 31, 2022

Assets / (Liabilities) Measured at Fair Value

Valuation Techniques(s)

Unobservable Input Description

Input / Range of Inputs

Weighted Average

Assets:

(in thousands)

Fixed maturity securities:

Corporate securities

$

84,674

Discounted cash flow

Liquidity premium

20 basis points

Other asset backed securities

296,800

Discounted cash flow

Discount rate

4.04%

28.58%

4.36%

Weighted average lives

8.79 years

12.48 years

9.29 years

Real estate investments

940,559

Discounted cash flow

Residual capitalization rate

4.75%

6.50%

5.44%

Discount rate

6.00%

8.00%

6.91%

Limited partnerships and limited

64,209

Discounted cash flow

Residual capitalization rate

4.25%

4.75%

4.46%

liability companies - real estate

Discount rate

5.75%

6.00%

5.86%

(a)At December 31, 2023, we updated our valuation technique for real estate investments. See description of valuation technique, inputs and reason for update in the Real estate investments paragraph below.

Fair Value Measurements, Nonrecurring

The following table presents financial instruments included in Other investments which are not measured at fair value on a recurring basis and fall within Level 2 of the fair value hierarchy.

			December 31,
			2023						2022
			(Dollars in thousands)
FHLB common stock (1)			$	10,000					$	22,000
Short-term loans (2)			—						316,417
Collateral loans (3)			64,594						64,594
Company owned life insurance ("COLI") (4)			404,598						397,683

(1)FHLB common stock is carried at cost which approximates fair value.

(2)Due to the short-term nature of the investments, the fair value of a portion of our short-term loans approximates the carrying value.

(3)For certain of our collateral loans, we have concluded the carrying value approximates fair value.

(4)The fair value of our COLI approximates the cash surrender value of the policies.

Schedule of Assumptions Used in Estimating Fair Value

The following table presents average lapse 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
Contract Duration (Years)						December 31, 2023						December 31, 2022
1 - 5						1.96%						2.17%
6 - 10						3.71%						3.28%
11 - 15						3.71%						3.63%
16 - 20						8.97%						8.55%
20+						4.91%						4.90%

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