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Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

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:

			March 31, 2024												December 31, 2023
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in thousands)
Assets
Fixed maturity securities, available for sale			$	32,044,379					$	32,044,379					$	34,780,482					$	34,780,482
Mortgage loans on real estate			7,281,831						6,777,489						7,537,594						7,047,993
Real estate investments			1,363,604						1,382,633						1,334,247						1,336,247
Limited partnerships and limited liability companies			501,084						501,084						506,685						506,685
Derivative instruments			1,617,000						1,617,000						1,207,288						1,207,288
Other investments			1,624,752						1,624,752						2,277,822						2,277,822
Cash and cash equivalents			13,495,847						13,495,847						9,772,586						9,772,586
Coinsurance deposits			14,743,795						13,671,767						14,582,728						13,570,942
Market risk benefits			524,598						524,598						479,694						479,694
Liabilities
Policy benefit reserves			60,638,086						56,103,251						60,549,922						56,366,631
Market risk benefits			3,122,918						3,122,918						3,146,554						3,146,554
Single premium immediate annuity (SPIA) benefit reserves			181,348						189,677						188,301						196,720
Notes and loan payable			783,791						775,660						785,443						770,570
Subordinated debentures			79,200						86,095						79,107						86,254

Assets and Liabilities Measured at Fair Value 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 March 31, 2024 and December 31, 2023 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)
March 31, 2024
Assets
Fixed maturity securities, available for sale:
U.S. Government and agencies			$	27,137					$	—					$	17,068					$	10,069					$	—
States, municipalities and territories			2,816,974						—						—						2,612,223						204,751
Foreign corporate securities and foreign governments			433,008						—						—						433,008						—
Corporate securities			19,264,788						—						—						19,054,472						210,316
Residential mortgage backed securities			995,130						—						—						972,609						22,521
Commercial mortgage backed securities			2,734,085						—						—						2,734,085						—
Other asset backed securities			5,773,257						—						—						3,488,452						2,284,805
Other investments			351,142						—						140,458						60,683						150,001
Real estate investments			1,248,703						—						—						—						1,248,703
Limited partnerships and limited liability companies			501,084						358,429						—						—						142,655
Derivative instruments			1,617,000						—						—						1,617,000						—
Cash and cash equivalents			13,495,847						—						13,495,847						—						—
Market risk benefits (a)			524,598						—						—						—						524,598
			$	49,782,753					$	358,429					$	13,653,373					$	30,982,601					$	4,788,350
Liabilities
Funds withheld liability - embedded derivative			$	(298,254)					$	—					$	—					$	—					$	(298,254)
Fixed index annuities - embedded derivatives			5,273,407						—						—						—						5,273,407
Market risk benefits (a)			3,122,918						—						—						—						3,122,918
			$	8,098,071					$	—					$	—					$	—					$	8,098,071
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

(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 three months ended March 31, 2024 and 2023:

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Fixed maturity securities, available for sale - States, municipalities and territories
Beginning balance															$	222,217					$	—
Purchases and sales, net															—						—
Transfers in															15,220						97,659
Transfers out															—						—
Total realized/unrealized gains (losses)
Included in net income															—						—
Included in other comprehensive income (loss)															(32,686)						—
Ending balance															$	204,751					$	97,659
Fixed maturity securities, available for sale - Corporate securities
Beginning balance															$	255,437					$	402,348
Purchases and sales, net															23,369						(26,278)
Transfers in															2,396						347
Transfers out															(69,454)						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															(1,432)						(1,120)
Ending balance															$	210,316					$	375,297
Fixed maturity securities, available for sale - Residential mortgage backed securities
Beginning balance															$	—					$	—
Purchases and sales, net															—						—
Transfers in															22,521						—
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															—						—
Ending balance															$	22,521					$	—
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance															$	1,590,974					$	442,918
Purchases and sales, net															697,098						227,032
Transfers in															24,210						130,502
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															(27,477)						7,776
Ending balance															$	2,284,805					$	808,228
Other investments
Beginning balance															$	—					$	—
Transfers in															150,001						—
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															—						—
Ending balance															$	150,001					$	—

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Real estate investments
Beginning balance															$	1,217,271					$	940,559
Purchases and sales, net															36,155						120,908
Change in fair value															(4,723)						(7,836)
Ending balance															$	1,248,703					$	1,053,631
Limited partnerships and limited liability companies
Beginning balance															$	153,131					$	64,209
Purchases and sales, net															(1,635)						94,137
Change in fair value															(8,841)						5,981
Ending balance															$	142,655					$	164,327
Funds withheld liability - embedded derivative
Beginning balance															$	(256,776)					$	(441,864)
Transfers in															—						—
Change in fair value															(41,478)						64,380
Ending balance															$	(298,254)					$	(377,484)
Fixed index annuities - embedded derivatives
Beginning balance															$	5,181,894					$	4,820,845
Premiums less benefits															15,845						(121,181)
Change in fair value, net															75,668						205,469
Ending balance															$	5,273,407					$	4,905,133

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 three months ended March 31, 2024 and 2023:

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Fixed maturity securities, available for sale - States, municipalities and territories
Beginning balance															$	222,217					$	—
Purchases and sales, net															—						—
Transfers in															15,220						97,659
Transfers out															—						—
Total realized/unrealized gains (losses)
Included in net income															—						—
Included in other comprehensive income (loss)															(32,686)						—
Ending balance															$	204,751					$	97,659
Fixed maturity securities, available for sale - Corporate securities
Beginning balance															$	255,437					$	402,348
Purchases and sales, net															23,369						(26,278)
Transfers in															2,396						347
Transfers out															(69,454)						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															(1,432)						(1,120)
Ending balance															$	210,316					$	375,297
Fixed maturity securities, available for sale - Residential mortgage backed securities
Beginning balance															$	—					$	—
Purchases and sales, net															—						—
Transfers in															22,521						—
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															—						—
Ending balance															$	22,521					$	—
Fixed maturity securities, available for sale - Other asset backed securities
Beginning balance															$	1,590,974					$	442,918
Purchases and sales, net															697,098						227,032
Transfers in															24,210						130,502
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															(27,477)						7,776
Ending balance															$	2,284,805					$	808,228
Other investments
Beginning balance															$	—					$	—
Transfers in															150,001						—
Transfers out															—						—
Total realized/unrealized gains (losses):
Included in net income															—						—
Included in other comprehensive income (loss)															—						—
Ending balance															$	150,001					$	—

									Three Months Ended   March 31,
															2024						2023
															(Dollars in thousands)
Real estate investments
Beginning balance															$	1,217,271					$	940,559
Purchases and sales, net															36,155						120,908
Change in fair value															(4,723)						(7,836)
Ending balance															$	1,248,703					$	1,053,631
Limited partnerships and limited liability companies
Beginning balance															$	153,131					$	64,209
Purchases and sales, net															(1,635)						94,137
Change in fair value															(8,841)						5,981
Ending balance															$	142,655					$	164,327
Funds withheld liability - embedded derivative
Beginning balance															$	(256,776)					$	(441,864)
Transfers in															—						—
Change in fair value															(41,478)						64,380
Ending balance															$	(298,254)					$	(377,484)
Fixed index annuities - embedded derivatives
Beginning balance															$	5,181,894					$	4,820,845
Premiums less benefits															15,845						(121,181)
Change in fair value, net															75,668						205,469
Ending balance															$	5,273,407					$	4,905,133

Quantitative Information, 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.

March 31, 2024

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

$

83,513

Discounted cash flow

Liquidity premium

20 basis points

Other asset backed securities

1,399,798

Discounted cash flow

Discount rate

3.20%

25.00%

6.44%

Weighted average lives

1.13 years

11.77 years

4.39 years

Real estate investments

1,248,703

Broker price opinion

Limited partnerships and limited

32,974

Discounted cash flow

Residual capitalization rate

5.19%

5.45%

5.32%

liability companies - real estate

Discount rate

6.50%

6.75%

6.63%

Limited partnerships and limited

109,681

Discounted cash flow

Discount rate

10.75%

10.75%

10.75%

liability companies - infrastructure

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

(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.

			March 31, 2024						December 31, 2023
			(Dollars in thousands)
FHLB common stock (1)			$	10,000					$	10,000
Collateral loans (2)			853,457						64,594
Company owned life insurance ("COLI") (3)			406,859						404,598

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

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

(3)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)						March 31, 2024						December 31, 2023
1 - 5						1.92%						1.96%
6 - 10						3.84%						3.71%
11 - 15						3.73%						3.71%
16 - 20						8.43%						8.97%
20+						4.92%						4.91%

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

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Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration