Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

Our income tax expense as presented in the consolidated financial statements is summarized as follows:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Consolidated statements of operations:
Current income taxes	$	20,209	$	332	$	3,430
Deferred income taxes	490,926		149,431		141,071
Total income tax expense included in consolidated statements of operations	511,135		149,763		144,501
Stockholders' equity:
Expense (benefit) relating to:
Adoption of expected credit loss model	—		—		(2,543)
Changes in other comprehensive income	(1,843,635)		207,353		225,746
Total income tax expense included in consolidated financial statements	$	(1,332,500)	$	357,116	$	367,704

Effective Income Tax Rate Reconciliation

Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rates of 21% for the years ended December 31, 2022, 2021, and 2020 as follows:

	Year Ended December 31,
	2022			2021			2020
	(Dollars in thousands)
Income before income taxes	$	2,431,712		$	702,786		$	815,961
Income tax expense on income before income taxes	$	510,660		$	147,585		$	171,352
Tax effect of:
State income taxes	2,564			5,239			5,749
Tax exempt net investment income	(4,065)			(4,715)			(4,602)
Tax rate differential on net operating loss carryback	—			—			(30,041)
Other	1,976			1,654			2,043
Income tax expense	$	511,135		$	149,763		$	144,501
Effective tax rate	21.0		%	21.3		%	17.7		%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2022 and 2021, are as follows:

	December 31,
	2022		2021
	(Dollars in thousands)
Deferred income tax assets:
Policy benefit reserves	$	—	$	445,793
Credit losses/impairments	10,531		15,275
Net unrealized losses on available for sale fixed maturity securities	1,063,441		—
Amounts due reinsurer	1,030,759		748,812
Other policyholder funds	358		3,332
Deferred compensation	3,866		3,434
Share-based compensation	422		5,171
Net operating loss carryforwards	50,913		87,314
Other	71,417		1,140
Gross deferred tax assets	2,231,707		1,310,271
Deferred income tax liabilities:
Deferred policy acquisition costs and deferred sales inducements	(976,103)		(1,051,900)
Net unrealized gains on available for sale fixed maturity securities	—		(905,050)
Derivative instruments	(145,785)		(107,717)
Policy benefit reserves	(612,454)		(98,616)
Investment income items	(39,309)		(56,285)
Other	(19,622)		(5,120)
Gross deferred tax liabilities	(1,793,273)		(2,224,688)
Net deferred income tax asset (liability)	$	438,434	$	(914,417)