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Derivative Instruments
12 Months Ended
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Instruments

5. Derivative Instruments

The Company uses derivatives to hedge its equity market exposure to index annuity products which are contracts that earn a return based on the change in the value of the S&P 500 index between annual index point dates. The Company buys and sells listed equity and index call options and call option spreads and there is no credit risk. The net premium is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair market value on the Company’s balance sheet. At December 31, 2018 and 2017, these derivative hedges had a net market value of  $0.2 million and $0.4 million, with notional amounts of  $12.7 million and $8.5 million on call options purchased and $8.8 million and $6.0 million on call options written, as of December 31, 2018 and 2017, respectively.