Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 18. Subsequent Events

On November 5, 2019, the Nebraska Department of Insurance (“NDOI”) approved the Funds Withheld Coinsurance and Modified Coinsurance Agreement (“SDA Agreement”) between American Life and SDA Annuity & Life Re (“SDA”), a Cayman Islands-domiciled reinsurance company.  The SDA Agreement closed on November 7, 2019. Under the SDA Agreement, American Life will cede to SDA, on a funds withheld coinsurance and modified coinsurance basis, an initial five (5%) quota share of certain liabilities with respect to its multi-year guaranteed annuity (“MYGA”) business. American Life will also cede to SDA, on a funds withheld coinsurance and modified coinsurance basis, an initial ninety-five (95%) quota share of certain liabilities with respect to its fixed indexed annuity (“FIA”) business through December 31, 2019 and thirty (30%) thereafter. American Life has established two accounts to hold the assets for the SDA Agreement, a SDA Funds Withheld Account and a SDA Modco Deposit Account.

In addition, a trust account was established on November 7, 2019 among American Life, SDA and Wells Fargo Bank, National Association for the sole benefit of American Life to fund the SDA Funds Withheld Account and the SDA Modco Deposit Account for any shortage in  required reserves.

The NDOI approved the inclusion of the SDA coinsurance in American Life’s September 30, 2019 statutory financials.