Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 7. Derivative Instruments

The Company entered into derivative instruments to hedge fixed indexed annuity products that guarantee the return of principal to the policyholders and credit interest based on a percentage of the gain in a specified market index. To hedge against adverse changes in equity indices, the Company entered into contracts to buy equity indexed options. The Company did not have any asset derivatives or embedded derivatives in policyholder contracts as of December 31, 2018.

The following is a summary of the asset derivatives not designated as hedges embedded derivatives in our FIA product as of December 31, 2019:


		December 31, 2019
Derivatives Not Designated	Location in the Consolidated	Notional		Number of	Estimated
as Hedging Instruments	Statement of Balance Sheets	Amount		Contracts	Fair Value
Equity-indexed options	Derivatives	$	9,698,863	24	$	575,294
Equity-indexed embedded derivative	Deposit-type contracts		10,720,324	108		576,634