FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,896,401	$	3	$	1,896,404
Commercial mortgage-backed securities	—		1,688,000		25,607		1,713,607
Other asset-backed securities	—		648,687		553,229		1,201,916
U.S. government-related securities	1,070,116		241,063		—		1,311,179
State, municipalities, and political subdivisions	—		1,727,261		—		1,727,261
Other government-related securities	—		18,532		—		18,532
Corporate securities	—		28,125,577		753,396		28,878,973
Preferred stock	74,522		19,252		—		93,774
Total fixed maturity securities - available-for-sale	1,144,638		34,364,773		1,332,235		36,841,646
Fixed maturity securities - trading
Residential mortgage-backed securities	—		264,142		—		264,142
Commercial mortgage-backed securities	—		157,152		—		157,152
Other asset-backed securities	—		117,380		145,833		263,213
U.S. government-related securities	32,143		4,735		—		36,878
State, municipalities, and political subdivisions	—		340,983		—		340,983
Other government-related securities	—		60,774		—		60,774
Corporate securities	—		1,655,812		5,699		1,661,511
Preferred stock	3,788		—		—		3,788
Total fixed maturity securities - trading	35,931		2,600,978		151,532		2,788,441
Total fixed maturity securities	1,180,569		36,965,751		1,483,767		39,630,087
Equity securities	667,517		36		69,750		737,303
Other long-term investments(1)	316,007		270,661		70,051		656,719
Short-term investments	173,066		7,632		—		180,698
Total investments	2,337,159		37,244,080		1,623,568		41,204,807
Cash	621,344		—		—		621,344
Other assets	21,393		—		—		21,393
Assets related to separate accounts
Variable annuity	13,164,747		—		—		13,164,747
Variable universal life	868,818		—		—		868,818
Total assets measured at fair value on a recurring basis	$	17,013,461	$	37,244,080	$	1,623,568	$	55,881,109
Liabilities:
Annuity account balances(2)	$	—	$	—	$	88,857	$	88,857
Other liabilities (1)	102,318		27,422		939,271		1,069,011
Total liabilities measured at fair value on a recurring basis	$	102,318	$	27,422	$	1,028,128	$	1,157,868

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,765,270	$	3	$	1,765,273
Commercial mortgage-backed securities	—		1,286,887		—		1,286,887
Other asset-backed securities	—		210,020		587,031		797,051
U.S. government-related securities	1,054,353		477,824		—		1,532,177
State, municipalities, and political subdivisions	—		1,603,600		—		1,603,600
Other government-related securities	—		17,740		—		17,740
Corporate securities	83		24,941,584		902,119		25,843,786
Preferred stock	43,073		19,614		—		62,687
Total fixed maturity securities - available-for-sale	1,097,509		30,322,539		1,489,153		32,909,201
Fixed maturity securities - trading
Residential mortgage-backed securities	—		286,658		—		286,658
Commercial mortgage-backed securities	—		146,743		—		146,743
Other asset-backed securities	—		122,511		152,912		275,423
U.S. government-related securities	233,592		4,755		—		238,347
State, municipalities, and political subdivisions	—		313,354		—		313,354
Other government-related securities	—		58,827		—		58,827
Corporate securities	—		1,322,276		18,225		1,340,501
Preferred stock	2,794		1,402		—		4,196
Total fixed maturity securities - trading	236,386		2,256,526		171,137		2,664,049
Total fixed maturity securities	1,333,895		32,579,065		1,660,290		35,573,250
Equity securities	656,437		13,063		69,763		739,263
Other long-term investments ⁽¹⁾	113,699		141,487		96,830		352,016
Short-term investments	261,947		6,771		—		268,718
Total investments	2,365,978		32,740,386		1,826,883		36,933,247
Cash	396,072		—		—		396,072
Other assets	19,099		—		—		19,099
Assets related to separate accounts
Variable annuity	12,829,188		—		—		12,829,188
Variable universal life	827,610		—		—		827,610
Total assets measured at fair value on a recurring basis	$	16,437,947	$	32,740,386	$	1,826,883	$	51,005,216
Liabilities:
Annuity account balances ⁽²⁾	$	—	$	—	$	92,512	$	92,512
Other liabilities ⁽¹⁾	40,067		3,932		585,556		629,555
Total liabilities measured at fair value on a recurring basis	$	40,067	$	3,932	$	678,068	$	722,067

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of the Valuation Method for Material Financial Instruments Included in Level 3, as well as the Unobservable Inputs Used in the Valuation of the Financial Instruments

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:



	Successor Company
	Fair Value As of December 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	587,031	Discounted cash flow	Liquidity premium	0.27% - 1.49% (0.42%)
				Paydown rate	10.20% - 14.72% (13.11%)
Corporate securities	875,810		Discounted cash flow	Spread over	0.10% - 19.00% (2.61%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	181,612	Actuarial cash flow model	Mortality	1994 MGDB table with company
					experience
				Lapse	0.3% - 15%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have a one-time over-utilization of 400%
				Nonperformance risk	0.18% - 1.04%
Annuity account balances(2)	92,512		Actuarial cash flow model	Asset earned rate	4.53% - 5.67%
				Expenses	$81 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with company
					experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.18% - 1.04%
Embedded derivative - FIA	100,329		Actuarial cash flow model	Expenses	$81.50 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	1994 MGDB table with company
					experience
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.18% - 1.04%
Embedded derivative - IUL	29,629		Actuarial cash flow model	Mortality	38% - 153% of 2015
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.18% - 1.04%

(1)The fair value for the GMWB embedded derivative is presented as a net liability for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments:



	Successor Company
	Fair Value As of September 30, 2016		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	544,230	Discounted cash flow	Liquidity premium	0.44% - 1.19% (0.70%)
				Paydown rate	10.90% - 11.83% (11.18%)
Corporate securities	726,890		Discounted cash flow	Spread over Treasury	0.97% - 5.10% (2.11%)
Liabilities:
Embedded derivatives - GMWB(1)	$	429,732	Actuarial cash flow model	Mortality	91.1% to 106.6% of
					Ruark 2015 ALB table
				Lapse	0.3% - 15%, depending on
					product/duration/funded
					status of guarantee
				Utilization	99%. 10% of policies have a
					one-time over-utilization of
					400%
				Nonperformance risk	0.20% - 1.19%
Annuity account balances(2)	88,857		Actuarial cash flow model	Asset earned rate	4.02% - 5.76%
				Expenses	$126 per policy
				Withdrawal rate	2.20%
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					duration/surrender
					charge period
				Nonperformance risk	0.20% - 1.19%
Embedded derivative - FIA	141,651		Actuarial cash flow model	Expenses	$126 per policy
				Withdrawal rate	1% prior to age 70, 100% of the
					RMD for ages 70+
				Mortality	1994 MGDB table with
					company experience
				Lapse	2.0% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.20% - 1.19%
Embedded derivative - IUL	46,348		Actuarial cash flow model	Mortality	38% — 153% of 2015
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on
					duration/distribution channel
					and smoking class
				Nonperformance risk	0.20% - 1.19%

(1)The fair value for the GMWB embedded derivative is presented as a net liability for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of Reconciliation of the Beginning and Ending Balances for Fair Value Measurements, for which the Company has Used Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of February 1, 2015 to September 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):



			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Other asset-backed securities	603,646		—		165		(92		)	(17,076		)	—		(127		)	—		—		—			(765		)	585,751		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Corporate securities	1,307,259		4,367		21,558		(851		)	(33,047		)	174,112		(356,096		)	—		—		(61,890		)	(6,674		)	1,048,738		—
Total fixed maturity securities - available-for-sale	1,914,583		4,367		21,723		(943		)	(50,123		)	174,112		(359,898		)	—		—		(61,890		)	(7,439		)	1,634,492		—
Fixed maturity securities - trading
Other asset-backed securities	169,473		4,032		—		(6,813		)	—			2,000		(13,877		)	—		—		—			338			155,153		(6,896		)
Corporate securities	25,130		247		—		(1,269		)	—			—		(5,640		)	—		—		—			(149		)	18,319		(1,546		)
Total fixed maturity securities - trading	194,603		4,279		—		(8,082		)	—			2,000		(19,517		)	—		—		—			189			173,472		(8,442		)
Total fixed maturity securities	2,109,186		8,646		21,723		(9,025		)	(50,123		)	176,112		(379,415		)	—		—		(61,890		)	(7,250		)	1,807,964		(8,442		)
Equity securities	73,044		—		44		—			—			—		(231		)	—		—		—			(3,093		)	69,764		—
Other long-term investments⁽¹⁾	93,274		76,342		—		(74,413		)	—			—		—			—		—		—			—			95,203		1,929
Total investments	2,275,504		84,988		21,767		(83,438		)	(50,123		)	176,112		(379,646		)	—		—		(61,890		)	(10,343		)	1,972,931		(6,513		)
Total assets measured at fair value on a recurring basis	$	2,275,504	$	84,988	$	21,767	$	(83,438	)	$	(50,123	)	$	176,112	$	(379,646	)	$	—	$	—	$	(61,890	)	$	(10,343	)	$	1,972,931	$	(6,513	)
Liabilities:
Annuity account balances⁽²⁾	$	98,279	$	—	$	—	$	(4,716	)	$	—		$	—	$	—		$	179	$	7,976	$	—		$	—		$	95,198	$	—
Other liabilities⁽¹⁾	742,130		376,140		—		(242,370		)	—			—		—			—		—		—			—			608,360		133,770
Total liabilities measured at fair value on a recurring basis	$	840,409	$	376,140	$	—	$	(247,086	)	$	—		$	—	$	—		$	179	$	7,976	$	—		$	—		$	703,558	$	133,770

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the nine months ended September 30, 2016 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):



			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		7		—			—			25,607		—			—		—		—			(7		)	25,607		—
Other asset-backed securities	587,031		6,859		24,119		—			(21,426		)	9,597		(58,461		)	—		—		7,457			(1,947		)	553,229		—
Corporate securities	902,119		925		40,435		(4,135		)	(10,316		)	53,885		(107,866		)	—		—		(114,189		)	(7,462		)	753,396		—
Total fixed maturity securities - available-for-sale	1,489,153		7,784		64,561		(4,135		)	(31,742		)	89,089		(166,327		)	—		—		(106,732		)	(9,416		)	1,332,235		—
Fixed maturity securities - trading
Other asset-backed securities	152,912		5,310		—		(1,013		)	—			—		(11,578		)	—		—		172			30			145,833		4,294
Corporate securities	18,225		713		—		(259		)	—			10,908		(4,071		)	—		—		(19,722		)	(95		)	5,699		283
Total fixed maturity securities - trading	171,137		6,023		—		(1,272		)	—			10,908		(15,649		)	—		—		(19,550		)	(65		)	151,532		4,577
Total fixed maturity securities	1,660,290		13,807		64,561		(5,407		)	(31,742		)	99,997		(181,976		)	—		—		(126,282		)	(9,481		)	1,483,767		4,577
Equity securities	69,763		—		—		—			—			22		—			—		—		(36		)	1			69,750		—
Other long-term investments⁽¹⁾	96,830		22,620		—		(49,399		)	—			—		—			—		—		—			—			70,051		(26,779		)
Total investments	1,826,883		36,427		64,561		(54,806		)	(31,742		)	100,019		(181,976		)	—		—		(126,318		)	(9,480		)	1,623,568		(22,202		)
Total assets measured at fair value on a recurring basis	$	1,826,883	$	36,427	$	64,561	$	(54,806	)	$	(31,742	)	$	100,019	$	(181,976	)	$	—	$	—	$	(126,318	)	$	(9,480	)	$	1,623,568	$	(22,202	)
Liabilities:
Annuity account balances⁽²⁾	$	92,512	$	—	$	—	$	(1,831	)	$	—		$	—	$	—		$	529	$	7,264	$	—		$	1,249		$	88,857	$	—
Other liabilities⁽¹⁾	585,556		105,751		—		(459,466		)	—			—		—			—		—		—			—			939,271		(353,715		)
Total liabilities measured at fair value on a recurring basis	$	678,068	$	105,751	$	—	$	(461,297	)	$	—		$	—	$	—		$	529	$	7,264	$	—		$	1,249		$	1,028,128	$	(353,715	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):



			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																						Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3		Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	73,054		—		—		—			(10		)	—		—			—		—		—		—			73,044		—
Other long-term investments(1)	67,894		753		—		(25,902		)	—			—		—			—		—		—		—			42,745		(25,149		)
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,228,475		1,941		12,282		(26,237		)	(26,906		)	—		(7,586		)	—		—		43,205		(199		)	2,224,975		(24,296		)
Total assets measured at fair value on a recurring basis	$	2,228,475	$	1,941	$	12,282	$	(26,237	)	$	(26,906	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,224,975	$	(24,296	)
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	754,852		61		—		(253,773		)	—			—		—			—		—		—		—			1,008,564		(253,712		)
Total liabilities measured at fair value on a recurring basis	$	852,677	$	61	$	—	$	(254,309	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	1,106,513	$	(253,712	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended September 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):



			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Other asset-backed securities	590,885		—		—		—			(4,185		)	—		—			—		—		—			(949		)	585,751		—
Corporate securities	1,111,431		76		5,939		(164		)	(8,800		)	62,183		(101,161		)	—		—		(20,037		)	(729		)	1,048,738		—
Total fixed maturity securities - available-for-sale	1,702,319		76		5,939		(164		)	(12,985		)	62,183		(101,161		)	—		—		(20,037		)	(1,678		)	1,634,492		—
Fixed maturity securities - trading
Other asset-backed securities	160,594		83		—		(1,640		)	—			2,000		(6,001		)	—		—		—			117			155,153		(1,500		)
Corporate securities	19,316		73		—		(970		)	—			—		(56		)	—		—		—			(44		)	18,319		(897		)
Total fixed maturity securities - trading	179,910		156		—		(2,610		)	—			2,000		(6,057		)	—		—		—			73			173,472		(2,397		)
Total fixed maturity securities	1,882,229		232		5,939		(2,774		)	(12,985		)	64,183		(107,218		)	—		—		(20,037		)	(1,605		)	1,807,964		(2,397		)
Equity securities	69,720		—		44		—			—			—		—			—		—		—			—			69,764		—
Other long-term investments⁽¹⁾	169,596		—		—		(74,393		)	—			—		—			—		—		—			—			95,203		(74,393		)
Total investments	2,121,545		232		5,983		(77,167		)	(12,985		)	64,183		(107,218		)	—		—		(20,037		)	(1,605		)	1,972,931		(76,790		)
Total assets measured at fair value on a recurring basis	$	2,121,545	$	232	$	5,983	$	(77,167	)	$	(12,985	)	$	64,183	$	(107,218	)	$	—	$	—	$	(20,037	)	$	(1,605	)	$	1,972,931	$	(76,790	)
Liabilities:
Annuity account balances⁽²⁾	$	95,178	$	—	$	—	$	(3,173	)	$	—		$	—	$	—		$	93	$	3,246	$	—		$	—		$	95,198	$	—
Other liabilities⁽¹⁾	427,765		17,329		—		(197,924		)	—			—		—			—		—		—			—			608,360		(180,595		)
Total liabilities measured at fair value on a recurring basis	$	522,943	$	17,329	$	—	$	(201,097	)	$	—		$	—	$	—		$	93	$	3,246	$	—		$	—		$	703,558	$	(180,595	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended September 30, 2016 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):



			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses																							Total Gains (losses) included in
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance		Earnings related to Instruments still held at the Reporting Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		7		—			—			25,607		—			—		—		—			(7		)	25,607		—
Other asset-backed securities	533,141		—		23,350		—			(19		)	—		(12		)	—		—		—			(3,231		)	553,229		—
Corporate securities	783,143		—		9,324		—			(3,335		)	28,327		(26,001		)	—		—		(36,237		)	(1,825		)	753,396		—
Total fixed maturity securities - available-for-sale	1,316,287		—		32,681		—			(3,354		)	53,934		(26,013		)	—		—		(36,237		)	(5,063		)	1,332,235		—
Fixed maturity securities - trading
Other asset-backed securities	151,964		3,260		—		(71		)	—			—		(9,366		)	—		—		—			46			145,833		3,189
Corporate securities	16,587		381		—		—			—			—		—			—		—		(11,243		)	(26		)	5,699		42
Total fixed maturity securities - trading	168,551		3,641		—		(71		)	—			—		(9,366		)	—		—		(11,243		)	20			151,532		3,231
Total fixed maturity securities	1,484,838		3,641		32,681		(71		)	(3,354		)	53,934		(35,379		)	—		—		(47,480		)	(5,043		)	1,483,767		3,231
Equity securities	69,750		—		—		—			—			—		—			—		—		—			—			69,750		—
Other long-term investments⁽¹⁾	48,999		21,052		—		—			—			—		—			—		—		—			—			70,051		21,052
Total investments	1,603,587		24,693		32,681		(71		)	(3,354		)	53,934		(35,379		)	—		—		(47,480		)	(5,043		)	1,623,568		24,283
Total assets measured at fair value on a recurring basis	$	1,603,587	$	24,693	$	32,681	$	(71	)	$	(3,354	)	$	53,934	$	(35,379	)	$	—	$	—	$	(47,480	)	$	(5,043	)	$	1,623,568	$	24,283
Liabilities:
Annuity account balances⁽²⁾	$	88,820	$	—	$	—	$	(735	)	$	—		$	—	$	—		$	279	$	2,226	$	—		$	1,249		$	88,857	$	—
Other liabilities⁽¹⁾	972,084		90,166		—		(57,353		)	—			—		—			—		—		—			—			939,271		32,813
Total liabilities measured at fair value on a recurring basis	$	1,060,904	$	90,166	$	—	$	(58,088	)	$	—		$	—	$	—		$	279	$	2,226	$	—		$	1,249		$	1,028,128	$	32,813

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of the Carrying Amounts and Estimated Fair Value of the Company's Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of the periods shown below are as follows:



		Successor Company
		As of September 30, 2016				As of December 31, 2015
	Fair Value Level	Carrying Amounts		Fair Values		Carrying Amounts		Fair Values
		(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,912,683	$	5,946,153	$	5,662,812	$	5,529,803
Policy loans	3	1,656,083		1,656,083		1,699,508		1,699,508
Fixed maturities, held-to-maturity ⁽¹⁾	3	2,775,230		2,894,615		593,314		515,000
Liabilities:
Stable value product account balances	3	$	3,412,041	$	3,436,797	$	2,131,822	$	2,124,712
Annuity account balances	3	10,679,011		10,288,929		10,719,862		10,274,571
Debt:
Bank borrowings	3	$	385,000	$	385,000	$	485,000	$	485,000
Senior Notes	2	1,000,284		967,622		1,103,806		1,020,025
Subordinated debt securities	2	443,122		452,335		448,763		457,275
Non-recourse funding obligations ⁽²⁾	3	2,800,886		2,919,604		685,684		614,380

Except as noted below, fair values were estimated using quoted market prices.

(1) Securities purchased from unconsolidated affiliates, Red Mountain LLC and Steel City LLC.

(2) Of this carrying amount, $2.7 billion, fair value of $2.9 billion, as of September 30, 2016 (Successor Company) and $500.0 million, fair value of $495.5 million, as of December 31, 2015 (Successor Company), relates to non-recourse funding obligations issued by Golden Gate and Golden Gate V.