SIGNIFICANT TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2016

Summary of fair values of the net assets acquired

The following table summarizes the fair values of the net assets acquired as of the acquisition date:



	Fair Value As of December 1, 2016
	(Dollars in Thousands)
Assets
Fixed maturities	$	10,592
Other long-term investments	2,340
Cash	122,167
Accrued investment income	52
Accounts and premiums receivables	18,536
Reinsurance receivable	9,397
Value of businesses acquired	5,079
Goodwill	61,027
Other intangibles	70,400
Property and equipment	390
Accrued income taxes	4,161
Other assets	40
Total assets	304,181
Liabilities
Unearned premiums	$	82,757
Other policyholders' funds	21,483
Other liabilities	24,951
Deferred income taxes	38,929
Total liabilities	168,120
Net assets acquired	$	136,061

The following table summarizes the consideration paid for the acquisition and the preliminary determination of the fair value of assets acquired and liabilities assumed at the Merger date:



	Fair Value
	As of
	February 1, 2015
	(Dollars In Thousands)
Assets
Fixed maturities	$	38,363,025
Equity securities	745,512
Mortgage loans	5,580,229
Investment real estate	7,456
Policy loans	1,751,872
Other long-term investments	686,507
Short-term investments	316,167
Total investments	47,450,768
Cash	462,710
Accrued investment income	484,021
Accounts and premiums receivable	112,182
Reinsurance receivables	5,724,020
Value of business acquired	1,276,886
Goodwill	735,712
Other intangibles	683,000
Property and equipment	104,364
Other assets	120,762
Income tax receivable	15,458
Assets related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total assets	$	70,959,658
Liabilities
Future policy and benefit claims	$	30,195,841
Unearned premiums	682,183
Total policy liabilities and accruals	30,878,024
Stable value product account balances	1,932,277
Annuity account balances	10,941,661
Other policyholders' funds	1,388,083
Other liabilities	2,188,863
Deferred income taxes	1,535,556
Non-recourse funding obligations	621,798
Repurchase program borrowings	50,000
Debt	1,519,211
Subordinated debt securities	560,351
Liabilities related to separate accounts
Variable annuity	12,970,587
Variable universal life	819,188
Total liabilities	65,405,599
Net assets acquired	$	5,554,059

Schedule of intangible assets recognized

Intangible assets recognized by the Company included the following (excluding goodwill):



	Estimated
	Fair Value on		Estimated
	Acquisition Date		Useful Life
	(Dollars In Thousands)		(In Years)
Distribution relationships	$	65,000	13-21
Trade names	1,400		5-6
Technology	4,000		8-11
Total intangible assets	$	70,400

Schedule of future estimated aggregate amortization expense

The following is a schedule of future estimated aggregate amortization expense:



Year	Amount
	(Dollars In Thousands)
2017	$	52,199
2018	51,210
2019	47,929
2020	46,461
2021	46,311

Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of future estimated aggregate amortization expense:



Year	Amount
	(Dollars In Thousands)
2017	$	4,843
2018	4,843
2019	4,843
2020	4,843
2021	4,843

Pro forma information

The following (unaudited) pro forma condensed consolidated results of operations assumes that the acquisition of US Warranty was completed as of January 1, 2015:



	Successor Company
	For The Year Ended December 31, 2016		February 1, 2015 to December 31, 2015
	(Dollars In Thousands)
Revenue⁽¹⁾	$	4,532,292	$	3,753,700
Net income⁽²⁾	393,277		268,479


(1)	Includes $4.7 million of revenue recognized in the Company's net income for year ended December 31, 2016 (Successor Company).


(2)	Includes $0.2 million of net income recognized in the Company's net income for the year ended December 31, 2016 (Successor Company).