OFFSETTING OF ASSETS AND LIABILITIES

Certain of the Company’s derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company’s repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 10, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

The tables below present the assets and liabilities subject to master netting agreements as of September 30, 2017:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	441,393	$	—	$	441,393	$	211,435	$	102,913	$	127,045
Total derivatives, subject to a master netting arrangement or similar arrangement	441,393		—		441,393		211,435		102,913		127,045
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,008		—		1,008		—		—		1,008
Embedded derivative - GLWB	129,344		—		129,344		—		—		129,344
Other	191		—		191		—		—		191
Total derivatives, not subject to a master netting arrangement or similar arrangement	130,543		—		130,543		—		—		130,543
Total derivatives	571,936		—		571,936		211,435		102,913		257,588
Total Assets	$	571,936	$	—	$	571,936	$	211,435	$	102,913	$	257,588



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	230,082	$	—	$	230,082	$	211,435	$	18,647	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	230,082		—		230,082		211,435		18,647		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	209,334		—		209,334		—		—		209,334
Embedded derivative - GLWB	260,620		—		260,620		—		—		260,620
Embedded derivative - FIA	197,378		—		197,378		—		—		197,378
Embedded derivative - IUL	69,081		—		69,081		—		—		69,081
Total derivatives, not subject to a master netting arrangement or similar arrangement	736,413		—		736,413		—		—		736,413
Total derivatives	966,495		—		966,495		211,435		18,647		736,413
Repurchase agreements⁽¹⁾	493,785		—		493,785		—		—		493,785
Total Liabilities	$	1,460,280	$	—	$	1,460,280	$	211,435	$	18,647	$	1,230,198

(1) Borrowings under repurchase agreements are for a term less than 90 days.

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2016:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Assets
Derivatives:
Free-Standing derivatives	$	417,769	$	—	$	417,769	$	171,384	$	100,890	$	145,495
Total derivatives, subject to a master netting arrangement or similar arrangement	417,769		—		417,769		171,384		100,890		145,495
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,573		—		2,573		—		—		2,573
Embedded derivative - GLWB	121,752		—		121,752		—		—		121,752
Other	149		—		149		—		—		149
Total derivatives, not subject to a master netting arrangement or similar arrangement	124,474		—		124,474		—		—		124,474
Total derivatives	542,243		—		542,243		171,384		100,890		269,969
Total Assets	$	542,243	$	—	$	542,243	$	171,384	$	100,890	$	269,969



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position				Financial Instruments		Collateral Posted		Net Amount
	(Dollars In Thousands)
Offsetting of Liabilities
Derivatives:
Free-Standing derivatives	$	176,979	$	—	$	176,979	$	171,384	$	5,595	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	176,979		—		176,979		171,384		5,595		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	141,301		—		141,301		—		—		141,301
Embedded derivative - GLWB	237,122		—		237,122		—		—		237,122
Embedded derivative - FIA	147,368		—		147,368		—		—		147,368
Embedded derivative - IUL	46,051		—		46,051		—		—		46,051
Total derivatives, not subject to a master netting arrangement or similar arrangement	571,842		—		571,842		—		—		571,842
Total derivatives	748,821		—		748,821		171,384		5,595		571,842
Repurchase agreements⁽¹⁾	797,721		—		797,721		—		—		797,721
Total Liabilities	$	1,546,542	$	—	$	1,546,542	$	171,384	$	5,595	$	1,369,563

(1) Borrowings under repurchase agreements are for a term less than 90 days.