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INVESTMENT OPERATIONS (Tables)
 12 Months Ended
Dec. 31, 2017
INVESTMENT OPERATIONS [Abstract]  
Summary of major categories of net investment income
Major categories of net investment income are summarized as follows:
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended
December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
1,631,565

 
$
1,552,999

 
$
1,267,900

 
$
140,104

Equity securities
39,806

 
38,838

 
40,907

 
2,572

Mortgage loans
298,387

 
270,749

 
252,577

 
24,977

Investment real estate
2,481

 
2,153

 
2,528

 
112

Short-term investments
108,476

 
106,828

 
93,982

 
9,713

 
2,080,715

 
1,971,567

 
1,657,894

 
177,478

Other investment expenses
29,127

 
29,111

 
24,946

 
2,298

Net investment income
$
2,051,588

 
$
1,942,456

 
$
1,632,948

 
$
175,180
Summary of net realized investment gains (losses) for all other investments
Net realized investment gains (losses) for all other investments are summarized as follows:
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
12,941

 
$
32,210

 
$
1,282

 
$
6,891

Equity securities
(2,330
)
 
92

 
(1,001
)
 
—

Impairments on securities
(11,742
)
 
(17,748
)
 
(26,993
)
 
(481
)
Modco trading portfolio
119,206

 
67,583

 
(167,359
)
 
73,062

Other investments
(8,389
)
 
(9,226
)
 
192

 
1,200

Total realized gains (losses)—investments
$
109,686

 
$
72,911

 
$
(193,879
)
 
$
80,672

Gross realized gains and gross realized losses on investments available-for-sale (fixed maturities, equity securities, and short-term investments) are as follows:
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended
December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Gross realized gains
$
18,868

 
$
42,085

 
$
8,745

 
$
6,920

Gross realized losses:


 


 


 


Impairments losses
$
(11,742
)
 
$
(17,748
)
 
$
(26,993
)
 
$
(481
)
Other realized losses
$
(8,257
)
 
$
(9,783
)
 
$
(8,463
)
 
$
12
Schedule of investments' gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position
The chart below summarizes the fair value (proceeds) and the gains/losses realized on securities the Company sold that were in an unrealized gain position and an unrealized loss position.
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Securities in an unrealized gain position:
 
 
 
 
 
 
 
Fair value (proceeds)
$
879,181

 
$
1,198,333

 
$
950,874

 
$
172,551

Gains realized
$
18,868

 
$
42,085

 
$
8,745

 
$
6,920

 
 
 
 
 
 
 
 
Securities in an unrealized loss
position(1):
 
 
 
 
 
 
 
Fair value (proceeds)
$
185,157

 
$
85,835

 
$
178,415

 
$
435

Losses realized
$
(8,257
)
 
$
(9,783
)
 
$
(8,463
)
 
$
(29
)
 
 
 
 
 
 
 
 
(1) The Company made the decision to exit these holdings in conjunction with its overall asset liability management process.
The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017 (Successor Company):
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(Dollars In Thousands)
Residential mortgage-backed securities
$
766,599

 
$
(9,671
)
 
$
416,221

 
$
(13,362
)
 
$
1,182,820

 
$
(23,033
)
Commercial mortgage-backed securities
757,471

 
(8,592
)
 
796,456

 
(21,594
)
 
1,553,927

 
(30,186
)
Other asset-backed securities
86,506

 
(322
)
 
134,316

 
(5,441
)
 
220,822

 
(5,763
)
U.S. government-related securities
94,110

 
(688
)
 
1,072,232

 
(31,489
)
 
1,166,342

 
(32,177
)
Other government-related securities
24,830

 
(169
)
 
115,294

 
(4,778
)
 
140,124

 
(4,947
)
States, municipalities, and political subdivisions
170,268

 
(1,738
)
 
1,027,747

 
(43,874
)
 
1,198,015

 
(45,612
)
Corporate securities
5,054,316

 
(55,795
)
 
10,962,689

 
(472,394
)
 
16,017,005

 
(528,189
)
Redeemable preferred stock
22,048

 
(1,120
)
 
23,197

 
(2,383
)
 
45,245

 
(3,503
)
Equities
86,586

 
(1,401
)
 
91,195

 
(7,370
)
 
177,781

 
(8,771
)
 
$
7,062,734

 
$
(79,496
)
 
$
14,639,347

 
$
(602,685
)
 
$
21,702,081

 
$
(682,181
)
The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2016 (Successor Company):
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
(Dollars In Thousands)
Residential mortgage-backed securities
$
1,060,569

 
$
(21,550
)
 
$
170,826

 
$
(4,117
)
 
$
1,231,395

 
$
(25,667
)
Commercial mortgage-backed securities
1,452,146

 
(37,665
)
 
100,475

 
(4,013
)
 
1,552,621

 
(41,678
)
Other asset-backed securities
323,706

 
(9,291
)
 
176,792

 
(11,407
)
 
500,498

 
(20,698
)
U.S. government-related securities
1,237,942

 
(40,454
)
 
3

 
(1
)
 
1,237,945

 
(40,455
)
Other government-related securities
98,412

 
(2,907
)
 
79,393

 
(11,890
)
 
177,805

 
(14,797
)
States, municipalities, and political subdivisions
1,062,368

 
(63,809
)
 
548,254

 
(41,749
)
 
1,610,622

 
(105,558
)
Corporate securities
12,553,514

 
(469,189
)
 
9,793,579

 
(1,114,729
)
 
22,347,093

 
(1,583,918
)
Redeemable preferred Stock
66,781

 
(6,642
)
 
19,062

 
(1,877
)
 
85,843

 
(8,519
)
Equities
411,845

 
(15,273
)
 
69,497

 
(6,412
)
 
481,342

 
(21,685
)
 
$
18,267,283

 
$
(666,780
)
 
$
10,957,881

 
$
(1,196,195
)
 
$
29,225,164

 
$
(1,862,975
)
Schedule of amortized cost and fair value of the Company's investments classified as available-for-sale
The amortized cost and fair value of the Company's investments classified as available-for-sale are as follows:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI(1)
 
(Dollars In Thousands)
Successor Company
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 

 
 

 
 

 
 

 
 

Fixed maturities:
 

 
 

 
 

 
 

 
 

Residential mortgage-backed securities
$
2,330,832

 
$
19,413

 
$
(23,033
)
 
$
2,327,212

 
$
10

Commercial mortgage-backed securities
1,914,998

 
5,010

 
(30,186
)
 
1,889,822

 
—

Other asset-backed securities
1,234,376

 
20,936

 
(5,763
)
 
1,249,549

 
—

U.S. government-related securities
1,255,244

 
185

 
(32,177
)
 
1,223,252

 
—

Other government-related securities
282,767

 
9,463

 
(4,948
)
 
287,282

 
—

States, municipals, and political subdivisions
1,770,299

 
16,959

 
(45,613
)
 
1,741,645

 
(37
)
Corporate securities
29,606,484

 
623,713

 
(528,187
)
 
29,702,010

 
(1
)
Redeemable preferred stock
94,362

 
232

 
(3,503
)
 
91,091

 
—

 
38,489,362

 
695,911

 
(673,410
)
 
38,511,863

 
(28
)
Equity securities
735,569

 
22,318

 
(8,771
)
 
749,116

 
—

Short-term investments
558,949

 
—

 
—

 
558,949

 
—

 
$
39,783,880

 
$
718,229

 
$
(682,181
)
 
$
39,819,928

 
$
(28
)
As of December 31, 2016
 

 
 

 
 

 
 

 
 

Fixed maturities:
 

 
 

 
 

 
 

 
 

Residential mortgage-backed securities
$
1,913,413

 
$
10,737

 
$
(25,667
)
 
$
1,898,483

 
$
(9
)
Commercial mortgage-backed securities
1,850,620

 
2,528

 
(41,678
)
 
1,811,470

 
—

Other asset-backed securities
1,210,490

 
21,741

 
(20,698
)
 
1,211,533

 
—

U.S. government-related securities
1,308,192

 
422

 
(40,455
)
 
1,268,159

 
—

Other government-related securities
253,182

 
1,536

 
(14,797
)
 
239,921

 
—

States, municipals, and political subdivisions
1,760,837

 
1,224

 
(105,558
)
 
1,656,503

 
—

Corporate securities
28,801,768

 
153,715

 
(1,583,918
)
 
27,371,565

 
(11,030
)
Redeemable preferred stock
94,362

 
—

 
(8,519
)
 
85,843

 
—

 
37,192,864

 
191,903

 
(1,841,290
)
 
35,543,477

 
(11,039
)
Equity securities
761,340

 
7,751

 
(21,685
)
 
747,406

 
—

Short-term investments
279,782

 
—

 
—

 
279,782

 
—

 
$
38,233,986

 
$
199,654

 
$
(1,862,975
)
 
$
36,570,665

 
$
(11,039
)
(1)
These amounts are included in the gross unrealized gains and gross unrealized losses columns above.
Schedule of Fair Value of Trading Securities
The fair value of the Company's investments classified as trading are as follows:
 
 
Successor Company
 
 
As of December 31,
 
 
2017
 
2016
 
 
(Dollars In Thousands)
Fixed maturities - trading:
 
 

 
 

Residential mortgage-backed securities
 
$
259,694

 
$
255,027

Commercial mortgage-backed securities
 
146,804

 
149,683

Other asset-backed securities
 
138,097

 
200,084

U.S. government-related securities
 
27,234

 
26,961

Other government-related securities
 
63,925

 
63,012

States, municipals, and political subdivisions
 
326,925

 
316,519

Corporate securities
 
1,698,183

 
1,624,589

Redeemable preferred stock
 
3,327

 
3,985

 
 
2,664,189

 
2,639,860

Equity securities
 
5,244

 
7,083

Short-term investments
 
56,261

 
52,648

 
 
$
2,725,694

 
$
2,699,591
Schedule of amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities, by expected maturity
The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of December 31, 2017 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment.
 
Available-for-sale
 
Held-to-maturity
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Due in one year or less
$
723,923

 
$
723,435

 
$
—

 
$
—

Due after one year through five years
6,657,059

 
6,639,380

 
—

 
—

Due after five years through ten years
7,475,095

 
7,481,482

 
—

 
—

Due after ten years
23,633,285

 
23,667,566

 
2,718,904

 
2,776,327

 
$
38,489,362

 
$
38,511,863

 
$
2,718,904

 
$
2,776,327
Gain (Loss) on Investments
The chart below summarizes the Company's other-than-temporary impairments of investments. All of the impairments were related to fixed maturities or equity securities.
 
 
Fixed
Maturities
 
Equity
Securities
 
Total
Securities
 
 
(Dollars In Thousands)
For The Year Ended December 31, 2017 (Successor Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairments
 
$
(1,332
)
 
$
(2,630
)
 
$
(3,962
)
Non-credit impairment losses recorded in other comprehensive income
 
(7,780
)
 
—

 
(7,780
)
Net impairment losses recognized in earnings
 
$
(9,112
)
 
$
(2,630
)
 
$
(11,742
)
 
 
 
 
 
 
 
For The Year Ended December 31, 2016 (Successor Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairments
 
$
(32,075
)
 
$
—

 
$
(32,075
)
Non-credit impairment losses recorded in other comprehensive income
 
14,327

 
—

 
14,327

Net impairment losses recognized in earnings
 
$
(17,748
)
 
$
—

 
$
(17,748
)
 
 
 
 
 
 
 
For The Period of February 1, 2015 to December 31, 2015 (Successor Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairments
 
$
(28,659
)
 
$
—

 
$
(28,659
)
Non-credit impairment losses recorded in other comprehensive income
 
1,666

 
—

 
1,666

Net impairment losses recognized in earnings
 
$
(26,993
)
 
$
—

 
$
(26,993
)
 
 
 
 
 
 
 
For The Period of January 1, 2015 to January 31, 2015 (Predecessor Company)
 
 
 
 
 
 
 
 
 
 
 
 
 
Other-than-temporary impairments
 
$
(636
)
 
$
—

 
$
(636
)
Non-credit impairment losses recorded in other comprehensive income
 
155

 
—

 
155

Net impairment losses recognized in earnings
 
$
(481
)
 
$
—

 
$
(481
)
Schedule of available-for-sale credit losses on fixed maturities held by the Company for which a portion of other-than-temporary impairments were recognized in other comprehensive income (loss)
The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss):
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Beginning balance
$
12,685

 
$
22,761

 
$
—

 
$
15,478

Additions for newly impaired securities
734

 
14,876

 
22,761

 
—

Additions for previously impaired securities
3,175

 
2,063

 
—

 
221

Reductions for previously impaired securities due to a change in expected cash flows
(12,726
)
 
(24,396
)
 
—

 
—

Reductions for previously impaired securities that were sold in the current period
(600
)
 
(2,619
)
 
—

 
—

Other
—

 
—

 
—

 
—

Ending balance
$
3,268

 
$
12,685

 
$
22,761

 
$
15,699
Summary of change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale
The change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale is summarized as follows:
 
Successor Company
 
Predecessor Company
 
For The Year Ended
December 31, 2017
 
For The Year Ended December 31, 2016
 
February 1, 2015
to
December 31, 2015
 
January 1, 2015
to
January 31, 2015
 
(Dollars In Thousands)
 
(Dollars In Thousands)
Fixed maturities
$
1,086,727

 
$
802,368

 
$
(1,874,469
)
 
$
670,229

Equity securities
17,863

 
(13,463
)
 
4,406

 
10,226
Schedule of Amortized Cost and Fair Value of the Company's Investments Classified as Held-to-Maturity
The amortized cost and fair value of the Company’s investments classified as held-to-maturity as of December 31, 2017 (Successor Company) and December 31, 2016 (Successor Company), are as follows:
 
Successor Company
 
Amortized
Cost
 
Gross
Unrecognized
Holding
Gains
 
Gross
Unrecognized
Holding
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI
As of December 31, 2017
 
 
 
 
 
 
 
(Dollars In Thousands)
Fixed maturities:
 
 

 
 

 
 

 
 

 
 

Securities issued by affiliates:
 
 
 
 
 
 
 
 
 
 
Red Mountain LLC
 
$
704,904

 
$
—

 
$
(19,163
)
 
$
685,741

 
$
—

Steel City LLC
 
2,014,000

 
76,586

 
—

 
2,090,586

 
—

 
 
$
2,718,904

 
$
76,586

 
$
(19,163
)
 
$
2,776,327

 
$
—

Successor Company
 
Amortized
Cost
 
Gross
Unrecognized
Holding
Gains
 
Gross
Unrecognized
Holding
Losses
 
Fair
Value
 
Total OTTI
Recognized
in OCI
As of December 31, 2016
 
 
 
 
 
 
 
(Dollars In Thousands)
Fixed maturities:
 
 

 
 

 
 

 
 

 
 

Securities issued by affiliates:
 
 
 
 
 
 
 
 
 
 
Red Mountain LLC
 
$
654,177

 
$
—

 
$
(67,222
)
 
$
586,955

 
$
—

Steel City LLC
 
2,116,000

 
30,385

 
—

 
2,146,385

 
—

 
 
$
2,770,177

 
$
30,385

 
$
(67,222
)
 
$
2,733,340

 
$
—