FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

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 December 31, 2017 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities—available-for-sale
Residential mortgage-backed securities	$	—	$	2,327,212	$	—	$	2,327,212
Commercial mortgage-backed securities	—		1,889,822		—		1,889,822
Other asset-backed securities	—		745,184		504,365		1,249,549
U.S. government-related securities	958,775		264,477		—		1,223,252
State, municipalities, and political subdivisions	—		1,741,645		—		1,741,645
Other government-related securities	—		287,282		—		287,282
Corporate securities	—		29,075,109		626,901		29,702,010
Redeemable preferred stock	72,471		18,620		—		91,091
Total fixed maturity securities—available-for-sale	1,031,246		36,349,351		1,131,266		38,511,863
Fixed maturity securities—trading
Residential mortgage-backed securities	—		259,694		—		259,694
Commercial mortgage-backed securities	—		146,804		—		146,804
Other asset-backed securities	—		102,875		35,222		138,097
U.S. government-related securities	21,183		6,051		—		27,234
State, municipalities, and political subdivisions	—		326,925		—		326,925
Other government-related securities	—		63,925		—		63,925
Corporate securities	—		1,692,741		5,442		1,698,183
Redeemable preferred stock	3,327		—		—		3,327
Total fixed maturity securities—trading	24,510		2,599,015		40,664		2,664,189
Total fixed maturity securities	1,055,756		38,948,366		1,171,930		41,176,052
Equity securities	688,214		36		66,110		754,360
Other long-term investments(1)	51,102		417,969		136,004		605,075
Short-term investments	482,461		132,749		—		615,210
Total investments	2,277,533		39,499,120		1,374,044		43,150,697
Cash	252,310		—		—		252,310
Other assets	28,771		—		—		28,771
Assets related to separate accounts
Variable annuity	13,956,071		—		—		13,956,071
Variable universal life	1,035,202		—		—		1,035,202
Total assets measured at fair value on a recurring basis	$	17,549,887	$	39,499,120	$	1,374,044	$	58,423,051
Liabilities:
Annuity account balances(2)	$	—	$	—	$	83,472	$	83,472
Other liabilities(1)	5,755		240,927		760,890		1,007,572
Total liabilities measured at fair value on a recurring basis	$	5,755	$	240,927	$	844,362	$	1,091,044

(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, 2016 (Predecessor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities—available-for-sale
Residential mortgage-backed securities	$	—	$	1,898,480	$	3	$	1,898,483
Commercial mortgage-backed securities	—		1,811,470		—		1,811,470
Other asset-backed securities	—		648,929		562,604		1,211,533
U.S. government-related securities	1,002,020		266,139		—		1,268,159
State, municipalities, and political subdivisions	—		1,656,503		—		1,656,503
Other government-related securities	—		239,921		—		239,921
Corporate securities	—		26,707,519		664,046		27,371,565
Redeemable preferred stock	66,781		19,062		—		85,843
Total fixed maturity securities—available-for-sale	1,068,801		33,248,023		1,226,653		35,543,477
Fixed maturity securities—trading
Residential mortgage-backed securities	—		255,027		—		255,027
Commercial mortgage-backed securities	—		149,683		—		149,683
Other asset-backed securities	—		115,521		84,563		200,084
U.S. government-related securities	22,424		4,537		—		26,961
State, municipalities, and political subdivisions	—		316,519		—		316,519
Other government-related securities	—		63,012		—		63,012
Corporate securities	—		1,619,097		5,492		1,624,589
Redeemable preferred stock	3,985		—		—		3,985
Total fixed maturity securities—trading	26,409		2,523,396		90,055		2,639,860
Total fixed maturity securities	1,095,210		35,771,419		1,316,708		38,183,337
Equity securities	685,443		36		69,010		754,489
Other long-term investments(1)	82,420		335,498		124,325		542,243
Short-term investments	328,829		3,602		—		332,431
Total investments	2,191,902		36,110,555		1,510,043		39,812,500
Cash	348,182		—		—		348,182
Other assets	23,830		—		—		23,830
Assets related to separate accounts
Variable annuity	13,244,252		—		—		13,244,252
Variable universal life	895,925		—		—		895,925
Total assets measured at fair value on a recurring basis	$	16,704,091	$	36,110,555	$	1,510,043	$	54,324,689
Liabilities:
Annuity account balances(2)	$	—	$	—	$	87,616	$	87,616
Other liabilities(1)	13,004		163,974		571,843		748,821
Total liabilities measured at fair value on a recurring basis	$	13,004	$	163,974	$	659,459	$	836,437

(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, 2017		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	504,228	Liquidation	Liquidation value	$90 - $97 ($94.91)
			Discounted cash flow	Liquidity premium	0.06% - 1.17% (0.75%)
				Paydown rate	11.31% - 11.97% (11.54%)
Corporate securities	617,770		Discounted cash flow	Spread over treasury	0.81% - 3.95% (1.06%)
Liabilities:(1)
Embedded derivatives—GLWB(2)	$	111,760	Actuarial cash flow model	Mortality	91.1% to 106.6% of Ruark 2015 ALB table
				Lapse	1.0% - 30.0%, depending on product/duration/funded status of guarantee
				Utilization	99%. 10% of policies have a one-time over-utilization of 400%
				Nonperformance risk	0.11% - 0.79%
Embedded derivative—FIA	218,676		Actuarial cash flow model	Expenses	$146 per policy
				Withdrawal rate	1.5% prior to age 70, 100% of the RMD for ages 70+
				Mortality	1994 MGDB table with company experience
				Lapse	1.0% - 30.0%, depending on duration/surrender charge period
				Nonperformance risk	0.11% - 0.79%
Embedded derivative—IUL	80,212		Actuarial cash flow model	Mortality	34% - 152% of 2015
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending on duration/distribution channel and smoking class
				Nonperformance risk	0.11% - 0.79%

(1) Excludes modified coinsurance arrangements.

(2) The fair value for the GLWB embedded derivative is presented as a net liability.

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, 2016		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	553,308	Discounted cash flow	Liquidation value	$88 - $97.25 ($95.04)
Corporate securities	638,279		Discounted cash flow	Spread over treasury	0.31% - 4.50% (2.04%)
Liabilities:(1)
Embedded derivatives—GLWB(2)	$	115,370	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	0.18% - 1.09%
Embedded derivative—FIA	147,368		Actuarial cash flow model	Expenses	$126 per policy
				Asset Earned Rate	4.08% - 4.66%
				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	0.18% - 1.09%
Embedded derivative - IUL	46,051		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% - 1.09%

(1) Excludes modified coinsurance arrangements.

(2) The fair value for the GLWB embedded derivative is presented as a net liability.

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 year ended December 31, 2016 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date
			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses
	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
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		7		—			(1,750		)	25,607		—			—		—		(23,844		)	(20		)	—		—
Other asset-backed securities	587,031		6,859		42,865		—			(29,673		)	30,441		(79,314		)	—		—		7,457			(3,062		)	562,604		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	902,119		925		40,574		(4,135		)	(33,151		)	102,426		(225,557		)	—		—		(109,792		)	(9,363		)	664,046		—
Total fixed maturity securities— available-for-sale	1,489,153		7,784		83,446		(4,135		)	(64,574		)	158,474		(304,871		)	—		—		(126,179		)	(12,445		)	1,226,653		—
Fixed maturity securities—trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	152,912		5,386		—		(4,790		)	—			—		(70,270		)	—		—		172			1,153			84,563		594
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	18,225		713		—		(442		)	—			10,906		(4,071		)	—		—		(19,722		)	(117		)	5,492		101
Total fixed maturity securities—trading	171,137		6,099		—		(5,232		)	—			10,906		(74,341		)	—		—		(19,550		)	1,036			90,055		695
Total fixed maturity securities	1,660,290		13,883		83,446		(9,367		)	(64,574		)	169,380		(379,212		)	—		—		(145,729		)	(11,409		)	1,316,708		695
Equity securities	69,763		—		—		(740		)	—			23		—			—		—		(36		)	—			69,010		—
Other long-term investments(1)	96,830		77,108		—		(49,613		)	—			—		—			—		—		—			—			124,325		27,495
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	1,826,883		90,991		83,446		(59,720		)	(64,574		)	169,403		(379,212		)	—		—		(145,765		)	(11,409		)	1,510,043		28,190
Total assets measured at fair value on a recurring basis	$	1,826,883	$	90,991	$	83,446	$	(59,720	)	$	(64,574	)	$	169,403	$	(379,212	)	$	—	$	—	$	(145,765	)	$	(11,409	)	$	1,510,043	$	28,190
Liabilities:
Annuity account balances(2)	$	92,512	$	—	$	—	$	(3,144	)	$	—		$	—	$	—		$	555	$	9,844	$	—		$	1,249		$	87,616	$	—
Other liabilities(1)	585,556		499,894		—		(486,181		)	—			—		—			—		—		—			—			571,843		13,713
Total liabilities measured at fair value on a recurring basis	$	678,068	$	499,894	$	—	$	(489,325	)	$	—		$	—	$	—		$	555	$	9,844	$	—		$	1,249		$	659,459	$	13,713

(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 year ended December 31, 2017 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date
			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses
	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
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	83	$	—		$	—		$	11,862	$	(3	)	$	—	$	—	$	(11,944	)	$	(1	)	$	—	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	562,604		1,409		15,136		—			(10,931		)	100		(59,175		)	—		—		(6,643		)	1,865			504,365		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	664,046		—		27,637		—			(13,089		)	131,822		(169,002		)	—		—		(10,353		)	(4,160		)	626,901		—
Total fixed maturity securities— available-for-sale	1,226,653		1,409		42,856		—			(24,020		)	143,784		(228,180		)	—		—		(28,940		)	(2,296		)	1,131,266		—
Fixed maturity securities—trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	84,563		3,768		—		(1,157		)	—			—		(52,835		)	—		—		—			883			35,222		3,483
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	5,492		101		—		(58		)	—			—		—			—		—		—			(93		)	5,442		44
Total fixed maturity securities—trading	90,055		3,869		—		(1,215		)	—			—		(52,835		)	—		—		—			790			40,664		3,527
Total fixed maturity securities	1,316,708		5,278		42,856		(1,215		)	(24,020		)	143,784		(281,015		)	—		—		(28,940		)	(1,506		)	1,171,930		3,527
Equity securities	69,010		2		52		(2,630		)	(53		)	—		(274		)	—		—		3			—			66,110		3
Other long-term investments(1)	124,325		27,158		—		(15,479		)	—			—		—			—		—		—			—			136,004		11,679
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	1,510,043		32,438		42,908		(19,324		)	(24,073		)	143,784		(281,289		)	—		—		(28,937		)	(1,506		)	1,374,044		15,209
Total assets measured at fair value on a recurring basis	$	1,510,043	$	32,438	$	42,908	$	(19,324	)	$	(24,073	)	$	143,784	$	(281,289	)	$	—	$	—	$	(28,937	)	$	(1,506	)	$	1,374,044	$	15,209
Liabilities:
Annuity account balances(2)	$	87,616	$	—	$	—	$	(4,001	)	$	—		$	—	$	—		$	623	$	8,768	$	—		$	—		$	83,472	$	—
Other liabilities(1)	571,843		93,071		—		(282,118		)	—			—		—			—		—		—			—			760,890		(189,047		)
Total liabilities measured at fair value on a recurring basis	$	659,459	$	93,071	$	—	$	(286,119	)	$	—		$	—	$	—		$	623	$	8,768	$	—		$	—		$	844,362	$	(189,047	)

(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 December 31,
		2017				2016
	Fair Value Level	Carrying Amounts		Fair Values		Carrying Amounts		Fair Values
		(Dollars In Thousands)				(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	6,817,723	$	6,740,177	$	6,132,125	$	5,930,992
Policy loans	3	1,615,615		1,615,615		1,650,240		1,650,240
Fixed maturities, held-to-maturity(1)	3	2,718,904		2,776,327		2,770,177		2,733,340
Liabilities:
Stable value product account balances	3	$	4,698,371	$	4,698,868	$	3,501,636	$	3,488,877
Future policy benefits and claims(2)	3	220,498		220,498		221,634		221,658
Other policyholders' funds(3)	3	133,508		134,253		135,367		136,127
Debt:(4)
Bank borrowings	3	$	—	$	—	$	170,000	$	170,000
Senior Notes	2	943,370		933,926		993,285		937,074
Subordinated debt securities	2	495,289		501,215		441,202		443,355
Non-recourse funding obligations(5)	3	2,747,477		2,804,983		2,796,474		2,765,558

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

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

(2) Single premium immediate annuity without life contingencies.

(3) Supplementary contracts without life contingencies.

(4) Excludes capital lease obligations of $1.7 million.

(5) As of December 31, 2017 (Successor Company), carrying amount of $2.7 billion and a fair value of $2.8 billion related to non-recourse funding obligations issued by Golden Gate and Golden Gate V. As of December 31, 2016 (Successor Company), $2.7 billion in carrying amount and fair value related to non-recourse funding obligations issued by Golden Gate and Golden Gate V.