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 11, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

Collateral received includes both cash and non-cash collateral. Cash collateral received by the Company is recorded on the consolidated condensed balance sheet as “cash”, with a corresponding amount recorded in “other liabilities” to represent the Company’s obligation to return the collateral. Non-cash collateral received by the Company is not recognized on the consolidated condensed balance sheet unless the Company exercises its right to sell or re-pledge the underlying asset. As of September 30, 2018, the fair value of non-cash collateral received was $8.2 million. As of December 31, 2017, the Company had not received any non-cash collateral.

The tables below present the derivative instruments by assets and liabilities for the Company as of September 30, 2018:



	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	$	454,899	$	—	$	454,899	$	270,878	$	68,809	$	115,212
Total derivatives, subject to a master netting arrangement or similar arrangement	454,899		—		454,899		270,878		68,809		115,212
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,650		—		2,650		—		—		2,650
Embedded derivative - GLWB	178,896		—		178,896		—		—		178,896
Other	141		—		141		—		—		141
Total derivatives, not subject to a master netting arrangement or similar arrangement	181,687		—		181,687		—		—		181,687
Total derivatives	636,586		—		636,586		270,878		68,809		296,899
Total Assets	$	636,586	$	—	$	636,586	$	270,878	$	68,809	$	296,899



	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	$	280,967	$	—	$	280,967	$	270,878	$	10,089	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	280,967		—		280,967		270,878		10,089		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	60,683		—		60,683		—		—		60,683
Embedded derivative - GLWB	141,102		—		141,102		—		—		141,102
Embedded derivative - FIA	256,912		—		256,912		—		—		256,912
Embedded derivative - IUL	95,739		—		95,739		—		—		95,739
Other	44		—		44		—		—		44
Total derivatives, not subject to a master netting arrangement or similar arrangement	554,480		—		554,480		—		—		554,480
Total derivatives	835,447		—		835,447		270,878		10,089		554,480
Repurchase agreements⁽¹⁾	417,094		—		417,094		—		—		417,094
Total Liabilities	$	1,252,541	$	—	$	1,252,541	$	270,878	$	10,089	$	971,574

(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, 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	$	468,871	$	—	$	468,871	$	242,105	$	108,830	$	117,936
Total derivatives, subject to a master netting arrangement or similar arrangement	468,871		—		468,871		242,105		108,830		117,936
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,009		—		1,009		—		—		1,009
Embedded derivative - GLWB	134,995		—		134,995		—		—		134,995
Other	200		—		200		—		—		200
Total derivatives, not subject to a master netting arrangement or similar arrangement	136,204		—		136,204		—		—		136,204
Total derivatives	605,075		—		605,075		242,105		108,830		254,140
Total Assets	$	605,075	$	—	$	605,075	$	242,105	$	108,830	$	254,140



	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	$	246,682	$	—	$	246,682	$	242,105	$	4,577	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	246,682		—		246,682		242,105		4,577		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	215,247		—		215,247		—		—		215,247
Embedded derivative - GLWB	246,755		—		246,755		—		—		246,755
Embedded derivative - FIA	218,676		—		218,676		—		—		218,676
Embedded derivative - IUL	80,212		—		80,212		—		—		80,212
Total derivatives, not subject to a master netting arrangement or similar arrangement	760,890		—		760,890		—		—		760,890
Total derivatives	1,007,572		—		1,007,572		242,105		4,577		760,890
Repurchase agreements⁽¹⁾	885,000		—		885,000		—		—		885,000
Total Liabilities	$	1,892,572	$	—	$	1,892,572	$	242,105	$	4,577	$	1,645,890

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