DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Realized Investments Gains and Losses

The following table sets forth realized investments gains and losses for the periods shown:

Realized investment gains (losses) - derivative financial instruments

	For The Three Months Ended September 30,						For The Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars In Thousands)
Derivatives related to VA contracts:
Interest rate futures	$	2,111		$	549		$	(13,229	)	$	16,746
Equity futures	(5,733		)	(25,959		)	(23,025		)	(75,389		)
Currency futures	3,410			(6,092		)	7,890			(22,366		)
Equity options	(21,206		)	(23,307		)	(47,406		)	(76,376		)
Interest rate swaptions	—			(292		)	(14		)	(2,423		)
Interest rate swaps	(41,288		)	5,342			(131,147		)	31,331
Total return swaps	(32,343		)	(8,057		)	(35,908		)	(9,675		)
Embedded derivative - GLWB	57,706			740			149,552			(15,904		)
Total derivatives related to VA contracts	(37,343		)	(57,076		)	(93,287		)	(154,056		)
Derivatives related to FIA contracts:
Embedded derivative	(14,360		)	(18,606		)	(7,957		)	(40,351		)
Equity futures	(388		)	66			(716		)	161
Equity options	18,474			11,242			21,203			29,511
Total derivatives related to FIA contracts	3,726			(7,298		)	12,530			(10,679		)
Derivatives related to IUL contracts:
Embedded derivative	(9,535		)	(297		)	(877		)	(10,958		)
Equity futures	(1		)	58			135			(878		)
Equity options	4,928			1,975			5,764			6,437
Total derivatives related to IUL contracts	(4,608		)	1,736			5,022			(5,399		)
Embedded derivative - Modco reinsurance treaties	10,811			(19,746		)	138,652			(90,314		)
Other derivatives	(51		)	43			(58		)	41
Total realized gains (losses) - derivatives	$	(27,465	)	$	(82,341	)	$	62,859		$	(260,407	)

Components of the Gain or Loss on Derivatives that Qualify as a Cash Flow Hedging Relationship

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship.

Gain (Loss) on Derivatives in Cash Flow Hedging Relationship

	Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives		Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss)			Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)			(Ineffective Portion)
			Benefits and settlement			Realized investment
			expenses			gains (losses)
			(Dollars In Thousands)
For The Three Months Ended September 30, 2018
Foreign currency swaps	$	190	$	(155	)	$	—
Interest rate swaps	101		(326		)	—
Total	$	291	$	(481	)	$	—
For The Nine Months Ended September 30, 2018
Foreign currency swaps	$	3,772	$	(473	)	$	—
Interest rate swaps	101		(326		)	—
Total	$	3,873	$	(799	)	$	—
For The Three Months Ended September 30, 2017
Foreign currency swaps	$	1,273	$	(38	)	$	—
Total	$	1,273	$	(38	)	$	—
For The Nine Months Ended September 30, 2017
Foreign currency swaps	$	55	$	(396	)	$	—
Total	$	55	$	(396	)	$	—

Information about the Nature and Accounting Treatment of the Company's Primary Derivative Financial Instruments and Location in and Effect on the Financial Statements

The table below presents information about the nature and accounting treatment of the Company’s primary derivative financial instruments and the location in and effect on the consolidated condensed financial statements for the periods presented below:

	As of
	September 30, 2018				December 31, 2017
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars In Thousands)
Other long-term investments
Cash flow hedges:
Interest rate swaps	$	350,000	$	—	$	—	$	—
Foreign currency swaps	117,178		10,902		117,178		6,016
Derivatives not designated as hedging instruments:
Interest rate swaps	565,000		8,402		1,265,000		55,411
Total return swaps	482,523		3,676		190,938		135
Embedded derivative - Modco reinsurance treaties	322,308		2,650		64,472		1,009
Embedded derivative - GLWB	6,200,196		178,896		4,897,069		134,995
Interest rate futures	875,566		8,329		1,071,870		3,178
Equity futures	205,872		2,387		62,266		154
Currency futures	135,112		1,096		1,117		2
Equity options	6,026,348		420,107		4,436,467		403,961
Interest rate swaptions	—		—		225,000		14
Other	157		141		157		200
	$	15,280,260	$	636,586	$	12,331,534	$	605,075
Other liabilities
Derivatives not designated as hedging instruments:
Interest rate swaps	$	1,547,500	$	26,321	$	597,500	$	2,960
Total return swaps	—		—		243,388		318
Embedded derivative - Modco reinsurance treaties	2,082,638		60,683		2,390,539		215,247
Embedded derivative - GLWB	3,587,620		141,102		4,718,311		246,755
Embedded derivative - FIA	2,459,246		256,912		1,951,650		218,676
Embedded derivative - IUL	219,226		95,739		168,349		80,212
Interest rate futures	348,749		7,122		230,404		917
Equity futures	77,916		1,043		318,795		2,593
Currency futures	79,861		15		255,248		2,087
Equity options	4,174,072		246,466		3,112,812		237,807
Other	341		44		—		—
	$	14,577,169	$	835,447	$	13,986,996	$	1,007,572