SIGNIFICANT TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed

The following table details the purchase consideration and final allocation of assets acquired and liabilities from the Life Business reinsurance transaction as of the transaction date.



	Fair Value as of May 1, 2018
	(Dollars In Thousands)
ASSETS
Fixed maturities	$	12,588,512
Mortgage loans	435,405
Policy loans	131,489
Total investments	13,155,406
Cash	35,179
Accrued investment income	152,030
Reinsurance receivables	272
Value of business acquired	379,717
Other assets	916
Total assets	13,723,520
LIABILITIES
Future policy benefits and claims	$	11,751,895
Unearned premiums	—
Total policy liabilities and accruals	11,751,895
Annuity account balances	1,864,141
Other policyholders’ funds	41,936
Other liabilities	65,548
Total liabilities	13,723,520
NET ASSETS ACQUIRED	$	—

The following table details the preliminary allocation of assets acquired and liabilities assumed from the Individual Life Business reinsurance transaction as of the transaction date. The Company has not completed the process of determining the fair value of assets acquired and liabilities assumed, but will do so in the twelve month measurement period subsequent to the transaction date. These estimates are provisional subject to adjustment. Any adjustments to these fair value estimates will be reflected, retroactively, as of the date of the acquisition, and may result in adjustments to the value of business acquired.



	Fair Value as of June 1, 2019
	(Dollars In Thousands)
ASSETS
Fixed maturities	$	8,697,533
Mortgage loans	1,386,228
Policy loans	44,002
Other long-term investments	1,579
Total investments	10,129,342
Cash	35,607
Accrued investment income	101,306
Accounts and premiums receivable	62
Premium due and deferred	1,657
Value of business acquired	491,493
Other intangibles	28,600
Other assets	1,537,848
Assets related to separate accounts	9,583,217
Total assets	21,909,132
LIABILITIES
Future policy benefits and claims	$	10,993,716
Annuity account balances	253,748
Other policyholders’ funds	220,117
Other liabilities	39,370
Liabilities related to separate accounts	9,583,217
Total liabilities	21,090,168
NET ASSETS ACQUIRED	$	818,964

Pro Forma Information

The following unaudited pro forma condensed consolidated results of operations assumes that the aforementioned transactions of the Individual Life Business were completed as of January 1, 2018. The unaudited pro forma condensed results of operations are presented solely for information purposes and are not necessarily indicative of the consolidated condensed results of operations that might have been achieved had the transaction been completed as of the date indicated:



	Unaudited				Unaudited
	For The Three Months Ended June 30,				For The Six Months Ended June 30,
	2019		2018		2019		2018
	(Dollars In Thousands)
Revenue	$	1,548,668	$	1,461,832	$	3,203,698	$	2,828,369
Net income	$	124,161	$	122,977	$	263,490	$	182,034

The following unaudited pro forma condensed consolidated results of operations assumes that the aforementioned transactions of the Life Business were completed as of January 1, 2017. The unaudited pro forma condensed results of operations are presented solely for information purposes and are not necessarily indicative of the consolidated condensed results of operations that might have been achieved had the transaction been completed as of the date indicated:



	Unaudited
	For The Three Months Ended June 30, 2018		For The Six Months Ended June 30, 2018
	(Dollars In Thousands)
Revenue	$	1,317,159	$	2,733,479
Net income	$	88,883	$	201,751

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Intangible assets recognized by the Company included the following (excluding goodwill):



	Estimated Fair Value on Acquisition Date		Estimated Useful Life
	(Dollars In Thousands)		(In Years)
Distribution relationships	$	15,000	18
Technology	13,600		10
Total intangible assets	$	28,600

Future Estimated Aggregate Amortization Expense

Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of future estimated aggregate amortization expense:



Year	Amount
	(Dollars In Thousands)
Remainder of 2019	$	1,279
2020	2,193
2021	2,193
2022	2,193
2023	2,193

Schedule of Expected Amortization Expense of (VOBA)

Based on the balance recorded as of June 1, 2019, the expected amortization of VOBA for the next five years is as follows:



Year	Amount
	(Dollars In Thousands)
Remainder of 2019	$	(4,966	)
2020	(12,292		)
2021	(6,807		)
2022	(1,010		)
2023	3,259