OFFSETTING OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2015

OFFSETTING OF ASSETS AND LIABILITIES

OFFSETTING OF ASSETS AND LIABILITIES

17.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 9, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

The tables below present the derivative instruments by assets and liabilities for the Company as of June 30, 2015 (Successor Company):

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Assets		Position		Position		Instruments		Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	225,011	$	—	$	225,011	$	53,905	$	77,148	$	93,958
Total derivatives, subject to a master netting arrangement or similar arrangement	225,011		—		225,011		53,905		77,148		93,958
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,321		—		2,321		—		—		2,321
Embedded derivative - GMWB	167,275		—		167,275		—		—		167,275
Other	340		—		340		—		—		340
Total derivatives, not subject to a master netting arrangement or similar arrangement	169,936		—		169,936		—		—		169,936
Total derivatives	394,947		—		394,947		53,905		77,148		263,894
Total Assets	$	394,947	$	—	$	394,947	$	53,905	$	77,148	$	263,894

					Net Amounts
			Gross		of Liabilities		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Liabilities		Position		Position		Instruments		Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	90,805	$	—	$	90,805	$	53,905	$	36,900	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	90,805		—		90,805		53,905		36,900		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	223,342		—		223,342		—		—		223,342
Embedded derivative - GMWB	107,393		—		107,393		—		—		107,393
Embedded derivative - FIA	85,129		—		85,129		—		—		85,129
Embedded derivative - IUL	11,902		—		11,902		—		—		11,902
Total derivatives, not subject to a master netting arrangement or similar arrangement	427,766		—		427,766		—		—		427,766
Total derivatives	518,571		—		518,571		53,905		36,900		427,766
Repurchase agreements(1)	602,213		—		602,213		—		—		602,213
Total Liabilities	$	1,120,784	$	—	$	1,120,784	$	53,905	$	36,900	$	1,029,979

(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, 2014 (Predecessor Company):

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Assets		Position		Position		Instruments		Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	225,716	$	—	$	225,716	$	53,612	$	73,935	$	98,169
Total derivatives, subject to a master netting arrangement or similar arrangement	225,716		—		225,716		53,612		73,935		98,169
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,051		—		1,051		—		—		1,051
Embedded derivative - GMWB	66,843		—		66,843		—		—		66,843
Other	360		—		360		—		—		360
Total derivatives, not subject to a master netting arrangement or similar arrangement	68,254		—		68,254		—		—		68,254
Total derivatives	293,970		—		293,970		53,612		73,935		166,423
Total Assets	$	293,970	$	—	$	293,970	$	53,612	$	73,935	$	166,423

					Net Amounts
			Gross		of Liabilities		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Liabilities		Position		Position		Instruments		Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	65,887	$	—	$	65,887	$	53,612	$	12,258	$	17
Total derivatives, subject to a master netting arrangement or similar arrangement	65,887		—		65,887		53,612		12,258		17
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	311,727		—		311,727		—		—		311,727
Embedded derivative - GMWB	311,969		—		311,969		—		—		311,969
Embedded derivative - FIA	124,465		—		124,465		—		—		124,465
Embedded derivative - IUL	6,691		—		6,691		—		—		6,691
Total derivatives, not subject to a master netting arrangement or similar arrangement	754,852		—		754,852		—		—		754,852
Total derivatives	820,739		—		820,739		53,612		12,258		754,869
Repurchase agreements(1)	50,000		—		50,000		—		—		50,000
Total Liabilities	$	870,739	$	—	$	870,739	$	53,612	$	12,258	$	804,869

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