XML 67 R35.htm IDEA: XBRL DOCUMENT v2.4.1.9
Summary of Investments (Tables)
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Summary of fixed maturity investments classified as available-for-sale and the non-credit related components of OTTI in AOCI
The following tables summarize fixed maturity investments classified as available-for-sale and the non-credit-related component of OTTI in AOCI:
 
 
December 31, 2014
 
 
Amortized
 
Gross unrealized
 
Gross unrealized
 
Estimated fair value
 
OTTI (gain) loss
Fixed maturities:
 
cost
 
gains
 
losses
 
and carrying value
 
included in AOCI (1)
U.S. government direct obligations and U.S. agencies
 
$
3,478,153

 
$
70,597

 
$
1,494

 
$
3,547,256

 
$
—

Obligations of U.S. states and their subdivisions
 
1,885,715

 
287,668

 
899

 
2,172,484

 
—

Foreign government securities
 
2,455

 
—

 
4

 
2,451

 
—

Corporate debt securities (2)
 
11,258,517

 
763,036

 
82,104

 
11,939,449

 
(2,228
)
Asset-backed securities
 
1,263,089

 
149,152

 
13,702

 
1,398,539

 
(96,603
)
Residential mortgage-backed securities
 
167,793

 
7,368

 
1,932

 
173,229

 
(185
)
Commercial mortgage-backed securities
 
886,748

 
32,556

 
1,099

 
918,205

 
—

Collateralized debt obligations
 
10,674

 
—

 
209

 
10,465

 
—

Total fixed maturities
 
$
18,953,144

 
$
1,310,377

 
$
101,443

 
$
20,162,078

 
$
(99,016
)
 

(1) Indicates the amount of any OTTI (gain) loss included in AOCI that is included in gross unrealized gains and losses.  OTTI (gain) loss included in AOCI, as presented above, includes both the initial recognition of non-credit losses and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities with previous non-credit impairment. The non-credit loss component of OTTI (gain) loss was in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities.
(2) Includes perpetual debt investments with amortized cost of $157,742 and estimated fair value of $131,799.
 
 
 
December 31, 2013
 
 
Amortized
 
Gross unrealized
 
Gross unrealized
 
Estimated fair value
 
OTTI (gain) loss
Fixed maturities:
 
cost
 
gains
 
losses
 
and carrying value
 
included in AOCI (1)
U.S. government direct obligations and U.S. agencies
 
$
3,044,185

 
$
43,827

 
$
23,373

 
$
3,064,639

 
$
—

Obligations of U.S. states and their subdivisions
 
1,763,797

 
196,742

 
16,952

 
1,943,587

 
—

Foreign government securities
 
2,617

 
—

 
14

 
2,603

 
—

Corporate debt securities (2)
 
10,454,252

 
568,261

 
223,532

 
10,798,981

 
(2,553
)
Asset-backed securities
 
1,553,510

 
131,277

 
29,150

 
1,655,637

 
(98,502
)
Residential mortgage-backed securities
 
244,723

 
8,335

 
3,473

 
249,585

 
(129
)
Commercial mortgage-backed securities
 
731,688

 
21,951

 
11,515

 
742,124

 
—

Collateralized debt obligations
 
12,587

 
14

 
213

 
12,388

 
—

Total fixed maturities
 
$
17,807,359

 
$
970,407

 
$
308,222

 
$
18,469,544

 
$
(101,184
)
 
(1) Indicates the amount of any OTTI (gain) loss included in AOCI that is included in gross unrealized gains and losses.  OTTI (gain) loss included in AOCI, as presented above, includes both the initial recognition of non-credit losses and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities with previous non-credit impairment. The non-credit loss component of OTTI (gain) loss was in an unrealized gain position due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities.
(2) Includes perpetual debt investments with amortized cost of $172,054 and estimated fair value of $143,644.
Schedule of amortized cost and estimated fair value of fixed maturity investments classified as available-for-sale
The amortized cost and estimated fair value of fixed maturity investments classified as available-for-sale, based on estimated cash flows, are shown in the table below.  Actual maturities will likely differ from these projections because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. 
 
 
December 31, 2014
 
 
Amortized cost
 
Estimated fair value
Maturing in one year or less
 
$
567,095

 
$
595,521

Maturing after one year through five years
 
3,583,929

 
3,887,276

Maturing after five years through ten years
 
4,098,780

 
4,331,464

Maturing after ten years
 
5,203,246

 
5,636,566

Mortgage-backed and asset-backed securities
 
5,500,094

 
5,711,251

Total fixed maturities
 
$
18,953,144

 
$
20,162,078
Summary of information regarding the sales of securities classified as available-for-sale
The following table summarizes information regarding the sales of securities classified as available-for-sale: 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Proceeds from sales
 
$
2,705,999

 
$
2,518,568

 
$
2,697,809

Gross realized gains from sales
 
47,852

 
71,758

 
113,984

Gross realized losses from sales
 
1,229

 
27,792

 
4,371
Schedule of the carrying value of the mortgage loan portfolio by component
Mortgage loans on real estate - The following table summarizes the carrying value of the mortgage loan portfolio by component: 
 
 
December 31, 2014
 
December 31, 2013
Principal
 
$
3,356,374

 
$
3,124,626

Unamortized premium (discount) and fees, net
 
10,086

 
12,519

Mortgage provision allowance
 
(2,890
)
 
(2,890
)
Total mortgage loans
 
$
3,363,570

 
$
3,134,255
Summary of activity in the mortgage provision allowance
The following table summarizes activity in the mortgage provision allowance: 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
 
Commercial mortgages
 
Commercial mortgages
 
Commercial mortgages
Beginning balance
 
$
2,890

 
$
2,890

 
$
21,130

Provision increases
 
—

 
273

 
1,067

Charge-off
 
—

 
(273
)
 
(992
)
Recovery
 
—

 
—

 
(75
)
Provision decreases
 
—

 
—

 
(18,240
)
Ending balance
 
$
2,890

 
$
2,890

 
$
2,890

 
 
 
 
 
 
 
Allowance ending balance by basis of impairment method:
 
 

 
 

 
 

Collectively evaluated for impairment
 
$
2,890

 
$
2,890

 
$
2,890

 
 
 
 
 
 
 
Recorded investment balance in the mortgage loan portfolio, gross of allowance, by basis of impairment method:
 
$
3,366,460

 
$
3,137,145

 
$
2,884,648

Individually evaluated for impairment
 
12,986

 
13,906

 
14,970

Collectively evaluated for impairment
 
3,353,474

 
3,123,239

 
2,869,678
Schedule of unrealized investment losses, including the non-credit-related portion of OTTI losses reported in AOCI, by class of investment
Unrealized losses on fixed maturity investments classified as available-for-sale - The following tables summarize unrealized investment losses, including the non-credit-related portion of OTTI losses reported in AOCI, by class of investment: 
 
 
December 31, 2014
 
 
Less than twelve months
 
Twelve months or longer
 
Total
 
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
Fixed maturities:
 
fair value
 
loss and OTTI
 
fair value
 
loss and OTTI
 
fair value
 
loss and OTTI
U.S. government direct obligations and U.S. agencies
 
$
566,335

 
$
503

 
$
74,322

 
$
991

 
$
640,657

 
$
1,494

Obligations of U.S. states and their subdivisions
 
18,280

 
218

 
41,064

 
681

 
59,344

 
899

Foreign government securities
 
2,451

 
4

 
—

 
—

 
2,451

 
4

Corporate debt securities
 
836,263

 
16,775

 
764,528

 
65,329

 
1,600,791

 
82,104

Asset-backed securities
 
88,312

 
849

 
200,072

 
12,853

 
288,384

 
13,702

Residential mortgage-backed securities
 
4,663

 
11

 
24,052

 
1,921

 
28,715

 
1,932

Commercial mortgage-backed securities
 
35,015

 
127

 
57,333

 
972

 
92,348

 
1,099

Collateralized debt obligations
 
10,465

 
209

 
—

 
—

 
10,465

 
209

Total fixed maturities
 
$
1,561,784

 
$
18,696

 
$
1,161,371

 
$
82,747

 
$
2,723,155

 
$
101,443

Total number of securities in an unrealized loss position
 
 

 
134

 
 

 
153

 
 

 
287

 
 
 
December 31, 2013
 
 
Less than twelve months
 
Twelve months or longer
 
Total
 
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
 
Estimated
 
Unrealized
Fixed maturities:
 
fair value
 
loss and OTTI
 
fair value
 
loss and OTTI
 
fair value
 
loss and OTTI
U.S. government direct obligations and U.S. agencies
 
$
2,399,373

 
$
23,156

 
$
5,192

 
$
217

 
$
2,404,565

 
$
23,373

Obligations of U.S. states and their subdivisions
 
214,979

 
16,713

 
837

 
239

 
215,816

 
16,952

Foreign government securities
 
2,603

 
14

 
—

 
—

 
2,603

 
14

Corporate debt securities
 
2,632,093

 
144,367

 
511,376

 
79,165

 
3,143,469

 
223,532

Asset-backed securities
 
305,377

 
12,763

 
305,740

 
16,387

 
611,117

 
29,150

Residential mortgage-backed securities
 
32,131

 
3,454

 
1,011

 
19

 
33,142

 
3,473

Commercial mortgage-backed securities
 
177,395

 
6,703

 
48,825

 
4,812

 
226,220

 
11,515

Collateralized debt obligations
 
—

 
—

 
12,356

 
213

 
12,356

 
213

Total fixed maturities
 
$
5,763,951

 
$
207,170

 
$
885,337

 
$
101,052

 
$
6,649,288

 
$
308,222

Total number of securities in an unrealized loss position
 
 

 
458

 
 

 
109

 
 

 
567
Schedule of OTTI of fixed maturity securities where loss portion is bifurcated and the credit related component recognized in realized investment gains (losses)
Other-than-temporary impairment recognition - The OTTI on fixed maturity securities where the loss portion is bifurcated and the credit related component is recognized in realized investment gains (losses) is summarized as follows: 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Beginning balance
 
$
167,961

 
$
167,788

 
$
186,999

Additions:
 
 

 
 

 
 

Initial impairments - credit loss on securities not previously impaired
 
—

 
—

 
4,429

Credit loss recognized on securities previously impaired
 
—

 
173

 
—

Reductions:
 
 

 
 

 
 

Due to sales, maturities, or payoffs during the period
 
(646
)
 
—

 
(23,640
)
Due to increases in cash flows expected to be collected that are recognized over the remaining life of the security
 
(47,783
)
 
—

 
—

Ending balance
 
$
119,532

 
$
167,961

 
$
167,788
Summary of net investment income
The following table summarizes net investment income: 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Investment income:
 
 

 
 

 
 

Fixed maturity and short-term investments
 
$
816,907

 
$
766,367

 
$
808,215

Mortgage loans on real estate
 
149,497

 
147,944

 
138,411

Policy loans
 
207,013

 
206,718

 
213,300

Limited partnership interests
 
9,128

 
9,131

 
7,566

Net interest on funds withheld balances under reinsurance agreements, related party
 
21,295

 
20,876

 
19,382

Derivative instruments (1)
 
39,533

 
(44,610
)
 
16,008

Other
 
5,008

 
3,321

 
5,222

 
 
1,248,381

 
1,109,747

 
1,208,104

Investment expenses
 
(19,993
)
 
(18,358
)
 
(16,553
)
Net investment income
 
$
1,228,388

 
$
1,091,389

 
$
1,191,551

 

(1) Includes gains (losses) on the hedged asset for fair value hedges.
Summary of realized investment gains (losses)
The following table summarizes realized investment gains (losses): 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Realized investment gains (losses):
 
 

 
 

 
 

Fixed maturity and short-term investments
 
$
54,219

 
$
37,312

 
$
105,675

Derivative instruments
 
90,504

 
(62,077
)
 
(10,221
)
Mortgage loans on real estate
 
6,857

 
10,895

 
21,471

Other
 
(4,209
)
 
(266
)
 
(208
)
Realized investment gains (losses)
 
$
147,371

 
$
(14,136
)
 
$
116,717