XML 47 R35.htm IDEA: XBRL DOCUMENT v3.6.0.2
Summary of Investments (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016
 
 
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
 
$
3,022,279

 
$
47,791

 
$
34,958

 
$
3,035,112

 
$
—

Obligations of U.S. states and their subdivisions
 
1,890,568

 
214,411

 
6,317

 
2,098,662

 
—

Corporate debt securities (2)
 
13,811,597

 
477,316

 
309,164

 
13,979,749

 
(1,488
)
Asset-backed securities
 
1,226,493

 
104,274

 
18,388

 
1,312,379

 
(72,464
)
Residential mortgage-backed securities
 
138,292

 
3,867

 
1,167

 
140,992

 
23

Commercial mortgage-backed securities
 
1,222,257

 
23,207

 
20,182

 
1,225,282

 
—

Collateralized debt obligations
 
361,241

 
339

 
53

 
361,527

 
—

Total fixed maturities
 
$
21,672,727

 
$
871,205

 
$
390,229

 
$
22,153,703

 
$
(73,929
)
 
(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 $135,187 and estimated fair value of $113,239.
 
 
 
December 31, 2015
 
 
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
 
$
3,291,167

 
$
55,193

 
$
4,608

 
$
3,341,752

 
$
—

Obligations of U.S. states and their subdivisions
 
1,988,214

 
238,862

 
7,903

 
2,219,173

 
50

Foreign government securities
 
2,291

 
—

 
5

 
2,286

 
—

Corporate debt securities (2)
 
12,388,886

 
437,207

 
320,381

 
12,505,712

 
(1,810
)
Asset-backed securities
 
1,196,326

 
128,406

 
13,362

 
1,311,370

 
(86,474
)
Residential mortgage-backed securities
 
122,146

 
4,734

 
1,508

 
125,372

 
(123
)
Commercial mortgage-backed securities
 
1,009,320

 
19,117

 
11,529

 
1,016,908

 
—

Collateralized debt obligations
 
9,112

 
—

 
58

 
9,054

 
—

Total fixed maturities
 
$
20,007,462

 
$
883,519

 
$
359,354

 
$
20,531,627

 
$
(88,357
)
 
(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 $149,062 and estimated fair value of $116,423.
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, 2016
 
 
Amortized cost
 
Estimated fair value
Maturing in one year or less
 
$
668,305

 
$
690,369

Maturing after one year through five years
 
3,741,043

 
3,917,479

Maturing after five years through ten years
 
6,570,148

 
6,650,854

Maturing after ten years
 
5,088,280

 
5,208,071

Mortgage-backed and asset-backed securities
 
5,604,951

 
5,686,930

Total fixed maturities
 
$
21,672,727

 
$
22,153,703
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,
 
 
2016
 
2015
 
2014
Proceeds from sales
 
$
4,541,303

 
$
4,187,547

 
$
2,705,999

Gross realized gains from sales
 
84,305

 
47,965

 
47,852

Gross realized losses from sales
 
16,858

 
6,476

 
1,229
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, 2016
 
December 31, 2015
Principal
 
$
3,558,863

 
$
3,242,627

Unamortized premium (discount) and fees, net
 
5,541

 
7,967

Foreign exchange translation
 
(2,696
)
 
—

Mortgage provision allowance
 
(2,882
)
 
(2,890
)
Total mortgage loans
 
$
3,558,826

 
$
3,247,704
Financing Receivable Credit Quality Indicators [Table Text Block]
The following table summarizes the recorded investment of the mortgage loan portfolio by risk assessment category as of December 31, 2016, and 2015, respectively.
 
 
December 31, 2016
 
December 31, 2015
Performing
 
$
3,560,243

 
$
3,249,129

Non-performing
 
1,465

 
1,465

Total
 
$
3,561,708

 
$
3,250,594
Summary of activity in the mortgage provision allowance
The following table summarizes activity in the mortgage provision allowance: 
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
Commercial mortgages
 
Commercial mortgages
 
Commercial mortgages
Beginning balance
 
$
2,890

 
$
2,890

 
$
2,890

Provision increases
 
536

 
—

 
—

Provision decreases
 
(544
)
 
—

 
—

Ending balance
 
$
2,882

 
$
2,890

 
$
2,890

 
 
 
 
 
 
 
Allowance ending balance by basis of impairment method:
 
 

 
 

 
 

Individually evaluated for impairment
 
$
536

 
$
—

 
$
—

Collectively evaluated for impairment
 
2,346

 
2,890

 
2,890

 
 
 
 
 
 
 
Recorded investment balance in the mortgage loan portfolio, gross of allowance, by basis of impairment method:
 
$
3,561,708

 
$
3,250,594

 
$
3,366,460

Individually evaluated for impairment
 
1,465

 
14,031

 
12,986

Collectively evaluated for impairment
 
3,560,243

 
3,236,563

 
3,353,474
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, 2016
 
 
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
 
$
2,006,588

 
$
34,752

 
$
10,526

 
$
206

 
$
2,017,114

 
$
34,958

Obligations of U.S. states and their subdivisions
 
216,154

 
5,922

 
10,498

 
395

 
226,652

 
6,317

Corporate debt securities
 
4,119,630

 
170,453

 
860,153

 
138,711

 
4,979,783

 
309,164

Asset-backed securities
 
316,065

 
6,971

 
230,331

 
11,417

 
546,396

 
18,388

Residential mortgage-backed securities
 
16,962

 
102

 
14,297

 
1,065

 
31,259

 
1,167

Commercial mortgage-backed securities
 
592,508

 
17,535

 
26,068

 
2,647

 
618,576

 
20,182

Collateralized debt obligations
 
160,612

 
53

 
—

 
—

 
160,612

 
53

Total fixed maturities
 
$
7,428,519

 
$
235,788

 
$
1,151,873

 
$
154,441

 
$
8,580,392

 
$
390,229

Total number of securities in an unrealized loss position
 
 

 
610

 
 

 
128

 
 

 
738

 
 
 
December 31, 2015
 
 
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
 
$
1,357,822

 
$
4,101

 
$
23,604

 
$
507

 
$
1,381,426

 
$
4,608

Obligations of U.S. states and their subdivisions
 
267,581

 
7,903

 
—

 
—

 
267,581

 
7,903

Foreign government securities
 
2,286

 
5

 
—

 
—

 
2,286

 
5

Corporate debt securities
 
4,412,965

 
202,874

 
552,791

 
117,507

 
4,965,756

 
320,381

Asset-backed securities
 
247,082

 
4,372

 
182,404

 
8,990

 
429,486

 
13,362

Residential mortgage-backed securities
 
—

 
—

 
18,625

 
1,508

 
18,625

 
1,508

Commercial mortgage-backed securities
 
429,175

 
11,154

 
44,498

 
375

 
473,673

 
11,529

Collateralized debt obligations
 
9,054

 
58

 
—

 
—

 
9,054

 
58

Total fixed maturities
 
$
6,725,965

 
$
230,467

 
$
821,922

 
$
128,887

 
$
7,547,887

 
$
359,354

Total number of securities in an unrealized loss position
 
 

 
558

 
 

 
106

 
 

 
664
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,
 
 
2016
 
2015
 
2014
Beginning balance
 
$
102,343

 
$
119,532

 
$
167,961

Initial impairments - credit loss on securities not previously impaired
 
—

 
759

 
—

Reductions:
 
 

 
 

 
 

Due to sales, maturities, or payoffs during the period
 
(1,785
)
 
(559
)
 
(646
)
Due to increases in cash flows expected to be collected that are recognized over the remaining life of the security
 
(16,893
)
 
(17,389
)
 
(47,783
)
Ending balance
 
$
83,665

 
$
102,343

 
$
119,532
Summary of net investment income
The following table summarizes net investment income: 
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Investment income:
 
 

 
 

 
 

Fixed maturity and short-term investments
 
$
819,047

 
$
796,133

 
$
816,907

Mortgage loans on real estate
 
142,478

 
150,284

 
149,497

Policy loans
 
199,737

 
206,081

 
207,013

Limited partnership interests
 
1,759

 
10,462

 
9,128

Net interest on funds withheld balances under reinsurance agreements, related party
 
22,045

 
22,165

 
21,295

Derivative instruments (1)
 
100,007

 
78,655

 
39,533

Other
 
10,468

 
9,228

 
5,008

 
 
1,295,541

 
1,273,008

 
1,248,381

Investment expenses
 
(18,982
)
 
(18,578
)
 
(19,993
)
Net investment income
 
$
1,276,559

 
$
1,254,430

 
$
1,228,388

 

(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,
 
 
2016
 
2015
 
2014
Realized investment gains (losses):
 
 

 
 

 
 

Fixed maturity and short-term investments
 
$
87,108

 
$
46,027

 
$
54,219

Derivative instruments
 
(5,318
)
 
5,840

 
90,504

Mortgage loans on real estate
 
10,972

 
31,841

 
6,857

Other
 
120

 
2

 
(4,209
)
Realized investment gains (losses)
 
$
92,882

 
$
83,710

 
$
147,371