Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of June 30, 2020
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	83,650	$	44,792	$	0		$	128,442
Obligations of U.S. states and their political subdivisions	0		512,875		0		0			512,875
Foreign government bonds	0		223,122		161		0			223,283
U.S. corporate public securities	0		2,394,770		4		0			2,394,774
U.S. corporate private securities	0		926,773		35,980		0			962,753
Foreign corporate public securities	0		242,461		9,197		0			251,658
Foreign corporate private securities	0		863,042		111,791		0			974,833
Asset-backed securities(2)	0		119,383		1,507		0			120,890
Commercial mortgage-backed securities	0		472,524		0		0			472,524
Residential mortgage-backed securities	0		64,290		0		0			64,290
Subtotal	0		5,902,890		203,432		0			6,106,322
Fixed maturities, trading	0		56,063		644		0			56,707
Equity securities	108		301		9,150		0			9,559
Short-term investments	99,980		1,987		0		0			101,967
Cash equivalents	364,949		180,643		0		0			545,592
Other invested assets(3)	0		317,165		0		(281,406		)	35,759
Reinsurance recoverables	0		0		19,028,138		0			19,028,138
Receivables from parent and affiliates	0		120,138		0		0			120,138
Subtotal excluding separate account assets	465,037		6,579,187		19,241,364		(281,406		)	26,004,182
Separate account assets(4)(5)	0		126,304,403		0		0			126,304,403
Total assets	$	465,037	$	132,883,590	$	19,241,364	$	(281,406	)	$	152,308,585
Future policy benefits(6)	$	0	$	0	$	19,014,066	$	0		$	19,014,066
Policyholders' account balances	0		0		1,045,483		0			1,045,483
Payables to parent and affiliates	0		74,351		0		(74,351		)	0
Total liabilities	$	0	$	74,351	$	20,059,549	$	(74,351	)	$	20,059,549

	As of December 31, 2019
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,797	$	38,671	$	0		$	86,468
Obligations of U.S. states and their political subdivisions	0		497,827		0		0			497,827
Foreign government bonds	0		222,663		163		0			222,826
U.S. corporate public securities	0		2,141,324		3		0			2,141,327
U.S. corporate private securities	0		893,943		35,829		0			929,772
Foreign corporate public securities	0		278,435		181		0			278,616
Foreign corporate private securities	0		944,408		14,070		0			958,478
Asset-backed securities(2)	0		117,935		2,001		0			119,936
Commercial mortgage-backed securities	0		382,916		0		0			382,916
Residential mortgage-backed securities	0		63,804		0		0			63,804
Subtotal	0		5,591,052		90,918		0			5,681,970
Fixed maturities, trading	0		59,296		668		0			59,964
Equity securities	131		465		9,898		0			10,494
Short-term investments	0		0		0		0			0
Cash equivalents	0		547,642		0		0			547,642
Other invested assets(3)	0		251,764		4		(239,220		)	12,548
Reinsurance recoverables	0		0		8,539,671		0			8,539,671
Receivables from parent and affiliates	0		119,431		3,135		0			122,566
Subtotal excluding separate account assets	131		6,569,650		8,644,294		(239,220		)	14,974,855
Separate account assets(4)(5)	0		133,625,669		0		0			133,625,669
Total assets	$	131	$	140,195,319	$	8,644,294	$	(239,220	)	$	148,600,524
Future policy benefits(6)	$	0	$	0	$	8,529,566	$	0		$	8,529,566
Policyholders' account balances	0		0		962,351		0			962,351
Payables to parent and affiliates	0		97,802		0		(97,802		)	0
Total liabilities	$	0	$	97,802	$	9,491,917	$	(97,802	)	$	9,491,917

(1) “Netting” amounts represent cash collateral of $207.1 million and $141.4 million as of June 30, 2020 and December 31, 2019, respectively.

(2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At June 30, 2020 and December 31, 2019, the fair values of such investments were $71 million and $75 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At June 30, 2020 and December 31, 2019, the fair value of such investments was $4,599 million and $4,762 million, respectively.

(6) As of June 30, 2020, the net embedded derivative liability position of $19,014 million includes $236 million of embedded derivatives in an asset position and $19,250 million of embedded derivatives in a liability position. As of December 31, 2019, the net embedded derivative liability position of $8,530 million includes $611 million of embedded derivatives in an asset position and $9,141 million of embedded derivatives in a liability position.

Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of June 30, 2020
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	134,414	Discounted cash flow	Discount rate	1.44	%	20.73	%	3.93	%	Decrease
Reinsurance recoverables	$	19,028,138	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(4)	$	19,014,066	Discounted cash flow	Lapse rate(6)	1	%	20	%			Decrease
				Spread over LIBOR(7)	0.17	%	1.69	%			Decrease
				Utilization rate(8)	39	%	96	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	15	%			Decrease
				Equity volatility curve	18	%	29	%			Increase
Policyholders' account balances(5)	$	1,045,483	Discounted cash flow	Lapse rate(6)	1	%	6	%			Decrease
				Spread over LIBOR(7)	0.17	%	1.69	%			Decrease
				Mortality rate(10)	0	%	24	%			Decrease
				Equity volatility curve	18	%	35	%			Increase

	As of December 31, 2019
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	27,816	Discounted cash flow	Discount rate	5.24	%	17.47	%	8.25	%	Decrease
			Market comparables	EBITDA multiples(3)	5.7X		5.7X		5.7X		Increase
Reinsurance recoverables	$	8,539,671	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(4)	$	8,529,566	Discounted cash flow	Lapse rate(6)	1	%	18	%			Decrease
				Spread over LIBOR(7)	0.10	%	1.23	%			Decrease
				Utilization rate(8)	43	%	97	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	15	%			Decrease
				Equity volatility curve	13	%	23	%			Increase
Policyholders' account balances(5)	962,351		Discounted cash flow	Lapse rate(6)	1	%	6	%			Decrease
				Spread over LIBOR(7)	0.10	%	1.23	%			Decrease
				Mortality rate(10)	0	%	24	%			Decrease
				Equity volatility curve	10	%	23	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities and available-for-sale.

(3) Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.

(4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.

(7) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

(8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2020 and December 31, 2019, the minimum withdrawal rate assumption is 76% and 78% respectively. As of June 30, 2020 and December 31, 2019 the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(10) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value.

Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

	Three Months Ended June 30, 2020
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales		Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	42,013		$	0		$	2,779	$	0	$	0		$	0		$	0	$	0	$	0		$	44,792		$	0
Foreign government	152			9			0		0		0			0			0		0		0			161			9
Corporate securities(4)	130,682			16,438			1,471		0		0			(3,377		)	0		11,758		0			156,972			16,378
Structured securities(5)	7,438			9			0		0		0			(304		)	0		0		(5,636		)	1,507			9
Other assets:
Fixed maturities, trading	538			106			0		0		0			0			0		0		0			644			106
Equity securities	9,196			(46		)	0		0		0			0			0		0		0			9,150			(46		)
Other invested assets	4			(4		)	0		0		0			0			0		0		0			0			(4		)
Short-term investments	0			0			0		0		0			0			0		0		0			0			0
Reinsurance recoverables	20,214,824			(1,457,242		)	270,556		0		0			0			0		0		0			19,028,138			(1,317,838		)
Receivables from parent and affiliates	1,575			4			0		0		0			(1,579		)	0		0		0			0			0
Liabilities:
Future policy benefits	(20,196,457		)	1,450,990			0		0		(268,599		)	0			0		0		0			(19,014,066		)	1,319,848
Policyholders' account balances(6)	(900,261		)	(77,695		)	0		0		(67,527		)	0			0		0		0			(1,045,483		)	(82,850		)

	Three Months Ended June 30, 2020
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)			Included in other comprehensive income (loss)(7)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,361	)	$	0		$	18,807	$	10	$	(2,361	)	$	0		$	18,757
Other assets:
Fixed maturities, trading	0			106			0		0		0			106			0
Equity securities	0			(46		)	0		0		0			(46		)	0
Other invested assets	(4		)	0			0		0		(4		)	0			0
Short-term investments	0			0			0		0		0			0			0
Reinsurance recoverables	(1,457,242		)	0			0		0		(1,317,838		)	0			0
Receivables from parent and affiliates	0			0			0		4		0			0			0
Liabilities:
Future policy benefits	1,450,990			0			0		0		1,319,848			0			0
Policyholders' account balances	(77,695		)	0			0		0		(82,850		)	0			0

	Six Months Ended June 30, 2020
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	38,671		$	0		$	6,121	$	0		$	0		$	0		$	0	$	0	$	0		$	44,792		$	0
Foreign government	163			(2		)	0		0			0			0			0		0		0			161			(2		)
Corporate securities(4)	50,083			(1,532		)	8,664		(3,680		)	0			(6,335		)	0		109,772		0			156,972			(807		)
Structured securities(5)	2,001			(475		)	6,145		0			0			(528		)	0		0		(5,636		)	1,507			(473		)
Other assets:
Fixed maturities, trading	668			(24		)	0		0			0			0			0		0		0			644			(24		)
Equity securities	9,898			(748		)	0		0			0			0			0		0		0			9,150			(748		)
Other invested assets	4			(4		)	0		0			0			0			0		0		0			0			(4		)
Short-term investments	0			0			0		0			0			0			0		0		0			0			0
Reinsurance recoverables	8,539,671			9,950,960			537,507		0			0			0			0		0		0			19,028,138			10,102,377
Receivables from parent and affiliates	3,135			23			0		0			0			(3,158		)	0		0		0			0			0
Liabilities:
Future policy benefits	(8,529,566		)	(9,950,913		)	0		0			(533,587		)	0			0		0		0			(19,014,066		)	(10,102,329		)
Policyholders' account balances(6)	(962,351		)	39,960			0		0			(123,092		)	0			0		0		0			(1,045,483		)	42,260

	Six Months Ended June 30, 2020
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)			Included in other comprehensive income (loss)(7)
	(in thousands)
Fixed maturities, available-for-sale	$	(4,140	)	$	0		$	2,031	$	100	$	(3,695	)	$	0		$	2,413
Other assets:
Fixed maturities, trading	0			(24		)	0		0		0			(24		)	0
Equity securities	0			(748		)	0		0		0			(748		)	0
Other invested assets	(4		)	0			0		0		(4		)	0			0
Short-term investments	0			0			0		0		0			0			0
Reinsurance recoverables	9,950,960			0			0		0		10,102,377			0			0
Receivables from parent and affiliates	0			0			0		23		0			0			0
Liabilities:
Future policy benefits	(9,950,913		)	0			0		0		(10,102,329		)	0			0
Policyholders' account balances	39,960			0			0		0		42,260			0			0

	Three Months Ended June 30, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)			Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	32,188		$	0		$	2,204	$	0		$	0		$	0		$	0		$	0	$	0		$	34,392		$	0
Foreign government	164			1			0		0			0			0			0			0		0			165			0
Corporate securities(4)	54,960			234			791		(25		)	0			(2,584		)	(1		)	639		0			54,014			0
Structured securities(5)	79,804			42			0		(1		)	0			(177		)	0			1,700		(77,071		)	4,297			0
Other assets:
Fixed maturities, trading	0			(146		)	0		0			0			0			0			751		0			605			(146		)
Equity securities	15,991			1,114			0		0			0			0			0			0		0			17,105			1,114
Other invested assets	4			0			0		0			0			0			0			0		0			4			0
Short-term investments	0			0			463		0			0			(369		)	0			0		0			94			0
Reinsurance recoverables	6,468,704			1,773,188			244,013		0			0			0			0			0		0			8,485,905			1,833,209
Receivables from parent and affiliates	7,792			82			0		0			0			(1,579		)	0			0		0			6,295			0
Liabilities:
Future policy benefits	(6,459,377		)	(1,775,097		)	0		0			(242,067		)	0			0			0		0			(8,476,541		)	(1,836,960		)
Policyholders' account balances(6)	(53,136		)	(691,927		)	0		0			(41,906		)	0			0			0		0			(786,969		)	(691,376		)

	Three Months Ended June 30, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(665	)	$	0		$	678	$	264	$	0		$	0
Other assets:
Fixed maturities, trading	0			(146		)	0		0		0			(146		)
Equity securities	0			1,114			0		0		0			1,114
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	1,773,188			0			0		0		1,833,209			0
Receivables from parent and affiliates	0			0			0		82		0			0
Liabilities:
Future policy benefits	(1,775,097		)	0			0		0		(1,836,960		)	0
Policyholders' account balances	(691,927		)	0			0		0		(691,376		)	0

	Six Months Ended June 30, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	29,816		$	0		$	4,576	$	0		$	0		$	0		$	0	$	0	$	0		$	34,392		$	0
Foreign government	0			6			0		0			0			0			0		159		0			165			0
Corporate securities(4)	56,588			(3,178		)	2,122		(53		)	0			(9,681		)	0		8,216		0			54,014			(3,163		)
Structured securities(5)	6,556			1,310			0		(2		)	0			(4,156		)	0		77,660		(77,071		)	4,297			0
Other assets:
Fixed maturities, trading	0			(146		)	0		0			0			0			0		751		0			605			(146		)
Equity securities	15,997			1,108			0		0			0			0			0		0		0			17,105			1,108
Other invested assets	4			0			0		0			0			0			0		0		0			4			0
Short-term investments	0			0			463		0			0			(369		)	0		0		0			94			0
Reinsurance recoverables	5,600,008			2,406,506			479,391		0			0			0			0		0		0			8,485,905			2,504,883
Receivables from parent and affiliates	9,261			193			0		0			0			(3,159		)	0		0		0			6,295			0
Liabilities:
Future policy benefits	(5,588,840		)	(2,412,199		)	0		0			(475,502		)	0			0		0		0			(8,476,541		)	(2,510,576		)
Policyholders' account balances(6)	(13,015		)	(725,541		)	0		0			(48,413		)	0			0		0		0			(786,969		)	(724,989		)

	Six Months Ended June 30, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(3,067	)	$	0		$	842	$	363	$	(3,163	)	$	0
Other assets:
Fixed maturities, trading	0			(146		)	0		0		0			(146		)
Equity securities	0			1,108			0		0		0			1,108
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	2,406,506			0			0		0		2,504,883			0
Receivables from parent and affiliates	0			0			0		193		0			0
Liabilities:
Future policy benefits	(2,412,199		)	0			0		0		(2,510,576		)	0
Policyholders' account balances	(725,541		)	0			0		0		(724,989		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Other includes reclassifications of certain assets and liabilities between reporting categories.

(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward.

(7) Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	June 30, 2020
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,258,891	$	1,258,891	$	1,198,559
Policy loans	0		0		1,320,636		1,320,636		1,320,636
Cash and cash equivalents	28,805		139,384		0		168,189		168,189
Accrued investment income	0		89,439		0		89,439		89,439
Reinsurance recoverables	0		0		222,842		222,842		214,466
Receivables from parent and affiliates	0		177,773		0		177,773		177,773
Other assets	0		26,064		0		26,064		26,064
Total assets	$	28,805	$	432,660	$	2,802,369	$	3,263,834	$	3,195,126
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,328,711	$	283,303	$	1,612,014	$	1,603,637
Cash collateral for loaned securities	0		2,700		0		2,700		2,700
Short-term debt to affiliates	0		0		0		0		0
Payables to parent and affiliates	0		88,384		0		88,384		88,384
Other liabilities	0		355,439		0		355,439		355,439
Total liabilities	$	0	$	1,775,234	$	283,303	$	2,058,537	$	2,050,160

	December 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,288,625	$	1,288,625	$	1,239,885
Policy loans	0		0		1,314,064		1,314,064		1,314,064
Cash and cash equivalents	15,557		0		0		15,557		15,557
Accrued investment income	0		89,448		0		89,448		89,448
Reinsurance recoverables	0		0		212,368		212,368		211,813
Receivables from parent and affiliates	0		149,415		0		149,415		149,415
Other assets	0		22,505		0		22,505		22,505
Total assets	$	15,557	$	261,368	$	2,815,057	$	3,091,982	$	3,042,687
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,264,128	$	277,782	$	1,541,910	$	1,541,355
Cash collateral for loaned securities	0		7,529		0		7,529		7,529
Short-term debt to affiliates	0		2,845		0		2,845		2,845
Payables to parent and affiliates	0		216,842		0		216,842		216,842
Other liabilities	0		387,109		0		387,109		387,109
Total liabilities	$	0	$	1,878,453	$	277,782	$	2,156,235	$	2,155,680

(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.