XML 53 R36.htm IDEA: XBRL DOCUMENT

Investments (Tables)

12 Months Ended

Dec. 31, 2016

Available-for-sale Securities [Table Text Block]

The following tables provide information relating to investments in fixed maturity and equity securities by sector as of December 31, 2016 and 2015 (dollars in thousands):



December 31, 2016:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Other-than- temporary impairments in AOCI
Available-for-sale:
Corporate securities	$	18,924,711	$	911,618	$	217,245	$	19,619,084	61.1	%	$	—
Canadian and Canadian provincial governments	2,561,605		1,085,982		3,541		3,644,046		11.4		—
Residential mortgage-backed securities	1,258,039		33,917		13,380		1,278,576		4.0		(375		)
Asset-backed securities	1,443,822		9,350		23,828		1,429,344		4.5		275
Commercial mortgage-backed securities	1,342,440		28,973		7,759		1,363,654		4.2		—
U.S. government and agencies	1,518,702		12,644		63,044		1,468,302		4.6		—
State and political subdivisions	566,761		37,499		12,464		591,796		1.8		—
Other foreign government, supranational and foreign government-sponsored enterprises	2,595,707		123,054		19,938		2,698,823		8.4		—
Total fixed maturity securities	$	30,211,787	$	2,243,037	$	361,199	$	32,093,625	100.0	%	$	(100	)
Non-redeemable preferred stock	$	55,812	$	1,648	$	6,337	$	51,123	18.6	%
Other equity securities	229,767		1,792		7,321		224,238		81.4
Total equity securities	$	285,579	$	3,440	$	13,658	$	275,361	100.0	%



December 31, 2015:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Other-than- temporary impairments in AOCI
Available-for-sale:
Corporate securities	$	17,575,507	$	599,718	$	467,069	$	17,708,156	59.7	%	$	—
Canadian and Canadian provincial governments	2,469,009		1,110,282		2,532		3,576,759		12.1		—
Residential mortgage-backed securities	1,277,998		45,152		11,673		1,311,477		4.4		(300		)
Asset-backed securities	1,219,000		12,052		18,376		1,212,676		4.1		354
Commercial mortgage-backed securities	1,456,848		37,407		11,168		1,483,087		5.0		(1,609		)
U.S. government and agencies	1,423,791		15,586		57,718		1,381,659		4.7		—
State and political subdivisions	480,067		40,014		9,067		511,014		1.7		—
Other foreign government, supranational and foreign government-sponsored enterprises	2,420,757		78,964		41,644		2,458,077		8.3		—
Total fixed maturity securities	$	28,322,977	$	1,939,175	$	619,247	$	29,642,905	100.0	%	$	(1,555	)
Non-redeemable preferred stock	$	85,645	$	7,837	$	5,962	$	87,520	69.5	%
Other equity securities	40,584		—		2,242		38,342		30.5
Total equity securities	$	126,229	$	7,837	$	8,204	$	125,862	100.0	%

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

The following table includes fixed maturity securities pledged and received as collateral and assets in trust held to satisfy collateral requirements under derivative transactions and certain third-party reinsurance treaties as of December 31, 2016 and 2015 (dollars in thousands):



	2016				2015
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	207,066	$	210,676	$	169,678	$	176,782
Fixed maturity securities received as collateral	n/a		300,925		n/a		242,914
Assets in trust held to satisfy collateral requirements	12,135,258		12,874,370		10,535,729		10,928,393

Concentration Risk Disclosure [Text Block]

The Company’s exposure to concentrations of credit risk from single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and its agencies, as well as the securities disclosed below, as of December 31, 2016 and 2015 (dollars in thousands).



	2016				2015
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Canadian province of Quebec	$	1,004,261	$	1,612,957	$	943,484	$	1,525,903
Canadian province of Ontario	832,764		1,126,433		864,444		1,199,080

Investments Classified By Contractual Maturity Date [Table Text Block]

Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date.



	Amortized Cost		Estimated Fair Value
Available-for-sale:
Due in one year or less	$	791,302	$	800,010
Due after one year through five years	6,665,056		6,897,024
Due after five years through ten years	9,042,167		9,390,938
Due after ten years	9,668,961		10,934,079
Asset and mortgage-backed securities	4,044,301		4,071,574
Total	$	30,211,787	$	32,093,625

Fixed Maturity Holdings Industry Types [Table Text Block]

The tables below show the major industry types of the Company’s corporate fixed maturity holdings as of December 31, 2016 and 2015 (dollars in thousands):



December 31, 2016:	Amortized Cost		Estimated Fair Value		% of Total
Finance	$	6,725,199	$	6,888,968	35.2	%
Industrial	10,228,813		10,639,613		54.2
Utility	1,970,699		2,090,503		10.6
Total	$	18,924,711	$	19,619,084	100.0	%

December 31, 2015:	Amortized Cost		Estimated Fair Value		% of Total
Finance	$	5,408,791	$	5,555,044	31.4	%
Industrial	10,211,426		10,129,917		57.2
Utility	1,955,290		2,023,195		11.4
Total	$	17,575,507	$	17,708,156	100.0	%

Roll Forward Of Cumulative Credit Loss Component Of Otti Income Loss [Table Text Block]

The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts (dollars in thousands):



	2016			2015		2014
Balance, beginning of period	$	7,284		$	7,284	$	11,696
Additional impairments - credit loss OTTI recognized on securities previously impaired	231			—		—
Credit loss previously recognized on securities which matured, paid down, prepaid or were sold during the period	(1,502		)	—		(4,412		)
Balance, end of period	$	6,013		$	7,284	$	7,284

AccountingForCertainLoansAndDebtSecuritiesAcquiredInTransferDisclosureTextBlock

The following tables present information on the Company’s purchased credit impaired securities, which are included in fixed maturity securities available-for-sale as of December 31, 2016 and 2015 (dollars in thousands):



	2016		2015
Outstanding principal and interest balance⁽¹⁾	$	85,078	$	343,640
Carrying value, including accrued interest⁽²⁾	$	69,717	$	287,663


(1)	Represents the contractually required payments which is the sum of contractual principal, whether or not currently due, and accrued interest.


(2)	Estimated fair value plus accrued interest.

Schedule Of Certain Loans Acquired In Transfer Accounted For As Available For Sale Debt Securities At Acquisition Date [Table Text Block]

The following table presents information about purchased credit impaired investments acquired during the periods ended December 31, 2016 and 2015, as of the acquisition dates (dollars in thousands):



	2016		2015
Contractually required payments (including interest)	$	7,310	$	217,187
Cash flows expected to be collected⁽¹⁾	$	5,748	$	179,025
Fair value of investments acquired	$	4,139	$	137,399


(1)	Represents undiscounted principal and interest cash flow expectations at the date of acquisition.

Schedule Of Certain Loans Acquired In Transfer Accounted For As Available For Sale Debt Securities Accretable Yield [Table Text Block]

The following table presents activity for the accretable yield on purchased credit impaired securities for the years ended December 31, 2016 and 2015 (dollars in thousands):



	2016			2015
Balance, beginning of period	$	88,016		$	67,171
Investments purchased	1,609			41,626
Accretion	(9,004		)	(11,402		)
Disposals	(59,078		)	(1,109		)
Reclassification from nonaccretable difference	(2,105		)	(8,270		)
Balance, end of period	$	19,438		$	88,016

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures [Table Text Block]

The following table presents the total gross unrealized losses for the 1,535 and 2,080 fixed maturity and equity securities at December 31, 2016 and 2015, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in thousands):



	2016				2015
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	337,831	90.1	%	$	463,109	73.8	%
20% or more for less than six months	19,438		5.2		142,495		22.7
20% or more for six months or greater	17,588		4.7		21,847		3.5
Total	$	374,857	100.0	%	$	627,451	100.0	%

Fair Value And Investments In Debt And Equity Securities Disclosures [Table Text Block]

These investments are presented by class and grade of security, as well as the length of time the related fair value has remained below amortized cost.



	Less than 12 months				12 months or greater				Total
December 31, 2016:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate securities	$	4,661,706	$	124,444	$	549,273	$	43,282	$	5,210,979	$	167,726
Canadian and Canadian provincial governments	101,578		3,541		—		—		101,578		3,541
Residential mortgage-backed securities	490,473		9,733		112,216		3,635		602,689		13,368
Asset-backed securities	563,259		12,010		257,166		9,653		820,425		21,663
Commercial mortgage-backed securities	368,465		6,858		10,853		166		379,318		7,024
U.S. government and agencies	1,056,101		63,044		—		—		1,056,101		63,044
State and political subdivisions	187,194		9,396		13,635		3,068		200,829		12,464
Other foreign government, supranational and foreign government-sponsored enterprises	524,236		13,372		51,097		2,981		575,333		16,353
Total investment grade securities	7,953,012		242,398		994,240		62,785		8,947,252		305,183
Below investment grade securities:
Corporate securities	330,757		7,914		163,152		41,605		493,909		49,519
Residential mortgage-backed securities	—		—		412		12		412		12
Asset-backed securities	5,904		700		12,581		1,465		18,485		2,165
Commercial mortgage-backed securities	5,815		735		—		—		5,815		735
Other foreign government, supranational and foreign government-sponsored enterprises	32,355		1,258		39,763		2,327		72,118		3,585
Total below investment grade securities	374,831		10,607		215,908		45,409		590,739		56,016
Total fixed maturity securities	$	8,327,843	$	253,005	$	1,210,148	$	108,194	$	9,537,991	$	361,199
Non-redeemable preferred stock	$	10,831	$	831	$	21,879	$	5,506	$	32,710	$	6,337
Other equity securities	202,068		7,020		6,751		301		208,819		7,321
Total equity securities	$	212,899	$	7,851	$	28,630	$	5,807	$	241,529	$	13,658



	Less than 12 months				12 months or greater				Total
December 31, 2015:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate securities	$	6,388,148	$	323,961	$	294,755	$	40,861	$	6,682,903	$	364,822
Canadian and Canadian provincial governments	122,746		2,532		—		—		122,746		2,532
Residential mortgage-backed securities	452,297		7,036		82,314		4,057		534,611		11,093
Asset-backed securities	581,701		9,825		199,298		7,100		780,999		16,925
Commercial mortgage-backed securities	514,877		9,806		31,177		997		546,054		10,803
U.S. government and agencies	1,010,387		57,718		—		—		1,010,387		57,718
State and political subdivisions	157,837		5,349		13,016		3,718		170,853		9,067
Other foreign government, supranational and foreign government-sponsored enterprises	702,962		18,279		38,379		4,206		741,341		22,485
Total investment grade securities	9,930,955		434,506		658,939		60,939		10,589,894		495,445
Below investment grade securities:
Corporate securities	554,688		71,171		114,427		31,076		669,115		102,247
Residential mortgage-backed securities	22,646		282		7,679		298		30,325		580
Asset-backed securities	6,772		201		9,335		1,250		16,107		1,451
Commercial mortgage-backed securities	3,253		248		767		117		4,020		365
Other foreign government, supranational and foreign government-sponsored enterprises	60,668		7,356		31,693		11,803		92,361		19,159
Total below investment grade securities	648,027		79,258		163,901		44,544		811,928		123,802
Total fixed maturity securities	$	10,578,982	$	513,764	$	822,840	$	105,483	$	11,401,822	$	619,247
Non-redeemable preferred stock	$	12,331	$	2,175	$	12,191	$	3,787	$	24,522	$	5,962
Other equity securities	38,327		2,242		—		—		38,327		2,242
Total equity securities	$	50,658	$	4,417	$	12,191	$	3,787	$	62,849	$	8,204

Investment Income [Table Text Block]

Major categories of investment income, net of related expenses consist of the following (dollars in thousands):



	2016			2015			2014
Fixed maturity securities available-for-sale	$	1,285,406		$	1,177,706		$	1,052,715
Mortgage loans on real estate	168,582			149,564			148,417
Policy loans	63,837			62,955			55,248
Funds withheld at interest	368,728			343,031			447,364
Short-term investments and cash and cash equivalents	8,051			7,574			8,955
Other	89,371			61,709			63,312
Investment income	1,983,975			1,802,539			1,776,011
Investment expense	(72,089		)	(68,044		)	(62,320		)
Investment income, net of related expenses	$	1,911,886		$	1,734,495		$	1,713,691

Gain (Loss) on Investments [Table Text Block]

Investment related gains (losses), net, consist of the following (dollars in thousands):



	2016			2015			2014
Fixed maturity and equity securities available for sale:
Other-than-temporary impairment losses on fixed maturities	$	(38,805	)	$	(57,380	)	$	(7,766	)
Portion of loss recognized in accumulated other comprehensive income	74			—			—
Net other-than-temporary impairment losses on fixed maturity securities recognized in earnings	$	(38,731	)	$	(57,380	)	$	(7,766	)
Gain on investment activity	154,370			73,079			65,435
Loss on investment activity	(49,965		)	(71,893		)	(31,295		)
Other impairment losses and change in mortgage loan provision	(11,006		)	(6,953		)	(5,315		)
Derivatives and other, net	39,527			(101,603		)	165,134
Total investment related gains (losses), net	$	94,195		$	(164,750	)	$	186,193

Schedule of Repurchase Agreements [Table Text Block]

The following table includes the amount of borrowed securities, securities lent and securities collateral received as part of the securities lending program, repurchased/reverse repurchased securities pledged and received and cash received as of December 31, 2016 and 2015 (dollars in thousands).



	2016				2015
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	263,820	$	279,186	$	259,540	$	266,297
Securities lending:
Securities loaned	74,389		73,625		—		—
Securities received	n/a		80,000		n/a		—
Repurchase program/reverse repurchase program:
Securities pledged	476,531		499,891		443,435		465,889
Securities received	n/a		515,200		n/a		481,197
Cash received	—		28,832		—		—

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block]

The following tables present information on the Company’s securities lending and repurchase transactions as of December 31, 2016 and 2015, respectively (dollars in thousands). Collateral associated with certain borrowed securities is not included within the tables as the collateral pledged to each counterparty is the right to reinsurance treaty cash flows.



	December 31, 2016
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transaction:
Corporate securities	$	—	$	—	$	4,017	$	69,608	$	73,625
Total	—		—		4,017		69,608		73,625
Repurchase transactions:
Corporate securities	—		—		3,220		166,979		170,199
Residential mortgage-backed securities	—		—		—		92,546		92,546
U.S. government and agencies	—		—		—		216,000		216,000
Foreign government	—		—		—		19,900		19,900
Other	1,246		—		—		—		1,246
Total	1,246		—		3,220		495,425		499,891
Total transactions	$	1,246	$	—	$	7,237	$	565,033	$	573,516

Gross amount of recognized liabilities for securities lending and repurchase transactions in preceding table									$	624,032
Amounts related to agreements not included in offsetting disclosure									$	50,516



	December 31, 2015
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Repurchase transactions:
Corporate securities	$	—	$	2,951	$	—	$	147,324	$	150,275
Residential mortgage-backed securities	—		—		—		97,639		97,639
U.S. government and agencies	—		—		—		199,431		199,431
Foreign government	—		—		—		3,358		3,358
Other	15,186		—		—		—		15,186
Total transactions	$	15,186	$	2,951	$	—	$	447,752	$	465,889

Gross amount of recognized liabilities for repurchase transactions in preceding table									$	481,197
Amounts related to agreements not included in offsetting disclosure									$	15,308

Disclosure Of Real Estate Holdings By Property Type [Table Text Block]

The distribution of mortgage loans by property type, gross of valuation allowances is as follows as of December 31, 2016 and 2015 (dollars in thousands):



	2016				2015
	Recorded Investment		Percentage of Total		Recorded Investment		Percentage of Total
Property type:
Office building	$	1,270,113	33.6	%	$	980,858	31.3	%
Retail	1,179,936		31.2		1,026,018		32.7
Industrial	713,461		18.8		527,485		16.8
Apartment	447,088		11.8		420,014		13.4
Other commercial	172,609		4.6		182,389		5.8
Total	$	3,783,207	100.0	%	$	3,136,764	100.0	%

Disclosure of Real Estate Holdings Classified By Contractual Maturity Date [Table Text Block]

The maturities of the mortgage loans, gross of valuation allowances, as of December 31, 2016 and 2015 are as follows (dollars in thousands):



	2016				2015
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	822,073	21.7	%	$	873,280	27.8	%
Due after five years through ten years	2,099,559		55.5		1,561,535		49.8
Due after ten years	861,575		22.8		701,949		22.4
Total	$	3,783,207	100.0	%	$	3,136,764	100.0	%

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables set forth certain key credit quality indicators of the Company’s recorded investment in mortgage loans, gross of valuation allowances, as of December 31, 2016 and 2015 (dollars in thousands):



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
December 31, 2016:
Loan-to-Value Ratio
0% - 59.99%	$	1,859,640	$	64,749	$	1,366	$	1,925,755	50.8	%
60% - 69.99%	1,257,788		34,678		—		1,292,466		34.2
70% - 79.99%	370,092		20,869		24,369		415,330		11.0
Greater than 80%	114,297		—		35,359		149,656		4.0
Total	$	3,601,817	$	120,296	$	61,094	$	3,783,207	100.0	%



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
December 31, 2015:
Loan-to-Value Ratio
0% - 59.99%	$	1,621,056	$	77,118	$	2,367	$	1,700,541	54.2	%
60% - 69.99%	881,611		14,332		19,805		915,748		29.2	%
70% - 79.99%	446,565		7,947		34,539		489,051		15.6	%
Greater than 80%	3,948		13,550		13,926		31,424		1.0	%
Total	$	2,953,180	$	112,947	$	70,637	$	3,136,764	100.0	%

Recorded Investment And Allowance For Credit Losses [Table Text Block]

The following table presents the recorded investment in mortgage loans, by method of measuring impairment, and the related valuation allowances, as of December 31, 2016 and 2015 (dollars in thousands):



	2016		2015
Mortgage loans:
Individually measured for impairment	$	2,216	$	16,421
Collectively measured for impairment	3,780,991		3,120,343
Mortgage loans, gross of valuation allowances	3,783,207		3,136,764
Valuation allowances:
Individually measured for impairment	—		588
Collectively measured for impairment	7,685		6,225
Total valuation allowances	7,685		6,813
Mortgage loans, net of valuation allowances	$	3,775,522	$	3,129,951

Allowance For Loan And Lease Losses Provision For Loss Net [Table Text Block]

Information regarding the Company’s loan valuation allowances for mortgage loans as of December 31, 2016, 2015 and 2014 are as follows (dollars in thousands):



	2016		2015		2014
Balance, beginning of period	$	6,813	$	6,471	$	10,106
Charge-offs, net of recoveries	—		—		(2,731		)
Provision (release)	872		342		(904		)
Balance, end of period	$	7,685	$	6,813	$	6,471

Impaired Financing Receivables [Table Text Block]

Information regarding the portion of the Company’s mortgage loans that were impaired as of December 31, 2016 and 2015 is as follows (dollars in thousands):



	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
December 31, 2016:
Impaired mortgage loans with no valuation allowance recorded	$	2,758	$	2,216	$	—	$	2,216
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	2,758	$	2,216	$	—	$	2,216
December 31, 2015:
Impaired mortgage loans with no valuation allowance recorded	$	4,033	$	4,033	$	—	$	4,033
Impaired mortgage loans with valuation allowance recorded	12,898		12,388		588		11,800
Total impaired mortgage loans	$	16,931	$	16,421	$	588	$	15,833

The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands):



	2016				2015				2014
	Average Investment⁽¹⁾		Interest Income		Average Investment⁽¹⁾		Interest Income		Average Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	2,249	$	142	$	6,033	$	330	$	13,227	$	647
Impaired mortgage loans with valuation allowance recorded	—		—		11,592		770		13,827		637
Total	$	2,249	$	142	$	17,625	$	1,100	$	27,054	$	1,284


(1)	Average recorded investment represents the average loan balances as of the beginning of period and all subsequent quarterly end of period balances.

Schedule of Other Assets [Table Text Block]

Other invested assets represented approximately 3.6% and 3.1% of the Company’s total investments as of December 31, 2016 and 2015, respectively. Carrying values of these assets as of December 31, 2016 and 2015 are as follows (dollars in thousands):



	2016		2015
Equity securities	$	275,361	$	125,862
Limited partnerships and real estate joint ventures	687,522		567,697
Derivatives	229,108		256,178
FVO contractholder-directed unit-linked investments	190,120		197,547
Other	209,829		150,836
Total other invested assets	$	1,591,940	$	1,298,120