Investments (Tables)

6 Months Ended

Jun. 30, 2017

The following tables provide information relating to investments in fixed maturity and equity securities by sector as of June 30, 2017 and December 31, 2016 (dollars in thousands):



June 30, 2017:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Other-than- temporary impairments in AOCI
Available-for-sale:
Corporate securities	$	21,252,180	$	1,189,750	$	100,269	$	22,341,661	61.5	%	$	—
Canadian and Canadian provincial governments	2,713,972		1,296,242		2,460		4,007,754		11.0		—
Residential mortgage-backed securities	1,505,474		42,619		8,794		1,539,299		4.2		—
Asset-backed securities	1,630,499		17,266		5,924		1,641,841		4.5		275
Commercial mortgage-backed securities	1,558,035		28,928		4,935		1,582,028		4.4		—
U.S. government and agencies	1,738,419		15,193		32,048		1,721,564		4.7		—
State and political subdivisions	599,622		47,564		8,216		638,970		1.8		—
Other foreign government, supranational and foreign government-sponsored enterprises	2,740,133		141,973		9,797		2,872,309		7.9		—
Total fixed maturity securities	$	33,738,334	$	2,779,535	$	172,443	$	36,345,426	100.0	%	$	275
Non-redeemable preferred stock	$	34,545	$	435	$	3,021	$	31,959	30.6	%
Other equity securities	75,413		522		3,617		72,318		69.4
Total equity securities	$	109,958	$	957	$	6,638	$	104,277	100.0	%



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	%

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 June 30, 2017 and December 31, 2016 (dollars in thousands):



	June 30, 2017				December 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	69,849	$	74,441	$	207,066	$	210,676
Fixed maturity securities received as collateral	n/a		457,801		n/a		300,925
Assets in trust held to satisfy collateral requirements	14,706,225		15,723,178		12,135,258		12,874,370

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 June 30, 2017 and December 31, 2016 (dollars in thousands).



	June 30, 2017				December 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Canadian province of Quebec	$	1,060,922	$	1,785,573	$	1,004,261	$	1,612,957
Canadian province of Ontario	886,518		1,228,391		832,764		1,126,433

Investments Classified By Contractual Maturity Date

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale at June 30, 2017 are shown by contractual maturity in the table below (dollars in thousands). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. 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	$	861,051	$	868,405
Due after one year through five years	7,421,897		7,696,337
Due after five years through ten years	9,514,341		10,016,984
Due after ten years	11,247,037		13,000,532
Asset and mortgage-backed securities	4,694,008		4,763,168
Total	$	33,738,334	$	36,345,426

Fixed Maturity Holdings Industry Types Weighted Average Credit Ratings [Table Text Block]

The tables below show the major industry types of the Company’s corporate fixed maturity holdings as of June 30, 2017 and December 31, 2016 (dollars in thousands):



June 30, 2017:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	7,741,482	$	8,077,195	36.1	%
Industrial	11,215,292		11,792,664		52.9
Utility	2,295,406		2,471,802		11.0
Total	$	21,252,180	$	22,341,661	100.0	%

December 31, 2016:			Estimated
	Amortized Cost		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	%

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]



	Three months ended June 30,					Six months ended June 30,
	2017		2016			2017			2016
Balance, beginning of period	$	3,677	$	7,284		$	6,013		$	7,284
Credit loss OTTI previously recognized on securities which matured, paid down, prepaid or were sold during the period	—		(310		)	(2,336		)	(310		)
Balance, end of period	$	3,677	$	6,974		$	3,677		$	6,974

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures

The following table presents the total gross unrealized losses for the 1,134 and 1,535 fixed maturity and equity securities as of June 30, 2017 and December 31, 2016, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in thousands):



	June 30, 2017				December 31, 2016
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	150,762	84.2	%	$	337,831	90.1	%
20% or more for less than six months	7,593		4.2		19,438		5.2
20% or more for six months or greater	20,726		11.6		17,588		4.7
Total	$	179,081	100.0	%	$	374,857	100.0	%

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following tables present the estimated fair values and gross unrealized losses, including other-than-temporary impairment losses reported in AOCI, for 1,134 and 1,535 fixed maturity and equity securities that have estimated fair values below amortized cost as of June 30, 2017 and December 31, 2016, respectively (dollars in thousands). 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
			Gross				Gross				Gross
June 30, 2017:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate securities	$	2,895,605	$	46,389	$	399,546	$	23,252	$	3,295,151	$	69,641
Canadian and Canadian provincial governments	116,719		2,457		—		—		116,719		2,457
Residential mortgage-backed securities	471,933		6,872		100,785		1,918		572,718		8,790
Asset-backed securities	285,211		1,451		204,154		3,916		489,365		5,367
Commercial mortgage-backed securities	352,867		4,897		2,195		38		355,062		4,935
U.S. government and agencies	1,378,976		31,962		13,763		86		1,392,739		32,048
State and political subdivisions	125,465		5,098		13,558		3,118		139,023		8,216
Other foreign government, supranational and foreign government-sponsored enterprises	440,670		7,189		29,234		1,616		469,904		8,805
Total investment grade securities	6,067,446		106,315		763,235		33,944		6,830,681		140,259
Below investment grade securities:
Corporate securities	255,991		4,547		93,562		26,081		349,553		30,628
Canadian and Canadian provincial governments	1,247		3		—		—		1,247		3
Residential mortgage-backed securities	—		—		107		4		107		4
Asset-backed securities	—		—		7,295		557		7,295		557
Other foreign government, supranational and foreign government-sponsored enterprises	38,069		287		17,606		705		55,675		992
Total below investment grade securities	295,307		4,837		118,570		27,347		413,877		32,184
Total fixed maturity securities	$	6,362,753	$	111,152	$	881,805	$	61,291	$	7,244,558	$	172,443
Non-redeemable preferred stock	$	—	$	—	$	24,807	$	3,021	$	24,807	$	3,021
Other equity securities	64,990		3,617		—		—		64,990		3,617
Total equity securities	$	64,990	$	3,617	$	24,807	$	3,021	$	89,797	$	6,638



	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
December 31, 2016:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		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

Investment Income

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



	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Fixed maturity securities available-for-sale	$	355,735		$	323,592		$	680,235		$	636,007
Mortgage loans on real estate	44,442			41,900			88,789			81,692
Policy loans	15,194			16,372			30,466			32,506
Funds withheld at interest	97,367			112,893			224,945			168,873
Short-term investments and cash and cash equivalents	1,779			2,322			3,289			4,513
Other invested assets	23,066			28,150			42,893			36,758
Investment income	537,583			525,229			1,070,617			960,349
Investment expense	(19,045		)	(17,563		)	(37,715		)	(35,417		)
Investment income, net of related expenses	$	518,538		$	507,666		$	1,032,902		$	924,932

Gain Loss On Investments

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



	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Fixed maturity and equity securities available for sale:
Other-than-temporary impairment losses on fixed maturity securities recognized in earnings	$	(3,401	)	$	(846	)	$	(20,590	)	$	(34,663	)
Gain on investment activity	54,220			53,615			72,113			80,807
Loss on investment activity	(10,471		)	(22,556		)	(23,034		)	(34,343		)
Other impairment losses and change in mortgage loan provision	(6,675		)	211			(6,774		)	(1,849		)
Derivatives and other, net	22,622			87,840			95,103			(12,574		)
Total investment related gains (losses), net	$	56,295		$	118,264		$	116,818		$	(2,622	)

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 and repurchased/reverse repurchased securities pledged and received as of June 30, 2017 and December 31, 2016 (dollars in thousands).



	June 30, 2017				December 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	269,280	$	284,083	$	263,820	$	279,186
Securities lending:
Securities loaned	117,217		121,064		74,389		73,625
Securities received	n/a		109,000		n/a		80,000
Repurchase program/reverse repurchase program:
Securities pledged	486,700		509,579		476,531		499,891
Securities received	n/a		517,871		n/a		515,200

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

The following table presents information on the Company’s securities lending and repurchase transactions as of June 30, 2017 and December 31, 2016 (dollars in thousands). Collateral associated with certain borrowed securities is not included within the table, as the collateral pledged to each counterparty is the right to reinsurance treaty cash flows.



	June 30, 2017
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate securities	$	—	$	—	$	—	$	121,064	$	121,064
Total	—		—		—		121,064		121,064
Repurchase transactions:
Corporate securities	—		—		1,311		177,555		178,866
Residential mortgage-backed securities	—		—		—		89,333		89,333
U.S. government and agencies	—		—		—		219,522		219,522
Foreign government	—		—		—		20,953		20,953
Other	905		—		—		—		905
Total	905		—		1,311		507,363		509,579
Total transactions	$	905	$	—	$	1,311	$	628,427	$	630,643

Gross amount of recognized liabilities for securities lending and repurchase transactions in preceding table									$	674,817
Amounts related to agreements not included in offsetting disclosure									$	44,174



	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 transactions:
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 borrowings	$	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

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

The distribution of mortgage loans by property type is as follows as of June 30, 2017 and December 31, 2016 (dollars in thousands):



	June 30, 2017					December 31, 2016
Property type:	Carrying Value			% of Total		Carrying Value			% of Total
Office building	$	1,402,369		34.1	%	$	1,270,113		33.6	%
Retail	1,248,238			30.3		1,179,936			31.2
Industrial	809,309			19.7		713,461			18.8
Apartment	483,811			11.8		447,088			11.8
Other commercial	170,305			4.1		172,609			4.6
Recorded investment	4,114,032			100.0	%	$	3,783,207		100.0	%
Unamortized balance of loan origination fees and expenses	(1,389		)			—
Valuation allowances	(8,156		)			(7,685		)
Total mortgage loans on real estate	$	4,104,487				$	3,775,522

Mortgage Loans Classified By Contractual Maturity Date [Table Text Block]

The maturities of the mortgage loans as of June 30, 2017 and December 31, 2016 are as follows (dollars in thousands):



	June 30, 2017				December 31, 2016
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	1,037,000	25.2	%	$	822,073	21.7	%
Due after five years through ten years	2,236,805		54.4		2,099,559		55.5
Due after ten years	840,227		20.4		861,575		22.8
Total	$	4,114,032	100.0	%	$	3,783,207	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 as of June 30, 2017 and December 31, 2016 (dollars in thousands):



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
June 30, 2017:
Loan-to-Value Ratio
0% - 59.99%	$	2,009,905	$	60,110	$	4,060	$	2,074,075	50.4	%
60% - 69.99%	1,453,061		57,332		7,684		1,518,077		36.9
70% - 79.99%	377,744		20,575		37,091		435,410		10.6
Greater than 80%	61,704		—		24,766		86,470		2.1
Total	$	3,902,414	$	138,017	$	73,601	$	4,114,032	100.0	%



	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	%

Past Due Financing Receivables [Table Text Block]

The age analysis of the Company’s past due recorded investments in mortgage loans as of June 30, 2017 and December 31, 2016.



	June 30, 2017		December 31, 2016
31-60 days past due	$	—	$	—
61-90 days past due	3,729		—
Greater than 90 days	—		—
Total past due	$	3,729	$	—
Current	4,110,303		3,783,207
Total	$	4,114,032	$	3,783,207

Recorded Investment And Allowance For Credit Losses

The following table presents the recorded investment in mortgage loans, by method of measuring impairment, and the related valuation allowances as of June 30, 2017 and December 31, 2016 (dollars in thousands):



	June 30, 2017		December 31, 2016
Mortgage loans:
Individually measured for impairment	$	2,077	$	2,216
Collectively measured for impairment	4,111,955		3,780,991
Recorded investment	$	4,114,032	$	3,783,207
Valuation allowances:
Individually measured for impairment	$	—	$	—
Collectively measured for impairment	8,156		7,685
Total valuation allowances	$	8,156	$	7,685

Allowance For Mortgage Loan And Lease Losses Provision For Loss Net

Information regarding the Company’s loan valuation allowances for mortgage loans for the three and six months ended June 30, 2017 and 2016 is as follows (dollars in thousands):



	Three months ended June 30,					Six months ended June 30,
	2017		2016			2017		2016
Balance, beginning of period	$	7,786	$	6,824		$	7,685	$	6,813
Provision (release)	366		(325		)	467		(314		)
Translation adjustment	4		—			4		—
Balance, end of period	$	8,156	$	6,499		$	8,156	$	6,499

Impaired Financing Receivables Table

Information regarding the portion of the Company’s mortgage loans that were impaired as of June 30, 2017 and December 31, 2016 is as follows (dollars in thousands):



	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
June 30, 2017:
Impaired mortgage loans with no valuation allowance recorded	$	2,620	$	2,077	$	—	$	2,077
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	2,620	$	2,077	$	—	$	2,077
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

The Company’s average investment in impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in thousands):
	Three months ended June 30,
	2017				2016
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	2,088	$	33	$	3,901	$	107
Impaired mortgage loans with valuation allowance recorded	—		—		4,724		—
Total impaired mortgage loans	$	2,088	$	33	$	8,625	$	107

	Six months ended June 30,
	2017				2016
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	2,131	$	67	$	3,945	$	216
Impaired mortgage loans with valuation allowance recorded	—		—		7,279		—
Total impaired mortgage loans	$	2,131	$	67	$	11,224	$	216

(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 Invested Assets [Table Text Block]

Carrying values of these assets as of June 30, 2017 and December 31, 2016 are as follows (dollars in thousands):



	June 30, 2017		December 31, 2016
Equity securities	$	104,277	$	275,361
Limited partnership interests and real estate joint ventures	746,573		687,522
Derivatives	158,048		229,108
FVO contractholder-directed unit-linked investments	204,630		190,120
Other	284,842		209,829
Total other invested assets	$	1,498,370	$	1,591,940