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As Of Filer Filing For·On·As Docs:Size 5/10/23 American Equity Inv Life Hold… Co 10-Q 3/31/23 100:20M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 4.70M 2: EX-10.1 Material Contract HTML 52K 3: EX-10.2 Material Contract HTML 35K 4: EX-31.1 Certification -- §302 - SOA'02 HTML 36K 5: EX-31.2 Certification -- §302 - SOA'02 HTML 36K 6: EX-32.1 Certification -- §906 - SOA'02 HTML 32K 7: EX-32.2 Certification -- §906 - SOA'02 HTML 32K 13: R1 Cover Page HTML 90K 14: R2 Consolidated Balance Sheets HTML 190K 15: R3 Consolidated Balance Sheets (Parentheticals) HTML 89K 16: R4 Consolidated Statements of Operations HTML 178K 17: R5 Consolidated Statements of Comprehensive Income HTML 88K (Loss) 18: R6 Consolidated Statements of Changes in HTML 99K Stockholders' Equity 19: R7 Consolidated Statements of Cash Flows HTML 194K 20: R8 Consolidated Statements of Operations HTML 32K (Parentheticals) 21: R9 Significant Accounting Policies HTML 64K 22: R10 Fair Values of Financial Instruments HTML 281K 23: R11 Investments HTML 254K 24: R12 Mortgage Loans on Real Estate HTML 422K 25: R13 Variable Interest Entities HTML 56K 26: R14 Derivative Instruments HTML 139K 27: R15 Deferred Policy Acquisition Costs and Deferred HTML 129K Sales Inducements 28: R16 Policyholder Liabilities HTML 344K 29: R17 Notes and Loan Payable HTML 49K 30: R18 Commitments and Contingencies HTML 35K 31: R19 Earnings (Loss) Per Common Share and Stockholders' HTML 55K Equity 32: R20 Subsequent Events HTML 32K 33: R21 Significant Accounting Policies (Policies) HTML 107K 34: R22 Significant Accounting Policies (Tables) HTML 255K 35: R23 Fair Values of Financial Instruments (Tables) HTML 325K 36: R24 Investments (Tables) HTML 250K 37: R25 Mortgage Loans on Real Estate (Tables) HTML 418K 38: R26 Variable Interest Entities (Tables) HTML 55K 39: R27 Derivative Instruments (Tables) HTML 141K 40: R28 Deferred Policy Acquisition Costs and Deferred HTML 89K Sales Inducements (Tables) 41: R29 Policyholder Liabilities (Tables) HTML 367K 42: R30 Notes and Loan Payable (Tables) HTML 46K 43: R31 Earnings (Loss) Per Common Share and Stockholders' HTML 46K Equity (Tables) 44: R32 Significant Accounting Policies (Narrative) HTML 44K (Details) 45: R33 Significant Accounting Policies - Schedule of HTML 106K Long-Duration Contracts (Details) 46: R34 Fair Values of Financial Instruments (Fair Values HTML 89K and Carrying Amounts of Financial Instruments) (Details) 47: R35 Fair Values of Financial Instruments (Assets and HTML 153K Liabilities Measured on a Recurring Basis by Fair Value Hierarchy) (Details) 48: R36 Fair Values of Financial Instruments (Narrative) HTML 133K (Details) 49: R37 Fair Values of Financial Instruments (Assumptions HTML 64K Used in Estimating Fair Value) (Details) 50: R38 Fair Values of Financial Instruments HTML 88K (Reconciliation of Beginning and Ending Balances of Level 3 Assets and Liabilities) (Details) 51: R39 Investments (Narrative) (Details) HTML 43K 52: R40 Investments (Schedule of Fixed Maturity HTML 81K Securities) (Details) 53: R41 Investments (Fixed Maturity Securities by HTML 89K Contractual Maturity) (Details) 54: R42 Investments (Net Unrealized Gains (Losses) on HTML 38K Investments Reported as a Separate Component of Stockholders' Equity) (Details) 55: R43 Investments (Credit Quality of Fixed Maturity HTML 51K Security Portfolio by NAIC Designation) (Details) 56: R44 Investments (Gross Unrealized Losses on HTML 93K Investments, By Category and Length of Time) (Details) 57: R45 Investments (Changes in Net Unrealized HTML 43K Gains/Losses on Investments) (Details) 58: R46 Investments (Net Realized Gains (Losses) on HTML 63K Investments) (Details) 59: R47 Investments (Rollforward of Allowance for Credit HTML 49K Loss) (Details) 60: R48 Mortgage Loans on Real Estate (Narrative) HTML 63K (Details) 61: R49 Mortgage Loans on Real Estate (Summary of Mortgage HTML 60K Loan Portfolio) (Details) 62: R50 Mortgage Loans on Real Estate (Commercial Mortgage HTML 71K Loan Portfolio Summarized by Geographic Region and Property Type) (Details) 63: R51 Mortgage Loans on Real Estate (Rollforward of HTML 51K Valuation Allowance on Mortgage Loan Portfolios) (Details) 64: R52 Mortgage Loans on Real Estate (Summary By Debt HTML 140K Service Coverage and Loan to Value Ratios) (Details) 65: R53 Mortgage Loans on Real Estate (Aging of Financing HTML 114K Receivables) (Details) 66: R54 Variable Interest Entities - Narrative (Details) HTML 44K 67: R55 Variable Interest Entities (Consolidated VIEs) HTML 68K (Details) 68: R56 Variable Interest Entities (Unconsolidated VIEs) HTML 49K (Details) 69: R57 Derivative Instruments (Narrative) (Details) HTML 39K 70: R58 Derivative Instruments (Notional and Fair Value of HTML 58K Derivative Instruments) (Details) 71: R59 Derivative Instruments (Carrying Amount and HTML 41K Cumulative Fair Value Hedging Adjustments) (Details) 72: R60 Derivative Instruments (Gains (Losses) Related to HTML 45K Derivatives and Hedged Items) (Details) 73: R61 Derivative Instruments (Change in Fair Value of HTML 50K Derivatives Not Designated as Hedging) (Details) 74: R62 Derivative Instruments (Derivative Call Options HTML 73K and Interest Rate Swaps by Counterparty) (Details) 75: R63 Deferred Policy Acquisition Costs and Deferred HTML 61K Sales Inducements - Schedule of Deferred Policy Acquisition Costs (Details) 76: R64 Deferred Policy Acquisition Costs and Deferred HTML 52K Sales Inducements - Schedule of Deferred Sales Inducements (Details) 77: R65 Policyholder Liabilities - Schedule of Present HTML 70K Value of Expected Future Policy Benefits (Details) 78: R66 Policyholder Liabilities - Summary of Liability HTML 62K For Future Policy Benefits Activity (Details) 79: R67 Policyholder Liabilities - Reconciliation of the HTML 35K Net Liability For Future Policy Benefits to the Liability For Future Policy Benefits (Details) 80: R68 Policyholder Liabilities - Schedule of Changes in HTML 109K the Liability for Market Risk Benefits (Details) 81: R69 Policyholder Liabilities - Schedule of HTML 41K Reconciliation of Reinsurance Market Risk Benefits by Assets and Liabilities (Details) 82: R70 Policyholder Liabilities - Schedule of Reinsured HTML 67K Market Risk Benefits (Details) 83: R71 Policyholder Liabilities - Reconciliation of HTML 48K Market Risk Benefits in an Asset Position and in a Liability Position (Details) 84: R72 Policyholder Liabilities - Significant Inputs and HTML 59K Assumptions (Details) 85: R73 Policyholder Liabilities - Changes in Policyholder HTML 72K Account Balances (Details) 86: R74 Policyholder Liabilities - Reconciliation of HTML 49K Policyholders? Account Balances to the Policyholders? Account Balances? Liability (Details) 87: R75 Policyholder Liabilities - Account Balances by HTML 181K Guaranteed Minimum Interest Rates (Details) 88: R76 Notes and Loan Payable (Schedule of Notes and Loan HTML 50K Payable) (Details) 89: R77 Notes and Loan Payable (2027 Notes Narrative) HTML 43K (Details) 90: R78 Notes and Loan Payable (Term Loan Narrative) HTML 44K (Details) 91: R79 Commitments and Contingencies (Narrative) HTML 42K (Details) 92: R80 Earnings (Loss) Per Common Share and Stockholders' HTML 74K Equity (Schedule of Earnings Per Common Share, Basic and Diluted) (Details) 93: R81 Earnings (Loss) Per Common Share and Stockholders' HTML 57K Equity (Stockholders' Equity) (Details) 94: R82 Earnings (Loss) Per Common Share and Stockholders' HTML 50K Equity (Share Repurchase Program and Treasury Stock) (Details) 95: R83 Subsequent Events (Narrative) (Details) HTML 36K 98: XML IDEA XML File -- Filing Summary XML 195K 96: XML XBRL Instance -- ael-20230331_htm XML 7.34M 97: EXCEL IDEA Workbook of Financial Reports XLSX 255K 9: EX-101.CAL XBRL Calculations -- ael-20230331_cal XML 287K 10: EX-101.DEF XBRL Definitions -- ael-20230331_def XML 1.30M 11: EX-101.LAB XBRL Labels -- ael-20230331_lab XML 2.45M 12: EX-101.PRE XBRL Presentations -- ael-20230331_pre XML 1.64M 8: EX-101.SCH XBRL Schema -- ael-20230331 XSD 240K 99: JSON XBRL Instance as JSON Data -- MetaLinks 617± 1.02M 100: ZIP XBRL Zipped Folder -- 0001039828-23-000077-xbrl Zip 786K
ael-20230331 |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Iowa | i 42-1447959 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
i Common stock, par value $1 | i AEL | i New York Stock Exchange | ||||||||||||
i Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | i AELPRA | i New York Stock Exchange | ||||||||||||
i Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | i AELPRB | i New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | ||||||||
Emerging growth company | i ☐ |
Page | |||||
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY AND SUBSIDIARIES | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
March 31, 2023 | |||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed
maturity securities, available for sale, at fair value (amortized cost of $ i 43,784,431 as of 2023 and $ i 44,866,019
as of 2022; allowance for credit losses of $ i 2,047 as of 2023 and $ i 3,347
as of 2022) | $ | i 39,555,624 | $ | i 39,804,617 | |||||||
Mortgage
loans on real estate (net of allowance for credit losses of $ i 45,626 as of 2023 and $ i 36,972
as of 2022) | i 7,199,225 | i 6,949,027 | |||||||||
Real estate investments related to consolidated variable interest entities | i 1,164,879 | i 1,056,063 | |||||||||
Limited
partnerships and limited liability companies (2023 and 2022 include $ i 1,065,628 and $ i 684,834 related to consolidated variable interest entities) | i 1,657,415 | i 1,266,779 | |||||||||
Derivative instruments | i 684,033 | i 431,727 | |||||||||
Other investments | i 1,157,162 | i 1,817,085 | |||||||||
Total investments | i 51,418,338 | i 51,325,298 | |||||||||
Cash
and cash equivalents (2023 and 2022 include $ i 39,016 and $ i 27,235 related to consolidated variable interest entities) | i 2,777,852 | i 1,919,669 | |||||||||
Coinsurance
deposits (net of allowance for credit losses of $ i 5,334 as of 2023 and $ i 8,737 as of 2022) | i 13,710,877 | i 13,254,956 | |||||||||
Market risk benefits | i 230,304 | i 229,871 | |||||||||
Accrued
investment income (2023 and 2022 include $ i 493 and $ i 3,444 related to consolidated variable interest entities) | i 497,425 | i 497,851 | |||||||||
Deferred policy acquisition costs | i 2,772,175 | i 2,773,643 | |||||||||
Deferred sales inducements | i 2,044,349 | i 2,045,683 | |||||||||
Deferred income taxes | i 290,648 | i 438,434 | |||||||||
Income taxes recoverable | i 50,821 | i 55,498 | |||||||||
Other
assets (2023 and 2022 include $ i 19,349 and $ i 10,690 related to consolidated variable interest entities) | i 702,937 | i 642,696 | |||||||||
Total assets | $ | i 74,495,726 | $ | i 73,183,599 | |||||||
AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY AND SUBSIDIARIES | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
March 31, 2023 | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Policy benefit reserves | $ | i 59,019,189 | $ | i 58,781,836 | |||||||
Market risk benefits | i 2,653,185 | i 2,455,492 | |||||||||
Other policy funds and contract claims | i 306,359 | i 512,790 | |||||||||
Notes and loan payable | i 790,413 | i 792,073 | |||||||||
Subordinated debentures | i 78,839 | i 78,753 | |||||||||
Funds withheld for reinsurance liabilities | i 6,984,409 | i 6,577,426 | |||||||||
Other
liabilities (2023 and 2022 include $ i 127,519 and $ i 78,644 related to consolidated variable interest entities) | i 2,034,523 | i 1,614,479 | |||||||||
Total liabilities | i 71,866,917 | i 70,812,849 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, Series A; par value $ i i 1 /
per share; $ i i 400,000 /
aggregate liquidation preference; i i 20,000 /
shares authorized; issued and outstanding: 2023 and 2022 - i i i i 16,000 / / /
shares | i 16 | i 16 | |||||||||
Preferred stock,
Series B; par value $ i i 1 / per share; $ i i 300,000 /
aggregate liquidation preference; i i 12,000 /
shares authorized; issued and outstanding: 2023 and 2022 - i i i i 12,000 / / /
shares | i 12 | i 12 | |||||||||
Common stock;
par value $ i i 1 / per share; i i 200,000,000 /
shares authorized; issued and outstanding: 2023 - i i 77,753,194 /
shares (excluding i 31,809,876 treasury shares); 2022 - i i 84,810,255 /
shares (excluding i 24,590,353 treasury shares) | i 77,753 | i 84,810 | |||||||||
Additional paid-in capital | i 1,045,453 | i 1,325,316 | |||||||||
Accumulated other comprehensive loss | ( i 3,036,429) | ( i 3,746,230) | |||||||||
Retained earnings | i 4,518,680 | i 4,685,593 | |||||||||
Total stockholders' equity attributable to American Equity Investment Life Holding Company | i 2,605,485 | i 2,349,517 | |||||||||
Noncontrolling interests | i 23,324 | i 21,233 | |||||||||
Total stockholders' equity | i 2,628,809 | i 2,370,750 | |||||||||
Total liabilities and stockholders' equity | $ | i 74,495,726 | $ | i 73,183,599 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 (a) | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Premiums and other considerations | $ | i 4,137 | $ | i 10,078 | |||||||||||||||||||
Annuity product charges | i 62,591 | i 52,355 | |||||||||||||||||||||
Net investment income | i 561,323 | i 567,423 | |||||||||||||||||||||
Change in fair value of derivatives | i 45,890 | ( i 477,519) | |||||||||||||||||||||
Net realized losses on investments | ( i 27,787) | ( i 13,127) | |||||||||||||||||||||
Other revenue | i 16,394 | i 8,817 | |||||||||||||||||||||
Total revenues | i 662,548 | i 148,027 | |||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Insurance policy benefits and change in future policy benefits (remeasurement gains (losses) of future policy benefit reserves of $ i 354 for 2023 and $ i 637
for 2022) | i 7,208 | i 13,615 | |||||||||||||||||||||
Interest sensitive and index product benefits | i 57,911 | i 287,917 | |||||||||||||||||||||
Market risk benefits (gains) losses | i 183,694 | i 191,893 | |||||||||||||||||||||
Amortization of deferred sales inducements | i 46,601 | i 45,085 | |||||||||||||||||||||
Change in fair value of embedded derivatives | i 404,440 | ( i 1,393,649) | |||||||||||||||||||||
Interest expense on notes and loan payable | i 11,018 | i 6,425 | |||||||||||||||||||||
Interest expense on subordinated debentures | i 1,336 | i 1,317 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs | i 68,235 | i 72,969 | |||||||||||||||||||||
Other operating costs and expenses | i 74,004 | i 57,795 | |||||||||||||||||||||
Total benefits and expenses | i 854,447 | ( i 716,633) | |||||||||||||||||||||
Income (loss) before income taxes | ( i 191,899) | i 864,660 | |||||||||||||||||||||
Income tax expense (benefit) | ( i 36,008) | i 185,195 | |||||||||||||||||||||
Net income (loss) | ( i 155,891) | i 679,465 | |||||||||||||||||||||
Less: Net income available to noncontrolling interests | i 103 | i — | |||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company stockholders | ( i 155,994) | i 679,465 | |||||||||||||||||||||
Less: Preferred stock dividends | i 10,919 | i 10,919 | |||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | ( i 166,913) | $ | i 668,546 | |||||||||||||||||||
Earnings (loss) per common share | $ | ( i 2.00) | $ | i 6.90 | |||||||||||||||||||
Earnings (loss) per common share - assuming dilution | $ | ( i 2.00) | $ | i 6.83 | |||||||||||||||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||||||||||
Earnings (loss) per common share | i 83,417 | i 96,866 | |||||||||||||||||||||
Earnings (loss) per common share - assuming dilution | i 83,417 | i 97,953 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 (a) | ||||||||||||||||||||||
Net income (loss) | $ | ( i 155,891) | $ | i 679,465 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Change in net unrealized investment gains/losses | i 851,731 | ( i 4,015,830) | |||||||||||||||||||||
Change in current discount rate for liability for future policy benefits | ( i 4,791) | i 32,998 | |||||||||||||||||||||
Change in instrument-specific credit risk for market risk benefits | i 70,005 | i 480,410 | |||||||||||||||||||||
Reclassification of unrealized investment gains/losses to net income | ( i 18,463) | i 1,459 | |||||||||||||||||||||
Other comprehensive income (loss) before income tax | i 898,482 | ( i 3,500,963) | |||||||||||||||||||||
Income tax effect related to other comprehensive income (loss) | ( i 188,681) | i 734,906 | |||||||||||||||||||||
Other comprehensive income (loss) | i 709,801 | ( i 2,766,057) | |||||||||||||||||||||
Comprehensive income (loss) | $ | i 553,910 | $ | ( i 2,086,592) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | i 28 | $ | i 84,810 | $ | i 1,325,316 | $ | ( i 3,746,230) | $ | i 4,685,593 | $ | i 21,233 | $ | i 2,370,750 | |||||||||||||||||||||||||||
Net income (loss) for period | — | — | — | — | ( i 155,994) | i 103 | ( i 155,891) | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | i 709,801 | — | — | i 709,801 | ||||||||||||||||||||||||||||||||||
Share-based
compensation | — | — | i 9,904 | — | — | — | i 9,904 | ||||||||||||||||||||||||||||||||||
Issuance of common stock | — | i 211 | ( i 3,842) | — | — | — | ( i 3,631) | ||||||||||||||||||||||||||||||||||
Treasury stock acquired, common | — | ( i 7,268) | ( i 285,925) | — | — | — | ( i 293,193) | ||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( i 10,919) | — | ( i 10,919) | ||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | i 1,988 | i 1,988 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | i 28 | $ | i 77,753 | $ | i 1,045,453 | $ | ( i 3,036,429) | $ | i 4,518,680 | $ | i 23,324 | $ | i 2,628,809 | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2022 (a) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | i 28 | $ | i 92,514 | $ | i 1,614,374 | $ | i 3,192,547 | $ | i 2,839,254 | $ | i — | $ | i 7,738,717 | |||||||||||||||||||||||||||
Net income for period | — | — | — | — | i 679,465 | — | i 679,465 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( i 2,766,057) | — | — | ( i 2,766,057) | ||||||||||||||||||||||||||||||||||
Share-based
compensation | — | — | i 5,596 | — | — | — | i 5,596 | ||||||||||||||||||||||||||||||||||
Issuance of common stock | — | i 6,958 | i 244,580 | — | — | — | i 251,538 | ||||||||||||||||||||||||||||||||||
Treasury stock acquired, common | — | ( i 4,452) | ( i 174,944) | — | — | — | ( i 179,396) | ||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | ( i 10,919) | — | ( i 10,919) | ||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | i 1,084 | i 1,084 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | i 28 | $ | i 95,020 | $ | i 1,689,606 | $ | i 426,490 | $ | i 3,507,800 | $ | i 1,084 | $ | i 5,720,028 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 (a) | ||||||||||
Operating activities | |||||||||||
Net income (loss) | $ | ( i 155,891) | $ | i 679,465 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Interest sensitive and index product benefits | i 57,911 | i 287,917 | |||||||||
Amortization of deferred sales inducements | i 46,601 | i 45,085 | |||||||||
Annuity product charges | ( i 62,591) | ( i 52,355) | |||||||||
Change in fair value of embedded derivatives | i 404,440 | ( i 1,393,649) | |||||||||
Change in traditional life and accident and health insurance reserves | i 1,720 | ( i 30,313) | |||||||||
Policy acquisition costs deferred | ( i 66,767) | ( i 56,897) | |||||||||
Amortization of deferred policy acquisition costs | i 68,235 | i 72,969 | |||||||||
Provision for depreciation and other amortization | i 3,025 | i 2,250 | |||||||||
Amortization of discounts and premiums on investments | i 13,450 | ( i 258) | |||||||||
Realized gains/losses on investments | i 27,787 | i 13,127 | |||||||||
Change in fair value of derivatives | ( i 45,890) | i 477,519 | |||||||||
Deferred income taxes | ( i 40,895) | i 184,840 | |||||||||
Share-based compensation | i 9,904 | i 5,596 | |||||||||
Change in accrued investment income | i 426 | ( i 38,805) | |||||||||
Change in income taxes recoverable/payable | i 4,677 | i 519 | |||||||||
Change in other assets | ( i 34,940) | ( i 11,927) | |||||||||
Change in other policy funds and contract claims | ( i 207,895) | i 197,191 | |||||||||
Change in market risk benefits, net | i 192,253 | i 197,617 | |||||||||
Change in collateral held for derivatives | i 184,088 | ( i 584,969) | |||||||||
Change in funds withheld from reinsurers | i 342,602 | i 80,767 | |||||||||
Change in other liabilities | i 145,648 | i 86,008 | |||||||||
Other | ( i 22,855) | ( i 61,765) | |||||||||
Net cash provided by operating activities | i 865,043 | i 99,932 | |||||||||
Investing activities | |||||||||||
Sales, maturities, or repayments of investments: | |||||||||||
Fixed maturity securities, available for sale | i 3,150,639 | i 1,779,328 | |||||||||
Mortgage loans on real estate | i 279,348 | i 536,216 | |||||||||
Derivative instruments | ( i 132) | i 280,510 | |||||||||
Other investments | i 705,059 | i 26,376 | |||||||||
Acquisitions of investments: | |||||||||||
Fixed maturity securities, available for sale | ( i 2,039,525) | ( i 3,924,643) | |||||||||
Mortgage loans on real estate | ( i 534,632) | ( i 585,867) | |||||||||
Real estate investments acquired | ( i 120,907) | ( i 168,088) | |||||||||
Derivative instruments | ( i 205,561) | ( i 185,486) | |||||||||
Other investments | ( i 425,596) | ( i 202,160) | |||||||||
Purchases of property, furniture and equipment | ( i 4,192) | ( i 2,424) | |||||||||
Net cash provided by (used in) investing activities | i 804,501 | ( i 2,446,238) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 (a) | ||||||||||
Financing activities | |||||||||||
Receipts credited to annuity policyholder account balances | $ | i 1,370,663 | $ | i 888,488 | |||||||
Coinsurance deposits | ( i 215,927) | i 10,757 | |||||||||
Return of annuity policyholder account balances | ( i 1,601,547) | ( i 1,198,638) | |||||||||
Repayment of loan payable | ( i 1,875) | i — | |||||||||
Acquisition of treasury stock | ( i 293,193) | ( i 179,396) | |||||||||
Proceeds from issuance of common stock, net | ( i 3,631) | i 251,538 | |||||||||
Change in checks in excess of cash balance | ( i 54,932) | i 9,393 | |||||||||
Dividends paid on preferred stock | ( i 10,919) | ( i 10,919) | |||||||||
Net cash provided used in financing activities | ( i 811,361) | ( i 228,777) | |||||||||
Increase (decrease) in cash and cash equivalents | i 858,183 | ( i 2,575,083) | |||||||||
Cash and cash equivalents at beginning of period | i 1,919,669 | i 4,508,982 | |||||||||
Cash and cash equivalents at end of period | $ | i 2,777,852 | $ | i 1,933,899 | |||||||
Supplemental disclosures of cash flow information | |||||||||||
Cash paid during period for: | |||||||||||
Interest expense | $ | i 5,803 | $ | i 1,250 | |||||||
Income taxes | i 262,020 | i — | |||||||||
Income tax refunds received | i 52,500 | i — | |||||||||
Non-cash operating activity: | |||||||||||
Deferral of sales inducements | i 45,267 | i 23,446 | |||||||||
Liability
for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
(Dollars in thousands) | |||||
Pre-adoption 12/31/2020 balance | $ | i 337,467 | |||
Adjustment to opening retained earnings for expected future policy benefits | i 2,566 | ||||
Adjustment for the effect of remeasurement of liability at current single A rate | i 68,717 | ||||
Post adoption 1/1/2021 balance | $ | i 408,750 |
Market Risk Benefit Liability | |||||
(Dollars in thousands) | |||||
Pre-adoption 12/31/2020 carrying amount for features now classified as MRBs | $ | i 2,547,231 | |||
Adjustment for the removal of shadow adjustments | ( i 584,636) | ||||
Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | i 229,108 | ||||
Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | i 33,781 | ||||
Post adoption 1/1/2021 MRB balance | $ | i 2,225,484 |
Ceded
Market Risk Benefit (a) | |||||
(Dollars in thousands) | |||||
Pre-adoption 12/31/2020 carrying amount for features now classified as MRBs | $ | i 62,108 | |||
Adjustment for the difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | i 27,230 | ||||
Post adoption 1/1/2021 ceded MRB balance | $ | i 89,338 |
Deferred Policy Acquisition Costs | |||||
Fixed
Index Annuities and Fixed Rate Annuities | |||||
(Dollars in thousands) | |||||
Pre-adoption 12/31/2020 balance | $ | i 2,225,199 | |||
Adjustments for the removal of shadow adjustments | i 1,183,306 | ||||
Post adoption 1/1/2021 balance | $ | i 3,408,505 |
Deferred
Sales Inducements | |||||
Fixed Index Annuities and Fixed Rate Annuities | |||||
(Dollars in thousands) | |||||
Pre-adoption 12/31/2020 balance | $ | i 1,448,375 | |||
Adjustments for the removal of shadow adjustments | i 768,310 | ||||
Post adoption 1/1/2021 balance | $ | i 2,216,685 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Fixed maturity securities, available for sale | $ | i 39,555,624 | $ | i 39,555,624 | $ | i 39,804,617 | $ | i 39,804,617 | |||||||||||||||
Mortgage loans on real estate | i 7,199,225 | i 6,784,672 | i 6,949,027 | i 6,502,463 | |||||||||||||||||||
Real estate investments | i 1,053,631 | i 1,053,631 | i 1,056,063 | i 1,056,063 | |||||||||||||||||||
Limited partnerships and limited liability companies | i 1,065,627 | i 1,065,627 | i 684,835 | i 684,835 | |||||||||||||||||||
Derivative instruments | i 684,033 | i 684,033 | i 431,727 | i 431,727 | |||||||||||||||||||
Other investments | i 1,157,162 | i 1,157,162 | i 1,817,085 | i 1,817,085 | |||||||||||||||||||
Cash and cash equivalents | i 2,777,852 | i 2,777,852 | i 1,919,669 | i 1,919,669 | |||||||||||||||||||
Coinsurance deposits | i 13,710,877 | i 12,964,585 | i 13,254,956 | i 12,640,797 | |||||||||||||||||||
Market risk benefits | i 230,304 | i 230,304 | i 229,871 | i 229,871 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Policy benefit reserves | i 58,655,544 | i 55,469,740 | i 58,419,911 | i 55,572,896 | |||||||||||||||||||
Market risk benefits | i 2,653,185 | i 2,653,185 | i 2,455,492 | i 2,455,492 | |||||||||||||||||||
Single premium immediate annuity (SPIA) benefit reserves | i 205,643 | i 214,386 | i 212,119 | i 221,130 | |||||||||||||||||||
Other policy funds - FHLB | i 100,000 | i 100,000 | i 300,000 | i 300,000 | |||||||||||||||||||
Notes and loan payable | i 790,413 | i 794,615 | i 792,073 | i 774,220 | |||||||||||||||||||
Subordinated debentures | i 78,839 | i 88,336 | i 78,753 | i 87,293 | |||||||||||||||||||
Total Fair Value | NAV | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 177,878 | $ | i — | $ | i 29,978 | $ | i 147,900 | $ | i — | |||||||||||||||||||
States, municipalities and territories | i 3,665,716 | i — | i — | i 3,568,057 | i 97,659 | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 677,833 | i — | i — | i 677,833 | i — | ||||||||||||||||||||||||
Corporate securities | i 23,401,001 | i — | i — | i 23,025,704 | i 375,297 | ||||||||||||||||||||||||
Residential mortgage backed securities | i 1,355,858 | i — | i — | i 1,355,858 | i — | ||||||||||||||||||||||||
Commercial mortgage backed securities | i 3,677,672 | i — | i — | i 3,677,672 | i — | ||||||||||||||||||||||||
Other asset backed securities | i 6,599,666 | i — | i — | i 5,791,438 | i 808,228 | ||||||||||||||||||||||||
Other investments | i 674,600 | i — | i 150,442 | i 524,158 | i — | ||||||||||||||||||||||||
Real estate investments | i 1,053,631 | i — | i — | i — | i 1,053,631 | ||||||||||||||||||||||||
Limited partnerships and limited liability companies | i 1,065,627 | i 901,301 | i — | i — | i 164,326 | ||||||||||||||||||||||||
Derivative instruments | i 684,033 | i — | i — | i 684,033 | i — | ||||||||||||||||||||||||
Cash and cash equivalents | i 2,777,852 | i — | i 2,777,852 | i — | i — | ||||||||||||||||||||||||
Market risk benefits (a) | i 230,304 | i — | i — | i — | i 230,304 | ||||||||||||||||||||||||
$ | i 46,041,671 | $ | i 901,301 | $ | i 2,958,272 | $ | i 39,452,653 | $ | i 2,729,445 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Funds withheld liability - embedded derivative | $ | ( i 377,484) | $ | i — | $ | i — | $ | i — | $ | ( i 377,484) | |||||||||||||||||||
Fixed index annuities - embedded derivatives | i 4,905,133 | i — | i — | i — | i 4,905,133 | ||||||||||||||||||||||||
Market risk benefits (a) | i 2,653,185 | i — | i — | i — | i 2,653,185 | ||||||||||||||||||||||||
$ | i 7,180,834 | $ | i — | $ | i — | $ | i — | $ | i 7,180,834 | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 169,071 | $ | i — | $ | i 26,184 | $ | i 142,887 | $ | i — | |||||||||||||||||||
States, municipalities and territories | i 3,822,982 | i — | i — | i 3,822,982 | i — | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 676,852 | i — | i — | i 676,852 | i — | ||||||||||||||||||||||||
Corporate securities | i 24,161,921 | i — | i — | i 23,759,573 | i 402,348 | ||||||||||||||||||||||||
Residential mortgage backed securities | i 1,377,611 | i — | i — | i 1,377,611 | i — | ||||||||||||||||||||||||
Commercial mortgage backed securities | i 3,687,478 | i — | i — | i 3,687,478 | i — | ||||||||||||||||||||||||
Other asset backed securities | i 5,908,702 | i — | i — | i 5,465,784 | i 442,918 | ||||||||||||||||||||||||
Other investments | i 1,013,297 | i — | i 398,280 | i 615,017 | i — | ||||||||||||||||||||||||
Real estate investments | i 940,559 | i — | i — | i — | i 940,559 | ||||||||||||||||||||||||
Limited partnerships and limited liability companies | i 684,835 | i 620,626 | i — | i — | i 64,209 | ||||||||||||||||||||||||
Derivative instruments | i 431,727 | i — | i — | i 431,727 | i — | ||||||||||||||||||||||||
Cash and cash equivalents | i 1,919,669 | i — | i 1,919,669 | i — | i — | ||||||||||||||||||||||||
Market risk benefits (a) | i 229,871 | i — | i — | i — | i 229,871 | ||||||||||||||||||||||||
$ | i 45,024,575 | $ | i 620,626 | $ | i 2,344,133 | $ | i 39,979,911 | $ | i 2,079,905 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Funds withheld liability - embedded derivative | $ | ( i 441,864) | $ | i — | $ | i — | $ | i — | $ | ( i 441,864) | |||||||||||||||||||
Fixed index annuities - embedded derivatives | i 4,820,845 | i — | i — | i — | i 4,820,845 | ||||||||||||||||||||||||
Market risk benefits (a) | i 2,455,492 | i — | i — | i — | i 2,455,492 | ||||||||||||||||||||||||
$ | i 6,834,473 | $ | i — | $ | i — | $ | i — | $ | i 6,834,473 |
Average Lapse Rates | Average Partial Withdrawal Rates | |||||||||||||||||||||||||
Contract Duration (Years) | March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
i i 1 /
- i i 5 / | i 2.08% | i 2.17% | i 1.87% | i 1.86% | ||||||||||||||||||||||
i i 6 /
- i i 10 / | i 3.28% | i 3.28% | i 1.96% | i 1.97% | ||||||||||||||||||||||
i i 11 /
- i i 15 / | i 3.65% | i 3.63% | i 1.83% | i 1.86% | ||||||||||||||||||||||
i i 16 /
- i i 20 / | i 9.14% | i 8.55% | i 3.03% | i 2.96% | ||||||||||||||||||||||
i i 20 / + | i 4.92% | i 4.90% | i 1.81% | i 1.81% |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed maturity securities, available for sale - States, municipalities and territories | |||||||||||||||||||||||
Beginning balance | $ | i — | $ | i — | |||||||||||||||||||
Purchases and sales, net | i — | i — | |||||||||||||||||||||
Transfers in | i 97,659 | i — | |||||||||||||||||||||
Transfers out | i — | i — | |||||||||||||||||||||
Total realized/unrealized gains (losses) | |||||||||||||||||||||||
Included in net income | i — | i — | |||||||||||||||||||||
Included in other comprehensive income (loss) | i — | i — | |||||||||||||||||||||
Ending balance | $ | i 97,659 | $ | i — | |||||||||||||||||||
Fixed maturity securities, available for sale - Corporate securities | |||||||||||||||||||||||
Beginning balance | $ | i 402,348 | $ | i — | |||||||||||||||||||
Purchases and sales, net | ( i 26,278) | i — | |||||||||||||||||||||
Transfers in | i 347 | i — | |||||||||||||||||||||
Transfers out | i — | i — | |||||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||||
Included in net income | i — | i — | |||||||||||||||||||||
Included in other comprehensive income (loss) | ( i 1,120) | i — | |||||||||||||||||||||
Ending balance | $ | i 375,297 | $ | i — | |||||||||||||||||||
Fixed maturity securities, available for sale - Other asset backed securities | |||||||||||||||||||||||
Beginning balance | $ | i 442,918 | $ | i — | |||||||||||||||||||
Purchases and sales, net | i 227,032 | i — | |||||||||||||||||||||
Transfers in | i 130,502 | i — | |||||||||||||||||||||
Transfers out | i — | i — | |||||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||||
Included in net income | i — | i — | |||||||||||||||||||||
Included in other comprehensive income (loss) | i 7,776 | i — | |||||||||||||||||||||
Ending balance | $ | i 808,228 | $ | i — | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Other investments | |||||||||||||||||||||||
Beginning balance | $ | i — | $ | i 6,349 | |||||||||||||||||||
Transfers in | i — | i — | |||||||||||||||||||||
Transfers out | i — | i — | |||||||||||||||||||||
Total realized/unrealized gains (losses): | |||||||||||||||||||||||
Included in net income | i — | ( i 2,482) | |||||||||||||||||||||
Included in other comprehensive income (loss) | i — | i — | |||||||||||||||||||||
Ending balance | $ | i — | $ | i 3,867 | |||||||||||||||||||
Real estate investments | |||||||||||||||||||||||
Beginning balance | $ | i 940,559 | $ | i 337,939 | |||||||||||||||||||
Purchases and sales, net | i 120,908 | i 109,835 | |||||||||||||||||||||
Change in fair value | ( i 7,836) | i 4,161 | |||||||||||||||||||||
Ending balance | $ | i 1,053,631 | $ | i 451,935 | |||||||||||||||||||
Limited partnerships and limited liability companies | |||||||||||||||||||||||
Beginning balance | $ | i 64,209 | $ | i — | |||||||||||||||||||
Purchases and sales, net | i 94,137 | i 58,253 | |||||||||||||||||||||
Change in fair value | i 5,981 | i — | |||||||||||||||||||||
Ending balance | $ | i 164,327 | $ | i 58,253 | |||||||||||||||||||
Funds withheld liability - embedded derivative | |||||||||||||||||||||||
Beginning balance | $ | ( i 441,864) | $ | i — | |||||||||||||||||||
Transfers in | i — | i — | |||||||||||||||||||||
Change in fair value | i 64,380 | i — | |||||||||||||||||||||
Ending balance | $ | ( i 377,484) | $ | i — | |||||||||||||||||||
Fixed index annuities - embedded derivatives | |||||||||||||||||||||||
Beginning balance | $ | i 4,820,845 | $ | i 7,964,961 | |||||||||||||||||||
Premiums less benefits | ( i 121,181) | i 114,077 | |||||||||||||||||||||
Change in fair value, net | i 205,469 | ( i 1,308,123) | |||||||||||||||||||||
Ending balance | $ | i 4,905,133 | $ | i 6,770,915 |
Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized Losses (2) | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 179,026 | $ | i 1,060 | $ | ( i 2,208) | $ | i — | $ | i 177,878 | |||||||||||||||||||
States, municipalities and territories | i 4,066,597 | i 52,221 | ( i 453,102) | i — | i 3,665,716 | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 738,759 | i 12,943 | ( i 73,869) | i — | i 677,833 | ||||||||||||||||||||||||
Corporate securities | i 26,338,901 | i 195,461 | ( i 3,131,447) | ( i 1,914) | i 23,401,001 | ||||||||||||||||||||||||
Residential mortgage backed securities | i 1,455,263 | i 9,954 | ( i 109,226) | ( i 133) | i 1,355,858 | ||||||||||||||||||||||||
Commercial mortgage backed securities | i 4,088,679 | i 1,125 | ( i 412,132) | i — | i 3,677,672 | ||||||||||||||||||||||||
Other asset backed securities | i 6,917,206 | i 34,890 | ( i 352,430) | i — | i 6,599,666 | ||||||||||||||||||||||||
$ | i 43,784,431 | $ | i 307,654 | $ | ( i 4,534,414) | $ | ( i 2,047) | $ | i 39,555,624 | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 173,638 | $ | i 70 | $ | ( i 4,637) | $ | i — | $ | i 169,071 | |||||||||||||||||||
States, municipalities and territories | i 4,356,251 | i 41,565 | ( i 574,834) | i — | i 3,822,982 | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 748,770 | i 11,661 | ( i 83,579) | i — | i 676,852 | ||||||||||||||||||||||||
Corporate securities | i 27,706,440 | i 146,065 | ( i 3,687,370) | ( i 3,214) | i 24,161,921 | ||||||||||||||||||||||||
Residential mortgage backed securities | i 1,492,242 | i 11,870 | ( i 126,368) | ( i 133) | i 1,377,611 | ||||||||||||||||||||||||
Commercial mortgage backed securities | i 4,098,755 | i 493 | ( i 411,770) | i — | i 3,687,478 | ||||||||||||||||||||||||
Other asset backed securities | i 6,289,923 | i 14,068 | ( i 395,289) | i — | i 5,908,702 | ||||||||||||||||||||||||
$ | i 44,866,019 | $ | i 225,792 | $ | ( i 5,283,847) | $ | ( i 3,347) | $ | i 39,804,617 |
Available for sale | |||||||||||
Amortized Cost | Fair Value | ||||||||||
(Dollars in thousands) | |||||||||||
Due in one year or less | $ | i 702,112 | $ | i 696,244 | |||||||
Due after one year through five years | i 6,122,055 | i 5,914,199 | |||||||||
Due after five years through ten years | i 6,116,836 | i 5,639,129 | |||||||||
Due after ten years through twenty years | i 8,790,928 | i 8,046,303 | |||||||||
Due after twenty years | i 9,591,352 | i 7,626,553 | |||||||||
i 31,323,283 | i 27,922,428 | ||||||||||
Residential mortgage backed securities | i 1,455,263 | i 1,355,858 | |||||||||
Commercial mortgage backed securities | i 4,088,679 | i 3,677,672 | |||||||||
Other asset backed securities | i 6,917,206 | i 6,599,666 | |||||||||
$ | i 43,784,431 | $ | i 39,555,624 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Net unrealized losses on investments | $ | ( i 4,232,154) | $ | ( i 5,065,422) | |||||||
Deferred income tax valuation allowance reversal | i 22,534 | i 22,534 | |||||||||
Deferred income tax expense | i 888,455 | i 1,063,441 | |||||||||
Net unrealized losses reported as accumulated other comprehensive loss | $ | ( i 3,321,165) | $ | ( i 3,979,447) |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
1 | $ | i 26,409,209 | $ | i 24,052,838 | $ | i 27,061,903 | $ | i 24,211,086 | ||||||||||||||||||
2 | i 16,575,461 | i 14,833,109 | i 17,023,157 | i 14,944,131 | ||||||||||||||||||||||
3 | i 629,526 | i 537,044 | i 595,193 | i 510,392 | ||||||||||||||||||||||
4 | i 151,368 | i 116,504 | i 109,409 | i 91,495 | ||||||||||||||||||||||
5 | i 7,171 | i 7,595 | i 61,721 | i 36,738 | ||||||||||||||||||||||
6 | i 11,696 | i 8,534 | i 14,636 | i 10,775 | ||||||||||||||||||||||
$ | i 43,784,431 | $ | i 39,555,624 | $ | i 44,866,019 | $ | i 39,804,617 |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 40,919 | $ | ( i 905) | $ | i 22,400 | $ | ( i 1,303) | $ | i 63,319 | $ | ( i 2,208) | |||||||||||||||||||||||
States, municipalities and territories | i 1,487,593 | ( i 160,979) | i 1,128,425 | ( i 292,123) | i 2,616,018 | ( i 453,102) | |||||||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 372,316 | ( i 26,076) | i 159,696 | ( i 47,793) | i 532,012 | ( i 73,869) | |||||||||||||||||||||||||||||
Corporate securities | i 10,860,843 | ( i 1,149,693) | i 7,844,602 | ( i 1,981,754) | i 18,705,445 | ( i 3,131,447) | |||||||||||||||||||||||||||||
Residential mortgage backed securities | i 730,911 | ( i 45,375) | i 368,307 | ( i 63,851) | i 1,099,218 | ( i 109,226) | |||||||||||||||||||||||||||||
Commercial mortgage backed securities | i 1,116,038 | ( i 82,985) | i 2,485,544 | ( i 329,147) | i 3,601,582 | ( i 412,132) | |||||||||||||||||||||||||||||
Other asset backed securities | i 1,701,535 | ( i 68,465) | i 3,050,769 | ( i 283,965) | i 4,752,304 | ( i 352,430) | |||||||||||||||||||||||||||||
$ | i 16,310,155 | $ | ( i 1,534,478) | $ | i 15,059,743 | $ | ( i 2,999,936) | $ | i 31,369,898 | $ | ( i 4,534,414) | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Government and agencies | $ | i 160,201 | $ | ( i 4,512) | $ | i 908 | $ | ( i 125) | $ | i 161,109 | $ | ( i 4,637) | |||||||||||||||||||||||
States, municipalities and territories | i 2,595,122 | ( i 537,313) | i 95,184 | ( i 37,521) | i 2,690,306 | ( i 574,834) | |||||||||||||||||||||||||||||
Foreign corporate securities and foreign governments | i 522,826 | ( i 76,957) | i 21,816 | ( i 6,622) | i 544,642 | ( i 83,579) | |||||||||||||||||||||||||||||
Corporate securities | i 18,784,181 | ( i 3,218,323) | i 1,411,177 | ( i 469,047) | i 20,195,358 | ( i 3,687,370) | |||||||||||||||||||||||||||||
Residential mortgage backed securities | i 992,783 | ( i 101,100) | i 116,388 | ( i 25,268) | i 1,109,171 | ( i 126,368) | |||||||||||||||||||||||||||||
Commercial mortgage backed securities | i 2,941,293 | ( i 302,513) | i 651,923 | ( i 109,257) | i 3,593,216 | ( i 411,770) | |||||||||||||||||||||||||||||
Other asset backed securities | i 2,561,390 | ( i 162,821) | i 1,924,026 | ( i 232,468) | i 4,485,416 | ( i 395,289) | |||||||||||||||||||||||||||||
$ | i 28,557,796 | $ | ( i 4,403,539) | $ | i 4,221,422 | $ | ( i 880,308) | $ | i 32,779,218 | $ | ( i 5,283,847) |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed maturity securities available for sale carried at fair value | $ | i 833,268 | $ | ( i 4,014,371) | |||||||||||||||||||
Adjustment for effect on other balance sheet accounts: | |||||||||||||||||||||||
Deferred income tax asset/liability | ( i 174,986) | i 842,782 | |||||||||||||||||||||
( i 174,986) | i 842,782 | ||||||||||||||||||||||
Change in net unrealized gains/losses on investments carried at fair value | $ | i 658,282 | $ | ( i 3,171,589) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Available for sale fixed maturity securities: | |||||||||||||||||||||||
Gross realized gains | $ | i 25,988 | $ | i 3,465 | |||||||||||||||||||
Gross realized losses | ( i 44,451) | ( i 2,006) | |||||||||||||||||||||
Net credit loss (provision) release | ( i 829) | ( i 7,356) | |||||||||||||||||||||
( i 19,292) | ( i 5,897) | ||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Gross realized gains | i 1,777 | i — | |||||||||||||||||||||
Gross realized losses | ( i 432) | i — | |||||||||||||||||||||
i 1,345 | i — | ||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||
Increase in allowance for credit losses | ( i 8,654) | ( i 5,245) | |||||||||||||||||||||
Recovery of specific allowance | i — | i — | |||||||||||||||||||||
Loss on sale of mortgage loans | ( i 1,186) | ( i 1,985) | |||||||||||||||||||||
( i 9,840) | ( i 7,230) | ||||||||||||||||||||||
$ | ( i 27,787) | $ | ( i 13,127) |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
States, Municipalities and Territories | Corporate Securities | Residential Mortgage Backed Securities | Total | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | i — | $ | i 3,214 | $ | i 133 | $ | i 3,347 | |||||||||||||||||||||||||||
Additions for credit losses not previously recorded | i — | i — | i — | i — | |||||||||||||||||||||||||||||||
Change in allowance on securities with previous allowance | i — | ( i 1,300) | i — | ( i 1,300) | |||||||||||||||||||||||||||||||
Ending balance | $ | i — | $ | i 1,914 | $ | i 133 | $ | i 2,047 | |||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||
States, Municipalities and Territories | Corporate Securities | Residential Mortgage Backed Securities | Total | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | i 2,776 | $ | i — | $ | i 70 | $ | i 2,846 | |||||||||||||||||||||||||||
Additions for credit losses not previously recorded | i — | i 3,825 | i 336 | i 4,161 | |||||||||||||||||||||||||||||||
Change in allowance on securities with previous allowance | ( i 767) | i — | i 337 | ( i 430) | |||||||||||||||||||||||||||||||
Ending balance | $ | i 2,009 | $ | i 3,825 | $ | i 743 | $ | i 6,577 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Commercial mortgage loans: | |||||||||||
Principal outstanding | $ | i 3,570,314 | $ | i 3,560,903 | |||||||
Deferred fees and costs, net | ( i 6,407) | ( i 6,345) | |||||||||
Amortized cost | i 3,563,907 | i 3,554,558 | |||||||||
Valuation allowance | ( i 25,082) | ( i 22,428) | |||||||||
Commercial mortgage loans, carrying value | i 3,538,825 | i 3,532,130 | |||||||||
Agricultural mortgage loans: | |||||||||||
Principal outstanding | i 609,026 | i 567,630 | |||||||||
Deferred fees and costs, net | ( i 1,759) | ( i 1,667) | |||||||||
Amortized cost | i 607,267 | i 565,963 | |||||||||
Valuation allowance | ( i 1,356) | ( i 1,021) | |||||||||
Agricultural mortgage loans, carrying value | i 605,911 | i 564,942 | |||||||||
Residential mortgage loans: | |||||||||||
Principal outstanding | i 3,011,666 | i 2,807,652 | |||||||||
Deferred fees and costs, net | i 1,326 | i 1,909 | |||||||||
Unamortized discounts and premiums, net | i 60,685 | i 55,917 | |||||||||
Amortized cost | i 3,073,677 | i 2,865,478 | |||||||||
Valuation allowance | ( i 19,188) | ( i 13,523) | |||||||||
Residential mortgage loans, carrying value | i 3,054,489 | i 2,851,955 | |||||||||
Mortgage loans, carrying value | $ | i 7,199,225 | $ | i 6,949,027 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Principal | Percent | Principal | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Geographic distribution | |||||||||||||||||||||||
East | $ | i 491,711 | i 13.8 | % | $ | i 502,659 | i 14.1 | % | |||||||||||||||
Middle Atlantic | i 279,732 | i 7.8 | % | i 280,993 | i 7.9 | % | |||||||||||||||||
Mountain | i 413,867 | i 11.6 | % | i 416,307 | i 11.7 | % | |||||||||||||||||
New England | i 75,432 | i 2.1 | % | i 73,631 | i 2.1 | % | |||||||||||||||||
Pacific | i 854,742 | i 23.9 | % | i 858,812 | i 24.1 | % | |||||||||||||||||
South Atlantic | i 949,734 | i 26.6 | % | i 934,007 | i 26.2 | % | |||||||||||||||||
West North Central | i 199,149 | i 5.6 | % | i 205,568 | i 5.8 | % | |||||||||||||||||
West South Central | i 305,947 | i 8.6 | % | i 288,926 | i 8.1 | % | |||||||||||||||||
$ | i 3,570,314 | i 100.0 | % | $ | i 3,560,903 | i 100.0 | % | ||||||||||||||||
Property type distribution | |||||||||||||||||||||||
Office | $ | i 369,223 | i 10.3 | % | $ | i 388,978 | i 10.9 | % | |||||||||||||||
Retail | i 858,628 | i 24.0 | % | i 896,351 | i 25.2 | % | |||||||||||||||||
Industrial/Warehouse | i 909,077 | i 25.5 | % | i 866,623 | i 24.3 | % | |||||||||||||||||
Apartment | i 1,029,694 | i 28.8 | % | i 912,984 | i 25.6 | % | |||||||||||||||||
Hotel | i 324,271 | i 9.1 | % | i 285,271 | i 8.0 | % | |||||||||||||||||
Mixed Use/Other | i 79,421 | i 2.3 | % | i 210,696 | i 6.0 | % | |||||||||||||||||
$ | i 3,570,314 | i 100.0 | % | $ | i 3,560,903 | i 100.0 | % |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Beginning allowance balance | $ | ( i 22,428) | $ | ( i 1,021) | $ | ( i 13,523) | $ | ( i 36,972) | |||||||||||||||
Charge-offs | i — | i — | i — | i — | |||||||||||||||||||
Recoveries | i — | i — | i — | i — | |||||||||||||||||||
Change in provision for credit losses | ( i 2,654) | ( i 335) | ( i 5,665) | ( i 8,654) | |||||||||||||||||||
Ending allowance balance | $ | ( i 25,082) | $ | ( i 1,356) | $ | ( i 19,188) | $ | ( i 45,626) | |||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Commercial | Agricultural | Residential | Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Beginning allowance balance | $ | ( i 17,926) | $ | ( i 519) | $ | ( i 5,579) | $ | ( i 24,024) | |||||||||||||||
Charge-offs | i — | i — | i — | i — | |||||||||||||||||||
Recoveries | i — | i — | i — | i — | |||||||||||||||||||
Change in provision for credit losses | ( i 6,661) | ( i 39) | i 1,455 | ( i 5,245) | |||||||||||||||||||
Ending allowance balance | $ | ( i 24,587) | $ | ( i 558) | $ | ( i 4,124) | $ | ( i 29,269) |
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
As of March 31, 2023: | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Greater than or equal to 1.5 | $ | i — | i — | % | $ | i 279,353 | i 62 | % | $ | i 239,049 | i 60 | % | $ | i 394,892 | i 56 | % | $ | i 434,390 | i 58 | % | $ | i 1,126,465 | i 46 | % | $ | i 2,474,149 | i 52 | % | ||||||||||||||||
Greater
than or equal to 1.2 and less than 1.5 | i — | i — | % | i 6,487 | i 70 | % | i 122,944 | i 55 | % | i 46,669 | i 55 | % | i 109,230 | i 66 | % | i 204,897 | i 62 | % | i 490,227 | i 61 | % | |||||||||||||||||||||||
Greater
than or equal to 1.0 and less than 1.2 | i 7,788 | i 16 | % | i 175,669 | i 43 | % | i 211,652 | i 43 | % | i 38,390 | i 60 | % | i 31,739 | i 52 | % | i 63,234 | i 50 | % | i 528,472 | i 47 | % | |||||||||||||||||||||||
Less than 1.0 | i — | i — | % | i — | i — | % | i 26,945 | i 52 | % | i — | i — | % | i 6,057 | i 64 | % | i 38,057 | i 66 | % | i 71,059 | i 61 | % | |||||||||||||||||||||||
Total | $ | i 7,788 | i 16 | % | $ | i 461,509 | i 55 | % | $ | i 600,590 | i 53 | % | $ | i 479,951 | i 56 | % | $ | i 581,416 | i 60 | % | $ | i 1,432,653 | i 49 | % | $ | i 3,563,907 | i 53 | % | ||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2022: | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||||||||||||||
Greater than or equal to 1.5 | $ | i 249,328 | i 63 | % | $ | i 257,746 | i 61 | % | $ | i 421,391 | i 57 | % | $ | i 429,596 | i 58 | % | $ | i 325,117 | i 53 | % | $ | i 813,319 | i 44 | % | $ | i 2,496,497 | i 53 | % | ||||||||||||||||
Greater
than or equal to 1.2 and less than 1.5 | i 6,488 | i 70 | % | i 123,038 | i 55 | % | i 46,804 | i 58 | % | i 115,977 | i 66 | % | i 67,642 | i 67 | % | i 145,703 | i 60 | % | i 505,652 | i 62 | % | |||||||||||||||||||||||
Greater
than or equal to 1.0 and less than 1.2 | i 170,059 | i 52 | % | i 211,684 | i 43 | % | i 18,144 | i 79 | % | i 39,396 | i 73 | % | i 10,348 | i 76 | % | i 58,021 | i 47 | % | i 507,652 | i 51 | % | |||||||||||||||||||||||
Less than 1.0 | i — | i — | % | i — | i — | % | i — | i — | % | i 6,107 | i 64 | % | i 13,025 | i 70 | % | i 25,625 | i 65 | % | i 44,757 | i 66 | % | |||||||||||||||||||||||
Total | $ | i 425,875 | i 59 | % | $ | i 592,468 | i 53 | % | $ | i 486,339 | i 58 | % | $ | i 591,076 | i 61 | % | $ | i 416,132 | i 57 | % | $ | i 1,042,668 | i 47 | % | $ | i 3,554,558 | i 54 | % |
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
As of March 31, 2023: | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Greater than or equal to 1.5 | $ | i 31,906 | i 60 | % | $ | i 86,270 | i 47 | % | $ | i 82,509 | i 53 | % | $ | i 100,292 | i 44 | % | $ | i — | i — | % | $ | i — | i — | % | $ | i 300,977 | i 49 | % | ||||||||||||||||
Greater
than or equal to 1.2 and less than 1.5 | i 10,082 | i 58 | % | i 105,916 | i 54 | % | i 67,170 | i 53 | % | i 60,643 | i 45 | % | i — | i — | % | i — | i — | % | i 243,811 | i 52 | % | |||||||||||||||||||||||
Greater
than or equal to 1.0 and less than 1.2 | i — | i — | % | i 3,102 | i 56 | % | i 8,687 | i 39 | % | i 3,125 | i 29 | % | i — | i — | % | i — | i — | % | i 14,914 | i 41 | % | |||||||||||||||||||||||
Less than 1.0 | i — | i — | % | i — | i — | % | i — | i — | % | i 7,976 | i 40 | % | i 5,589 | i 24 | % | i 34,000 | i 42 | % | i 47,565 | i 39 | % | |||||||||||||||||||||||
Total | $ | i 41,988 | i 59 | % | $ | i 195,288 | i 51 | % | $ | i 158,366 | i 52 | % | $ | i 172,036 | i 44 | % | $ | i 5,589 | i 24 | % | $ | i 34,000 | i 42 | % | $ | i 607,267 | i 49 | % | ||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2022: | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | Amortized Cost | Average LTV | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||||||||||||||
Greater than or equal to 1.5 | $ | i 85,367 | i 47 | % | $ | i 84,186 | i 46 | % | $ | i 97,143 | i 41 | % | $ | i — | i — | % | $ | i — | i — | % | $ | i — | i — | % | $ | i 266,696 | i 45 | % | ||||||||||||||||
Greater
than or equal to 1.2 and less than 1.5 | i 107,856 | i 54 | % | i 67,630 | i 52 | % | i 61,103 | i 32 | % | i — | i — | % | i — | i — | % | i — | i — | % | i 236,589 | i 48 | % | |||||||||||||||||||||||
Greater
than or equal to 1.0 and less than 1.2 | i 3,124 | i 56 | % | i 8,825 | i 38 | % | i 3,125 | i 25 | % | i — | i — | % | i — | i — | % | i — | i — | % | i 15,074 | i 39 | % | |||||||||||||||||||||||
Less than 1.0 | i — | i — | % | i — | i — | % | i 7,975 | i 35 | % | i 5,629 | i 41 | % | i 34,000 | i 31 | % | i — | i — | % | i 47,604 | i 33 | % | |||||||||||||||||||||||
Total | $ | i 196,347 | i 51 | % | $ | i 160,641 | i 48 | % | $ | i 169,346 | i 37 | % | $ | i 5,629 | i 41 | % | $ | i 34,000 | i 31 | % | $ | i — | i — | % | $ | i 565,963 | i 45 | % |
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||
As of March 31, 2023: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 7,788 | $ | i 461,509 | $ | i 600,590 | $ | i 479,951 | $ | i 581,416 | $ | i 1,432,653 | $ | i 3,563,907 | |||||||||||||||||||||||||||
30 - 59 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Total commercial mortgage loans | $ | i 7,788 | $ | i 461,509 | $ | i 600,590 | $ | i 479,951 | $ | i 581,416 | $ | i 1,432,653 | $ | i 3,563,907 | |||||||||||||||||||||||||||
Agricultural mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 41,988 | $ | i 195,288 | $ | i 153,023 | $ | i 172,036 | $ | i 5,589 | $ | i 34,000 | $ | i 601,924 | |||||||||||||||||||||||||||
30 - 59 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i — | i — | i 5,343 | i — | i — | i — | i 5,343 | ||||||||||||||||||||||||||||||||||
Total agricultural mortgage loans | $ | i 41,988 | $ | i 195,288 | $ | i 158,366 | $ | i 172,036 | $ | i 5,589 | $ | i 34,000 | $ | i 607,267 | |||||||||||||||||||||||||||
Residential mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 224,031 | $ | i 2,003,711 | $ | i 562,310 | $ | i 194,720 | $ | i 27,631 | $ | i 1,330 | $ | i 3,013,733 | |||||||||||||||||||||||||||
30 - 59 days past due | i — | i 16,627 | i 2,516 | i 4,960 | i 57 | i 417 | i 24,577 | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i — | i 7,452 | i 16,155 | i 7,385 | i 1,580 | i 2,795 | i 35,367 | ||||||||||||||||||||||||||||||||||
Total residential mortgage loans | $ | i 224,031 | $ | i 2,027,790 | $ | i 580,981 | $ | i 207,065 | $ | i 29,268 | $ | i 4,542 | $ | i 3,073,677 | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||
As of December 31, 2022: | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 425,875 | $ | i 592,468 | $ | i 486,339 | $ | i 591,076 | $ | i 416,132 | $ | i 1,042,668 | $ | i 3,554,558 | |||||||||||||||||||||||||||
30 - 59 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Total commercial mortgage loans | $ | i 425,875 | $ | i 592,468 | $ | i 486,339 | $ | i 591,076 | $ | i 416,132 | $ | i 1,042,668 | $ | i 3,554,558 | |||||||||||||||||||||||||||
Agricultural mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 196,347 | $ | i 160,641 | $ | i 166,211 | $ | i 5,629 | $ | i 34,000 | $ | i — | $ | i 562,828 | |||||||||||||||||||||||||||
30 - 59 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i — | i — | i 3,135 | i — | i — | i — | i 3,135 | ||||||||||||||||||||||||||||||||||
Total agricultural mortgage loans | $ | i 196,347 | $ | i 160,641 | $ | i 169,346 | $ | i 5,629 | $ | i 34,000 | $ | i — | $ | i 565,963 | |||||||||||||||||||||||||||
Residential mortgage loans | |||||||||||||||||||||||||||||||||||||||||
Current | $ | i 1,915,169 | $ | i 595,363 | $ | i 211,119 | $ | i 27,483 | $ | i 1,710 | $ | i 417 | $ | i 2,751,261 | |||||||||||||||||||||||||||
30 - 59 days past due | i 39,179 | i 8,238 | i 13,073 | i 1,960 | i — | i — | i 62,450 | ||||||||||||||||||||||||||||||||||
60 - 89 days past due | i 6,668 | i 7,165 | i 3,034 | i 57 | i — | i — | i 16,924 | ||||||||||||||||||||||||||||||||||
Over 90 days past due | i 9,702 | i 14,068 | i 6,515 | i 1,762 | i 2,796 | i — | i 34,843 | ||||||||||||||||||||||||||||||||||
Total residential mortgage loans | $ | i 1,970,718 | $ | i 624,834 | $ | i 233,741 | $ | i 31,262 | $ | i 4,506 | $ | i 417 | $ | i 2,865,478 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Total Assets | Total Liabilities | Total Assets | Total Liabilities | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Real estate investments | $ | i 1,221,622 | $ | i 127,087 | $ | i 1,095,267 | $ | i 78,244 | |||||||||||||||
Real estate limited liability companies | i 65,776 | i 243 | i 66,258 | i 287 | |||||||||||||||||||
Limited partnership funds | i 901,367 | i 189 | i 620,741 | i 113 | |||||||||||||||||||
Infrastructure limited liability companies | i 100,600 | i — | i — | i — | |||||||||||||||||||
$ | i 2,289,365 | $ | i 127,519 | $ | i 1,782,266 | $ | i 78,644 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Asset Carrying Value | Maximum Exposure to Loss | Asset Carrying Value | Maximum Exposure to Loss | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed maturity securities, available for sale | $ | i 1,493,364 | $ | i 1,493,364 | $ | i 1,178,110 | $ | i 1,178,110 | |||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||
Interest rate swaps | $ | i 408,369 | $ | i 19,778 | $ | i 408,369 | $ | i 32,769 | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||
Call options | $ | i 39,005,998 | $ | i 664,255 | $ | i 38,927,534 | $ | i 397,789 | |||||||||||||||
Warrants | i — | i — | i 2,020 | i 1,169 | |||||||||||||||||||
$ | i 39,005,998 | $ | i 664,255 | $ | i 38,929,554 | $ | i 398,958 | ||||||||||||||||
Liabilities | |||||||||||||||||||||||
Policy benefit reserves - annuity products | |||||||||||||||||||||||
Fixed index annuities - embedded derivatives, net | $ | i 4,905,133 | $ | i 4,820,845 | |||||||||||||||||||
Funds withheld for reinsurance liabilities | |||||||||||||||||||||||
Reinsurance related embedded derivative | ( i 377,484) | ( i 441,864) | |||||||||||||||||||||
$ | i 4,527,649 | $ | i 4,378,981 |
Line Item in the Consolidated Balance Sheets in Which Hedged Item is Included | Amortized Cost of Hedged Item | Cumulative Amount of Fair Value Basis Adjustment Gain (Loss) | ||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Fixed maturities, available for sale: | ||||||||||||||||||||||||||
Current hedging relationships | $ | i 389,904 | $ | i 389,060 | $ | ( i 25,011) | $ | ( i 39,128) | ||||||||||||||||||
Discontinued hedging relationships | i 1,333,176 | i 1,594,736 | ( i 79,031) | ( i 94,681) |
Derivative | Hedged Item | Net | Amount
Excluded: Recognized in Income Immediately | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
For the three months ended March 31, 2023 | |||||||||||||||||||||||
Interest rate swaps | $ | ( i 12,991) | $ | i 14,116 | $ | i 1,125 | $ | i — | |||||||||||||||
For the three months ended March 31, 2022 | |||||||||||||||||||||||
Interest rate swaps | $ | i — | $ | i — | $ | i — | $ | i — |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Change in fair value of derivatives: | |||||||||||||||||||||||
Call options | $ | i 43,444 | $ | ( i 478,448) | |||||||||||||||||||
Warrants | i 1,321 | i 929 | |||||||||||||||||||||
$ | i 44,765 | $ | ( i 477,519) | ||||||||||||||||||||
Change in fair value of embedded derivatives: | |||||||||||||||||||||||
Fixed index annuities - embedded derivatives | $ | i 205,469 | $ | ( i 1,308,123) | |||||||||||||||||||
Other changes in difference between policy benefit reserves computed using derivative accounting (ASC 815) vs. insurance contracts accounting (ASC 944) | i 134,591 | i 116,918 | |||||||||||||||||||||
Reinsurance related embedded derivative | i 64,380 | ( i 202,444) | |||||||||||||||||||||
$ | i 404,440 | $ | ( i 1,393,649) |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Counterparty | Credit Rating (S&P) | Credit Rating (Moody's) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Bank of America | A+ | Aa2 | $ | i 3,913,403 | $ | i 45,365 | $ | i 3,574,125 | $ | i 26,080 | ||||||||||||||||||||||||||||
Barclays | A | A1 | i 2,910,246 | i 60,478 | i 3,686,896 | i 39,657 | ||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | A+ | Aa2 | i 2,442,141 | i 54,020 | i 2,707,734 | i 34,218 | ||||||||||||||||||||||||||||||||
Citibank, N.A. | A+ | Aa3 | i 4,132,309 | i 49,853 | i 3,748,162 | i 29,873 | ||||||||||||||||||||||||||||||||
Credit Suisse | A- | A3 | i 2,074,458 | i 36,903 | i 2,086,470 | i 20,691 | ||||||||||||||||||||||||||||||||
J.P. Morgan | A+ | Aa2 | i 6,153,747 | i 78,007 | i 6,501,103 | i 69,006 | ||||||||||||||||||||||||||||||||
Mizuho | A | A1 | i 691,141 | i 19,273 | i — | i — | ||||||||||||||||||||||||||||||||
Morgan Stanley | A+ | Aa3 | i 2,569,596 | i 36,543 | i 2,957,389 | i 38,470 | ||||||||||||||||||||||||||||||||
Royal Bank of Canada | AA- | A1 | i 4,595,241 | i 102,189 | i 4,378,132 | i 58,026 | ||||||||||||||||||||||||||||||||
Societe Generale | A | A1 | i 2,460,528 | i 36,410 | i 2,099,081 | i 17,157 | ||||||||||||||||||||||||||||||||
Truist | A | A2 | i 2,142,918 | i 49,287 | i 1,960,787 | i 32,885 | ||||||||||||||||||||||||||||||||
Wells Fargo | A+ | Aa2 | i 5,200,545 | i 113,323 | i 5,436,824 | i 61,840 | ||||||||||||||||||||||||||||||||
Exchange traded | i 128,094 | i 2,382 | i 199,200 | i 2,655 | ||||||||||||||||||||||||||||||||||
$ | i 39,414,367 | $ | i 684,033 | $ | i 39,335,903 | $ | i 430,558 |
Three Months Ended March 31, 2023 | |||||||||||||||||
Fixed Index Annuities | Fixed Rate Annuities | Single Premium Immediate Annuities | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance, beginning of year | $ | i 2,649,322 | $ | i 120,105 | $ | i 4,216 | |||||||||||
Capitalizations | i 54,803 | i 11,949 | i 16 | ||||||||||||||
Amortization expense | ( i 60,801) | ( i 7,247) | ( i 188) | ||||||||||||||
Balance, end of period | $ | i 2,643,324 | $ | i 124,807 | $ | i 4,044 |
Year Ended December 31, 2022 | |||||||||||||||||
Fixed Index Annuities | Fixed Rate Annuities | Single Premium Immediate Annuities | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance, beginning of year | $ | i 2,906,684 | $ | i 151,322 | $ | i 4,198 | |||||||||||
Write-off related to in-force ceded reinsurance | ( i 196,417) | ( i 7,209) | i — | ||||||||||||||
Capitalizations | i 193,988 | i 4,424 | i 663 | ||||||||||||||
Amortization expense | ( i 254,933) | ( i 28,432) | ( i 645) | ||||||||||||||
Balance, end of period | $ | i 2,649,322 | $ | i 120,105 | $ | i 4,216 |
Deferred Policy Acquisitions Costs | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Fixed Index Annuities | $ | i 2,643,324 | $ | i 2,649,322 | |||||||
Fixed Rate Annuities | i 124,807 | i 120,105 | |||||||||
Single Premium Immediate Annuities | i 4,044 | i 4,216 | |||||||||
Total | $ | i 2,772,175 | $ | i 2,773,643 |
Three Months Ended March 31, 2023 | |||||||||||
Fixed Index Annuities | Fixed Rate Annuities | ||||||||||
(Dollars in thousands) | |||||||||||
Balance, beginning of year | $ | i 2,017,960 | $ | i 27,723 | |||||||
Capitalizations | i 45,266 | i — | |||||||||
Amortization expense | ( i 45,786) | ( i 814) | |||||||||
Balance, end of period | $ | i 2,017,440 | $ | i 26,909 |
Year Ended December 31, 2022 | |||||||||||
Fixed Index Annuities | Fixed Rate Annuities | ||||||||||
(Dollars in thousands) | |||||||||||
Balance, beginning of year | $ | i 2,088,591 | $ | i 31,370 | |||||||
Capitalizations | i 107,683 | i 8 | |||||||||
Amortization expense | ( i 178,314) | ( i 3,655) | |||||||||
Balance, end of period | $ | i 2,017,960 | $ | i 27,723 |
Deferred Sales Inducements | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Fixed Index Annuities | $ | i 2,017,440 | $ | i 2,017,960 | |||||||
Fixed Rate Annuities | i 26,909 | i 27,723 | |||||||||
Total | $ | i 2,044,349 | $ | i 2,045,683 |
Present
Value of Expected Future Policy Benefits | |||||||||||
Three Months Ended March 31, 2023 | Year Ended December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Balance, beginning of year | $ | i 317,418 | $ | i 401,022 | |||||||
Beginning balance at original discount rate | i 341,071 | i 351,575 | |||||||||
Effect of changes in cash flow assumptions | i — | i 1,280 | |||||||||
Effect of actual variances from expected experience | ( i 354) | ( i 1,958) | |||||||||
Adjusted beginning of year balance | i 340,717 | i 350,897 | |||||||||
Issuances | i 2,874 | i 15,766 | |||||||||
Interest accrual | i 3,548 | i 14,613 | |||||||||
Benefit payments | i — | i — | |||||||||
Derecognition (lapses) | ( i 9,818) | ( i 40,205) | |||||||||
Ending balance at original discount rate | i 337,321 | i 341,071 | |||||||||
Effect of changes in discount rate assumptions | ( i 18,859) | ( i 23,653) | |||||||||
Balance, end of period | $ | i 318,462 | $ | i 317,418 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Liability for future policy benefits | $ | i 319,895 | $ | i 318,677 | |||||||
Deferred profit liability | i 19,341 | i 19,084 | |||||||||
i 339,236 | i 337,761 | ||||||||||
Less: Reinsurance recoverable | ( i 1,433) | ( i 1,259) | |||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | i 337,803 | $ | i 336,502 |
March 31, 2023 | December 31, 2022 | ||||||||||
SPIA With Life Contingency: | |||||||||||
Weighted-average liability duration of the liability for future policy benefits (years) | i 7.58 | i 6.78 | |||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
SPIA With Life Contingency: | |||||||||||
Expected future benefit payments | $ | i 462,201 | $ | i 467,627 | |||||||
Expected future gross premiums | i — | i — | |||||||||
Three Months Ended March 31, 2023 | Year
Ended December 31, 2022 | ||||||||||||||||||||||
Gross Premiums or Assessments | Interest Expense | Gross Premiums or Assessments | Interest Expense | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Liability for future policy benefits | $ | i 3,391 | $ | i 3,548 | $ | i 16,994 | $ | i 14,613 | |||||||||||||||
Total | $ | i 3,391 | $ | i 3,548 | $ | i 16,994 | $ | i 14,613 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Interest accretion rate | i 4.26 | % | i 4.25 | % | |||||||
Current discount rate | i 4.95 | % | i 5.37 | % |
Three
Months Ended March 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||||||||
Fixed Rate Annuities | Fixed Index Annuities | Fixed Rate Annuities | Fixed Index Annuities | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
MRB Liability | |||||||||||||||||||||||
Balance, beginning of year | $ | i 37,863 | $ | i 2,187,758 | $ | i 78,411 | $ | i 2,557,379 | |||||||||||||||
Balance, beginning of year, before effect of changes in the instrument-specific credit risk | i 44,355 | i 2,453,169 | i 77,732 | i 2,310,436 | |||||||||||||||||||
Issuances | i — | i 44,841 | i 376 | i 59,452 | |||||||||||||||||||
Interest accrual | i 607 | i 36,217 | i 1,349 | i 72,551 | |||||||||||||||||||
Attributed fees collected | i 302 | i 30,041 | i 1,270 | i 125,168 | |||||||||||||||||||
Benefits payments | i — | i — | i — | i — | |||||||||||||||||||
Effect of changes in interest rates | i 2,973 | i 172,165 | ( i 19,421) | ( i 952,265) | |||||||||||||||||||
Effect of changes in equity markets | i — | ( i 16,573) | i — | i 186,618 | |||||||||||||||||||
Effect of changes in equity index volatility | i — | ( i 7,760) | i — | i 241,563 | |||||||||||||||||||
Actual policyholder behavior different from expected behavior | i — | i — | i — | i — | |||||||||||||||||||
Effect of changes in future expected policyholder behavior | i 714 | i 3,738 | i 602 | i 46,567 | |||||||||||||||||||
Effect of changes in other future expected assumptions | i — | i — | ( i 17,553) | i 363,079 | |||||||||||||||||||
Balance, end of year, before effect of changes in the instrument-specific credit | i 48,951 | i 2,715,838 | i 44,355 | i 2,453,169 | |||||||||||||||||||
Effect of changes in the instrument-specific credit risk | ( i 7,795) | ( i 334,113) | ( i 6,492) | ( i 265,411) | |||||||||||||||||||
Balance, end of year | i 41,156 | i 2,381,725 | i 37,863 | i 2,187,758 | |||||||||||||||||||
Reinsured MRB, end of period | i 11,463 | i 674,239 | i 10,656 | i 593,959 | |||||||||||||||||||
Balance, end of period, net of reinsurance | $ | i 29,693 | $ | i 1,707,486 | $ | i 27,207 | $ | i 1,593,799 | |||||||||||||||
Net amount at risk (a) | $ | i 262,643 | $ | i 11,120,564 | $ | i 258,826 | $ | i 10,987,198 | |||||||||||||||
Weighted average attained age of contract holders (years) | i 69 | i 71 | i 69 | i 71 |
March 31, 2023 | |||||||||||||||||
Asset | Liability | Net Liability | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed Index Annuities | $ | i 226,747 | $ | i 2,608,472 | $ | i 2,381,725 | |||||||||||
Fixed Rate Annuities | i 3,557 | i 44,713 | i 41,156 | ||||||||||||||
Total | $ | i 230,304 | $ | i 2,653,185 | $ | i 2,422,881 |
December 31, 2022 | |||||||||||||||||
Asset | Liability | Net Liability | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed Index Annuities | $ | i 226,294 | $ | i 2,414,052 | $ | i 2,187,758 | |||||||||||
Fixed Rate Annuities | i 3,577 | i 41,440 | i 37,863 | ||||||||||||||
Total | $ | i 229,871 | $ | i 2,455,492 | $ | i 2,225,621 |
Three
Months Ended March 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||||||||
Fixed Rate Annuities | Fixed Index Annuities | Fixed Rate Annuities | Fixed Index Annuities | ||||||||||||||||||||
Ceded MRB | (Dollars in thousands) | ||||||||||||||||||||||
Balance, beginning of year | $ | i 10,656 | $ | i 593,959 | $ | i — | $ | i 156,931 | |||||||||||||||
Write-off related to in-force ceded reinsurance | i — | i — | i 10,091 | i 334,835 | |||||||||||||||||||
Issuances | i — | i 32,744 | i — | i 36,036 | |||||||||||||||||||
Interest accrual | i 128 | i 7,136 | i 104 | i 7,598 | |||||||||||||||||||
Attributed fees collected | i 7 | i 6,106 | i 28 | i 23,745 | |||||||||||||||||||
Benefits payments | i — | i — | i — | i — | |||||||||||||||||||
Effect of changes in interest rates | i 603 | i 40,846 | i 135 | ( i 171,948) | |||||||||||||||||||
Effect of changes in equity markets | i — | ( i 7,043) | i 118 | i 43,799 | |||||||||||||||||||
Effect of changes in equity index volatility | i — | ( i 2,021) | i — | i 34,278 | |||||||||||||||||||
Actual policyholder behavior different from expected behavior | i — | i — | i — | i — | |||||||||||||||||||
Effect of changes in future expected policyholder behavior | i 69 | i 2,512 | i 180 | i 12,598 | |||||||||||||||||||
Effect of changes in other future expected assumptions | i — | i — | i — | i 116,087 | |||||||||||||||||||
Balance, end of year | $ | i 11,463 | $ | i 674,239 | $ | i 10,656 | $ | i 593,959 | |||||||||||||||
Net amount at risk (a) | $ | i 73,259 | $ | i 2,419,275 | $ | i 72,350 | $ | i 2,402,964 | |||||||||||||||
Weighted average attained age of contract holders (years) | i 70 | i 71 | i 70 | i 71 |
March 31, 2023 | |||||||||||||||||
Asset | Liability | Net Asset | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed Index Annuities | $ | i 712,734 | $ | i 38,495 | $ | i 674,239 | |||||||||||
Fixed Rate Annuities | i 11,884 | i 421 | i 11,463 | ||||||||||||||
Total | $ | i 724,618 | $ | i 38,916 | $ | i 685,702 |
December 31, 2022 | |||||||||||||||||
Asset | Liability | Net Asset | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed Index Annuities | $ | i 629,611 | $ | i 35,652 | $ | i 593,959 | |||||||||||
Fixed Rate Annuities | i 11,070 | i 414 | i 10,656 | ||||||||||||||
Total | $ | i 640,681 | $ | i 36,066 | $ | i 604,615 |
March 31, 2023 | |||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Significant Inputs and Assumptions | Range | Weighted Average | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Market risk benefits | $ | i 2,422,881 | Discounted cash flow | Utilization (a) | i 0.04% - i 78.75% | i 4.18% | |||||||||||||||||||||||
Ceded market risk benefits | i 685,702 | Option budget (b) | i 1.65%
- i 2.50% | i 2.31% | |||||||||||||||||||||||||
Risk-free interest rate (c) | i 2.35% - i 4.72% | i 3.01% | |||||||||||||||||||||||||||
Nonperformance risk (d) | i 0.55% - i 3.49% | i 2.71% | |||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Significant Inputs and Assumptions | Range | Weighted Average | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Market risk benefits | $ | i 2,225,621 | Discounted cash flow | Utilization (a) | i 0.04% - i 78.75% | i 4.24% | |||||||||||||||||||||||
Ceded market risk benefits | i 604,615 | Option budget (b) | i 1.65%
- i 2.50% | i 2.31% | |||||||||||||||||||||||||
Risk-free interest rate (c) | i 2.51% - i 4.90% | i 3.31% | |||||||||||||||||||||||||||
Nonperformance risk (d) | i 0.06% - i 3.27% | i 2.59% | |||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||||||||
Fixed Rate Annuities | Fixed Index Annuities | Fixed Rate Annuities | Fixed Index Annuities | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of year | $ | i 6,589,577 | $ | i 53,808,184 | $ | i 6,860,060 | $ | i 55,001,391 | |||||||||||||||
Issuances | i 407,249 | i 926,058 | i 159,570 | i 2,986,223 | |||||||||||||||||||
Premiums received | i 526 | i 35,046 | i 4,811 | i 170,493 | |||||||||||||||||||
Policy charges | ( i 2,100) | ( i 75,223) | ( i 6,587) | ( i 272,604) | |||||||||||||||||||
Surrenders and withdrawals | ( i 180,822) | ( i 1,213,070) | ( i 574,590) | ( i 3,945,504) | |||||||||||||||||||
Benefit payments | ( i 3,290) | ( i 203,524) | ( i 11,328) | ( i 727,847) | |||||||||||||||||||
Interest credited | i 38,884 | i 83,963 | i 151,762 | i 598,639 | |||||||||||||||||||
Other | ( i 482) | ( i 313) | i 5,879 | ( i 2,607) | |||||||||||||||||||
Balance, end of period | $ | i 6,849,542 | $ | i 53,361,121 | $ | i 6,589,577 | $ | i 53,808,184 | |||||||||||||||
Weighted-average crediting rate | i 2.32 | % | i 0.63 | % | i 2.28 | % | i 1.11 | % | |||||||||||||||
Net amount at risk (a) | $ | i 262,643 | $ | i 11,120,564 | $ | i 258,826 | $ | i 10,987,198 | |||||||||||||||
Cash surrender value | $ | i 6,456,292 | $ | i 49,205,688 | $ | i 6,208,597 | $ | i 49,551,657 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Fixed index annuities policyholder account balances | $ | i 53,361,121 | $ | i 53,808,184 | |||||||
Fixed rate annuities policyholder account balances | i 6,849,542 | i 6,589,577 | |||||||||
Embedded derivative adjustment (b) | ( i 1,576,129) | ( i 1,996,640) | |||||||||
Liability for future policy benefits | i 319,895 | i 318,677 | |||||||||
Deferred profit liability | i 19,341 | i 19,084 | |||||||||
Other | i 45,419 | i 42,954 | |||||||||
Total | $ | i 59,019,189 | $ | i 58,781,836 |
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rate | At guaranteed minimum | 1 to 50 | 51 to 150 | Greater than 150 basis points above | Total | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Fixed Index Annuities | i 0.00%
- i 0.50% | $ | i — | $ | i 545,301 | $ | i 443,724 | $ | i 406,824 | $ | i 1,395,849 | ||||||||||||||||||||||||
i 0.50%
- i 1.00% | i 2,449,974 | i 1,104,836 | i 2,251,001 | i 89,954 | i 5,895,765 | ||||||||||||||||||||||||||||||
i 1.00%
- i 1.50% | i 50,601 | i 9,347 | i — | i — | i 59,948 | ||||||||||||||||||||||||||||||
i 1.50%
- i 2.00% | i 57 | i — | i — | i — | i 57 | ||||||||||||||||||||||||||||||
i 2.00%
- i 2.50% | i 132,027 | i 91,276 | i 8 | i — | i 223,311 | ||||||||||||||||||||||||||||||
i 2.50%
- i 3.00% | i 905,663 | i — | i — | i — | i 905,663 | ||||||||||||||||||||||||||||||
Greater
than i 3.00% | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||
Allocated to index strategies | — | — | — | — | i 44,880,528 | ||||||||||||||||||||||||||||||
Total | $ | i 3,538,322 | $ | i 1,750,760 | $ | i 2,694,733 | $ | i 496,778 | $ | i 53,361,121 | |||||||||||||||||||||||||
Fixed Rate Annuities | i 0.00% - i 0.50% | $ | i — | $ | i — | $ | i — | $ | i 101 | $ | i 101 | ||||||||||||||||||||||||
i 0.50%
- i 1.00% | i 55,547 | i 201,007 | i 3,995,398 | i 1,014,260 | i 5,266,212 | ||||||||||||||||||||||||||||||
i 1.00%
- i 1.50% | i 453,063 | i 232 | i — | i — | i 453,295 | ||||||||||||||||||||||||||||||
i 1.50%
- i 2.00% | i 278,374 | i 93,402 | i 271,181 | i 190 | i 643,147 | ||||||||||||||||||||||||||||||
i 2.00%
- i 2.50% | i 18,985 | i 23 | i — | i — | i 19,008 | ||||||||||||||||||||||||||||||
i 2.50%
- i 3.00% | i 406,972 | i 7,304 | i — | i — | i 414,276 | ||||||||||||||||||||||||||||||
Greater
than i 3.00% | i 53,503 | i — | i — | i — | i 53,503 | ||||||||||||||||||||||||||||||
Total | $ | i 1,266,444 | $ | i 301,968 | $ | i 4,266,579 | $ | i 1,014,551 | $ | i 6,849,542 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rate | At guaranteed minimum | 1 to 50 | 51 to 150 | Greater than 150 basis points above | Total | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Fixed Index Annuities | i 0.00%
- i 0.50% | $ | i — | $ | i 462,356 | $ | i 407,031 | $ | i 315,324 | $ | i 1,184,711 | ||||||||||||||||||||||||
i 0.50%
- i 1.00% | i 2,421,244 | i 1,098,332 | i 2,258,992 | i 77,901 | i 5,856,469 | ||||||||||||||||||||||||||||||
i 1.00%
- i 1.50% | i 51,586 | i 9,391 | i — | i — | i 60,977 | ||||||||||||||||||||||||||||||
i 1.50%
- i 2.00% | i 57 | i — | i — | i — | i 57 | ||||||||||||||||||||||||||||||
i 2.00%
- i 2.50% | i 133,059 | i 100,205 | i 8 | i — | i 233,272 | ||||||||||||||||||||||||||||||
i 2.50%
- i 3.00% | i 939,684 | i — | i — | i — | i 939,684 | ||||||||||||||||||||||||||||||
Greater
than i 3.00% | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||
Allocated to index strategies | i 45,533,014 | ||||||||||||||||||||||||||||||||||
Total | $ | i 3,545,630 | $ | i 1,670,284 | $ | i 2,666,031 | $ | i 393,225 | $ | i 53,808,184 | |||||||||||||||||||||||||
Fixed Rate Annuities | i 0.00% - i 0.50% | $ | i — | $ | i — | $ | i — | $ | i 61 | $ | i 61 | ||||||||||||||||||||||||
i 0.50%
- i 1.00% | i 55,458 | i 203,523 | i 4,000,203 | i 701,836 | i 4,961,020 | ||||||||||||||||||||||||||||||
i 1.00%
- i 1.50% | i 454,728 | i 231 | i — | i — | i 454,959 | ||||||||||||||||||||||||||||||
i 1.50%
- i 2.00% | i 281,694 | i 96,767 | i 277,053 | i 189 | i 655,703 | ||||||||||||||||||||||||||||||
i 2.00%
- i 2.50% | i 21,887 | i 22 | i — | i — | i 21,909 | ||||||||||||||||||||||||||||||
i 2.50%
- i 3.00% | i 434,042 | i 7,417 | i — | i — | i 441,459 | ||||||||||||||||||||||||||||||
Greater
than i 3.00% | i 54,466 | i — | i — | i — | i 54,466 | ||||||||||||||||||||||||||||||
Total | $ | i 1,302,275 | $ | i 307,960 | $ | i 4,277,256 | $ | i 702,086 | $ | i 6,589,577 |
March 31, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Senior notes due 2027 | |||||||||||
Principal | $ | i 500,000 | $ | i 500,000 | |||||||
Unamortized debt issue costs | ( i 2,811) | ( i 2,960) | |||||||||
Unamortized discount | ( i 169) | ( i 178) | |||||||||
Term loan due 2027 | |||||||||||
Principal | i 300,000 | i 300,000 | |||||||||
Principal paydown | ( i 5,625) | ( i 3,750) | |||||||||
Unamortized debt issue costs | ( i 982) | ( i 1,039) | |||||||||
$ | i 790,413 | $ | i 792,073 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) available to common stockholders - numerator for earnings (loss) per common share | $ | ( i 166,913) | $ | i 668,546 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding | i 83,416,966 | i 96,866,125 | |||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options and deferred compensation agreements | i 597,119 | i 612,265 | |||||||||||||||||||||
Restricted stock and restricted stock units | i 737,283 | i 474,923 | |||||||||||||||||||||
Antidilutive impact due to net loss | ( i 1,334,402) | i — | |||||||||||||||||||||
Denominator for earnings (loss) per common share - assuming dilution | i 83,416,966 | i 97,953,313 | |||||||||||||||||||||
Earnings (loss) per common share | $ | ( i 2.00) | $ | i 6.90 | |||||||||||||||||||
Earnings (loss) per common share - assuming dilution | $ | ( i 2.00) | $ | i 6.83 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Average yield on invested assets | 4.48% | 4.15% | |||||||||||||||||||||
Aggregate cost of money | 1.81% | 1.64% | |||||||||||||||||||||
Aggregate investment spread | 2.67% | 2.51% | |||||||||||||||||||||
Impact of: | |||||||||||||||||||||||
Investment yield - additional prepayment income | —% | 0.03% | |||||||||||||||||||||
Cost of money benefit from over hedging | —% | 0.03% |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
American Equity Investment Life Insurance Company: | |||||||||||||||||||||||
Fixed index annuities | $ | 735,839 | $ | 755,980 | |||||||||||||||||||
Annual reset fixed rate annuities | 693 | 1,062 | |||||||||||||||||||||
Multi-year fixed rate annuities | 156,034 | 2,345 | |||||||||||||||||||||
Single premium immediate annuities | 427 | 13,453 | |||||||||||||||||||||
892,993 | 772,840 | ||||||||||||||||||||||
Eagle Life Insurance Company: | |||||||||||||||||||||||
Fixed index annuities | 228,599 | 126,754 | |||||||||||||||||||||
Annual reset fixed rate annuities | 1,269 | 7 | |||||||||||||||||||||
Multi-year fixed rate annuities | 248,229 | 2,340 | |||||||||||||||||||||
478,097 | 129,101 | ||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||
Fixed index annuities | 964,438 | 882,734 | |||||||||||||||||||||
Annual reset fixed rate annuities | 1,962 | 1,069 | |||||||||||||||||||||
Multi-year fixed rate annuities | 404,263 | 4,685 | |||||||||||||||||||||
Single premium immediate annuities | 427 | 13,453 | |||||||||||||||||||||
Total before coinsurance ceded | 1,371,090 | 901,941 | |||||||||||||||||||||
Coinsurance ceded | 637,999 | 213,563 | |||||||||||||||||||||
Net after coinsurance ceded | $ | 733,091 | $ | 688,378 |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Reconciliation from net income (loss) available to common stockholders to non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
Net income (loss) available to American Equity Investment Life Holding Company common stockholders | $ | (166,913) | $ | 668,546 | |||||||||||||||||||
Adjustments to arrive at non-GAAP operating income available to common stockholders: | |||||||||||||||||||||||
Net realized losses on financial assets, including credit losses | 24,384 | 13,725 | |||||||||||||||||||||
Change in fair value of derivatives and embedded derivatives | 206,202 | (847,207) | |||||||||||||||||||||
Capital markets impact on the change in fair value of market risk benefits | 136,950 | 118,913 | |||||||||||||||||||||
Net investment income | (2,491) | — | |||||||||||||||||||||
Other revenue | 5,969 | — | |||||||||||||||||||||
Income taxes | (79,765) | 153,090 | |||||||||||||||||||||
Non-GAAP operating income available to common stockholders | $ | 124,336 | $ | 107,067 |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Surrender charges | $ | 26,542 | $ | 15,541 | |||||||||||||||||||
Lifetime income benefit riders (LIBR) fees | 36,049 | 36,814 | |||||||||||||||||||||
$ | 62,591 | $ | 52,355 | ||||||||||||||||||||
Withdrawals from annuity policies subject to surrender charges | $ | 460,767 | $ | 267,336 | |||||||||||||||||||
Average surrender charge collected on withdrawals subject to surrender charges | 5.8 | % | 5.8 | % | |||||||||||||||||||
Fund values on policies subject to LIBR fees | $ | 4,300,875 | $ | 4,558,943 | |||||||||||||||||||
Weighted average per policy LIBR fee | 0.84 | % | 0.81 | % |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Call options: | |||||||||||||||||||||||
Gain (loss) on option expiration | $ | (152,884) | $ | 51,787 | |||||||||||||||||||
Change in unrealized gains/losses | 196,328 | (530,235) | |||||||||||||||||||||
Warrants | 1,321 | 929 | |||||||||||||||||||||
Interest rate swaps | 1,125 | — | |||||||||||||||||||||
$ | 45,890 | $ | (477,519) |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
S&P 500 Index | |||||||||||||||||||||||
Point-to-point strategy | 0.0% - 0.0% | 0.6% - 12.5% | |||||||||||||||||||||
Monthly average strategy | 0.0% - 0.0% | 1.0% - 8.6% | |||||||||||||||||||||
Monthly point-to-point strategy | 0.0% - 0.0% | 0.0% - 12.9% | |||||||||||||||||||||
Volatility control index point-to-point strategy | 0.0% - 1.3% | 0.0% - 7.3% | |||||||||||||||||||||
Fixed income (bond index) strategies | 0.0% - 6.0% | 0.0% - 5.1% |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Asset liability management fees | $ | 5,991 | $ | 2,905 | |||||||||||||||||||
Amortization of deferred gain | 10,403 | 5,912 | |||||||||||||||||||||
$ | 16,394 | $ | 8,817 |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Index credits on index policies | $ | 3,533 | $ | 224,385 | |||||||||||||||||||
Interest credited (including changes in minimum guaranteed interest for fixed index annuities) | 54,378 | 63,532 | |||||||||||||||||||||
$ | 57,911 | $ | 287,917 |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed index annuities - embedded derivatives | $ | 205,469 | $ | (1,308,123) | |||||||||||||||||||
Other changes in difference between policy benefit reserves computed using derivative accounting (ASC 815) vs. insurance contracts accounting (ASC 944) | 134,591 | 116,918 | |||||||||||||||||||||
Reinsurance related embedded derivative | 64,380 | (202,444) | |||||||||||||||||||||
$ | 404,440 | $ | (1,393,649) |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Salary and benefits | $ | 48,252 | $ | 36,187 | |||||||||||||||||||
Other | 25,752 | 21,608 | |||||||||||||||||||||
Total other operating costs and expenses | $ | 74,004 | $ | 57,795 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
U.S. Government and agencies | $ | 177,878 | 0.4 | % | $ | 169,071 | 0.4 | % | |||||||||||||||
States, municipalities and territories | 3,665,674 | 8.0 | % | 3,822,943 | 8.5 | % | |||||||||||||||||
Foreign corporate securities and foreign governments | 622,583 | 1.4 | % | 616,938 | 1.4 | % | |||||||||||||||||
Corporate securities | 19,584,731 | 43.0 | % | 20,201,774 | 44.8 | % | |||||||||||||||||
Residential mortgage backed securities | 1,283,590 | 2.8 | % | 1,366,927 | 3.0 | % | |||||||||||||||||
Commercial mortgage backed securities | 3,409,589 | 7.5 | % | 3,447,075 | 7.6 | % | |||||||||||||||||
Other asset backed securities | 5,817,083 | 12.8 | % | 5,155,254 | 11.4 | % | |||||||||||||||||
Total fixed maturity securities | 34,561,128 | 75.9 | % | 34,779,982 | 77.1 | % | |||||||||||||||||
Mortgage loans on real estate | 6,986,882 | 15.3 | % | 6,778,977 | 15.0 | % | |||||||||||||||||
Real estate investments | 1,164,879 | 2.6 | % | 1,056,063 | 2.3 | % | |||||||||||||||||
Limited partnerships and limited liability companies | 1,657,415 | 3.6 | % | 1,266,779 | 2.8 | % | |||||||||||||||||
Derivative instruments | 684,033 | 1.5 | % | 431,727 | 1.0 | % | |||||||||||||||||
Other investments | 497,523 | 1.1 | % | 829,900 | 1.8 | % | |||||||||||||||||
45,551,860 | 100.0 | % | 45,143,428 | 100.0 | % | ||||||||||||||||||
Coinsurance investments (1) | 5,866,478 | 6,181,870 | |||||||||||||||||||||
$ | 51,418,338 | $ | 51,325,298 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Rating Agency Rating | Amortized Cost | Carrying Amount | Percent of Fixed Maturity Securities | Amortized Cost | Carrying Amount | Percent of Fixed Maturity Securities | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Aaa/Aa/A | $ | 23,751,792 | $ | 21,527,275 | 62.3 | % | $ | 24,462,459 | $ | 21,723,282 | 62.5 | % | |||||||||||||||||||||||
Baa | 13,892,051 | 12,373,819 | 35.8 | % | 14,228,490 | 12,434,302 | 35.7 | % | |||||||||||||||||||||||||||
Total investment grade | 37,643,843 | 33,901,094 | 98.1 | % | 38,690,949 | 34,157,584 | 98.2 | % | |||||||||||||||||||||||||||
Ba | 568,020 | 494,809 | 1.4 | % | 554,605 | 485,166 | 1.4 | % | |||||||||||||||||||||||||||
B | 146,297 | 113,418 | 0.3 | % | 94,185 | 79,058 | 0.2 | % | |||||||||||||||||||||||||||
Caa | 19,684 | 18,397 | 0.1 | % | 20,020 | 18,540 | 0.1 | % | |||||||||||||||||||||||||||
Ca and lower | 37,008 | 33,410 | 0.1 | % | 40,664 | 39,634 | 0.1 | % | |||||||||||||||||||||||||||
Total below investment grade | 771,009 | 660,034 | 1.9 | % | 709,474 | 622,398 | 1.8 | % | |||||||||||||||||||||||||||
38,414,852 | 34,561,128 | 100.0 | % | 39,400,423 | 34,779,982 | 100.0 | % | ||||||||||||||||||||||||||||
Coinsurance investments (1) | 5,369,579 | 4,994,496 | 5,465,596 | 5,024,635 | |||||||||||||||||||||||||||||||
$ | 43,784,431 | $ | 39,555,624 | $ | 44,866,019 | $ | 39,804,617 |
NAIC Designation | NRSRO Equivalent Rating | |||||||
1 | Aaa/Aa/A | |||||||
2 | Baa | |||||||
3 | Ba | |||||||
4 | B | |||||||
5 | Caa | |||||||
6 | Ca and lower |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Fair Value | Carrying Amount | Percent of Total Carrying Amount | Amortized Cost | Fair Value | Carrying Amount | Percent of Total Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
1 | $ | 23,863,099 | $ | 21,622,202 | $ | 21,622,202 | 62.6 | % | $ | 24,466,961 | $ | 21,752,775 | $ | 21,752,775 | 62.5 | % | ||||||||||||||||||||||||||||||||||
2 | 13,802,465 | 12,303,113 | 12,303,113 | 35.6 | % | 14,185,506 | 12,398,001 | 12,398,001 | 35.6 | % | ||||||||||||||||||||||||||||||||||||||||
3 | 579,165 | 503,236 | 503,236 | 1.5 | % | 562,190 | 490,198 | 490,198 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||
4 | 151,304 | 116,477 | 116,477 | 0.3 | % | 109,409 | 91,495 | 91,495 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||
5 | 7,171 | 7,595 | 7,595 | — | % | 61,721 | 36,738 | 36,738 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||
6 | 11,648 | 8,505 | 8,505 | — | % | 14,636 | 10,775 | 10,775 | — | % | ||||||||||||||||||||||||||||||||||||||||
38,414,852 | 34,561,128 | 34,561,128 | 100.0 | % | 39,400,423 | 34,779,982 | 34,779,982 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||
Coinsurance investments (1) | 5,369,579 | 4,994,496 | 4,994,496 | 5,465,596 | 5,024,635 | 5,024,635 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 43,784,431 | $ | 39,555,624 | $ | 39,555,624 | $ | 44,866,019 | $ | 39,804,617 | $ | 39,804,617 |
Number
of Securities | Amortized Cost | Unrealized Losses, Net of Allowance | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | 18 | $ | 65,527 | $ | (2,208) | $ | — | $ | 63,319 | ||||||||||||||||||||
States, municipalities and territories | 484 | 3,069,059 | (453,084) | — | 2,615,975 | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | 41 | 573,609 | (64,794) | — | 508,815 | ||||||||||||||||||||||||
Corporate securities | 1,878 | 19,559,724 | (2,710,761) | (1,914) | 16,847,049 | ||||||||||||||||||||||||
Residential mortgage backed securities | 222 | 1,190,237 | (109,208) | (133) | 1,080,896 | ||||||||||||||||||||||||
Commercial mortgage backed securities | 330 | 3,738,130 | (386,242) | — | 3,351,888 | ||||||||||||||||||||||||
Other asset backed securities | 615 | 4,874,105 | (340,951) | — | 4,533,154 | ||||||||||||||||||||||||
3,588 | 33,070,391 | (4,067,248) | (2,047) | 29,001,096 | |||||||||||||||||||||||||
Coinsurance investments (1) | 587 | 2,835,968 | (467,166) | — | 2,368,802 | ||||||||||||||||||||||||
4,175 | $ | 35,906,359 | $ | (4,534,414) | $ | (2,047) | $ | 31,369,898 | |||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
U.S. Government and agencies | 27 | $ | 165,746 | $ | (4,637) | $ | — | $ | 161,109 | ||||||||||||||||||||
States, municipalities and territories | 514 | 3,265,080 | (574,814) | — | 2,690,266 | ||||||||||||||||||||||||
Foreign corporate securities and foreign governments | 43 | 590,944 | (74,151) | — | 516,793 | ||||||||||||||||||||||||
Corporate securities | 2,103 | 21,393,656 | (3,224,609) | (3,214) | 18,165,833 | ||||||||||||||||||||||||
Residential mortgage backed securities | 219 | 1,235,672 | (126,368) | (133) | 1,109,171 | ||||||||||||||||||||||||
Commercial mortgage backed securities | 339 | 3,750,331 | (391,966) | — | 3,358,365 | ||||||||||||||||||||||||
Other asset backed securities | 567 | 4,579,149 | (382,563) | — | 4,196,586 | ||||||||||||||||||||||||
3,812 | 34,980,578 | (4,779,108) | (3,347) | 30,198,123 | |||||||||||||||||||||||||
Coinsurance investments (1) | 698 | 3,085,834 | (504,739) | — | 2,581,095 | ||||||||||||||||||||||||
4,510 | $ | 38,066,412 | $ | (5,283,847) | $ | (3,347) | $ | 32,779,218 |
NAIC Designation | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses (1) | Percent of Total | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
1 | $ | 17,868,963 | 61.6 | % | $ | (2,401,857) | 59.0 | % | ||||||||||||||||||
2 | 10,542,301 | 36.4 | % | (1,552,242) | 38.2 | % | ||||||||||||||||||||
3 | 464,864 | 1.6 | % | (77,008) | 1.9 | % | ||||||||||||||||||||
4 | 116,477 | 0.4 | % | (34,788) | 0.9 | % | ||||||||||||||||||||
5 | 88 | — | % | (23) | — | % | ||||||||||||||||||||
6 | 8,403 | — | % | (1,330) | — | % | ||||||||||||||||||||
29,001,096 | 100.0 | % | (4,067,248) | 100.0 | % | |||||||||||||||||||||
Coinsurance investments (2) | 2,368,802 | (467,166) | ||||||||||||||||||||||||
$ | 31,369,898 | $ | (4,534,414) | |||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
1 | $ | 18,396,691 | 60.9 | % | $ | (2,836,027) | 59.4 | % | ||||||||||||||||||
2 | 11,207,008 | 37.1 | % | (1,825,520) | 38.2 | % | ||||||||||||||||||||
3 | 465,867 | 1.6 | % | (72,976) | 1.5 | % | ||||||||||||||||||||
4 | 89,686 | 0.3 | % | (17,922) | 0.4 | % | ||||||||||||||||||||
5 | 29,075 | 0.1 | % | (25,037) | 0.5 | % | ||||||||||||||||||||
6 | 9,796 | — | % | (1,626) | — | % | ||||||||||||||||||||
30,198,123 | 100.0 | % | (4,779,108) | 100.0 | % | |||||||||||||||||||||
Coinsurance investments (2) | 2,581,095 | (504,739) | ||||||||||||||||||||||||
$ | 32,779,218 | $ | (5,283,847) |
Number of Securities | Amortized Cost, Net of Allowance (1) | Fair Value | Gross
Unrealized Losses, Net of Allowance (1) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||
Less than six months | 299 | $ | 1,520,278 | $ | 1,486,349 | $ | (33,929) | ||||||||||||||||
Six months or more and less than twelve months | 1,656 | 15,068,794 | 13,700,860 | (1,367,934) | |||||||||||||||||||
Twelve months or greater | 1,537 | 15,776,291 | 13,224,055 | (2,552,236) | |||||||||||||||||||
Total investment grade | 3,492 | 32,365,363 | 28,411,264 | (3,954,099) | |||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||
Less than six months | 14 | 46,603 | 39,709 | (6,894) | |||||||||||||||||||
Six months or more and less than twelve months | 26 | 231,025 | 196,185 | (34,840) | |||||||||||||||||||
Twelve months or greater | 56 | 425,353 | 353,938 | (71,415) | |||||||||||||||||||
Total below investment grade | 96 | 702,981 | 589,832 | (113,149) | |||||||||||||||||||
3,588 | 33,068,344 | 29,001,096 | (4,067,248) | ||||||||||||||||||||
Coinsurance investments (2) | 587 | 2,835,968 | 2,368,802 | (467,166) | |||||||||||||||||||
4,175 | $ | 35,904,312 | $ | 31,369,898 | $ | (4,534,414) | |||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||
Less than six months | 984 | $ | 6,296,895 | $ | 5,968,793 | $ | (328,102) | ||||||||||||||||
Six months or more and less than twelve months | 2,308 | 24,207,057 | 20,481,666 | (3,725,391) | |||||||||||||||||||
Twelve months or greater | 427 | 3,761,294 | 3,153,240 | (608,054) | |||||||||||||||||||
Total investment grade | 3,719 | 34,265,246 | 29,603,699 | (4,661,547) | |||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||
Less than six months | 12 | 51,711 | 47,494 | (4,217) | |||||||||||||||||||
Six months or more and less than twelve months | 34 | 319,964 | 265,726 | (54,238) | |||||||||||||||||||
Twelve months or greater | 47 | 340,310 | 281,204 | (59,106) | |||||||||||||||||||
Total below investment grade | 93 | 711,985 | 594,424 | (117,561) | |||||||||||||||||||
3,812 | 34,977,231 | 30,198,123 | (4,779,108) | ||||||||||||||||||||
Coinsurance investments (2) | 698 | 3,085,834 | 2,581,095 | (504,739) | |||||||||||||||||||
4,510 | $ | 38,063,065 | $ | 32,779,218 | $ | (5,283,847) |
Number
of Securities | Amortized Cost, Net of Allowance (1) | Fair Value | Gross Unrealized Losses, Net of Allowance (1) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||
Less than six months | 98 | $ | 1,302,413 | $ | 1,018,998 | $ | (283,415) | ||||||||||||||||
Six months or more and less than twelve months | 183 | 2,498,072 | 1,873,667 | (624,405) | |||||||||||||||||||
Twelve months or greater | 169 | 2,654,555 | 1,877,869 | (776,686) | |||||||||||||||||||
Total investment grade | 450 | 6,455,040 | 4,770,534 | (1,684,506) | |||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||
Less than six months | 14 | 110,262 | 74,073 | (36,189) | |||||||||||||||||||
Six months or more and less than twelve months | 5 | 43,500 | 32,827 | (10,673) | |||||||||||||||||||
Twelve months or greater | 1 | 5,279 | 3,643 | (1,636) | |||||||||||||||||||
Total below investment grade | 20 | 159,041 | 110,543 | (48,498) | |||||||||||||||||||
470 | 6,614,081 | 4,881,077 | (1,733,004) | ||||||||||||||||||||
Coinsurance investments (2) | 311 | 1,191,584 | 839,351 | (352,233) | |||||||||||||||||||
781 | $ | 7,805,665 | $ | 5,720,428 | $ | (2,085,237) | |||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||
Less than six months | 333 | $ | 3,955,378 | $ | 3,062,075 | $ | (893,303) | ||||||||||||||||
Six months or more and less than twelve months | 299 | 4,496,559 | 3,146,868 | (1,349,691) | |||||||||||||||||||
Twelve months or greater | 1 | 40,351 | 26,854 | (13,497) | |||||||||||||||||||
Total investment grade | 633 | 8,492,288 | 6,235,797 | (2,256,491) | |||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||
Less than six months | 8 | 61,481 | 47,057 | (14,424) | |||||||||||||||||||
Six months or more and less than twelve months | 7 | 111,990 | 71,271 | (40,719) | |||||||||||||||||||
Twelve months or greater | — | — | — | — | |||||||||||||||||||
Total below investment grade | 15 | 173,471 | 118,328 | (55,143) | |||||||||||||||||||
648 | 8,665,759 | 6,354,125 | (2,311,634) | ||||||||||||||||||||
Coinsurance investments (2) | 423 | 1,250,509 | 859,395 | (391,114) | |||||||||||||||||||
1,071 | $ | 9,916,268 | $ | 7,213,520 | $ | (2,702,748) |
Available for sale | |||||||||||
Amortized Cost | Fair Value | ||||||||||
(Dollars in thousands) | |||||||||||
March 31, 2023 | |||||||||||
Due in one year or less | $ | 508,728 | $ | 504,810 | |||||||
Due after one year through five years | 3,470,123 | 3,274,615 | |||||||||
Due after five years through ten years | 4,503,556 | 4,020,041 | |||||||||
Due after ten years through twenty years | 6,324,373 | 5,503,912 | |||||||||
Due after twenty years | 8,461,140 | 6,731,780 | |||||||||
23,267,920 | 20,035,158 | ||||||||||
Residential mortgage backed securities | 1,190,235 | 1,080,896 | |||||||||
Commercial mortgage backed securities | 3,738,130 | 3,351,888 | |||||||||
Other asset backed securities | 4,874,105 | 4,533,154 | |||||||||
33,070,390 | 29,001,096 | ||||||||||
Coinsurance investments (1) | 2,835,968 | 2,368,802 | |||||||||
$ | 35,906,358 | $ | 31,369,898 | ||||||||
December 31, 2022 | |||||||||||
Due in one year or less | $ | 567,599 | $ | 563,298 | |||||||
Due after one year through five years | 3,591,040 | 3,377,197 | |||||||||
Due after five years through ten years | 4,844,271 | 4,280,762 | |||||||||
Due after ten years through twenty years | 7,443,657 | 6,377,081 | |||||||||
Due after twenty years | 8,968,858 | 6,935,663 | |||||||||
25,415,425 | 21,534,001 | ||||||||||
Residential mortgage backed securities | 1,235,672 | 1,109,171 | |||||||||
Commercial mortgage backed securities | 3,750,331 | 3,358,365 | |||||||||
Other asset backed securities | 4,579,149 | 4,196,586 | |||||||||
34,980,577 | 30,198,123 | ||||||||||
Coinsurance investments (1) | 3,085,834 | 2,581,095 | |||||||||
$ | 38,066,411 | $ | 32,779,218 |
March 31, 2023 | |||||||||||||||||
Amortized Cost | Carrying Amount/ Fair Value | Percent of Total Carrying Amount | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Europe | $ | 2,152,353 | $ | 2,142,272 | 6.2 | % | |||||||||||
Asia/Pacific | 381,834 | 381,793 | 1.1 | % | |||||||||||||
Latin America | 313,049 | 313,049 | 0.9 | % | |||||||||||||
Non-U.S. North America | 1,135,154 | 1,131,342 | 3.3 | % | |||||||||||||
Australia & New Zealand | 889,577 | 889,283 | 2.6 | % | |||||||||||||
Other | 740,461 | 743,393 | 2.2 | % | |||||||||||||
5,612,428 | 5,601,132 | 16.3 | % | ||||||||||||||
Coinsurance investments (1) | 1,383,922 | 1,265,832 | |||||||||||||||
$ | 6,996,350 | $ | 6,866,964 |
March 31, 2023 | |||||||||||
Amortized Cost | Carrying Amount/ Fair Value | ||||||||||
(Dollars in thousands) | |||||||||||
Europe | $ | 96,444 | $ | 83,807 | |||||||
Asia/Pacific | 36 | 30 | |||||||||
Latin America | 45,554 | 38,377 | |||||||||
Non-U.S. North America | 23,248 | 19,669 | |||||||||
Australia & New Zealand | 258 | 213 | |||||||||
Other | 35,948 | 32,160 | |||||||||
201,488 | 174,256 | ||||||||||
Coinsurance investments (1) | 50,299 | 33,774 | |||||||||
$ | 251,787 | $ | 208,030 |
General Description | Number of Securities | Amortized Cost | Allowance for Credit Losses | Amortized Cost, Net of Allowance | Net Unrealized Gains (Losses), Net of Allowance | Fair Value | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
States, municipalities and territories | 1 | $ | 20,657 | $ | — | $ | 20,657 | $ | (3,409) | $ | 17,248 | |||||||||||||||||||||||||||
Corporate securities - Public securities | 3 | 48,310 | — | 48,310 | (21,420) | 26,890 | ||||||||||||||||||||||||||||||||
Corporate securities - Private placement securities | 1 | 7,658 | (1,914) | 5,744 | — | 5,744 | ||||||||||||||||||||||||||||||||
Residential mortgage backed securities | 31 | 48,492 | (133) | 48,359 | (13,874) | 34,485 | ||||||||||||||||||||||||||||||||
Commercial mortgage backed securities | 11 | 93,472 | — | 93,472 | (10,907) | 82,565 | ||||||||||||||||||||||||||||||||
Other asset backed securities | 1 | 2,284 | — | 2,284 | 100 | 2,384 | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 19 | 134,318 | — | 134,318 | (27,040) | 107,278 | ||||||||||||||||||||||||||||||||
67 | $ | 355,191 | $ | (2,047) | $ | 353,144 | $ | (76,550) | $ | 276,594 |
Current | 30-59
days past due | 60-89 days past due | Over 90 days past due | Total | |||||||||||||||||||||||||
As of March 31, 2023: | (Dollars in thousands) | ||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,563,907 | $ | — | $ | — | $ | — | $ | 3,563,907 | |||||||||||||||||||
Agricultural mortgage loans | 601,924 | — | — | 5,343 | 607,267 | ||||||||||||||||||||||||
Residential mortgage loans | 3,013,733 | 24,577 | — | 35,367 | 3,073,677 | ||||||||||||||||||||||||
Total mortgage loans | $ | 7,179,564 | $ | 24,577 | $ | — | $ | 40,710 | $ | 7,244,851 | |||||||||||||||||||
As of December 31, 2022: | |||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,554,558 | $ | — | $ | — | $ | — | $ | 3,554,558 | |||||||||||||||||||
Agricultural mortgage loans | 562,828 | — | — | 3,135 | 565,963 | ||||||||||||||||||||||||
Residential mortgage loans | 2,751,261 | 62,450 | 16,924 | 34,843 | 2,865,478 | ||||||||||||||||||||||||
Total mortgage loans | $ | 6,868,647 | $ | 62,450 | $ | 16,924 | $ | 37,978 | $ | 6,985,999 |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Private Asset Class | Amount | Percent | Amount | Percent | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||||||
Commercial | $ | 3,351,563 | 6.8 | % | $ | 3,384,240 | 6.8 | % | ||||||||||||||||||
Residential | 3,222,935 | 6.6 | % | 3,002,099 | 6.0 | % | ||||||||||||||||||||
Agricultural | 607,267 | 1.2 | % | 565,963 | 1.2 | % | ||||||||||||||||||||
Total real estate loans | 7,181,765 | 14.6 | % | 6,952,302 | 14.0 | % | ||||||||||||||||||||
Private credit | ||||||||||||||||||||||||||
Middle market | 1,748,582 | 3.5 | % | 1,492,727 | 3.0 | % | ||||||||||||||||||||
Specialty finance | 692,437 | 1.4 | % | 442,555 | 0.9 | % | ||||||||||||||||||||
Infrastructure debt | 626,767 | 1.3 | % | 554,812 | 1.1 | % | ||||||||||||||||||||
Total private credit | 3,067,786 | 6.2 | % | 2,490,094 | 5.0 | % | ||||||||||||||||||||
Equity | ||||||||||||||||||||||||||
Residential real estate | 1,050,328 | 2.1 | % | 961,263 | 1.9 | % | ||||||||||||||||||||
Commercial real estate | 116,335 | 0.2 | % | 116,779 | 0.2 | % | ||||||||||||||||||||
Infrastructure | 189,976 | 0.4 | % | 91,485 | 0.2 | % | ||||||||||||||||||||
Core private equity | 345,499 | 0.7 | % | 363,892 | 0.7 | % | ||||||||||||||||||||
Total equity | 1,702,138 | 3.4 | % | 1,533,419 | 3.0 | % | ||||||||||||||||||||
Total private assets | $ | 11,951,689 | 24.2 | % | $ | 10,975,815 | 22.0 | % |
Three
Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Proceeds received at expiration of options related to such credits | $ | 3,601 | $ | 228,092 | |||||||||||||||||||
Annual index credits to policyholders on their anniversaries | 3,533 | 224,385 |
Period | Total
Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (a) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Program | ||||||||||||||||||||||
(shares) | (dollars) | (shares) | (dollars in thousands) | |||||||||||||||||||||||
January 1, 2023 - January 31, 2023 | — | $ | — | — | $ | 569,018 | ||||||||||||||||||||
February 1, 2023 - February 28, 2023 | 441,625 | $ | 41.12 | 441,625 | $ | 550,858 | ||||||||||||||||||||
March 1, 2023 - March 31, 2023 | 6,826,239 | $ | 34.43 | 6,826,239 | $ | 275,825 | ||||||||||||||||||||
Total | 7,267,864 | 7,267,864 |
Exhibit Number | Description | |||||||
10.1* | ||||||||
10.2* | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following materials from American Equity Investment Life Holding Company's Quarterly Report on Form 10-Q for the period ended March 31, 2023 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Consolidated Financial Statements. | |||||||
104 | The
cover page from American Equity Investment Life Holding Company's Quarterly Report on Form 10-Q for the period ended March 31, 2023 formatted in iXBRL and contained in Exhibit 101. |
Date: | May 10, 2023 | AMERICAN EQUITY INVESTMENT LIFE | |||||||||||||||
HOLDING COMPANY | |||||||||||||||||
By: | /s/ Dewayne Lummus | ||||||||||||||||
Dewayne Lummus | |||||||||||||||||
Senior Vice President and Chief Accounting Officer | |||||||||||||||||
(Principal Accounting Officer and Duly Authorized Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/15/27 | ||||
2/15/27 | ||||
12/31/23 | ||||
Filed on: | 5/10/23 | |||
5/4/23 | ||||
For Period end: | 3/31/23 | |||
3/17/23 | 8-K | |||
3/1/23 | 4 | |||
2/28/23 | 10-K | |||
2/8/23 | ||||
2/1/23 | 4 | |||
1/31/23 | ||||
1/1/23 | ||||
12/31/22 | 10-K, 5, ARS | |||
12/7/22 | 8-K | |||
11/28/22 | ||||
11/11/22 | ||||
10/3/22 | ||||
9/9/22 | ||||
7/6/22 | 8-K | |||
3/31/22 | 10-Q | |||
2/15/22 | 8-K | |||
12/31/21 | 10-K, 5 | |||
11/19/21 | 8-K | |||
7/1/21 | ||||
1/1/21 | ||||
12/1/20 | 3, 8-K | |||
6/10/20 | 424B5, 8-K, FWP | |||
3/1/20 | ||||
11/21/19 | 8-K, CERT | |||
6/16/17 | 8-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/29/24 American Equity Inv Life Hold… Co 10-K/A 12/31/23 14:934K 2/29/24 American Equity Inv Life Hold… Co 10-K 12/31/23 155:26M 10/11/23 Brookfield Asset Management Ltd. 424B3 1:15M Donnelley … Solutions/FA 10/11/23 Brookfield Asset Management Ltd. F-4/A 10:15M Donnelley … Solutions/FA 9/07/23 American Equity Inv Life Hold… Co S-8 9/07/23 5:114K 9/01/23 Brookfield Asset Management Ltd. F-4 62:29M Donnelley … Solutions/FA |