Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 13, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | PRUCO LIFE INSURANCE CO | |
Entity Central Index Key | 777,917 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 250,000 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015 – $6,306,640; 2014 – $5,866,873) | $ 6,456,275 | $ 6,194,564 |
Equity securities, available-for-sale, at fair value (cost: 2015 – $33,888; 2013 – $28,881) | 34,343 | 29,500 |
Trading account assets, at fair value | 61,576 | 49,661 |
Policy loans | 1,137,735 | 1,123,912 |
Short-term investments | 78,974 | 121,272 |
Commercial mortgage and other loans | 1,747,153 | 1,681,553 |
Other long-term investments | 333,346 | 298,143 |
Total investments | 9,849,402 | 9,498,605 |
Cash and cash equivalents | 171,501 | 214,952 |
Deferred policy acquisition costs | 5,142,050 | 5,066,855 |
Accrued investment income | 93,591 | 90,506 |
Reinsurance recoverables | 19,642,472 | 20,594,371 |
Receivables from parent and affiliates | 253,813 | 261,915 |
Deferred sales inducements | 781,045 | 836,791 |
Other assets | 85,881 | 83,417 |
Separate account assets | 111,738,870 | 109,194,192 |
TOTAL ASSETS | 147,758,625 | 145,841,604 |
LIABILITIES | ||
Policyholders’ account balances | 16,291,181 | 15,250,055 |
Future policy benefits and other policyholder liabilities | 12,353,839 | 13,915,330 |
Cash collateral for loaned securities | 109,798 | 65,418 |
Income taxes | 190,519 | 256,168 |
Short-term debt to affiliates | 373,000 | 423,000 |
Long-term debt to affiliates | 1,281,000 | 1,288,000 |
Payables to parent and affiliates | 55,039 | 66,581 |
Other liabilities | 838,506 | 828,875 |
Separate account liabilities | 111,738,870 | 109,194,192 |
TOTAL LIABILITIES | $ 143,231,752 | $ 141,287,619 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
EQUITY | ||
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding) | $ 2,500 | $ 2,500 |
Additional paid-in capital | 779,973 | 792,153 |
Retained earnings | 3,649,300 | 3,580,641 |
Accumulated other comprehensive income | 95,100 | 178,691 |
TOTAL EQUITY | 4,526,873 | 4,553,985 |
TOTAL LIABILITIES AND EQUITY | $ 147,758,625 | $ 145,841,604 |
Unaudited Interim Consolidated3
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Amortized Cost | $ 6,306,640 | $ 5,866,873 |
Amortized Cost | $ 33,888 | $ 28,881 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 10 | $ 10 |
Common Stock, Shares, Authorized | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 250,000 | 250,000 |
Common Stock, Shares, Outstanding | 250,000 | 250,000 |
Unaudited Interim Consolidated4
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Premiums | $ 23,482 | $ 18,007 | $ 39,119 | $ 33,252 |
Policy charges and fee income | 530,033 | 523,196 | 1,070,798 | 1,036,821 |
Net investment income | 101,486 | 103,220 | 204,906 | 201,697 |
Asset administration fees | 102,365 | 93,727 | 201,052 | 183,151 |
Other income | 15,013 | 13,167 | 32,230 | 26,574 |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | (382) | (363) | (415) | (363) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 10 | 236 | 32 | 236 |
Other realized investment gains (losses), net | (170,284) | 31,795 | (111,248) | 117,326 |
Total realized investment gains (losses), net | (170,656) | 31,668 | (111,631) | 117,199 |
TOTAL REVENUES | 601,723 | 782,985 | 1,436,474 | 1,598,694 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 57,266 | 72,131 | 115,667 | 157,166 |
Interest credited to policyholders’ account balances | 48,243 | 83,776 | 165,720 | 163,579 |
Amortization of deferred policy acquisition costs | (13,691) | 84,352 | 289,060 | 146,588 |
General, administrative and other expenses | 273,770 | 243,023 | 532,316 | 485,084 |
TOTAL BENEFITS AND EXPENSES | 365,588 | 483,282 | 1,102,763 | 952,417 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 236,135 | 299,703 | 333,711 | 646,277 |
Income tax expense | 21,706 | 50,634 | 35,052 | 118,038 |
NET INCOME | 214,429 | 249,069 | 298,659 | 528,239 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 182 | (34) | (338) | (36) |
Net unrealized investment gains (losses): | ||||
Unrealized investment gains (losses) for the period | (205,640) | 77,811 | (123,909) | 170,185 |
Reclassification adjustment for (gains) losses included in net income | (1,930) | (4,648) | (4,044) | (5,920) |
Net unrealized investment gains (losses) | (207,570) | 73,163 | (127,953) | 164,265 |
Other comprehensive income (loss), before tax | (207,388) | 73,129 | (128,291) | 164,229 |
Less: Income tax expense (benefit) related to: | ||||
Foreign currency translation adjustments | 64 | (13) | (118) | (13) |
Net unrealized investment gains (losses) | (72,448) | 25,607 | (44,582) | 57,493 |
Total | (72,384) | 25,594 | (44,700) | 57,480 |
Other comprehensive income (loss), net of tax: | (135,004) | 47,535 | (83,591) | 106,749 |
COMPREHENSIVE INCOME (LOSS) | $ 79,425 | $ 296,604 | $ 215,068 | $ 634,988 |
Unaudited Interim Consolidated5
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity |
Balance, beginning at Dec. 31, 2013 | $ 2,500 | $ 804,237 | $ 3,542,838 | $ 56,646 | $ 4,406,221 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to parent | (338,000) | (338,000) | ||||
Contributed (distributed) capital-parent/children asset transfers | 130 | 130 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | $ 528,239 | 528,239 | 528,239 | |||
Other comprehensive income (loss), net of tax | 106,749 | 106,749 | 106,749 | |||
Total comprehensive income (loss) | 634,988 | |||||
Balance, ending at Jun. 30, 2014 | 2,500 | 804,367 | 3,733,077 | 163,395 | 4,703,339 | |
Balance, beginning at Dec. 31, 2014 | 2,500 | 792,153 | 3,580,641 | 178,691 | 4,553,985 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to parent | (230,000) | (230,000) | ||||
Contributed (distributed) capital-parent/children asset transfers | (12,180) | (12,180) | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 298,659 | 298,659 | 298,659 | |||
Other comprehensive income (loss), net of tax | $ (83,591) | (83,591) | (83,591) | |||
Total comprehensive income (loss) | 215,068 | |||||
Balance, ending at Jun. 30, 2015 | $ 2,500 | $ 779,973 | $ 3,649,300 | $ 95,100 | $ 4,526,873 |
Unaudited Interim Consolidated6
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 298,659 | $ 528,239 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Policy charges and fee income | (631) | (64,985) |
Interest credited to policyholders’ account balances | 165,720 | 163,579 |
Realized investment (gains) losses, net | 111,631 | (117,199) |
Amortization and other non-cash items | (36,806) | (33,590) |
Change in: | ||
Future policy benefits and other insurance liabilities | 753,124 | 737,608 |
Reinsurance recoverables | (767,317) | (694,973) |
Accrued investment income | (3,085) | (682) |
Net payable to/receivable from parent and affiliates | (13,058) | (5,096) |
Deferred policy acquisition costs | (7,934) | (155,604) |
Income taxes | (14,390) | 50,967 |
Deferred sales inducements | (3,969) | (5,159) |
Derivatives, net | (65,542) | (5,760) |
Other, net | (24,523) | (33,717) |
Cash flows from operating activities | 391,879 | 363,628 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 431,458 | 471,833 |
Short-term investments | 500,631 | 216,793 |
Policy loans | 60,685 | 55,823 |
Ceded policy loans | (3,639) | (3,157) |
Commercial mortgage and other loans | 49,051 | 53,735 |
Other long-term investments | 6,902 | 3,624 |
Equity securities, available-for-sale | 0 | 5,210 |
Trading account assets | 991 | 1,375 |
Payments for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (852,120) | (665,106) |
Short-term investments | (456,792) | (309,812) |
Policy loans | (52,453) | (56,217) |
Ceded policy loans | 5,868 | 5,048 |
Commercial mortgage and other loans | (114,378) | (118,865) |
Other long-term investments | (21,089) | (19,454) |
Equity securities, available-for-sale | (5,010) | (40,101) |
Trading account assets | (12,001) | (8,800) |
Notes receivable from parent and affiliates, net | 8,470 | (12,232) |
Derivatives, net | (7,777) | (12,028) |
Other, net | 1,164 | 512 |
Cash flows used in investing activities | (460,039) | (431,819) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders’ account deposits | 1,763,866 | 1,401,561 |
Ceded policyholders’ account deposits | (497,677) | (279,695) |
Policyholders’ account withdrawals | (1,006,256) | (843,350) |
Ceded policyholders’ account withdrawals | 26,208 | 17,509 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 44,380 | 9,450 |
Dividend to parent | (230,000) | (338,000) |
Contributed (distributed) capital - parent/child asset transfers | (18,739) | 130 |
Net change in financing arrangements (maturities 90 days or less) | 0 | 57,100 |
Proceeds from the issuance of debt (maturities longer than 90 days) | 72,000 | 0 |
Repayments of debt (maturities longer than 90 days) | (129,000) | (129,000) |
Drafts outstanding | (73) | 10,770 |
Cash flows from (used in) financing activities | 24,709 | (93,525) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (43,451) | (161,716) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 214,952 | 307,243 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 171,501 | $ 145,527 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”) which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life Insurance Company is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors. Pruco Life Insurance Company has three subsidiaries, including one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and two subsidiaries formed in 2009 for the purpose of holding certain commercial loan investments. Pruco Life Insurance Company and its subsidiaries are together referred to as the “Company” and all financial information is presented on a consolidated basis. PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only. Acquisition of The Hartford’s Individual Life Insurance Business On January 2, 2013, Prudential Insurance acquired the individual life insurance business of The Hartford Financial Services Group, Inc. (“The Hartford”) through a reinsurance transaction. Under the agreement, Prudential Insurance paid The Hartford cash consideration of $615 million , primarily in the form of a ceding commission to provide reinsurance for approximately 700,000 life insurance policies with net retained face amount in force of approximately $141 billion . This acquisition increased the Company’s scale in the U.S. individual life insurance market, particularly universal life products, and provides complimentary distribution opportunities through expanded wirehouse and bank distribution channels. In connection with this transaction, Prudential Insurance retroceded to the Company the portion of the assumed business that is classified as guaranteed universal life insurance (“GUL”), with account values of approximately $4 billion as of January 2, 2013. The Company has reinsured more than 79,000 GUL policies with a net retained face amount in force of approximately $30 billion . The Company then retroceded all of the GUL policies to an affiliated captive reinsurance company. Collectively, these transactions do not have a material impact on equity, as determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), or the statutory capital and surplus of the Company. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS This section supplements, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Adoption of New Accounting Pronouncements In January 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance became effective for annual periods and interim reporting periods within those annual periods that began after December 15, 2014. The Company did not elect the proportional amortization method under this guidance. In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in-substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014 and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In June 2014, the FASB issued updated guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings and eliminates existing guidance for repurchase financings. The guidance also requires new disclosures for certain transactions accounted for as secured borrowings and for transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets. Accounting changes and new disclosures for transfers accounted for as sales under the new guidance were effective for the first interim or annual period beginning after December 15, 2014 and did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. Disclosures for certain transactions accounted for as secured borrowings were effective for interim periods beginning after March 15, 2015 and are included in Note 3 . In August 2014, the FASB issued guidance requiring that mortgage loans be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014 and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017 and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In February 2015, the FASB issued updated guidance that changes the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI (3) (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 87,356 $ 7,475 $ 281 $ 94,550 $ — Obligations of U.S. states and their political subdivisions 514,705 9,079 8,318 515,466 — Foreign government bonds 68,600 3,359 1,570 70,389 — Public utilities 719,827 36,525 15,630 740,722 — Redeemable preferred stock 5,283 1,627 145 6,765 — All other corporate securities 3,879,079 158,995 70,141 3,967,933 (245 ) Asset-backed securities (1) 479,954 8,082 689 487,347 (3,445 ) Commercial mortgage-backed securities 431,935 13,615 1,751 443,799 — Residential mortgage-backed securities (2) 119,901 9,480 77 129,304 (769 ) Total fixed maturities, available-for-sale $ 6,306,640 $ 248,237 $ 98,602 $ 6,456,275 $ (4,459 ) Equity securities, available-for-sale Common Stocks: Public utilities $ 66 $ 10 $ — $ 76 Industrial, miscellaneous & other 2 224 — 226 Mutual funds 33,480 764 841 33,403 Non-redeemable preferred stocks 340 298 — 638 Total equity securities, available-for-sale $ 33,888 $ 1,296 $ 841 $ 34,343 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income ("AOCI"), which were not included in earnings. Amount excludes $9.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI (3) (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 83,372 $ 8,711 $ 1 $ 92,082 $ — Obligations of U.S. states and their political subdivisions 310,518 15,323 187 325,654 — Foreign government bonds 35,228 3,284 14 38,498 — Public utilities 683,652 62,060 3,288 742,424 — Redeemable preferred stock 3,185 763 137 3,811 — All other corporate securities 3,743,804 227,939 20,820 3,950,923 (247 ) Asset-backed securities (1) 395,180 8,281 1,210 402,251 (3,531 ) Commercial mortgage-backed securities 482,769 17,978 1,868 498,879 — Residential mortgage-backed securities (2) 129,165 10,902 25 140,042 (836 ) Total fixed maturities, available-for-sale $ 5,866,873 $ 355,241 $ 27,550 $ 6,194,564 $ (4,614 ) Equity securities, available-for-sale Common Stocks: Public utilities $ 66 $ 23 $ — $ 89 Industrial, miscellaneous & other 5 173 — 178 Mutual funds 28,470 468 295 28,643 Non-redeemable preferred stocks 340 250 — 590 Total equity securities, available-for-sale $ 28,881 $ 914 $ 295 $ 29,500 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $10 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2015 , are as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 317,118 $ 323,093 Due after one year through five years 1,112,526 1,177,472 Due after five years through ten years 1,250,660 1,276,338 Due after ten years 2,594,546 2,618,922 Asset-backed securities 479,954 487,347 Commercial mortgage-backed securities 431,935 443,799 Residential mortgage-backed securities 119,901 129,304 Total $ 6,306,640 $ 6,456,275 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities, available-for-sale Proceeds from sales $ 46,614 $ 78,591 $ 134,934 $ 118,477 Proceeds from maturities/repayments 150,345 165,763 302,168 347,782 Gross investment gains from sales, prepayments and maturities 2,546 5,147 5,063 6,826 Gross investment losses from sales and maturities (242 ) (517 ) (633 ) (924 ) Equity securities, available-for-sale Proceeds from sales $ — $ 5,210 $ — $ 5,210 Proceeds from maturities/repayments — — — — Gross investment gains from sales — 145 — 145 Gross investment losses from sales — — — — Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings (1) $ (372 ) $ (127 ) $ (384 ) $ (127 ) Writedowns for impairments on equity securities (2 ) — (2 ) — (1) Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. As discussed in Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , a portion of certain OTTI losses on fixed maturity securities is recognized in “Other comprehensive income (loss)” (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following tables set forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts. Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 (in thousands) Balance, beginning of period $ 8,628 $ 8,729 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (69 ) (133 ) Credit loss impairment recognized in the current period on securities not previously impaired — — Additional credit loss impairments recognized in the current period on securities previously impaired 15 27 Increases due to the passage of time on previously recorded credit losses 40 77 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (58 ) (144 ) Balance, end of period $ 8,556 $ 8,556 Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (in thousands) Balance, beginning of period $ 10,173 $ 14,661 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,449 ) (5,918 ) Credit loss impairment recognized in the current period on securities not previously impaired — — Additional credit loss impairments recognized in the current period on securities previously impaired — — Increases due to the passage of time on previously recorded credit losses 101 202 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (278 ) (398 ) Balance, end of period $ 8,547 $ 8,547 Trading Account Assets The following table sets forth the composition of “Trading account assets” as of the dates indicated: June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Fixed maturities $ 43,527 $ 43,207 $ 43,490 $ 44,121 Equity securities 14,761 18,369 3,447 5,540 Total trading account assets $ 58,288 $ 61,576 $ 46,937 $ 49,661 The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Other income” was $0.2 million and $0.0 million for the three months ended June 30, 2015 and 2014 , respectively, and $0.9 million and $0.0 million during the six months ended June 30, 2015 and 2014 , respectively. Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: June 30, 2015 December 31, 2014 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Retail $ 449,519 25.8 % $ 439,679 26.2 % Apartments/Multi-Family 421,801 24.2 401,568 23.9 Industrial 293,672 16.9 286,104 17.1 Office 281,870 16.2 244,072 14.6 Other 93,099 5.3 99,083 5.9 Hospitality 90,989 5.2 92,126 5.5 Total commercial mortgage loans 1,630,950 93.6 1,562,632 93.2 Agricultural property loans 111,668 6.4 114,665 6.8 Total commercial mortgage and agricultural property loans by property type 1,742,618 100.0 % 1,677,297 100.0 % Valuation allowance (3,875 ) (4,154 ) Total net commercial mortgage and agricultural property loans by property type 1,738,743 1,673,143 Other Loans Uncollateralized loans 8,410 8,410 Valuation allowance — — Total other loans 8,410 8,410 Total commercial mortgage and other loans $ 1,747,153 $ 1,681,553 The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States with the largest concentrations in California ( 22% ), Texas ( 11% ), and New Jersey ( 10% ) at June 30, 2015 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: June 30, 2015 December 31, 2014 (in thousands) Allowance for credit losses, beginning of year $ 4,154 $ 8,904 Addition to (release of) allowance for losses (279 ) (1,832 ) Charge-offs, net of recoveries — (2,918 ) Total ending balance (1) $ 3,875 $ 4,154 (1) Agricultural loans represent $0.1 million of the ending allowance as of both June 30, 2015 and December 31, 2014 . The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: June 30, 2015 December 31, 2014 (in thousands) Allowance for Credit Losses: Individually evaluated for impairment (1) $ 761 $ 940 Collectively evaluated for impairment (2) 3,114 3,214 Total ending balance $ 3,875 $ 4,154 Recorded Investment: (3) Gross of reserves: individually evaluated for impairment (1) $ 22,672 $ 15,875 Gross of reserves: collectively evaluated for impairment (2) 1,728,356 1,669,832 Total ending balance, gross of reserves $ 1,751,028 $ 1,685,707 (1) There were no agricultural or uncollateralized loans individually evaluated for impairments as of both June 30, 2015 and December 31, 2014 . (2) Agricultural loans collectively evaluated for impairment had a recorded investment of $112 million and $115 million at June 30, 2015 and December 31, 2014 , respectively, and a related allowance of $0.1 million as of both June 30, 2015 and December 31, 2014 . Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both June 30, 2015 and December 31, 2014 and no related allowance for both periods. (3) Recorded investment reflects the balance sheet carrying value gross of related allowance. Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses, as of June 30, 2015 , had a recorded investment and unpaid principal balance of $22.7 million and related allowance of $0.8 million primarily related to office property types. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses, as of December 31, 2014 , had a recorded investment and unpaid principal balance of $15.9 million and related allowance of $0.9 million primarily related to office property types. As of both June 30, 2015 and December 31, 2014 , the Company held no impaired agricultural or uncollateralized loans. Net investment income recognized on impaired commercial mortgage loans totaled $0.4 million as of June 30, 2015 and $0.8 million as of December 31, 2014 . Impaired commercial mortgage and other loans with no allowance for losses are loans in which the fair value of the collateral or the net present value of the loans’ expected future cash flows equals or exceeds the recorded investment. See Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , for information regarding the Company’s accounting policies for non-performing loans. The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the dates indicated: Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio - June 30, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 1,007,922 $ 16,437 $ 16,637 $ 1,040,996 60%-69.99% 412,585 28,865 4,097 445,547 70%-79.99% 214,071 18,096 — 232,167 Greater than 80% 2,965 15,875 5,068 23,908 Total commercial mortgage and agricultural property loans $ 1,637,543 $ 79,273 $ 25,802 $ 1,742,618 Debt Service Coverage Ratio - December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 997,610 $ 24,491 $ 9,393 $ 1,031,494 60%-69.99% 372,958 15,741 13,981 402,680 70%-79.99% 177,956 31,463 3,493 212,912 Greater than 80% 2,991 22,068 5,152 30,211 Total commercial mortgage and agricultural property loans $ 1,551,515 $ 93,763 $ 32,019 $ 1,677,297 As of June 30, 2015 and December 31, 2014 , $1.8 billion and $1.7 billion , respectively, of commercial mortgage and other loans were in current status, and no loans were classified as past due. The Company defines current in its aging of past due commercial mortgage and other loans as less than 30 days past due. As of both June 30, 2015 , and December 31, 2014 , $15.9 million of commercial mortgage and other loans were in nonaccrual status based upon the recorded investment gross of allowance for credit losses. Nonaccrual loans are those on which the accrual of interest has been suspended after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability and loans for which a loan specific reserve has been established. See Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 for further discussion regarding nonaccrual status loans. For the three and six months ended June 30, 2015 and 2014 , there were no commercial mortgage and other loans acquired, other than those through direct origination, nor were there any commercial mortgage and other loans sold. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both June 30, 2015 and December 31, 2014 , the Company had no significant commitments to fund to borrowers that have been involved in a troubled debt restructuring. During the three and six months ended June 30, 2015 and 2014 , there were no new troubled debt restructurings related to commercial mortgage and other loans, and no payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the 12 months preceding each respective period. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 . Net Investment Income Net investment income for the three and six months ended June 30, 2015 and 2014 , was from the following sources: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 66,546 $ 66,293 $ 130,484 $ 132,028 Equity securities, available-for-sale — 1 1 1 Trading account assets 735 201 1,247 397 Commercial mortgage and other loans 21,639 20,891 42,536 40,721 Policy loans 15,371 15,072 30,486 29,798 Short-term investments and cash equivalents 184 103 459 260 Other long-term investments 2,684 5,552 10,754 8,019 Gross investment income 107,159 108,113 215,967 211,224 Less: investment expenses (5,673 ) (4,893 ) (11,061 ) (9,527 ) Net investment income $ 101,486 $ 103,220 $ 204,906 $ 201,697 The Company had $0.7 million and $0.5 million of investments in low-income housing tax credit limited partnerships and has committed to fund less than $0.1 million and $0.2 million as of June 30, 2015 and December 31, 2014 . Generally, the Company uses the equity method of accounting for these investments. The Company had no equity method losses and utilized less than $0.1 million of tax credits associated with these investments for the three months ended June 30, 2015 and 2014 , respectively. The Company had no equity method losses and utilized $0.2 million of tax credits associated with these investments for the six months ended June 30, 2015 and 2014 , respectively. There were no impairment losses from forfeiture or ineligibility of tax credits. Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the three and six months ended June 30, 2015 and 2014 , were from the following sources: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities $ 1,932 $ 4,503 $ 4,046 $ 5,775 Equity securities (2 ) 145 (2 ) 145 Commercial mortgage and other loans 128 (431 ) 279 (304 ) Joint ventures and limited partnerships 128 — 165 — Derivatives (172,883 ) 27,443 (116,162 ) 111,565 Other 41 8 43 18 Realized investment gains (losses), net $ (170,656 ) $ 31,668 $ (111,631 ) $ 117,199 Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the six months ended June 30, 2015 and 2014 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2014 $ (67 ) $ 178,758 $ 178,691 Change in other comprehensive income (loss) before reclassifications (338 ) (123,909 ) (124,247 ) Amounts reclassified from AOCI — (4,044 ) (4,044 ) Income tax benefit (expense) 118 44,582 44,700 Balance, June 30, 2015 $ (287 ) $ 95,387 $ 95,100 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2013 $ 403 $ 56,243 $ 56,646 Change in other comprehensive income (loss) before reclassifications (36 ) 170,185 170,149 Amounts reclassified from AOCI — (5,920 ) (5,920 ) Income tax benefit (expense) 13 (57,493 ) (57,480 ) Balance, June 30, 2014 $ 380 $ 163,015 $ 163,395 (1) Includes cash flow hedges of $24 million and $12 million as of June 30, 2015 and December 31, 2014 , respectively, and $(7) million and $(5) million as of June 30, 2014 and December 31, 2013 , respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate (3) $ (523 ) $ 1,278 Net unrealized investment gains (losses) on available-for-sale securities (4) 2,453 2,766 Total net unrealized investment gains (losses) 1,930 4,044 Total reclassifications for the period $ 1,930 $ 4,044 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 5 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ account balances. Net Unrealized Investment Gains (Losses) Net unrealized investment gains and losses on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows: Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders’ Account Balances (2) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2014 $ 5,333 $ (2,538 ) $ 1,228 $ (1,440 ) $ 2,583 Net investment gains (losses) on investments arising during the period 83 — — (29 ) 54 Reclassification adjustment for (gains) losses included in net income (150 ) — — 52 (98 ) Reclassification adjustment for OTTI losses excluded from net income (1) 7 — — (2 ) 5 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs — 539 — (189 ) 350 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances — — (174 ) 61 (113 ) Balance, June 30, 2015 $ 5,273 $ (1,999 ) $ 1,054 $ (1,547 ) $ 2,781 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Balances are net of reinsurance. All Other Net Unrealized Investment Gains and Losses in AOCI Net Unrealized Gains (Losses) on Investments (2) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders’ Account Balances (3) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2014 $ 344,577 $ (112,829 ) $ 39,122 $ (94,695 ) $ 176,175 Net investment gains (losses) on investments arising during the period (163,171 ) — — 56,909 (106,262 ) Reclassification adjustment for (gains) losses included in net income (3,894 ) — — 1,363 (2,531 ) Reclassification adjustment for OTTI losses excluded from net income (1) (7 ) — — 2 (5 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs — 68,898 — (24,114 ) 44,784 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances — — (30,084 ) 10,529 (19,555 ) Balance, June 30, 2015 $ 177,505 $ (43,931 ) $ 9,038 $ (50,006 ) $ 92,606 (1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Includes cash flow hedges. See Note 5 for information on cash flow hedges. (3) Balances are net of reinsurance. Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: June 30, 2015 December 31, 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 5,273 $ 5,333 Fixed maturity securities, available-for-sale - all other 144,362 322,358 Equity securities, available-for-sale 455 619 Derivatives designated as cash flow hedges (1) 24,486 11,585 Other investments 8,202 10,015 Net unrealized gains (losses) on investments $ 182,778 $ 349,910 (1) See Note 5 for more information on cash flow hedges. Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated: June 30, 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 6,557 $ 281 $ — $ — $ 6,557 $ 281 Obligations of U.S. states and their political subdivisions 320,836 8,318 — — 320,836 8,318 Foreign government bonds 41,118 1,570 — — 41,118 1,570 Public utilities 240,614 13,963 11,784 1,667 252,398 15,630 All other corporate securities 1,220,185 62,518 75,819 7,768 1,296,004 70,286 Asset-backed securities 204,321 415 35,726 274 240,047 689 Commercial mortgage-backed securities 112,489 1,671 4,440 80 116,929 1,751 Residential mortgage-backed securities 25,383 68 1,745 9 27,128 77 Total $ 2,171,503 $ 88,804 $ 129,514 $ 9,798 $ 2,301,017 $ 98,602 Equity securities, available-for-sale $ 17,194 $ 841 $ — $ — $ 17,194 $ 841 December 31, 2014 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 994 $ 1 $ — $ — $ 994 $ 1 Obligations of U.S. states and their political subdivisions 9,852 125 2,886 62 12,738 187 Foreign government bonds 2,246 14 — — 2,246 14 Public utilities 30,974 1,618 45,756 1,670 76,730 3,288 All other corporate securities 356,348 13,194 260,985 7,763 617,333 20,957 Asset-backed securities 209,774 737 54,711 473 264,485 1,210 Commercial mortgage-backed securities 15,824 155 87,606 1,713 103,430 1,868 Residential mortgage-backed securities 776 11 3,878 14 4,654 25 Total $ 626,788 $ 15,855 $ 455,822 $ 11,695 $ 1,082,610 $ 27,550 Equity securities, available-for-sale $ 14,706 $ 295 $ — $ — $ 14,706 $ 295 The gross unrealized losses on fixed maturity securities at June 30, 2015 and December 31, 2014 , were composed of $90.7 million and $21.3 million related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $7.9 million and $6.3 million related to other than high or highest quality securities based on NAIC or equivalent rating, respectively. At June 30, 2015 , the $10 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer cyclical, utility, consumer noncyclical and basic industry sectors of the Company's corporate securities. At December 31, 2014 , the $12 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical, consumer cyclical and utility sectors of the Company's corporate securities and commercial mortgage-backed securities. In accordance with its policy described in Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , the Company concluded that an adjustment to earnings for other-than-temporary impairments for these securities was not warranted as of June 30, 2015 or December 31, 2014 . These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to general credit spread widening and foreign currency exchange rate movements. As of June 30, 2015 , the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of its remaining amortized cost basis. As of both June 30, 2015 and December 31, 2014 , none of the gross unrealized losses related to equity securities represented declines in value of greater than 20%. In accordance with our policy described in Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , the Company concluded that an adjustment for other-than-temporary impairments for these equity securities was not warranted as of June 30, 2015 or December 31, 2014 . Securities Lending and Repurchase Agreements In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of June 30, 2015 , the Company had $110 million of securities lending transactions recorded as "Cash collateral loaned for securities," comprised of $103 million in corporate securities and $7 million in foreign government bonds. The remaining contractual maturity of all securities lending transactions is overnight and continuous. As of June 30, 2015 , the Company had no repurchase transactions. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents, short-term investments and equity securities that trade on an active exchange market. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not actively trade and are priced based on a net asset value ("NAV")), certain short-term investments and certain cash equivalents, and certain over-the-counter ("OTC") derivatives. Level 3 - Fair value is based on at least one or more significant unobservable inputs for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, certain consolidated real estate funds for which the Company is the general partner and embedded derivatives resulting from reinsurance or certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level - The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2015 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ — $ 94,550 $ — $ — $ 94,550 Obligations of U.S. states and their political subdivisions — 515,466 — — 515,466 Foreign government bonds — 70,389 — — 70,389 Corporate securities — 4,634,938 80,482 — 4,715,420 Asset-backed securities — 315,147 172,200 — 487,347 Commercial mortgage-backed securities — 443,799 — — 443,799 Residential mortgage-backed securities — 129,304 — — 129,304 Sub-total — 6,203,593 252,682 — 6,456,275 Trading account assets: Corporate securities — 41,213 — — 41,213 Asset-backed securities — 1,994 — — 1,994 Equity securities — — 18,369 — 18,369 Sub-total — 43,207 18,369 — 61,576 Equity securities, available-for-sale 86 33,404 853 — 34,343 Short-term investments 57,912 21,062 — — 78,974 Cash equivalents — 17,000 — — 17,000 Other long-term investments — 225,774 2,327 (177,054 ) 51,047 Reinsurance recoverables — — 3,023,119 — 3,023,119 Receivables from parent and affiliates 171,153 2,550 — 173,703 Sub-total excluding separate account assets 57,998 6,715,193 3,299,900 (177,054 ) 9,896,037 Separate account assets (2) — 111,401,464 337,406 — 111,738,870 Total assets $ 57,998 $ 118,116,657 $ 3,637,306 $ (177,054 ) $ 121,634,907 Future policy benefits (3) $ — $ — $ 3,117,171 $ — $ 3,117,171 Payables to parent and affiliates 71,526 (71,526 ) — Total liabilities $ — $ 71,526 $ 3,117,171 $ (71,526 ) $ 3,117,171 As of December 31, 2014 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ — $ 92,082 $ — $ — $ 92,082 Obligations of U.S. states and their political subdivisions — 325,654 — — 325,654 Foreign government bonds — 38,498 — — 38,498 Corporate securities — 4,612,357 84,801 — 4,697,158 Asset-backed securities — 302,034 100,217 — 402,251 Commercial mortgage-backed securities — 498,879 — — 498,879 Residential mortgage-backed securities — 140,042 — — 140,042 Sub-total — 6,009,546 185,018 — 6,194,564 Trading account assets: Corporate securities — 42,131 — — 42,131 Asset-backed securities — 1,990 — — 1,990 Equity securities — — 5,540 — 5,540 Sub-total — 44,121 5,540 — 49,661 Equity securities, available-for-sale 107 28,643 750 — 29,500 Short-term investments 6,997 114,275 — — 121,272 Cash equivalents 41,584 26,259 — — 67,843 Other long-term investments — 242,523 2,115 (215,066 ) 29,572 Reinsurance recoverables — — 4,897,545 — 4,897,545 Receivables from parent and affiliates — 158,469 19,203 — 177,672 Sub-total excluding separate account assets 48,688 6,623,836 5,110,171 (215,066 ) 11,567,629 Separate account assets (2) — 108,891,268 302,924 — 109,194,192 Total assets $ 48,688 $ 115,515,104 $ 5,413,095 $ (215,066 ) $ 120,761,821 Future policy benefits (3) $ — $ — $ 4,993,611 $ — $ 4,993,611 Payables to parent and affiliates — 58,687 — (58,687 ) — Total liabilities $ — $ 58,687 $ 4,993,611 $ (58,687 ) $ 4,993,611 (1) “Netting” amounts represent cash collateral of $106 million and $156 million as of June 30, 2015 and December 31, 2014 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (3) As of June 30, 2015 , the net embedded derivative liability position of $3,117 million includes $712 million of embedded derivatives in an asset position and $3,829 million of embedded derivatives in a liability position. As of December 31, 2014 , the net embedded derivative liability position of $4,994 million includes $577 million of embedded derivatives in an asset position and $5,571 million of embedded derivatives in a liability position. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities - The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of June 30, 2015 and December 31, 2014 , overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing. The fair value of private fixed maturities, which are comprised of investments in private placement securities, originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly traded or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Trading Account Assets - Trading account assets consist primarily of corporate securities, asset-backed securities and perpetual preferred stock whose fair values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and below under “Equity Securities”. Equity Securities - Equity securities consist principally of investments in common and preferred stock of publicly traded companies, perpetual preferred stock, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. The fair values of perpetual preferred stock are based on inputs obtained from independent pricing services that are primarily based on indicative broker quotes. As a result, the fair values of perpetual preferred stock are classified as Level 3. Derivative Instruments - Derivatives are recorded at fair value either as assets, within “Other long-term investments”, or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, non-performance risk (“NPR”), liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate, cross currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. To reflect the market’s perception of its own and the counterparty’s NPR, the Company incorporates additional spreads over London Interbank Offered Rate ("LIBOR") into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. As of June 30, 2015 and December 31, 2014 , there were $796 million and $565 million , respectively, internally valued derivatives with the fair value classified within Level 3, and all other derivatives were classified within Level 2. See Note 5 for more details on the fair value of derivative instruments by primary underlying. Cash Equivalents and Short-Term Investments - Cash equivalents and short-term investments include money market instruments, and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and, these investments have primarily been classified within Level 2. Separate Account Assets - Separate account assets include fixed maturity securities, treasuries, equity securities, mutual funds, and real estate investments for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities”, “Equity Securities” and “Other Long-Term Investments”. Receivables from Parent and Affiliates - Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity whose fair values are determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. Reinsurance Recoverables - Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance Recoverables” or “Other Liabilities” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those described below in “Future Policy Benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantee. The Company also has an agreement with Universal Prudential Arizona Reinsurance Company (“UPARC”), an affiliated captive reinsurance company, to reinsure risks associated with the no-lapse guarantee provision available on a portion of certain universal life products (See Note 7 ). Under this agreement, the Company pays a premium to UPARC to reinsure the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision. Reinsurance of this risk is accounted for as an embedded derivative which is included in “Reinsurance recoverables”. The fair value of this embedded derivative is the present value of expected reimbursement from UPARC for cost of insurance charges the Company is unable to collect from policyholders, less the present value of reinsurance premiums that is attributable to the embedded derivative feature. This methodology could result in either an asset or liability, given changes in capital market conditions and various policyholder behavior assumptions. Significant inputs to the valuation model for this embedded derivative include capital market assumptions, such as interest rates, estimated NPR of the counterparty, and various assumptions that are actuarially determined, including lapse rates, premium payment patterns and mortality rates. Future Policy Benefits - The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts, including guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to contractholders less the present value of assessed benefit fees attributable to the optional living benefit feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior such as lapse rates, benefit utilization rates, withdrawal rates and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual contractholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the contractholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Transfers between Levels 1 and 2 - Overall, transfers between levels are made to reflect changes in observability of inputs and market activity. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. During the three and six months ended June 30, 2015, there were no transfers between Levels 1 and 2. During the three months ended June 30, 2014 , there were no transfers between Level 1 and Level 2. During the six months ended June 30, 2014, $1.9 million was transferred from Level 1 to Level 2. Level 3 Assets and Liabilities by Price Source - The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of June 30, 2015 Internal (1) External (2) Total (in thousands) Corporate securities $ 24,797 $ 55,685 $ 80,482 Asset-backed securities 221 171,979 172,200 Equity securities 853 18,369 19,222 Other long-term investments 796 1,531 2,327 Reinsurance recoverables 3,023,119 — 3,023,119 Receivables from parent and affiliates — 2,550 2,550 Subtotal excluding separate account assets 3,049,786 250,114 3,299,900 Separate account assets 84,891 252,515 337,406 Total assets $ 3,134,677 $ 502,629 $ 3,637,306 Future policy benefits $ 3,117,171 $ — $ 3,117,171 Total liabilities $ 3,117,171 $ — $ 3,117,171 As of December 31, 2014 Internal (1) External (2) Total (in thousands) Corporate securities $ 23,712 $ 61,089 $ 84,801 Asset-backed securities 264 99,953 100,217 Equity securities 750 5,540 6,290 Other long-term investments 565 1,550 2,115 Reinsurance recoverables 4,897,545 — 4,897,545 Receivables from parent and affiliates — 19,203 19,203 Subtotal excluding separate account assets 4,922,836 187,335 5,110,171 Separate account assets 84,111 218,813 302,924 Total assets $ 5,006,947 $ 406,148 $ 5,413,095 Future policy benefits $ 4,993,611 $ — $ 4,993,611 Total liabilities $ 4,993,611 $ — $ 4,993,611 (1) Represents valuations which could incorporate internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities - The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets). As of June 30, 2015 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 24,797 Discounted cash flow Discount rate 10.12% 15.05% 10.92% Decrease Market comparables EBITDA multiples (2) 5 X 6.5 X 6.4 X Increase Reinsurance recoverables - Living Benefits $ 2,778,497 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 244,622 Discounted cash flow Lapse rate (3) 0 % 12 % Decrease NPR spread (4) 0 % 1.68 % Decrease Mortality rate (5) 0 % 20 % Decrease Premium payment (6) 1 X 3.75 X Decrease Liabilities: Future policy benefits (7) $ 3,117,171 Discounted cash flow Lapse rate (8) 0 % 14 % Decrease NPR spread (4) 0 % 1.68 % Decrease Utilization rate (9) 56 % 96 % Increase Withdrawal rate (10) 74 % 100 % Increase Mortality rate (11) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase As of December 31, 2014 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 23,712 Discounted cash flow Discount rate 10.00 % 11.75 % 10.52 % Decrease Market comparables EBITDA multiples (2) 6.1 X 6.1 X 6.1 X Increase Reinsurance recoverables - Living Benefits $ 4,521,928 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 375,617 Discounted cash flow Lapse rate (3) 0 % 15 % Decrease NPR spread (4) 0 % 1.30 % Decrease Mortality rate (5) 0 % 18 % Decrease Premium payment (6) 1 X 3.75 X Decrease Liabilities: Future policy benefits (7) $ 4,993,611 Discounted cash flow Lapse rate (8) 0 % 14 % Decrease NPR spread (4) 0 % 1.30 % Decrease Utilization rate (9) 63 % 96 % Increase Withdrawal rate (10) 74 % 100 % Increase Mortality rate (11) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) EBITDA multiples represent multiples of earnings before interest, taxes, depreciation and amortization, and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. (3) For universal life, lapse rates vary based on funding level and other factors. Rates are set to zero when the no lapse guarantee is fully funded and the cash value is zero. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. (5) Universal life mortality rates are adjusted based on underwriting information. A mortality improvement assumption is also incorporated into the projection. (6) For universal life, premium payment assumptions vary by funding level. Some policies are assumed to pay the minimum premium required to maintain the no lapse guarantee. Other policies are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as “X”). Policyholders are assumed to stop premium payments once the no lapse guarantee is fully funded. (7) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (8) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (9) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (10) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder age, tax status and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%. (11) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. Interrelationships Between Unobservable Inputs - In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities - The rate used to discount future cash flows reflects current risk free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. Future Policy Benefits - The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Separate Account Assets - In addition to the significant internally-priced Level 3 assets and liabilities presented and described above, the Company also has internally-priced separate account assets reported within Level 3. Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company’s Unaudited Interim Consolidated Statements of Financ |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. Equity Contracts Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. Foreign Exchange Contracts Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. These earnings hedges do not qualify for hedge accounting. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty for payments made in the same currency at each due date. Credit Contracts Credit derivatives are used by the Company to enhance the return on the Company’s investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With credit derivatives the Company can sell credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. With credit default derivatives, this premium or credit spread generally corresponds to the difference between the yield on the referenced name’s public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name, as defined by the agreement, then the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the referenced defaulted security or similar security or pay the referenced amount less the auction recovery rate. See credit derivatives section below for discussion of guarantees related to credit derivatives written. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company sells variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. The Company has reinsurance agreements to transfer the risk related to certain of these benefit features to an affiliate, Pruco Reinsurance, Ltd. (“Pruco Re”). Some of the Company’s universal life products contain a no-lapse guarantee provision that is reinsured with an affiliate, UPARC. The reinsurance agreement contains an embedded derivative related to the interest rate risk of the reinsurance contract. The embedded derivatives are carried at fair value. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models as described in Note 4 to the Unaudited Interim Consolidated Financial Statements . The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty, and non-performance risk. June 30, 2015 December 31, 2014 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps 358,065 28,365 (3,829 ) 291,100 14,733 (3,008 ) Total Qualifying Hedges 358,065 28,365 (3,829 ) 291,100 14,733 (3,008 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps 3,184,400 147,160 (49,507 ) 3,184,400 192,181 (20,574 ) Foreign Currency Foreign Currency Forwards 22,919 5 (129 ) 1,025 40 — Credit Credit Default Swaps 7,275 112 (417 ) 12,275 150 (513 ) Currency/Interest Rate Foreign Currency Swaps 155,246 10,847 (1,074 ) 101,653 6,677 (712 ) Equity Total Return Swaps 567,668 9,067 — 577,054 2,405 (19,670 ) Equity Options 53,213,970 31,014 (16,570 ) 39,735,182 26,932 (14,210 ) Total Non-Qualifying Hedges 57,151,478 198,205 (67,697 ) 43,611,589 228,385 (55,679 ) Total Derivatives (1) 57,509,543 226,570 (71,526 ) 43,902,689 243,118 (58,687 ) (1) Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $3,117 million and $4,994 million as of June 30, 2015 and December 31, 2014 , respectively, included in “Future policy benefits.” The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re was an asset of $2,778 million and $4,522 million as of June 30, 2015 and December 31, 2014 , included in “Reinsurance recoverables.” The fair value of the embedded derivative related to the no-lapse guarantee with UPARC was an asset of $245 million and $376 million as of June 30, 2015 and December 31, 2014 , respectively, included in "Reinsurance recoverables." See Note 7 for additional information on the reinsurance agreement. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (including bifurcated embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 225,738 $ (177,054 ) $ 48,684 $ (9,661 ) $ 39,023 Securities purchased under agreement to resell 103,223 — 103,223 (103,223 ) — Total Assets $ 328,961 $ (177,054 ) $ 151,907 $ (112,884 ) $ 39,023 Offsetting of Financial Liabilities: Derivatives (1) $ 71,526 $ (71,526 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 71,526 $ (71,526 ) $ — $ — $ — December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 242,523 $ (215,066 ) $ 27,457 $ (7,194 ) $ 20,263 Securities purchased under agreement to resell 93,633 — 93,633 (93,633 ) — Total Assets $ 336,156 $ (215,066 ) $ 121,090 $ (100,827 ) $ 20,263 Offsetting of Financial Liabilities: Derivatives (1) $ 58,687 $ (58,687 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 58,687 $ (58,687 ) $ — $ — $ — (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended June 30, 2015 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 711 $ (1,347 ) $ (11,795 ) Total cash flow hedges — 711 (1,347 ) (11,795 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (164,405 ) — — — Currency (84 ) — — — Currency/Interest Rate (3,715 ) — (37 ) — Credit (88 ) — — — Equity (5,845 ) — — — Embedded Derivatives 1,254 — — — Total non-qualifying hedges (172,883 ) — (37 ) — Total $ (172,883 ) $ 711 $ (1,384 ) $ (11,795 ) Six Months Ended June 30, 2015 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 1,248 $ (83 ) $ 12,901 Total cash flow hedges — 1,248 (83 ) 12,901 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (49,273 ) — — — Currency 52 — — — Currency/Interest Rate 4,551 — 98 — Credit (163 ) — — — Equity (21,170 ) — — — Embedded Derivatives (50,159 ) — — — Total non-qualifying hedges (116,162 ) — 98 — Total $ (116,162 ) $ 1,248 $ 15 $ 12,901 Three Months Ended June 30, 2014 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 264 $ (329 ) $ (2,500 ) Total cash flow hedges — 264 (329 ) (2,500 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 70,929 — — — Currency (17 ) — — — Currency/Interest Rate (273 ) — (18 ) — Credit (116 ) — — — Equity (26,232 ) — — — Embedded Derivatives (16,848 ) — — — Total non-qualifying hedges 27,443 — (18 ) — Total $ 27,443 $ 264 $ (347 ) $ (2,500 ) Six Months Ended June 30, 2014 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 517 $ (400 ) $ (2,392 ) Total cash flow hedges — 517 (400 ) (2,392 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 162,506 — — — Currency (14 ) — — — Currency/Interest Rate 654 — (4 ) — Credit (158 ) — — — Equity (34,315 ) — — — Embedded Derivatives (17,108 ) — — — Total non-qualifying hedges 111,565 — (4 ) — Total $ 111,565 $ 517 $ (404 ) $ (2,392 ) (1) Amounts deferred in “Accumulated other comprehensive income (loss).” For the three and six months ended June 30, 2015 and 2014 , the ineffective portion of derivatives accounted for using hedge accounting was not material to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Presented below is a roll forward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2014 $ 11,585 Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2015 14,179 Amount reclassified into current period earnings (1,278 ) Balance, June 30, 2015 $ 24,486 As of June 30, 2015 and 2014 , the Company did not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 19 years . Income amounts deferred in “Accumulated other comprehensive income (loss)” as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Credit Derivatives The Company has no exposure from credit derivatives where it has written credit protection as of June 30, 2015 and December 31, 2014 . The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of June 30, 2015 and December 31, 2014 , the Company had $7 million and $12 million of outstanding notional amounts, respectively, reported at fair value as a liability of less than $1 million for both periods. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by our counterparty to financial derivative transactions. The Company has credit risk exposure to an affiliate, Prudential Global Funding, LLC (“PGF”), related to its OTC derivative transactions. PGF manages credit risk with external counterparties by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral, such as cash and securities, when appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review. Under fair value measurements, the Company incorporates the market’s perception of its own and the counterparty’s non-performance risk in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company’s own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company’s counterparty’s credit spread is applied to OTC derivative net asset positions. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities And Litigation And Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities And Litigation And Regulatory Matters | COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments The Company has made commitments to fund commercial loans. As of June 30, 2015 , the outstanding balance on this commitment was $62 million . The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of June 30, 2015 , $153 million of this commitment was outstanding. Contingent Liabilities On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the costs of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed, including matters discussed below. The Company estimates that as of June 30, 2015 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is $0 to approximately $6 million . The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 11 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and should be read in conjunction with the complete descriptions provided in the Form 10-K. State of West Virginia ex. Rel. John D. Perdue v. PRUCO Life Insurance Company In June 2015, the West Virginia Supreme Court issued a decision: (i) reversing the trial court’s dismissal of the West Virginia Treasurer’s complaint alleging violations of West Virginia’s unclaimed property law; and (ii) remanding the case to the Circuit Court of Putnam County for proceedings consistent with its decision. In July 2015, a petition for rehearing was filed with the West Virginia Supreme Court. The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock option program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock option program was less than $1 million for both the three months ended June 30, 2015 and 2014 ; and less than $ 1 million for both the six months ended June 30, 2015 and 2014 . The expense charged to the Company for the deferred compensation program was $2 million for both the three months ended June 30, 2015 and 2014 ; and $4 million for both the six months ended June 30, 2015 and 2014 . The Company is charged for its share of employee benefits expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final group earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during career. The Company’s share of net expense for the pension plans was $5 million for both the three months ended June 30, 2015 and 2014 ; and $11 million and $9 million for the six months ended June 30, 2015 and 2014 , respectively. Prudential Insurance sponsors voluntary savings plans for its employee’s 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $2 million for both the three months ended June 30, 2015 and 2014 , and $4 million for both the six months ended June 30, 2015 and 2014 . The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market based pricing arrangement. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s products. Commissions and fees paid by the Company to PAD were $211 million and $223 million for the three months ended June 30, 2015 and 2014 , respectively, and $415 million and $425 million for the six months ended June 30, 2015 and 2014 , respectively. Corporate Owned Life Insurance The Company has sold five Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,948 million at June 30, 2015 and $2,812 million at December 31, 2014 . Fees related to these COLI policies were $10 million for both the three months ended June 30, 2015 and 2014 , and $21 million for both the six months ended June 30, 2015 and 2014 . The Company retains the majority of the mortality risk associated with these COLI policies. In October 2013, the Company increased the maximum amount of mortality risk on any life to $3.5 million for certain COLI policies. Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. Reinsurance with Affiliates The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), UPARC, Pruco Re, Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), and Prudential Term Reinsurance Company (“Term Re”), and its parent company, Prudential Insurance, in order to provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage the statutory capital for its individual life business, facilitate its capital market hedging program and align accounting methodology for the assets and liabilities of living benefit riders contained in annuities contracts. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. Reserves related to reinsured long duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers, for long duration reinsurance arrangements, are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for interest-sensitive life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. Realized investment gains and losses include the impact of reinsurance agreements that are accounted for as embedded derivatives. Changes in the fair value of the embedded derivatives are recognized through “Realized investment gains (losses), net”. The Company has entered into reinsurance agreements to transfer the risk related to certain living benefit options on variable annuities to Pruco Re. The Company has also entered into an agreement with UPARC to reinsure a portion of the no-lapse guarantee provision on certain universal life products. These reinsurance agreements are derivatives and have been accounted for in the same manner as an embedded derivative. See Note 5 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (in thousands) Reinsurance recoverable $ 19,642,472 $ 20,594,371 Policy loans (72,935 ) (69,501 ) Deferred policy acquisition costs (1,963,446 ) (1,709,625 ) Other assets 37,745 39,458 Policyholders’ account balances 5,007,077 4,827,071 Future policy benefits and other policyholder liabilities 2,168,000 2,193,735 Other liabilities (reinsurance payables) 436,048 433,627 The reinsurance recoverables by counterparty is broken out below. June 30, 2015 December 31, 2014 (in thousands) UPARC $ 275,209 $ 407,209 PAR U 9,444,368 9,147,870 PURC 1,877,750 1,564,913 PARCC 2,537,573 2,499,567 PAR Term 1,120,484 1,001,181 Term Re 192,281 97,099 Prudential Insurance 188,872 188,466 Pruco Re 2,779,245 4,522,665 Prudential of Taiwan 1,213,912 1,157,881 Unaffiliated 12,778 7,520 Total Reinsurance Recoverables $ 19,642,472 $ 20,594,371 Reinsurance amounts, excluding investment gains (losses) on affiliated asset transfers, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Premiums: Direct $ 383,312 $ 352,491 $ 749,555 $ 692,059 Assumed — — — — Ceded (359,830 ) (334,484 ) (710,436 ) (658,807 ) Net Premiums 23,482 18,007 39,119 33,252 Policy charges and fee income: Direct 694,126 688,988 1,426,691 1,352,773 Assumed (13,919 ) 135,518 155,292 226,349 Ceded (150,174 ) (301,310 ) (511,185 ) (542,301 ) Net policy charges and fee income 530,033 523,196 1,070,798 1,036,821 Net investment income: Direct 102,306 104,007 206,354 202,998 Assumed 364 340 693 678 Ceded (1,184 ) (1,127 ) (2,141 ) (1,979 ) Net investment income 101,486 103,220 204,906 201,697 Net other income: Direct 12,841 13,167 25,152 26,574 Assumed & Ceded 2,172 — 7,078 — Net other income 15,013 13,167 32,230 26,574 Interest credited to policyholders’ account balances: Direct 73,790 105,230 216,195 206,123 Assumed 32,790 30,984 61,615 60,231 Ceded (58,337 ) (52,438 ) (112,090 ) (102,775 ) Net interest credited to policyholders’ account balances 48,243 83,776 165,720 163,579 Policyholders’ benefits (including change in reserves): Direct 466,298 466,514 952,425 963,994 Assumed (12,799 ) 137,403 223,085 320,078 Ceded (396,233 ) (531,786 ) (1,059,843 ) (1,126,906 ) Net policyholders’ benefits (including change in reserves) 57,266 72,131 115,667 157,166 Net reinsurance expense allowances, net of capitalization and amortization (17,371 ) (64,615 ) (87,083 ) (128,167 ) Realized investment gains (losses), net: Direct 2,834,402 (477,059 ) 2,167,967 (1,598,581 ) Assumed — — — — Ceded (3,005,058 ) 508,727 (2,279,598 ) 1,715,780 Realized investment gains (losses), net $ (170,656 ) $ 31,668 $ (111,631 ) $ 117,199 The gross and net amounts of life insurance face amount in force as of June 30, 2015 and 2014 were as follows: June 30, 2015 June 30, 2014 (in thousands) Direct gross life insurance face amount in force $ 739,363,094 $ 685,708,205 Assumed gross life insurance face amount in force 44,015,996 45,005,228 Reinsurance ceded (722,711,390 ) (671,295,042 ) Net life insurance face amount in force $ 60,667,700 $ 59,418,391 UPARC Through June 30, 2011 , the Company, excluding its subsidiaries, reinsured its Universal Protector policies having no-lapse guarantees with UPARC, an affiliated company. UPARC reinsured an amount equal to 90% of the net amount at risk related to the first $1 million in face amount plus 100% of the net amount at risk related to the face amount in excess of $1 million as well as 100% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. Effective July 1, 2011 , the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was amended for policies with effective dates prior to January 1, 2011 . Under the amended agreement, UPARC reinsures an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. During the first quarter of 2013 , the agreement between the Company and UPARC was further amended to revise language relating to the consideration due to the Company. Effective July 1, 2013 the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was amended for policies with effective dates January 1, 2011 through December 31, 2012. Under the amended agreement, UPARC reinsures an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. Effective January 1, 2014 the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was amended for policies with effective dates on or after January 1, 2014. Under the amended agreement, UPARC will no longer reinsure Universal Protector policies having no-lapse guarantees. Effective July 1, 2014 the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was further amended for policies with effective dates January 1, 2013 through December 31, 2013 . Under the amended agreement, UPARC reinsures an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. PAR U Effective July 1, 2011 , the Company, excluding its subsidiaries, entered into an automatic coinsurance agreement with PAR U, an affiliated company, to reinsure an amount equal to 70% of all the risks associated with its Universal Protector policies having no- lapse guarantees as well as its Universal Plus policies, with effective dates prior to January 1, 2011 . During the first quarter of 2013 , the agreement between the Company, excluding its subsidiaries, and PAR U was amended to revise language relating to the consideration due to PAR U. Effective July 1, 2012, the Company’s wholly-owned subsidiary, PLNJ, entered into an automatic coinsurance agreement with PAR U, an affiliated company, to reinsure an amount equal to 95% of all the risks associated with its universal life policies. During the fourth quarter of 2012 , the agreement between PLNJ and PAR U was amended to revise language relating to the consideration due to PAR U. On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of the GUL business does not have a material impact on the equity of the Company. Effective July 1, 2013, the agreement between the Company, excluding its subsidiaries, and PAR U was amended for policies with effective dates from January 1, 2011 through December 31, 2012 . Under the amended agreement, PAR U reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies, with effective dates from January 1, 2011 through December 31, 2012 in addition to policies covered by the initial reinsurance agreement discussed above. Effective October 1, 2013, the Company entered into an Assumption and Novation Agreement with PAR U and PURC, an affiliated company. Under this agreement, PAR U novates, assigns, and transfers to PURC all of its rights, title, interests, duties, obligations, and liabilities under the aforementioned amendment entered into on July 1, 2013. PURC will succeed PAR U and become the counterparty to the Company with respect to the novated business pursuant to the Novated Coinsurance Agreement (the “PURC Novated Coinsurance Agreement”). There is no financial impact to the Company as a result of this transaction. PURC The Company, excluding its subsidiaries, reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies, with effective dates from January 1, 2011 through December 31, 2012 with PURC pursuant to the PURC Novated Coinsurance Agreement (as defined in “PARU” above). Effective January 1, 2014 , the Company, excluding its subsidiaries, entered into an automatic coinsurance agreement with PURC to reinsure an amount equal to 95% of all the risks associated with its Universal Protector policies having no-lapse guarantees, as well as its Universal Plus policies, with effective dates on or after January 1, 2014 . Effective July 1, 2014 , the agreement between the Company, excluding its subsidiaries, and PURC was amended to reinsure policies with effective dates from January 1, 2013 through December 31, 2013 . Under the amended agreement, PURC reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies in addition to policies initially covered by the PURC Novated Coinsurance Agreement. PARCC The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 , through an automatic coinsurance agreement with PARCC. PAR Term The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013 , through an automatic coinsurance agreement with PAR Term. Term Re The Company reinsures 95% of the risks under its term life insurance policies with effective dates on or after January 1, 2014 through an automatic coinsurance agreement with Term Re. Prudential Insurance The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract. Pruco Re The Company uses reinsurance as part of its risk management and capital management strategies for certain of its optional living benefit features available under certain of its annuity products. Starting from 2005, the Company has entered into various automatic coinsurance agreements with Pruco Re, an affiliated company, to reinsure its living benefit features sold on certain of its annuities. Taiwan Branch Reinsurance Agreement On January 31, 2001 , the Company transferred all of its assets and liabilities associated with its Taiwan branch, including its Taiwan insurance book of business to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, the Company is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against the Company. The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under accounting principles generally accepted in the United States. Under this accounting treatment, the insurance related liabilities remain on the books of the Company and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in US dollars. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. and Prudential Investments LLC whereby the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust. Income received from AST Investment Services, Inc. and Prudential Investments LLC related to this agreement was $98 million and $90 million for the three months ended June 30, 2015 and 2014 , respectively, and $193 million and $176 million for the six months ended June 30, 2015 and 2014 , respectively. These revenues are recorded as “Asset administration fees” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). The Company has a revenue sharing agreement with Prudential Investments LLC, whereby the Company receives fee income based on policyholders’ separate account balances invested in The Prudential Series Fund (“PSF”). Income received from Prudential Investments LLC, related to this agreement was $3 million for both the three months ended June 30, 2015 and 2014 , and $6 million for both the six months ended June 30, 2015 and 2014 . These revenues are recorded as “Asset administration fees” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Affiliated Investment Management Expenses In accordance with an agreement with Prudential Investment Management, Inc. (“PIMI”), the Company pays investment management expenses to PIMI who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PIMI related to this agreement were $4 million for both the three months ended June 30, 2015 and 2014 , and $8 million and $7 million for the six months ended June 30, 2015 and 2014 , respectively. These expenses are recorded as “Net investment income” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Affiliated Asset Transfers From time to time, the Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gain (loss), net", respectively. The table below shows affiliated asset trades as of December 31, 2014 and June 30, 2015 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) Prudential Insurance March-14 Purchase Fixed Maturities $ 13 $ 13 $ — $ — $ — Prudential Financial September-14 Transfer In Fixed Maturities & Private Equity 81 77 3 — — Prudential Financial September-14 Transfer Out Fixed Maturities 142 136 (4 ) — — PURC September-14 Transfer Out Fixed Maturities, Commercial Mortgages, & Private Equity 178 172 — 6 (8 ) Prudential Annuities Life Assurance October-14 Purchase Fixed Maturities 10 9 — (1 ) — Prudential Insurance December-14 Purchase Fixed Maturities, Commercial Mortgages, & Private Equity 122 102 (13 ) — — PURC December-14 Purchase JV/LP Investment 3 3 — — — Prudential Insurance March-15 Purchase Fixed Maturities & Trading Account Assets 92 74 (12 ) — — Prudential Insurance June-15 Purchase Fixed Maturities 11 10 (1 ) — — Debt Agreements The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company’s short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - June 30, 2015 Amount of Notes - December 31, 2014 Interest Rate Date of Maturity (in thousands) Prudential Financial 6/20/2011 $ — $ 50,000 2.64 % 6/21/2015 Prudential Financial 12/15/2011 11,000 11,000 3.61 % 12/15/2016 Prudential Financial 12/16/2011 22,000 22,000 3.32 % - 3.61 % 12/16/2015 - 12/16/2016 Prudential Insurance 12/20/2010 204,000 204,000 3.47 % 12/21/2015 Washington Street Investment 6/20/2012 158,000 237,000 2.44 % - 3.02 % 6/15/2015 - 6/15/2017 Washington Street Investment 12/17/2012 198,000 198,000 1.33 % - 1.87 % 12/17/2015 - 12/17/2017 Washington Street Investment 12/17/2012 39,000 39,000 1.33 % - 1.87 % 12/17/2015 - 12/17/2017 Prudential Financial 11/15/2013 9,000 9,000 2.24 % 12/15/2018 Prudential Financial 11/15/2013 23,000 23,000 3.19 % 12/15/2020 Prudential Insurance 12/6/2013 120,000 120,000 2.60 % 12/15/2018 Prudential Insurance 12/6/2013 130,000 130,000 4.39 % 12/15/2023 Prudential Insurance 12/6/2013 250,000 250,000 3.64 % 12/15/2020 Prudential Insurance 9/25/2014 30,000 30,000 1.89 % 6/20/2017 Prudential Insurance 9/25/2014 40,000 40,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 20,000 20,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 50,000 50,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 50,000 50,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 100,000 100,000 3.47 % 6/20/2021 Prudential Insurance 9/25/2014 100,000 100,000 3.95 % 6/20/2024 Prudential Financial 12/15/2014 5,000 5,000 2.57 % 12/15/2019 Prudential Financial 12/15/2014 23,000 23,000 3.14 % 12/15/2021 Prudential Financial 6/15/2015 66,000 — 3.52 % 6/15/2022 Prudential Financial 6/15/2015 6,000 — 2.86 % 6/15/2020 Total Loans Payable to Affiliates $ 1,654,000 $ 1,711,000 The total interest expense to the Company related to loans payable to affiliates was $13.2 million and $12.9 million for the three months ended June 30, 2015 , and 2014 , respectively, and $26.4 million and $26.0 million for the six months ended June 30, 2015 and 2014 , respectively. Contributed Capital and Dividends In June of 2015, the Company paid a dividend in the amount of $230 million to Prudential Insurance. In June and December of 2014, the Company paid dividends in the amounts of $338 million and $410 million , respectively, to Prudential Insurance. |
Significant Accounting Polici14
Significant Accounting Policies and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements In January 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance became effective for annual periods and interim reporting periods within those annual periods that began after December 15, 2014. The Company did not elect the proportional amortization method under this guidance. In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in-substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014 and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. In June 2014, the FASB issued updated guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings and eliminates existing guidance for repurchase financings. The guidance also requires new disclosures for certain transactions accounted for as secured borrowings and for transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets. Accounting changes and new disclosures for transfers accounted for as sales under the new guidance were effective for the first interim or annual period beginning after December 15, 2014 and did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. Disclosures for certain transactions accounted for as secured borrowings were effective for interim periods beginning after March 15, 2015 and are included in Note 3 . In August 2014, the FASB issued guidance requiring that mortgage loans be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014 and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017 and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. In February 2015, the FASB issued updated guidance that changes the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing the impact of the guidance on the Company’s consolidated financial position, results of operations and financial statement disclosures. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Fixed Maturities and Equity Securities, Available-for-sale Securities | The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI (3) (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 87,356 $ 7,475 $ 281 $ 94,550 $ — Obligations of U.S. states and their political subdivisions 514,705 9,079 8,318 515,466 — Foreign government bonds 68,600 3,359 1,570 70,389 — Public utilities 719,827 36,525 15,630 740,722 — Redeemable preferred stock 5,283 1,627 145 6,765 — All other corporate securities 3,879,079 158,995 70,141 3,967,933 (245 ) Asset-backed securities (1) 479,954 8,082 689 487,347 (3,445 ) Commercial mortgage-backed securities 431,935 13,615 1,751 443,799 — Residential mortgage-backed securities (2) 119,901 9,480 77 129,304 (769 ) Total fixed maturities, available-for-sale $ 6,306,640 $ 248,237 $ 98,602 $ 6,456,275 $ (4,459 ) Equity securities, available-for-sale Common Stocks: Public utilities $ 66 $ 10 $ — $ 76 Industrial, miscellaneous & other 2 224 — 226 Mutual funds 33,480 764 841 33,403 Non-redeemable preferred stocks 340 298 — 638 Total equity securities, available-for-sale $ 33,888 $ 1,296 $ 841 $ 34,343 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income ("AOCI"), which were not included in earnings. Amount excludes $9.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI (3) (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 83,372 $ 8,711 $ 1 $ 92,082 $ — Obligations of U.S. states and their political subdivisions 310,518 15,323 187 325,654 — Foreign government bonds 35,228 3,284 14 38,498 — Public utilities 683,652 62,060 3,288 742,424 — Redeemable preferred stock 3,185 763 137 3,811 — All other corporate securities 3,743,804 227,939 20,820 3,950,923 (247 ) Asset-backed securities (1) 395,180 8,281 1,210 402,251 (3,531 ) Commercial mortgage-backed securities 482,769 17,978 1,868 498,879 — Residential mortgage-backed securities (2) 129,165 10,902 25 140,042 (836 ) Total fixed maturities, available-for-sale $ 5,866,873 $ 355,241 $ 27,550 $ 6,194,564 $ (4,614 ) Equity securities, available-for-sale Common Stocks: Public utilities $ 66 $ 23 $ — $ 89 Industrial, miscellaneous & other 5 173 — 178 Mutual funds 28,470 468 295 28,643 Non-redeemable preferred stocks 340 250 — 590 Total equity securities, available-for-sale $ 28,881 $ 914 $ 295 $ 29,500 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $10 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2015 , are as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 317,118 $ 323,093 Due after one year through five years 1,112,526 1,177,472 Due after five years through ten years 1,250,660 1,276,338 Due after ten years 2,594,546 2,618,922 Asset-backed securities 479,954 487,347 Commercial mortgage-backed securities 431,935 443,799 Residential mortgage-backed securities 119,901 129,304 Total $ 6,306,640 $ 6,456,275 |
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities | The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities, available-for-sale Proceeds from sales $ 46,614 $ 78,591 $ 134,934 $ 118,477 Proceeds from maturities/repayments 150,345 165,763 302,168 347,782 Gross investment gains from sales, prepayments and maturities 2,546 5,147 5,063 6,826 Gross investment losses from sales and maturities (242 ) (517 ) (633 ) (924 ) Equity securities, available-for-sale Proceeds from sales $ — $ 5,210 $ — $ 5,210 Proceeds from maturities/repayments — — — — Gross investment gains from sales — 145 — 145 Gross investment losses from sales — — — — Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings (1) $ (372 ) $ (127 ) $ (384 ) $ (127 ) Writedowns for impairments on equity securities (2 ) — (2 ) — (1) Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 (in thousands) Balance, beginning of period $ 8,628 $ 8,729 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (69 ) (133 ) Credit loss impairment recognized in the current period on securities not previously impaired — — Additional credit loss impairments recognized in the current period on securities previously impaired 15 27 Increases due to the passage of time on previously recorded credit losses 40 77 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (58 ) (144 ) Balance, end of period $ 8,556 $ 8,556 Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (in thousands) Balance, beginning of period $ 10,173 $ 14,661 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,449 ) (5,918 ) Credit loss impairment recognized in the current period on securities not previously impaired — — Additional credit loss impairments recognized in the current period on securities previously impaired — — Increases due to the passage of time on previously recorded credit losses 101 202 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (278 ) (398 ) Balance, end of period $ 8,547 $ 8,547 |
Trading Account Assets Disclosure | The following table sets forth the composition of “Trading account assets” as of the dates indicated: June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Fixed maturities $ 43,527 $ 43,207 $ 43,490 $ 44,121 Equity securities 14,761 18,369 3,447 5,540 Total trading account assets $ 58,288 $ 61,576 $ 46,937 $ 49,661 |
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: June 30, 2015 December 31, 2014 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Retail $ 449,519 25.8 % $ 439,679 26.2 % Apartments/Multi-Family 421,801 24.2 401,568 23.9 Industrial 293,672 16.9 286,104 17.1 Office 281,870 16.2 244,072 14.6 Other 93,099 5.3 99,083 5.9 Hospitality 90,989 5.2 92,126 5.5 Total commercial mortgage loans 1,630,950 93.6 1,562,632 93.2 Agricultural property loans 111,668 6.4 114,665 6.8 Total commercial mortgage and agricultural property loans by property type 1,742,618 100.0 % 1,677,297 100.0 % Valuation allowance (3,875 ) (4,154 ) Total net commercial mortgage and agricultural property loans by property type 1,738,743 1,673,143 Other Loans Uncollateralized loans 8,410 8,410 Valuation allowance — — Total other loans 8,410 8,410 Total commercial mortgage and other loans $ 1,747,153 $ 1,681,553 |
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: June 30, 2015 December 31, 2014 (in thousands) Allowance for credit losses, beginning of year $ 4,154 $ 8,904 Addition to (release of) allowance for losses (279 ) (1,832 ) Charge-offs, net of recoveries — (2,918 ) Total ending balance (1) $ 3,875 $ 4,154 (1) Agricultural loans represent $0.1 million of the ending allowance as of both June 30, 2015 and December 31, 2014 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: June 30, 2015 December 31, 2014 (in thousands) Allowance for Credit Losses: Individually evaluated for impairment (1) $ 761 $ 940 Collectively evaluated for impairment (2) 3,114 3,214 Total ending balance $ 3,875 $ 4,154 Recorded Investment: (3) Gross of reserves: individually evaluated for impairment (1) $ 22,672 $ 15,875 Gross of reserves: collectively evaluated for impairment (2) 1,728,356 1,669,832 Total ending balance, gross of reserves $ 1,751,028 $ 1,685,707 (1) There were no agricultural or uncollateralized loans individually evaluated for impairments as of both June 30, 2015 and December 31, 2014 . (2) Agricultural loans collectively evaluated for impairment had a recorded investment of $112 million and $115 million at June 30, 2015 and December 31, 2014 , respectively, and a related allowance of $0.1 million as of both June 30, 2015 and December 31, 2014 . Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both June 30, 2015 and December 31, 2014 and no related allowance for both periods. (3) Recorded investment reflects the balance sheet carrying value gross of related allowance. |
Credit Quality Indicators | The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the dates indicated: Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio - June 30, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 1,007,922 $ 16,437 $ 16,637 $ 1,040,996 60%-69.99% 412,585 28,865 4,097 445,547 70%-79.99% 214,071 18,096 — 232,167 Greater than 80% 2,965 15,875 5,068 23,908 Total commercial mortgage and agricultural property loans $ 1,637,543 $ 79,273 $ 25,802 $ 1,742,618 Debt Service Coverage Ratio - December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 997,610 $ 24,491 $ 9,393 $ 1,031,494 60%-69.99% 372,958 15,741 13,981 402,680 70%-79.99% 177,956 31,463 3,493 212,912 Greater than 80% 2,991 22,068 5,152 30,211 Total commercial mortgage and agricultural property loans $ 1,551,515 $ 93,763 $ 32,019 $ 1,677,297 |
Net Investment Income | Net investment income for the three and six months ended June 30, 2015 and 2014 , was from the following sources: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 66,546 $ 66,293 $ 130,484 $ 132,028 Equity securities, available-for-sale — 1 1 1 Trading account assets 735 201 1,247 397 Commercial mortgage and other loans 21,639 20,891 42,536 40,721 Policy loans 15,371 15,072 30,486 29,798 Short-term investments and cash equivalents 184 103 459 260 Other long-term investments 2,684 5,552 10,754 8,019 Gross investment income 107,159 108,113 215,967 211,224 Less: investment expenses (5,673 ) (4,893 ) (11,061 ) (9,527 ) Net investment income $ 101,486 $ 103,220 $ 204,906 $ 201,697 |
Realized Gain (Loss) on Investments | Realized investment gains (losses), net, for the three and six months ended June 30, 2015 and 2014 , were from the following sources: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Fixed maturities $ 1,932 $ 4,503 $ 4,046 $ 5,775 Equity securities (2 ) 145 (2 ) 145 Commercial mortgage and other loans 128 (431 ) 279 (304 ) Joint ventures and limited partnerships 128 — 165 — Derivatives (172,883 ) 27,443 (116,162 ) 111,565 Other 41 8 43 18 Realized investment gains (losses), net $ (170,656 ) $ 31,668 $ (111,631 ) $ 117,199 |
Components of Accumulated Other Comprehensive Income | The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the six months ended June 30, 2015 and 2014 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2014 $ (67 ) $ 178,758 $ 178,691 Change in other comprehensive income (loss) before reclassifications (338 ) (123,909 ) (124,247 ) Amounts reclassified from AOCI — (4,044 ) (4,044 ) Income tax benefit (expense) 118 44,582 44,700 Balance, June 30, 2015 $ (287 ) $ 95,387 $ 95,100 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2013 $ 403 $ 56,243 $ 56,646 Change in other comprehensive income (loss) before reclassifications (36 ) 170,185 170,149 Amounts reclassified from AOCI — (5,920 ) (5,920 ) Income tax benefit (expense) 13 (57,493 ) (57,480 ) Balance, June 30, 2014 $ 380 $ 163,015 $ 163,395 (1) Includes cash flow hedges of $24 million and $12 million as of June 30, 2015 and December 31, 2014 , respectively, and $(7) million and $(5) million as of June 30, 2014 and December 31, 2013 , respectively . |
Reclassification Out Of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate (3) $ (523 ) $ 1,278 Net unrealized investment gains (losses) on available-for-sale securities (4) 2,453 2,766 Total net unrealized investment gains (losses) 1,930 4,044 Total reclassifications for the period $ 1,930 $ 4,044 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 5 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ account balances. |
Net Unrealized Investment Gain (Loss) AOCI Rollforward | Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders’ Account Balances (2) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2014 $ 5,333 $ (2,538 ) $ 1,228 $ (1,440 ) $ 2,583 Net investment gains (losses) on investments arising during the period 83 — — (29 ) 54 Reclassification adjustment for (gains) losses included in net income (150 ) — — 52 (98 ) Reclassification adjustment for OTTI losses excluded from net income (1) 7 — — (2 ) 5 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs — 539 — (189 ) 350 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances — — (174 ) 61 (113 ) Balance, June 30, 2015 $ 5,273 $ (1,999 ) $ 1,054 $ (1,547 ) $ 2,781 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Balances are net of reinsurance. |
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains and Losses in AOCI Net Unrealized Gains (Losses) on Investments (2) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders’ Account Balances (3) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2014 $ 344,577 $ (112,829 ) $ 39,122 $ (94,695 ) $ 176,175 Net investment gains (losses) on investments arising during the period (163,171 ) — — 56,909 (106,262 ) Reclassification adjustment for (gains) losses included in net income (3,894 ) — — 1,363 (2,531 ) Reclassification adjustment for OTTI losses excluded from net income (1) (7 ) — — 2 (5 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs — 68,898 — (24,114 ) 44,784 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances — — (30,084 ) 10,529 (19,555 ) Balance, June 30, 2015 $ 177,505 $ (43,931 ) $ 9,038 $ (50,006 ) $ 92,606 (1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Includes cash flow hedges. See Note 5 for information on cash flow hedges. (3) Balances are net of reinsurance. |
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: June 30, 2015 December 31, 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 5,273 $ 5,333 Fixed maturity securities, available-for-sale - all other 144,362 322,358 Equity securities, available-for-sale 455 619 Derivatives designated as cash flow hedges (1) 24,486 11,585 Other investments 8,202 10,015 Net unrealized gains (losses) on investments $ 182,778 $ 349,910 (1) See Note 5 for more information on cash flow hedges. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures | The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated: June 30, 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 6,557 $ 281 $ — $ — $ 6,557 $ 281 Obligations of U.S. states and their political subdivisions 320,836 8,318 — — 320,836 8,318 Foreign government bonds 41,118 1,570 — — 41,118 1,570 Public utilities 240,614 13,963 11,784 1,667 252,398 15,630 All other corporate securities 1,220,185 62,518 75,819 7,768 1,296,004 70,286 Asset-backed securities 204,321 415 35,726 274 240,047 689 Commercial mortgage-backed securities 112,489 1,671 4,440 80 116,929 1,751 Residential mortgage-backed securities 25,383 68 1,745 9 27,128 77 Total $ 2,171,503 $ 88,804 $ 129,514 $ 9,798 $ 2,301,017 $ 98,602 Equity securities, available-for-sale $ 17,194 $ 841 $ — $ — $ 17,194 $ 841 December 31, 2014 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 994 $ 1 $ — $ — $ 994 $ 1 Obligations of U.S. states and their political subdivisions 9,852 125 2,886 62 12,738 187 Foreign government bonds 2,246 14 — — 2,246 14 Public utilities 30,974 1,618 45,756 1,670 76,730 3,288 All other corporate securities 356,348 13,194 260,985 7,763 617,333 20,957 Asset-backed securities 209,774 737 54,711 473 264,485 1,210 Commercial mortgage-backed securities 15,824 155 87,606 1,713 103,430 1,868 Residential mortgage-backed securities 776 11 3,878 14 4,654 25 Total $ 626,788 $ 15,855 $ 455,822 $ 11,695 $ 1,082,610 $ 27,550 Equity securities, available-for-sale $ 14,706 $ 295 $ — $ — $ 14,706 $ 295 |
Fair Value of Assets and Liab16
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2015 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ — $ 94,550 $ — $ — $ 94,550 Obligations of U.S. states and their political subdivisions — 515,466 — — 515,466 Foreign government bonds — 70,389 — — 70,389 Corporate securities — 4,634,938 80,482 — 4,715,420 Asset-backed securities — 315,147 172,200 — 487,347 Commercial mortgage-backed securities — 443,799 — — 443,799 Residential mortgage-backed securities — 129,304 — — 129,304 Sub-total — 6,203,593 252,682 — 6,456,275 Trading account assets: Corporate securities — 41,213 — — 41,213 Asset-backed securities — 1,994 — — 1,994 Equity securities — — 18,369 — 18,369 Sub-total — 43,207 18,369 — 61,576 Equity securities, available-for-sale 86 33,404 853 — 34,343 Short-term investments 57,912 21,062 — — 78,974 Cash equivalents — 17,000 — — 17,000 Other long-term investments — 225,774 2,327 (177,054 ) 51,047 Reinsurance recoverables — — 3,023,119 — 3,023,119 Receivables from parent and affiliates 171,153 2,550 — 173,703 Sub-total excluding separate account assets 57,998 6,715,193 3,299,900 (177,054 ) 9,896,037 Separate account assets (2) — 111,401,464 337,406 — 111,738,870 Total assets $ 57,998 $ 118,116,657 $ 3,637,306 $ (177,054 ) $ 121,634,907 Future policy benefits (3) $ — $ — $ 3,117,171 $ — $ 3,117,171 Payables to parent and affiliates 71,526 (71,526 ) — Total liabilities $ — $ 71,526 $ 3,117,171 $ (71,526 ) $ 3,117,171 As of December 31, 2014 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ — $ 92,082 $ — $ — $ 92,082 Obligations of U.S. states and their political subdivisions — 325,654 — — 325,654 Foreign government bonds — 38,498 — — 38,498 Corporate securities — 4,612,357 84,801 — 4,697,158 Asset-backed securities — 302,034 100,217 — 402,251 Commercial mortgage-backed securities — 498,879 — — 498,879 Residential mortgage-backed securities — 140,042 — — 140,042 Sub-total — 6,009,546 185,018 — 6,194,564 Trading account assets: Corporate securities — 42,131 — — 42,131 Asset-backed securities — 1,990 — — 1,990 Equity securities — — 5,540 — 5,540 Sub-total — 44,121 5,540 — 49,661 Equity securities, available-for-sale 107 28,643 750 — 29,500 Short-term investments 6,997 114,275 — — 121,272 Cash equivalents 41,584 26,259 — — 67,843 Other long-term investments — 242,523 2,115 (215,066 ) 29,572 Reinsurance recoverables — — 4,897,545 — 4,897,545 Receivables from parent and affiliates — 158,469 19,203 — 177,672 Sub-total excluding separate account assets 48,688 6,623,836 5,110,171 (215,066 ) 11,567,629 Separate account assets (2) — 108,891,268 302,924 — 109,194,192 Total assets $ 48,688 $ 115,515,104 $ 5,413,095 $ (215,066 ) $ 120,761,821 Future policy benefits (3) $ — $ — $ 4,993,611 $ — $ 4,993,611 Payables to parent and affiliates — 58,687 — (58,687 ) — Total liabilities $ — $ 58,687 $ 4,993,611 $ (58,687 ) $ 4,993,611 (1) “Netting” amounts represent cash collateral of $106 million and $156 million as of June 30, 2015 and December 31, 2014 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (3) As of June 30, 2015 , the net embedded derivative liability position of $3,117 million includes $712 million of embedded derivatives in an asset position and $3,829 million of embedded derivatives in a liability position. As of December 31, 2014 , the net embedded derivative liability position of $4,994 million includes $577 million of embedded derivatives in an asset position and $5,571 million of embedded derivatives in a liability position. |
Fair Value Level Three Amounts By Pricing Source | The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of June 30, 2015 Internal (1) External (2) Total (in thousands) Corporate securities $ 24,797 $ 55,685 $ 80,482 Asset-backed securities 221 171,979 172,200 Equity securities 853 18,369 19,222 Other long-term investments 796 1,531 2,327 Reinsurance recoverables 3,023,119 — 3,023,119 Receivables from parent and affiliates — 2,550 2,550 Subtotal excluding separate account assets 3,049,786 250,114 3,299,900 Separate account assets 84,891 252,515 337,406 Total assets $ 3,134,677 $ 502,629 $ 3,637,306 Future policy benefits $ 3,117,171 $ — $ 3,117,171 Total liabilities $ 3,117,171 $ — $ 3,117,171 As of December 31, 2014 Internal (1) External (2) Total (in thousands) Corporate securities $ 23,712 $ 61,089 $ 84,801 Asset-backed securities 264 99,953 100,217 Equity securities 750 5,540 6,290 Other long-term investments 565 1,550 2,115 Reinsurance recoverables 4,897,545 — 4,897,545 Receivables from parent and affiliates — 19,203 19,203 Subtotal excluding separate account assets 4,922,836 187,335 5,110,171 Separate account assets 84,111 218,813 302,924 Total assets $ 5,006,947 $ 406,148 $ 5,413,095 Future policy benefits $ 4,993,611 $ — $ 4,993,611 Total liabilities $ 4,993,611 $ — $ 4,993,611 (1) Represents valuations which could incorporate internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. |
Fair Value Inputs Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets). As of June 30, 2015 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 24,797 Discounted cash flow Discount rate 10.12% 15.05% 10.92% Decrease Market comparables EBITDA multiples (2) 5 X 6.5 X 6.4 X Increase Reinsurance recoverables - Living Benefits $ 2,778,497 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 244,622 Discounted cash flow Lapse rate (3) 0 % 12 % Decrease NPR spread (4) 0 % 1.68 % Decrease Mortality rate (5) 0 % 20 % Decrease Premium payment (6) 1 X 3.75 X Decrease Liabilities: Future policy benefits (7) $ 3,117,171 Discounted cash flow Lapse rate (8) 0 % 14 % Decrease NPR spread (4) 0 % 1.68 % Decrease Utilization rate (9) 56 % 96 % Increase Withdrawal rate (10) 74 % 100 % Increase Mortality rate (11) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase As of December 31, 2014 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 23,712 Discounted cash flow Discount rate 10.00 % 11.75 % 10.52 % Decrease Market comparables EBITDA multiples (2) 6.1 X 6.1 X 6.1 X Increase Reinsurance recoverables - Living Benefits $ 4,521,928 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 375,617 Discounted cash flow Lapse rate (3) 0 % 15 % Decrease NPR spread (4) 0 % 1.30 % Decrease Mortality rate (5) 0 % 18 % Decrease Premium payment (6) 1 X 3.75 X Decrease Liabilities: Future policy benefits (7) $ 4,993,611 Discounted cash flow Lapse rate (8) 0 % 14 % Decrease NPR spread (4) 0 % 1.30 % Decrease Utilization rate (9) 63 % 96 % Increase Withdrawal rate (10) 74 % 100 % Increase Mortality rate (11) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) EBITDA multiples represent multiples of earnings before interest, taxes, depreciation and amortization, and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. (3) For universal life, lapse rates vary based on funding level and other factors. Rates are set to zero when the no lapse guarantee is fully funded and the cash value is zero. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. (5) Universal life mortality rates are adjusted based on underwriting information. A mortality improvement assumption is also incorporated into the projection. (6) For universal life, premium payment assumptions vary by funding level. Some policies are assumed to pay the minimum premium required to maintain the no lapse guarantee. Other policies are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as “X”). Policyholders are assumed to stop premium payments once the no lapse guarantee is fully funded. (7) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (8) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (9) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (10) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder age, tax status and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%. (11) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide summaries of the changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods: Three Months Ended June 30, 2015 Fixed Maturities Available-For-Sale Corporate Securities Asset-Backed Securities Trading Account Assets- Equity Securities Equity Securities, Available-for- Sale Other Long-term Investments (in thousands) Fair Value, beginning of period assets/(liabilities) $ 86,915 $ 201,051 $ 18,369 $ 747 $ 2,141 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (358 ) (3 ) — — (206 ) Asset management fees and other income — — — — 6 Included in other comprehensive income (loss) 720 179 — 106 — Net investment income 12 (8 ) — — — Purchases 56,669 38,129 — — 386 Sales (55,002 ) (37,131 ) — — — Issuances — — — — — Settlements (262 ) (54 ) — — — Transfers into Level 3 (2) — 2,710 — — — Transfers out of Level 3 (2) (8,212 ) (32,673 ) — — — Fair Value, end of period assets/(liabilities) $ 80,482 $ 172,200 $ 18,369 $ 853 $ 2,327 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (357 ) $ — $ — $ — $ (206 ) Asset management fees and other income $ — $ — $ — $ — $ 6 Three Months Ended June 30, 2015 Reinsurance Recoverables Receivables from Parent and Affiliates Separate Account Assets (1) Future Policy Benefits (in thousands) Fair Value, beginning of period assets/(liabilities) $ 5,822,107 $ 21,169 $ 320,397 $ (5,944,815 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (2,966,250 ) — 1,141 3,005,834 Asset management fees and other income — — — — Interest credited to policyholders’ account balances — — 3,253 — Included in other comprehensive income (loss) — 23 — — Net investment income — — — — Purchases 167,262 — 59,372 — Sales — — (46,757 ) — Issuances — — — (178,190 ) Settlements — — — — Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — (18,642 ) — — Fair Value, end of period assets/(liabilities) $ 3,023,119 $ 2,550 $ 337,406 $ (3,117,171 ) Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (2,917,452 ) $ — $ — $ 2,974,092 Asset management fees and other income $ — $ — $ — $ — Interest credited to policyholders’ account balances $ — $ — $ 3,253 $ — Six Months Ended June 30, 2015 Fixed Maturities Available-For-Sale Corporate Securities Asset-Backed Securities Trading Account Assets- Equity Securities Equity Securities, Available-for-Sale (in thousands) Fair Value, beginning of period assets/(liabilities) $ 84,801 $ 100,217 $ 5,540 $ 750 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (296 ) (1 ) — — Asset management fees and other income — — 2,328 — Included in other comprehensive income (loss) 282 709 — 103 Net investment income 6 (16 ) — — Purchases 114,009 111,759 — — Sales (110,035 ) (37,131 ) — — Issuances — — — — Settlements (1,603 ) (126 ) (1,500 ) — Transfers into Level 3 (2) 1,530 47,508 — — Transfers out of Level 3 (2) (8,212 ) (50,719 ) — — Other (4) — — 12,001 — Fair Value, end of period assets/(liabilities) $ 80,482 $ 172,200 $ 18,369 $ 853 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (357 ) $ — $ — $ — Asset management fees and other income $ — $ — $ 2,283 $ — Six Months Ended June 30, 2015 Other Long- term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Separate Account Assets (1) Future Policy Benefits (in thousands) Fair Value, beginning of period assets/(liabilities) $ 2,115 $ 4,897,545 $ 19,203 $ 302,924 $ (4,993,611 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (155 ) (2,206,893 ) — 4,620 2,229,227 Asset management fees and other income 11 — — — — Interest credited to policyholders’ account balances — — — 3,295 — Included in other comprehensive income (loss) — — 2 — — Net investment income 16 — — — — Purchases 386 332,467 — 123,825 — Sales — — — (97,258 ) — Issuances — — — — (352,787 ) Settlements (16 ) — — — — Transfers into Level 3 (2) — — 1,986 — — Transfers out of Level 3 (2) (30 ) — (18,641 ) — — Other (4) — — — — — Fair Value, end of period assets/(liabilities) $ 2,327 $ 3,023,119 $ 2,550 $ 337,406 $ (3,117,171 ) Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (154 ) $ (2,128,845 ) $ — $ — $ 2,165,005 Asset management fees and other income $ 11 $ — $ — $ — $ — Interest credited to policyholders’ account balances $ — $ — $ — $ 3,295 $ — Three Months Ended June 30, 2014 Fixed Maturities Available-For-Sale Corporate Securities Asset-Backed Securities Commercial Mortgage- Backed Securities Trading Account Assets- Equity Securities Equity Securities, Available-for-Sale Short-Term Investments (in thousands) Fair Value, beginning of period assets/(liabilities) $ 23,231 $ 106,081 $ 28,076 $ 2,802 $ 590 $ 18 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 258 113 — — — — Asset management fees and other income — — — 36 — — Included in other comprehensive income (loss) 48 (28 ) — — 20 — Net investment income 21 66 — — — — Purchases 4,615 — — — — — Sales (3,800 ) — — — (64 ) — Settlements (1,033 ) (30,305 ) — (1,375 ) — — Transfers into Level 3 (2) 2,231 1,746 — — — — Transfers out of Level 3 (2) (3,474 ) (11,494 ) (28,076 ) — — — Fair Value, end of period assets/(liabilities) $ 22,097 $ 66,179 $ — $ 1,463 $ 546 $ 18 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (101 ) $ — $ — $ — $ — $ — Asset management fees and other income $ — $ — $ — $ 38 $ — $ — Three Months Ended June 30, 2014 Other Long- Reinsurance Recoverables Receivables from Parent and Affiliates Separate Account Assets (1) Future Policy Benefits (in thousands) Fair Value, beginning of period assets/(liabilities) $ 1,247 $ 1,018,443 $ 5,124 $ 278,638 $ (1,014,755 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 91 548,605 — (284 ) (525,399 ) Asset management fees and other income 17 — — — — Interest credited to policyholders’ account balances — — — 4,046 — Included in other comprehensive income (loss) — — 3 — — Net investment income — — 41 — — Purchases 35 146,084 18,649 5,191 — Sales — — — (1,780 ) — Issuances — — — — (160,593 ) Settlements (12 ) — — — — Transfers into Level 3 (2) 427 — — — — Transfers out of Level 3 (2) — — — — — Fair Value, end of period assets/(liabilities) $ 1,805 $ 1,713,132 $ 23,817 $ 285,811 $ (1,700,747 ) Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ 91 $ 552,449 $ — $ — $ (529,822 ) Asset management fees and other income $ — $ — $ — $ — $ — Interest credited to policyholders’ account balances $ — $ — $ — $ 4,046 $ — Six Months Ended June 30, 2014 Fixed Maturities Available-for-Sale Corporate Asset-Backed Commercial Trading Equity Short-Term Investments (in thousands) Fair Value, beginning of period assets/(liabilities) $ 18,293 $ 80,934 $ — $ 2,731 $ 569 $ 18 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 256 113 — — — — Asset management fees and other income — — — 107 — — Included in other comprehensive income (loss) 385 107 (2 ) — 41 — Net investment income 31 122 — — — — Purchases 12,586 — 28,078 — — — Sales (5,191 ) — — — (64 ) — Settlements (1,836 ) (33,442 ) — (1,375 ) — — Transfers into Level 3 (2) 2,231 31,153 — — — — Transfers out of Level 3 (2) (4,658 ) (12,808 ) (28,076 ) — — — Fair Value, end of period assets/(liabilities) $ 22,097 $ 66,179 $ — $ 1,463 $ 546 $ 18 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ (101 ) $ — $ — $ — $ — $ — Asset management fees and other income $ — $ — $ — $ 109 $ — $ — Six Months Ended June 30, 2014 Other Long- Reinsurance Receivables from Parent and Affiliates Separate Account Assets (1) Future Policy (in thousands) Fair Value, beginning of period assets/(liabilities) $ 1,168 $ (376,868 ) $ 4,121 $ 279,842 $ 348,399 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 91 1,800,973 — 1,985 (1,732,681 ) Asset management fees and other income (5 ) — — — — Interest credited to policyholders’ account balances — — — 6,722 — Included in other comprehensive income (loss) — — 41 — — Net investment income — — — — — Purchases 136 289,027 18,649 39,769 — Sales — — — (42,507 ) — Issuances — — — — (316,465 ) Settlements (12 ) — — — — Transfers into Level 3 (2) 427 — 1,985 — — Transfers out of Level 3 (2) — — (979 ) — — Fair Value, end of period assets/(liabilities) $ 1,805 $ 1,713,132 $ 23,817 $ 285,811 $ (1,700,747 ) Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period (3): Included in earnings: Realized investment gains (losses), net $ 91 $ 1,803,209 $ — $ — $ (1,735,757 ) Asset management fees and other income $ — $ — $ — $ — $ — Interest credited to policyholders’ account balances $ — $ — $ — $ 6,722 $ — (1) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain contracts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Other primarily represents reclassifications of certain assets between reporting categories. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2015 Fair Value Carrying Amount (1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ — $ 8,448 $ 1,818,732 $ 1,827,180 $ 1,747,153 Policy loans — — 1,137,735 1,137,735 1,137,735 Other long-term investments 15,660 15,660 14,830 Cash and cash equivalents 51,278 103,223 — 154,501 154,501 Accrued investment income 93,591 93,591 93,591 Receivables from parent and affiliates 80,110 80,110 80,110 Other assets 28,384 28,384 28,384 Total assets $ 51,278 $ 313,756 $ 2,972,127 $ 3,337,161 $ 3,256,304 Liabilities: Policyholders’ account balances - investment contracts $ — $ 885,644 $ 230,070 $ 1,115,714 $ 1,123,260 Cash collateral for loaned securities 109,798 109,798 109,798 Short-term debt 377,016 377,016 373,000 Long-term debt 1,311,375 1,311,375 1,281,000 Payables to parent and affiliates 55,039 55,039 55,039 Other liabilities 305,340 305,340 305,340 Total liabilities $ — $ 3,044,212 $ 230,070 $ 3,274,282 $ 3,247,437 December 31, 2014 Fair Value Carrying Amount (1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ — $ 8,486 $ 1,775,949 $ 1,784,435 $ 1,681,553 Policy loans — — 1,123,912 1,123,912 1,123,912 Other long-term investments — — 11,085 11,085 10,168 Cash and cash equivalents 53,476 93,633 — 147,109 147,109 Accrued investment income — 90,506 — 90,506 90,506 Receivables from parent and affiliates — 70,668 — 70,668 70,689 Other assets — 24,126 — 24,126 24,126 Total assets $ 53,476 $ 287,419 $ 2,910,946 $ 3,251,841 $ 3,148,063 Liabilities: Policyholders’ account balances - investment contracts $ — $ 929,694 $ 40,063 $ 969,757 $ 976,190 Cash collateral for loaned securities — 65,418 — 65,418 65,418 Short-term debt — 429,903 — 429,903 423,000 Long-term debt — 1,321,501 — 1,321,501 1,288,000 Payables to parent and affiliates — 53,027 — 53,027 53,027 Other liabilities — 315,736 — 315,736 315,736 Total liabilities $ — $ 3,115,279 $ 40,063 $ 3,155,342 $ 3,121,371 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty, and non-performance risk. June 30, 2015 December 31, 2014 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps 358,065 28,365 (3,829 ) 291,100 14,733 (3,008 ) Total Qualifying Hedges 358,065 28,365 (3,829 ) 291,100 14,733 (3,008 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps 3,184,400 147,160 (49,507 ) 3,184,400 192,181 (20,574 ) Foreign Currency Foreign Currency Forwards 22,919 5 (129 ) 1,025 40 — Credit Credit Default Swaps 7,275 112 (417 ) 12,275 150 (513 ) Currency/Interest Rate Foreign Currency Swaps 155,246 10,847 (1,074 ) 101,653 6,677 (712 ) Equity Total Return Swaps 567,668 9,067 — 577,054 2,405 (19,670 ) Equity Options 53,213,970 31,014 (16,570 ) 39,735,182 26,932 (14,210 ) Total Non-Qualifying Hedges 57,151,478 198,205 (67,697 ) 43,611,589 228,385 (55,679 ) Total Derivatives (1) 57,509,543 226,570 (71,526 ) 43,902,689 243,118 (58,687 ) (1) Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $3,117 million and $4,994 million as of June 30, 2015 and December 31, 2014 , respectively, included in “Future policy benefits.” The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re was an asset of $2,778 million and $4,522 million as of June 30, 2015 and December 31, 2014 , included in “Reinsurance recoverables.” The fair value of the embedded derivative related to the no-lapse guarantee with UPARC was an asset of $245 million and $376 million as of June 30, 2015 and December 31, 2014 , respectively, included in "Reinsurance recoverables." See Note 7 for additional information on the reinsurance agreement. |
Offsetting Of Financial Assets | The following table presents recognized derivative instruments (including bifurcated embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 225,738 $ (177,054 ) $ 48,684 $ (9,661 ) $ 39,023 Securities purchased under agreement to resell 103,223 — 103,223 (103,223 ) — Total Assets $ 328,961 $ (177,054 ) $ 151,907 $ (112,884 ) $ 39,023 Offsetting of Financial Liabilities: Derivatives (1) $ 71,526 $ (71,526 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 71,526 $ (71,526 ) $ — $ — $ — December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 242,523 $ (215,066 ) $ 27,457 $ (7,194 ) $ 20,263 Securities purchased under agreement to resell 93,633 — 93,633 (93,633 ) — Total Assets $ 336,156 $ (215,066 ) $ 121,090 $ (100,827 ) $ 20,263 Offsetting of Financial Liabilities: Derivatives (1) $ 58,687 $ (58,687 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 58,687 $ (58,687 ) $ — $ — $ — (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Of Financial Liabilities | The following table presents recognized derivative instruments (including bifurcated embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 225,738 $ (177,054 ) $ 48,684 $ (9,661 ) $ 39,023 Securities purchased under agreement to resell 103,223 — 103,223 (103,223 ) — Total Assets $ 328,961 $ (177,054 ) $ 151,907 $ (112,884 ) $ 39,023 Offsetting of Financial Liabilities: Derivatives (1) $ 71,526 $ (71,526 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 71,526 $ (71,526 ) $ — $ — $ — December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 242,523 $ (215,066 ) $ 27,457 $ (7,194 ) $ 20,263 Securities purchased under agreement to resell 93,633 — 93,633 (93,633 ) — Total Assets $ 336,156 $ (215,066 ) $ 121,090 $ (100,827 ) $ 20,263 Offsetting of Financial Liabilities: Derivatives (1) $ 58,687 $ (58,687 ) $ — $ — $ — Securities sold under agreement to repurchase — — — — — Total Liabilities $ 58,687 $ (58,687 ) $ — $ — $ — (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended June 30, 2015 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 711 $ (1,347 ) $ (11,795 ) Total cash flow hedges — 711 (1,347 ) (11,795 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (164,405 ) — — — Currency (84 ) — — — Currency/Interest Rate (3,715 ) — (37 ) — Credit (88 ) — — — Equity (5,845 ) — — — Embedded Derivatives 1,254 — — — Total non-qualifying hedges (172,883 ) — (37 ) — Total $ (172,883 ) $ 711 $ (1,384 ) $ (11,795 ) Six Months Ended June 30, 2015 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 1,248 $ (83 ) $ 12,901 Total cash flow hedges — 1,248 (83 ) 12,901 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (49,273 ) — — — Currency 52 — — — Currency/Interest Rate 4,551 — 98 — Credit (163 ) — — — Equity (21,170 ) — — — Embedded Derivatives (50,159 ) — — — Total non-qualifying hedges (116,162 ) — 98 — Total $ (116,162 ) $ 1,248 $ 15 $ 12,901 Three Months Ended June 30, 2014 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 264 $ (329 ) $ (2,500 ) Total cash flow hedges — 264 (329 ) (2,500 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 70,929 — — — Currency (17 ) — — — Currency/Interest Rate (273 ) — (18 ) — Credit (116 ) — — — Equity (26,232 ) — — — Embedded Derivatives (16,848 ) — — — Total non-qualifying hedges 27,443 — (18 ) — Total $ 27,443 $ 264 $ (347 ) $ (2,500 ) Six Months Ended June 30, 2014 Realized Investment Gains/(Losses) Net Investment Income Other Income Accumulated Other Comprehensive Income (Loss) (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ — $ 517 $ (400 ) $ (2,392 ) Total cash flow hedges — 517 (400 ) (2,392 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 162,506 — — — Currency (14 ) — — — Currency/Interest Rate 654 — (4 ) — Credit (158 ) — — — Equity (34,315 ) — — — Embedded Derivatives (17,108 ) — — — Total non-qualifying hedges 111,565 — (4 ) — Total $ 111,565 $ 517 $ (404 ) $ (2,392 ) (1) Amounts deferred in “Accumulated other comprehensive income (loss).” |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes | Presented below is a roll forward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2014 $ 11,585 Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2015 14,179 Amount reclassified into current period earnings (1,278 ) Balance, June 30, 2015 $ 24,486 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Reinsurance Table | Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (in thousands) Reinsurance recoverable $ 19,642,472 $ 20,594,371 Policy loans (72,935 ) (69,501 ) Deferred policy acquisition costs (1,963,446 ) (1,709,625 ) Other assets 37,745 39,458 Policyholders’ account balances 5,007,077 4,827,071 Future policy benefits and other policyholder liabilities 2,168,000 2,193,735 Other liabilities (reinsurance payables) 436,048 433,627 |
Reinsurance Table By Affiliate | The reinsurance recoverables by counterparty is broken out below. June 30, 2015 December 31, 2014 (in thousands) UPARC $ 275,209 $ 407,209 PAR U 9,444,368 9,147,870 PURC 1,877,750 1,564,913 PARCC 2,537,573 2,499,567 PAR Term 1,120,484 1,001,181 Term Re 192,281 97,099 Prudential Insurance 188,872 188,466 Pruco Re 2,779,245 4,522,665 Prudential of Taiwan 1,213,912 1,157,881 Unaffiliated 12,778 7,520 Total Reinsurance Recoverables $ 19,642,472 $ 20,594,371 |
Reinsurance Impact On Income Statement | Reinsurance amounts, excluding investment gains (losses) on affiliated asset transfers, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Premiums: Direct $ 383,312 $ 352,491 $ 749,555 $ 692,059 Assumed — — — — Ceded (359,830 ) (334,484 ) (710,436 ) (658,807 ) Net Premiums 23,482 18,007 39,119 33,252 Policy charges and fee income: Direct 694,126 688,988 1,426,691 1,352,773 Assumed (13,919 ) 135,518 155,292 226,349 Ceded (150,174 ) (301,310 ) (511,185 ) (542,301 ) Net policy charges and fee income 530,033 523,196 1,070,798 1,036,821 Net investment income: Direct 102,306 104,007 206,354 202,998 Assumed 364 340 693 678 Ceded (1,184 ) (1,127 ) (2,141 ) (1,979 ) Net investment income 101,486 103,220 204,906 201,697 Net other income: Direct 12,841 13,167 25,152 26,574 Assumed & Ceded 2,172 — 7,078 — Net other income 15,013 13,167 32,230 26,574 Interest credited to policyholders’ account balances: Direct 73,790 105,230 216,195 206,123 Assumed 32,790 30,984 61,615 60,231 Ceded (58,337 ) (52,438 ) (112,090 ) (102,775 ) Net interest credited to policyholders’ account balances 48,243 83,776 165,720 163,579 Policyholders’ benefits (including change in reserves): Direct 466,298 466,514 952,425 963,994 Assumed (12,799 ) 137,403 223,085 320,078 Ceded (396,233 ) (531,786 ) (1,059,843 ) (1,126,906 ) Net policyholders’ benefits (including change in reserves) 57,266 72,131 115,667 157,166 Net reinsurance expense allowances, net of capitalization and amortization (17,371 ) (64,615 ) (87,083 ) (128,167 ) Realized investment gains (losses), net: Direct 2,834,402 (477,059 ) 2,167,967 (1,598,581 ) Assumed — — — — Ceded (3,005,058 ) 508,727 (2,279,598 ) 1,715,780 Realized investment gains (losses), net $ (170,656 ) $ 31,668 $ (111,631 ) $ 117,199 |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of June 30, 2015 and 2014 were as follows: June 30, 2015 June 30, 2014 (in thousands) Direct gross life insurance face amount in force $ 739,363,094 $ 685,708,205 Assumed gross life insurance face amount in force 44,015,996 45,005,228 Reinsurance ceded (722,711,390 ) (671,295,042 ) Net life insurance face amount in force $ 60,667,700 $ 59,418,391 |
Affiliated Asset Transfer | The table below shows affiliated asset trades as of December 31, 2014 and June 30, 2015 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) Prudential Insurance March-14 Purchase Fixed Maturities $ 13 $ 13 $ — $ — $ — Prudential Financial September-14 Transfer In Fixed Maturities & Private Equity 81 77 3 — — Prudential Financial September-14 Transfer Out Fixed Maturities 142 136 (4 ) — — PURC September-14 Transfer Out Fixed Maturities, Commercial Mortgages, & Private Equity 178 172 — 6 (8 ) Prudential Annuities Life Assurance October-14 Purchase Fixed Maturities 10 9 — (1 ) — Prudential Insurance December-14 Purchase Fixed Maturities, Commercial Mortgages, & Private Equity 122 102 (13 ) — — PURC December-14 Purchase JV/LP Investment 3 3 — — — Prudential Insurance March-15 Purchase Fixed Maturities & Trading Account Assets 92 74 (12 ) — — Prudential Insurance June-15 Purchase Fixed Maturities 11 10 (1 ) — — |
Debt Agreements | The following table provides the breakout of the Company’s short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - June 30, 2015 Amount of Notes - December 31, 2014 Interest Rate Date of Maturity (in thousands) Prudential Financial 6/20/2011 $ — $ 50,000 2.64 % 6/21/2015 Prudential Financial 12/15/2011 11,000 11,000 3.61 % 12/15/2016 Prudential Financial 12/16/2011 22,000 22,000 3.32 % - 3.61 % 12/16/2015 - 12/16/2016 Prudential Insurance 12/20/2010 204,000 204,000 3.47 % 12/21/2015 Washington Street Investment 6/20/2012 158,000 237,000 2.44 % - 3.02 % 6/15/2015 - 6/15/2017 Washington Street Investment 12/17/2012 198,000 198,000 1.33 % - 1.87 % 12/17/2015 - 12/17/2017 Washington Street Investment 12/17/2012 39,000 39,000 1.33 % - 1.87 % 12/17/2015 - 12/17/2017 Prudential Financial 11/15/2013 9,000 9,000 2.24 % 12/15/2018 Prudential Financial 11/15/2013 23,000 23,000 3.19 % 12/15/2020 Prudential Insurance 12/6/2013 120,000 120,000 2.60 % 12/15/2018 Prudential Insurance 12/6/2013 130,000 130,000 4.39 % 12/15/2023 Prudential Insurance 12/6/2013 250,000 250,000 3.64 % 12/15/2020 Prudential Insurance 9/25/2014 30,000 30,000 1.89 % 6/20/2017 Prudential Insurance 9/25/2014 40,000 40,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 20,000 20,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 50,000 50,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 50,000 50,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 100,000 100,000 3.47 % 6/20/2021 Prudential Insurance 9/25/2014 100,000 100,000 3.95 % 6/20/2024 Prudential Financial 12/15/2014 5,000 5,000 2.57 % 12/15/2019 Prudential Financial 12/15/2014 23,000 23,000 3.14 % 12/15/2021 Prudential Financial 6/15/2015 66,000 — 3.52 % 6/15/2022 Prudential Financial 6/15/2015 6,000 — 2.86 % 6/15/2020 Total Loans Payable to Affiliates $ 1,654,000 $ 1,711,000 |
Business and Basis of Present19
Business and Basis of Presentation (Details) policy in Thousands, $ in Millions | Jan. 02, 2013USD ($)policy | Jun. 30, 2015subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number Of Subsidiaries | subsidiary | 3 | |
Business Acquisition [Line Items] | ||
Hartford Cash Consideration | $ 615 | |
Hartford Amount In Force | 141,000 | |
Guaranteed Universal Life Account Values | 4,000 | |
GUL Amount In Force | $ 30,000 | |
The Hartford’s Individual Life Insurance Business | ||
Business Acquisition [Line Items] | ||
Number Of Life Insurance Policies Acquired | policy | 700 | |
Number Of Guaranteed Universal Life Insurance Policies Acquired | policy | 79 |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | $ 6,306,640 | $ 5,866,873 |
Amortized Cost | 33,888 | 28,881 |
Fair Value | 6,456,275 | 6,194,564 |
Fair Value | 34,343 | 29,500 |
Net unrealized gains on impaired securities relating to changes in value of securities subsequent to the impairment measurement date | 9,700 | 10,000 |
Fixed maturities, available-for-sale | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 6,306,640 | 5,866,873 |
Gross Unrealized Gains | 248,237 | 355,241 |
Gross Unrealized Losses | 98,602 | 27,550 |
Fair Value | 6,456,275 | 6,194,564 |
Other-than-temporary impairments in AOCI | (4,459) | (4,614) |
Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 87,356 | 83,372 |
Gross Unrealized Gains | 7,475 | 8,711 |
Gross Unrealized Losses | 281 | 1 |
Fair Value | 94,550 | 92,082 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Obligations of U.S. states and their political subdivisions | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 514,705 | 310,518 |
Gross Unrealized Gains | 9,079 | 15,323 |
Gross Unrealized Losses | 8,318 | 187 |
Fair Value | 515,466 | 325,654 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Foreign government bonds | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 68,600 | 35,228 |
Gross Unrealized Gains | 3,359 | 3,284 |
Gross Unrealized Losses | 1,570 | 14 |
Fair Value | 70,389 | 38,498 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Public utilities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 719,827 | 683,652 |
Gross Unrealized Gains | 36,525 | 62,060 |
Gross Unrealized Losses | 15,630 | 3,288 |
Fair Value | 740,722 | 742,424 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Redeemable preferred stock | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 5,283 | 3,185 |
Gross Unrealized Gains | 1,627 | 763 |
Gross Unrealized Losses | 145 | 137 |
Fair Value | 6,765 | 3,811 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other corporate securities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 3,879,079 | 3,743,804 |
Gross Unrealized Gains | 158,995 | 227,939 |
Gross Unrealized Losses | 70,141 | 20,820 |
Fair Value | 3,967,933 | 3,950,923 |
Other-than-temporary impairments in AOCI | (245) | (247) |
Fixed maturities, available-for-sale | Asset-backed securities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 479,954 | 395,180 |
Gross Unrealized Gains | 8,082 | 8,281 |
Gross Unrealized Losses | 689 | 1,210 |
Fair Value | 487,347 | 402,251 |
Other-than-temporary impairments in AOCI | (3,445) | (3,531) |
Fixed maturities, available-for-sale | Commercial mortgage-backed securities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 431,935 | 482,769 |
Gross Unrealized Gains | 13,615 | 17,978 |
Gross Unrealized Losses | 1,751 | 1,868 |
Fair Value | 443,799 | 498,879 |
Other-than-temporary impairments in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Residential mortgage-backed securities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 119,901 | 129,165 |
Gross Unrealized Gains | 9,480 | 10,902 |
Gross Unrealized Losses | 77 | 25 |
Fair Value | 129,304 | 140,042 |
Other-than-temporary impairments in AOCI | (769) | (836) |
Equity securities, available-for-sale | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 33,888 | 28,881 |
Gross Unrealized Gains | 1,296 | 914 |
Gross Unrealized Losses | 841 | 295 |
Fair Value | 34,343 | 29,500 |
Equity securities, available-for-sale | Public utilities | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 66 | 66 |
Gross Unrealized Gains | 10 | 23 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 76 | 89 |
Equity securities, available-for-sale | Industrial, miscellaneous & other | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 2 | 5 |
Gross Unrealized Gains | 224 | 173 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 226 | 178 |
Equity securities, available-for-sale | Mutual funds | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 33,480 | 28,470 |
Gross Unrealized Gains | 764 | 468 |
Gross Unrealized Losses | 841 | 295 |
Fair Value | 33,403 | 28,643 |
Equity securities, available-for-sale | Non-redeemable preferred stocks | ||
Summary of Investments Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 340 | 340 |
Gross Unrealized Gains | 298 | 250 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 638 | $ 590 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available for Sale Amortized Cost | ||
Due in one year or less | $ 317,118 | |
Due after one year through five years | 1,112,526 | |
Due after five years through ten years | 1,250,660 | |
Due after ten years | 2,594,546 | |
Amortized Cost | 6,306,640 | $ 5,866,873 |
Available for Sale Securities Fair Value | ||
Due in one year or less | 323,093 | |
Due after one year through five years | 1,177,472 | |
Due after five years through ten years | 1,276,338 | |
Due after ten years | 2,618,922 | |
Corporate securities | 6,456,275 | $ 6,194,564 |
Commercial mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 431,935 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 443,799 | |
Residential mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 119,901 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 129,304 | |
Asset-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 479,954 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 487,347 |
Investments (Fixed Maturities P
Investments (Fixed Maturities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fixed maturities, available-for-sale | ||||
Available For Sale | ||||
Proceeds from sales | $ 46,614 | $ 78,591 | $ 134,934 | $ 118,477 |
Proceeds from maturities/repayments | 150,345 | 165,763 | 302,168 | 347,782 |
Gross investment gains from sales, prepayments and maturities | 2,546 | 5,147 | 5,063 | 6,826 |
Gross investment losses from sales and maturities | (242) | (517) | (633) | (924) |
Fixed maturity and equity security impairments | ||||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | (372) | (127) | (384) | (127) |
Equity securities, available-for-sale | ||||
Available For Sale | ||||
Proceeds from sales | 0 | 5,210 | 0 | 5,210 |
Proceeds from maturities/repayments | 0 | 0 | 0 | 0 |
Gross investment gains from sales, prepayments and maturities | 0 | 145 | 0 | 145 |
Gross investment losses from sales and maturities | 0 | 0 | 0 | 0 |
Fixed maturity and equity security impairments | ||||
Writedowns for impairments on equity securities | $ (2) | $ 0 | $ (2) | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 8,628 | $ 10,173 | $ 8,729 | $ 14,661 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (69) | (1,449) | (133) | (5,918) |
Credit loss impairment recognized in the current period on securities not previously impaired | 0 | 0 | 0 | 0 |
Additional credit loss impairments recognized in the current period on securities previously impaired | 15 | 0 | 27 | 0 |
Increases due to the passage of time on previously recorded credit losses | 40 | 101 | 77 | 202 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (58) | (278) | (144) | (398) |
Balance, end of period | $ 8,556 | $ 8,547 | $ 8,556 | $ 8,547 |
Investments (Trading Account As
Investments (Trading Account Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | $ 58,288 | $ 46,937 |
Fair Value | 61,576 | 49,661 |
Fixed maturities | ||
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | 43,527 | 43,490 |
Fair Value | 43,207 | 44,121 |
Equity securities | ||
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | 14,761 | 3,447 |
Fair Value | $ 18,369 | $ 5,540 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - Financial Instruments [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Investment [Line Items] | |||||
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities | $ 200,000 | $ 0 | $ 900,000 | $ 0 | |
% of Total | 100.00% | 100.00% | |||
Impaired Financing Receivable, Recorded Investment | 22,700,000 | $ 22,700,000 | $ 15,900,000 | ||
Impaired Financing Receivable, Related Allowance | 800,000 | 800,000 | 900,000 | ||
Impaired Financing Receivable Interest Income Recognized | 400,000 | 400,000 | 800,000 | ||
Amortization Method Qualified Affordable Housing Project Investments | 700,000 | 700,000 | 500,000 | ||
Qualified Affordable Housing Project Investments, Commitment (less than in 2015) | 100,000 | 100,000 | 200,000 | ||
Loss from Affordable Housing Projects, Equity Method Investments | 0 | 0 | 0 | 0 | |
Affordable Housing Tax Credits And Other Tax Benefits, Amount (less than for three month periods) | 100,000 | $ 100,000 | 200,000 | $ 200,000 | |
Affordable Housing Project Investment, Write-down, Amount | 0 | ||||
Investment Grade Securities Gross Unrealized Losses | 90,700,000 | 90,700,000 | 21,300,000 | ||
Gross unrealized losses related to other than high or highest quality securities | 7,900,000 | 7,900,000 | 6,300,000 | ||
Available For Sale Securities Continuous Unrealized Loss Twelve Months Or Longer | 10,000,000 | 10,000,000 | 12,000,000 | ||
Securities Loaned, Including Not Subject To Master Netting Arrangement And Assets Other Than Securities Transferred | 110,000,000 | 110,000,000 | |||
Equity securities | |||||
Investment [Line Items] | |||||
Gross unrealized losses representing declines in value of greater than 20% | 0 | 0 | 0 | ||
Commercial Loan on Other | |||||
Investment [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 | ||
Commercial Loan | |||||
Investment [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,800,000,000 | 1,800,000,000 | 1,700,000,000 | ||
Commercial Loan on Hospitality | |||||
Investment [Line Items] | |||||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 15,900,000 | $ 15,900,000 | $ 15,900,000 | ||
California | |||||
Investment [Line Items] | |||||
% of Total | 22.00% | ||||
Texas | |||||
Investment [Line Items] | |||||
% of Total | 11.00% | ||||
New Jersey | |||||
Investment [Line Items] | |||||
% of Total | 10.00% |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||
Total commercial mortgage and agricultural property loans by property type | $ 1,742,618 | $ 1,677,297 |
Valuation allowance | (3,875) | (4,154) |
Total net commercial and agricultural mortgage loans by property type | 1,738,743 | 1,673,143 |
Total other loans | 8,410 | 8,410 |
Valuation allowance | 0 | 0 |
Total commercial mortgage and other loans | $ 1,747,153 | $ 1,681,553 |
% of Total | 100.00% | 100.00% |
Total commercial mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 1,630,950 | $ 1,562,632 |
% of Total | 93.60% | 93.20% |
Uncollateralized loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Total other loans | $ 8,410 | $ 8,410 |
Retail | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 449,519 | $ 439,679 |
% of Total | 25.80% | 26.20% |
Apartments/Multi-Family | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 421,801 | $ 401,568 |
% of Total | 24.20% | 23.90% |
Industrial | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 293,672 | $ 286,104 |
% of Total | 16.90% | 17.10% |
Office | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 281,870 | $ 244,072 |
% of Total | 16.20% | 14.60% |
Other | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 93,099 | $ 99,083 |
% of Total | 5.30% | 5.90% |
Hospitality | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 90,989 | $ 92,126 |
% of Total | 5.20% | 5.50% |
Agricultural property loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans by property type: | $ 111,668 | $ 114,665 |
% of Total | 6.40% | 6.80% |
Investments (Allowance for Loss
Investments (Allowance for Losses) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | $ 4,154 | $ 8,904 |
Addition to (release of) allowance for losses | (279) | (1,832) |
Charge-offs, net of recoveries | 0 | (2,918) |
Total ending balance | 3,875 | 4,154 |
Agricultural loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 100 | |
Total ending balance | $ 100 | $ 100 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ (761) | $ (940) |
Collectively evaluated for impairment | 3,114 | 3,214 |
Total ending balance | 3,875 | 4,154 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 22,672 | 15,875 |
Gross of reserves: collectively evaluated for impairment | 1,728,356 | 1,669,832 |
Total ending balance, gross of reserves | 1,751,028 | 1,685,707 |
Impaired Financing Receivable, Recorded Investment | 22,700 | 15,900 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Collectively evaluated for impairment | 100 | 100 |
Uncollateralized loans | ||
Recorded Investment: | ||
Gross of reserves: collectively evaluated for impairment | 8,000 | 8,000 |
Agricultural Loan | Class Of Financing Receivable | ||
Recorded Investment: | ||
Impaired Financing Receivable, Recorded Investment | $ 112,000 | $ 115,000 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Greater than 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | $ 1,007,922 | $ 997,610 |
Greater than 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 412,585 | 372,958 |
Greater than 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 214,071 | 177,956 |
Greater than 1.2X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,965 | 2,991 |
Greater than 1.2X | Total | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 1,637,543 | 1,551,515 |
1.0X to 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 16,437 | 24,491 |
1.0X to 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 28,865 | 15,741 |
1.0X to 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 18,096 | 31,463 |
1.0X to 1.2X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 15,875 | 22,068 |
1.0X to 1.2X | Total | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 79,273 | 93,763 |
Less than 1.0X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 16,637 | 9,393 |
Less than 1.0X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 4,097 | 13,981 |
Less than 1.0X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 3,493 |
Less than 1.0X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 5,068 | 5,152 |
Less than 1.0X | Total | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 25,802 | 32,019 |
Total | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 1,040,996 | 1,031,494 |
Total | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 445,547 | 402,680 |
Total | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 232,167 | 212,912 |
Total | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 23,908 | 30,211 |
Total | Total | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | $ 1,742,618 | $ 1,677,297 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 107,159 | $ 108,113 | $ 215,967 | $ 211,224 |
Less: investment expenses | (5,673) | (4,893) | (11,061) | (9,527) |
Net investment income | 101,486 | 103,220 | 204,906 | 201,697 |
Fixed maturities, available-for-sale | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 66,546 | 66,293 | 130,484 | 132,028 |
Equity securities, available-for-sale | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0 | 1 | 1 | 1 |
Trading account assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 735 | 201 | 1,247 | 397 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 21,639 | 20,891 | 42,536 | 40,721 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 15,371 | 15,072 | 30,486 | 29,798 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 184 | 103 | 459 | 260 |
Other long-term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 2,684 | $ 5,552 | $ 10,754 | $ 8,019 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ (170,656) | $ 31,668 | $ (111,631) | $ 117,199 |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 1,932 | 4,503 | 4,046 | 5,775 |
Equity securities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (2) | 145 | (2) | 145 |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 128 | (431) | 279 | (304) |
Joint ventures and limited partnerships | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 128 | 0 | 165 | 0 |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (172,883) | 27,443 | (116,162) | 111,565 |
Other | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 41 | $ 8 | $ 43 | $ 18 |
Investments (Balance of and Cha
Investments (Balance of and Changes in AOCI Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance | $ 178,691 | ||||
Balance | $ 95,100 | 95,100 | $ 178,691 | ||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance | (67) | $ 403 | 403 | ||
Change in other comprehensive income (loss) before reclassifications | (338) | (36) | |||
Amounts reclassified from AOCI | 0 | 0 | |||
Income tax benefit (expense) | 118 | 13 | |||
Balance | (287) | (287) | 380 | (67) | $ 403 |
Total net unrealized investment gains (losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance | 178,758 | 56,243 | 56,243 | ||
Change in other comprehensive income (loss) before reclassifications | (123,909) | 170,185 | |||
Amounts reclassified from AOCI | (1,930) | (4,044) | (5,920) | ||
Income tax benefit (expense) | 44,582 | (57,493) | |||
Balance | 95,387 | 95,387 | 163,015 | 178,758 | 56,243 |
Cash Flow Hedge Gain (Loss) To AOCI | 24,000 | (7,000) | 12,000 | (5,000) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Balance | 178,691 | 56,646 | 56,646 | ||
Change in other comprehensive income (loss) before reclassifications | (124,247) | 170,149 | |||
Amounts reclassified from AOCI | (1,930) | (4,044) | (5,920) | ||
Income tax benefit (expense) | 44,700 | (57,480) | |||
Balance | $ 95,100 | $ 95,100 | $ 163,395 | $ 178,691 | $ 56,646 |
Investments (Reclassifications
Investments (Reclassifications of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flow hedges - Currency/Interest rate | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ (523) | $ 1,278 | |
Net unrealized investments gains (losses) on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | 2,453 | 2,766 | |
Total net unrealized investment gains (losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | 1,930 | 4,044 | $ 5,920 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ 1,930 | $ 4,044 | $ 5,920 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | $ 178,691 |
Balance | 95,100 |
Securities Related to Other Than Temporary Impairments | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 5,333 |
Net investment gains (losses) on investments arising during the period | 83 |
Reclassification adjustment for (gains) losses included in net income | (150) |
Reclassification adjustment for OTTI losses excluded from net income | 7 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 0 |
Balance | 5,273 |
Securities Related to Other Than Temporary Impairments | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | (2,538) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 539 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 0 |
Balance | (1,999) |
Securities Related to Other Than Temporary Impairments | Future Policy Benefits and Policyholders’ Account Balances | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 1,228 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (174) |
Balance | 1,054 |
Securities Related to Other Than Temporary Impairments | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | (1,440) |
Net investment gains (losses) on investments arising during the period | (29) |
Reclassification adjustment for (gains) losses included in net income | 52 |
Reclassification adjustment for OTTI losses excluded from net income | (2) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (189) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 61 |
Balance | (1,547) |
Securities Related to Other Than Temporary Impairments | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 2,583 |
Net investment gains (losses) on investments arising during the period | 54 |
Reclassification adjustment for (gains) losses included in net income | (98) |
Reclassification adjustment for OTTI losses excluded from net income | 5 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (113) |
Balance | $ 2,781 |
Investments (All Other Net Unre
Investments (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | $ 178,691 |
Balance | 95,100 |
Other Net Unrealized Investment Gains and Losses | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 344,577 |
Net investment gains (losses) on investments arising during the period | (163,171) |
Reclassification adjustment for (gains) losses included in net income | (3,894) |
Reclassification adjustment for OTTI losses excluded from net income | (7) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 0 |
Balance | 177,505 |
Other Net Unrealized Investment Gains and Losses | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | (112,829) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 68,898 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 0 |
Balance | (43,931) |
Other Net Unrealized Investment Gains and Losses | Future Policy Benefits and Policyholders’ Account Balances | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 39,122 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (30,084) |
Balance | 9,038 |
Other Net Unrealized Investment Gains and Losses | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | (94,695) |
Net investment gains (losses) on investments arising during the period | 56,909 |
Reclassification adjustment for (gains) losses included in net income | 1,363 |
Reclassification adjustment for OTTI losses excluded from net income | 2 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (24,114) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | 10,529 |
Balance | (50,006) |
Other Net Unrealized Investment Gains and Losses | Total net unrealized investment gains (losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | 176,175 |
Net investment gains (losses) on investments arising during the period | (106,262) |
Reclassification adjustment for (gains) losses included in net income | (2,531) |
Reclassification adjustment for OTTI losses excluded from net income | (5) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 44,784 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (19,555) |
Balance | $ 92,606 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | $ 182,778 | $ 349,910 |
Derivatives designated as cash flow hedges | ||
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | 24,486 | 11,585 |
Fixed maturities | Available-for-sale Securities | ||
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | 144,362 | 322,358 |
Equity securities, available-for-sale | Available-for-sale Securities | ||
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | 455 | 619 |
Other investments | ||
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | 8,202 | 10,015 |
Securities Related to Other Than Temporary Impairments | Fixed maturities | Available-for-sale Securities | ||
Investment [Line Items] | ||
Net unrealized gains (losses) on investments | $ 5,273 | $ 5,333 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | $ 2,171,503 | $ 626,788 |
Less than 12 months Gross Unrealized Losses | 88,804 | 15,855 |
Twelve months or more Fair Value | 129,514 | 455,822 |
Twelve months or more Gross Unrealized Losses | 9,798 | 11,695 |
Total Fair Value | 2,301,017 | 1,082,610 |
Total Gross Unrealized Losses | 98,602 | 27,550 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 6,557 | 994 |
Less than 12 months Gross Unrealized Losses | 281 | 1 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 6,557 | 994 |
Total Gross Unrealized Losses | 281 | 1 |
Obligations of U.S. states and their political subdivisions | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 320,836 | 9,852 |
Less than 12 months Gross Unrealized Losses | 8,318 | 125 |
Twelve months or more Fair Value | 0 | 2,886 |
Twelve months or more Gross Unrealized Losses | 0 | 62 |
Total Fair Value | 320,836 | 12,738 |
Total Gross Unrealized Losses | 8,318 | 187 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 41,118 | 2,246 |
Less than 12 months Gross Unrealized Losses | 1,570 | 14 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 41,118 | 2,246 |
Total Gross Unrealized Losses | 1,570 | 14 |
Public utilities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 240,614 | 30,974 |
Less than 12 months Gross Unrealized Losses | 13,963 | 1,618 |
Twelve months or more Fair Value | 11,784 | 45,756 |
Twelve months or more Gross Unrealized Losses | 1,667 | 1,670 |
Total Fair Value | 252,398 | 76,730 |
Total Gross Unrealized Losses | 15,630 | 3,288 |
All other corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 1,220,185 | 356,348 |
Less than 12 months Gross Unrealized Losses | 62,518 | 13,194 |
Twelve months or more Fair Value | 75,819 | 260,985 |
Twelve months or more Gross Unrealized Losses | 7,768 | 7,763 |
Total Fair Value | 1,296,004 | 617,333 |
Total Gross Unrealized Losses | 70,286 | 20,957 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 204,321 | 209,774 |
Less than 12 months Gross Unrealized Losses | 415 | 737 |
Twelve months or more Fair Value | 35,726 | 54,711 |
Twelve months or more Gross Unrealized Losses | 274 | 473 |
Total Fair Value | 240,047 | 264,485 |
Total Gross Unrealized Losses | 689 | 1,210 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 112,489 | 15,824 |
Less than 12 months Gross Unrealized Losses | 1,671 | 155 |
Twelve months or more Fair Value | 4,440 | 87,606 |
Twelve months or more Gross Unrealized Losses | 80 | 1,713 |
Total Fair Value | 116,929 | 103,430 |
Total Gross Unrealized Losses | 1,751 | 1,868 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 25,383 | 776 |
Less than 12 months Gross Unrealized Losses | 68 | 11 |
Twelve months or more Fair Value | 1,745 | 3,878 |
Twelve months or more Gross Unrealized Losses | 9 | 14 |
Total Fair Value | 27,128 | 4,654 |
Total Gross Unrealized Losses | 77 | 25 |
Equity securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 17,194 | 14,706 |
Less than 12 months Gross Unrealized Losses | 841 | 295 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 17,194 | 14,706 |
Total Gross Unrealized Losses | $ 841 | $ 295 |
Fair Value of Assets and Liab38
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | $ 6,456,275 | $ 6,194,564 |
Trading account assets: | 61,576 | 49,661 |
Equity securities, available-for-sale | 34,343 | 29,500 |
Separate account assets | 111,738,870 | 109,194,192 |
Margin Deposit Assets | 106,000 | 156,000 |
Embedded Derivative Net | 3,117,000 | 4,994,000 |
Embedded Derivative Gross Asset | 712,000 | 577,000 |
Embedded Derivative Gross Liability | 3,829,000 | 5,571,000 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 6,456,275 | 6,194,564 |
Trading account assets: | 61,576 | 49,661 |
Equity securities, available-for-sale | 34,343 | 29,500 |
Short-term investments | 78,974 | 121,272 |
Cash equivalents | 17,000 | 67,843 |
Other long-term investments | 51,047 | 29,572 |
Reinsurance recoverables | 3,023,119 | 4,897,545 |
Receivables from parent and affiliates | 173,703 | 177,672 |
Sub-total excluding separate account assets | 9,896,037 | 11,567,629 |
Separate account assets | 111,738,870 | 109,194,192 |
Total assets | 121,634,907 | 120,761,821 |
Future policy benefits | 3,117,171 | 4,993,611 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 3,117,171 | 4,993,611 |
Asset, Netting | (177,054) | (215,066) |
Liability, Netting | (71,526) | (58,687) |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset, Netting | (177,054) | (215,066) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability, Netting | (71,526) | (58,687) |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 94,550 | 92,082 |
Obligations of U.S. states and their political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 515,466 | 325,654 |
Foreign government bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 70,389 | 38,498 |
All other corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,715,420 | 4,697,158 |
Trading account assets: | 41,213 | 42,131 |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 487,347 | 402,251 |
Trading account assets: | 1,994 | 1,990 |
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 443,799 | 498,879 |
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 129,304 | 140,042 |
Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading account assets: | 18,369 | 5,540 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets: | 0 | 0 |
Equity securities, available-for-sale | 86 | 107 |
Short-term investments | 57,912 | 6,997 |
Cash equivalents | 0 | 41,584 |
Other long-term investments | 0 | 0 |
Reinsurance recoverables | $ 0 | 0 |
Receivables from parent and affiliates | 0 | |
Sub-total excluding separate account assets | $ 57,998 | 48,688 |
Separate account assets | 0 | 0 |
Total assets | 57,998 | 48,688 |
Future policy benefits | $ 0 | 0 |
Payables to parent and affiliates | 0 | |
Total liabilities | $ 0 | 0 |
Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 1 | Obligations of U.S. states and their political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 1 | Foreign government bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 1 | All other corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets: | 0 | 0 |
Level 1 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets: | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 1 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 1 | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading account assets: | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 6,203,593 | 6,009,546 |
Trading account assets: | 43,207 | 44,121 |
Equity securities, available-for-sale | 33,404 | 28,643 |
Short-term investments | 21,062 | 114,275 |
Cash equivalents | 17,000 | 26,259 |
Other long-term investments | 225,774 | 242,523 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 171,153 | 158,469 |
Sub-total excluding separate account assets | 6,715,193 | 6,623,836 |
Separate account assets | 111,401,464 | 108,891,268 |
Total assets | 118,116,657 | 115,515,104 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 71,526 | 58,687 |
Total liabilities | 71,526 | 58,687 |
Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 94,550 | 92,082 |
Level 2 | Obligations of U.S. states and their political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 515,466 | 325,654 |
Level 2 | Foreign government bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 70,389 | 38,498 |
Level 2 | All other corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,634,938 | 4,612,357 |
Trading account assets: | 41,213 | 42,131 |
Level 2 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 315,147 | 302,034 |
Trading account assets: | 1,994 | 1,990 |
Level 2 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 443,799 | 498,879 |
Level 2 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 129,304 | 140,042 |
Level 2 | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading account assets: | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 252,682 | 185,018 |
Trading account assets: | 18,369 | 5,540 |
Equity securities, available-for-sale | 853 | 750 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Other long-term investments | 2,327 | 2,115 |
Reinsurance recoverables | 3,023,119 | 4,897,545 |
Receivables from parent and affiliates | 2,550 | 19,203 |
Sub-total excluding separate account assets | 3,299,900 | 5,110,171 |
Separate account assets | 337,406 | 302,924 |
Total assets | 3,637,306 | 5,413,095 |
Future policy benefits | $ 3,117,171 | 4,993,611 |
Payables to parent and affiliates | 0 | |
Total liabilities | $ 3,117,171 | 4,993,611 |
Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 3 | Obligations of U.S. states and their political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 3 | Foreign government bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 3 | All other corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 80,482 | 84,801 |
Trading account assets: | 0 | 0 |
Level 3 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 172,200 | 100,217 |
Trading account assets: | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 3 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Level 3 | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading account assets: | $ 18,369 | $ 5,540 |
Fair Value of Assets and Liab39
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Separate Account assets transferred from Level 1 to Level 2 | $ 0 | $ 0 | $ 0 | $ 1,900,000 | |
Separate Account Assets Invested In Real Estate | $ 84,900,000 | $ 84,900,000 | $ 84,100,000 | ||
Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Capitalization Rates | 5.00% | 5.00% | 5.00% | ||
Discount Rates | 6.50% | 6.50% | 6.75% | ||
Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Capitalization Rates | 10.00% | 10.00% | 10.00% | ||
Discount Rates | 11.00% | 11.00% | 11.00% | ||
Weighted Average | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Capitalization Rates | 6.41% | 6.41% | 6.68% | ||
Discount Rates | 7.37% | 7.37% | 7.66% | ||
Internal Investment Grade | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Net | $ 796,000,000 | $ 796,000,000 | $ 565,000,000 |
Fair Value of Assets and Liab40
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account assets | $ 111,738,870 | $ 109,194,192 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other long-term investments | 51,047 | 29,572 |
Reinsurance recoverables | 3,023,119 | 4,897,545 |
Receivables from parent and affiliates | 173,703 | 177,672 |
Subtotal excluding separate account assets | 9,896,037 | 11,567,629 |
Separate account assets | 111,738,870 | 109,194,192 |
Total assets | 121,634,907 | 120,761,821 |
Future policy benefits | 3,117,171 | 4,993,611 |
Total liabilities | 3,117,171 | 4,993,611 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 19,222 | 6,290 |
Other long-term investments | 2,327 | 2,115 |
Reinsurance recoverables | 3,023,119 | 4,897,545 |
Receivables from parent and affiliates | 2,550 | 19,203 |
Subtotal excluding separate account assets | 3,299,900 | 5,110,171 |
Separate account assets | 337,406 | 302,924 |
Total assets | 3,637,306 | 5,413,095 |
Future policy benefits | 3,117,171 | 4,993,611 |
Total liabilities | 3,117,171 | 4,993,611 |
Level 3 | Fair Value, Measurements, Recurring | Separate account assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account assets | 337,406 | 302,924 |
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 80,482 | 84,801 |
Level 3 | Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 172,200 | 100,217 |
Level 3 | Fair Value, Measurements, Recurring | Internal | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 853 | 750 |
Other long-term investments | 796 | 565 |
Reinsurance recoverables | 3,023,119 | 4,897,545 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 3,049,786 | 4,922,836 |
Total assets | 3,134,677 | 5,006,947 |
Future policy benefits | 3,117,171 | 4,993,611 |
Total liabilities | 3,117,171 | 4,993,611 |
Level 3 | Fair Value, Measurements, Recurring | Internal | Separate account assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account assets | 84,891 | 84,111 |
Level 3 | Fair Value, Measurements, Recurring | Internal | Corporate securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 24,797 | 23,712 |
Level 3 | Fair Value, Measurements, Recurring | Internal | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 221 | 264 |
Level 3 | Fair Value, Measurements, Recurring | External | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 18,369 | 5,540 |
Other long-term investments | 1,531 | 1,550 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 2,550 | 19,203 |
Subtotal excluding separate account assets | 250,114 | 187,335 |
Total assets | 502,629 | 406,148 |
Future policy benefits | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | External | Separate account assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Separate account assets | 252,515 | 218,813 |
Level 3 | Fair Value, Measurements, Recurring | External | Corporate securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 55,685 | 61,089 |
Level 3 | Fair Value, Measurements, Recurring | External | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | $ 171,979 | $ 99,953 |
Fair Value of Assets and Liab41
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value Quantiative Information [Line Items] | ||
Corporate securities | $ 6,456,275 | $ 6,194,564 |
Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 10.12% | 10.00% |
EBITDA multiples | 5 | 6.1 |
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.00% | 0.00% |
Utilization rate | 56.00% | 63.00% |
Withdrawal rate | 74.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 17.00% | 17.00% |
Minimum | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.00% | 0.00% |
Mortality rate | 0.00% | 0.00% |
Premium Payment | 1 | 1 |
Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 15.05% | 11.75% |
EBITDA multiples | 6.5 | 6.1 |
Lapse rate | 14.00% | 14.00% |
NPR spread | 1.68% | 1.30% |
Utilization rate | 96.00% | 96.00% |
Withdrawal rate | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 28.00% | 28.00% |
Maximum | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 12.00% | 15.00% |
NPR spread | 1.68% | 1.30% |
Mortality rate | 20.00% | 18.00% |
Premium Payment | 3.75 | 3.75 |
Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 10.92% | 10.52% |
EBITDA multiples | 6.4 | 6.1 |
Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables - Living Benefits | $ 2,778,497 | $ 4,521,928 |
Level 3 | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables - No Lapse Guarantee | 244,622 | 375,617 |
Level 3 | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Corporate securities | 24,797 | 23,712 |
Level 3 | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 3,117,171 | $ 4,993,611 |
Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years |
Fair Value of Assets and Liab42
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 747 | $ 590 | $ 750 | $ 569 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 106 | 20 | 103 | 41 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (64) | 0 | (64) |
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | |||
Fair Value, end of period | 853 | 546 | 853 | 546 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Short Term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 18 | 18 | ||
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | ||
Asset management fees and other income | 0 | 0 | ||
Included in other comprehensive income (loss) | 0 | 0 | ||
Net investment income | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 18 | 18 | ||
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | ||
Asset management fees and other income | 0 | 0 | ||
Fixed Maturities Available-For-Sale | Corporate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 86,915 | 23,231 | 84,801 | 18,293 |
Included in earnings: | ||||
Realized investment gains (losses), net | (358) | 258 | (296) | 256 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 720 | 48 | 282 | 385 |
Net investment income | 12 | 21 | 6 | 31 |
Purchases | 56,669 | 4,615 | 114,009 | 12,586 |
Sales | (55,002) | (3,800) | (110,035) | (5,191) |
Issuances | 0 | 0 | ||
Settlements | (262) | (1,033) | (1,603) | (1,836) |
Transfers into Level 3 | 0 | 2,231 | 1,530 | 2,231 |
Transfers out of Level 3 | (8,212) | (3,474) | (8,212) | (4,658) |
Other | 0 | |||
Fair Value, end of period | 80,482 | 22,097 | 80,482 | 22,097 |
Included in earnings: | ||||
Realized investment gains (losses), net | (357) | (101) | (357) | (101) |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Asset-Backed Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 201,051 | 106,081 | 100,217 | 80,934 |
Included in earnings: | ||||
Realized investment gains (losses), net | (3) | 113 | (1) | 113 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 179 | (28) | 709 | 107 |
Net investment income | (8) | 66 | (16) | 122 |
Purchases | 38,129 | 0 | 111,759 | 0 |
Sales | (37,131) | 0 | (37,131) | 0 |
Issuances | 0 | 0 | ||
Settlements | (54) | (30,305) | (126) | (33,442) |
Transfers into Level 3 | 2,710 | 1,746 | 47,508 | 31,153 |
Transfers out of Level 3 | (32,673) | (11,494) | (50,719) | (12,808) |
Other | 0 | |||
Fair Value, end of period | 172,200 | 66,179 | 172,200 | 66,179 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Commercial mortgage and other loans | Commercial Mortgage- Backed Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 28,076 | 0 | ||
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | ||
Asset management fees and other income | 0 | 0 | ||
Included in other comprehensive income (loss) | 0 | (2) | ||
Net investment income | 0 | 0 | ||
Purchases | 0 | 28,078 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (28,076) | (28,076) | ||
Fair Value, end of period | 0 | 0 | ||
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | ||
Asset management fees and other income | 0 | 0 | ||
Trading Account Assets- Equity Securities | Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 18,369 | 2,802 | 5,540 | 2,731 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 36 | 2,328 | 107 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | ||
Settlements | 0 | (1,375) | (1,500) | (1,375) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 12,001 | |||
Fair Value, end of period | 18,369 | 1,463 | 18,369 | 1,463 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 38 | 2,283 | 109 |
Other long-term investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 2,141 | 1,247 | 2,115 | 1,168 |
Included in earnings: | ||||
Realized investment gains (losses), net | (206) | 91 | (155) | 91 |
Asset management fees and other income | 6 | 17 | 11 | (5) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 16 | 0 |
Purchases | 386 | 35 | 386 | 136 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | |
Issuances | 0 | |||
Settlements | 0 | (12) | (16) | (12) |
Transfers into Level 3 | 0 | 427 | 0 | 427 |
Transfers out of Level 3 | 0 | 0 | (30) | 0 |
Other | 0 | |||
Fair Value, end of period | 2,327 | 1,805 | 2,327 | 1,805 |
Included in earnings: | ||||
Realized investment gains (losses), net | (206) | 91 | (154) | 91 |
Asset management fees and other income | 6 | 0 | 11 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | |
Reinsurance Recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 5,822,107 | 1,018,443 | 4,897,545 | (376,868) |
Included in earnings: | ||||
Realized investment gains (losses), net | (2,966,250) | 548,605 | (2,206,893) | 1,800,973 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 167,262 | 146,084 | 332,467 | 289,027 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | |
Issuances | 0 | |||
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | |||
Fair Value, end of period | 3,023,119 | 1,713,132 | 3,023,119 | 1,713,132 |
Included in earnings: | ||||
Realized investment gains (losses), net | (2,917,452) | 552,449 | (2,128,845) | 1,803,209 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Receivables from Parent and Affiliates | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 21,169 | 5,124 | 19,203 | 4,121 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 23 | 3 | 2 | 41 |
Net investment income | 0 | 41 | 0 | 0 |
Purchases | 0 | 18,649 | 0 | 18,649 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | |
Issuances | 0 | |||
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 1,986 | 1,985 |
Transfers out of Level 3 | (18,642) | 0 | (18,641) | (979) |
Other | 0 | |||
Fair Value, end of period | 2,550 | 23,817 | 2,550 | 23,817 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Separate Accounts Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 320,397 | 278,638 | 302,924 | 279,842 |
Included in earnings: | ||||
Realized investment gains (losses), net | 1,141 | (284) | 4,620 | 1,985 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 3,253 | 4,046 | 3,295 | 6,722 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 59,372 | 5,191 | 123,825 | 39,769 |
Sales | (46,757) | (1,780) | (97,258) | (42,507) |
Issuances | 0 | 0 | 0 | |
Issuances | 0 | |||
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | |||
Fair Value, end of period | 337,406 | 285,811 | 337,406 | 285,811 |
Included in earnings: | ||||
Realized investment gains (losses), net | 0 | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 3,253 | 4,046 | 3,295 | 6,722 |
Future Policy Benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (5,944,815) | (1,014,755) | (4,993,611) | 348,399 |
Included in earnings: | ||||
Realized investment gains (losses), net | 3,005,834 | (525,399) | 2,229,227 | (1,732,681) |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (178,190) | (160,593) | (352,787) | (316,465) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | |||
Fair Value, end of period | (3,117,171) | (1,700,747) | (3,117,171) | (1,700,747) |
Included in earnings: | ||||
Realized investment gains (losses), net | 2,974,092 | (529,822) | 2,165,005 | (1,735,757) |
Asset management fees and other income | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab43
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Policy loans | $ 1,137,735 | $ 1,123,912 |
Other long-term investments | 333,346 | 298,143 |
Accrued investment income | 93,591 | 90,506 |
Liabilities: | ||
Cash collateral for loaned securities | 109,798 | 65,418 |
Short-term debt | 373,000 | 423,000 |
Long-term debt | 1,281,000 | 1,288,000 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 1,827,180 | 1,784,435 |
Policy loans | 1,137,735 | 1,123,912 |
Other long-term investments | 15,660 | 11,085 |
Cash and cash equivalents | 154,501 | 147,109 |
Accrued investment income | 93,591 | 90,506 |
Receivables from parent and affiliates | 80,110 | 70,668 |
Other assets | 28,384 | 24,126 |
Total assets | 3,337,161 | 3,251,841 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,115,714 | 969,757 |
Cash collateral for loaned securities | 109,798 | 65,418 |
Short-term debt | 377,016 | 429,903 |
Long-term debt | 1,311,375 | 1,321,501 |
Payables to parent and affiliates | 55,039 | 53,027 |
Other liabilities | 305,340 | 315,736 |
Total liabilities | 3,274,282 | 3,155,342 |
Fair Value | Level 1 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | $ 0 | 0 |
Other long-term investments | 0 | |
Cash and cash equivalents | $ 51,278 | 53,476 |
Accrued investment income | 0 | |
Receivables from parent and affiliates | 0 | |
Other assets | 0 | |
Total assets | $ 51,278 | 53,476 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | $ 0 | 0 |
Cash collateral for loaned securities | 0 | |
Short-term debt | 0 | |
Long-term debt | 0 | |
Payables to parent and affiliates | 0 | |
Other liabilities | 0 | |
Total liabilities | $ 0 | 0 |
Fair Value | Level 2 | ||
Assets: | ||
Commercial mortgage and other loans | 8,448 | 8,486 |
Policy loans | $ 0 | 0 |
Other long-term investments | 0 | |
Cash and cash equivalents | $ 103,223 | 93,633 |
Accrued investment income | 93,591 | 90,506 |
Receivables from parent and affiliates | 80,110 | 70,668 |
Other assets | 28,384 | 24,126 |
Total assets | 313,756 | 287,419 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 885,644 | 929,694 |
Cash collateral for loaned securities | 109,798 | 65,418 |
Short-term debt | 377,016 | 429,903 |
Long-term debt | 1,311,375 | 1,321,501 |
Payables to parent and affiliates | 55,039 | 53,027 |
Other liabilities | 305,340 | 315,736 |
Total liabilities | 3,044,212 | 3,115,279 |
Fair Value | Level 3 | ||
Assets: | ||
Commercial mortgage and other loans | 1,818,732 | 1,775,949 |
Policy loans | 1,137,735 | 1,123,912 |
Other long-term investments | 15,660 | 11,085 |
Cash and cash equivalents | $ 0 | 0 |
Accrued investment income | 0 | |
Receivables from parent and affiliates | 0 | |
Other assets | 0 | |
Total assets | $ 2,972,127 | 2,910,946 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | $ 230,070 | 40,063 |
Cash collateral for loaned securities | 0 | |
Short-term debt | 0 | |
Long-term debt | 0 | |
Payables to parent and affiliates | 0 | |
Other liabilities | 0 | |
Total liabilities | $ 230,070 | 40,063 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 1,747,153 | 1,681,553 |
Policy loans | 1,137,735 | 1,123,912 |
Other long-term investments | 14,830 | 10,168 |
Cash and cash equivalents | 154,501 | 147,109 |
Accrued investment income | 93,591 | 90,506 |
Receivables from parent and affiliates | 80,110 | 70,689 |
Other assets | 28,384 | 24,126 |
Total assets | 3,256,304 | 3,148,063 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,123,260 | 976,190 |
Cash collateral for loaned securities | 109,798 | 65,418 |
Short-term debt | 373,000 | 423,000 |
Long-term debt | 1,281,000 | 1,288,000 |
Payables to parent and affiliates | 55,039 | 53,027 |
Other liabilities | 305,340 | 315,736 |
Total liabilities | $ 3,247,437 | $ 3,121,371 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional | $ 57,509,543 | $ 43,902,689 |
Assets | 226,570 | 243,118 |
Liabilities | (71,526) | (58,687) |
FV Of Embedded Derivatives Included In Future Policy Benefits | 3,117,000 | 4,994,000 |
UPARC Embedded Derivative | 245,000 | 376,000 |
Gross Asset Amount | ||
Derivative [Line Items] | ||
FV Of Embedded Derivatives Included In Reinsurance Recoverable | 2,778,000 | 4,522,000 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 358,065 | 291,100 |
Assets | 28,365 | 14,733 |
Liabilities | (3,829) | (3,008) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 358,065 | 291,100 |
Assets | 28,365 | 14,733 |
Liabilities | (3,829) | (3,008) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 57,151,478 | 43,611,589 |
Assets | 198,205 | 228,385 |
Liabilities | (67,697) | (55,679) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 155,246 | 101,653 |
Assets | 10,847 | 6,677 |
Liabilities | (1,074) | (712) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 3,184,400 | 3,184,400 |
Assets | 147,160 | 192,181 |
Liabilities | (49,507) | (20,574) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 22,919 | 1,025 |
Assets | 5 | 40 |
Liabilities | (129) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 7,275 | 12,275 |
Assets | 112 | 150 |
Liabilities | (417) | (513) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 567,668 | 577,054 |
Assets | 9,067 | 2,405 |
Liabilities | 0 | (19,670) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 53,213,970 | 39,735,182 |
Assets | 31,014 | 26,932 |
Liabilities | $ (16,570) | $ (14,210) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 226,570 | $ 243,118 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 103,223 | 93,633 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 103,223 | 93,633 |
Financial Instruments/Collateral | (103,223) | (93,633) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 328,961 | 336,156 |
Gross Amounts Offset in the Statement of Financial Position | (177,054) | (215,066) |
Net Amounts Presented in the Statement of Financial Position | 151,907 | 121,090 |
Financial Instruments/Collateral | (112,884) | (100,827) |
Net Amount | 39,023 | 20,263 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 71,526 | 58,687 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 71,526 | 58,687 |
Gross Amounts Offset in the Statement of Financial Position | (71,526) | (58,687) |
Net Amounts Presented in the Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Counterparty | ||
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 225,738 | 242,523 |
Gross Amounts Offset in the Statement of Financial Position | (177,054) | (215,066) |
Net Amounts Presented in the Statement of Financial Position | 48,684 | 27,457 |
Financial Instruments/Collateral | (9,661) | (7,194) |
Net Amount | 39,023 | 20,263 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 71,526 | 58,687 |
Gross Amounts Offset in the Statement of Financial Position | (71,526) | (58,687) |
Net Amounts Presented in the Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ (172,883) | $ 27,443 | $ (116,162) | $ 111,565 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 711 | 264 | 1,248 | 517 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (1,384) | (347) | 15 | (404) |
Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (11,795) | (2,500) | 12,901 | (2,392) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 711 | 264 | 1,248 | 517 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (1,347) | (329) | (83) | (400) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (11,795) | (2,500) | 12,901 | (2,392) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 711 | 264 | 1,248 | 517 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (1,347) | (329) | (83) | (400) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (11,795) | (2,500) | 12,901 | (2,392) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (172,883) | 27,443 | (116,162) | 111,565 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (37) | (18) | 98 | (4) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (164,405) | 70,929 | (49,273) | 162,506 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (84) | (17) | 52 | (14) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (3,715) | (273) | 4,551 | 654 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (37) | (18) | 98 | (4) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (88) | (116) | (163) | (158) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (5,845) | (26,232) | (21,170) | (34,315) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains/(Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 1,254 | (16,848) | (50,159) | (17,108) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance | $ 11,585 |
Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2015 | 14,179 |
Amount reclassified into current period earnings | (1,278) |
Balance | $ 24,486 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Maximum length of time hedged in cash flow hedge | 19 years | |
Credit Protection Purchased Notional Amounts | $ 7 | $ 12 |
Credit Derivative Protection Purchased Fair Value (less than) | $ 1 | $ 1 |
Commitments, Contingent Liabi49
Commitments, Contingent Liabilities And Litigation And Regulatory Matters (Details) $ in Millions | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligation Commercial Mortgage Loan | $ 62 |
Purchase Obligation To Purchase Or Fund Investments | 153 |
Loss Contingency, Range of Possible Loss, Minimum | 0 |
Loss Contingency, Range of Possible Loss, Maximum | $ 6 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | Jul. 01, 2014USD ($) | Jan. 01, 2014 | Jul. 01, 2013 | Dec. 31, 2009 | Jan. 31, 2001 | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2011USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)policy | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013 | Jun. 30, 2012USD ($) | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2013USD ($) |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock or Unit Option Plan Expense (less than) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 2,000,000 | 2,000,000 | 4,000,000 | 4,000,000 | ||||||||||||||||
Pension Expense | 5,000,000 | 5,000,000 | $ 11,000,000 | 9,000,000 | ||||||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent (up to) | 4.00% | |||||||||||||||||||
Defined Contribution Plan, Cost Recognized | 2,000,000 | 2,000,000 | $ 4,000,000 | 4,000,000 | ||||||||||||||||
Commissions Paid To PAD | 211,000,000 | 223,000,000 | 415,000,000 | 425,000,000 | ||||||||||||||||
Life Insurance, Corporate or Bank Owned, Amount | $ 2,948,000,000 | $ 2,812,000,000 | 2,948,000,000 | 2,948,000,000 | $ 2,812,000,000 | |||||||||||||||
Fees related to corporate owned life insurance | 10,000,000 | 10,000,000 | 21,000,000 | 21,000,000 | ||||||||||||||||
Maximum amount of mortality risk | $ 3,500,000 | |||||||||||||||||||
AST Revenue Sharing Income | 98,000,000 | 90,000,000 | 193,000,000 | 176,000,000 | ||||||||||||||||
PSF Revenue Sharing Income | 3,000,000 | 3,000,000 | 6,000,000 | 6,000,000 | ||||||||||||||||
PIM Management Expenses | 4,000,000 | 4,000,000 | 8,000,000 | 7,000,000 | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | |||||||||||||||||
Interest Expense | $ 13,200,000 | $ 12,900,000 | $ 26,400,000 | $ 26,000,000 | ||||||||||||||||
Dividend | $ 230,000,000 | $ 410,000,000 | $ 338,000,000 | |||||||||||||||||
Prudential Insurance | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number Of Corporate Owned Life Insurance Policies Sold | policy | 5 | |||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |||||||||||||||||||
Prudential Financial | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number Of Corporate Owned Life Insurance Policies Sold | policy | 1 | |||||||||||||||||||
Affiliated Entity | UPARC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 27.00% | 90.00% | 27.00% | 27.00% | ||||||||||||||||
Reinsurance Retention Policy, Amount Retained | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Percentage | 30.00% | 100.00% | 30.00% | 30.00% | ||||||||||||||||
Reinsurance Retention Policy, Uncollected Charges And Fees Risk, Percentage | 30.00% | 100.00% | 30.00% | 30.00% | ||||||||||||||||
Affiliated Entity | PAR U | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 70.00% | 95.00% | 70.00% | |||||||||||||||||
Affiliated Entity | PURC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | 70.00% | |||||||||||||||||
Affiliated Entity | PARCC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | |||||||||||||||||||
Affiliated Entity | PAR Term | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||||||||
Affiliated Entity | Term Re | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||||||||
Affiliated Entity | Prudential of Taiwan | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related Party Transaction, Term | 2 years |
Related Party Transactions (Rei
Related Party Transactions (Reinsurance With Affiliates) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Reinsurance recoverable | $ 19,642,472 | $ 20,594,371 |
Policy loans | (72,935) | (69,501) |
Deferred policy acquisition costs | (1,963,446) | (1,709,625) |
Other assets | 37,745 | 39,458 |
Policyholders’ account balances | 5,007,077 | 4,827,071 |
Future policy benefits and other policyholder liabilities | 2,168,000 | 2,193,735 |
Other liabilities (reinsurance payables) | $ 436,048 | $ 433,627 |
Related Party Transactions (R52
Related Party Transactions (Reinsurance by Counterparty) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | $ 19,642,472 | $ 20,594,371 |
UPARC | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 275,209 | 407,209 |
PAR U | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 9,444,368 | 9,147,870 |
PURC | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 1,877,750 | 1,564,913 |
PARCC | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 2,537,573 | 2,499,567 |
PAR Term | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 1,120,484 | 1,001,181 |
Term Re | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 192,281 | 97,099 |
Prudential Insurance | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 188,872 | 188,466 |
Pruco Re | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 2,779,245 | 4,522,665 |
Prudential of Taiwan | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | 1,213,912 | 1,157,881 |
Unaffiliated | ||
Related Party Transaction [Line Items] | ||
Reinsurance recoverable | $ 12,778 | $ 7,520 |
Related Party Transactions (Amo
Related Party Transactions (Amounts Included In IS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Premiums: | ||||
Direct | $ 383,312 | $ 352,491 | $ 749,555 | $ 692,059 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (359,830) | (334,484) | (710,436) | (658,807) |
Net Premiums | 23,482 | 18,007 | 39,119 | 33,252 |
Policy charges and fee income: | ||||
Direct | 694,126 | 688,988 | 1,426,691 | 1,352,773 |
Assumed | (13,919) | 135,518 | 155,292 | 226,349 |
Ceded | (150,174) | (301,310) | (511,185) | (542,301) |
Net policy charges and fee income | 530,033 | 523,196 | 1,070,798 | 1,036,821 |
Net investment income: | ||||
Direct | 102,306 | 104,007 | 206,354 | 202,998 |
Assumed | 364 | 340 | 693 | 678 |
Ceded | (1,184) | (1,127) | (2,141) | (1,979) |
Net investment income | 101,486 | 103,220 | 204,906 | 201,697 |
Net other income: | ||||
Direct | 12,841 | 13,167 | 25,152 | 26,574 |
Assumed & Ceded | 2,172 | 0 | 7,078 | 0 |
Net other income | 15,013 | 13,167 | 32,230 | 26,574 |
Interest credited to policyholders’ account balances: | ||||
Direct | 73,790 | 105,230 | 216,195 | 206,123 |
Assumed | 32,790 | 30,984 | 61,615 | 60,231 |
Ceded | (58,337) | (52,438) | (112,090) | (102,775) |
Net interest credited to policyholders’ account balances | 48,243 | 83,776 | 165,720 | 163,579 |
Policyholders’ benefits (including change in reserves): | ||||
Direct | 466,298 | 466,514 | 952,425 | 963,994 |
Assumed | (12,799) | 137,403 | 223,085 | 320,078 |
Ceded | (396,233) | (531,786) | (1,059,843) | (1,126,906) |
Net policyholders’ benefits (including change in reserves) | 57,266 | 72,131 | 115,667 | 157,166 |
Net reinsurance expense allowances, net of capitalization and amortization | (17,371) | (64,615) | (87,083) | (128,167) |
Realized investment gains (losses), net: | ||||
Direct | 2,834,402 | (477,059) | 2,167,967 | (1,598,581) |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (3,005,058) | 508,727 | (2,279,598) | 1,715,780 |
Total realized investment gains (losses), net | $ (170,656) | $ 31,668 | $ (111,631) | $ 117,199 |
Related Party Transactions (Lif
Related Party Transactions (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Related Party Transactions [Abstract] | ||
Direct gross life insurance face amount in force | $ 739,363,094 | $ 685,708,205 |
Assumed gross life insurance face amount in force | 44,015,996 | 45,005,228 |
Reinsurance ceded | (722,711,390) | (671,295,042) |
Net life insurance face amount in force | $ 60,667,700 | $ 59,418,391 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Asset Transfers) (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Prudential Insurance March 14 Purchase | |
Related Party [Line Items] | |
Fair Value | $ 13 |
Book Value | 13 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | 0 |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
Prudential Financial September 14 Transfer In | |
Related Party [Line Items] | |
Fair Value | 81 |
Book Value | 77 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | 3 |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
Prudential Financial September 14 Transfer Out | |
Related Party [Line Items] | |
Fair Value | 142 |
Book Value | 136 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | (4) |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
PURC Financial September 14 Transfer Out | |
Related Party [Line Items] | |
Fair Value | 178 |
Book Value | 172 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | 0 |
Realized Investment Gain/(Loss), Net | 6 |
Derivative Gain/(Loss) | (8) |
PALAC October 14 Purchase | |
Related Party [Line Items] | |
Fair Value | 10 |
Book Value | 9 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | 0 |
Realized Investment Gain/(Loss), Net | (1) |
Derivative Gain/(Loss) | 0 |
Prudential Insurance December 14 Purchase | |
Related Party [Line Items] | |
Fair Value | 122 |
Book Value | 102 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | (13) |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
PURC December 14 Purchase | |
Related Party [Line Items] | |
Fair Value | 3 |
Book Value | 3 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | 0 |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
Prudential Insurance March 15 Purchase | |
Related Party [Line Items] | |
Fair Value | 92 |
Book Value | 74 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | (12) |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | 0 |
Prudential Insurance June 15 Purchase | |
Related Party [Line Items] | |
Fair Value | 11 |
Book Value | 10 |
Additional Paid-in Capital, Net of Tax Increase/(Decrease) | (1) |
Realized Investment Gain/(Loss), Net | 0 |
Derivative Gain/(Loss) | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party [Line Items] | ||
Amount of Notes | $ 1,654,000 | |
Amount of Notes | $ 1,711,000 | |
Prudential Financial Loan 1 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 0 | |
Amount of Notes | 50,000 | |
Interest Rate | 2.64% | |
Prudential Financial Loan 2 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 11,000 | |
Amount of Notes | 11,000 | |
Interest Rate | 3.61% | |
Prudential Financial Loan 3 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 22,000 | |
Amount of Notes | 22,000 | |
Prudential Financial Loan 3 | Minimum | ||
Related Party [Line Items] | ||
Interest Rate | 3.32% | |
Prudential Financial Loan 3 | Maximum | ||
Related Party [Line Items] | ||
Interest Rate | 3.61% | |
Prudential Insurance Loan 1 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 204,000 | |
Amount of Notes | 204,000 | |
Interest Rate | 3.47% | |
Washington Street Loan 1 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 158,000 | |
Amount of Notes | 237,000 | |
Washington Street Loan 1 | Minimum | ||
Related Party [Line Items] | ||
Interest Rate | 2.44% | |
Washington Street Loan 1 | Maximum | ||
Related Party [Line Items] | ||
Interest Rate | 3.02% | |
Washington Street Loan 2 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 198,000 | |
Amount of Notes | 198,000 | |
Washington Street Loan 2 | Minimum | ||
Related Party [Line Items] | ||
Interest Rate | 1.33% | |
Washington Street Loan 2 | Maximum | ||
Related Party [Line Items] | ||
Interest Rate | 1.87% | |
Washington Street Loan 3 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 39,000 | |
Amount of Notes | 39,000 | |
Washington Street Loan 3 | Minimum | ||
Related Party [Line Items] | ||
Interest Rate | 1.33% | |
Washington Street Loan 3 | Maximum | ||
Related Party [Line Items] | ||
Interest Rate | 1.87% | |
Prudential Financial Loan 4 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 9,000 | |
Amount of Notes | 9,000 | |
Interest Rate | 2.24% | |
Prudential Financial Loan 5 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 23,000 | |
Amount of Notes | 23,000 | |
Interest Rate | 3.19% | |
Prudential Insurance Loan 2 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 120,000 | |
Amount of Notes | 120,000 | |
Interest Rate | 2.60% | |
Prudential Insurance Loan 3 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 130,000 | |
Amount of Notes | 130,000 | |
Interest Rate | 4.39% | |
Prudential Insurance Loan 4 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 250,000 | |
Amount of Notes | 250,000 | |
Interest Rate | 3.64% | |
Prudential Insurance Loan 5 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 30,000 | |
Amount of Notes | 30,000 | |
Interest Rate | 1.89% | |
Prudential Insurance Loan 6 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 40,000 | |
Amount of Notes | 40,000 | |
Interest Rate | 3.95% | |
Prudential Insurance Loan 7 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 20,000 | |
Amount of Notes | 20,000 | |
Interest Rate | 2.80% | |
Prudential Insurance Loan 8 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 50,000 | |
Amount of Notes | 50,000 | |
Interest Rate | 3.95% | |
Prudential Insurance Loan 9 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 50,000 | |
Amount of Notes | 50,000 | |
Interest Rate | 2.80% | |
Prudential Insurance Loan 10 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 100,000 | |
Amount of Notes | 100,000 | |
Interest Rate | 3.47% | |
Prudential Insurance Loan 11 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 100,000 | |
Amount of Notes | 100,000 | |
Interest Rate | 3.95% | |
Prudential Financial Loan 6 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 5,000 | |
Amount of Notes | 5,000 | |
Interest Rate | 2.57% | |
Prudential Financial Loan 7 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 23,000 | |
Amount of Notes | 23,000 | |
Interest Rate | 3.14% | |
Prudential Financial Loan 8 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 66,000 | |
Amount of Notes | 0 | |
Interest Rate | 3.52% | |
Prudential Financial Loan 9 | ||
Related Party [Line Items] | ||
Amount of Notes | $ 6,000 | |
Amount of Notes | $ 0 | |
Interest Rate | 2.86% |
Uncategorized Items - cik777917
Label | Element | Value |
Corporate Debt Securities [Member] | ||
Securities Loaned, Including Not Subject To Master Netting Arrangement And Assets Other Than Securities Transferred | cik777917_SecuritiesLoanedIncludingNotSubjectToMasterNettingArrangementAndAssetsOtherThanSecuritiesTransferred | $ 103 |
Foreign Government Debt Securities [Member] | ||
Securities Loaned, Including Not Subject To Master Netting Arrangement And Assets Other Than Securities Transferred | cik777917_SecuritiesLoanedIncludingNotSubjectToMasterNettingArrangementAndAssetsOtherThanSecuritiesTransferred | $ 7 |