Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Mar. 23, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | PRUCO LIFE INSURANCE COMPANY | |
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 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Public Float | $ 0 | |
Entity Current Reporting Status | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2016 – $5,552,911; 2015 – $6,775,806) | $ 5,617,549 | $ 6,840,932 |
Equity securities, available-for-sale, at fair value (cost: 2016 – $16,390; 2015 – $54,609) | 16,756 | 51,973 |
Trading account assets, at fair value | 35,328 | 64,612 |
Policy loans | 1,166,456 | 1,143,303 |
Short-term investments | 36,657 | 54,806 |
Commercial mortgage and other loans | 1,150,381 | 1,658,235 |
Other long-term investments | 344,463 | 379,237 |
Total investments | 8,367,590 | 10,193,098 |
Cash and cash equivalents | 96,157 | 370,286 |
Deferred policy acquisition costs | 1,341,093 | 5,129,931 |
Accrued investment income | 87,322 | 100,031 |
Reinsurance recoverables | 28,674,226 | 22,691,491 |
Receivables from parent and affiliates | 213,952 | 228,253 |
Deferred sales inducements | 0 | 684,844 |
Other assets | 279,222 | 59,578 |
Separate account assets | 116,606,428 | 109,350,121 |
TOTAL ASSETS | 155,665,990 | 148,807,633 |
LIABILITIES | ||
Policyholders’ account balances | 18,894,893 | 17,204,824 |
Future policy benefits | 16,503,260 | 15,198,755 |
Securities sold under agreements to repurchase | 68,904 | 0 |
Cash collateral for loaned securities | 74,976 | 40,416 |
Income taxes | 97,400 | 138,639 |
Short-term debt to affiliates | 0 | 180,000 |
Long-term debt to affiliates | 0 | 1,204,000 |
Payables to parent and affiliates | 73,628 | 72,791 |
Other liabilities | 849,698 | 935,662 |
Separate account liabilities | 116,606,428 | 109,350,121 |
TOTAL LIABILITIES | 153,169,187 | 144,325,208 |
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 | 986,062 | 779,973 |
Retained earnings | 1,437,266 | 3,635,147 |
Accumulated other comprehensive income | 70,975 | 64,805 |
TOTAL EQUITY | 2,496,803 | 4,482,425 |
TOTAL LIABILITIES AND EQUITY | $ 155,665,990 | $ 148,807,633 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 5,552,911 | $ 6,775,806 |
Equity securities, available-for-sale, cost | $ 16,390 | $ 54,609 |
Common stock, par value (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 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | |||
Premiums | $ (825,942) | $ 77,634 | $ 66,206 |
Policy charges and fee income | 787,195 | 2,156,387 | 2,071,039 |
Net investment income | 375,950 | 416,587 | 404,018 |
Asset administration fees | 84,443 | 362,321 | 377,127 |
Other income | 31,107 | 55,515 | 57,827 |
Realized investment gains (losses), net: | |||
Other-than-temporary impairments on fixed maturity securities | (18,020) | (1,514) | (483) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 343 | 51 | 356 |
Other realized investment gains (losses), net | 776,126 | (207,075) | 114,194 |
Total realized investment gains (losses), net | 758,449 | (208,538) | 114,067 |
TOTAL REVENUES | 1,211,202 | 2,859,906 | 3,090,284 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | (260,200) | 299,150 | 353,697 |
Interest credited to policyholders’ account balances | 301,220 | 374,211 | 368,315 |
Amortization of deferred policy acquisition costs | 628,101 | 659,169 | 431,812 |
General, administrative and other expenses | 220,733 | 1,030,014 | 1,019,723 |
TOTAL BENEFITS AND EXPENSES | 889,854 | 2,362,544 | 2,173,547 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 321,348 | 497,362 | 916,737 |
Total income tax expense (benefit) | (73,869) | (10,641) | 137,069 |
NET INCOME (LOSS) | 395,217 | 508,003 | 779,668 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (8) | (507) | (723) |
Unrealized investment gains (losses) for the period | 74,040 | (164,799) | 207,134 |
Reclassification adjustment for (gains) losses included in net income | (64,540) | (9,902) | (18,649) |
Net unrealized investment gains (losses) | 9,500 | (174,701) | 188,485 |
Other comprehensive income (loss), before tax | 9,492 | (175,208) | 187,762 |
Less: Income tax expense (benefit) related to: | |||
Foreign currency translation adjustments | (3) | (177) | (253) |
Net unrealized investment gains (losses) | 3,325 | (61,145) | 65,970 |
Total | 3,322 | (61,322) | 65,717 |
Other comprehensive income (loss), net of tax | 6,170 | (113,886) | 122,045 |
COMPREHENSIVE INCOME (LOSS) | $ 401,387 | $ 394,117 | $ 901,713 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Equity |
Beginning Balance at Dec. 31, 2013 | $ 2,500 | $ 804,237 | $ 3,525,476 | $ 56,646 | $ 4,388,859 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | |||||
Dividend to parent | (748,000) | (748,000) | ||||
Contributed (distributed) capital-parent/child asset transfers | (12,084) | (12,084) | ||||
Comprehensive income: | ||||||
Net income (loss) | $ 779,668 | 779,668 | 779,668 | |||
Other comprehensive income (loss), net of tax | 122,045 | 122,045 | 122,045 | |||
Total comprehensive income (loss) | 901,713 | |||||
Ending Balance at Dec. 31, 2014 | 2,500 | 792,153 | 3,557,144 | 178,691 | 4,530,488 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | |||||
Dividend to parent | (430,000) | (430,000) | ||||
Contributed (distributed) capital-parent/child asset transfers | (12,180) | (12,180) | ||||
Comprehensive income: | ||||||
Net income (loss) | 508,003 | 508,003 | 508,003 | |||
Other comprehensive income (loss), net of tax | (113,886) | (113,886) | (113,886) | |||
Total comprehensive income (loss) | 394,117 | |||||
Ending Balance at Dec. 31, 2015 | 2,500 | 779,973 | 3,635,147 | 64,805 | 4,482,425 | |
Comprehensive income: | ||||||
Net income (loss) | (328,199) | (328,199) | (328,199) | |||
Total comprehensive income (loss) | (212,872) | |||||
Ending Balance at Mar. 31, 2016 | 3,306,948 | 4,274,493 | ||||
Beginning Balance at Dec. 31, 2015 | 2,500 | 779,973 | 3,635,147 | 64,805 | 4,482,425 | |
Comprehensive income: | ||||||
Net income (loss) | 395,785 | 395,785 | 395,785 | |||
Total comprehensive income (loss) | 571,996 | |||||
Ending Balance at Jun. 30, 2016 | 1,437,413 | 2,666,992 | ||||
Beginning Balance at Dec. 31, 2015 | 2,500 | 779,973 | 3,635,147 | 64,805 | 4,482,425 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 205,000 | 205,000 | ||||
Dividend to parent | (2,593,098) | (2,593,098) | ||||
Contributed (distributed) capital-parent/child asset transfers | 1,089 | 1,089 | ||||
Comprehensive income: | ||||||
Net income (loss) | 395,217 | 395,217 | 395,217 | |||
Other comprehensive income (loss), net of tax | 6,170 | 6,170 | 6,170 | |||
Total comprehensive income (loss) | 401,387 | |||||
Ending Balance at Dec. 31, 2016 | $ 2,500 | $ 986,062 | 1,437,266 | $ 70,975 | 2,496,803 | |
Beginning Balance at Mar. 31, 2016 | 3,306,948 | 4,274,493 | ||||
Comprehensive income: | ||||||
Net income (loss) | $ 723,984 | |||||
Ending Balance at Jun. 30, 2016 | $ 1,437,413 | $ 2,666,992 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 395,217 | $ 508,003 | $ 779,668 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Policy charges and fee income | 113,501 | (8,770) | (72,375) |
Interest credited to policyholders’ account balances | 301,220 | 374,211 | 368,315 |
Realized investment (gains) losses, net | (758,449) | 208,538 | (114,067) |
Depreciation, Depletion and Amortization, Nonproduction | (70,104) | (68,070) | (62,723) |
Change in: | |||
Future policy benefits | 1,816,665 | 1,534,228 | 1,440,542 |
Reinsurance recoverables | (1,764,242) | (1,559,165) | (1,330,796) |
Accrued investment income | 12,709 | (9,525) | (2,174) |
Net payables to/receivables from parent and affiliates | (9,851) | 20,299 | 18,037 |
Deferred policy acquisition costs | 311,273 | 43,168 | (194,907) |
Income taxes | (45,147) | (36,879) | 65,900 |
Derivatives, net | (198,861) | 60,517 | 155,556 |
Other, net | (110,850) | 76,374 | 26,716 |
Cash flows from (used in) operating activities | (6,919) | 1,142,929 | 1,077,692 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 1,371,000 | 813,721 | 907,665 |
Short-term investments | 260,027 | 823,112 | 409,804 |
Policy loans | 137,778 | 135,449 | 121,644 |
Ceded policy loans | (8,989) | (9,129) | (9,753) |
Commercial mortgage and other loans | 209,263 | 219,379 | 113,073 |
Other long-term investments | 12,479 | 15,633 | 5,361 |
Equity securities, available-for-sale | 34,618 | 5,760 | 17,854 |
Trading account assets | 1,595 | 1,500 | 1,375 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (2,465,763) | (1,719,015) | (1,340,010) |
Short-term investments | (241,827) | (755,145) | (514,524) |
Policy loans | (120,628) | (110,165) | (114,037) |
Ceded policy loans | 18,054 | 13,850 | 10,960 |
Commercial mortgage and other loans | (312,898) | (196,538) | (320,155) |
Other long-term investments | (32,307) | (49,004) | (47,096) |
Equity securities, available-for-sale | (5,000) | (31,063) | (45,101) |
Trading account assets | 0 | (19,001) | (32,060) |
Notes receivable from parent and affiliates, net | 20,463 | 35,350 | (7,831) |
Derivatives, net | 20,954 | (12,164) | (11,329) |
Other, net | (261) | (584) | 616 |
Cash flows from (used in) investing activities | (1,101,442) | (838,054) | (853,544) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Policyholders’ account deposits | 4,289,697 | 3,839,784 | 2,966,388 |
Ceded policyholders’ account deposits | (2,430,570) | (1,109,311) | (672,242) |
Policyholders’ account withdrawals | (2,505,219) | (2,134,373) | (1,730,977) |
Ceded policyholders’ account withdrawals | 1,072,151 | 50,016 | 46,690 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 103,463 | (25,002) | (19,449) |
Dividend to parent | 0 | (430,000) | (748,000) |
Contributed capital | 405,321 | 0 | 0 |
Contributed (distributed) capital - parent/child asset transfers | 1,676 | (18,739) | (17,306) |
Net change in financing arrangements (maturities 90 days or less) | 0 | 0 | (2,900) |
Proceeds from the issuance of debt (maturities longer than 90 days) | 0 | 412,000 | 418,000 |
Repayments of debt (maturities longer than 90 days) | (125,000) | (739,000) | (571,000) |
Drafts outstanding | 22,713 | 5,084 | 14,357 |
Cash flows from (used in) financing activities | 834,232 | (149,541) | (316,439) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (274,129) | 155,334 | (92,291) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 370,286 | 214,952 | 307,243 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 96,157 | 370,286 | 214,952 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid/(received) | (28,772) | 26,237 | 129,430 |
Interest paid | $ 16,263 | $ 53,122 | $ 62,664 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows - Significant Non Cash Transactions (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Statement of Cash Flows [Abstract] | |
Decrease From Reinsurance Amendments During Noncash or Partial Noncash Transaction | $ 178 |
Decrease From Noncash Tax Settlement With Affiliate | $ 61 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company, (“Pruco Life”) 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 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 has two subsidiaries, including one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey, (“PLNJ”) and one indirect subsidiary formed in 2009 for the purpose of holding certain commercial loan investments. Pruco Life and its subsidiaries are together referred to as the "Company", "we" or "our" and all financial information is shown 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. Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to an affiliated reinsurance company, Pruco Reinsurance, Ltd. ("Pruco Re"). Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, to Prudential Annuities Life Assurance Corporation ("PALAC"), excluding the PLNJ business, which was reinsured to Prudential Insurance, in each case under a coinsurance and modified coinsurance agreement. These reinsurance agreements cover new and in force business and exclude business reinsured externally. The product risks related to the reinsured business are being managed in PALAC and Prudential Insurance. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within PALAC and Prudential Insurance as applicable. These series of transactions are collectively referred to as the "Variable Annuities Recapture". The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 10,702 $ 4,166 $ (7,719 ) $ 7,149 Cash and cash equivalents 496 0 12 508 Deferred policy acquisition costs 4,565 0 (3,449 ) 1,116 Reinsurance recoverables 24,781 (6,312 ) 10,267 28,736 Deferred sales inducements 550 0 (550 ) 0 Other assets 94 0 211 305 Income taxes 0 0 23 23 TOTAL ASSETS 151,859 (2,146 ) (1,205 ) 148,508 LIABILITIES AND EQUITY LIABILITIES Income taxes $ 91 $ 17 $ 0 $ 108 Short-term and long-term debt to affiliates(2) 1,385 0 (1,384 ) 1 Other liabilities 870 0 0 870 TOTAL LIABILITIES 147,554 17 (1,384 ) 146,187 EQUITY Retained earnings(3) 3,337 (2,163 ) 258 1,432 Accumulated other comprehensive income 180 0 (79 ) 101 TOTAL EQUITY 4,305 (2,163 ) 179 2,321 TOTAL LIABILITIES AND EQUITY 151,859 (2,146 ) (1,205 ) 148,508 Significant Non-Cash Transactions (1) The decline in total investments includes non-cash activities of $ 7.7 billion for asset transfers related to the reinsurance transaction with PALAC and Prudential Insurance, partially offset by $ 4.2 billion of assets received related to the recapture transaction with Pruco Re. (2) The Company received ceding commissions of $ 3.6 billion and $ 0.4 billion from PALAC and Prudential Insurance, respectively, of which $ 1.1 billion and $ 0.1 billion were in the form of reassignment of debt to PALAC and Prudential Insurance, respectively. (3) Retained earnings includes dividends of $ 2.8 billion to Prudential Insurance, and then distributed to Prudential Financial, as part of the Variable Annuities Recapture. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ (880 ) $ (880 ) Realized investment gains (losses), net (2,146 ) 2,951 805 TOTAL REVENUES (2,146 ) 2,071 (75 ) BENEFITS AND EXPENSES Policyholders' benefits 0 (547 ) (547 ) General, administrative and other expenses 0 (211 ) (211 ) TOTAL BENEFITS AND EXPENSES 0 (758 ) (758 ) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (2,146 ) 2,829 683 Income tax expense (benefit) 17 (23 ) (6 ) NET INCOME (LOSS) $ (2,163 ) $ 2,852 $ 689 As part of the Variable Annuities Recapture, the Company received invested assets of $4.2 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016 and unwound the associated reinsurance recoverable of $6.3 billion . As a result, the Company recognized a loss of $2.1 billion immediately. As part of the Variable Annuities Recapture, the Company transferred invested assets of $7 billion and $0.7 billion to PALAC and Prudential Insurance, respectively, and established reinsurance recoverables of $10.3 billion . In addition, the Company received ceding commissions of $3.6 billion and $0.4 billion from PALAC and Prudential Insurance, respectively, of which $1.1 billion and $0.1 billion were in the form of reassignment of debt to PALAC and Prudential Insurance, respectively. Also, the Company unwound its deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances related to its variable annuity contracts as of March 31, 2016, which was equivalent to the ceding commission. For the reinsurance of the variable annuity base contracts, the Company recognized a loss of $0.2 billion , which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a benefit of $2.8 billion immediately since the reinsurance contract is accounted for as a free-standing derivative. The Company paid a dividend of $2.6 billion to Prudential Insurance, which was then distributed to Prudential Financial. The following table summarizes the asset transfers related to Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC and Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 4,166 $ 4,166 $ 0 $ 0 PALAC Apr - June 2016 Sale Fixed Maturity, Trading Account Assets, Commercial Mortgages, Derivatives and JV/LP Investments $ (6,994 ) $ (6,872 ) $ 0 $ 122 Prudential Insurance Apr - June 2016 Dividend Fixed Maturity $ (19 ) $ (19 ) $ (19 ) $ 0 Prudential Insurance Apr - June 2016 Sale Fixed Maturity, Trading Account Assets, Equity Securities, Commercial Mortgages and Derivatives $ (717 ) $ (703 ) $ 15 $ 0 Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. 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 DAC and related amortization; amortization of DSI; 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 accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. Out of Period Adjustments As previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2015, during 2015, the Company recorded out of period adjustments resulting in a net decrease of $32 million to "Income (loss) from operations before income taxes" for the year ended December 31, 2015. These adjustments primarily relate to reserve, DAC and related amortization impacts for certain variable annuities products with optional living benefit guarantees. Management has evaluated the impact of all out of period adjustments, both individually and in the aggregate, and concluded that they are not material to any previously reported quarterly or annual financial statements. Revision to Prior Period Consolidated Financial Statements In 2016, the Company identified errors in the calculation of reserves for certain individual life products that impacted several line items within our previously issued consolidated financial statements. Prior period amounts have been revised in the Consolidated Financial Statements and related disclosures to correct these errors. In addition, the Company identified errors in the presentation of certain activity related to the Variable Annuities Recapture that impacted several line items within our previously issued Consolidated Statements of Cash Flows. While these items affect the subtotals of cash flows from operating, investing and financing activities, they have no impact on the net increase (decrease) in cash and cash equivalents for the previous reported periods. Prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. See Note 16 for a more detailed description of the revisions and for comparisons of amounts previously reported to the revised amounts. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Investments The Company’s principal investments are fixed maturities; equity securities; commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 9 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to "Net investment income" in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets, at fair value represents equity securities held in support of a deferred compensation plan and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value is comprised of common stock and non-redeemable preferred stock, and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, DSI, future policy benefits, reinsurance recoverables and policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income". Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consist of the Company’s investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) it is more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, DSI, certain future policy benefits, reinsurance recoverables, policyholders’ account balances and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs”, net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 12 . Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. DAC related to non-participating traditional individual life insurance is amortized in proportion to gross premiums. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 4 for additional information regarding DAC. Deferred Sales Inducements The Company offers various types of sales inducements to contractholders primarily related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducements balances are subject to periodic recoverability testing. The Company records amortization of deferred sales inducements in “Interest credited to policyholders’ account balances.” Deferred sales inducements for applicable products are adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 6 for additional information regarding sales inducements. Reinsurance recoverables Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third-party reinsurers. For additional information about these affiliated arrangements see Note 12 . Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders and other customers. The assets consist primarily of equity securities and real estate related investments. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the contractholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See Note 6 to the Consolidated Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s consolidated results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Other Assets and Other Liabilities Other assets consist primarily of premiums due, deferred loss on reinsurance with affiliates and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Other liabilities consist primarily of accrued expenses, reinsurance payables, technical overdrafts, deferred gain on reinsurance with affiliates and payables resulting from purchases of securities that had not yet been settled at the balance sheet date. Future Policy Benefits The Company’s liability for future policy benefits includes liabilities related to certain long-duration life and annuity contracts, which are discussed more fully in Note 6 . These liabilities represent reserves for the guaranteed minimum death and optional living benefit features on our variable annuity products and no lapse guarantees for our variable and universal life products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 6 and Note 9 . The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders related to contracts that have fixed and guaranteed terms, where the timing and amount of payment depends on policyholder mortality and maintenance expenses less the present value of future net premiums. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 5 for additional information regarding future policy benefits. Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. Securities repurchase and resale agreements and securities loaned transactions Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”; however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General, administrative and other expenses”). Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned transactions are with large brokerage firms and large banks. Income and expenses associated with securities loaned transactions used to earn spread income are reported as “Net investment income”; however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General, administrative and other expenses”). Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life co |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 154,180 $ 6,593 $ 33 $ 160,740 $ 0 Obligations of U.S. states and their political subdivisions 618,447 14,592 6,553 626,486 0 Foreign government bonds 111,025 2,143 4,386 108,782 0 Public utilities 706,536 33,950 10,519 729,967 0 Redeemable preferred stock 4,136 834 156 4,814 0 All other U.S. public corporate securities 1,802,350 67,908 28,846 1,841,412 (215 ) All other U.S. private corporate securities 714,776 14,555 7,702 721,629 (236 ) All other foreign public corporate securities 216,428 7,371 4,127 219,672 0 All other foreign private corporate securities 577,761 4,866 33,455 549,172 0 Asset-backed securities(1) 184,414 5,164 562 189,016 (2,534 ) Commercial mortgage-backed securities 382,717 5,783 5,829 382,671 0 Residential mortgage-backed securities(2) 80,141 3,355 308 83,188 (274 ) Total fixed maturities, available-for-sale $ 5,552,911 $ 167,114 $ 102,476 $ 5,617,549 $ (3,259 ) Equity securities, available-for-sale: Common stocks: Mutual funds $ 16,324 $ 441 $ 124 $ 16,641 Public utilities 66 2 28 40 Industrial, miscellaneous & other 0 75 0 75 Total equity securities, available-for-sale $ 16,390 $ 518 $ 152 $ 16,756 (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 OTTI losses in AOCI, which were not included in earnings. Amount excludes $8 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, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 87,107 $ 7,170 $ 228 $ 94,049 $ 0 Obligations of U.S. states and their political subdivisions 602,508 24,219 1,958 624,769 0 Foreign government bonds 70,107 3,094 2,791 70,410 0 Public utilities 790,038 30,862 18,402 802,498 0 Redeemable preferred stock 5,316 1,530 145 6,701 0 All other U.S. public corporate securities 2,138,358 81,905 61,142 2,159,121 (217 ) All other U.S. private corporate securities 1,085,345 26,299 13,963 1,097,681 0 All other foreign public corporate securities 270,063 8,230 6,508 271,785 0 All other foreign private corporate securities 784,283 9,933 42,528 751,688 0 Asset-backed securities(1) 431,578 6,203 2,650 435,131 (3,056 ) Commercial mortgage-backed securities 396,160 10,614 2,429 404,345 0 Residential mortgage-backed securities(2) 114,943 7,876 65 122,754 (690 ) Total fixed maturities, available-for-sale $ 6,775,806 $ 217,935 $ 152,809 $ 6,840,932 $ (3,963 ) Equity securities, available-for-sale: Common stocks: Mutual funds $ 54,543 $ 256 $ 3,030 $ 51,769 Public utilities 66 2 29 39 Industrial, miscellaneous & other 0 165 0 165 Total equity securities, available-for-sale $ 54,609 $ 423 $ 3,059 $ 51,973 (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 OTTI losses in AOCI, which were not included in earnings. Amount excludes $9 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 following tables show 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, at December 31 for the years indicated: 2016 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 $ 603 $ 33 $ 0 $ 0 $ 603 $ 33 Obligations of U.S. states and their political subdivisions 239,146 6,553 0 0 239,146 6,553 Foreign government bonds 81,074 4,055 1,690 331 82,764 4,386 Public utilities 207,226 7,847 21,394 2,672 228,620 10,519 Redeemable preferred stock 0 0 0 156 0 156 All other U.S. public corporate securities 568,763 20,695 73,575 8,151 642,338 28,846 All other U.S. private corporate securities 232,561 6,082 29,071 1,620 261,632 7,702 All other foreign public corporate securities 86,492 3,188 5,433 939 91,925 4,127 All other foreign private corporate securities 236,512 13,604 101,858 19,851 338,370 33,455 Asset-backed securities 37,355 492 49,346 70 86,701 562 Commercial mortgage-backed securities 191,674 5,827 947 2 192,621 5,829 Residential mortgage-backed securities 36,224 302 1,045 6 37,269 308 Total fixed maturities, available-for-sale $ 1,917,630 $ 68,678 $ 284,359 $ 33,798 $ 2,201,989 $ 102,476 Equity securities, available-for-sale $ 0 $ 0 $ 2,965 $ 152 $ 2,965 $ 152 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 $ 5,985 $ 228 $ 0 $ 0 $ 5,985 $ 228 Obligations of U.S. states and their political subdivisions 77,756 1,958 0 0 77,756 1,958 Foreign government bonds 44,854 1,940 1,813 851 46,667 2,791 Public utilities 323,086 13,151 26,094 5,251 349,180 18,402 Redeemable preferred stock 0 145 0 0 0 145 All other U.S. public corporate securities 802,158 49,343 61,110 11,799 863,268 61,142 All other U.S. private corporate securities 323,218 12,476 17,103 1,487 340,321 13,963 All other foreign public corporate securities 121,662 5,098 6,079 1,410 127,741 6,508 All other foreign private corporate securities 284,191 14,089 154,791 28,439 438,982 42,528 Asset-backed securities 249,084 1,565 93,675 1,085 342,759 2,650 Commercial mortgage-backed securities 129,765 2,350 4,221 79 133,986 2,429 Residential mortgage-backed securities 18,435 59 1,519 6 19,954 65 Total fixed maturities, available-for-sale $ 2,380,194 $ 102,402 $ 366,405 $ 50,407 $ 2,746,599 $ 152,809 Equity securities, available-for-sale $ 35,869 $ 2,339 $ 9,281 $ 720 $ 45,150 $ 3,059 The gross unrealized losses on fixed maturity securities at December 31, 2016 and 2015 , were composed of $93.3 million and $133.6 million , respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $9.2 million and $19.2 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2016 , the $33.8 million of gross unrealized losses of twelve months or more was concentrated in the energy , finance and utility sectors of the Company’s corporate securities. At December 31, 2015 , the $50.4 million of gross unrealized losses of twelve months or more was concentrated in the energy, consumer non-cyclical, utility and finance sectors of the Company’s corporate securities. In accordance with its policy described in Note 2 , the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at December 31, 2016 or 2015 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses were primarily attributable to interest rate increases. At December 31, 2016 , the Company did 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 the remaining amortized cost basis. At December 31, 2016 , gross unrealized losses related to equity securities representing declines in value of greater than 20% were $0.0 million , all of which had been in that position for more than twelve months. At December 31, 2015 , gross unrealized losses related to equity securities representing declines in value of greater than 20% were $0.0 million , none of which had been in that position for more than twelve months. In accordance with its policy described in Note 2 , the Company concluded that an adjustment to earnings for OTTI for these equity securities was not warranted at either December 31, 2016 or 2015 . The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 , were as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 222,580 $ 220,785 Due after one year through five years 695,311 713,491 Due after five years through ten years 950,127 941,499 Due after ten years 3,037,621 3,086,899 Asset-backed securities 184,414 189,016 Commercial mortgage-backed securities 382,717 382,671 Residential mortgage-backed securities 80,141 83,188 Total fixed maturities, available-for-sale $ 5,552,911 $ 5,617,549 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 and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities for the years indicated: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 833,562 $ 171,589 $ 245,618 Proceeds from maturities/repayments(1) 495,969 642,503 656,249 Gross investment gains from sales, prepayments and maturities 94,262 12,496 20,394 Gross investment losses from sales and maturities (10,475 ) (1,528 ) (2,704 ) Equity securities, available-for-sale: Proceeds from sales(2) $ 34,618 $ 5,732 $ 17,873 Gross investment gains from sales 363 400 1,085 Gross investment losses from sales (1,933 ) 0 0 Fixed maturity and equity security impairments: Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(3) $ (17,677 ) $ (1,463 ) $ (127 ) Writedowns for impairments on equity securities 0 (3 ) 0 (1) Includes $(1.5) million , $0.4 million and $(5.8) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Includes $(0.0) million and $0.0 million of non-cash related proceeds for the years ended December 31, 2015 and 2014 . There were no non-cash related proceeds included for the year ended December 31, 2016 . (3) Excludes the portion of OTTI recorded in OCI 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 , a portion of certain OTTI losses on fixed maturity securities is recognized in 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 table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in thousands) Balance, beginning of period $ 7,041 $ 8,729 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,294 ) (1,719 ) Credit loss impairments recognized in the current period on securities not previously impaired 522 0 Additional credit loss impairments recognized in the current period on securities previously impaired 6 71 Increases due to the passage of time on previously recorded credit losses 242 213 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (339 ) (253 ) Assets transferred to parent and affiliates (658 ) 0 Balance, end of period $ 5,520 $ 7,041 Trading Account Assets The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Fixed maturities $ 23,555 $ 19,558 $ 50,565 $ 46,364 Equity securities 11,929 15,770 14,761 18,248 Total trading account assets $ 35,484 $ 35,328 $ 65,326 $ 64,612 The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Other income,” was $0.6 million , $(3.4) million and $(0.7) million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans were comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Retail $ 243,225 21.1 % $ 440,767 26.7 % Apartments/Multi-Family 318,667 27.7 445,379 27.0 Industrial 185,682 16.1 254,884 15.4 Office 161,980 14.1 226,332 13.6 Other 124,465 10.8 92,581 5.6 Hospitality 54,597 4.7 85,910 5.2 Total commercial mortgage loans 1,088,616 94.5 1,545,853 93.5 Agricultural property loans 63,323 5.5 106,623 6.5 Total commercial mortgage and agricultural property loans by property type 1,151,939 100.0 % 1,652,476 100.0 % Valuation allowance (1,558 ) (2,651 ) Total net commercial mortgage and agricultural property loans by property type 1,150,381 1,649,825 Other loans: Uncollateralized loans 0 8,410 Valuation allowance 0 0 Total net other loans 0 8,410 Total commercial mortgage and other loans $ 1,150,381 $ 1,658,235 The commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California ( 23% ), Texas ( 15% ), and Illinois ( 7% )) and included loans secured by properties in Australia and Europe at December 31, 2016 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, was as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 2,587 $ 64 $ 0 $ 2,651 Addition to (release of) allowance for losses (1,074 ) (19 ) 0 (1,093 ) Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 1,513 $ 45 $ 0 $ 1,558 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 4,071 $ 83 $ 0 $ 4,154 Addition to (release of) allowance for losses (1,484 ) (19 ) 0 (1,503 ) Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 2,587 $ 64 $ 0 $ 2,651 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: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,513 45 0 1,558 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,513 $ 45 $ 0 $ 1,558 Recorded Investment(1): Individually evaluated for impairment $ 2,528 $ 0 $ 0 $ 2,528 Collectively evaluated for impairment 1,086,088 63,323 0 1,149,411 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,088,616 $ 63,323 $ 0 $ 1,151,939 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,587 64 0 2,651 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 2,587 $ 64 $ 0 $ 2,651 Recorded Investment(1): Individually evaluated for impairment $ 0 $ 287 $ 0 $ 287 Collectively evaluated for impairment 1,545,853 106,336 8,410 1,660,599 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,545,853 $ 106,623 $ 8,410 $ 1,660,886 (1) Recorded investment reflects the carrying value gross of related allowance. The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: Debt Service Coverage Ratio - December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 732,473 $ 19,844 $ 0 $ 752,317 60%-69.99% 267,122 7,515 900 275,537 70%-79.99% 88,811 30,533 0 119,344 80% or greater 4,503 0 238 4,741 Total commercial mortgage and agricultural property loans $ 1,092,909 $ 57,892 $ 1,138 $ 1,151,939 Debt Service Coverage Ratio - December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 1,004,751 $ 35,579 $ 6,762 $ 1,047,092 60%-69.99% 378,799 4,969 4,016 387,784 70%-79.99% 197,208 12,471 0 209,679 80% or greater 0 2,938 4,983 7,921 Total commercial mortgage and agricultural property loans $ 1,580,758 $ 55,957 $ 15,761 $ 1,652,476 The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,088,616 $ 0 $ 0 $ 0 $ 1,088,616 $ 0 Agricultural property loans 63,323 0 0 0 63,323 0 Other loans 0 0 0 0 0 0 Total commercial mortgage and other loans $ 1,151,939 $ 0 $ 0 $ 0 $ 1,151,939 $ 0 December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,545,853 $ 0 $ 0 $ 0 $ 1,545,853 $ 0 Agricultural property loans 106,336 287 0 0 106,623 0 Other loans 8,410 0 0 0 8,410 0 Total commercial mortgage and other loans $ 1,660,599 $ 287 $ 0 $ 0 $ 1,660,886 $ 0 (1) There were no loans accruing interest See Note 2 for further discussion regarding non-accrual status loans. For the years ended December 31, 2016 and 2015 , there were no commercial mortgage or other loans acquired, other than those through direct origination, nor were there any commercial mortgage or other loans sold. For the year ended December 31, 2016 , the Company transferred $631 million of commercial mortgage and other loans to related parties. See Note 1 for additional information. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2016 and 2015 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. For the years ended December 31, 2016 and 2015 , there were no new troubled debt restructurings related to commercial mortgage or other loans and no payment defaults on commercial mortgage or other loans that were modified as a troubled debt restructuring within the 12 months preceding. See Note 2 for additional information relating to the accounting for troubled debt restructurings. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in thousands) Company's investment in separate accounts $ 34,088 $ 28,567 Joint ventures and limited partnerships: Private equity 139,493 140,310 Hedge funds 81,104 130,575 Real estate-related 11,912 9,685 Total joint ventures and limited partnerships 232,509 280,570 Derivatives 77,866 70,100 Total other long-term investments $ 344,463 $ 379,237 As of both December 31, 2016 and 2015 , the Company had no significant equity method investments. Net Investment Income The following table sets forth net investment income by asset class for the years ended December 31: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 242,351 $ 269,073 $ 262,532 Equity securities, available-for-sale 1 2 2 Trading account assets 2,051 2,800 1,018 Commercial mortgage and other loans 58,940 86,354 81,848 Policy loans 62,735 62,304 60,847 Short-term investments and cash equivalents 1,767 1,042 528 Other long-term investments 29,512 17,739 16,962 Gross investment income 397,357 439,314 423,737 Less: investment expenses (21,407 ) (22,727 ) (19,719 ) Net investment income $ 375,950 $ 416,587 $ 404,018 The carrying value of non-income producing assets included $0.6 million in fixed maturities as of December 31, 2016 . Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2016 . Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2016 2015 2014 (in thousands) Fixed maturities $ 66,110 $ 9,505 $ 17,563 Equity securities (1,570 ) 397 1,085 Commercial mortgage and other loans 29,584 1,503 4,644 Joint ventures and limited partnerships (229 ) 320 210 Derivatives(1) 664,533 (220,292 ) 90,556 Short-term investments and cash 21 29 9 Realized investment gains (losses), net $ 758,449 $ (208,538 ) $ 114,067 (1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of December 31 for the years indicated: 2016 2015 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 4,883 $ 5,196 $ 5,333 Fixed maturity securities, available-for-sale—all other 59,755 59,930 322,358 Equity securities, available-for-sale 366 (2,636 ) 619 Derivatives designated as cash flow hedges(1) 40,931 48,271 11,585 Other investments 6,497 6,272 10,015 Net unrealized gains (losses) on investments $ 112,432 $ 117,033 $ 349,910 (1) See Note 10 for more information on cash flow hedges. 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 December 31, 2016 , the Company had $74.8 million of securities lending transactions recorded as "Cash collateral for loaned securities," comprised of $68.0 million in corporate securities and $6.8 million in foreign government bonds, all of which had a remaining contractual maturity that was overnight and continuous. As of December 31, 2016 , the Company had $68.9 million of repurchase transactions, all of which were U.S. Treasuries and had remaining contractual maturities that were overnight and continuous. As of December 31, 2015 , the Company had $40.3 million of securities lending transactions recorded as "Cash collateral for loaned securities," comprised of $33.3 million in corporate securities and $7.0 million in foreign government bonds. Of the $40.3 million of securities lending transactions, $38.0 million had remaining contractual maturities that were overnight and continuous, while the other $2.3 million had remaining contractual maturities of up to thirty days. As of December 31, 2015 , the Company had no repurchase transactions. Securities Pledged, Restricted Assets and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. As of December 31 for the years indicated in the table below, the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral as reported in the Consolidated Statements of Financial Position included the following: 2016 2015 (in thousands) Pledged Collateral: Fixed maturity securities, available-for-sale $ 140,810 $ 38,421 Total securities pledged $ 140,810 $ 38,421 Liabilities Supported by Pledged Collateral: Cash collateral for loaned securities $ 74,976 $ 40,416 Securities sold under agreements to repurchase 68,904 0 Total liabilities supported by pledged collateral $ 143,880 $ 40,416 In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral were securities purchased under agreements to resell. The fair value of this collateral was $58.4 million and $156.0 million at December 31, 2016 and 2015 , respectively, none of which had either been sold or repledged. As of December 31, 2016 , fixed maturities and short-term investments of $3.2 million and $0.6 million , respectively, were on deposit with governmental authorities or trustees as required by certain insurance laws. As of December 31, 2015 , fixed maturities of $3.9 million were on deposit with governmental authorities or trustees as required by certain insurance laws. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 5,129,931 $ 5,081,938 $ 5,045,025 Capitalization of commissions, sales and issue expenses 316,828 616,002 626,718 Amortization-Impact of assumption and experience unlocking and true-ups 130,652 112,039 276,743 Amortization-All other (758,753 ) (771,208 ) (708,555 ) Change in unrealized investment gains and losses (28,723 ) 91,160 (67,056 ) Other(1) (3,448,842 ) 0 (90,937 ) Balance, end of year $ 1,341,093 $ 5,129,931 $ 5,081,938 (1) Represents ceded DAC upon reinsurance agreements with PALAC and Prudential Insurance in 2016 and PURC in 2014. See Note 1 and Note 12 for additional information. Prior period amounts in the table above have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the Consolidated Financial Statements. See Note 16 for a more detailed description of the revisions. |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Prior period amounts in the tables below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the consolidated financial statements. See Note 16 for a more detailed description of the revisions. Future Policy Benefits Future policy benefits at December 31 were as follows: 2016 2015 (in thousands) Life insurance – domestic $ 9,643,227 $ 8,277,233 Life insurance – Taiwan 1,240,353 1,163,999 Individual and group annuities and supplementary contracts 548,064 519,462 Other contract liabilities 5,071,616 5,238,061 Total future policy benefits $ 16,503,260 $ 15,198,755 Life insurance liabilities include reserves for death benefits. Individual and group annuities and supplementary contract liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned premiums and certain other reserves for annuities and individual life products. Future policy benefits for domestic and Taiwan individual non-participating traditional life insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 1.7% to 7.8% for setting domestic insurance reserves and 6.2% to 7.4% for setting Taiwan reserves. Future policy benefits for individual and group annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values generally range from 0.0% to 14.8% , with approximately 0.8% of the reserves based on an interest rate in excess of 8.0% . The Company’s liability for future policy benefits are primarily liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in "Other contract liabilities" in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. The interest rates used in the determination of the present values range from 1.4% to 4.1% . See Note 6 for additional information regarding liabilities for guaranteed benefits related to certain long-duration contracts. Policyholders’ Account Balances Policyholders’ account balances at December 31 were as follows: 2016 2015 (in thousands) Interest-sensitive life contracts $ 14,593,376 $ 13,344,332 Individual annuities 2,861,882 2,549,289 Guaranteed interest accounts 310,321 363,332 Other 1,129,314 947,871 Total policyholders’ account balances $ 18,894,893 $ 17,204,824 Policyholders’ account balances represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Interest crediting rates range from 0.8% to 4.3% for interest-sensitive life contracts. Interest crediting rates for individual annuities range from 0.0% to 6.3% . Interest crediting rates for guaranteed interest accounts range from 1.0% to 6.0% . Interest crediting rates range from 0.5% to 8.0% for other. |
Certain Long-Duration Contracts
Certain Long-Duration Contracts With Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are allocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options similar to variable annuities. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.” For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, benefit utilization, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits”. As of December 31, 2016 and 2015 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death At Annuitization/ Accumulation(1) (in thousands) Variable Annuity Contracts Return of net deposits Account value $ 85,056,405 N/A $ 79,034,807 N/A Net amount at risk $ 178,806 N/A $ 385,773 N/A Average attained age of contractholders 64 years N/A 64 years N/A Minimum return or contract value Account value $ 20,091,528 $ 95,908,923 $ 20,113,504 $ 89,935,139 Net amount at risk $ 2,039,249 $ 2,875,524 $ 2,349,232 $ 2,633,207 Average attained age of contractholders 68 years 65 years 68 years 64 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits as described herein (2) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. December 31, 2016 December 31, 2015 In the Event of Death(2) (in thousands) Variable Life, Variable Universal Life and Universal Life Contracts No-lapse guarantees(1) Separate account value $ 3,125,804 $ 2,907,924 General account value $ 6,234,678 $ 5,449,616 Net amount at risk $ 119,838,053 $ 103,714,953 Average attained age of contractholders 55 years 54 years (1) Excludes assumed reinsurance of GUL business from Prudential Insurance in connection with the acquisition of The Hartford Life Business that is retroceded 100% to PARU. (2) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016 December 31, 2015 (in thousands) Equity funds $ 59,482,605 $ 59,671,583 Bond funds 36,221,736 33,045,700 Money market funds 6,557,987 3,808,758 Total(1) $ 102,262,328 $ 96,526,041 (1) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. In addition to the above mentioned amounts invested in separate account investment options, $2.9 billion and $2.6 billion of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA feature, were invested in general account investment options as of December 31, 2016 and 2015 , respectively. For the years ended December 31, 2016 , 2015 and 2014 there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees on variable contracts. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders' benefits”. Guaranteed minimum income and withdrawal benefits (“GMIWB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”) features are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits”. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 9 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. Prior period amounts in the table below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the Consolidated Financial Statements. See Note 16 for a more detailed description of the revisions. GMDB GMIB GMWB/GMIWB/ GMAB Total Variable Annuity Variable Life, Variable Universal Life & Universal Life(2) Variable Annuity (in thousands) Balance as of December 31, 2013 $ 207,854 $ 1,834,290 $ 22,454 $ (348,400 ) $ 1,716,198 Incurred guarantee benefits(1) 131,594 822,167 17,905 5,342,010 6,313,676 Paid guarantee benefits (22,079 ) (18,192 ) (853 ) 0 (41,124 ) Changes in unrealized investment gains and losses(3) 3,848 283,668 175 0 287,691 Balance as of December 31, 2014 321,217 2,921,933 39,681 4,993,610 8,276,441 Incurred guarantee benefits(1) 95,747 538,906 (6,900 ) 211,825 839,578 Paid guarantee benefits (34,021 ) (21,811 ) (1,938 ) 0 (57,770 ) Changes in unrealized investment gains and losses(3) (6,049 ) (193,207 ) (225 ) 0 (199,481 ) Balance as of December 31, 2015 376,894 3,245,821 30,618 5,205,435 8,858,768 Incurred guarantee benefits(1) 48,832 746,130 (1,693 ) (164,427 ) 628,842 Paid guarantee benefits (38,661 ) (35,894 ) (1,892 ) 0 (76,447 ) Changes in unrealized investment gains and losses 928 102,124 5 0 103,057 Balance as of December 31, 2016 $ 387,993 $ 4,058,181 $ 27,038 $ 5,041,008 $ 9,514,220 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as embedded derivatives. (2) Includes revision for prior year information related to certain GMDB life products. See Note 16 for additional information. (3) Prior period amounts are presented on a basis consistent with the current period presentation. The GMDB liability is determined each period end by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the excess death benefits. The GMIB liability associated with variable annuities is determined each period by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the excess income benefits. The portion of assessments used is chosen such that, at issue the present value of expected death benefits or expected income benefits in excess of the projected account balance and the portion of the present value of total expected assessments over the lifetime of the contracts are equal. The Company regularly evaluates the estimates used and adjusts the GMDB and GMIB liability balances, with an associated charge or credit to earnings, if actual experience or other evidence suggests that earlier estimates should be revised. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option (“GRO”) features, which includes an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then-current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs), in general, guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. Liabilities for guaranteed benefits for GMAB, GMWB and GMIWB features include amounts ceded to affiliates. See Note 12 for amounts recoverable from reinsurers relating to the ceding of certain embedded derivative liabilities associated with these guaranteed benefits, which are not reflected in the tables above. Sales Inducements The Company generally defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Deferred sales inducements” in the Company’s Consolidated Statements of Financial Position. The Company offered various types of sales inducements, including: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (2) additional credits after a certain number of years a contract is held. Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in thousands) Balance as of December 31, 2013 $ 989,889 Capitalization 9,112 Amortization-Impact of assumption and experience unlocking and true-ups 34,420 Amortization-All other (194,673 ) Change in unrealized investment gains (losses) (1,957 ) Balance as of December 31, 2014 836,791 Capitalization 6,462 Amortization-Impact of assumption and experience unlocking and true-ups 21,829 Amortization-All other (183,843 ) Change in unrealized investment gains (losses) 3,605 Balance as of December 31, 2015 684,844 Capitalization 932 Amortization-Impact of assumption and experience unlocking and true-ups 11,817 Amortization-All other (144,670 ) Change in unrealized investment gains (losses) (2,802 ) Other(1) (550,121 ) Balance as of December 31, 2016 $ 0 (1) Represents ceded DSI upon reinsurance agreements with PALAC and Prudential Insurance in 2016. See Note 1 and Note 12 for additional information. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | |
Statutory Net Income and Surplus and Dividend Restrictions | STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance. Statutory accounting practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes, and certain assets on a different basis. Statutory net income for the Company, including its subsidiary PLNJ, amounted to $578 million , $593 million and $169 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Statutory surplus of the Company, including its subsidiary PLNJ, amounted to $1,250 million and $2,796 million at December 31, 2016 and 2015 , respectively. The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC. The Company is subject to Arizona law, which limits the amount of dividends that insurance companies can pay to stockholders without approval of the Arizona Department of Insurance. The maximum dividend, which may be paid in any twelve -month period without notification or approval, is limited to the lesser of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, there is a capacity to pay a dividend of $125 million in 2017 without prior approval. The Company paid dividends to Prudential Insurance of $2,593 million , $430 million and $748 million in 2016 , 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Prior period amounts in the tables below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the consolidated financial statements. See Note 16 for a more detailed description of the revisions. The components of income tax expense (benefit) for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Current tax expense (benefit): U.S. Federal $ (99,443 ) $ 105,992 $ 112,742 State and local 49 129 0 Total (99,394 ) 106,121 112,742 Deferred tax expense (benefit): U.S. Federal 25,525 (116,762 ) 24,327 Total 25,525 (116,762 ) 24,327 Total income tax expense (benefit) from operations (73,869 ) (10,641 ) 137,069 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 3,322 (61,322 ) 65,717 Additional paid-in capital 587 (6,560 ) (6,507 ) Total income tax expense (benefit) $ (69,960 ) $ (78,523 ) $ 196,279 In July 2014, the IRS issued guidance relating to the hedging of variable annuity guaranteed minimum benefits (“Hedging IDD”). The Hedging IDD provides an elective safe harbor tax accounting method for certain contracts which permits the current deduction of losses and the deferral of gains for hedging activities that can be applied to open years under IRS examination beginning with the earliest open year. The Company applies this tax accounting method for hedging gains and losses covered by the Hedging IDD beginning with 2013. As a result of applying such accounting method in 2014, the Company's 2014 U.S. current tax expense includes a tax benefit of $15 million and a corresponding reduction of deferred tax assets. The Company’s actual income tax expense (benefit) for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons: 2016 2015 2014 (in thousands) Expected federal income tax expense $ 112,472 $ 174,077 $ 320,866 Non-taxable investment income (146,324 ) (161,407 ) (152,844 ) Tax credits (30,916 ) (24,232 ) (32,881 ) Domestic production activities deduction, net (9,488 ) 0 0 Other 387 921 1,928 Total income tax expense (benefit) from operations $ (73,869 ) $ (10,641 ) $ 137,069 The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above, and as a result, is a major reason for the difference between the Company’s effective tax rate and the federal statutory tax rate of 35% . The DRD for the current period was estimated using information from 2015 and current year results, and was adjusted to take into account the current year’s equity market performance. The actual current year DRD can vary from the estimate based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Additionally, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, the issues related to the calculation of the DRD. For the last several years, the revenue proposals included in the Obama Administration’s budgets included a proposal that would change the method used to determine the amount of the DRD. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through guidance or legislation, could increase actual tax expense and reduce the Company’s consolidated net income. Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2016 2015 (in thousands) Deferred tax assets Insurance reserves $ 148,115 $ 1,668,038 Other 1,966 1,442 Deferred tax assets 150,081 1,669,480 Deferred tax liabilities Deferred policy acquisition costs 45,405 1,398,775 Deferred sales inducements 0 239,695 Net unrealized gains on securities 24,949 23,991 Investments 171,303 69,163 Deferred tax liabilities 241,657 1,731,624 Net deferred tax asset (liability) $ (91,576 ) $ (62,144 ) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. The Company had no valuation allowance as of December 31, 2016 and 2015 . Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable. The Company’s income (loss) from operations before income taxes includes income (loss) from domestic operations of $321 million , $497 million and $917 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company’s unrecognized tax benefits for the years ended December 31 are as follows: 2016 2015 2014 (in thousands) Balance at January 1, $ 0 $ 0 $ 0 Increases in unrecognized tax benefits-prior years 4,744 0 0 (Decreases) in unrecognized tax benefits-prior years 0 0 0 Increases in unrecognized tax benefits-current year 4,744 0 0 (Decreases) in unrecognized tax benefits-current year 0 0 0 Settlements with taxing authorities 0 0 0 Balance at December 31, $ 9,488 $ 0 $ 0 Unrecognized tax benefits that, if recognized, would favorably impact the effective rate $ 9,488 $ 0 $ 0 The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). At December 31, 2016 , the Company remains subject to examination in the U.S. for tax years 2009 through 2015 . The Company is participating in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolution programs are available to resolve the disagreements in a timely manner before the tax returns are filed. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
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 trade in active markets because they are not publicly available), certain short-term investments, certain cash equivalents, and certain OTC derivatives. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, certain 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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 160,740 $ 0 $ 0 $ 160,740 Obligations of U.S. states and their political subdivisions 0 626,486 0 0 626,486 Foreign government bonds 0 108,782 0 0 108,782 U.S. corporate public securities 0 2,306,409 55,109 0 2,361,518 U.S. corporate private securities 0 851,585 32,699 0 884,284 Foreign corporate public securities 0 221,848 0 0 221,848 Foreign corporate private securities 0 584,268 14,748 0 599,016 Asset-backed securities(5) 0 169,160 19,856 0 189,016 Commercial mortgage-backed securities 0 382,671 0 0 382,671 Residential mortgage-backed securities 0 83,188 0 0 83,188 Subtotal 0 5,495,137 122,412 0 5,617,549 Trading account assets: Corporate securities 0 19,256 0 0 19,256 Asset-backed securities(5) 0 302 0 0 302 Equity securities 0 0 15,770 0 15,770 Subtotal 0 19,558 15,770 0 35,328 Equity securities, available-for-sale 41 16,640 75 0 16,756 Short-term investments 31,007 5,650 0 0 36,657 Cash equivalents 5,644 1,998 0 0 7,642 Other long-term investments 0 90,884 0 (13,019 ) 77,865 Reinsurance recoverables 0 0 5,474,263 0 5,474,263 Receivables from parent and affiliates 0 131,144 6,493 0 137,637 Subtotal excluding separate account assets 36,692 5,761,011 5,619,013 (13,019 ) 11,403,697 Separate account assets(2) 0 116,040,888 0 0 116,040,888 Total assets $ 36,692 $ 121,801,899 $ 5,619,013 $ (13,019 ) $ 127,444,585 Future policy benefits(3) $ 0 $ 0 $ 5,041,007 $ 0 $ 5,041,007 Policyholders' account balances 0 0 20,337 0 20,337 Payables to parent and affiliates 0 12,854 0 (12,854 ) 0 Total liabilities $ 0 $ 12,854 $ 5,061,344 $ (12,854 ) $ 5,061,344 As of December 31, 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 $ 0 $ 94,049 $ 0 $ 0 $ 94,049 Obligations of U.S. states and their political subdivisions 0 624,769 0 0 624,769 Foreign government bonds 0 70,410 0 0 70,410 U.S. corporate public securities 0 2,635,551 55,003 0 2,690,554 U.S. corporate private securities 0 1,322,213 22,716 0 1,344,929 Foreign corporate public securities 0 275,349 0 0 275,349 Foreign corporate private securities 0 760,869 17,773 0 778,642 Asset-backed securities(5) 0 261,784 173,347 0 435,131 Commercial mortgage-backed securities 0 404,345 0 0 404,345 Residential mortgage-backed securities 0 122,754 0 0 122,754 Subtotal 0 6,572,093 268,839 0 6,840,932 Trading account assets: Corporate securities 0 44,374 0 0 44,374 Asset-backed securities(5) 0 1,990 0 0 1,990 Equity securities 0 0 18,248 0 18,248 Subtotal 0 46,364 18,248 0 64,612 Equity securities, available-for-sale 39 51,769 165 0 51,973 Short-term investments 18,713 36,093 0 0 54,806 Cash equivalents 50,998 143,927 0 0 194,925 Other long-term investments(4) 0 297,394 5,704 (230,554 ) 72,544 Reinsurance recoverables 0 0 4,940,011 0 4,940,011 Receivables from parent and affiliates 0 157,625 5,000 0 162,625 Subtotal excluding separate account assets 69,750 7,305,265 5,237,967 (230,554 ) 12,382,428 Separate account assets(2)(4) 0 108,967,162 0 0 108,967,162 Total assets $ 69,750 $ 116,272,427 $ 5,237,967 $ (230,554 ) $ 121,349,590 Future policy benefits(3) 0 0 $ 5,205,434 0 $ 5,205,434 Policyholders' account balances 0 0 0 0 0 Payables to parent and affiliates 0 32,849 0 (32,849 ) 0 Total liabilities $ 0 $ 32,849 $ 5,205,434 $ (32,849 ) $ 5,205,434 (1) “Netting” amounts represent cash collateral of $0.2 million and $198 million as of December 31, 2016 and 2015 , 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 liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. (3) As of December 31, 2016 , the net embedded derivative liability position of $5,041 million includes $1,157 million of embedded derivatives in an asset position and $6,198 million of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $5,205 million includes $655 million of embedded derivatives in an asset position and $5,860 million of embedded derivatives in a liability position. (4) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (5) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. 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 the 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 December 31, 2016 and 2015 , 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 fixed maturities and equity securities 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, NPR, liquidity and other factors. 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 and 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. 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. Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At December 31, 2016 and December 31, 2015 , the fair values of these investments, which include certain hedge funds, private equity funds and other funds were $0.9 million and $1 million , respectively, which had been previously classified in Level 3 at December 31, 2015 . 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 and mutual funds for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”. Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirements to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain separate account investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At December 31, 2016 and December 31, 2015 , the fair values of separate account assets excluded from the fair value hierarchy, which include investments in real estate and other invested assets, were $566 million and $383 million , respectively, which had been previously classified in Level 3 at December 31, 2015 . Receivables from Parent and Affiliates - Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is 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 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 12 ). 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 are 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 GMAB, GMWB and 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 future expected rider fees attributable to the 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. Policyholders' account balances – The liability for policyholders' account balances is related to certain embedded derivative instruments associated with certain policyholders' account balances. The fair values are determined consistent with similar derivative instruments described above under "Derivative Instruments". Transfers between Levels 1 and 2 - Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. During the years ended December 31, 2016 and 2015 , there were no transfers between Level 1 and 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 December 31, 2016 Internal(1) External(2) Total (in thousands) Corporate securities(3) $ 45,715 $ 56,841 $ 102,556 Asset-backed securities(4) 55 19,801 19,856 Equity securities 3,014 12,831 15,845 Other long-term investments 0 0 0 Reinsurance recoverables 5,474,263 0 5,474,263 Receivables from parent and affiliates 0 6,493 6,493 Total assets $ 5,523,047 $ 95,966 $ 5,619,013 Future policy benefits $ 5,041,007 $ 0 $ 5,041,007 Policyholders' account balances 20,337 0 20,337 Total liabilities $ 5,061,344 $ 0 $ 5,061,344 As of December 31, 2015(5) Internal(1) External(2) Total (in thousands) Corporate securities(3) $ 40,492 $ 55,000 $ 95,492 Asset-backed securities(4) 158 173,189 173,347 Equity securities 165 18,248 18,413 Other long-term investments 3,260 2,444 5,704 Reinsurance recoverables 4,940,011 0 4,940,011 Receivables from parent and affiliates 0 5,000 5,000 Total assets $ 4,984,086 $ 253,881 $ 5,237,967 Future policy benefits $ 5,205,434 $ 0 $ 5,205,434 Policyholders' account balances 0 0 0 Total liabilities $ 5,205,434 $ 0 $ 5,205,434 (1) Represents valuations reflecting both 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. (3) Includes assets classified as fixed maturities available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(12) $ 45,715 Discounted cash flow Discount rate 4.54 % 15.00 % 8.06 % Decrease Market comparables EBITDA multiples(2) 4.0 X 4.0 X 4.0 X Increase Liquidation Liquidation value 98.21 % 98.21 % 98.21 % Increase Reinsurance recoverables - Living Benefits $ 5,041,262 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 433,001 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Mortality rate(5) 0 % 31 % Decrease Premium payment(6) 0.65 X 0.95 X Decrease Liabilities: Future policy benefits(7) $ 5,041,007 Discounted cash flow Lapse rate(8) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(9) 52 % 96 % Increase Withdrawal rate See table footnote (10) below Mortality rate(11) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 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(12) $ 40,492 Discounted cash flow Discount rate 5.76 % 17.95 % 8.35 % Decrease Market comparables EBITDA multiples(2) 5.0 X 5.0 X 5.0 X Increase Reinsurance recoverables - Living Benefits $ 4,600,193 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 339,818 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Mortality rate(5) 0 % 20 % Decrease Premium payment(13) 1.00 X 3.75 X Decrease Liabilities: Future policy benefits(7) $ 5,205,434 Discounted cash flow Lapse rate(8) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % 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 (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, policyholders are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as "X"). The multiples vary by funding level and policy duration. If the resulting premium in any duration is smaller than the minimum annual premium required to maintain the no-lapse guarantee, policyholders are assumed to pay the minimum annual premium. Policyholders are assumed to stop premium payments once the no-lapse guarantee is fully funded. The range shown as of December 31, 2016 excludes multiples for the first duration since all contracts are beyond the first duration. Assumption ranges for prior periods included first duration multiples. (7) Future policy benefits primarily represent general account liabilities for the optional 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 age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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 exp |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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 sells 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" below for a discussion of guarantees related to credit derivatives written. In addition to selling credit protection, the Company may purchase 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. Related to these embedded derivatives, the Company has entered into reinsurance agreements to transfer the risk associated with certain benefit features to affiliates, PALAC and Prudential Insurance. See Note 1 for additional information on the change to the reinsurance agreements effective April 1, 2016. Additionally, the Company has entered into a reinsurance agreement with Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty. The Company also reinsures a portion of the no-lapse guarantee provision on certain universal life products to an affiliate, UPARC. These embedded derivatives and reinsurance agreements, which are derivatives and accounted for in the same manner as the embedded derivatives, are carried at fair value and 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 9 . The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables 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. December 31, 2016 December 31, 2015 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 Currency Swaps $ 435,602 $ 44,040 $ (1,835 ) $ 529,128 $ 50,877 $ (1,385 ) Total Qualifying Hedges $ 435,602 $ 44,040 $ (1,835 ) $ 529,128 $ 50,877 $ (1,385 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 101,076 $ 8,215 $ 0 $ 3,159,400 $ 203,313 $ (8,605 ) Foreign Currency Foreign Currency Forwards 13,447 216 (20 ) 3,722 39 (15 ) Credit Credit Default Swaps 3,000 0 (281 ) 7,275 268 (222 ) Currency/Interest Rate Foreign Currency Swaps 56,626 7,789 (211 ) 122,425 17,079 (71 ) Equity Total Return Swaps 0 0 0 542,294 411 (10,451 ) Equity Options 649,807 30,624 (10,507 ) 25,345,369 28,668 (12,100 ) Total Non-Qualifying Hedges $ 823,956 $ 46,844 $ (11,019 ) $ 29,180,485 $ 249,778 $ (31,464 ) Total Derivatives (1) $ 1,259,558 $ 90,884 $ (12,854 ) $ 29,709,613 $ 300,655 $ (32,849 ) (1) Excludes embedded derivatives and related reinsurance recoverables which contain multiple underlyings. The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $5,041 million and $5,205 million as of December 31, 2016 and December 31, 2015 , respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables," was an asset of $5,474 million and $4,940 million as of December 31, 2016 and December 31, 2015 , respectively. Of these reinsurance recoverables, the fair value related to the living benefit guarantees was an asset of $5,041 million and $4,593 million from PALAC and Prudential Insurance, and an asset of $0 million and $7 million from Union Hamilton as of December 31, 2016 and December 31, 2015 , respectively, and the fair value related to the no-lapse guarantee was an asset of $433 million and $340 million from UPARC as of December 31, 2016 and December 31, 2015 , respectively. See Note 12 for additional information on these reinsurance agreements. The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $20 million and $6 million as of December 31, 2016 and December 31, 2015 , respectively. There was no related reinsurance recoverable. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the 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 Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statement of Financial Position Net Amounts Presented in the Consolidated Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 90,877 $ (13,019 ) $ 77,858 $ (77,858 ) $ 0 Securities purchased under agreements to resell 58,366 0 58,366 (58,366 ) 0 Total Assets $ 149,243 $ (13,019 ) $ 136,224 $ (136,224 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 12,854 $ (12,854 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 68,904 0 68,904 (68,904 ) 0 Total Liabilities $ 81,758 $ (12,854 ) $ 68,904 $ (68,904 ) $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Net Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 297,371 $ (230,554 ) $ 66,817 $ (15,157 ) $ 51,660 Securities purchased under agreements to resell 156,064 0 156,064 (156,064 ) 0 Total Assets $ 453,435 $ (230,554 ) $ 222,881 $ (171,221 ) $ 51,660 Offsetting of Financial Liabilities: Derivatives(1) $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 (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 Consolidated Financial Statements . 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: Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 4,055 $ 1,638 $ (7,340 ) Total qualifying hedges 0 4,055 1,638 (7,340 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 186,419 0 0 0 Currency 1,657 0 0 0 Currency/Interest Rate 8,960 0 (15 ) 0 Credit (535 ) 0 0 0 Equity 350 0 0 0 Embedded Derivatives 467,682 0 0 0 Total non-qualifying hedges 664,533 0 (15 ) 0 Total $ 664,533 $ 4,055 $ 1,623 $ (7,340 ) Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 3,297 $ 1,879 $ 36,686 Total qualifying hedges 0 3,297 1,879 36,686 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 77,158 0 0 0 Currency 211 0 0 0 Currency/Interest Rate 11,533 0 209 0 Credit 90 0 0 0 Equity (35,276 ) 0 0 0 Embedded Derivatives (274,008 ) 0 0 0 Total non-qualifying hedges (220,292 ) 0 209 0 Total $ (220,292 ) $ 3,297 $ 2,088 $ 36,686 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 1,027 $ 908 $ 16,286 Total qualifying hedges 0 1,027 908 16,286 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 350,946 0 0 0 Currency 86 0 0 0 Currency/Interest Rate 14,344 0 126 0 Credit 2 0 0 0 Equity (65,424 ) 0 0 0 Embedded Derivatives (209,398 ) 0 0 0 Total non-qualifying hedges 90,556 0 126 0 Total $ 90,556 $ 1,027 $ 1,034 $ 16,286 (1) Amounts deferred in AOCI. For the years ended December 31, 2016 , 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 rollforward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2013 $ (4,701 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 22,880 Amount reclassified into current period earnings (6,594 ) Balance, December 31, 2014 11,585 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 40,972 Amount reclassified into current period earnings (4,286 ) Balance, December 31, 2015 48,271 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 575 Amount reclassified into current period earnings (7,915 ) Balance, December 31, 2016 $ 40,931 Using December 31, 2016 values, it is estimated that a pre-tax gain of approximately $5 million will be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2017 , offset by amounts pertaining to the hedged items. As of December 31, 2016 , 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 AOCI as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” within OCI in the Consolidated Statements of Operations and Comprehensive Income. Credit Derivatives The Company has no exposure from credit derivatives where it has written credit protection as of December 31, 2016 and December 31, 2015 . The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $3 million and $7 million as of December 31, 2016 and December 31, 2015 , respectively, reported at fair value as a liability $0.3 million as of December 31, 2016 and an asset of $0.0 million as of December 31, 2015 . Credit Risk The Company is exposed to credit-related losses in the event of non-performance by our counterparties 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 counterparties’ credit spread is applied to OTC derivative net asset positions. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 and 2015 , the outstanding balances on these commitments were $49 million and $62 million , respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of December 31, 2016 and 2015 , $133 million and $131 million , respectively, of these commitments were 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 December 31, 2016 , 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 less than $30 million . This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. 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. Wells Fargo MyTerm Sales In December 2016, Prudential Financial announced that it suspended sales of its MyTerm life insurance product through Wells Fargo pending completion of a Prudential Financial-initiated review of how the product was being sold through Wells Fargo. Prudential Financial has offered to reimburse the full amount of premium with interest, to any Wells Fargo customers with concerns about the way in which the product was purchased. Wells Fargo distributed the product from June 2014 until sales were suspended, and Prudential Financial's total annualized new business premiums associated with sales through Wells Fargo were approximately $4 million . Prudential Financial has received inquiries, requests for information, subpoenas and a civil investigative demand related to this matter from state and federal regulators, including its lead state insurance regulator, the New Jersey Department of Banking and Insurance ("NJDOBI"), state attorneys general and federal legislators, and is responding to these requests. Prudential Financial has also received shareholder demands for certain books and records under New Jersey law. Litigation related to this matter is described below. Prudential Financial may become subject to additional regulatory inquiries and other investigations and actions, shareholder demands and litigation related to this matter. Prudential Financial has provided notice to Wells Fargo that it may seek indemnification under the MyTerm distribution agreement between the parties. Alex Perea v. The Prudential Insurance Company of America, Pruco Life Insurance Company of New Jersey, and Pruco Life Insurance Company In December 2016, a putative class action complaint entitled Alex Perea, individually and on behalf of all others similarly situated v. The Prudential Insurance Company of America, Pruco Life Insurance Company of New Jersey, and Pruco Life Insurance Company , was filed in the United States District Court for the District of New Jersey. The complaint: (1) alleges that Defendants conspired with Wells Fargo to sell a life insurance product to Wells Fargo customers without their knowledge or consent and violated federal law (Racketeer Influenced and Corrupt Organizations Act (RICO)) and New Jersey law (Consumer Fraud Act), and (2) seeks injunctive relief, compensatory damages, exemplary and statutory penalties, treble damages, interest and attorneys’ fees and costs. In January 2017, plaintiff filed an amended complaint in the United States District Court for the District of New Jersey, alleging the same claims contained in the Complaint. In February 2017, the Amended Complaint was withdrawn with prejudice. Escheatment Litigation State of West Virginia ex. Rel. John D. Perdue v. PRUCO Life Insurance Company In October 2012, the State of West Virginia, through its State Treasurer, filed a lawsuit in the Circuit Court of Putnam County, West Virginia. The complaint alleges violations of the West Virginia Uniform Unclaimed Property Fund Act by failing to properly identify and report all unclaimed insurance policy proceeds which should either be paid to beneficiaries or escheated to West Virginia. The complaint seeks to examine the records of the Company to determine compliance with the West Virginia Uniform Unclaimed Property Fund Act, and to assess penalties and costs in an undetermined amount. In April 2013, the Company filed motions to dismiss the complaints. In December 2013, the Court granted the Company’s motions and dismissed the complaints with prejudice. In January 2014, the State of West Virginia appealed the decisions. 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. In September 2015 , the West Virginia Supreme Court of Appeals denied defendants’ rehearing petition. In November 2015 , the Company filed its answers. Escheatment Audit and Claims Settlement Practices Market Conduct Exam In January 2012, a Global Resolution Agreement entered into by the Company and a third-party auditor became effective upon its acceptance by the unclaimed property departments of 20 states and jurisdictions. Under the terms of the Global Resolution Agreement, the third-party auditor acting on behalf of the signatory states will compare expanded matching criteria to the Social Security Master Death File (“SSMDF") to identify deceased insureds and contractholders where a valid claim has not been made. In February 2012, a Regulatory Settlement Agreement entered into by the Company to resolve a multi-state market conduct examination regarding its adherence to state claim settlement practices became effective upon its acceptance by the insurance departments of 20 states and jurisdictions. The Regulatory Settlement Agreement applies prospectively and requires the Company to adopt and implement additional procedures comparing its records to the SSMDF to identify unclaimed death benefits and prescribes procedures for identifying and locating beneficiaries once deaths are identified. Substantially all other jurisdictions that are not signatories to the Global Resolution Agreement or the Regulatory Settlement Agreement have entered into similar agreements with the Company. The New York Attorney General has subpoenaed the Company, along with other companies, regarding its unclaimed property procedures and may ultimately seek remediation and other relief, including damages. Additionally, the New York Office of Unclaimed Funds is conducting an audit of the Company’s compliance with New York’s unclaimed property laws. Securities Lending Matter In 2016, Prudential Financial self-reported to the United States Securities and Exchange Commission (“SEC"), and notified other regulators, that in some cases it failed to maximize securities lending income due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities for certain separate account investments. Prudential Financial has removed the restriction and substantially implemented a remediation plan for the benefit of customers. Prudential Financial intends to complete the remediation process. The remediation plan remains subject to regulatory review and Prudential Financial is cooperating with regulators in their review of this matter. Summary 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. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE 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, Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), PURC, Prudential Term Reinsurance Company (“Term Re”), PALAC, its parent company Prudential Insurance, third parties, and participated in reinsurance with its affiliate Pruco Re through March 31, 2016 . The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, facilitate its capital market hedging program, and align accounting methodology for the assets and liabilities of living benefit guarantees contained in annuities contracts. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. 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. 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 universal 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, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. 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 embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 10 for additional information related to the accounting for embedded derivatives. Prior period amounts in the tables below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the Consolidated Financial Statements. See Note 16 for a more detailed description of the revisions. Reinsurance amounts included in the Company’s Consolidated Statements of Financial Position as of December 31, were as follows: 2016 2015 (in thousands) Reinsurance recoverables $ 28,674,226 $ 22,691,491 Policy loans (87,112 ) (75,697 ) Deferred policy acquisition costs (6,482,889 ) (2,158,121 ) Deferred sales inducements (615,117 ) 0 Other assets(1) 226,347 35,616 Policyholders’ account balances 4,978,859 5,020,230 Future policy benefits 2,833,327 2,380,215 Other liabilities(2) 410,376 516,525 (1) "Other assets" includes $0.1 million and $0.0 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. (2) "Other liabilities" includes $28 million and $22 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. The reinsurance recoverables by counterparty are broken out below: December 31, 2016 December 31, 2015 (in thousands) PAR U $ 10,514,125 $ 9,867,902 PALAC 7,706,860 0 PURC 3,153,449 2,324,163 PARCC 2,589,397 2,563,300 PAR Term 1,403,738 1,226,749 Prudential of Taiwan 1,246,241 1,169,664 Prudential Insurance 976,652 226,926 Term Re 593,084 298,002 UPARC 467,904 376,660 Pruco Re 0 4,594,412 Unaffiliated 22,776 43,713 Total reinsurance recoverables $ 28,674,226 $ 22,691,491 Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Premiums: Direct $ 1,621,531 $ 1,519,992 $ 1,408,833 Assumed(1) 359 0 0 Ceded (2,447,832 ) (1,442,358 ) (1,342,627 ) Net premiums (825,942 ) 77,634 66,206 Policy charges and fee income: Direct 2,804,446 2,933,271 2,754,115 Assumed 533,648 434,560 477,921 Ceded(2) (2,550,899 ) (1,211,444 ) (1,160,997 ) Net policy charges and fee income 787,195 2,156,387 2,071,039 Net investment income: Direct 378,969 419,357 406,620 Assumed 1,411 1,394 1,362 Ceded (4,430 ) (4,164 ) (3,964 ) Net investment income 375,950 416,587 404,018 Asset administration fees: Direct 310,178 362,321 377,127 Assumed 0 0 0 Ceded (225,735 ) 0 0 Net asset administration fees 84,443 362,321 377,127 Other income: Direct 50,475 44,223 49,891 Assumed(3) (161 ) 0 0 Ceded 21 0 0 Amortization of reinsurance income (19,228 ) 11,292 7,936 Net other income 31,107 55,515 57,827 Realized investment gains (losses), net: Direct 1,263,088 571,702 (4,375,107 ) Assumed 0 0 0 Ceded(4) (504,639 ) (780,240 ) 4,489,174 Realized investment gains (losses), net 758,449 (208,538 ) 114,067 Policyholders’ benefits (including change in reserves): Direct 2,456,262 2,064,906 1,863,078 Assumed 596,196 541,371 792,616 Ceded(5) (3,312,658 ) (2,307,127 ) (2,301,997 ) Net policyholders’ benefits (including change in reserves) (260,200 ) 299,150 353,697 Interest credited to policyholders’ account balances: Direct 413,328 477,667 459,982 Assumed 131,953 124,954 117,725 Ceded (244,061 ) (228,410 ) (209,392 ) Net interest credited to policyholders’ account balances 301,220 374,211 368,315 Net reinsurance expense allowances, net of capitalization and amortization(6) (840,010 ) (354,372 ) (390,531 ) (1) "Premiums assumed" includes $0.4 million , $0.0 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) "Policy charges ceded" includes $(4) million of unaffiliated activity for each of the years ended December 31, 2016 , 2015 and 2014 . (3) "Other income assumed" includes $(0.2) million , $0.0 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) "Realized investment gains (losses), net ceded" includes $(30) million , $2 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (5) "Policyholders' benefits (including change in reserves) ceded" includes $5 million , $(14) million and $3 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (6) Prior period amounts have been corrected to exclude non-reinsurance expenses. The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2016 2015 2014 (in thousands) Direct gross life insurance face amount in force $ 827,832,976 $ 770,427,543 $ 709,800,479 Assumed gross life insurance face amount in force 42,566,514 43,552,313 44,519,176 Reinsurance ceded (805,796,078 ) (752,647,594 ) (694,659,804 ) Net life insurance face amount in force $ 64,603,412 $ 61,332,262 $ 59,659,851 Information regarding significant affiliated reinsurance arrangements is described below. PALAC Effective April 1, 2016 , the Company entered into a reinsurance agreement with PALAC, to reinsure its variable annuity base contracts, along with the living benefit guarantees, excluding business reinsured externally, and the PLNJ business, which was reinsured to Prudential Insurance. See Note 1 for additional information related to the Variable Annuities Recapture. PAR U Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as its Universal Plus policies, with effective dates prior to January 1, 2011 . Effective July 1, 2011 , PLNJ reinsures an amount equal to 95% of all the risks associated with its universal life policies with PAR U. On January 2, 2013 , Pruco Life 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 was subsequently retroceded to PAR U. PURC Pruco Life 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. Effective July 1, 2014 , the agreement between Pruco Life 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 risks associated with Universal Protector policies having no-lapse guarantees as well as Universal Plus policies. Effective January 1, 2014 , Pruco Life entered into an automatic coinsurance agreement with PURC to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as Universal Plus policies, with effective dates on or after January 1, 2014 . 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. Prudential of Taiwan On January 31, 2001 , Pruco Life 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, Pruco Life 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 Pruco Life. The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars. 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 , Pruco Life 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 was subsequently retroceded to PAR U. 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. Effective April 1, 2016 , PLNJ entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. See Note 1 for additional information related to the Variable Annuities Recapture. UPARC Pruco Life reinsures Universal Protector policies having no-lapse guarantees with effective dates prior to January 1, 2013 with UPARC. 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 Pruco Life and UPARC to reinsure 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 Pruco Life and UPARC to reinsure 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. 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. Pruco Re Through March 31, 2016 , the Company, including its wholly-owned subsidiary PLNJ, entered into various automatic coinsurance agreements with Pruco Re to reinsure its living benefit features sold on certain of its annuities. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Information regarding significant third party reinsurance arrangements is described below. Union Hamilton Effective April 1, 2015 , the Company, excluding its subsidiaries, entered into an agreement with Union Hamilton, an external counterparty, to reinsure approximately 50% of the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income (“HDI”) v.3.0 business, a guaranteed benefit feature. This reinsurance agreement covered most new HDI v.3.0 variable annuity business issued between April 1, 2015 and December 31, 2016 on a quota share basis, with Union Hamilton’s cumulative quota share amounting to $2.9 billion of new rider premiums as of December 31, 2016 . Reinsurance on business subject to this agreement remains in force over the lives of the underlying annuity contracts. New business written subsequent to December 31, 2016 is not covered by external reinsurance. These guaranteed benefit features are accounted for as embedded derivatives. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the years ended December 31, were 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, 2013 $ 403 $ 56,243 $ 56,646 Change in other comprehensive income before reclassifications (723 ) 207,134 206,411 Amounts reclassified from AOCI 0 (18,649 ) (18,649 ) Income tax benefit (expense) 253 (65,970 ) (65,717 ) Balance, December 31, 2014 $ (67 ) $ 178,758 $ 178,691 Change in other comprehensive income before reclassifications (507 ) (164,799 ) (165,306 ) Amounts reclassified from AOCI 0 (9,902 ) (9,902 ) Income tax benefit (expense) 177 61,145 61,322 Balance, December 31, 2015 $ (397 ) $ 65,202 $ 64,805 Change in other comprehensive income before reclassifications (8 ) 74,040 74,032 Amounts reclassified from AOCI 0 (64,540 ) (64,540 ) Income tax benefit (expense) 3 (3,325 ) (3,322 ) Balance, December 31, 2016 $ (402 ) $ 71,377 $ 70,975 (1) Includes cash flow hedges of $41 million , $48 million , and $12 million as of December 31, 2016 , 2015 and 2014 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended Year Ended Year Ended (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/Interest rate(3) $ 7,915 $ 4,286 $ 6,594 Net unrealized investment gains (losses) on available-for-sale securities(4) 56,625 5,616 12,055 Total net unrealized investment gains (losses) 64,540 9,902 18,649 Total reclassifications for the period $ 64,540 $ 9,902 $ 18,649 (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 10 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 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, 2013 $ 4,498 $ (3,324 ) $ 1,819 $ (1,079 ) $ 1,914 Net investment gains (losses) on investments arising during the period 996 0 0 (348 ) 648 Reclassification adjustment for (gains) losses included in net income (161 ) 0 0 56 (105 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 786 0 (275 ) 511 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (591 ) 206 (385 ) Balance, December 31, 2014 $ 5,333 $ (2,538 ) $ 1,228 $ (1,440 ) $ 2,583 Net investment gains (losses) on investments arising during the period 107 0 0 (37 ) 70 Reclassification adjustment for (gains) losses included in net income (251 ) 0 0 88 (163 ) Reclassification adjustment for OTTI losses excluded from net income(1) 7 0 0 (2 ) 5 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 1,188 0 (416 ) 772 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (114 ) 40 (74 ) Balance, December 31, 2015 $ 5,196 $ (1,350 ) $ 1,114 $ (1,767 ) $ 3,193 Net investment gains (losses) on investments arising during the period 1,238 0 0 (433 ) 805 Reclassification adjustment for (gains) losses included in net income (1,107 ) 0 0 387 (720 ) Reclassification adjustment for OTTI losses excluded from net income(1) (444 ) 0 0 155 (289 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (209 ) 0 73 (136 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 165 (58 ) 107 Balance, December 31, 2016 $ 4,883 $ (1,559 ) $ 1,279 $ (1,643 ) $ 2,960 (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, 2013 $ 123,153 $ (43,030 ) $ 3,293 $ (29,087 ) $ 54,329 Net investment gains (losses) on investments arising during the period 239,912 0 0 (83,969 ) 155,943 Reclassification adjustment for (gains) losses included in net income (18,488 ) 0 0 6,471 (12,017 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (69,799 ) 0 24,430 (45,369 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 35,829 (12,540 ) 23,289 Balance, December 31, 2014 $ 344,577 $ (112,829 ) $ 39,122 $ (94,695 ) $ 176,175 Net investment gains (losses) on investments arising during the period (223,082 ) 0 0 78,078 (145,004 ) Reclassification adjustment for (gains) losses included in net income (9,651 ) 0 0 3,378 (6,273 ) Reclassification adjustment for OTTI losses excluded from net income(1) (7 ) 0 0 2 (5 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 93,577 0 (32,752 ) 60,825 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (36,475 ) 12,766 (23,709 ) Balance, December 31, 2015 $ 111,837 $ (19,252 ) $ 2,647 $ (33,223 ) $ 62,009 Net investment gains (losses) on investments arising during the period (70,379 ) 0 0 24,633 (45,746 ) Reclassification adjustment for (gains) losses included in net income 65,647 0 0 (22,976 ) 42,671 Reclassification adjustment for OTTI losses excluded from net income(1) 444 0 0 (155 ) 289 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 2,017 0 (706 ) 1,311 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 12,127 (4,244 ) 7,883 Balance, December 31, 2016 $ 107,549 $ (17,235 ) $ 14,774 $ (36,671 ) $ 68,417 (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 10 for information on cash flow hedges. (3) Balances are net of reinsurance. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
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 $1 million for each of the years ended December 31, 2016 , 2015 and 2014 . The expense charged to the Company for the deferred compensation program was $8 million , $7 million and $7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company is charged for its share of employee benefit 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 earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $23 million , $22 million and $20 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $28 million , $26 million and $28 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Prudential Insurance sponsors voluntary savings plans for its employee 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 $10 million , $8 million and $9 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. 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, Incorporated (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $709 million , $771 million and $862 million for the years ended December 31, 2016 , 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 $3,367 million at December 31, 2016 and $2,873 million at December 31, 2015 . Fees related to these COLI policies were $42 million , $45 million and $45 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million . Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $15 million , $17 million and $15 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These expenses are recorded as “Net investment income” in the Consolidated Statements of Operations and Comprehensive Income. Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 10 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other long-term investments" includes $100 million and $146 million as of December 31, 2016 and 2015 , respectively. "Net investment income" related to these ventures includes a gain of $2 million , $0.0 million and $8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and Prudential Investments LLC ("Prudential Investments") whereby the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust. Income received from ASTISI and Prudential Investments related to this agreement was $295 million , $347 million and $364 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income. The Company has a revenue sharing agreement with Prudential Investments, whereby the Company receives fee income based on policyholders’ separate account balances invested in The Prudential Series Fund. Income received from Prudential Investments related to this agreement was $13 million , $13 million and $12 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income. Affiliated Notes Receivable Affiliated notes receivable included in “Other assets” at December 31, were as follows: Maturity Dates Interest Rates 2016 2015 (in thousands) U.S. Dollar floating rate notes 2025 - 2026 1.36% - 1.77 % $ 0 $ 23,013 U.S. Dollar fixed rate notes 2022 - 2028 0.00% - 14.85 % 137,636 139,069 Euro-denominated fixed rate notes 2025 2.30 % 0 543 Total long-term notes receivable - affiliated (1) $ 137,636 $ 162,625 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above include those classified as loans, and carried at unpaid principal balance, net of any allowance for losses and those classified as available-for-sale securities and other trading account assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $1 million and $1 million at December 31, 2016 and 2015 , respectively, and is included in “Other assets”. Revenues related to these loans were $6 million , $7 million and $14 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, and are included in “Other income”. Affiliated Asset Transfers 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 gains (losses), net", respectively. The table below shows affiliated asset trades for the years ended December 31, 2016 and 2015 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Prudential Insurance March 2015 Purchase Fixed Maturities & Trading Account Assets $ 91,972 $ 73,849 $ (11,780 ) $ 0 Prudential Insurance June 2015 Purchase Fixed Maturities $ 11,096 $ 10,480 $ (401 ) $ 0 Prudential Insurance March 2016 Sale Fixed Maturities & Short-Term Investments $ 88,783 $ 88,875 $ (60 ) $ 0 Debt Agreements The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. During the second quarter of 2016 , the Company prepaid $125 million of its debt and reassigned all the remaining debt to PALAC and Prudential Insurance as part of the Variable Annuities Recapture. See Note 1 for additional information on the reassignment effective April 1, 2016 . The following table provides the breakout of the Company’s short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - Amount of Notes - Interest Rate Date of Maturity (in thousands) Prudential Financial 12/15/2011 $ 0 $ 11,000 3.61 % 12/15/2016 Prudential Financial 12/16/2011 0 11,000 3.61 % 12/16/2016 Prudential Financial 11/15/2013 0 9,000 2.24 % 12/15/2018 Prudential Financial 11/15/2013 0 23,000 3.19 % 12/15/2020 Prudential Insurance 12/6/2013 0 120,000 2.60 % 12/15/2018 Prudential Insurance 12/6/2013 0 130,000 4.39 % 12/15/2023 Prudential Insurance 12/6/2013 0 250,000 3.64 % 12/15/2020 Prudential Insurance 9/25/2014 0 30,000 1.89 % 6/20/2017 Prudential Insurance 9/25/2014 0 40,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 0 20,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 0 50,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 0 50,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 0 100,000 3.47 % 6/20/2021 Prudential Insurance 9/25/2014 0 100,000 3.95 % 6/20/2024 Prudential Financial 12/15/2014 0 5,000 2.57 % 12/15/2019 Prudential Financial 12/15/2014 0 23,000 3.14 % 12/15/2021 Prudential Financial 6/15/2015 0 66,000 3.52 % 6/15/2022 Prudential Financial 6/15/2015 0 6,000 2.86 % 6/15/2020 Prudential Financial 9/21/2015 0 158,000 1.09% - 1.63 % 6/15/2016 - 6/15/2017 Prudential Financial 9/21/2015 0 132,000 1.40% - 1.93 % 12/17/2016 - 12/17/2017 Prudential Financial 9/21/2015 0 26,000 1.40% - 1.93 % 12/17/2016 - 12/17/2017 Prudential Financial 12/16/2015 0 5,000 2.85 % 12/16/2020 Prudential Financial 12/16/2015 0 1,000 2.85 % 12/16/2020 Prudential Financial 12/16/2015 0 18,000 3.37 % 12/16/2022 Total Loans Payable to Affiliates $ 0 $ 1,384,000 The total interest expense to the Company related to loans payable to affiliates was $13 million , $51 million and $52 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Contributed Capital and Dividends In March and June of 2016 , the Company received capital contributions in the amounts of $5 million and $200 million , respectively, from Prudential Insurance. For the years ended December 31, 2015 and 2014, the Company did not receive any capital contributions. In April of 2016 , the Company paid a dividend in the amount of $2,593 million to Prudential Insurance. In June and December of 2015 , the Company paid dividends in the amounts of $230 million and $200 million , respectively, 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. Reinsurance with affiliates As discussed in Note 12 , the Company participates in reinsurance transactions with certain affiliates. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) Prior period amounts in the table below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the consolidated financial statements. See Note 16 for a more detailed description of the revisions. The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three months ended March 31 June 30 September 30 December 31 (in thousands) 2016 Total revenues $ 791,393 $ 140,925 $ 231,010 $ 47,874 Total benefits and expenses 1,163,700 (588,114 ) 182,006 132,262 Income (loss) from operations before income taxes (372,307 ) 729,039 49,004 (84,388 ) Net income (loss) $ (328,199 ) $ 723,984 $ 84,897 $ (85,465 ) 2015 Total revenues $ 833,689 $ 601,620 $ 762,424 $ 662,173 Total benefits and expenses 738,702 365,827 920,714 337,301 Income (loss) from operations before income taxes 94,987 235,793 (158,290 ) 324,872 Net income (loss) $ 81,934 $ 214,381 $ (136,506 ) $ 348,194 The variability in the quarterly results for 2016 was primarily due to the Variable Annuities Recapture. See Note 1 for additional information. |
Revision to Prior Year Informat
Revision to Prior Year Information | 12 Months Ended |
Dec. 31, 2016 | |
Prior Period Adjustment [Abstract] | |
Accounting Changes and Error Corrections | REVISION TO PRIOR YEAR INFORMATION Revisions to 2016, 2015 and 2014 Consolidated Financial Statements In 2016, the Company identified errors in the calculation of reserves for certain individual life products that impacted several line items within our previously issued consolidated financial statements. Prior period amounts have been revised in the Consolidated Financial Statements and related disclosures to correct these errors. In addition, the Company identified errors in the presentation of certain activity related to the Variable Annuities Recapture that impacted several line items within our previously issued Consolidated Statements of Cash Flows. While these items affect the subtotals of cash flows from operating, investing and financing activities, they have no impact on the net increase (decrease) in cash and cash equivalents for the previous reported periods. Prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. Management assessed the materiality of the misstatements described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), impacted prior periods presented within the Annual Report on Form 10-K for the year ended December 31, 2016 have been revised. Similarly, prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised, as presented below. The following are selected line items from the consolidated financial statements illustrating the effects of these revisions: Consolidated Statements of Financial Position December 31, 2015 As Previously Reported Revision As Revised (in thousands) ASSETS Deferred policy acquisition costs $ 5,111,373 $ 18,558 $ 5,129,931 Reinsurance recoverables 22,546,361 145,130 22,691,491 TOTAL ASSETS 148,643,945 163,688 148,807,633 LIABILITIES AND EQUITY LIABILITIES Policyholders’ account balances $ 17,164,705 $ 40,119 $ 17,204,824 Future policy benefits 15,031,390 167,365 15,198,755 Income taxes 154,043 (15,404 ) 138,639 TOTAL LIABILITIES 144,133,128 192,080 144,325,208 EQUITY Retained earnings 3,663,539 (28,392 ) 3,635,147 TOTAL EQUITY 4,510,817 (28,392 ) 4,482,425 TOTAL LIABILITIES AND EQUITY 148,643,945 163,688 148,807,633 Consolidated Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 2,159,428 $ (3,041 ) $ 2,156,387 $ 2,074,852 $ (3,813 ) $ 2,071,039 TOTAL REVENUES 2,862,947 (3,041 ) 2,859,906 3,094,097 (3,813 ) 3,090,284 BENEFITS AND EXPENSES Policyholders' benefits 291,185 7,965 299,150 343,714 9,983 353,697 Amortization of deferred policy acquisition costs 662,644 (3,475 ) 659,169 436,169 (4,357 ) 431,812 TOTAL BENEFITS AND EXPENSES 2,358,054 4,490 2,362,544 2,167,921 5,626 2,173,547 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 504,893 (7,531 ) 497,362 926,176 (9,439 ) 916,737 Income tax expense (benefit) (8,005 ) (2,636 ) (10,641 ) 140,373 (3,304 ) 137,069 NET INCOME (LOSS) 512,898 (4,895 ) 508,003 785,803 (6,135 ) 779,668 COMPREHENSIVE INCOME (LOSS) 399,012 (4,895 ) 394,117 907,848 (6,135 ) 901,713 (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 527,407 $ (845 ) $ 526,562 TOTAL REVENUES 792,238 (845 ) 791,393 BENEFITS AND EXPENSES Policyholders' benefits 98,528 2,202 100,730 Amortization of deferred policy acquisition costs 640,552 (966 ) 639,586 TOTAL BENEFITS AND EXPENSES 1,162,464 1,236 1,163,700 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (370,226 ) (2,081 ) (372,307 ) Income tax expense (benefit) (44,095 ) (13 ) (44,108 ) NET INCOME (LOSS) (326,131 ) (2,068 ) (328,199 ) COMPREHENSIVE INCOME (LOSS) (210,804 ) (2,068 ) (212,872 ) (UNAUDITED) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 41,848 $ 17,083 $ 58,931 $ 569,255 $ 16,238 $ 585,493 TOTAL REVENUES 123,842 17,083 140,925 916,080 16,238 932,318 BENEFITS AND EXPENSES Policyholders' benefits (430,437 ) (42,173 ) (472,610 ) (331,909 ) (39,971 ) (371,880 ) Amortization of deferred policy acquisition costs (29,866 ) 19,524 (10,342 ) 610,687 18,558 629,245 TOTAL BENEFITS AND EXPENSES (565,465 ) (22,649 ) (588,114 ) 596,999 (21,413 ) 575,586 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 689,307 39,732 729,039 319,081 37,651 356,732 Income tax expense (benefit) (5,499 ) 10,554 5,055 (49,594 ) 10,541 (39,053 ) NET INCOME (LOSS) 694,806 29,178 723,984 368,675 27,110 395,785 COMPREHENSIVE INCOME (LOSS) 755,691 29,178 784,869 544,886 27,110 571,996 Consolidated Statements of Equity Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2013 $ 3,542,838 $ (17,362 ) $ 3,525,476 $ 4,406,221 $ (17,362 ) $ 4,388,859 Comprehensive income (loss): Net income (loss) 785,803 (6,135 ) 779,668 785,803 (6,135 ) 779,668 Total comprehensive income (loss) 907,848 (6,135 ) 901,713 Balance, December 31, 2014 3,580,641 (23,497 ) 3,557,144 4,553,985 (23,497 ) 4,530,488 Comprehensive income (loss): Net income (loss) 512,898 (4,895 ) 508,003 512,898 (4,895 ) 508,003 Total comprehensive income (loss) 399,012 (4,895 ) 394,117 Balance, December 31, 2015 3,663,539 (28,392 ) 3,635,147 4,510,817 (28,392 ) 4,482,425 (UNAUDITED) Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2015 $ 3,663,539 $ (28,392 ) $ 3,635,147 $ 4,510,817 $ (28,392 ) $ 4,482,425 Comprehensive income (loss): Net income (loss) (326,131 ) (2,068 ) (328,199 ) (326,131 ) (2,068 ) (328,199 ) Total comprehensive income (loss) (210,804 ) (2,068 ) (212,872 ) Balance, March 31, 2016 3,337,408 (30,460 ) 3,306,948 4,304,953 (30,460 ) 4,274,493 (UNAUDITED) Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2015 $ 3,663,539 $ (28,392 ) $ 3,635,147 $ 4,510,817 $ (28,392 ) $ 4,482,425 Comprehensive income (loss): Net income (loss) 368,675 27,110 395,785 368,675 27,110 395,785 Total comprehensive income (loss) 544,886 27,110 571,996 Balance, June 30, 2016 1,438,695 (1,282 ) 1,437,413 2,668,274 (1,282 ) 2,666,992 Consolidated Statements of Cash Flows Year Ended December 31, 2015 Year Ended December 31, 2014 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 512,898 $ (4,895 ) $ 508,003 $ 785,803 $ (6,135 ) $ 779,668 Policy charges and fee income (11,811 ) 3,041 (8,770 ) (76,188 ) 3,813 (72,375 ) Future policy benefits 1,503,445 30,783 1,534,228 1,402,458 38,084 1,440,542 Reinsurance recoverables (1,536,347 ) (22,818 ) (1,559,165 ) (1,302,695 ) (28,101 ) (1,330,796 ) Deferred policy acquisition costs 46,643 (3,475 ) 43,168 (190,550 ) (4,357 ) (194,907 ) Income taxes (34,243 ) (2,636 ) (36,879 ) 69,204 (3,304 ) 65,900 Cash flows from (used in) operating activities 1,142,929 0 1,142,929 1,077,692 0 1,077,692 (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (326,131 ) $ (2,068 ) $ (328,199 ) Policy charges and fee income (5,850 ) 845 (5,005 ) Future policy benefits 416,396 8,508 424,904 Reinsurance recoverables (353,572 ) (6,306 ) (359,878 ) Deferred policy acquisition costs 489,279 (966 ) 488,313 Income taxes (125,565 ) (13 ) (125,578 ) Cash flows from (used in) operating activities 333,424 0 333,424 (UNAUDITED) Six Months Ended June 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 368,675 $ 27,110 $ 395,785 Policy charges and fee income 78,763 (16,238 ) 62,525 Future policy benefits 659,730 (154,908 ) 504,822 Reinsurance recoverables (326,993 ) 1,434 (325,559 ) Deferred policy acquisition costs 408,155 18,558 426,713 Income taxes (78,531 ) 10,541 (67,990 ) Other, net (181,862 ) (78,333 ) (260,195 ) Cash flows from (used in) operating activities 5,386 (191,836 ) (186,450 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale 798,298 40,000 838,298 Cash flows from (used in) investing activities (537,625 ) 40,000 (497,625 ) CASH FLOWS FROM FINANCING ACTIVITIES: Ceded policyholders’ account deposits (584,464 ) (539,144 ) (1,123,608 ) Ceded policyholders’ account withdrawals 32,053 490,659 522,712 Contributed capital 205,000 200,321 405,321 Cash flows from (used in) financing activities 488,765 151,836 640,601 (UNAUDITED) Nine Months Ended September 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ 103,829 $ (16,238 ) $ 87,591 Reinsurance recoverables (1,369,986 ) 61,840 (1,308,146 ) Other, net 19,979 (211,545 ) (191,566 ) Cash flows from (used in) operating activities (43,926 ) (165,943 ) (209,869 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale 930,834 40,000 970,834 Cash flows from (used in) investing activities (795,911 ) 40,000 (755,911 ) CASH FLOWS FROM FINANCING ACTIVITIES: Policyholders' account deposits 3,085,729 40,119 3,125,848 Ceded policyholders’ account deposits (877,874 ) (810,163 ) (1,688,037 ) Ceded policyholders’ account withdrawals 49,958 695,666 745,624 Contributed capital 205,000 200,321 405,321 Cash flows from (used in) financing activities 548,328 125,943 674,271 |
Significant Accounting Polici24
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. |
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 DAC and related amortization; amortization of DSI; 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 accruals for contingent liabilities, including estimates 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. |
Investments in Debt, Equity Securities, and Commercial Mortgage and Other Loans | Investments The Company’s principal investments are fixed maturities; equity securities; commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 9 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to "Net investment income" in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets, at fair value represents equity securities held in support of a deferred compensation plan and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value is comprised of common stock and non-redeemable preferred stock, and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, DSI, future policy benefits, reinsurance recoverables and policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income". Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consist of the Company’s investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) it is more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, DSI, certain future policy benefits, reinsurance recoverables, policyholders’ account balances and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs”, net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 12 . Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. DAC related to non-participating traditional individual life insurance is amortized in proportion to gross premiums. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 4 for additional information regarding DAC. |
Deferred Sales Inducements | Deferred Sales Inducements The Company offers various types of sales inducements to contractholders primarily related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducements balances are subject to periodic recoverability testing. The Company records amortization of deferred sales inducements in “Interest credited to policyholders’ account balances.” Deferred sales inducements for applicable products are adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 6 for additional information regarding sales inducements. |
Reinsurance Recoverable | Reinsurance recoverables Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third-party reinsurers. For additional information about these affiliated arrangements see Note 12 . |
Separate Account Assets And Liabilities | Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders and other customers. The assets consist primarily of equity securities and real estate related investments. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the contractholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See Note 6 to the Consolidated Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s consolidated results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. |
Other Assets And Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of premiums due, deferred loss on reinsurance with affiliates and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Other liabilities consist primarily of accrued expenses, reinsurance payables, technical overdrafts, deferred gain on reinsurance with affiliates and payables resulting from purchases of securities that had not yet been settled at the balance sheet date. |
Future Policy Benefits | Future Policy Benefits The Company’s liability for future policy benefits includes liabilities related to certain long-duration life and annuity contracts, which are discussed more fully in Note 6 . These liabilities represent reserves for the guaranteed minimum death and optional living benefit features on our variable annuity products and no lapse guarantees for our variable and universal life products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 6 and Note 9 . The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders related to contracts that have fixed and guaranteed terms, where the timing and amount of payment depends on policyholder mortality and maintenance expenses less the present value of future net premiums. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 5 for additional information regarding future policy benefits. |
Policyholders Account Balances | Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. |
Securities Repurchase and Resale Agreements | Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”; however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General, administrative and other expenses”). |
Securities Loaned Transactions | Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned transactions are with large brokerage firms and large banks. Income and expenses associated with securities loaned transactions used to earn spread income are reported as “Net investment income”; however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General, administrative and other expenses”). |
Contingent Liabilities | Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. |
Insurance Revenue and Expense Recognitions | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium method. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium method. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 6 for additional information regarding these contracts. Amounts received as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI. |
Asset Administration Fees | Asset Administration Fees The Company receives asset administration fee income on contractholders’ account balances invested in The Prudential Series Funds, which are a portfolio of mutual fund investments related to the Company’s separate account products. Also, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust (see Note 14 ). In addition, the Company receives fees from contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk ("NPR") used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 10 , all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of the effective portion of cash flow hedges. Cash flows from derivatives are reported in the operating, investing or financing activities sections in the Consolidated Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded 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 Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge. Under such circumstances, the ineffective portion is recorded in “Realized investment gains (losses), net". The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Consolidated Statements of Operations line item associated with the hedged item. If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. The component of AOCI related to discontinued cash flow hedges is reclassified to the Consolidated Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net”. Gains and losses that were in AOCI pursuant to the hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net”. If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to classify the entire instrument as a trading account asset and report it within “Trading account assets, at fair value". The Company sells variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. The Company had reinsurance agreements to transfer the risks related to certain of these benefit features to an affiliate, Pruco Re through March 31, 2016. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, to PALAC, excluding the PLNJ business, which was reinsured to Prudential Insurance, in each case under a coinsurance and modified coinsurance agreement. See Note 1 for additional information. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits" and “Reinsurance recoverables”. Changes in the fair value are determined using valuation models as described in Note 9 and are recorded in “Realized investment gains (losses), net". The Company, excluding its subsidiaries, also sells certain universal life products that contain a no lapse guarantee provision that is reinsured with an affiliate, UPARC. The reinsurance of this no lapse guarantee results in an embedded derivative that incurs market risk primarily in the form of interest rate risk. Interest rate sensitivity can result in changes in the reinsurance recoverables that are carried at fair value and included in “Reinsurance recoverables,” which charges are recorded in “Realized investment gains (losses), net". The Company amended or entered into multiple reinsurance transactions (see Note 12 ). The settlement of recapture and coinsurance premiums related to these reinsurance transactions occurred subsequent to the effective date of the reinsurance transaction. As a result, the recapture and coinsurance premiums were treated as if settled on the effective date and adjusted for the time elapsed between this date and the settlement date. This adjustment was equal to the earned interest and changes in market values from the effective date through the settlement date related to fixed maturity securities from an asset portfolio within the affiliate company. This settlement feature was accounted for as a derivative. |
Short-Term And Long-Term Debt | Short-Term and Long-Term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General, administrative and other expenses” in the Company’s Consolidated Statements of Operations. Short-term debt is debt coming due in the next twelve months , including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items the Company intends to refinance on a long-term basis in the near term. See Note 14 for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members with losses record tax benefits to the extent such losses are recognized in the consolidated federal tax provision. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Consolidated Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax returns but have not yet been recognized in the Company’s financial statements. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 8 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process, the first step being recognition. The Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 8 for additional information regarding income taxe |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. There have been no ASU adopted during the current year ended December 31, 2016 . ASU issued but not yet adopted as of the reporting date December 31, 2016 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The ASU is based on the core principle that revenue is recognized to depict the transfer of promised 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 standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments are explicitly scoped out of the standard. January 1, 2018 using one of two retrospective application methods (early adoption permitted beginning January 1, 2017). The Company plans to adopt the standard on January 1, 2018 using the modified retrospective application. Given that insurance contracts and financial instruments are explicitly scoped out of the standard, the Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-01 , The ASU revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method. The amendments are to be applied prospectively as they relate to equity investments without readily determinable fair value. The Company’s equity investments, except for those accounted for using the equity method, will generally be carried on the Consolidated Statements of Financial Position at fair value with changes in fair value reported in current earnings. The Company is continuing to assess additional impacts of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-02 , This ASU ensures that assets and liabilities from all outstanding lease contracts are recognized on the balance sheet (with limited exception). The ASU substantially changes a Lessee’s accounting for leases and requires the recording on balance sheet of a right-of-use asset and liability to make lease payments for most leases. A Lessee will continue to recognize expense in its income statement in a manner similar to the requirements under the current lease accounting standard. For Lessors, the standard modifies classification criteria and accounting for sales-type and direct financing leases and requires a Lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a Lessee and record a lease receivable and residual asset (receivable and residual approach). The standard also eliminates the real estate specific provisions of the current standard (i.e., sale-leaseback). January 1, 2019 using the modified retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method, however prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-15 , This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Update 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements |
Business and Basis of Present25
Business and Basis of Presentation Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Reinsurance | The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 10,702 $ 4,166 $ (7,719 ) $ 7,149 Cash and cash equivalents 496 0 12 508 Deferred policy acquisition costs 4,565 0 (3,449 ) 1,116 Reinsurance recoverables 24,781 (6,312 ) 10,267 28,736 Deferred sales inducements 550 0 (550 ) 0 Other assets 94 0 211 305 Income taxes 0 0 23 23 TOTAL ASSETS 151,859 (2,146 ) (1,205 ) 148,508 LIABILITIES AND EQUITY LIABILITIES Income taxes $ 91 $ 17 $ 0 $ 108 Short-term and long-term debt to affiliates(2) 1,385 0 (1,384 ) 1 Other liabilities 870 0 0 870 TOTAL LIABILITIES 147,554 17 (1,384 ) 146,187 EQUITY Retained earnings(3) 3,337 (2,163 ) 258 1,432 Accumulated other comprehensive income 180 0 (79 ) 101 TOTAL EQUITY 4,305 (2,163 ) 179 2,321 TOTAL LIABILITIES AND EQUITY 151,859 (2,146 ) (1,205 ) 148,508 Significant Non-Cash Transactions (1) The decline in total investments includes non-cash activities of $ 7.7 billion for asset transfers related to the reinsurance transaction with PALAC and Prudential Insurance, partially offset by $ 4.2 billion of assets received related to the recapture transaction with Pruco Re. (2) The Company received ceding commissions of $ 3.6 billion and $ 0.4 billion from PALAC and Prudential Insurance, respectively, of which $ 1.1 billion and $ 0.1 billion were in the form of reassignment of debt to PALAC and Prudential Insurance, respectively. (3) Retained earnings includes dividends of $ 2.8 billion to Prudential Insurance, and then distributed to Prudential Financial, as part of the Variable Annuities Recapture. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ (880 ) $ (880 ) Realized investment gains (losses), net (2,146 ) 2,951 805 TOTAL REVENUES (2,146 ) 2,071 (75 ) BENEFITS AND EXPENSES Policyholders' benefits 0 (547 ) (547 ) General, administrative and other expenses 0 (211 ) (211 ) TOTAL BENEFITS AND EXPENSES 0 (758 ) (758 ) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (2,146 ) 2,829 683 Income tax expense (benefit) 17 (23 ) (6 ) NET INCOME (LOSS) $ (2,163 ) $ 2,852 $ 689 As part of the Variable Annuities Recapture, the Company received invested assets of $4.2 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016 and unwound the associated reinsurance recoverable of $6.3 billion . As a result, the Company recognized a loss of $2.1 billion immediately. As part of the Variable Annuities Recapture, the Company transferred invested assets of $7 billion and $0.7 billion to PALAC and Prudential Insurance, respectively, and established reinsurance recoverables of $10.3 billion . In addition, the Company received ceding commissions of $3.6 billion and $0.4 billion from PALAC and Prudential Insurance, respectively, of which $1.1 billion and $0.1 billion were in the form of reassignment of debt to PALAC and Prudential Insurance, respectively. Also, the Company unwound its deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances related to its variable annuity contracts as of March 31, 2016, which was equivalent to the ceding commission. For the reinsurance of the variable annuity base contracts, the Company recognized a loss of $0.2 billion , which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a benefit of $2.8 billion immediately since the reinsurance contract is accounted for as a free-standing derivative. The Company paid a dividend of $2.6 billion to Prudential Insurance, which was then distributed to Prudential Financial. The following table summarizes the asset transfers related to Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC and Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 4,166 $ 4,166 $ 0 $ 0 PALAC Apr - June 2016 Sale Fixed Maturity, Trading Account Assets, Commercial Mortgages, Derivatives and JV/LP Investments $ (6,994 ) $ (6,872 ) $ 0 $ 122 Prudential Insurance Apr - June 2016 Dividend Fixed Maturity $ (19 ) $ (19 ) $ (19 ) $ 0 Prudential Insurance Apr - June 2016 Sale Fixed Maturity, Trading Account Assets, Equity Securities, Commercial Mortgages and Derivatives $ (717 ) $ (703 ) $ 15 $ 0 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 154,180 $ 6,593 $ 33 $ 160,740 $ 0 Obligations of U.S. states and their political subdivisions 618,447 14,592 6,553 626,486 0 Foreign government bonds 111,025 2,143 4,386 108,782 0 Public utilities 706,536 33,950 10,519 729,967 0 Redeemable preferred stock 4,136 834 156 4,814 0 All other U.S. public corporate securities 1,802,350 67,908 28,846 1,841,412 (215 ) All other U.S. private corporate securities 714,776 14,555 7,702 721,629 (236 ) All other foreign public corporate securities 216,428 7,371 4,127 219,672 0 All other foreign private corporate securities 577,761 4,866 33,455 549,172 0 Asset-backed securities(1) 184,414 5,164 562 189,016 (2,534 ) Commercial mortgage-backed securities 382,717 5,783 5,829 382,671 0 Residential mortgage-backed securities(2) 80,141 3,355 308 83,188 (274 ) Total fixed maturities, available-for-sale $ 5,552,911 $ 167,114 $ 102,476 $ 5,617,549 $ (3,259 ) Equity securities, available-for-sale: Common stocks: Mutual funds $ 16,324 $ 441 $ 124 $ 16,641 Public utilities 66 2 28 40 Industrial, miscellaneous & other 0 75 0 75 Total equity securities, available-for-sale $ 16,390 $ 518 $ 152 $ 16,756 (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 OTTI losses in AOCI, which were not included in earnings. Amount excludes $8 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, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 87,107 $ 7,170 $ 228 $ 94,049 $ 0 Obligations of U.S. states and their political subdivisions 602,508 24,219 1,958 624,769 0 Foreign government bonds 70,107 3,094 2,791 70,410 0 Public utilities 790,038 30,862 18,402 802,498 0 Redeemable preferred stock 5,316 1,530 145 6,701 0 All other U.S. public corporate securities 2,138,358 81,905 61,142 2,159,121 (217 ) All other U.S. private corporate securities 1,085,345 26,299 13,963 1,097,681 0 All other foreign public corporate securities 270,063 8,230 6,508 271,785 0 All other foreign private corporate securities 784,283 9,933 42,528 751,688 0 Asset-backed securities(1) 431,578 6,203 2,650 435,131 (3,056 ) Commercial mortgage-backed securities 396,160 10,614 2,429 404,345 0 Residential mortgage-backed securities(2) 114,943 7,876 65 122,754 (690 ) Total fixed maturities, available-for-sale $ 6,775,806 $ 217,935 $ 152,809 $ 6,840,932 $ (3,963 ) Equity securities, available-for-sale: Common stocks: Mutual funds $ 54,543 $ 256 $ 3,030 $ 51,769 Public utilities 66 2 29 39 Industrial, miscellaneous & other 0 165 0 165 Total equity securities, available-for-sale $ 54,609 $ 423 $ 3,059 $ 51,973 (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 OTTI losses in AOCI, which were not included in earnings. Amount excludes $9 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. |
Duration Of Gross Unrealized Losses On Fixed Maturity and Equity Securities Disclosures | The following tables show 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, at December 31 for the years indicated: 2016 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 $ 603 $ 33 $ 0 $ 0 $ 603 $ 33 Obligations of U.S. states and their political subdivisions 239,146 6,553 0 0 239,146 6,553 Foreign government bonds 81,074 4,055 1,690 331 82,764 4,386 Public utilities 207,226 7,847 21,394 2,672 228,620 10,519 Redeemable preferred stock 0 0 0 156 0 156 All other U.S. public corporate securities 568,763 20,695 73,575 8,151 642,338 28,846 All other U.S. private corporate securities 232,561 6,082 29,071 1,620 261,632 7,702 All other foreign public corporate securities 86,492 3,188 5,433 939 91,925 4,127 All other foreign private corporate securities 236,512 13,604 101,858 19,851 338,370 33,455 Asset-backed securities 37,355 492 49,346 70 86,701 562 Commercial mortgage-backed securities 191,674 5,827 947 2 192,621 5,829 Residential mortgage-backed securities 36,224 302 1,045 6 37,269 308 Total fixed maturities, available-for-sale $ 1,917,630 $ 68,678 $ 284,359 $ 33,798 $ 2,201,989 $ 102,476 Equity securities, available-for-sale $ 0 $ 0 $ 2,965 $ 152 $ 2,965 $ 152 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 $ 5,985 $ 228 $ 0 $ 0 $ 5,985 $ 228 Obligations of U.S. states and their political subdivisions 77,756 1,958 0 0 77,756 1,958 Foreign government bonds 44,854 1,940 1,813 851 46,667 2,791 Public utilities 323,086 13,151 26,094 5,251 349,180 18,402 Redeemable preferred stock 0 145 0 0 0 145 All other U.S. public corporate securities 802,158 49,343 61,110 11,799 863,268 61,142 All other U.S. private corporate securities 323,218 12,476 17,103 1,487 340,321 13,963 All other foreign public corporate securities 121,662 5,098 6,079 1,410 127,741 6,508 All other foreign private corporate securities 284,191 14,089 154,791 28,439 438,982 42,528 Asset-backed securities 249,084 1,565 93,675 1,085 342,759 2,650 Commercial mortgage-backed securities 129,765 2,350 4,221 79 133,986 2,429 Residential mortgage-backed securities 18,435 59 1,519 6 19,954 65 Total fixed maturities, available-for-sale $ 2,380,194 $ 102,402 $ 366,405 $ 50,407 $ 2,746,599 $ 152,809 Equity securities, available-for-sale $ 35,869 $ 2,339 $ 9,281 $ 720 $ 45,150 $ 3,059 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 , were as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 222,580 $ 220,785 Due after one year through five years 695,311 713,491 Due after five years through ten years 950,127 941,499 Due after ten years 3,037,621 3,086,899 Asset-backed securities 184,414 189,016 Commercial mortgage-backed securities 382,717 382,671 Residential mortgage-backed securities 80,141 83,188 Total fixed maturities, available-for-sale $ 5,552,911 $ 5,617,549 |
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 and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities for the years indicated: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 833,562 $ 171,589 $ 245,618 Proceeds from maturities/repayments(1) 495,969 642,503 656,249 Gross investment gains from sales, prepayments and maturities 94,262 12,496 20,394 Gross investment losses from sales and maturities (10,475 ) (1,528 ) (2,704 ) Equity securities, available-for-sale: Proceeds from sales(2) $ 34,618 $ 5,732 $ 17,873 Gross investment gains from sales 363 400 1,085 Gross investment losses from sales (1,933 ) 0 0 Fixed maturity and equity security impairments: Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(3) $ (17,677 ) $ (1,463 ) $ (127 ) Writedowns for impairments on equity securities 0 (3 ) 0 (1) Includes $(1.5) million , $0.4 million and $(5.8) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Includes $(0.0) million and $0.0 million of non-cash related proceeds for the years ended December 31, 2015 and 2014 . There were no non-cash related proceeds included for the year ended December 31, 2016 . (3) Excludes the portion of OTTI recorded in OCI 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 | The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in thousands) Balance, beginning of period $ 7,041 $ 8,729 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,294 ) (1,719 ) Credit loss impairments recognized in the current period on securities not previously impaired 522 0 Additional credit loss impairments recognized in the current period on securities previously impaired 6 71 Increases due to the passage of time on previously recorded credit losses 242 213 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (339 ) (253 ) Assets transferred to parent and affiliates (658 ) 0 Balance, end of period $ 5,520 $ 7,041 |
Trading Account Investment Table [Table Text Block] | The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Fixed maturities $ 23,555 $ 19,558 $ 50,565 $ 46,364 Equity securities 11,929 15,770 14,761 18,248 Total trading account assets $ 35,484 $ 35,328 $ 65,326 $ 64,612 |
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans were comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Retail $ 243,225 21.1 % $ 440,767 26.7 % Apartments/Multi-Family 318,667 27.7 445,379 27.0 Industrial 185,682 16.1 254,884 15.4 Office 161,980 14.1 226,332 13.6 Other 124,465 10.8 92,581 5.6 Hospitality 54,597 4.7 85,910 5.2 Total commercial mortgage loans 1,088,616 94.5 1,545,853 93.5 Agricultural property loans 63,323 5.5 106,623 6.5 Total commercial mortgage and agricultural property loans by property type 1,151,939 100.0 % 1,652,476 100.0 % Valuation allowance (1,558 ) (2,651 ) Total net commercial mortgage and agricultural property loans by property type 1,150,381 1,649,825 Other loans: Uncollateralized loans 0 8,410 Valuation allowance 0 0 Total net other loans 0 8,410 Total commercial mortgage and other loans $ 1,150,381 $ 1,658,235 |
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, was as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 2,587 $ 64 $ 0 $ 2,651 Addition to (release of) allowance for losses (1,074 ) (19 ) 0 (1,093 ) Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 1,513 $ 45 $ 0 $ 1,558 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 4,071 $ 83 $ 0 $ 4,154 Addition to (release of) allowance for losses (1,484 ) (19 ) 0 (1,503 ) Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 2,587 $ 64 $ 0 $ 2,651 |
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: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,513 45 0 1,558 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,513 $ 45 $ 0 $ 1,558 Recorded Investment(1): Individually evaluated for impairment $ 2,528 $ 0 $ 0 $ 2,528 Collectively evaluated for impairment 1,086,088 63,323 0 1,149,411 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,088,616 $ 63,323 $ 0 $ 1,151,939 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,587 64 0 2,651 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 2,587 $ 64 $ 0 $ 2,651 Recorded Investment(1): Individually evaluated for impairment $ 0 $ 287 $ 0 $ 287 Collectively evaluated for impairment 1,545,853 106,336 8,410 1,660,599 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,545,853 $ 106,623 $ 8,410 $ 1,660,886 (1) Recorded investment reflects the carrying value gross of related allowance. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: Debt Service Coverage Ratio - December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 732,473 $ 19,844 $ 0 $ 752,317 60%-69.99% 267,122 7,515 900 275,537 70%-79.99% 88,811 30,533 0 119,344 80% or greater 4,503 0 238 4,741 Total commercial mortgage and agricultural property loans $ 1,092,909 $ 57,892 $ 1,138 $ 1,151,939 Debt Service Coverage Ratio - December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 1,004,751 $ 35,579 $ 6,762 $ 1,047,092 60%-69.99% 378,799 4,969 4,016 387,784 70%-79.99% 197,208 12,471 0 209,679 80% or greater 0 2,938 4,983 7,921 Total commercial mortgage and agricultural property loans $ 1,580,758 $ 55,957 $ 15,761 $ 1,652,476 |
Past Due Financing Receivables [Table Text Block] | The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,088,616 $ 0 $ 0 $ 0 $ 1,088,616 $ 0 Agricultural property loans 63,323 0 0 0 63,323 0 Other loans 0 0 0 0 0 0 Total commercial mortgage and other loans $ 1,151,939 $ 0 $ 0 $ 0 $ 1,151,939 $ 0 December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,545,853 $ 0 $ 0 $ 0 $ 1,545,853 $ 0 Agricultural property loans 106,336 287 0 0 106,623 0 Other loans 8,410 0 0 0 8,410 0 Total commercial mortgage and other loans $ 1,660,599 $ 287 $ 0 $ 0 $ 1,660,886 $ 0 (1) There were no loans accruing interest |
Schedule Of Other Long Term Investments | The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in thousands) Company's investment in separate accounts $ 34,088 $ 28,567 Joint ventures and limited partnerships: Private equity 139,493 140,310 Hedge funds 81,104 130,575 Real estate-related 11,912 9,685 Total joint ventures and limited partnerships 232,509 280,570 Derivatives 77,866 70,100 Total other long-term investments $ 344,463 $ 379,237 |
Net Investment Income | The following table sets forth net investment income by asset class for the years ended December 31: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 242,351 $ 269,073 $ 262,532 Equity securities, available-for-sale 1 2 2 Trading account assets 2,051 2,800 1,018 Commercial mortgage and other loans 58,940 86,354 81,848 Policy loans 62,735 62,304 60,847 Short-term investments and cash equivalents 1,767 1,042 528 Other long-term investments 29,512 17,739 16,962 Gross investment income 397,357 439,314 423,737 Less: investment expenses (21,407 ) (22,727 ) (19,719 ) Net investment income $ 375,950 $ 416,587 $ 404,018 |
Schedule of Realized Gains (Losses) | Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2016 2015 2014 (in thousands) Fixed maturities $ 66,110 $ 9,505 $ 17,563 Equity securities (1,570 ) 397 1,085 Commercial mortgage and other loans 29,584 1,503 4,644 Joint ventures and limited partnerships (229 ) 320 210 Derivatives(1) 664,533 (220,292 ) 90,556 Short-term investments and cash 21 29 9 Realized investment gains (losses), net $ 758,449 $ (208,538 ) $ 114,067 |
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class as of December 31 for the years indicated: 2016 2015 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 4,883 $ 5,196 $ 5,333 Fixed maturity securities, available-for-sale—all other 59,755 59,930 322,358 Equity securities, available-for-sale 366 (2,636 ) 619 Derivatives designated as cash flow hedges(1) 40,931 48,271 11,585 Other investments 6,497 6,272 10,015 Net unrealized gains (losses) on investments $ 112,432 $ 117,033 $ 349,910 (1) See Note 10 for more information on cash flow hedges. |
Securities Pledged | As of December 31 for the years indicated in the table below, the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral as reported in the Consolidated Statements of Financial Position included the following: 2016 2015 (in thousands) Pledged Collateral: Fixed maturity securities, available-for-sale $ 140,810 $ 38,421 Total securities pledged $ 140,810 $ 38,421 Liabilities Supported by Pledged Collateral: Cash collateral for loaned securities $ 74,976 $ 40,416 Securities sold under agreements to repurchase 68,904 0 Total liabilities supported by pledged collateral $ 143,880 $ 40,416 |
Deferred Policy Acquisition C27
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule Of Deferred Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 5,129,931 $ 5,081,938 $ 5,045,025 Capitalization of commissions, sales and issue expenses 316,828 616,002 626,718 Amortization-Impact of assumption and experience unlocking and true-ups 130,652 112,039 276,743 Amortization-All other (758,753 ) (771,208 ) (708,555 ) Change in unrealized investment gains and losses (28,723 ) 91,160 (67,056 ) Other(1) (3,448,842 ) 0 (90,937 ) Balance, end of year $ 1,341,093 $ 5,129,931 $ 5,081,938 (1) Represents ceded DAC upon reinsurance agreements with PALAC and Prudential Insurance in 2016 and PURC in 2014. See Note 1 and Note 12 for additional information. |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits [Abstract] | |
Schedule of Liability for Future Policy Benefits and Policyholders' Account Balances | Policyholders’ account balances at December 31 were as follows: 2016 2015 (in thousands) Interest-sensitive life contracts $ 14,593,376 $ 13,344,332 Individual annuities 2,861,882 2,549,289 Guaranteed interest accounts 310,321 363,332 Other 1,129,314 947,871 Total policyholders’ account balances $ 18,894,893 $ 17,204,824 Future policy benefits at December 31 were as follows: 2016 2015 (in thousands) Life insurance – domestic $ 9,643,227 $ 8,277,233 Life insurance – Taiwan 1,240,353 1,163,999 Individual and group annuities and supplementary contracts 548,064 519,462 Other contract liabilities 5,071,616 5,238,061 Total future policy benefits $ 16,503,260 $ 15,198,755 |
Certain Long-Duration Contrac29
Certain Long-Duration Contracts With Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2016 and 2015 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death At Annuitization/ Accumulation(1) (in thousands) Variable Annuity Contracts Return of net deposits Account value $ 85,056,405 N/A $ 79,034,807 N/A Net amount at risk $ 178,806 N/A $ 385,773 N/A Average attained age of contractholders 64 years N/A 64 years N/A Minimum return or contract value Account value $ 20,091,528 $ 95,908,923 $ 20,113,504 $ 89,935,139 Net amount at risk $ 2,039,249 $ 2,875,524 $ 2,349,232 $ 2,633,207 Average attained age of contractholders 68 years 65 years 68 years 64 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits as described herein (2) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. December 31, 2016 December 31, 2015 In the Event of Death(2) (in thousands) Variable Life, Variable Universal Life and Universal Life Contracts No-lapse guarantees(1) Separate account value $ 3,125,804 $ 2,907,924 General account value $ 6,234,678 $ 5,449,616 Net amount at risk $ 119,838,053 $ 103,714,953 Average attained age of contractholders 55 years 54 years (1) Excludes assumed reinsurance of GUL business from Prudential Insurance in connection with the acquisition of The Hartford Life Business that is retroceded 100% to PARU. (2) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016 December 31, 2015 (in thousands) Equity funds $ 59,482,605 $ 59,671,583 Bond funds 36,221,736 33,045,700 Money market funds 6,557,987 3,808,758 Total(1) $ 102,262,328 $ 96,526,041 (1) Excludes ceded reinsurance business to PALAC and Prudential Insurance related to the Variable Annuities Recapture transaction, as described in Note 1. See Note 12 for amounts recoverable from reinsurers. |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees on variable contracts. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders' benefits”. Guaranteed minimum income and withdrawal benefits (“GMIWB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum accumulation benefits (“GMAB”) features are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits”. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 9 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. Prior period amounts in the table below have been revised to correct previously reported amounts. These prior period revisions have also been reflected in the Consolidated Financial Statements. See Note 16 for a more detailed description of the revisions. GMDB GMIB GMWB/GMIWB/ GMAB Total Variable Annuity Variable Life, Variable Universal Life & Universal Life(2) Variable Annuity (in thousands) Balance as of December 31, 2013 $ 207,854 $ 1,834,290 $ 22,454 $ (348,400 ) $ 1,716,198 Incurred guarantee benefits(1) 131,594 822,167 17,905 5,342,010 6,313,676 Paid guarantee benefits (22,079 ) (18,192 ) (853 ) 0 (41,124 ) Changes in unrealized investment gains and losses(3) 3,848 283,668 175 0 287,691 Balance as of December 31, 2014 321,217 2,921,933 39,681 4,993,610 8,276,441 Incurred guarantee benefits(1) 95,747 538,906 (6,900 ) 211,825 839,578 Paid guarantee benefits (34,021 ) (21,811 ) (1,938 ) 0 (57,770 ) Changes in unrealized investment gains and losses(3) (6,049 ) (193,207 ) (225 ) 0 (199,481 ) Balance as of December 31, 2015 376,894 3,245,821 30,618 5,205,435 8,858,768 Incurred guarantee benefits(1) 48,832 746,130 (1,693 ) (164,427 ) 628,842 Paid guarantee benefits (38,661 ) (35,894 ) (1,892 ) 0 (76,447 ) Changes in unrealized investment gains and losses 928 102,124 5 0 103,057 Balance as of December 31, 2016 $ 387,993 $ 4,058,181 $ 27,038 $ 5,041,008 $ 9,514,220 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as embedded derivatives. (2) Includes revision for prior year information related to certain GMDB life products. See Note 16 for additional information. (3) Prior period amounts are presented on a basis consistent with the current period presentation. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in thousands) Balance as of December 31, 2013 $ 989,889 Capitalization 9,112 Amortization-Impact of assumption and experience unlocking and true-ups 34,420 Amortization-All other (194,673 ) Change in unrealized investment gains (losses) (1,957 ) Balance as of December 31, 2014 836,791 Capitalization 6,462 Amortization-Impact of assumption and experience unlocking and true-ups 21,829 Amortization-All other (183,843 ) Change in unrealized investment gains (losses) 3,605 Balance as of December 31, 2015 684,844 Capitalization 932 Amortization-Impact of assumption and experience unlocking and true-ups 11,817 Amortization-All other (144,670 ) Change in unrealized investment gains (losses) (2,802 ) Other(1) (550,121 ) Balance as of December 31, 2016 $ 0 (1) Represents ceded DSI upon reinsurance agreements with PALAC and Prudential Insurance in 2016. See Note 1 and Note 12 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Current tax expense (benefit): U.S. Federal $ (99,443 ) $ 105,992 $ 112,742 State and local 49 129 0 Total (99,394 ) 106,121 112,742 Deferred tax expense (benefit): U.S. Federal 25,525 (116,762 ) 24,327 Total 25,525 (116,762 ) 24,327 Total income tax expense (benefit) from operations (73,869 ) (10,641 ) 137,069 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 3,322 (61,322 ) 65,717 Additional paid-in capital 587 (6,560 ) (6,507 ) Total income tax expense (benefit) $ (69,960 ) $ (78,523 ) $ 196,279 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s actual income tax expense (benefit) for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons: 2016 2015 2014 (in thousands) Expected federal income tax expense $ 112,472 $ 174,077 $ 320,866 Non-taxable investment income (146,324 ) (161,407 ) (152,844 ) Tax credits (30,916 ) (24,232 ) (32,881 ) Domestic production activities deduction, net (9,488 ) 0 0 Other 387 921 1,928 Total income tax expense (benefit) from operations $ (73,869 ) $ (10,641 ) $ 137,069 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2016 2015 (in thousands) Deferred tax assets Insurance reserves $ 148,115 $ 1,668,038 Other 1,966 1,442 Deferred tax assets 150,081 1,669,480 Deferred tax liabilities Deferred policy acquisition costs 45,405 1,398,775 Deferred sales inducements 0 239,695 Net unrealized gains on securities 24,949 23,991 Investments 171,303 69,163 Deferred tax liabilities 241,657 1,731,624 Net deferred tax asset (liability) $ (91,576 ) $ (62,144 ) |
Unrecognized Tax Benefits Reconciliation | The Company’s unrecognized tax benefits for the years ended December 31 are as follows: 2016 2015 2014 (in thousands) Balance at January 1, $ 0 $ 0 $ 0 Increases in unrecognized tax benefits-prior years 4,744 0 0 (Decreases) in unrecognized tax benefits-prior years 0 0 0 Increases in unrecognized tax benefits-current year 4,744 0 0 (Decreases) in unrecognized tax benefits-current year 0 0 0 Settlements with taxing authorities 0 0 0 Balance at December 31, $ 9,488 $ 0 $ 0 Unrecognized tax benefits that, if recognized, would favorably impact the effective rate $ 9,488 $ 0 $ 0 |
Fair Value of Assets and Liab31
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 160,740 $ 0 $ 0 $ 160,740 Obligations of U.S. states and their political subdivisions 0 626,486 0 0 626,486 Foreign government bonds 0 108,782 0 0 108,782 U.S. corporate public securities 0 2,306,409 55,109 0 2,361,518 U.S. corporate private securities 0 851,585 32,699 0 884,284 Foreign corporate public securities 0 221,848 0 0 221,848 Foreign corporate private securities 0 584,268 14,748 0 599,016 Asset-backed securities(5) 0 169,160 19,856 0 189,016 Commercial mortgage-backed securities 0 382,671 0 0 382,671 Residential mortgage-backed securities 0 83,188 0 0 83,188 Subtotal 0 5,495,137 122,412 0 5,617,549 Trading account assets: Corporate securities 0 19,256 0 0 19,256 Asset-backed securities(5) 0 302 0 0 302 Equity securities 0 0 15,770 0 15,770 Subtotal 0 19,558 15,770 0 35,328 Equity securities, available-for-sale 41 16,640 75 0 16,756 Short-term investments 31,007 5,650 0 0 36,657 Cash equivalents 5,644 1,998 0 0 7,642 Other long-term investments 0 90,884 0 (13,019 ) 77,865 Reinsurance recoverables 0 0 5,474,263 0 5,474,263 Receivables from parent and affiliates 0 131,144 6,493 0 137,637 Subtotal excluding separate account assets 36,692 5,761,011 5,619,013 (13,019 ) 11,403,697 Separate account assets(2) 0 116,040,888 0 0 116,040,888 Total assets $ 36,692 $ 121,801,899 $ 5,619,013 $ (13,019 ) $ 127,444,585 Future policy benefits(3) $ 0 $ 0 $ 5,041,007 $ 0 $ 5,041,007 Policyholders' account balances 0 0 20,337 0 20,337 Payables to parent and affiliates 0 12,854 0 (12,854 ) 0 Total liabilities $ 0 $ 12,854 $ 5,061,344 $ (12,854 ) $ 5,061,344 As of December 31, 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 $ 0 $ 94,049 $ 0 $ 0 $ 94,049 Obligations of U.S. states and their political subdivisions 0 624,769 0 0 624,769 Foreign government bonds 0 70,410 0 0 70,410 U.S. corporate public securities 0 2,635,551 55,003 0 2,690,554 U.S. corporate private securities 0 1,322,213 22,716 0 1,344,929 Foreign corporate public securities 0 275,349 0 0 275,349 Foreign corporate private securities 0 760,869 17,773 0 778,642 Asset-backed securities(5) 0 261,784 173,347 0 435,131 Commercial mortgage-backed securities 0 404,345 0 0 404,345 Residential mortgage-backed securities 0 122,754 0 0 122,754 Subtotal 0 6,572,093 268,839 0 6,840,932 Trading account assets: Corporate securities 0 44,374 0 0 44,374 Asset-backed securities(5) 0 1,990 0 0 1,990 Equity securities 0 0 18,248 0 18,248 Subtotal 0 46,364 18,248 0 64,612 Equity securities, available-for-sale 39 51,769 165 0 51,973 Short-term investments 18,713 36,093 0 0 54,806 Cash equivalents 50,998 143,927 0 0 194,925 Other long-term investments(4) 0 297,394 5,704 (230,554 ) 72,544 Reinsurance recoverables 0 0 4,940,011 0 4,940,011 Receivables from parent and affiliates 0 157,625 5,000 0 162,625 Subtotal excluding separate account assets 69,750 7,305,265 5,237,967 (230,554 ) 12,382,428 Separate account assets(2)(4) 0 108,967,162 0 0 108,967,162 Total assets $ 69,750 $ 116,272,427 $ 5,237,967 $ (230,554 ) $ 121,349,590 Future policy benefits(3) 0 0 $ 5,205,434 0 $ 5,205,434 Policyholders' account balances 0 0 0 0 0 Payables to parent and affiliates 0 32,849 0 (32,849 ) 0 Total liabilities $ 0 $ 32,849 $ 5,205,434 $ (32,849 ) $ 5,205,434 (1) “Netting” amounts represent cash collateral of $0.2 million and $198 million as of December 31, 2016 and 2015 , 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 liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. (3) As of December 31, 2016 , the net embedded derivative liability position of $5,041 million includes $1,157 million of embedded derivatives in an asset position and $6,198 million of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $5,205 million includes $655 million of embedded derivatives in an asset position and $5,860 million of embedded derivatives in a liability position. (4) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (5) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
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 December 31, 2016 Internal(1) External(2) Total (in thousands) Corporate securities(3) $ 45,715 $ 56,841 $ 102,556 Asset-backed securities(4) 55 19,801 19,856 Equity securities 3,014 12,831 15,845 Other long-term investments 0 0 0 Reinsurance recoverables 5,474,263 0 5,474,263 Receivables from parent and affiliates 0 6,493 6,493 Total assets $ 5,523,047 $ 95,966 $ 5,619,013 Future policy benefits $ 5,041,007 $ 0 $ 5,041,007 Policyholders' account balances 20,337 0 20,337 Total liabilities $ 5,061,344 $ 0 $ 5,061,344 As of December 31, 2015(5) Internal(1) External(2) Total (in thousands) Corporate securities(3) $ 40,492 $ 55,000 $ 95,492 Asset-backed securities(4) 158 173,189 173,347 Equity securities 165 18,248 18,413 Other long-term investments 3,260 2,444 5,704 Reinsurance recoverables 4,940,011 0 4,940,011 Receivables from parent and affiliates 0 5,000 5,000 Total assets $ 4,984,086 $ 253,881 $ 5,237,967 Future policy benefits $ 5,205,434 $ 0 $ 5,205,434 Policyholders' account balances 0 0 0 Total liabilities $ 5,205,434 $ 0 $ 5,205,434 (1) Represents valuations reflecting both 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. (3) Includes assets classified as fixed maturities available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
Fair Value Inputs, Assets, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(12) $ 45,715 Discounted cash flow Discount rate 4.54 % 15.00 % 8.06 % Decrease Market comparables EBITDA multiples(2) 4.0 X 4.0 X 4.0 X Increase Liquidation Liquidation value 98.21 % 98.21 % 98.21 % Increase Reinsurance recoverables - Living Benefits $ 5,041,262 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 433,001 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Mortality rate(5) 0 % 31 % Decrease Premium payment(6) 0.65 X 0.95 X Decrease Liabilities: Future policy benefits(7) $ 5,041,007 Discounted cash flow Lapse rate(8) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(9) 52 % 96 % Increase Withdrawal rate See table footnote (10) below Mortality rate(11) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 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(12) $ 40,492 Discounted cash flow Discount rate 5.76 % 17.95 % 8.35 % Decrease Market comparables EBITDA multiples(2) 5.0 X 5.0 X 5.0 X Increase Reinsurance recoverables - Living Benefits $ 4,600,193 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 339,818 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Mortality rate(5) 0 % 20 % Decrease Premium payment(13) 1.00 X 3.75 X Decrease Liabilities: Future policy benefits(7) $ 5,205,434 Discounted cash flow Lapse rate(8) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % 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 (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, policyholders are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as "X"). The multiples vary by funding level and policy duration. If the resulting premium in any duration is smaller than the minimum annual premium required to maintain the no-lapse guarantee, policyholders are assumed to pay the minimum annual premium. Policyholders are assumed to stop premium payments once the no-lapse guarantee is fully funded. The range shown as of December 31, 2016 excludes multiples for the first duration since all contracts are beyond the first duration. Assumption ranges for prior periods included first duration multiples. (7) Future policy benefits primarily represent general account liabilities for the optional 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 age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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. (12) Includes assets classified as fixed maturities available-for-sale. (13) 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. |
Fair Value Inputs, Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(12) $ 45,715 Discounted cash flow Discount rate 4.54 % 15.00 % 8.06 % Decrease Market comparables EBITDA multiples(2) 4.0 X 4.0 X 4.0 X Increase Liquidation Liquidation value 98.21 % 98.21 % 98.21 % Increase Reinsurance recoverables - Living Benefits $ 5,041,262 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 433,001 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Mortality rate(5) 0 % 31 % Decrease Premium payment(6) 0.65 X 0.95 X Decrease Liabilities: Future policy benefits(7) $ 5,041,007 Discounted cash flow Lapse rate(8) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(9) 52 % 96 % Increase Withdrawal rate See table footnote (10) below Mortality rate(11) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 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(12) $ 40,492 Discounted cash flow Discount rate 5.76 % 17.95 % 8.35 % Decrease Market comparables EBITDA multiples(2) 5.0 X 5.0 X 5.0 X Increase Reinsurance recoverables - Living Benefits $ 4,600,193 Fair values are determined in the same manner as future policy benefits Reinsurance recoverables - No Lapse Guarantee $ 339,818 Discounted cash flow Lapse rate(3) 0 % 12 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Mortality rate(5) 0 % 20 % Decrease Premium payment(13) 1.00 X 3.75 X Decrease Liabilities: Future policy benefits(7) $ 5,205,434 Discounted cash flow Lapse rate(8) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % 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 (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, policyholders are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as "X"). The multiples vary by funding level and policy duration. If the resulting premium in any duration is smaller than the minimum annual premium required to maintain the no-lapse guarantee, policyholders are assumed to pay the minimum annual premium. Policyholders are assumed to stop premium payments once the no-lapse guarantee is fully funded. The range shown as of December 31, 2016 excludes multiples for the first duration since all contracts are beyond the first duration. Assumption ranges for prior periods included first duration multiples. (7) Future policy benefits primarily represent general account liabilities for the optional 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 age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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. (12) Includes assets classified as fixed maturities available-for-sale. (13) 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. |
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. Year Ended December 31, 2016 Fixed Maturities Available-For-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities(6) Commercial Mortgage-Backed Securities Trading Account Assets - Asset Backed Securities Trading Account Assets - Equity Securities (in thousands) Fair value, beginning of period $ 55,003 $ 22,716 $ 0 $ 17,773 $ 173,347 $ 0 $ 0 $ 18,248 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(5) 0 58 0 (335 ) (891 ) 0 0 0 Asset management fees and other income 0 0 0 0 0 0 (32 ) 192 Included in other comprehensive income (loss) 88 237 0 (1,343 ) 158 0 0 0 Net investment income 1 77 0 (24 ) 149 0 0 0 Purchases 0 5,239 0 220 21,473 0 0 0 Sales 0 (7,979 ) 0 (1,949 ) (44,486 ) 0 0 (5,930 ) Issuances 0 0 0 0 0 0 0 0 Settlements (19 ) (2,984 ) 0 (7,725 ) (1,071 ) 0 (527 ) 0 Transfers into Level 3(1) 2,643 19,034 0 8,204 48,957 0 0 0 Transfers out of Level 3(1) (2,607 ) (3,699 ) 0 (73 ) (177,780 ) 0 0 0 Other(3) 0 0 0 0 0 0 559 3,260 Fair value, end of period $ 55,109 $ 32,699 $ 0 $ 14,748 $ 19,856 $ 0 $ 0 $ 15,770 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ (510 ) $ 0 $ (50 ) $ (1,378 ) $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (769 ) Year Ended December 31, 2016 Equity Securities, Available-for-Sale Other Long- term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair value, beginning of period $ 165 $ 5,704 $ 4,940,011 $ 5,000 $ (5,205,434 ) $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(5) 0 0 (281,009 ) (13 ) 975,823 (8,463 ) Asset management fees and other income 0 0 0 0 0 0 Included in other comprehensive income (loss) (90 ) 0 0 16 0 0 Net investment income 0 (67 ) 0 0 0 0 Purchases 0 102 815,261 6,500 0 0 Sales 0 0 0 (1,987 ) 0 0 Issuances 0 0 0 0 (811,396 ) 0 Settlements 0 0 0 0 0 (5,972 ) Transfers into Level 3(1) 0 0 0 0 0 0 Transfers out of Level 3(1) 0 (2,479 ) 0 (2,464 ) 0 0 Other(3) 0 (3,260 ) 0 (559 ) 0 (5,902 ) Fair value, end of period $ 75 $ 0 $ 5,474,263 $ 6,493 $ (5,041,007 ) $ (20,337 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 4,326,977 $ 0 $ 866,386 $ (8,463 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2015(4) Fixed Maturities, Available-for-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities (6) Commercial Mortgage - Backed Securities Trading Account Assets - Asset Backed Securities Trading Account Assets- Equity Securities (in thousands) Fair value, beginning of period $ 61,092 $ 14,539 $ 0 $ 9,170 $ 100,217 $ 0 $ 0 $ 5,540 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (448 ) 0 (1,085 ) 42 0 0 0 Asset management fees and other income 0 0 0 0 0 0 0 2,207 Included in other comprehensive income (loss) (46 ) (590 ) 14 884 (939 ) 0 0 0 Net investment income (2 ) 26 0 6 52 0 0 0 Purchases 1,901 19,363 973 5,685 112,250 0 0 0 Sales 0 (6,038 ) 0 (69 ) (40,130 ) 0 0 0 Issuances 0 0 0 0 0 0 0 0 Settlements (160 ) (7,812 ) 0 (8,667 ) (2,362 ) 0 0 (1,500 ) Transfers into Level 3(1) 704 4,092 0 11,849 90,687 0 0 0 Transfers out of Level 3(1) (8,486 ) (416 ) (987 ) 0 (86,470 ) 0 0 0 Other(3) 0 0 0 0 0 0 0 12,001 Fair value, end of period $ 55,003 $ 22,716 $ 0 $ 17,773 $ 173,347 $ 0 $ 0 $ 18,248 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ (357 ) $ 0 $ (1,035 ) $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,162 Year Ended December 31, 2015(4) Equity Securities, Available-for-Sale Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair value, beginning of period $ 750 $ 595 $ 4,897,545 $ 19,203 $ (4,993,611 ) $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 337 1,912 (635,006 ) 0 505,416 0 Asset management fees and other income 0 0 0 0 0 0 Included in other comprehensive income (loss) (245 ) 0 0 (17 ) 0 0 Net investment income 0 0 0 0 0 0 Purchases 0 3,395 677,472 0 0 0 Sales 0 (168 ) 0 0 0 0 Issuances 0 0 0 0 (717,239 ) 0 Settlements (677 ) 0 0 0 0 0 Transfers into Level 3(1) 0 0 0 6,448 0 0 Transfers out of Level 3(1) 0 (30 ) 0 (20,634 ) 0 0 Other 0 0 0 0 0 0 Fair value, end of period $ 165 $ 5,704 $ 4,940,011 $ 5,000 $ (5,205,434 ) $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 1,744 $ (482,828 ) $ 0 $ 381,057 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and other comprehensive income for the year ended December 31, 2014, 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 as of December 31, 2014. Year Ended December 31, 2014(4) Fixed Maturities, Available-for-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities (6) Commercial Mortgage- Backed Securities Trading Account Assets - Asset Backed Securities Trading Account Assets- Equity Securities (in thousands) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 2 $ 798 $ 0 $ 592 $ 142 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,424 Included in other comprehensive income (loss) $ 227 $ 757 $ 0 $ (1,129 ) $ (348 ) $ (2 ) $ 0 $ 0 Net investment income $ (4 ) $ 18 $ 0 $ 58 $ 80 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ (101 ) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,426 Year Ended December 31, 2014(4) Equity Securities, Available-for-Sale Other Long- term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 168 $ 4,683,691 $ 0 $ (4,690,021 ) $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 246 $ 0 $ 0 $ (121 ) $ 0 $ 0 Net investment income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 168 $ 4,672,815 $ 0 $ (4,679,851 ) $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 (1) Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter. (2) 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. (3) Other primarily represents reclassifications of certain assets and liabilities between reporting categories. (4) Prior period amounts have been reclassified to conform to current period presentation, including the adoption of ASU 2015-07. (5) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represents the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture. (6) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
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 Consolidated Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2016(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,181,582 $ 1,181,582 $ 1,150,381 Policy loans 0 0 1,166,456 1,166,456 1,166,456 Cash and cash equivalents 30,149 58,366 0 88,515 88,515 Accrued investment income 0 87,322 0 87,322 87,322 Receivables from parent and affiliates 0 76,315 0 76,315 76,315 Other assets 0 37,969 0 37,969 37,969 Total assets $ 30,149 $ 259,972 $ 2,348,038 $ 2,638,159 $ 2,606,958 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,129,378 $ 253,007 $ 1,382,385 $ 1,386,099 Securities sold under agreements to repurchase 0 68,904 0 68,904 68,904 Cash collateral for loaned securities 0 74,976 0 74,976 74,976 Short-term debt to affiliates 0 0 0 0 0 Long-term debt to affiliates 0 0 0 0 0 Payables to parent and affiliates 0 73,628 0 73,628 73,628 Other liabilities 0 305,969 0 305,969 305,969 Total liabilities $ 0 $ 1,652,855 $ 253,007 $ 1,905,862 $ 1,909,576 December 31, 2015(1) Fair Value Carrying Amount (2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 8,540 $ 1,701,951 $ 1,710,491 $ 1,658,235 Policy loans 0 0 1,143,303 1,143,303 1,143,303 Cash and cash equivalents 19,297 156,064 0 175,361 175,361 Accrued investment income 0 100,031 0 100,031 100,031 Receivables from parent and affiliates 0 65,628 0 65,628 65,628 Other assets 0 6,162 0 6,162 6,162 Total assets $ 19,297 $ 336,425 $ 2,845,254 $ 3,200,976 $ 3,148,720 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 947,853 $ 236,891 $ 1,184,744 $ 1,190,596 Securities sold under agreements to repurchase 0 0 0 0 0 Cash collateral for loaned securities 0 40,416 0 40,416 40,416 Short-term debt to affiliates 0 180,105 0 180,105 180,000 Long-term debt to affiliates 0 1,227,110 0 1,227,110 1,204,000 Payables to parent and affiliates 0 72,791 0 72,791 72,791 Other liabilities 0 343,089 0 343,089 343,089 Total liabilities $ 0 $ 2,811,364 $ 236,891 $ 3,048,255 $ 3,030,892 (1) Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been conformed to the current period presentation. At December 31, 2016 and December 31, 2015 , the fair values of these cost method investments were $35 million and $27 million , respectively, which had been previously classified in Level 3 at December 31, 2015 . The carrying values of these investments were $32 million and $26 million as of December 31, 2016 and December 31, 2015 , respectively. (2) Carrying values presented herein differ from those in the Company’s 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) | 12 Months Ended |
Dec. 31, 2016 | |
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 derivative contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables 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. December 31, 2016 December 31, 2015 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 Currency Swaps $ 435,602 $ 44,040 $ (1,835 ) $ 529,128 $ 50,877 $ (1,385 ) Total Qualifying Hedges $ 435,602 $ 44,040 $ (1,835 ) $ 529,128 $ 50,877 $ (1,385 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 101,076 $ 8,215 $ 0 $ 3,159,400 $ 203,313 $ (8,605 ) Foreign Currency Foreign Currency Forwards 13,447 216 (20 ) 3,722 39 (15 ) Credit Credit Default Swaps 3,000 0 (281 ) 7,275 268 (222 ) Currency/Interest Rate Foreign Currency Swaps 56,626 7,789 (211 ) 122,425 17,079 (71 ) Equity Total Return Swaps 0 0 0 542,294 411 (10,451 ) Equity Options 649,807 30,624 (10,507 ) 25,345,369 28,668 (12,100 ) Total Non-Qualifying Hedges $ 823,956 $ 46,844 $ (11,019 ) $ 29,180,485 $ 249,778 $ (31,464 ) Total Derivatives (1) $ 1,259,558 $ 90,884 $ (12,854 ) $ 29,709,613 $ 300,655 $ (32,849 ) (1) Excludes embedded derivatives and related reinsurance recoverables which contain multiple underlyings. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the 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 Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statement of Financial Position Net Amounts Presented in the Consolidated Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 90,877 $ (13,019 ) $ 77,858 $ (77,858 ) $ 0 Securities purchased under agreements to resell 58,366 0 58,366 (58,366 ) 0 Total Assets $ 149,243 $ (13,019 ) $ 136,224 $ (136,224 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 12,854 $ (12,854 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 68,904 0 68,904 (68,904 ) 0 Total Liabilities $ 81,758 $ (12,854 ) $ 68,904 $ (68,904 ) $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Net Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 297,371 $ (230,554 ) $ 66,817 $ (15,157 ) $ 51,660 Securities purchased under agreements to resell 156,064 0 156,064 (156,064 ) 0 Total Assets $ 453,435 $ (230,554 ) $ 222,881 $ (171,221 ) $ 51,660 Offsetting of Financial Liabilities: Derivatives(1) $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the 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 Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statement of Financial Position Net Amounts Presented in the Consolidated Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 90,877 $ (13,019 ) $ 77,858 $ (77,858 ) $ 0 Securities purchased under agreements to resell 58,366 0 58,366 (58,366 ) 0 Total Assets $ 149,243 $ (13,019 ) $ 136,224 $ (136,224 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 12,854 $ (12,854 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 68,904 0 68,904 (68,904 ) 0 Total Liabilities $ 81,758 $ (12,854 ) $ 68,904 $ (68,904 ) $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Net Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 297,371 $ (230,554 ) $ 66,817 $ (15,157 ) $ 51,660 Securities purchased under agreements to resell 156,064 0 156,064 (156,064 ) 0 Total Assets $ 453,435 $ (230,554 ) $ 222,881 $ (171,221 ) $ 51,660 Offsetting of Financial Liabilities: Derivatives(1) $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 32,849 $ (32,849 ) $ 0 $ 0 $ 0 (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: Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 4,055 $ 1,638 $ (7,340 ) Total qualifying hedges 0 4,055 1,638 (7,340 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 186,419 0 0 0 Currency 1,657 0 0 0 Currency/Interest Rate 8,960 0 (15 ) 0 Credit (535 ) 0 0 0 Equity 350 0 0 0 Embedded Derivatives 467,682 0 0 0 Total non-qualifying hedges 664,533 0 (15 ) 0 Total $ 664,533 $ 4,055 $ 1,623 $ (7,340 ) Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 3,297 $ 1,879 $ 36,686 Total qualifying hedges 0 3,297 1,879 36,686 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 77,158 0 0 0 Currency 211 0 0 0 Currency/Interest Rate 11,533 0 209 0 Credit 90 0 0 0 Equity (35,276 ) 0 0 0 Embedded Derivatives (274,008 ) 0 0 0 Total non-qualifying hedges (220,292 ) 0 209 0 Total $ (220,292 ) $ 3,297 $ 2,088 $ 36,686 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 1,027 $ 908 $ 16,286 Total qualifying hedges 0 1,027 908 16,286 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 350,946 0 0 0 Currency 86 0 0 0 Currency/Interest Rate 14,344 0 126 0 Credit 2 0 0 0 Equity (65,424 ) 0 0 0 Embedded Derivatives (209,398 ) 0 0 0 Total non-qualifying hedges 90,556 0 126 0 Total $ 90,556 $ 1,027 $ 1,034 $ 16,286 (1) Amounts deferred in AOCI. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2013 $ (4,701 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 22,880 Amount reclassified into current period earnings (6,594 ) Balance, December 31, 2014 11,585 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 40,972 Amount reclassified into current period earnings (4,286 ) Balance, December 31, 2015 48,271 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 575 Amount reclassified into current period earnings (7,915 ) Balance, December 31, 2016 $ 40,931 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact On Balance Sheet | Reinsurance amounts included in the Company’s Consolidated Statements of Financial Position as of December 31, were as follows: 2016 2015 (in thousands) Reinsurance recoverables $ 28,674,226 $ 22,691,491 Policy loans (87,112 ) (75,697 ) Deferred policy acquisition costs (6,482,889 ) (2,158,121 ) Deferred sales inducements (615,117 ) 0 Other assets(1) 226,347 35,616 Policyholders’ account balances 4,978,859 5,020,230 Future policy benefits 2,833,327 2,380,215 Other liabilities(2) 410,376 516,525 (1) "Other assets" includes $0.1 million and $0.0 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. (2) "Other liabilities" includes $28 million and $22 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. |
Reinsurance Table By Affiliate | The reinsurance recoverables by counterparty are broken out below: December 31, 2016 December 31, 2015 (in thousands) PAR U $ 10,514,125 $ 9,867,902 PALAC 7,706,860 0 PURC 3,153,449 2,324,163 PARCC 2,589,397 2,563,300 PAR Term 1,403,738 1,226,749 Prudential of Taiwan 1,246,241 1,169,664 Prudential Insurance 976,652 226,926 Term Re 593,084 298,002 UPARC 467,904 376,660 Pruco Re 0 4,594,412 Unaffiliated 22,776 43,713 Total reinsurance recoverables $ 28,674,226 $ 22,691,491 |
Reinsurance Impact On Income Statement | Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Premiums: Direct $ 1,621,531 $ 1,519,992 $ 1,408,833 Assumed(1) 359 0 0 Ceded (2,447,832 ) (1,442,358 ) (1,342,627 ) Net premiums (825,942 ) 77,634 66,206 Policy charges and fee income: Direct 2,804,446 2,933,271 2,754,115 Assumed 533,648 434,560 477,921 Ceded(2) (2,550,899 ) (1,211,444 ) (1,160,997 ) Net policy charges and fee income 787,195 2,156,387 2,071,039 Net investment income: Direct 378,969 419,357 406,620 Assumed 1,411 1,394 1,362 Ceded (4,430 ) (4,164 ) (3,964 ) Net investment income 375,950 416,587 404,018 Asset administration fees: Direct 310,178 362,321 377,127 Assumed 0 0 0 Ceded (225,735 ) 0 0 Net asset administration fees 84,443 362,321 377,127 Other income: Direct 50,475 44,223 49,891 Assumed(3) (161 ) 0 0 Ceded 21 0 0 Amortization of reinsurance income (19,228 ) 11,292 7,936 Net other income 31,107 55,515 57,827 Realized investment gains (losses), net: Direct 1,263,088 571,702 (4,375,107 ) Assumed 0 0 0 Ceded(4) (504,639 ) (780,240 ) 4,489,174 Realized investment gains (losses), net 758,449 (208,538 ) 114,067 Policyholders’ benefits (including change in reserves): Direct 2,456,262 2,064,906 1,863,078 Assumed 596,196 541,371 792,616 Ceded(5) (3,312,658 ) (2,307,127 ) (2,301,997 ) Net policyholders’ benefits (including change in reserves) (260,200 ) 299,150 353,697 Interest credited to policyholders’ account balances: Direct 413,328 477,667 459,982 Assumed 131,953 124,954 117,725 Ceded (244,061 ) (228,410 ) (209,392 ) Net interest credited to policyholders’ account balances 301,220 374,211 368,315 Net reinsurance expense allowances, net of capitalization and amortization(6) (840,010 ) (354,372 ) (390,531 ) (1) "Premiums assumed" includes $0.4 million , $0.0 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) "Policy charges ceded" includes $(4) million of unaffiliated activity for each of the years ended December 31, 2016 , 2015 and 2014 . (3) "Other income assumed" includes $(0.2) million , $0.0 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) "Realized investment gains (losses), net ceded" includes $(30) million , $2 million and $0.0 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (5) "Policyholders' benefits (including change in reserves) ceded" includes $5 million , $(14) million and $3 million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (6) Prior period amounts have been corrected to exclude non-reinsurance expenses. |
Gross And Net Life Insurance In Force | The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2016 2015 2014 (in thousands) Direct gross life insurance face amount in force $ 827,832,976 $ 770,427,543 $ 709,800,479 Assumed gross life insurance face amount in force 42,566,514 43,552,313 44,519,176 Reinsurance ceded (805,796,078 ) (752,647,594 ) (694,659,804 ) Net life insurance face amount in force $ 64,603,412 $ 61,332,262 $ 59,659,851 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the years ended December 31, were 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, 2013 $ 403 $ 56,243 $ 56,646 Change in other comprehensive income before reclassifications (723 ) 207,134 206,411 Amounts reclassified from AOCI 0 (18,649 ) (18,649 ) Income tax benefit (expense) 253 (65,970 ) (65,717 ) Balance, December 31, 2014 $ (67 ) $ 178,758 $ 178,691 Change in other comprehensive income before reclassifications (507 ) (164,799 ) (165,306 ) Amounts reclassified from AOCI 0 (9,902 ) (9,902 ) Income tax benefit (expense) 177 61,145 61,322 Balance, December 31, 2015 $ (397 ) $ 65,202 $ 64,805 Change in other comprehensive income before reclassifications (8 ) 74,040 74,032 Amounts reclassified from AOCI 0 (64,540 ) (64,540 ) Income tax benefit (expense) 3 (3,325 ) (3,322 ) Balance, December 31, 2016 $ (402 ) $ 71,377 $ 70,975 (1) Includes cash flow hedges of $41 million , $48 million , and $12 million as of December 31, 2016 , 2015 and 2014 , respectively. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended Year Ended Year Ended (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/Interest rate(3) $ 7,915 $ 4,286 $ 6,594 Net unrealized investment gains (losses) on available-for-sale securities(4) 56,625 5,616 12,055 Total net unrealized investment gains (losses) 64,540 9,902 18,649 Total reclassifications for the period $ 64,540 $ 9,902 $ 18,649 (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 10 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) AOCI Rollforward | 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, 2013 $ 4,498 $ (3,324 ) $ 1,819 $ (1,079 ) $ 1,914 Net investment gains (losses) on investments arising during the period 996 0 0 (348 ) 648 Reclassification adjustment for (gains) losses included in net income (161 ) 0 0 56 (105 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 786 0 (275 ) 511 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (591 ) 206 (385 ) Balance, December 31, 2014 $ 5,333 $ (2,538 ) $ 1,228 $ (1,440 ) $ 2,583 Net investment gains (losses) on investments arising during the period 107 0 0 (37 ) 70 Reclassification adjustment for (gains) losses included in net income (251 ) 0 0 88 (163 ) Reclassification adjustment for OTTI losses excluded from net income(1) 7 0 0 (2 ) 5 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 1,188 0 (416 ) 772 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (114 ) 40 (74 ) Balance, December 31, 2015 $ 5,196 $ (1,350 ) $ 1,114 $ (1,767 ) $ 3,193 Net investment gains (losses) on investments arising during the period 1,238 0 0 (433 ) 805 Reclassification adjustment for (gains) losses included in net income (1,107 ) 0 0 387 (720 ) Reclassification adjustment for OTTI losses excluded from net income(1) (444 ) 0 0 155 (289 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (209 ) 0 73 (136 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 165 (58 ) 107 Balance, December 31, 2016 $ 4,883 $ (1,559 ) $ 1,279 $ (1,643 ) $ 2,960 (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 (Losses) in 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, 2013 $ 123,153 $ (43,030 ) $ 3,293 $ (29,087 ) $ 54,329 Net investment gains (losses) on investments arising during the period 239,912 0 0 (83,969 ) 155,943 Reclassification adjustment for (gains) losses included in net income (18,488 ) 0 0 6,471 (12,017 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (69,799 ) 0 24,430 (45,369 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 35,829 (12,540 ) 23,289 Balance, December 31, 2014 $ 344,577 $ (112,829 ) $ 39,122 $ (94,695 ) $ 176,175 Net investment gains (losses) on investments arising during the period (223,082 ) 0 0 78,078 (145,004 ) Reclassification adjustment for (gains) losses included in net income (9,651 ) 0 0 3,378 (6,273 ) Reclassification adjustment for OTTI losses excluded from net income(1) (7 ) 0 0 2 (5 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 93,577 0 (32,752 ) 60,825 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (36,475 ) 12,766 (23,709 ) Balance, December 31, 2015 $ 111,837 $ (19,252 ) $ 2,647 $ (33,223 ) $ 62,009 Net investment gains (losses) on investments arising during the period (70,379 ) 0 0 24,633 (45,746 ) Reclassification adjustment for (gains) losses included in net income 65,647 0 0 (22,976 ) 42,671 Reclassification adjustment for OTTI losses excluded from net income(1) 444 0 0 (155 ) 289 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 2,017 0 (706 ) 1,311 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 12,127 (4,244 ) 7,883 Balance, December 31, 2016 $ 107,549 $ (17,235 ) $ 14,774 $ (36,671 ) $ 68,417 (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 10 for information on cash flow hedges. (3) Balances are net of reinsurance. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Other assets” at December 31, were as follows: Maturity Dates Interest Rates 2016 2015 (in thousands) U.S. Dollar floating rate notes 2025 - 2026 1.36% - 1.77 % $ 0 $ 23,013 U.S. Dollar fixed rate notes 2022 - 2028 0.00% - 14.85 % 137,636 139,069 Euro-denominated fixed rate notes 2025 2.30 % 0 543 Total long-term notes receivable - affiliated (1) $ 137,636 $ 162,625 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the years ended December 31, 2016 and 2015 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Prudential Insurance March 2015 Purchase Fixed Maturities & Trading Account Assets $ 91,972 $ 73,849 $ (11,780 ) $ 0 Prudential Insurance June 2015 Purchase Fixed Maturities $ 11,096 $ 10,480 $ (401 ) $ 0 Prudential Insurance March 2016 Sale Fixed Maturities & Short-Term Investments $ 88,783 $ 88,875 $ (60 ) $ 0 |
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 - Amount of Notes - Interest Rate Date of Maturity (in thousands) Prudential Financial 12/15/2011 $ 0 $ 11,000 3.61 % 12/15/2016 Prudential Financial 12/16/2011 0 11,000 3.61 % 12/16/2016 Prudential Financial 11/15/2013 0 9,000 2.24 % 12/15/2018 Prudential Financial 11/15/2013 0 23,000 3.19 % 12/15/2020 Prudential Insurance 12/6/2013 0 120,000 2.60 % 12/15/2018 Prudential Insurance 12/6/2013 0 130,000 4.39 % 12/15/2023 Prudential Insurance 12/6/2013 0 250,000 3.64 % 12/15/2020 Prudential Insurance 9/25/2014 0 30,000 1.89 % 6/20/2017 Prudential Insurance 9/25/2014 0 40,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 0 20,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 0 50,000 3.95 % 6/20/2024 Prudential Insurance 9/25/2014 0 50,000 2.80 % 6/20/2019 Prudential Insurance 9/25/2014 0 100,000 3.47 % 6/20/2021 Prudential Insurance 9/25/2014 0 100,000 3.95 % 6/20/2024 Prudential Financial 12/15/2014 0 5,000 2.57 % 12/15/2019 Prudential Financial 12/15/2014 0 23,000 3.14 % 12/15/2021 Prudential Financial 6/15/2015 0 66,000 3.52 % 6/15/2022 Prudential Financial 6/15/2015 0 6,000 2.86 % 6/15/2020 Prudential Financial 9/21/2015 0 158,000 1.09% - 1.63 % 6/15/2016 - 6/15/2017 Prudential Financial 9/21/2015 0 132,000 1.40% - 1.93 % 12/17/2016 - 12/17/2017 Prudential Financial 9/21/2015 0 26,000 1.40% - 1.93 % 12/17/2016 - 12/17/2017 Prudential Financial 12/16/2015 0 5,000 2.85 % 12/16/2020 Prudential Financial 12/16/2015 0 1,000 2.85 % 12/16/2020 Prudential Financial 12/16/2015 0 18,000 3.37 % 12/16/2022 Total Loans Payable to Affiliates $ 0 $ 1,384,000 |
Quarterly Results of Operatio36
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three months ended March 31 June 30 September 30 December 31 (in thousands) 2016 Total revenues $ 791,393 $ 140,925 $ 231,010 $ 47,874 Total benefits and expenses 1,163,700 (588,114 ) 182,006 132,262 Income (loss) from operations before income taxes (372,307 ) 729,039 49,004 (84,388 ) Net income (loss) $ (328,199 ) $ 723,984 $ 84,897 $ (85,465 ) 2015 Total revenues $ 833,689 $ 601,620 $ 762,424 $ 662,173 Total benefits and expenses 738,702 365,827 920,714 337,301 Income (loss) from operations before income taxes 94,987 235,793 (158,290 ) 324,872 Net income (loss) $ 81,934 $ 214,381 $ (136,506 ) $ 348,194 |
Revision to Prior Year Inform37
Revision to Prior Year Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prior Period Adjustment [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following are selected line items from the consolidated financial statements illustrating the effects of these revisions: Consolidated Statements of Financial Position December 31, 2015 As Previously Reported Revision As Revised (in thousands) ASSETS Deferred policy acquisition costs $ 5,111,373 $ 18,558 $ 5,129,931 Reinsurance recoverables 22,546,361 145,130 22,691,491 TOTAL ASSETS 148,643,945 163,688 148,807,633 LIABILITIES AND EQUITY LIABILITIES Policyholders’ account balances $ 17,164,705 $ 40,119 $ 17,204,824 Future policy benefits 15,031,390 167,365 15,198,755 Income taxes 154,043 (15,404 ) 138,639 TOTAL LIABILITIES 144,133,128 192,080 144,325,208 EQUITY Retained earnings 3,663,539 (28,392 ) 3,635,147 TOTAL EQUITY 4,510,817 (28,392 ) 4,482,425 TOTAL LIABILITIES AND EQUITY 148,643,945 163,688 148,807,633 Consolidated Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 2,159,428 $ (3,041 ) $ 2,156,387 $ 2,074,852 $ (3,813 ) $ 2,071,039 TOTAL REVENUES 2,862,947 (3,041 ) 2,859,906 3,094,097 (3,813 ) 3,090,284 BENEFITS AND EXPENSES Policyholders' benefits 291,185 7,965 299,150 343,714 9,983 353,697 Amortization of deferred policy acquisition costs 662,644 (3,475 ) 659,169 436,169 (4,357 ) 431,812 TOTAL BENEFITS AND EXPENSES 2,358,054 4,490 2,362,544 2,167,921 5,626 2,173,547 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 504,893 (7,531 ) 497,362 926,176 (9,439 ) 916,737 Income tax expense (benefit) (8,005 ) (2,636 ) (10,641 ) 140,373 (3,304 ) 137,069 NET INCOME (LOSS) 512,898 (4,895 ) 508,003 785,803 (6,135 ) 779,668 COMPREHENSIVE INCOME (LOSS) 399,012 (4,895 ) 394,117 907,848 (6,135 ) 901,713 (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 527,407 $ (845 ) $ 526,562 TOTAL REVENUES 792,238 (845 ) 791,393 BENEFITS AND EXPENSES Policyholders' benefits 98,528 2,202 100,730 Amortization of deferred policy acquisition costs 640,552 (966 ) 639,586 TOTAL BENEFITS AND EXPENSES 1,162,464 1,236 1,163,700 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (370,226 ) (2,081 ) (372,307 ) Income tax expense (benefit) (44,095 ) (13 ) (44,108 ) NET INCOME (LOSS) (326,131 ) (2,068 ) (328,199 ) COMPREHENSIVE INCOME (LOSS) (210,804 ) (2,068 ) (212,872 ) (UNAUDITED) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) REVENUES Policy charges and fee income $ 41,848 $ 17,083 $ 58,931 $ 569,255 $ 16,238 $ 585,493 TOTAL REVENUES 123,842 17,083 140,925 916,080 16,238 932,318 BENEFITS AND EXPENSES Policyholders' benefits (430,437 ) (42,173 ) (472,610 ) (331,909 ) (39,971 ) (371,880 ) Amortization of deferred policy acquisition costs (29,866 ) 19,524 (10,342 ) 610,687 18,558 629,245 TOTAL BENEFITS AND EXPENSES (565,465 ) (22,649 ) (588,114 ) 596,999 (21,413 ) 575,586 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 689,307 39,732 729,039 319,081 37,651 356,732 Income tax expense (benefit) (5,499 ) 10,554 5,055 (49,594 ) 10,541 (39,053 ) NET INCOME (LOSS) 694,806 29,178 723,984 368,675 27,110 395,785 COMPREHENSIVE INCOME (LOSS) 755,691 29,178 784,869 544,886 27,110 571,996 Consolidated Statements of Equity Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2013 $ 3,542,838 $ (17,362 ) $ 3,525,476 $ 4,406,221 $ (17,362 ) $ 4,388,859 Comprehensive income (loss): Net income (loss) 785,803 (6,135 ) 779,668 785,803 (6,135 ) 779,668 Total comprehensive income (loss) 907,848 (6,135 ) 901,713 Balance, December 31, 2014 3,580,641 (23,497 ) 3,557,144 4,553,985 (23,497 ) 4,530,488 Comprehensive income (loss): Net income (loss) 512,898 (4,895 ) 508,003 512,898 (4,895 ) 508,003 Total comprehensive income (loss) 399,012 (4,895 ) 394,117 Balance, December 31, 2015 3,663,539 (28,392 ) 3,635,147 4,510,817 (28,392 ) 4,482,425 (UNAUDITED) Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2015 $ 3,663,539 $ (28,392 ) $ 3,635,147 $ 4,510,817 $ (28,392 ) $ 4,482,425 Comprehensive income (loss): Net income (loss) (326,131 ) (2,068 ) (328,199 ) (326,131 ) (2,068 ) (328,199 ) Total comprehensive income (loss) (210,804 ) (2,068 ) (212,872 ) Balance, March 31, 2016 3,337,408 (30,460 ) 3,306,948 4,304,953 (30,460 ) 4,274,493 (UNAUDITED) Retained Earnings Total Equity As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) Balance, December 31, 2015 $ 3,663,539 $ (28,392 ) $ 3,635,147 $ 4,510,817 $ (28,392 ) $ 4,482,425 Comprehensive income (loss): Net income (loss) 368,675 27,110 395,785 368,675 27,110 395,785 Total comprehensive income (loss) 544,886 27,110 571,996 Balance, June 30, 2016 1,438,695 (1,282 ) 1,437,413 2,668,274 (1,282 ) 2,666,992 Consolidated Statements of Cash Flows Year Ended December 31, 2015 Year Ended December 31, 2014 As Previously Reported Revision As Revised As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 512,898 $ (4,895 ) $ 508,003 $ 785,803 $ (6,135 ) $ 779,668 Policy charges and fee income (11,811 ) 3,041 (8,770 ) (76,188 ) 3,813 (72,375 ) Future policy benefits 1,503,445 30,783 1,534,228 1,402,458 38,084 1,440,542 Reinsurance recoverables (1,536,347 ) (22,818 ) (1,559,165 ) (1,302,695 ) (28,101 ) (1,330,796 ) Deferred policy acquisition costs 46,643 (3,475 ) 43,168 (190,550 ) (4,357 ) (194,907 ) Income taxes (34,243 ) (2,636 ) (36,879 ) 69,204 (3,304 ) 65,900 Cash flows from (used in) operating activities 1,142,929 0 1,142,929 1,077,692 0 1,077,692 (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (326,131 ) $ (2,068 ) $ (328,199 ) Policy charges and fee income (5,850 ) 845 (5,005 ) Future policy benefits 416,396 8,508 424,904 Reinsurance recoverables (353,572 ) (6,306 ) (359,878 ) Deferred policy acquisition costs 489,279 (966 ) 488,313 Income taxes (125,565 ) (13 ) (125,578 ) Cash flows from (used in) operating activities 333,424 0 333,424 (UNAUDITED) Six Months Ended June 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 368,675 $ 27,110 $ 395,785 Policy charges and fee income 78,763 (16,238 ) 62,525 Future policy benefits 659,730 (154,908 ) 504,822 Reinsurance recoverables (326,993 ) 1,434 (325,559 ) Deferred policy acquisition costs 408,155 18,558 426,713 Income taxes (78,531 ) 10,541 (67,990 ) Other, net (181,862 ) (78,333 ) (260,195 ) Cash flows from (used in) operating activities 5,386 (191,836 ) (186,450 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale 798,298 40,000 838,298 Cash flows from (used in) investing activities (537,625 ) 40,000 (497,625 ) CASH FLOWS FROM FINANCING ACTIVITIES: Ceded policyholders’ account deposits (584,464 ) (539,144 ) (1,123,608 ) Ceded policyholders’ account withdrawals 32,053 490,659 522,712 Contributed capital 205,000 200,321 405,321 Cash flows from (used in) financing activities 488,765 151,836 640,601 (UNAUDITED) Nine Months Ended September 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ 103,829 $ (16,238 ) $ 87,591 Reinsurance recoverables (1,369,986 ) 61,840 (1,308,146 ) Other, net 19,979 (211,545 ) (191,566 ) Cash flows from (used in) operating activities (43,926 ) (165,943 ) (209,869 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale 930,834 40,000 970,834 Cash flows from (used in) investing activities (795,911 ) 40,000 (755,911 ) CASH FLOWS FROM FINANCING ACTIVITIES: Policyholders' account deposits 3,085,729 40,119 3,125,848 Ceded policyholders’ account deposits (877,874 ) (810,163 ) (1,688,037 ) Ceded policyholders’ account withdrawals 49,958 695,666 745,624 Contributed capital 205,000 200,321 405,321 Cash flows from (used in) financing activities 548,328 125,943 674,271 |
Business and Basis of Present38
Business and Basis of Presentation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)subsidiary | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Effects of Reinsurance [Line Items] | |||||||||||||||
Number of subsidiaries | subsidiary | 2 | ||||||||||||||
Assets: | |||||||||||||||
Total investments | $ 8,367,590 | $ 10,193,098 | $ 8,367,590 | $ 10,193,098 | |||||||||||
Cash and Cash Equivalents | 96,157 | 370,286 | 96,157 | 370,286 | $ 214,952 | $ 307,243 | |||||||||
Deferred policy acquisition costs | 1,341,093 | 5,129,931 | 1,341,093 | 5,129,931 | 5,081,938 | 5,045,025 | |||||||||
Reinsurance recoverables | 28,674,226 | 22,691,491 | 28,674,226 | 22,691,491 | |||||||||||
Deferred sales inducements | 0 | 684,844 | 0 | 684,844 | 836,791 | $ 989,889 | |||||||||
Other Assets | 279,222 | 59,578 | 279,222 | 59,578 | |||||||||||
TOTAL ASSETS | 155,665,990 | 148,807,633 | 155,665,990 | 148,807,633 | |||||||||||
Increase (Decrease) in Cash and Cash Equivalents | (274,129) | 155,334 | (92,291) | ||||||||||||
Increase (Decrease) in Deferred Policy Acquisition Costs | $ (488,313) | $ (426,713) | (311,273) | (43,168) | 194,907 | ||||||||||
Increase (Decrease) in Reinsurance Recoverables | 359,878 | 325,559 | $ 1,308,146 | 1,764,242 | 1,559,165 | 1,330,796 | |||||||||
Liabilities: | |||||||||||||||
Income Taxes | 97,400 | 138,639 | 97,400 | 138,639 | |||||||||||
Other Liabilities | 849,698 | 935,662 | 849,698 | 935,662 | |||||||||||
TOTAL LIABILITIES | 153,169,187 | 144,325,208 | 153,169,187 | 144,325,208 | |||||||||||
Income taxes | (125,578) | (67,990) | (45,147) | (36,879) | 65,900 | ||||||||||
EQUITY | |||||||||||||||
Retained earnings | 1,437,266 | 3,635,147 | 1,437,266 | 3,635,147 | |||||||||||
Accumulated other comprehensive income | 70,975 | 64,805 | 70,975 | 64,805 | |||||||||||
TOTAL EQUITY | 2,496,803 | 4,482,425 | 2,496,803 | 4,482,425 | |||||||||||
TOTAL LIABILITIES AND EQUITY | 155,665,990 | 148,807,633 | 155,665,990 | 148,807,633 | |||||||||||
REVENUES | |||||||||||||||
Premiums | (825,942) | 77,634 | 66,206 | ||||||||||||
Total realized investment gains(losses), net | 758,449 | (208,538) | 114,067 | ||||||||||||
Total revenues | 47,874 | $ 231,010 | $ 140,925 | 791,393 | 662,173 | $ 762,424 | $ 601,620 | $ 833,689 | 932,318 | 1,211,202 | 2,859,906 | 3,090,284 | |||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders' Benefits | 472,610 | (100,730) | 371,880 | 260,200 | (299,150) | (353,697) | |||||||||
TOTAL BENEFITS AND EXPENSES | (132,262) | (182,006) | 588,114 | (1,163,700) | (337,301) | (920,714) | (365,827) | (738,702) | (575,586) | (889,854) | (2,362,544) | (2,173,547) | |||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (84,388) | 49,004 | 729,039 | (372,307) | 324,872 | (158,290) | 235,793 | 94,987 | 356,732 | 321,348 | 497,362 | 916,737 | |||
Income tax expense (benefit) | (5,055) | 44,108 | 39,053 | 73,869 | 10,641 | (137,069) | |||||||||
Net income (loss) | (85,465) | $ 84,897 | 723,984 | (328,199) | 348,194 | $ (136,506) | $ 214,381 | $ 81,934 | 395,785 | 395,217 | 508,003 | $ 779,668 | |||
Scenario, Adjustment | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
TOTAL BENEFITS AND EXPENSES | (32,000) | ||||||||||||||
Reinsurance | |||||||||||||||
Assets: | |||||||||||||||
Deferred policy acquisition costs | 6,482,889 | 2,158,121 | 6,482,889 | 2,158,121 | |||||||||||
Deferred sales inducements | 615,117 | 0 | 615,117 | 0 | |||||||||||
Other Assets | 226,347 | 35,616 | 226,347 | 35,616 | |||||||||||
Liabilities: | |||||||||||||||
Other Liabilities | $ 410,376 | $ 516,525 | 410,376 | $ 516,525 | |||||||||||
Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
Assets: | |||||||||||||||
Total investments | $ 7,149,000 | 10,702,000 | |||||||||||||
Cash and Cash Equivalents | 508,000 | 496,000 | |||||||||||||
Deferred policy acquisition costs | 1,116,000 | 4,565,000 | |||||||||||||
Reinsurance recoverables | 28,736,000 | 24,781,000 | |||||||||||||
Deferred sales inducements | 0 | 550,000 | |||||||||||||
Other Assets | 305,000 | 94,000 | |||||||||||||
Income Taxes | 23,000 | 0 | |||||||||||||
TOTAL ASSETS | 148,508,000 | 151,859,000 | |||||||||||||
Liabilities: | |||||||||||||||
Income Taxes | 108,000 | 91,000 | |||||||||||||
Debt | 1,000 | 1,385,000 | |||||||||||||
Other Liabilities | 870,000 | 870,000 | |||||||||||||
TOTAL LIABILITIES | 146,187,000 | 147,554,000 | |||||||||||||
EQUITY | |||||||||||||||
Retained earnings | 1,432,000 | 3,337,000 | |||||||||||||
Accumulated other comprehensive income | 101,000 | 180,000 | |||||||||||||
TOTAL EQUITY | 2,321,000 | 4,305,000 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | 148,508,000 | $ 151,859,000 | |||||||||||||
REVENUES | |||||||||||||||
Premiums | (880,000) | ||||||||||||||
Total realized investment gains(losses), net | 805,000 | ||||||||||||||
Total revenues | (75,000) | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders' Benefits | (547,000) | ||||||||||||||
General, administrative and other expenses | (211,000) | ||||||||||||||
TOTAL BENEFITS AND EXPENSES | (758,000) | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 683,000 | ||||||||||||||
Income tax expense (benefit) | (6,000) | ||||||||||||||
Net income (loss) | 689,000 | ||||||||||||||
Variable Annuity | Recapture | |||||||||||||||
Assets: | |||||||||||||||
Increase (Decrease) in Total Investments | 4,166,000 | ||||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 0 | ||||||||||||||
Increase (Decrease) in Deferred Policy Acquisition Costs | 0 | ||||||||||||||
Increase (Decrease) in Reinsurance Recoverables | (6,312,000) | (6,300,000) | |||||||||||||
Increase (decrease) in Deferred sales inducements | 0 | ||||||||||||||
Increase (Decrease) in Other Assets | 0 | ||||||||||||||
Increase (Decrease) in Income Taxes | 0 | ||||||||||||||
Increase (Decrease) in TOTAL ASSETS | (2,146,000) | ||||||||||||||
Liabilities: | |||||||||||||||
Income taxes | 17,000 | ||||||||||||||
Increase (Decrease) in Debt | 0 | ||||||||||||||
Increase (Decrease) in Other Liabilities | 0 | ||||||||||||||
Increase (Decrease) in TOTAL LIABILITIES | 17,000 | ||||||||||||||
EQUITY | |||||||||||||||
Increase (Decrease) In Retained Earnings | (2,163,000) | ||||||||||||||
Increase (Decrease) In Accumulated Other Comprehensive Income | 0 | ||||||||||||||
Increase (Decrease) in TOTAL EQUITY | (2,163,000) | ||||||||||||||
Increase (Decrease) In TOTAL LIABILITIES AND EQUITY | (2,146,000) | ||||||||||||||
REVENUES | |||||||||||||||
Premiums | 0 | ||||||||||||||
Total realized investment gains(losses), net | (2,146,000) | ||||||||||||||
Total revenues | (2,146,000) | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders' Benefits | 0 | ||||||||||||||
General, administrative and other expenses | 0 | ||||||||||||||
TOTAL BENEFITS AND EXPENSES | 0 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,146,000) | ||||||||||||||
Income tax expense (benefit) | 17,000 | ||||||||||||||
Net income (loss) | (2,163,000) | ||||||||||||||
Variable Annuity | Reinsurance | |||||||||||||||
Assets: | |||||||||||||||
Increase (Decrease) in Total Investments | (7,719,000) | ||||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 12,000 | ||||||||||||||
Increase (Decrease) in Deferred Policy Acquisition Costs | (3,449,000) | ||||||||||||||
Increase (Decrease) in Reinsurance Recoverables | 10,267,000 | 10,300,000 | |||||||||||||
Increase (decrease) in Deferred sales inducements | (550,000) | ||||||||||||||
Increase (Decrease) in Other Assets | 211,000 | ||||||||||||||
Increase (Decrease) in Income Taxes | 23,000 | ||||||||||||||
Increase (Decrease) in TOTAL ASSETS | (1,205,000) | ||||||||||||||
Liabilities: | |||||||||||||||
Income taxes | 0 | ||||||||||||||
Increase (Decrease) in Debt | (1,384,000) | ||||||||||||||
Increase (Decrease) in Other Liabilities | 0 | ||||||||||||||
Increase (Decrease) in TOTAL LIABILITIES | (1,384,000) | ||||||||||||||
EQUITY | |||||||||||||||
Increase (Decrease) In Retained Earnings | 258,000 | ||||||||||||||
Increase (Decrease) In Accumulated Other Comprehensive Income | (79,000) | ||||||||||||||
Increase (Decrease) in TOTAL EQUITY | 179,000 | ||||||||||||||
Increase (Decrease) In TOTAL LIABILITIES AND EQUITY | (1,205,000) | ||||||||||||||
REVENUES | |||||||||||||||
Premiums | (880,000) | ||||||||||||||
Total realized investment gains(losses), net | 2,951,000 | ||||||||||||||
Total revenues | 2,071,000 | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders' Benefits | (547,000) | ||||||||||||||
General, administrative and other expenses | (211,000) | ||||||||||||||
TOTAL BENEFITS AND EXPENSES | (758,000) | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 2,829,000 | ||||||||||||||
Income tax expense (benefit) | (23,000) | ||||||||||||||
Net income (loss) | $ 2,852,000 | ||||||||||||||
PALAC | Variable Annuity | Recapture | |||||||||||||||
EQUITY | |||||||||||||||
Fees and Commissions | 3,600,000 | ||||||||||||||
Repayments of Debt | 1,100,000 | ||||||||||||||
PALAC | Variable Annuity | Reinsurance | |||||||||||||||
Assets: | |||||||||||||||
Increase (Decrease) in Total Investments | (7,700,000) | ||||||||||||||
Prudential Insurance | Variable Annuity | Recapture | |||||||||||||||
EQUITY | |||||||||||||||
Fees and Commissions | 400,000 | ||||||||||||||
Repayments of Debt | 100,000 | ||||||||||||||
Pruco Re | Variable Annuity | Recapture | |||||||||||||||
Assets: | |||||||||||||||
Increase (Decrease) in Total Investments | 4,200,000 | ||||||||||||||
Prudential Financial | |||||||||||||||
EQUITY | |||||||||||||||
Payments of Dividends | 2,600,000 | ||||||||||||||
Prudential Financial | Variable Annuity | Reinsurance | |||||||||||||||
EQUITY | |||||||||||||||
Payments of Dividends | 2,800,000 | ||||||||||||||
Pruco Re Purchase | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | 4,166,000 | 4,166,000 | |||||||||||||
Book Value | 4,200,000 | 4,166,000 | 4,166,000 | ||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 | 0 | |||||||||||||
Realized Investment Gain/Loss, Net | 0 | ||||||||||||||
PALAC Sale | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | (6,994,000) | (6,994,000) | |||||||||||||
Book Value | (6,872,000) | (6,872,000) | |||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 | 0 | |||||||||||||
Realized Investment Gain/Loss, Net | 122,000 | ||||||||||||||
PALAC Sale | PALAC | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
EQUITY | |||||||||||||||
Fees and Commissions | 3,600,000 | ||||||||||||||
Repayments of Debt | 1,100,000 | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Book Value | (7,000,000) | ||||||||||||||
Prudential Insurance Dividend | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | (19,000) | (19,000) | |||||||||||||
Book Value | (19,000) | (19,000) | |||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | (19,000) | (19,000) | |||||||||||||
Realized Investment Gain/Loss, Net | 0 | ||||||||||||||
Prudential Insurance Sale | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | (717,000) | (717,000) | |||||||||||||
Book Value | (703,000) | (703,000) | |||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 15,000 | $ 15,000 | |||||||||||||
Realized Investment Gain/Loss, Net | 0 | ||||||||||||||
Prudential Insurance Sale | Prudential Insurance | Variable Annuity | Items Effected By Recapture And Reinsurance Transactions | |||||||||||||||
EQUITY | |||||||||||||||
Fees and Commissions | 400,000 | ||||||||||||||
Repayments of Debt | $ 100,000 | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Book Value | $ (700,000) | ||||||||||||||
PLNJ | |||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||
Number of subsidiaries | subsidiary | 1 | ||||||||||||||
Indirect subsidiary | |||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||
Number of subsidiaries | subsidiary | 1 |
Significant Accounting Polici39
Significant Accounting Policies and Pronouncements (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Loan-to-value ratios (greater than) | 100.00% |
Loan-to-value ratios (less than) | 100.00% |
Debt service coverage ratios (less than) | 1 |
Debt service coverage ratios (greater than) | 1 |
Partnership interest (less than) | 3.00% |
Significant Accounting Policies [Line Items] | |
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102.00% |
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105.00% |
Uncertain tax positions measurement percentage | 50.00% |
Minimum | |
Significant Accounting Policies [Line Items] | |
Investee Financial Information, Lag Period | 1 month |
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Investee Financial Information, Lag Period | 3 months |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | $ 5,552,911 | $ 6,775,806 |
Total fixed maturities, available-for-sale | 5,617,549 | 6,840,932 |
Equity securities, available-for-sale, cost | 16,390 | 54,609 |
Equity securities, available-for-sale, at fair value | 16,756 | 51,973 |
Fixed maturities, available-for-sale: | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 5,552,911 | 6,775,806 |
Gross Unrealized Gains | 167,114 | 217,935 |
Gross Unrealized Losses | 102,476 | 152,809 |
Total fixed maturities, available-for-sale | 5,617,549 | 6,840,932 |
OTTI in AOCI | (3,259) | (3,963) |
Fixed maturities, available-for-sale: | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 154,180 | 87,107 |
Gross Unrealized Gains | 6,593 | 7,170 |
Gross Unrealized Losses | 33 | 228 |
Total fixed maturities, available-for-sale | 160,740 | 94,049 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Obligations of U.S. states and their political subdivisions | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 618,447 | 602,508 |
Gross Unrealized Gains | 14,592 | 24,219 |
Gross Unrealized Losses | 6,553 | 1,958 |
Total fixed maturities, available-for-sale | 626,486 | 624,769 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Foreign government bonds | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 111,025 | 70,107 |
Gross Unrealized Gains | 2,143 | 3,094 |
Gross Unrealized Losses | 4,386 | 2,791 |
Total fixed maturities, available-for-sale | 108,782 | 70,410 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Public utilities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 706,536 | 790,038 |
Gross Unrealized Gains | 33,950 | 30,862 |
Gross Unrealized Losses | 10,519 | 18,402 |
Total fixed maturities, available-for-sale | 729,967 | 802,498 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Redeemable preferred stock | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 4,136 | 5,316 |
Gross Unrealized Gains | 834 | 1,530 |
Gross Unrealized Losses | 156 | 145 |
Total fixed maturities, available-for-sale | 4,814 | 6,701 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | All other U.S. public corporate securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 1,802,350 | 2,138,358 |
Gross Unrealized Gains | 67,908 | 81,905 |
Gross Unrealized Losses | 28,846 | 61,142 |
Total fixed maturities, available-for-sale | 1,841,412 | 2,159,121 |
OTTI in AOCI | (215) | (217) |
Fixed maturities, available-for-sale: | All other U.S. private corporate securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 714,776 | 1,085,345 |
Gross Unrealized Gains | 14,555 | 26,299 |
Gross Unrealized Losses | 7,702 | 13,963 |
Total fixed maturities, available-for-sale | 721,629 | 1,097,681 |
OTTI in AOCI | (236) | 0 |
Fixed maturities, available-for-sale: | All other foreign public corporate securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 216,428 | 270,063 |
Gross Unrealized Gains | 7,371 | 8,230 |
Gross Unrealized Losses | 4,127 | 6,508 |
Total fixed maturities, available-for-sale | 219,672 | 271,785 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | All other foreign private corporate securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 577,761 | 784,283 |
Gross Unrealized Gains | 4,866 | 9,933 |
Gross Unrealized Losses | 33,455 | 42,528 |
Total fixed maturities, available-for-sale | 549,172 | 751,688 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Asset-backed securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 184,414 | 431,578 |
Gross Unrealized Gains | 5,164 | 6,203 |
Gross Unrealized Losses | 562 | 2,650 |
Total fixed maturities, available-for-sale | 189,016 | 435,131 |
OTTI in AOCI | (2,534) | (3,056) |
Fixed maturities, available-for-sale: | Commercial mortgage-backed securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 382,717 | 396,160 |
Gross Unrealized Gains | 5,783 | 10,614 |
Gross Unrealized Losses | 5,829 | 2,429 |
Total fixed maturities, available-for-sale | 382,671 | 404,345 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale: | Residential mortgage-backed securities | ||
Summary of Investments [Line Items] | ||
Total fixed maturities, available-for-sale | 80,141 | 114,943 |
Gross Unrealized Gains | 3,355 | 7,876 |
Gross Unrealized Losses | 308 | 65 |
Total fixed maturities, available-for-sale | 83,188 | 122,754 |
OTTI in AOCI | (274) | (690) |
Equity securities, available-for-sale | ||
Summary of Investments [Line Items] | ||
Equity securities, available-for-sale, cost | 16,390 | 54,609 |
Gross Unrealized Gains | 518 | 423 |
Gross Unrealized Losses | 152 | 3,059 |
Equity securities, available-for-sale, at fair value | 16,756 | 51,973 |
Equity securities, available-for-sale | Mutual funds | ||
Summary of Investments [Line Items] | ||
Equity securities, available-for-sale, cost | 16,324 | 54,543 |
Gross Unrealized Gains | 441 | 256 |
Gross Unrealized Losses | 124 | 3,030 |
Equity securities, available-for-sale, at fair value | 16,641 | 51,769 |
Equity securities, available-for-sale | Public Utility, Equities | ||
Summary of Investments [Line Items] | ||
Equity securities, available-for-sale, cost | 66 | 66 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 28 | 29 |
Equity securities, available-for-sale, at fair value | 40 | 39 |
Equity securities, available-for-sale | Industrial, miscellaneous & other | ||
Summary of Investments [Line Items] | ||
Equity securities, available-for-sale, cost | 0 | 0 |
Gross Unrealized Gains | 75 | 165 |
Gross Unrealized Losses | 0 | 0 |
Equity securities, available-for-sale, at fair value | $ 75 | $ 165 |
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 | Dec. 31, 2016 | Dec. 31, 2015 |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | $ 1,917,630 | $ 2,380,194 |
Less than 12 months Gross Unrealized Losses | 68,678 | 102,402 |
Twelve months or more Fair Value | 284,359 | 366,405 |
Twelve months or more Gross Unrealized Losses | 33,798 | 50,407 |
Total Fair Value | 2,201,989 | 2,746,599 |
Total Gross Unrealized Losses | 102,476 | 152,809 |
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 | 603 | 5,985 |
Less than 12 months Gross Unrealized Losses | 33 | 228 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 603 | 5,985 |
Total Gross Unrealized Losses | 33 | 228 |
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 | 239,146 | 77,756 |
Less than 12 months Gross Unrealized Losses | 6,553 | 1,958 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 239,146 | 77,756 |
Total Gross Unrealized Losses | 6,553 | 1,958 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 81,074 | 44,854 |
Less than 12 months Gross Unrealized Losses | 4,055 | 1,940 |
Twelve months or more Fair Value | 1,690 | 1,813 |
Twelve months or more Gross Unrealized Losses | 331 | 851 |
Total Fair Value | 82,764 | 46,667 |
Total Gross Unrealized Losses | 4,386 | 2,791 |
Public utilities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 207,226 | 323,086 |
Less than 12 months Gross Unrealized Losses | 7,847 | 13,151 |
Twelve months or more Fair Value | 21,394 | 26,094 |
Twelve months or more Gross Unrealized Losses | 2,672 | 5,251 |
Total Fair Value | 228,620 | 349,180 |
Total Gross Unrealized Losses | 10,519 | 18,402 |
Redeemable preferred stock | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 0 | 0 |
Less than 12 months Gross Unrealized Losses | 0 | 145 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 156 | 0 |
Total Fair Value | 0 | 0 |
Total Gross Unrealized Losses | 156 | 145 |
All other U.S. public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 568,763 | 802,158 |
Less than 12 months Gross Unrealized Losses | 20,695 | 49,343 |
Twelve months or more Fair Value | 73,575 | 61,110 |
Twelve months or more Gross Unrealized Losses | 8,151 | 11,799 |
Total Fair Value | 642,338 | 863,268 |
Total Gross Unrealized Losses | 28,846 | 61,142 |
All other U.S. private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 232,561 | 323,218 |
Less than 12 months Gross Unrealized Losses | 6,082 | 12,476 |
Twelve months or more Fair Value | 29,071 | 17,103 |
Twelve months or more Gross Unrealized Losses | 1,620 | 1,487 |
Total Fair Value | 261,632 | 340,321 |
Total Gross Unrealized Losses | 7,702 | 13,963 |
All other foreign public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 86,492 | 121,662 |
Less than 12 months Gross Unrealized Losses | 3,188 | 5,098 |
Twelve months or more Fair Value | 5,433 | 6,079 |
Twelve months or more Gross Unrealized Losses | 939 | 1,410 |
Total Fair Value | 91,925 | 127,741 |
Total Gross Unrealized Losses | 4,127 | 6,508 |
All other foreign private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 236,512 | 284,191 |
Less than 12 months Gross Unrealized Losses | 13,604 | 14,089 |
Twelve months or more Fair Value | 101,858 | 154,791 |
Twelve months or more Gross Unrealized Losses | 19,851 | 28,439 |
Total Fair Value | 338,370 | 438,982 |
Total Gross Unrealized Losses | 33,455 | 42,528 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 37,355 | 249,084 |
Less than 12 months Gross Unrealized Losses | 492 | 1,565 |
Twelve months or more Fair Value | 49,346 | 93,675 |
Twelve months or more Gross Unrealized Losses | 70 | 1,085 |
Total Fair Value | 86,701 | 342,759 |
Total Gross Unrealized Losses | 562 | 2,650 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 191,674 | 129,765 |
Less than 12 months Gross Unrealized Losses | 5,827 | 2,350 |
Twelve months or more Fair Value | 947 | 4,221 |
Twelve months or more Gross Unrealized Losses | 2 | 79 |
Total Fair Value | 192,621 | 133,986 |
Total Gross Unrealized Losses | 5,829 | 2,429 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 36,224 | 18,435 |
Less than 12 months Gross Unrealized Losses | 302 | 59 |
Twelve months or more Fair Value | 1,045 | 1,519 |
Twelve months or more Gross Unrealized Losses | 6 | 6 |
Total Fair Value | 37,269 | 19,954 |
Total Gross Unrealized Losses | 308 | 65 |
Equity securities, available-for-sale: | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 0 | 35,869 |
Less than 12 months Gross Unrealized Losses | 0 | 2,339 |
Twelve months or more Fair Value | 2,965 | 9,281 |
Twelve months or more Gross Unrealized Losses | 152 | 720 |
Total Fair Value | 2,965 | 45,150 |
Total Gross Unrealized Losses | $ 152 | $ 3,059 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 222,580 | |
Due after one year through five years | 695,311 | |
Due after five years through ten years | 950,127 | |
Due after ten years | 3,037,621 | |
Total fixed maturities, available-for-sale | 5,552,911 | $ 6,775,806 |
Available for Sale, Fair Value | ||
Due in one year or less | 220,785 | |
Due after one year through five years | 713,491 | |
Due after five years through ten years | 941,499 | |
Due after ten years | 3,086,899 | |
Total fixed maturities, available-for-sale | 5,617,549 | $ 6,840,932 |
Asset-backed securities | ||
Available for Sale, Amortized Cost | ||
Debt Maturities, without single maturity date | 184,414 | |
Available for Sale, Fair Value | ||
Debt Maturities, without Single Maturity Date | 189,016 | |
Commercial mortgage-backed securities | ||
Available for Sale, Amortized Cost | ||
Debt Maturities, without single maturity date | 382,717 | |
Available for Sale, Fair Value | ||
Debt Maturities, without Single Maturity Date | 382,671 | |
Residential mortgage-backed securities | ||
Available for Sale, Amortized Cost | ||
Debt Maturities, without single maturity date | 80,141 | |
Available for Sale, Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 83,188 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Security Proceeds)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Available For Sale | |||
Proceeds from sales(2) | $ 34,618 | $ 5,760 | $ 17,854 |
Fixed maturities, available-for-sale: | |||
Available For Sale | |||
Proceeds from sales(1) | 833,562 | 171,589 | 245,618 |
Proceeds from maturities/repayments(1) | 495,969 | 642,503 | 656,249 |
Gross investment gains from sales, prepayments and maturities | 94,262 | 12,496 | 20,394 |
Gross investment losses from sales and maturities | (10,475) | (1,528) | (2,704) |
Fixed maturity and equity security impairments: | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | (17,677) | (1,463) | (127) |
Equity securities, available-for-sale: | |||
Available For Sale | |||
Gross investment gains from sales, prepayments and maturities | 363 | 400 | 1,085 |
Gross investment losses from sales and maturities | (1,933) | 0 | 0 |
Proceeds from sales(2) | 34,618 | 5,732 | 17,873 |
Fixed maturity and equity security impairments: | |||
Writedowns for impairments on equity securities | $ 0 | $ (3) | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 5,520 | $ 7,041 | $ 8,729 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (1,294) | (1,719) | |
Credit loss impairments recognized in the current period on securities not previously impaired | 522 | 0 | |
Additional credit loss impairments recognized in the current period on securities previously impaired | 6 | 71 | |
Increases due to the passage of time on previously recorded credit losses | 242 | 213 | |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (339) | (253) | |
Assets transferred to parent and affiliates | $ (658) | $ 0 |
Investments (Trading Account As
Investments (Trading Account Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | $ 35,484 | $ 65,326 |
Fair Value | 35,328 | 64,612 |
Fixed maturities, available-for-sale | ||
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | 23,555 | 50,565 |
Fair Value | 19,558 | 46,364 |
Equity securities, available-for-sale: | ||
Major Types of Investment Securities [Line Items] | ||
Amortized Cost | 11,929 | 14,761 |
Fair Value | $ 15,770 | $ 18,248 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ 600,000 | $ (3,400,000) | $ (700,000) |
Equity Method Investments | 0 | ||
Commercial mortgage loans, transferred to affiliates | 631,000,000 | ||
Accumulated Other Comprehensive Income Loss Unrealized Gains And Losses On Other Than Temporarily Impaired Securities Net Of Tax | 8,000,000 | 9,000,000 | |
Non Income Producing Assets, Fixed Maturities | 600,000 | ||
Gross unrealized losses related to high or highest quality securities | 93,300,000 | 133,600,000 | |
Gross unrealized losses related to other than high or highest quality securities | 9,200,000 | 19,200,000 | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 74,800,000 | 40,300,000 | |
Securities Sold under Agreements to Repurchase | 68,904,000 | 0 | |
Securities Continuous Unrealized Loss Position Declines In Value Of Greater Than 20 Percent Aggregate Losses | 0 | 0 | |
Securities Sold under Agreements to Repurchase | |||
Investment [Line Items] | |||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 58,400,000 | 156,000,000 | |
Maturity Overnight | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 38,000,000 | ||
Maturity Less than 30 Days | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 2,300,000 | ||
Corporate securities | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 68,000,000 | 33,300,000 | |
Foreign government bonds | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 6,800,000 | 7,000,000 | |
California | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 23.00% | ||
Texas | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 15.00% | ||
Illinois | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 7.00% | ||
Fixed maturities, available-for-sale | |||
Investment [Line Items] | |||
Assets Deposited With Governmental Authorities | $ 3,200,000 | 3,900,000 | |
Short-term investments and cash equivalents | |||
Investment [Line Items] | |||
Assets Deposited With Governmental Authorities | 600,000 | ||
Fixed maturities, available-for-sale: | |||
Investment [Line Items] | |||
Other Noncash Income (Expense) | (1,500,000) | 400,000 | (5,800,000) |
Equity securities, available-for-sale: | |||
Investment [Line Items] | |||
Other Noncash Income (Expense) | $ 0 | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,151,939 | $ 1,652,476 |
Commercial mortgage and agricultural property loans, Percentage | 100.00% | 100.00% |
Valuation allowance | $ (1,558) | $ (2,651) |
Total net commercial mortgage and agricultural property loans by property type | 1,150,381 | 1,649,825 |
Valuation allowance | 0 | 0 |
Total net other loans | 0 | 8,410 |
Total commercial mortgage and other loans | 1,150,381 | 1,658,235 |
Retail Site [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 243,225 | $ 440,767 |
Commercial mortgage and agricultural property loans, Percentage | 21.10% | 26.70% |
Apartments/Multi-Family | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 318,667 | $ 445,379 |
Commercial mortgage and agricultural property loans, Percentage | 27.70% | 27.00% |
Industrial | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 185,682 | $ 254,884 |
Commercial mortgage and agricultural property loans, Percentage | 16.10% | 15.40% |
Office | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 161,980 | $ 226,332 |
Commercial mortgage and agricultural property loans, Percentage | 14.10% | 13.60% |
Other | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 124,465 | $ 92,581 |
Commercial mortgage and agricultural property loans, Percentage | 10.80% | 5.60% |
Hospitality | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 54,597 | $ 85,910 |
Commercial mortgage and agricultural property loans, Percentage | 4.70% | 5.20% |
Commercial mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,088,616 | $ 1,545,853 |
Commercial mortgage and agricultural property loans, Percentage | 94.50% | 93.50% |
Agricultural property loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 63,323 | $ 106,623 |
Commercial mortgage and agricultural property loans, Percentage | 5.50% | 6.50% |
Uncollateralized loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Uncollateralized Loans | $ 0 | $ 8,410 |
Investments (Allowance for Loss
Investments (Allowance for Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | $ 2,651 | $ 4,154 |
Addition to (release of) allowance for losses | (1,093) | (1,503) |
Charge-offs, net of recoveries | 0 | 0 |
Allowance for credit losses, total ending balance | 1,558 | 2,651 |
Commercial mortgage and other loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 2,587 | 4,071 |
Addition to (release of) allowance for losses | (1,074) | (1,484) |
Charge-offs, net of recoveries | 0 | 0 |
Allowance for credit losses, total ending balance | 1,513 | 2,587 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 64 | 83 |
Addition to (release of) allowance for losses | (19) | (19) |
Charge-offs, net of recoveries | 0 | 0 |
Allowance for credit losses, total ending balance | 45 | 64 |
Uncollateralized loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 0 | 0 |
Addition to (release of) allowance for losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Allowance for credit losses, total ending balance | $ 0 | $ 0 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Collectively evaluated for impairment | 1,558 | 2,651 |
Total ending balance | 1,558 | 2,651 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 2,528 | 287 |
Gross of reserves: collectively evaluated for impairment | 1,149,411 | 1,660,599 |
Total ending balance, gross of reserves | 1,151,939 | 1,660,886 |
Commercial mortgage and other loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,513 | 2,587 |
Total ending balance | 1,513 | 2,587 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 2,528 | 0 |
Gross of reserves: collectively evaluated for impairment | 1,086,088 | 1,545,853 |
Total ending balance, gross of reserves | 1,088,616 | 1,545,853 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 45 | 64 |
Total ending balance | 45 | 64 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 287 |
Gross of reserves: collectively evaluated for impairment | 63,323 | 106,336 |
Total ending balance, gross of reserves | 63,323 | 106,623 |
Uncollateralized loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 0 | 8,410 |
Total ending balance, gross of reserves | 0 | 8,410 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial mortgage and other loans | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Uncollateralized loans | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance, gross of reserves | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Property Loans - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | $ 1,151,939 | $ 1,652,476 |
0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 752,317 | 1,047,092 |
60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 275,537 | 387,784 |
70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 119,344 | 209,679 |
80% or Greater | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 4,741 | 7,921 |
Debt Service Coverage Ratio, Greater than or Equal to 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 1,092,909 | 1,580,758 |
Debt Service Coverage Ratio, Greater than or Equal to 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 732,473 | 1,004,751 |
Debt Service Coverage Ratio, Greater than or Equal to 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 267,122 | 378,799 |
Debt Service Coverage Ratio, Greater than or Equal to 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 88,811 | 197,208 |
Debt Service Coverage Ratio, Greater than or Equal to 1.2X | 80% or Greater | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 4,503 | 0 |
Debt Service Coverage Ratio, 1.0X to less than 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 57,892 | 55,957 |
Debt Service Coverage Ratio, 1.0X to less than 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 19,844 | 35,579 |
Debt Service Coverage Ratio, 1.0X to less than 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 7,515 | 4,969 |
Debt Service Coverage Ratio, 1.0X to less than 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 30,533 | 12,471 |
Debt Service Coverage Ratio, 1.0X to less than 1.2X | 80% or Greater | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 2,938 |
Debt Service Coverage Ratio, Less than 1.0X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 1,138 | 15,761 |
Debt Service Coverage Ratio, Less than 1.0X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 6,762 |
Debt Service Coverage Ratio, Less than 1.0X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 900 | 4,016 |
Debt Service Coverage Ratio, Less than 1.0X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 0 |
Debt Service Coverage Ratio, Less than 1.0X | 80% or Greater | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | $ 238 | $ 4,983 |
Investments Investments (Analys
Investments Investments (Analysis of Past Due Commercial Mortgage, Agricultural, and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Current | $ 1,151,939 | $ 1,660,599 |
Recorded Investment Total | 1,151,939 | 1,660,886 |
Recorded Investment, Non-Accrual Status | 0 | 0 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 287 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Current | 1,088,616 | 1,545,853 |
Recorded Investment Total | 1,088,616 | 1,545,853 |
Recorded Investment, Non-Accrual Status | 0 | 0 |
Commercial mortgage and other loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Current | 63,323 | 106,336 |
Recorded Investment Total | 63,323 | 106,623 |
Recorded Investment, Non-Accrual Status | 0 | 0 |
Agricultural Property Loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 287 |
Agricultural Property Loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Agricultural Property Loans | Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Current | 0 | 8,410 |
Recorded Investment Total | 0 | 8,410 |
Recorded Investment, Non-Accrual Status | 0 | 0 |
Uncollateralized loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Past Due | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Long Term Investments | ||
Other long-term investments | $ 344,463 | $ 379,237 |
Company’s investment in separate accounts | ||
Other Long Term Investments | ||
Other long-term investments | 34,088 | 28,567 |
Private Equity Funds | ||
Other Long Term Investments | ||
Other long-term investments | 139,493 | 140,310 |
Hedge Funds | ||
Other Long Term Investments | ||
Other long-term investments | 81,104 | 130,575 |
Real Estate Properties | ||
Other Long Term Investments | ||
Other long-term investments | 11,912 | 9,685 |
Joint ventures and limited partnerships | ||
Other Long Term Investments | ||
Other long-term investments | 232,509 | 280,570 |
Derivatives | ||
Other Long Term Investments | ||
Other long-term investments | $ 77,866 | $ 70,100 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 397,357 | $ 439,314 | $ 423,737 |
Less: investment expenses | (21,407) | (22,727) | (19,719) |
Net investment income | 375,950 | 416,587 | 404,018 |
Fixed maturities, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 242,351 | 269,073 | 262,532 |
Equity securities, available-for-sale: | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1 | 2 | 2 |
Trading account assets | |||
Net Investment Income [Line Items] | |||
Gross investment income | 2,051 | 2,800 | 1,018 |
Commercial mortgage and other loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 58,940 | 86,354 | 81,848 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 62,735 | 62,304 | 60,847 |
Short-term investments and cash equivalents | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,767 | 1,042 | 528 |
Other long-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 29,512 | $ 17,739 | $ 16,962 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | $ 758,449 | $ (208,538) | $ 114,067 |
Fixed maturities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | 66,110 | 9,505 | 17,563 |
Equity securities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | (1,570) | 397 | 1,085 |
Commercial mortgage and other loans | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | 29,584 | 1,503 | 4,644 |
Joint ventures and limited partnerships | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | (229) | 320 | 210 |
Derivatives | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | 664,533 | (220,292) | 90,556 |
Short-term investments and cash equivalents | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Total realized investment gains (losses), net | $ 21 | $ 29 | $ 9 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ 112,432 | $ 117,033 | $ 349,910 |
Fixed maturity securities on which an OTTI loss has been recognized | Available-for-sale Securities | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 4,883 | 5,196 | 5,333 |
Fixed maturities, available-for-sale | Available-for-sale Securities | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 59,755 | 59,930 | 322,358 |
Equity securities, available-for-sale: | Available-for-sale Securities | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 366 | (2,636) | 619 |
Derivatives designated as cash flow hedges | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 40,931 | 48,271 | 11,585 |
Other investments | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ 6,497 | $ 6,272 | $ 10,015 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral and Associated Liabilities | ||
Securities Pledged | $ 140,810 | $ 38,421 |
Liabilities Supported by Pledged Collateral | 143,880 | 40,416 |
Fixed maturities, available-for-sale: | ||
Financial Instruments Owned and Pledged as Collateral and Associated Liabilities | ||
Securities Pledged | 140,810 | 38,421 |
Cash Collateral For Loaned Securities | ||
Financial Instruments Owned and Pledged as Collateral and Associated Liabilities | ||
Liabilities Supported by Pledged Collateral | 74,976 | 40,416 |
Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned and Pledged as Collateral and Associated Liabilities | ||
Liabilities Supported by Pledged Collateral | $ 68,904 | $ 0 |
Deferred Policy Acquisition C57
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 5,129,931 | $ 5,081,938 | $ 5,045,025 |
Capitalization of commissions, sales and issue expenses | 316,828 | 616,002 | 626,718 |
Amortization-Impact of assumption and experience unlocking and true-ups | 130,652 | 112,039 | 276,743 |
Amortization-All other | (758,753) | (771,208) | (708,555) |
Change in unrealized investment gains and losses | (28,723) | 91,160 | (67,056) |
Other | (3,448,842) | 0 | (90,937) |
Balance, end of year | $ 1,341,093 | $ 5,129,931 | $ 5,081,938 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Individual and group annuities and supplementary contracts | $ 548,064 | $ 519,462 |
Other contract liabilities | 5,071,616 | 5,238,061 |
Total future policy benefits | 16,503,260 | 15,198,755 |
Domestic | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance | 9,643,227 | 8,277,233 |
Taiwan | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance | $ 1,240,353 | $ 1,163,999 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholders’ account balances | $ 18,894,893 | $ 17,204,824 |
Individual nonparticipating Life Insurance | Domestic | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 1.70% | |
Individual nonparticipating Life Insurance | Domestic | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 7.80% | |
Individual nonparticipating Life Insurance | Taiwan | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 6.20% | |
Individual nonparticipating Life Insurance | Taiwan | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 7.40% | |
Individual and Group Annuities and Supplementary Contracts | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Percentage of reserves based on interest rates in excess of 8% | 0.80% | |
Individual and Group Annuities and Supplementary Contracts | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 0.00% | |
Individual and Group Annuities and Supplementary Contracts | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 14.80% | |
Other | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholders’ account balances | $ 1,129,314 | 947,871 |
Other | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 1.40% | |
Liability for Policyholders' Account Balances, interest rate | 0.50% | |
Other | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, interest rate | 4.10% | |
Liability for Policyholders' Account Balances, interest rate | 8.00% | |
Interest-sensitive life contracts | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholders’ account balances | $ 14,593,376 | 13,344,332 |
Interest-sensitive life contracts | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 0.80% | |
Interest-sensitive life contracts | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 4.30% | |
Individual annuities | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholders’ account balances | $ 2,861,882 | 2,549,289 |
Individual annuities | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 0.00% | |
Individual annuities | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 6.30% | |
Guaranteed interest accounts | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholders’ account balances | $ 310,321 | $ 363,332 |
Guaranteed interest accounts | Minimum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 1.00% | |
Guaranteed interest accounts | Maximum | ||
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders' Account Balances, interest rate | 6.00% |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 18,894,893 | $ 17,204,824 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 14,593,376 | 13,344,332 |
Individual annuities | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 2,861,882 | 2,549,289 |
Guaranteed interest accounts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 310,321 | 363,332 |
Other | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 1,129,314 | $ 947,871 |
Certain Long-Duration Contrac61
Certain Long-Duration Contracts with Guarantees (Variable Annuity, Variable Life, Variable Universal Life and Universal Life Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Annuity Contracts | Return of net deposits | In the Event of Death(2) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 85,056,405 | $ 79,034,807 |
Net amount at risk | $ 178,806 | $ 385,773 |
Average attained age of contractholders | 64 years | 64 years |
Variable Annuity Contracts | Minimum return or contract value | In the Event of Death(2) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 20,091,528 | $ 20,113,504 |
Net amount at risk | $ 2,039,249 | $ 2,349,232 |
Average attained age of contractholders | 68 years | 68 years |
Variable Annuity Contracts | Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 95,908,923 | $ 89,935,139 |
Net amount at risk | $ 2,875,524 | $ 2,633,207 |
Average attained age of contractholders | 65 years | 64 years |
Average period remaining until earliest expected annuitization | 0 years | 0 years |
Variable Life, Variable Universal Life and Universal Life Contracts | No-lapse guarantees | In the Event of Death(2) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account value | $ 3,125,804 | $ 2,907,924 |
General account value | 6,234,678 | 5,449,616 |
Net amount at risk | $ 119,838,053 | $ 103,714,953 |
Average attained age of contractholders | 55 years | 54 years |
Certain Long-Duration Contrac62
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 102,262,328 | $ 96,526,041 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 59,482,605 | 59,671,583 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 36,221,736 | 33,045,700 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 6,557,987 | $ 3,808,758 |
Certain Long-Duration Contrac63
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 2.9 | $ 2.6 |
Certain Long-Duration Contrac64
Certain Long-Duration Contracts with Guarantees (Liabilities for Guarantee Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 8,858,768 | $ 8,276,441 | $ 1,716,198 |
Incurred guarantee benefits | 628,842 | 839,578 | 6,313,676 |
Paid guarantee benefits | (76,447) | (57,770) | (41,124) |
Changes in unrealized investment gains and losses | 103,057 | (199,481) | 287,691 |
Ending balance | 9,514,220 | 8,858,768 | 8,276,441 |
GMDB | Variable Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 376,894 | 321,217 | 207,854 |
Incurred guarantee benefits | 48,832 | 95,747 | 131,594 |
Paid guarantee benefits | (38,661) | (34,021) | (22,079) |
Changes in unrealized investment gains and losses | 928 | (6,049) | 3,848 |
Ending balance | 387,993 | 376,894 | 321,217 |
GMDB | Variable Life, Variable Universal Life & Universal Life(2) | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 3,245,821 | 2,921,933 | 1,834,290 |
Incurred guarantee benefits | 746,130 | 538,906 | 822,167 |
Paid guarantee benefits | (35,894) | (21,811) | (18,192) |
Changes in unrealized investment gains and losses | 102,124 | (193,207) | 283,668 |
Ending balance | 4,058,181 | 3,245,821 | 2,921,933 |
GMIB | Variable Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 30,618 | 39,681 | 22,454 |
Incurred guarantee benefits | (1,693) | (6,900) | 17,905 |
Paid guarantee benefits | (1,892) | (1,938) | (853) |
Changes in unrealized investment gains and losses | 5 | (225) | 175 |
Ending balance | 27,038 | 30,618 | 39,681 |
GMWB/GMIWB/ GMAB | Variable Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 5,205,435 | 4,993,610 | (348,400) |
Incurred guarantee benefits | (164,427) | 211,825 | 5,342,010 |
Paid guarantee benefits | 0 | 0 | 0 |
Changes in unrealized investment gains and losses | 0 | 0 | 0 |
Ending balance | $ 5,041,008 | $ 5,205,435 | $ 4,993,610 |
Certain Long-Duration Contrac65
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Beginning balance | $ 684,844 | $ 836,791 | $ 989,889 |
Capitalization | 932 | 6,462 | 9,112 |
Amortization-Impact of assumption and experience unlocking and true-ups | 11,817 | 21,829 | 34,420 |
Amortization-All other | (144,670) | (183,843) | (194,673) |
Change in unrealized investment gains (losses) | (2,802) | 3,605 | (1,957) |
Other | (550,121) | ||
Ending balance | $ 0 | $ 684,844 | $ 836,791 |
Statutory Net Income and Surp66
Statutory Net Income and Surplus and Dividend Restrictions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | |||
Statutory Net Income | $ 578 | $ 593 | $ 169 |
Statutory Surplus | 1,250 | 2,796 | |
Capacity for STAT Dividend | 125 | ||
Statutory Dividend | $ 2,593 | $ 430 | $ 748 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense (benefit): | ||||||
U.S. Federal | $ (99,443) | $ 105,992 | $ 112,742 | |||
State and local | 49 | 129 | 0 | |||
Total | (99,394) | 106,121 | 112,742 | |||
Deferred tax expense (benefit): | ||||||
U.S. Federal | 25,525 | (116,762) | 24,327 | |||
Total | 25,525 | (116,762) | 24,327 | |||
Total income tax expense (benefit) | $ 5,055 | $ (44,108) | $ (39,053) | (73,869) | (10,641) | 137,069 |
Total income tax expense (benefit) reported in equity related to: | ||||||
Other comprehensive income (loss) | 3,322 | (61,322) | 65,717 | |||
Additional paid-in capital | 587 | (6,560) | (6,507) | |||
Total income tax expense (benefit) | $ (69,960) | $ (78,523) | $ 196,279 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Benefit, Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 15,000 | |||
Statutory federal income tax rate | 35.00% | |||
Income before income tax, Domestic | $ 321,000 | 497,000 | $ 917,000 | |
Unrecognized tax benefits | $ 9,488 | $ 0 | $ 0 | $ 0 |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Expected federal income tax expense | $ 112,472 | $ 174,077 | $ 320,866 | |||
Non-taxable investment income | (146,324) | (161,407) | (152,844) | |||
Tax credits | (30,916) | (24,232) | (32,881) | |||
Domestic production activities deduction, net | (9,488) | 0 | 0 | |||
Other | 387 | 921 | 1,928 | |||
Total income tax expense (benefit) | $ 5,055 | $ (44,108) | $ (39,053) | $ (73,869) | $ (10,641) | $ 137,069 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Insurance reserves | $ 148,115 | $ 1,668,038 |
Other | 1,966 | 1,442 |
Deferred tax assets | 150,081 | 1,669,480 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | 45,405 | 1,398,775 |
Deferred sales inducements | 0 | 239,695 |
Net unrealized gains on securities | 24,949 | 23,991 |
Investments | 171,303 | 69,163 |
Deferred tax liabilities | 241,657 | 1,731,624 |
Deferred tax liabilities | $ (91,576) | $ (62,144) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1, | $ 0 | $ 0 | $ 0 |
Increases in unrecognized tax benefits-prior years | 4,744 | 0 | 0 |
(Decreases) in unrecognized tax benefits-prior years | 0 | 0 | 0 |
Increases in unrecognized tax benefits-current year | 4,744 | 0 | 0 |
(Decreases) in unrecognized tax benefits-current year | 0 | 0 | 0 |
Settlements with taxing authorities | 0 | 0 | 0 |
Balance at December 31, | 9,488 | 0 | 0 |
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | $ 9,488 | $ 0 | $ 0 |
Fair Value of Assets and Liab72
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | $ 5,617,549 | $ 6,840,932 |
Trading account assets | 35,328 | 64,612 |
Equity securities, available-for-sale | 16,756 | 51,973 |
Short-term investments | 36,657 | 54,806 |
Other long-term investments | 344,463 | 379,237 |
Receivables from parent and affiliates | 213,952 | 228,253 |
Separate account assets | 116,606,428 | 109,350,121 |
Future policy benefits | 15,198,755 | |
Policyholders’ account balances | 17,204,824 | |
Netting | 200 | 198,000 |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 5,041,000 | 5,205,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 1,157,000 | 655,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 6,198,000 | 5,860,000 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, Equity | 15,770 | 18,248 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,617,549 | 6,840,932 |
Trading account assets | 35,328 | 64,612 |
Equity securities, available-for-sale | 16,756 | 51,973 |
Short-term investments | 36,657 | 54,806 |
Cash equivalents | 7,642 | 194,925 |
Other long-term investments | 77,865 | 72,544 |
Reinsurance recoverables | 5,474,263 | 4,940,011 |
Receivables from parent and affiliates | 137,637 | 162,625 |
Subtotal excluding separate account assets | 11,403,697 | 12,382,428 |
Separate account assets | 116,040,888 | 108,967,162 |
Total assets | 127,444,585 | 121,349,590 |
Future policy benefits | 5,041,007 | 5,205,434 |
Policyholders’ account balances | 20,337 | 0 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 5,061,344 | 5,205,434 |
Asset Netting | (13,019) | (230,554) |
Liability Netting | (12,854) | (32,849) |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Netting | (13,019) | (230,554) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Netting | (12,854) | (32,849) |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 160,740 | 94,049 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 626,486 | 624,769 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 108,782 | 70,410 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,361,518 | 2,690,554 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 884,284 | 1,344,929 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 221,848 | 275,349 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 599,016 | 778,642 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 19,256 | 44,374 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 189,016 | 435,131 |
Trading account assets, debt | 302 | 1,990 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 382,671 | 404,345 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 83,188 | 122,754 |
Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, Equity | 15,770 | 18,248 |
Fair Value, Measurements, Recurring | Level 1 | ||
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 | 41 | 39 |
Short-term investments | 31,007 | 18,713 |
Cash equivalents | 5,644 | 50,998 |
Other long-term investments | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 36,692 | 69,750 |
Separate account assets | 0 | 0 |
Total assets | 36,692 | 69,750 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, Equity | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,495,137 | 6,572,093 |
Trading account assets | 19,558 | 46,364 |
Equity securities, available-for-sale | 16,640 | 51,769 |
Short-term investments | 5,650 | 36,093 |
Cash equivalents | 1,998 | 143,927 |
Other long-term investments | 90,884 | 297,394 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 131,144 | 157,625 |
Subtotal excluding separate account assets | 5,761,011 | 7,305,265 |
Separate account assets | 116,040,888 | 108,967,162 |
Total assets | 121,801,899 | 116,272,427 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 12,854 | 32,849 |
Total liabilities | 12,854 | 32,849 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 160,740 | 94,049 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 626,486 | 624,769 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 108,782 | 70,410 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,306,409 | 2,635,551 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 851,585 | 1,322,213 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 221,848 | 275,349 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 584,268 | 760,869 |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 19,256 | 44,374 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 169,160 | 261,784 |
Trading account assets, debt | 302 | 1,990 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 382,671 | 404,345 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 83,188 | 122,754 |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, Equity | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 122,412 | 268,839 |
Trading account assets | 15,770 | 18,248 |
Equity securities, available-for-sale | 75 | 165 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Other long-term investments | 0 | 5,704 |
Reinsurance recoverables | 5,474,263 | 4,940,011 |
Receivables from parent and affiliates | 6,493 | 5,000 |
Subtotal excluding separate account assets | 5,619,013 | 5,237,967 |
Separate account assets | 0 | 0 |
Total assets | 5,619,013 | 5,237,967 |
Future policy benefits | 5,041,007 | 5,205,434 |
Policyholders’ account balances | 20,337 | 0 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 5,061,344 | 5,205,434 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 55,109 | 55,003 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 32,699 | 22,716 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 14,748 | 17,773 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 19,856 | 173,347 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, Equity | $ 15,770 | $ 18,248 |
Fair Value of Assets and Liab73
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers Between Level 1 and Level 2 | $ 0 | $ 0 |
Accounting Standards Update 2015-07 | Other long-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 900,000 | 1,000,000 |
Accounting Standards Update 2015-07 | Separate Account Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 566,000,000 | $ 383,000,000 |
Fair Value of Assets and Liab74
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investments | $ 344,463 | $ 379,237 |
Receivables from parent and affiliates | 213,952 | 228,253 |
Future policy benefits | 15,198,755 | |
Policyholders’ account balances | 17,204,824 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investments | 77,865 | 72,544 |
Reinsurance recoverables | 5,474,263 | 4,940,011 |
Receivables from parent and affiliates | 137,637 | 162,625 |
Total assets | 127,444,585 | 121,349,590 |
Future policy benefits | 5,041,007 | 5,205,434 |
Policyholders’ account balances | 20,337 | 0 |
Total liabilities | 5,061,344 | 5,205,434 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 15,845 | 18,413 |
Other long-term investments | 0 | 5,704 |
Reinsurance recoverables | 5,474,263 | 4,940,011 |
Receivables from parent and affiliates | 6,493 | 5,000 |
Total assets | 5,619,013 | 5,237,967 |
Future policy benefits | 5,041,007 | 5,205,434 |
Policyholders’ account balances | 20,337 | 0 |
Total liabilities | 5,061,344 | 5,205,434 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 102,556 | 95,492 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 19,856 | 173,347 |
Fair Value, Measurements, Recurring | Level 3 | Internal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,014 | 165 |
Other long-term investments | 0 | 3,260 |
Reinsurance recoverables | 5,474,263 | 4,940,011 |
Receivables from parent and affiliates | 0 | 0 |
Total assets | 5,523,047 | 4,984,086 |
Future policy benefits | 5,041,007 | 5,205,434 |
Policyholders’ account balances | 20,337 | 0 |
Total liabilities | 5,061,344 | 5,205,434 |
Fair Value, Measurements, Recurring | Level 3 | Internal | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 45,715 | 40,492 |
Fair Value, Measurements, Recurring | Level 3 | Internal | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 55 | 158 |
Fair Value, Measurements, Recurring | Level 3 | External | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 12,831 | 18,248 |
Other long-term investments | 0 | 2,444 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 6,493 | 5,000 |
Total assets | 95,966 | 253,881 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | External | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 56,841 | 55,000 |
Fair Value, Measurements, Recurring | Level 3 | External | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 19,801 | $ 173,189 |
Fair Value of Assets and Liab75
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 15,198,755 | |
Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 5,041,007 | $ 5,205,434 |
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 | |
Level 3 | Discounted cash flow | Minimum | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.25% | 0.06% |
Utilization rate | 52.00% | 56.00% |
Withdrawal rate (greater than maximum range for current year) | 78.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 16.00% | 17.00% |
Level 3 | Discounted cash flow | Maximum | Future Policy Benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 13.00% | 14.00% |
NPR spread | 1.50% | 1.76% |
Utilization rate | 96.00% | 96.00% |
Withdrawal rate (greater than maximum range for current year) | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 25.00% | 28.00% |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 5,041,007 | $ 5,205,434 |
Level 3 | Fair Value, Measurements, Recurring | Internal | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables - Living Benefits | 5,041,262 | 4,600,193 |
Future policy benefits | 5,041,007 | 5,205,434 |
Level 3 | Fair Value, Measurements, Recurring | Internal | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables - No Lapse Guarantee | $ 433,001 | $ 339,818 |
Corporate securities | Level 3 | Discounted cash flow | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 4.54% | 5.76% |
Corporate securities | Level 3 | Discounted cash flow | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 15.00% | 17.95% |
Corporate securities | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 8.06% | 8.35% |
Corporate securities | Level 3 | Market comparables | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA Multiples | 4 | 5 |
Corporate securities | Level 3 | Market comparables | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA Multiples | 4 | 5 |
Corporate securities | Level 3 | Market comparables | Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA Multiples | 4 | 5 |
Corporate securities | Level 3 | Liquidation | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs Liquidation Value | 98.21% | |
Corporate securities | Level 3 | Liquidation | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs Liquidation Value | 98.21% | |
Corporate securities | Level 3 | Liquidation | Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs Liquidation Value | 98.21% | |
Corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Corporate securities | $ 102,556 | $ 95,492 |
Corporate securities | Level 3 | Fair Value, Measurements, Recurring | Internal | ||
Fair Value Quantiative Information [Line Items] | ||
Corporate securities | $ 45,715 | $ 40,492 |
Reinsurance Recoverables | Level 3 | Discounted cash flow | Minimum | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.25% | 0.06% |
Mortality rate | 0.00% | 0.00% |
Premium Payment | 0.65 | 1 |
Reinsurance Recoverables | Level 3 | Discounted cash flow | Maximum | No Lapse Guarantee | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 12.00% | 12.00% |
NPR spread | 1.50% | 1.76% |
Mortality rate | 31.00% | 20.00% |
Premium Payment | 0.95 | 3.75 |
Fair Value of Assets and Liab76
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | $ 165 | $ 750 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 337 | $ 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (90) | (245) | 246 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (677) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 75 | 165 | 750 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. corporate public securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 55,003 | 61,092 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 2 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 88 | (46) | 227 |
Net investment income | 1 | (2) | (4) |
Purchases | 0 | 1,901 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (19) | (160) | |
Transfers into Level 3 | 2,643 | 704 | |
Transfers out of Level 3 | (2,607) | (8,486) | |
Other | 0 | 0 | |
Fair Value, end of period | 55,109 | 55,003 | 61,092 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. corporate private securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 22,716 | 14,539 | |
Included in earnings: | |||
Realized investment gains (losses), net | 58 | (448) | 798 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 237 | (590) | 757 |
Net investment income | 77 | 26 | 18 |
Purchases | 5,239 | 19,363 | |
Sales | (7,979) | (6,038) | |
Issuances | 0 | 0 | |
Settlements | (2,984) | (7,812) | |
Transfers into Level 3 | 19,034 | 4,092 | |
Transfers out of Level 3 | (3,699) | (416) | |
Other | 0 | 0 | |
Fair Value, end of period | 32,699 | 22,716 | 14,539 |
Included in earnings: | |||
Realized investment gains (losses), net | (510) | (357) | (101) |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign corporate public securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 14 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 973 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (987) | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign corporate private securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 17,773 | 9,170 | |
Included in earnings: | |||
Realized investment gains (losses), net | (335) | (1,085) | 592 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (1,343) | 884 | (1,129) |
Net investment income | (24) | 6 | 58 |
Purchases | 220 | 5,685 | |
Sales | (1,949) | (69) | |
Issuances | 0 | 0 | |
Settlements | (7,725) | (8,667) | |
Transfers into Level 3 | 8,204 | 11,849 | |
Transfers out of Level 3 | (73) | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 14,748 | 17,773 | 9,170 |
Included in earnings: | |||
Realized investment gains (losses), net | (50) | (1,035) | 0 |
Asset management fees and other income | 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 | 173,347 | 100,217 | |
Included in earnings: | |||
Realized investment gains (losses), net | (891) | 42 | 142 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 158 | (939) | (348) |
Net investment income | 149 | 52 | 80 |
Purchases | 21,473 | 112,250 | |
Sales | (44,486) | (40,130) | |
Issuances | 0 | 0 | |
Settlements | (1,071) | (2,362) | |
Transfers into Level 3 | 48,957 | 90,687 | |
Transfers out of Level 3 | (177,780) | (86,470) | |
Other | 0 | 0 | |
Fair Value, end of period | 19,856 | 173,347 | 100,217 |
Included in earnings: | |||
Realized investment gains (losses), net | (1,378) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Commercial mortgage-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | (2) |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Trading account assets | Asset-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | (32) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (527) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 559 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Trading account assets | Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 18,248 | 5,540 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 192 | 2,207 | 1,424 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | (5,930) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (1,500) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 3,260 | 12,001 | |
Fair Value, end of period | 15,770 | 18,248 | 5,540 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | (769) | 2,162 | 1,426 |
Other Long- term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 5,704 | 595 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 1,912 | 168 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | (67) | 0 | 0 |
Purchases | 102 | 3,395 | |
Sales | 0 | (168) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (2,479) | (30) | |
Other | (3,260) | 0 | |
Fair Value, end of period | 0 | 5,704 | 595 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 1,744 | 168 |
Asset management fees and other income | 0 | 0 | 0 |
Reinsurance Recoverables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 4,940,011 | 4,897,545 | |
Included in earnings: | |||
Realized investment gains (losses), net | (281,009) | (635,006) | 4,683,691 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 815,261 | 677,472 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 5,474,263 | 4,940,011 | 4,897,545 |
Included in earnings: | |||
Realized investment gains (losses), net | 4,326,977 | (482,828) | 4,672,815 |
Asset management fees and other income | 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 | 5,000 | 19,203 | |
Included in earnings: | |||
Realized investment gains (losses), net | (13) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 16 | (17) | (121) |
Net investment income | 0 | 0 | 0 |
Purchases | 6,500 | 0 | |
Sales | (1,987) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 6,448 | |
Transfers out of Level 3 | (2,464) | (20,634) | |
Other | (559) | 0 | |
Fair Value, end of period | 6,493 | 5,000 | 19,203 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Future Policy Benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (5,205,434) | (4,993,611) | |
Included in earnings: | |||
Realized investment gains (losses), net | 975,823 | 505,416 | (4,690,021) |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (811,396) | (717,239) | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, End of Period | (5,041,007) | (5,205,434) | (4,993,611) |
Included in earnings: | |||
Realized investment gains (losses), net | 866,386 | 381,057 | (4,679,851) |
Asset management fees and other income | 0 | 0 | 0 |
Policyholders' Account Balances | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | (8,463) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (5,972) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | (5,902) | ||
Fair Value, End of Period | (20,337) | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | (8,463) | 0 | 0 |
Asset management fees and other income | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab77
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Commercial mortgage and other loans | $ 1,150,381 | $ 1,658,235 |
Policy loans | 1,166,456 | 1,143,303 |
Accrued investment income | 87,322 | 100,031 |
Liabilities: | ||
Securities Sold under Agreements to Repurchase | 68,904 | 0 |
Cash collateral for loaned securities | 74,976 | 40,416 |
Short-term debt to affiliates | 0 | 180,000 |
Long-term debt to affiliates | 0 | 1,204,000 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 1,181,582 | 1,710,491 |
Policy loans | 1,166,456 | 1,143,303 |
Cash and cash equivalents | 88,515 | 175,361 |
Accrued investment income | 87,322 | 100,031 |
Receivables from parent and affiliates | 76,315 | 65,628 |
Other assets | 37,969 | 6,162 |
Total assets | 2,638,159 | 3,200,976 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,382,385 | 1,184,744 |
Securities Sold under Agreements to Repurchase | 68,904 | 0 |
Cash collateral for loaned securities | 74,976 | 40,416 |
Short-term debt to affiliates | 0 | 180,105 |
Long-term debt to affiliates | 0 | 1,227,110 |
Payables to parent and affiliates | 73,628 | 72,791 |
Other liabilities | 305,969 | 343,089 |
Total liabilities | 1,905,862 | 3,048,255 |
Fair Value | Accounting Standards Update 2015-07 | ||
Liabilities: | ||
Cost Method Investments, Fair Value Disclosure | 35,000 | 27,000 |
Fair Value | Level 1 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Cash and cash equivalents | 30,149 | 19,297 |
Accrued investment income | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 30,149 | 19,297 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Securities Sold under Agreements to Repurchase | 0 | 0 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt to affiliates | 0 | 0 |
Long-term debt to affiliates | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 8,540 |
Policy loans | 0 | 0 |
Cash and cash equivalents | 58,366 | 156,064 |
Accrued investment income | 87,322 | 100,031 |
Receivables from parent and affiliates | 76,315 | 65,628 |
Other assets | 37,969 | 6,162 |
Total assets | 259,972 | 336,425 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,129,378 | 947,853 |
Securities Sold under Agreements to Repurchase | 68,904 | 0 |
Cash collateral for loaned securities | 74,976 | 40,416 |
Short-term debt to affiliates | 0 | 180,105 |
Long-term debt to affiliates | 0 | 1,227,110 |
Payables to parent and affiliates | 73,628 | 72,791 |
Other liabilities | 305,969 | 343,089 |
Total liabilities | 1,652,855 | 2,811,364 |
Fair Value | Level 3 | ||
Assets: | ||
Commercial mortgage and other loans | 1,181,582 | 1,701,951 |
Policy loans | 1,166,456 | 1,143,303 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 2,348,038 | 2,845,254 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 253,007 | 236,891 |
Securities Sold under Agreements to Repurchase | 0 | 0 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt to affiliates | 0 | 0 |
Long-term debt to affiliates | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 253,007 | 236,891 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 1,150,381 | 1,658,235 |
Policy loans | 1,166,456 | 1,143,303 |
Cash and cash equivalents | 88,515 | 175,361 |
Accrued investment income | 87,322 | 100,031 |
Receivables from parent and affiliates | 76,315 | 65,628 |
Other assets | 37,969 | 6,162 |
Total assets | 2,606,958 | 3,148,720 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,386,099 | 1,190,596 |
Securities Sold under Agreements to Repurchase | 68,904 | 0 |
Cash collateral for loaned securities | 74,976 | 40,416 |
Short-term debt to affiliates | 0 | 180,000 |
Long-term debt to affiliates | 0 | 1,204,000 |
Payables to parent and affiliates | 73,628 | 72,791 |
Other liabilities | 305,969 | 343,089 |
Total liabilities | 1,909,576 | 3,030,892 |
Carrying Amount | Accounting Standards Update 2015-07 | ||
Liabilities: | ||
Cost Method Investments, Fair Value Disclosure | $ 32,000 | $ 26,000 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ 5,041 | $ 5,205 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 5 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 19 years | |
Credit Derivative, Maximum Exposure, Undiscounted | $ 3 | 7 |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) (less than) | (0.3) | 0 |
Policyholders' Account Balances | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 20 | 6 |
Future Policy Benefits | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 5,041 | 5,205 |
Reinsurance Recoverables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (5,474) | (4,940) |
Union Hamilton Reinsurance, Ltd. | Reinsurance Recoverables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 0 | (7) |
UPARC | Reinsurance Recoverables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (433) | (340) |
PALAC and Prudential Insurance | Reinsurance Recoverables | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (5,041) | $ (4,593) |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional | $ 1,259,558 | $ 29,709,613 |
Gross Fair Value Assets | 90,884 | 300,655 |
Gross Fair Value Liabilities | (12,854) | (32,849) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 435,602 | 529,128 |
Gross Fair Value Assets | 44,040 | 50,877 |
Gross Fair Value Liabilities | (1,835) | (1,385) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 823,956 | 29,180,485 |
Gross Fair Value Assets | 46,844 | 249,778 |
Gross Fair Value Liabilities | (11,019) | (31,464) |
Currency Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 435,602 | 529,128 |
Gross Fair Value Assets | 44,040 | 50,877 |
Gross Fair Value Liabilities | (1,835) | (1,385) |
Currency Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 56,626 | 122,425 |
Gross Fair Value Assets | 7,789 | 17,079 |
Gross Fair Value Liabilities | (211) | (71) |
Interest Rate Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 101,076 | 3,159,400 |
Gross Fair Value Assets | 8,215 | 203,313 |
Gross Fair Value Liabilities | 0 | (8,605) |
Foreign Currency Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 13,447 | 3,722 |
Gross Fair Value Assets | 216 | 39 |
Gross Fair Value Liabilities | (20) | (15) |
Credit Default Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 3,000 | 7,275 |
Gross Fair Value Assets | 0 | 268 |
Gross Fair Value Liabilities | (281) | (222) |
Total Return Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 0 | 542,294 |
Gross Fair Value Assets | 0 | 411 |
Gross Fair Value Liabilities | 0 | (10,451) |
Equity Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 649,807 | 25,345,369 |
Gross Fair Value Assets | 30,624 | 28,668 |
Gross Fair Value Liabilities | $ (10,507) | $ (12,100) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting of Financial Assets, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 90,884 | $ 300,655 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Financial Instruments | 58,366 | 156,064 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 58,366 | 156,064 |
Financial Instruments/Collateral | (58,366) | (156,064) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 149,243 | 453,435 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (13,019) | (230,554) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 136,224 | 222,881 |
Financial Instruments/Collateral | (136,224) | (171,221) |
Net Amount | 0 | 51,660 |
Offsetting of Financial Liabilities, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 12,854 | 32,849 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 68,904 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 68,904 | 0 |
Financial Instruments/Collateral | (68,904) | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 81,758 | 32,849 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,854) | (32,849) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 68,904 | 0 |
Financial Instruments/Collateral | (68,904) | 0 |
Net Amount | 0 | 0 |
Counterparty | ||
Offsetting of Financial Assets, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 90,877 | 297,371 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (13,019) | (230,554) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 77,858 | 66,817 |
Financial Instruments/Collateral | (77,858) | (15,157) |
Net Amount | 0 | 51,660 |
Offsetting of Financial Liabilities, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 12,854 | 32,849 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,854) | (32,849) |
Net Amounts Presented in the Consolidated 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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ 664,533 | $ (220,292) | $ 90,556 |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 4,055 | 3,297 | 1,027 |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,623 | 2,088 | 1,034 |
AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (7,340) | 36,686 | 16,286 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 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 derivative, net | 4,055 | 3,297 | 1,027 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,638 | 1,879 | 908 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (7,340) | 36,686 | 16,286 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 664,533 | (220,292) | 90,556 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (15) | 209 | 126 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 186,419 | 77,158 | 350,946 |
Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,657 | 211 | 86 |
Currency | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency/Interest Rate | Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency/Interest Rate | Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 4,055 | 3,297 | 1,027 |
Currency/Interest Rate | Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,638 | 1,879 | 908 |
Currency/Interest Rate | Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (7,340) | 36,686 | 16,286 |
Currency/Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 8,960 | 11,533 | 14,344 |
Currency/Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Currency/Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (15) | 209 | 126 |
Currency/Interest Rate | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Credit | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (535) | 90 | 2 |
Credit | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Credit | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Credit | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Equity | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 350 | (35,276) | (65,424) |
Equity | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Equity | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Equity | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Embedded Derivatives | Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 467,682 | (274,008) | (209,398) |
Embedded Derivatives | Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Embedded Derivatives | Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Embedded Derivatives | Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 48,271 | $ 11,585 | $ (4,701) |
Net deferred gains (losses) on cash flow hedges for the period | 575 | 40,972 | 22,880 |
Amount reclassified into current period earnings | (7,915) | (4,286) | (6,594) |
Ending Balance | $ 40,931 | $ 48,271 | $ 11,585 |
Commitments, Contingent Liabi83
Commitments, Contingent Liabilities and Litigation and Regulatory Matters (Narrative) (Details) $ in Millions | 1 Months Ended | 31 Months Ended | ||
Feb. 29, 2012state | Jan. 31, 2012state | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ||||
Wells Fargo Annualized New Business Premiums | $ 4 | |||
Number Of States Needed For Agreement To Become Effective | state | 20 | 20 | ||
Purchase Obligation Commercial Mortgage Loan | 49 | $ 62 | ||
Purchase Obligation To Purchase Or Fund Investments | 133 | $ 131 | ||
Maximum | ||||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ||||
Loss Contingency, Range of Possible Loss, Maximum (less than) | $ 30 |
Reinsurance (Balance Sheet Rein
Reinsurance (Balance Sheet Reinsurance Results) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | $ 28,674,226 | $ 22,691,491 | ||
Policy loans | (1,166,456) | (1,143,303) | ||
Deferred policy acquisition costs | (1,341,093) | (5,129,931) | $ (5,081,938) | $ (5,045,025) |
Deferred sales inducements | 0 | (684,844) | $ (836,791) | $ (989,889) |
Other assets | 279,222 | 59,578 | ||
Policyholders’ account balances | 17,204,824 | |||
Future policy benefits | 15,198,755 | |||
Other liabilities | 849,698 | 935,662 | ||
Impacts of Reinsurance | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | 28,674,226 | 22,691,491 | ||
Policy loans | (87,112) | (75,697) | ||
Deferred policy acquisition costs | (6,482,889) | (2,158,121) | ||
Deferred sales inducements | (615,117) | 0 | ||
Other assets | 226,347 | 35,616 | ||
Policyholders’ account balances | 4,978,859 | 5,020,230 | ||
Future policy benefits | 2,833,327 | 2,380,215 | ||
Other liabilities | 410,376 | 516,525 | ||
Unaffiliated | ||||
Effects of Reinsurance [Line Items] | ||||
Other assets | 100 | 0 | ||
Other liabilities | $ 28,000 | $ 22,000 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 28,674,226 | $ 22,691,491 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 10,514,125 | 9,867,902 |
PALAC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 7,706,860 | 0 |
PURC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 3,153,449 | 2,324,163 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,589,397 | 2,563,300 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,403,738 | 1,226,749 |
Prudential of Taiwan | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,246,241 | 1,169,664 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 976,652 | 226,926 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 593,084 | 298,002 |
UPARC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 467,904 | 376,660 |
Pruco Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 0 | 4,594,412 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 22,776 | $ 43,713 |
Reinsurance (Income Statement R
Reinsurance (Income Statement Reinsurance Results) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premiums: | ||||||
Direct | $ 1,621,531 | $ 1,519,992 | $ 1,408,833 | |||
Assumed | 359 | 0 | 0 | |||
Ceded | (2,447,832) | (1,442,358) | (1,342,627) | |||
Net premiums | (825,942) | 77,634 | 66,206 | |||
Policy charges and fee income: | ||||||
Direct | 2,804,446 | 2,933,271 | 2,754,115 | |||
Assumed | 533,648 | 434,560 | 477,921 | |||
Ceded | (2,550,899) | (1,211,444) | (1,160,997) | |||
Net policy charges and fee income | $ 58,931 | $ 526,562 | $ 585,493 | 787,195 | 2,156,387 | 2,071,039 |
Net investment income: | ||||||
Direct | 378,969 | 419,357 | 406,620 | |||
Assumed | 1,411 | 1,394 | 1,362 | |||
Ceded | (4,430) | (4,164) | (3,964) | |||
Net investment income | 375,950 | 416,587 | 404,018 | |||
Asset administration fees: | ||||||
Direct | 310,178 | 362,321 | 377,127 | |||
Assumed | 0 | 0 | 0 | |||
Ceded | (225,735) | 0 | 0 | |||
Net asset administration fees | 84,443 | 362,321 | 377,127 | |||
Other income: | ||||||
Direct | 50,475 | 44,223 | 49,891 | |||
Assumed | (161) | 0 | 0 | |||
Ceded | 21 | 0 | 0 | |||
Amortization of reinsurance income | (19,228) | 11,292 | 7,936 | |||
Net other income | 31,107 | 55,515 | 57,827 | |||
Realized investment gains (losses), net: | ||||||
Direct | 1,263,088 | 571,702 | (4,375,107) | |||
Assumed | 0 | 0 | 0 | |||
Ceded | (504,639) | (780,240) | 4,489,174 | |||
Realized investment gains (losses), net | 758,449 | (208,538) | 114,067 | |||
Policyholders’ benefits (including change in reserves): | ||||||
Direct | 2,456,262 | 2,064,906 | 1,863,078 | |||
Assumed | 596,196 | 541,371 | 792,616 | |||
Ceded | (3,312,658) | (2,307,127) | (2,301,997) | |||
Net policyholders’ benefits (including change in reserves) | $ (472,610) | $ 100,730 | $ (371,880) | (260,200) | 299,150 | 353,697 |
Interest credited to policyholders’ account balances: | ||||||
Direct | 413,328 | 477,667 | 459,982 | |||
Assumed | 131,953 | 124,954 | 117,725 | |||
Ceded | (244,061) | (228,410) | (209,392) | |||
Net interest credited to policyholders’ account balances | 301,220 | 374,211 | 368,315 | |||
Net reinsurance expense allowances, net of capitalization and amortization | (840,010) | (354,372) | (390,531) | |||
Unaffiliated | ||||||
Premiums: | ||||||
Assumed | 400 | 0 | 0 | |||
Policy charges and fee income: | ||||||
Ceded | (4,000) | (4,000) | (4,000) | |||
Other income: | ||||||
Assumed | (200) | 0 | 0 | |||
Realized investment gains (losses), net: | ||||||
Ceded | (30,000) | 2,000 | 0 | |||
Policyholders’ benefits (including change in reserves): | ||||||
Ceded | $ 5,000 | $ (14,000) | $ 3,000 |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Reinsurance Disclosures [Abstract] | |||
Direct gross life insurance face amount in force | $ 827,832,976 | $ 770,427,543 | $ 709,800,479 |
Assumed gross life insurance face amount in force | 42,566,514 | 43,552,313 | 44,519,176 |
Reinsurance ceded | (805,796,078) | (752,647,594) | (694,659,804) |
Net life insurance face amount in force | $ 64,603,412 | $ 61,332,262 | $ 59,659,851 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2015 | Jul. 01, 2014 | Jan. 01, 2014 | Dec. 31, 2012 | Jul. 01, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2001 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Affiliated Entity | PAR U | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | ||||||||||
Affiliated Entity | PURC | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | 70.00% | |||||||||
Affiliated Entity | PARCC | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | |||||||||||
Affiliated Entity | PAR Term | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||
Affiliated Entity | Prudential Insurance | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |||||||||||
Affiliated Entity | UPARC | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 27.00% | 27.00% | ||||||||||
Reinsurance Retention Policy, Uncollected Charges And Fees Risk, Percentage | 30.00% | 30.00% | ||||||||||
Reinsurance Retention Policy, Amount Retained | $ 1 | $ 1 | ||||||||||
Reinsurance Retention Policy, Excess Retention, Percentage | 30.00% | 30.00% | ||||||||||
Affiliated Entity | Term Re | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||
Affiliated Entity | Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50.00% | |||||||||||
Reinsurance Retention Policy, Amount Retained | $ 2,900 | |||||||||||
Affiliated Entity | Prudential of Taiwan | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Related Party Transaction, Term | 2 years |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 64,805 | ||
Income tax benefit (expense) | (3,322) | $ 61,322 | $ (65,717) |
Ending balance | 70,975 | 64,805 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (397) | (67) | 403 |
Change in other comprehensive income before reclassifications | (8) | (507) | (723) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Income tax benefit (expense) | 3 | 177 | 253 |
Ending balance | (402) | (397) | (67) |
Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 65,202 | 178,758 | 56,243 |
Change in other comprehensive income before reclassifications | 74,040 | (164,799) | 207,134 |
Amounts reclassified from AOCI | (64,540) | (9,902) | (18,649) |
Income tax benefit (expense) | (3,325) | 61,145 | (65,970) |
Ending balance | 71,377 | 65,202 | 178,758 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 64,805 | 178,691 | 56,646 |
Change in other comprehensive income before reclassifications | 74,032 | (165,306) | 206,411 |
Amounts reclassified from AOCI | (64,540) | (9,902) | (18,649) |
Income tax benefit (expense) | (3,322) | 61,322 | (65,717) |
Ending balance | 70,975 | 64,805 | 178,691 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 48,000 | 12,000 | |
Ending balance | $ 41,000 | $ 48,000 | $ 12,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ 64,540 | $ 9,902 | $ 18,649 |
Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 64,540 | 9,902 | 18,649 |
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges—Currency/Interest rate | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized Gain (Loss) on Investments | 7,915 | 4,286 | 6,594 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized Gain (Loss) on Investments | 56,625 | 5,616 | 12,055 |
Reclassification out of Accumulated Other Comprehensive Income | Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 64,540 | 9,902 | 18,649 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ 64,540 | $ 9,902 | $ 18,649 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | $ 64,805 | ||
Ending balance | 70,975 | $ 64,805 | |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 65,202 | 178,758 | $ 56,243 |
Ending balance | 71,377 | 65,202 | 178,758 |
OTTI | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 5,196 | 5,333 | 4,498 |
Net investment gains (losses) on investments arising during the period | 1,238 | 107 | 996 |
Reclassification adjustment for (gains) losses included in net income | (1,107) | (251) | (161) |
Reclassification adjustment for OTTI losses excluded from net income | (444) | 7 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending balance | 4,883 | 5,196 | 5,333 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | (1,350) | (2,538) | (3,324) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (209) | 1,188 | 786 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending balance | (1,559) | (1,350) | (2,538) |
OTTI | Future Policy Benefits and Policyholders' Account Balances | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 1,114 | 1,228 | 1,819 |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 165 | (114) | (591) |
Ending balance | 1,279 | 1,114 | 1,228 |
OTTI | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | (1,767) | (1,440) | (1,079) |
Net investment gains (losses) on investments arising during the period | (433) | (37) | (348) |
Reclassification adjustment for (gains) losses included in net income | 387 | 88 | 56 |
Reclassification adjustment for OTTI losses excluded from net income | 155 | (2) | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 73 | (416) | (275) |
Impact of net unrealized investment (gains) losses on future policy benefits | (58) | 40 | 206 |
Ending balance | (1,643) | (1,767) | (1,440) |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 3,193 | 2,583 | 1,914 |
Net investment gains (losses) on investments arising during the period | 805 | 70 | 648 |
Reclassification adjustment for (gains) losses included in net income | (720) | (163) | (105) |
Reclassification adjustment for OTTI losses excluded from net income | (289) | 5 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (136) | 772 | 511 |
Impact of net unrealized investment (gains) losses on future policy benefits | 107 | (74) | (385) |
Ending balance | $ 2,960 | $ 3,193 | $ 2,583 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | $ 64,805 | ||
Ending balance | 70,975 | $ 64,805 | |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 65,202 | 178,758 | $ 56,243 |
Ending balance | 71,377 | 65,202 | 178,758 |
All Other | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 111,837 | 344,577 | 123,153 |
Net investment gains (losses) on investments arising during the period | (70,379) | (223,082) | 239,912 |
Reclassification adjustment for (gains) losses included in net income | 65,647 | (9,651) | (18,488) |
Reclassification adjustment for OTTI losses excluded from net income | 444 | (7) | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending balance | 107,549 | 111,837 | 344,577 |
All Other | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | (19,252) | (112,829) | (43,030) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 2,017 | 93,577 | (69,799) |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending balance | (17,235) | (19,252) | (112,829) |
All Other | Future Policy Benefits and Policyholders' Account Balances | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 2,647 | 39,122 | 3,293 |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 12,127 | (36,475) | 35,829 |
Ending balance | 14,774 | 2,647 | 39,122 |
All Other | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | (33,223) | (94,695) | (29,087) |
Net investment gains (losses) on investments arising during the period | 24,633 | 78,078 | (83,969) |
Reclassification adjustment for (gains) losses included in net income | (22,976) | 3,378 | 6,471 |
Reclassification adjustment for OTTI losses excluded from net income | (155) | 2 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (706) | (32,752) | 24,430 |
Impact of net unrealized investment (gains) losses on future policy benefits | (4,244) | 12,766 | (12,540) |
Ending balance | (36,671) | (33,223) | (94,695) |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning balance | 62,009 | 176,175 | 54,329 |
Net investment gains (losses) on investments arising during the period | (45,746) | (145,004) | 155,943 |
Reclassification adjustment for (gains) losses included in net income | 42,671 | (6,273) | (12,017) |
Reclassification adjustment for OTTI losses excluded from net income | 289 | (5) | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 1,311 | 60,825 | (45,369) |
Impact of net unrealized investment (gains) losses on future policy benefits | 7,883 | (23,709) | 23,289 |
Ending balance | $ 68,417 | $ 62,009 | $ 176,175 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)policy | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 01, 2016USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||
Other long-term investments | $ 379,237,000 | $ 344,463,000 | $ 379,237,000 | ||||||||||
Net investment income | 375,950,000 | 416,587,000 | $ 404,018,000 | ||||||||||
Contributed capital | $ 405,321,000 | $ 405,321,000 | 405,321,000 | 0 | 0 | ||||||||
Prudential Insurance | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Contributed capital | $ 200,000,000 | $ 5,000,000 | 0 | 0 | |||||||||
Dividend | $ 2,593,000,000 | 200,000,000 | $ 230,000,000 | $ 410,000,000 | $ 338,000,000 | ||||||||
Prudential Insurance and Prudential FInancial | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Life Insurance, Corporate or Bank Owned, amount | 2,873,000,000 | 3,367,000,000 | 2,873,000,000 | ||||||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 42,000,000 | 45,000,000 | 45,000,000 | ||||||||||
Maximum amount of mortality risk | 3,500,000 | ||||||||||||
Prudential Insurance | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Stock option program plan expense | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Deferred compensation program expense | 8,000,000 | 7,000,000 | 7,000,000 | ||||||||||
Pension plan expense | 23,000,000 | 22,000,000 | 20,000,000 | ||||||||||
Welfare plan expense | $ 28,000,000 | 26,000,000 | 28,000,000 | ||||||||||
Defined contribution plan, employer matching contribution, percent (up to) | 4.00% | ||||||||||||
Defined contribution plan, cost recognized | $ 10,000,000 | 8,000,000 | 9,000,000 | ||||||||||
Number of Corporate Owned Life Insurance policies sold | policy | 5 | ||||||||||||
Prudential Financial | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | ||||||||||||
Affiliated Entity | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accrued interested receivable related to long-tern notes receivable | 1,000,000 | $ 1,000,000 | 1,000,000 | ||||||||||
Revenues related to long-term notes receivable | 6,000,000 | 7,000,000 | 14,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | 2,200,000,000 | ||||||||||||
Interest expense related to loans payable | 13,000,000 | 51,000,000 | 52,000,000 | ||||||||||
Prepaid debt | $ 125,000,000 | ||||||||||||
Affiliated Entity | PAD | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Commissions and fees | 709,000,000 | 771,000,000 | 862,000,000 | ||||||||||
Affiliated Entity | ASTISI and Prudential Investments | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue administrative sharing agreement | 295,000,000 | 347,000,000 | 364,000,000 | ||||||||||
Affiliated Entity | Prudential Investments | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue administrative sharing agreement | 13,000,000 | 13,000,000 | 12,000,000 | ||||||||||
Affiliated Entity | PGIM | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net investment income | 15,000,000 | 17,000,000 | 15,000,000 | ||||||||||
Prudential Financial Joint Venture | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Other long-term investments | $ 146,000,000 | 100,000,000 | 146,000,000 | ||||||||||
Net investment income | $ 2,000,000 | $ 0 | $ 8,000,000 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 137,636 | $ 162,625 |
U.S. Dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 0 | 23,013 |
U.S. Dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.36% | |
U.S. Dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.77% | |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 137,636 | 139,069 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0.00% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% | |
Euro-denominated fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.30% | |
Total long-term notes receivable - affiliated | $ 0 | $ 543 |
Related Party Transactions (A95
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Prudential Insurance March 15 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | $ 91,972 | |
Book Value | 73,849 | |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | (11,780) | |
Realized Investment Gain/ (Loss), Net of Tax | 0 | |
Prudential Insurance June 15 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | 11,096 | |
Book Value | 10,480 | |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | (401) | |
Realized Investment Gain/ (Loss), Net of Tax | $ 0 | |
Prudential Insurance March 16 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | $ 88,783 | |
Book Value | 88,875 | |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | (60) | |
Realized Investment Gain/ (Loss), Net of Tax | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 1,384,000 |
Prudential Financial Loan issued 12/15/2011 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 11,000 |
Interest Rates | 3.61% | |
Prudential Financial Loan issued 12/16/2011 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 11,000 |
Interest Rates | 3.61% | |
Prudential Financial Loan issued 11/15/2013 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 9,000 |
Interest Rates | 2.24% | |
Prudential Financial Loan issued 11/15/2013 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 23,000 |
Interest Rates | 3.19% | |
Prudential Insurance Loan issued 12/6/2013 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 120,000 |
Interest Rates | 2.60% | |
Prudential Insurance Loan issued 12/6/2013 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 130,000 |
Interest Rates | 4.39% | |
Prudential Insurance Loan issued 12/6/2013 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 250,000 |
Interest Rates | 3.64% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 30,000 |
Interest Rates | 1.89% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 40,000 |
Interest Rates | 3.95% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 20,000 |
Interest Rates | 2.80% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 50,000 |
Interest Rates | 3.95% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 50,000 |
Interest Rates | 2.80% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 100,000 |
Interest Rates | 3.47% | |
Prudential Insurance Loan issued 9/25/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 100,000 |
Interest Rates | 3.95% | |
Prudential Financial Loan issued 12/15/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 5,000 |
Interest Rates | 2.57% | |
Prudential Financial Loan issued 12/15/2014 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 23,000 |
Interest Rates | 3.14% | |
Prudential Financial Loan issued 6/15/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 66,000 |
Interest Rates | 3.52% | |
Prudential Financial Loan issued 6/15/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 6,000 |
Interest Rates | 2.86% | |
Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 158,000 |
Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | 0 | 132,000 |
Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | 0 | 26,000 |
Prudential Financial Loan issued 12/16/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 5,000 |
Interest Rates | 2.85% | |
Prudential Financial Loan issued 12/16/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 1,000 |
Interest Rates | 2.85% | |
Prudential Financial Loan issued 12/16/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 18,000 |
Interest Rates | 3.37% | |
Minimum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.09% | |
Minimum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.40% | |
Minimum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.40% | |
Maximum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.63% | |
Maximum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.93% | |
Maximum | Prudential Financial Loan issued 9/21/2015 | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.93% |
Quarterly Results of Operatio97
Quarterly Results of Operations (Unaudited) (Results of Operations)(Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | ||||||||||||
Total revenues | $ 47,874 | $ 231,010 | $ 140,925 | $ 791,393 | $ 662,173 | $ 762,424 | $ 601,620 | $ 833,689 | $ 932,318 | $ 1,211,202 | $ 2,859,906 | $ 3,090,284 |
Total benefits and expenses | 132,262 | 182,006 | (588,114) | 1,163,700 | 337,301 | 920,714 | 365,827 | 738,702 | 575,586 | 889,854 | 2,362,544 | 2,173,547 |
Income (loss) from operations before income taxes | (84,388) | 49,004 | 729,039 | (372,307) | 324,872 | (158,290) | 235,793 | 94,987 | 356,732 | 321,348 | 497,362 | 916,737 |
Net income (loss) | $ (85,465) | $ 84,897 | $ 723,984 | $ (328,199) | $ 348,194 | $ (136,506) | $ 214,381 | $ 81,934 | $ 395,785 | $ 395,217 | $ 508,003 | $ 779,668 |
Revision to Prior Year Inform98
Revision to Prior Year Information (Consolidated Statement of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Deferred policy acquisition costs | $ 1,341,093 | $ 5,129,931 | $ 5,081,938 | $ 5,045,025 |
Reinsurance recoverables | 28,674,226 | 22,691,491 | ||
TOTAL ASSETS | 155,665,990 | 148,807,633 | ||
LIABILITIES | ||||
Policyholders’ account balances | 17,204,824 | |||
Future policy benefits | 15,198,755 | |||
Income taxes | 97,400 | 138,639 | ||
TOTAL LIABILITIES | 153,169,187 | 144,325,208 | ||
EQUITY | ||||
Retained earnings | 1,437,266 | 3,635,147 | ||
TOTAL EQUITY | 2,496,803 | 4,482,425 | ||
TOTAL LIABILITIES AND EQUITY | $ 155,665,990 | 148,807,633 | ||
As Previously Reported | ||||
ASSETS | ||||
Deferred policy acquisition costs | 5,111,373 | |||
Reinsurance recoverables | 22,546,361 | |||
TOTAL ASSETS | 148,643,945 | |||
LIABILITIES | ||||
Policyholders’ account balances | 17,164,705 | |||
Future policy benefits | 15,031,390 | |||
Income taxes | 154,043 | |||
TOTAL LIABILITIES | 144,133,128 | |||
EQUITY | ||||
Retained earnings | 3,663,539 | |||
TOTAL EQUITY | 4,510,817 | |||
TOTAL LIABILITIES AND EQUITY | 148,643,945 | |||
Revision | ||||
ASSETS | ||||
Deferred policy acquisition costs | 18,558 | |||
Reinsurance recoverables | 145,130 | |||
TOTAL ASSETS | 163,688 | |||
LIABILITIES | ||||
Policyholders’ account balances | 40,119 | |||
Future policy benefits | 167,365 | |||
Income taxes | (15,404) | |||
TOTAL LIABILITIES | 192,080 | |||
EQUITY | ||||
Retained earnings | (28,392) | |||
TOTAL EQUITY | (28,392) | |||
TOTAL LIABILITIES AND EQUITY | $ 163,688 |
Revision to Prior Year Inform99
Revision to Prior Year Information (Consolidated Statements of Financial Operations and Comprehensive Income) (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | ||||||||||||
Policy charges and fee income | $ 58,931 | $ 526,562 | $ 585,493 | $ 787,195 | $ 2,156,387 | $ 2,071,039 | ||||||
TOTAL REVENUES | $ 47,874 | $ 231,010 | 140,925 | 791,393 | $ 662,173 | $ 762,424 | $ 601,620 | $ 833,689 | 932,318 | 1,211,202 | 2,859,906 | 3,090,284 |
BENEFITS AND EXPENSES | ||||||||||||
Policyholders’ benefits | (472,610) | 100,730 | (371,880) | (260,200) | 299,150 | 353,697 | ||||||
Amortization of deferred policy acquisition costs | (10,342) | 639,586 | 629,245 | 628,101 | 659,169 | 431,812 | ||||||
TOTAL BENEFITS AND EXPENSES | 132,262 | 182,006 | (588,114) | 1,163,700 | 337,301 | 920,714 | 365,827 | 738,702 | 575,586 | 889,854 | 2,362,544 | 2,173,547 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (84,388) | 49,004 | 729,039 | (372,307) | 324,872 | (158,290) | 235,793 | 94,987 | 356,732 | 321,348 | 497,362 | 916,737 |
Income tax expense (benefit) | 5,055 | (44,108) | (39,053) | (73,869) | (10,641) | 137,069 | ||||||
NET INCOME (LOSS) | $ (85,465) | $ 84,897 | 723,984 | (328,199) | $ 348,194 | $ (136,506) | $ 214,381 | $ 81,934 | 395,785 | 395,217 | 508,003 | 779,668 |
COMPREHENSIVE INCOME (LOSS) | 784,869 | (212,872) | 571,996 | $ 401,387 | 394,117 | 901,713 | ||||||
As Previously Reported | ||||||||||||
REVENUES | ||||||||||||
Policy charges and fee income | 41,848 | 527,407 | 569,255 | 2,159,428 | 2,074,852 | |||||||
TOTAL REVENUES | 123,842 | 792,238 | 916,080 | 2,862,947 | 3,094,097 | |||||||
BENEFITS AND EXPENSES | ||||||||||||
Policyholders’ benefits | (430,437) | 98,528 | (331,909) | 291,185 | 343,714 | |||||||
Amortization of deferred policy acquisition costs | (29,866) | 640,552 | 610,687 | 662,644 | 436,169 | |||||||
TOTAL BENEFITS AND EXPENSES | (565,465) | 1,162,464 | 596,999 | 2,358,054 | 2,167,921 | |||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 689,307 | (370,226) | 319,081 | 504,893 | 926,176 | |||||||
Income tax expense (benefit) | (5,499) | (44,095) | (49,594) | (8,005) | 140,373 | |||||||
NET INCOME (LOSS) | 694,806 | (326,131) | 368,675 | 512,898 | 785,803 | |||||||
COMPREHENSIVE INCOME (LOSS) | 755,691 | (210,804) | 544,886 | 399,012 | 907,848 | |||||||
Revision | ||||||||||||
REVENUES | ||||||||||||
Policy charges and fee income | 17,083 | (845) | 16,238 | (3,041) | (3,813) | |||||||
TOTAL REVENUES | 17,083 | (845) | 16,238 | (3,041) | (3,813) | |||||||
BENEFITS AND EXPENSES | ||||||||||||
Policyholders’ benefits | (42,173) | 2,202 | (39,971) | 7,965 | 9,983 | |||||||
Amortization of deferred policy acquisition costs | 19,524 | (966) | 18,558 | (3,475) | (4,357) | |||||||
TOTAL BENEFITS AND EXPENSES | (22,649) | 1,236 | (21,413) | 4,490 | 5,626 | |||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 39,732 | (2,081) | 37,651 | (7,531) | (9,439) | |||||||
Income tax expense (benefit) | 10,554 | (13) | 10,541 | (2,636) | (3,304) | |||||||
NET INCOME (LOSS) | 29,178 | (2,068) | 27,110 | (4,895) | (6,135) | |||||||
COMPREHENSIVE INCOME (LOSS) | $ 29,178 | $ (2,068) | $ 27,110 | $ (4,895) | $ (6,135) |
Revision to Prior Year Infor100
Revision to Prior Year Information (Consolidated Statements of Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive income (loss): | ||||||||||||
Net income (loss) | $ (85,465) | $ 84,897 | $ 723,984 | $ (328,199) | $ 348,194 | $ (136,506) | $ 214,381 | $ 81,934 | $ 395,785 | $ 395,217 | $ 508,003 | $ 779,668 |
As Previously Reported | ||||||||||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | 694,806 | (326,131) | 368,675 | 512,898 | 785,803 | |||||||
Revision | ||||||||||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | 29,178 | (2,068) | 27,110 | (4,895) | (6,135) | |||||||
Retained Earnings | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 1,437,413 | 3,306,948 | 3,635,147 | 3,557,144 | 3,635,147 | 3,635,147 | 3,557,144 | 3,525,476 | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (328,199) | 395,785 | 395,217 | 508,003 | 779,668 | |||||||
Ending Balance | 1,437,266 | 1,437,413 | 3,306,948 | 3,635,147 | 1,437,413 | 1,437,266 | 3,635,147 | 3,557,144 | ||||
Retained Earnings | As Previously Reported | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 1,438,695 | 3,337,408 | 3,663,539 | 3,580,641 | 3,663,539 | 3,663,539 | 3,580,641 | 3,542,838 | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (326,131) | 368,675 | 512,898 | 785,803 | ||||||||
Ending Balance | 1,438,695 | 3,337,408 | 3,663,539 | 1,438,695 | 3,663,539 | 3,580,641 | ||||||
Retained Earnings | Revision | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | (1,282) | (30,460) | (28,392) | (23,497) | (28,392) | (28,392) | (23,497) | (17,362) | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (2,068) | 27,110 | (4,895) | (6,135) | ||||||||
Ending Balance | (1,282) | (30,460) | (28,392) | (1,282) | (28,392) | (23,497) | ||||||
Total Equity | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 2,666,992 | 4,274,493 | 4,482,425 | 4,530,488 | 4,482,425 | 4,482,425 | 4,530,488 | 4,388,859 | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (328,199) | 395,785 | 395,217 | 508,003 | 779,668 | |||||||
Total comprehensive income (loss) | (212,872) | 571,996 | 401,387 | 394,117 | 901,713 | |||||||
Ending Balance | $ 2,496,803 | 2,666,992 | 4,274,493 | 4,482,425 | 2,666,992 | 2,496,803 | 4,482,425 | 4,530,488 | ||||
Total Equity | As Previously Reported | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 2,668,274 | 4,304,953 | 4,510,817 | 4,553,985 | 4,510,817 | 4,510,817 | 4,553,985 | 4,406,221 | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (326,131) | 368,675 | 512,898 | 785,803 | ||||||||
Total comprehensive income (loss) | (210,804) | 544,886 | 399,012 | 907,848 | ||||||||
Ending Balance | 2,668,274 | 4,304,953 | 4,510,817 | 2,668,274 | 4,510,817 | 4,553,985 | ||||||
Total Equity | Revision | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | $ (1,282) | (30,460) | (28,392) | $ (23,497) | (28,392) | $ (28,392) | (23,497) | (17,362) | ||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | (2,068) | 27,110 | (4,895) | (6,135) | ||||||||
Total comprehensive income (loss) | (2,068) | 27,110 | (4,895) | (6,135) | ||||||||
Ending Balance | $ (1,282) | $ (30,460) | $ (28,392) | $ (1,282) | $ (28,392) | $ (23,497) |
Revision to Prior Year Infor101
Revision to Prior Year Information (Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income (loss) | $ (85,465) | $ 84,897 | $ 723,984 | $ (328,199) | $ 348,194 | $ (136,506) | $ 214,381 | $ 81,934 | $ 395,785 | $ 395,217 | $ 508,003 | $ 779,668 | |
Policy charges and fee income | (5,005) | 62,525 | $ 87,591 | 113,501 | (8,770) | (72,375) | |||||||
Future policy benefits | 424,904 | 504,822 | 1,816,665 | 1,534,228 | 1,440,542 | ||||||||
Reinsurance recoverables | (359,878) | (325,559) | (1,308,146) | (1,764,242) | (1,559,165) | (1,330,796) | |||||||
Deferred policy acquisition costs | 488,313 | 426,713 | 311,273 | 43,168 | (194,907) | ||||||||
Income taxes | (125,578) | (67,990) | (45,147) | (36,879) | 65,900 | ||||||||
Other, net | (260,195) | (191,566) | (110,850) | 76,374 | 26,716 | ||||||||
Cash flows from (used in) operating activities | 333,424 | (186,450) | (209,869) | (6,919) | 1,142,929 | 1,077,692 | |||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||
Fixed maturities, available-for-sale | 838,298 | 970,834 | 1,371,000 | 813,721 | 907,665 | ||||||||
Cash flows from (used in) investing activities | (497,625) | (755,911) | (1,101,442) | (838,054) | (853,544) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Policyholders’ account deposits | 3,125,848 | 4,289,697 | 3,839,784 | 2,966,388 | |||||||||
Ceded policyholders’ account deposits | (1,123,608) | (1,688,037) | (2,430,570) | (1,109,311) | (672,242) | ||||||||
Ceded policyholders’ account withdrawals | 522,712 | 745,624 | 1,072,151 | 50,016 | 46,690 | ||||||||
Contributed capital | 405,321 | 405,321 | 405,321 | 0 | 0 | ||||||||
Cash flows from (used in) financing activities | 640,601 | 674,271 | $ 834,232 | (149,541) | (316,439) | ||||||||
As Previously Reported | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income (loss) | 694,806 | (326,131) | 368,675 | 512,898 | 785,803 | ||||||||
Policy charges and fee income | (5,850) | 78,763 | 103,829 | (11,811) | (76,188) | ||||||||
Future policy benefits | 416,396 | 659,730 | 1,503,445 | 1,402,458 | |||||||||
Reinsurance recoverables | (353,572) | (326,993) | (1,369,986) | (1,536,347) | (1,302,695) | ||||||||
Deferred policy acquisition costs | 489,279 | 408,155 | 46,643 | (190,550) | |||||||||
Income taxes | (125,565) | (78,531) | (34,243) | 69,204 | |||||||||
Other, net | (181,862) | 19,979 | |||||||||||
Cash flows from (used in) operating activities | 333,424 | 5,386 | (43,926) | 1,142,929 | 1,077,692 | ||||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||
Fixed maturities, available-for-sale | 798,298 | 930,834 | |||||||||||
Cash flows from (used in) investing activities | (537,625) | (795,911) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Policyholders’ account deposits | 3,085,729 | ||||||||||||
Ceded policyholders’ account deposits | (584,464) | (877,874) | |||||||||||
Ceded policyholders’ account withdrawals | 32,053 | 49,958 | |||||||||||
Contributed capital | 205,000 | 205,000 | |||||||||||
Cash flows from (used in) financing activities | 488,765 | 548,328 | |||||||||||
Revision | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income (loss) | $ 29,178 | (2,068) | 27,110 | (4,895) | (6,135) | ||||||||
Policy charges and fee income | 845 | (16,238) | (16,238) | 3,041 | 3,813 | ||||||||
Future policy benefits | 8,508 | (154,908) | 30,783 | 38,084 | |||||||||
Reinsurance recoverables | (6,306) | 1,434 | 61,840 | (22,818) | (28,101) | ||||||||
Deferred policy acquisition costs | (966) | 18,558 | (3,475) | (4,357) | |||||||||
Income taxes | (13) | 10,541 | (2,636) | (3,304) | |||||||||
Other, net | (78,333) | (211,545) | |||||||||||
Cash flows from (used in) operating activities | $ 0 | (191,836) | (165,943) | $ 0 | $ 0 | ||||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||
Fixed maturities, available-for-sale | 40,000 | 40,000 | |||||||||||
Cash flows from (used in) investing activities | 40,000 | 40,000 | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Policyholders’ account deposits | 40,119 | ||||||||||||
Ceded policyholders’ account deposits | (539,144) | (810,163) | |||||||||||
Ceded policyholders’ account withdrawals | 490,659 | 695,666 | |||||||||||
Contributed capital | 200,321 | 200,321 | |||||||||||
Cash flows from (used in) financing activities | $ 151,836 | $ 125,943 |