Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity [Line Items] | ' |
Document Type | '10-K |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q4 |
Entity Registrant Name | 'PRUCO LIFE INSURANCE COMPANY |
Entity Central Index Key | '0000777917 |
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 | 'Yes |
Entity Voluntary Filers | 'No |
Entity Public Float | $0 |
Entity Current Reporting Status | 'Yes |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Fixed maturities, available for sale, at fair value (amortized cost: 2013 $5,538,933; 2012 $5,662,255) | $5,651,401 | $6,135,765 | ||
Equity Securites, available for sale, at fair value (cost: 2013 $567; 2012 $3,119) | 771 | 4,327 | ||
Trading account assets, at fair value | 18,892 | 11,376 | ||
Policy loans | 1,086,772 | 1,079,714 | ||
Short-term investments | 16,002 | 112,337 | ||
Commercial mortgage and other loans | 1,532,165 | 1,463,977 | ||
Other long-term investments | 226,704 | 284,489 | ||
Total investments | 8,532,707 | 9,091,985 | ||
Cash and cash equivalents | 307,243 | 412,109 | ||
Deferred policy acquisition costs | 5,034,299 | 3,679,061 | ||
Accrued investment income | 89,465 | 90,653 | ||
Reinsurance recoverables | 13,657,859 | 7,032,175 | ||
Receivables from parents and affiliates | 262,362 | 183,044 | ||
Deferred sales inducements | 989,889 | 787,891 | ||
Income taxes | 0 | 9,910 | ||
Other assets | 45,983 | 47,453 | ||
Separate account assets | 100,402,349 | [1] | 80,887,276 | [1] |
TOTAL ASSETS | 129,322,156 | 102,221,557 | ||
LIABILITIES | ' | ' | ||
Policyholders' account balances | 14,303,330 | 8,557,077 | ||
Future policy benefits and other policyholder liabilities | 6,916,669 | 6,696,813 | ||
Cash collateral for loaned securities | 84,867 | 48,068 | ||
Income taxes | 186,015 | 0 | ||
Short-term debt | 274,900 | 272,000 | ||
Long-term debt | 1,592,000 | 1,511,000 | ||
Payables to parent and affiliates | 191,065 | 6,694 | ||
Other liabilities | 964,740 | 726,737 | ||
Separate account liabilities | 100,402,349 | 80,887,276 | ||
TOTAL LIABILITIES | 124,915,935 | 98,705,665 | ||
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 | 804,237 | 818,303 | ||
Retained earnings | 3,542,838 | 2,427,628 | ||
Accumulated other comprehensive income | 56,646 | 267,461 | ||
TOTAL EQUITY | 4,406,221 | 3,515,892 | ||
TOTAL LIABILITIES AND EQUITY | $129,322,156 | $102,221,557 | ||
[1] | (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fixed maturities, available for sale, amortized cost | $5,538,933 | $5,662,255 |
Available For Sale Equity Securities Amortized Cost Basis | ' | $3,119 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES | ' | ' | ' |
Premiums | $56,851 | $68,136 | $72,787 |
Policy charges and fee income | 1,880,925 | 1,534,763 | 1,109,495 |
Net investment income | 419,011 | 417,510 | 439,950 |
Asset administration fees | 332,288 | 286,302 | 203,508 |
Other income | 20,149 | 74,013 | 43,861 |
Realized investment gains (losses), net: | ' | ' | ' |
Other-than-temporary impairments on fixed maturity securities | -12,268 | -34,926 | -71,348 |
Other-than-temporary impairments on fixed maturity securities transferred to Other Comprehensive Income | 7,827 | 28,692 | 62,379 |
Other realized investment gains (losses), net | -9,009 | -150,213 | 271,052 |
Total realized investment gains (losses), net | -13,450 | -156,447 | 262,083 |
TOTAL REVENUES | 2,695,774 | 2,224,277 | 2,131,684 |
BENEFITS AND EXPENSES | ' | ' | ' |
Policyholders' benefits | 178,924 | 353,494 | 312,211 |
Interest credited to policyholders' account balances | 45,737 | 165,992 | 502,585 |
Amortization of deferred policy acquisition costs | -524,311 | -38,969 | 973,203 |
General, administrative and other expenses | 890,794 | 878,383 | 697,884 |
TOTAL BENEFITS AND EXPENSES | 591,144 | 1,358,900 | 2,485,883 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 2,104,630 | 865,377 | -354,199 |
IncomeTaxExpenseBenefitContinuingOperationsAbstract | ' | ' | ' |
Current Income Tax Expense (Benefit) | 250,601 | 216,654 | 42,474 |
Deferred Income Tax Expense (Benefit) | 315,819 | -35,614 | -263,930 |
Total income tax expense (benefit) on continuing operations | 566,420 | 181,040 | -221,456 |
NET INCOME | 1,538,210 | 684,337 | -132,743 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' | ' |
Foreign Currency Translation Adjustments | 224 | 192 | -178 |
Unrealized Investment gains (losses) for the period | -290,636 | 105,543 | 122,946 |
Reclassification adjustment for (gains) losses included in net income | -33,920 | -22,644 | -75,822 |
Net Unrealized investment gains (losses) | -324,556 | 82,899 | 47,124 |
Other Comprehensive income (loss), before tax | -324,332 | 83,091 | 46,946 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' |
Foreign Currency translation adjustments, taxes | 78 | 67 | -62 |
Net unrealized invesment gains, taxes | -113,595 | 29,191 | 16,479 |
Other comprehensive income, tax expense (benefit) | -113,517 | 29,258 | 16,417 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | -210,815 | 53,833 | 30,529 |
COMPREHENSIVE INCOME | $1,327,395 | $738,170 | ($102,214) |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Total Equity |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | ' | $2,500 | $792,226 | $1,902,185 | $183,099 | $2,880,010 |
Contributed capital | ' | 0 | 3,543 | 0 | 0 | 3,543 |
Affiliated asset transfers | ' | 0 | 40,252 | -26,151 | 0 | 14,101 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Net income | -132,743 | 0 | 0 | -132,743 | 0 | -132,743 |
Other comprehensive income (loss), net of tax | 30,529 | 0 | 0 | 0 | 30,529 | 30,529 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | -102,214 |
Balance at Dec. 31, 2011 | ' | 2,500 | 836,021 | 1,743,291 | 213,628 | 2,795,440 |
Contributed capital | ' | 0 | -17,718 | 0 | 0 | -17,718 |
Affiliated asset transfers | ' | 0 | 0 | 0 | 0 | 0 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Net income | 684,337 | 0 | 0 | 684,337 | 0 | 684,337 |
Other comprehensive income (loss), net of tax | 53,833 | 0 | 0 | 0 | 53,833 | 53,833 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | 738,170 |
Balance at Dec. 31, 2012 | ' | 2,500 | 818,303 | 2,427,628 | 267,461 | 3,515,892 |
Contributed capital | ' | 0 | -14,066 | 0 | 0 | -14,066 |
Dividend To Parent | ' | 0 | 0 | -423,000 | 0 | -423,000 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Net income | 1,538,210 | 0 | 0 | 1,538,210 | 0 | 1,538,210 |
Other comprehensive income (loss), net of tax | -210,815 | 0 | 0 | 0 | -210,815 | -210,815 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | 1,327,395 |
Balance at Dec. 31, 2013 | ' | $2,500 | $804,237 | $3,542,838 | $56,646 | $4,406,221 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $1,538,210 | $684,337 | ($132,743) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Policy charges and fee income | -113,831 | -163,640 | -127,683 |
Interest credited to policyholders' account balances | 45,737 | 165,992 | 502,585 |
Realized investment (gains) losses, net | 13,450 | 156,447 | -262,083 |
Amortization and other non-cash items | -43,677 | -56,322 | -68,098 |
Change in: | ' | ' | ' |
Future policy benefits and other insurance liabilities | 1,185,681 | 1,337,078 | 870,582 |
Reinsurance recoverables | -1,211,151 | -1,117,361 | -798,474 |
Accrued investment income | -4,286 | -6,372 | 6,785 |
Receivables from parents and affiliates | -88,490 | 5,571 | 46,595 |
Payables to parent and affiliates | -23,110 | -855 | 48,064 |
Deferred policy acquisition costs | -1,346,386 | -1,210,728 | -123,100 |
Income taxes payable | 341,965 | 81,763 | -412,217 |
Deferred Sales Inducements | -20,871 | -199,005 | -289,642 |
Other, net | -1,855 | 7,961 | 156,698 |
Cash flows from (used in) operating activities | 317,606 | -313,424 | -678,859 |
Proceeds from the sale/maturity/prepayment of: | ' | ' | ' |
Fixed maturities, available for sale | 1,570,701 | 1,019,890 | 1,069,922 |
Short-term investments | 662,351 | 1,424,173 | 1,167,039 |
Policy loans | 130,655 | 131,511 | 122,721 |
Proceeds from policy loans ceded | 9,156 | 7,951 | 1,861 |
Commercial mortgage and other loans | 207,340 | 149,621 | 82,098 |
Other long-term investments | 12,933 | 11,557 | 10,612 |
Equity securities, available for sale | 13,596 | 9,862 | 10,355 |
Trading account assets, at fair value | 7,524 | 14,325 | 5,174 |
Payments for the purchase/origination of: | ' | ' | ' |
Fixed maturities, available for sale | -1,934,430 | -1,646,619 | -1,135,456 |
Short-term investments | -566,100 | -1,253,361 | -1,203,342 |
Policy loans | -101,357 | -129,521 | -102,230 |
Payments from policy loans ceded | -9,687 | -16,320 | -5,538 |
Commercial mortgage and other loans | -367,857 | -239,086 | -204,951 |
Other long-term investments | -84,859 | -75,664 | -70,641 |
Equity securities, available for sale | -10,574 | -5,024 | -8,528 |
Trading account assets, at fair value | -9,478 | 0 | 0 |
Notes receivable from parent and affiliates, net | 4,641 | 5,714 | 6,842 |
Other | 160 | -1,885 | 2,757 |
Cash flows used in investing activities | -464,223 | -576,138 | -243,951 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Policyholders' account deposits | 3,091,818 | 4,154,752 | 3,044,607 |
Ceded policyholders' account deposits | -413,181 | -312,528 | -117,916 |
Policyholders' account withdrawals | -2,399,425 | -3,178,207 | -2,555,035 |
Ceded policyholders' account withdrawals | 47,114 | 31,419 | 8,824 |
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 36,799 | -146,074 | 114,612 |
Dividend to parent | 423,000 | 0 | 0 |
Net increase in short term borrowing | -155,100 | 29,000 | 129,000 |
Capital asset transfer activity | -3,374 | -20,900 | 3,543 |
Drafts outstanding | 239,000 | 453,000 | 277,000 |
Net change in long-term borrowing | 21,100 | 3,786 | -59,401 |
Change in reinsurance recoverables | 0 | 0 | 0 |
Cash flows from (used in) financing activities | 41,751 | 1,014,248 | 845,234 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -104,866 | 124,686 | -77,576 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 412,109 | 287,423 | 364,999 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 307,243 | 412,109 | 287,423 |
Income Taxes Paid | -250,087 | 134,603 | 166,606 |
Interest Paid | $40,209 | $43,717 | $33,104 |
Significant_Noncash_Transactio
Significant Noncash Transaction | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Statements of Cash Flows | ' |
Signinicant Noncash Transaction | ' |
Significant Non Cash Transactions | |
Cash Flows from Investing Activities for the twelve months ended December 31, 2013 excludes $56 million of increases in fixed maturities, available for sale and $132 million of decreases in fixed maturities, available for sale related to the amendments of the reinsurance agreements between the Company and UPARC, an affiliate, and the Company, and PAR U, an affiliate in the first quarter of 2013. See Note 13 to the Consolidated Financial Statements for more information on related party transactions. | |
Cash Flows from Investing Activities for the twelve months ended December 31, 2013 excludes $192 million of increases in fixed maturities, available for sale, and commercial mortgages and $704 million of decreases in fixed maturities, available for sale, and commercial mortgages related to the amendments of the reinsurance agreements between the Company and UPARC, an affiliate, and the Company, and PAR U, an affiliate, in the third quarter of 2013. See Note 13 to the Consolidated Financial Statements for more information on related party transactions. | |
Cash Flows from Investing Activities for the twelve months ended December 31, 2013 excludes $4,951 million of increases in fixed maturities, available for sale, commercial mortgages, short-term investments, and trading account assets related to the coinsurance of Guaranteed Universal Life (“GUL”) business assumed from Prudential Insurance in connection with the acquisition of the Hartford Life Business. Cash Flows from Investing Activities for the twelve months ended December 31, 2013 excludes $4,952 million of decreases in fixed maturities, available for sale, commercial mortgages, short-term investments, and trading account assets related to the subsequent retrocession of this GUL business assumed from Prudential Insurance to PAR U, an affiliate. See Note 13 to the Consolidated Financial Statements for more information on related party transactions. | |
Cash Flows from Financing Activities for the twelve months ended December 31, 2013 excludes $12 million of decreases in Contributed/Distributed capital - parent/child asset transfers related to the coinsurance of GUL business assumed from Prudential Insurance in connection with the acquisition of the Hartford Life Business. | |
Cash Flows from Investing Activities for the twelve months ended December 31, 2012 excludes $202 million of decreases in fixed maturities, available for sale and commercial mortgages related to the coinsurance transaction between the Company's wholly owned subsidiary PLNJ and PAR U, in the third quarter of 2012. See Note 13 to the Consolidated Financial Statements for more information on related party transactions. | |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Business and Basis of Presentation [Abstract] | ' |
Business and Basis of Presentation | ' |
1. BUSINESS AND BASIS OF PRESENTATION | |
Pruco Life Insurance Company, is a wholly owned subsidiary of The Prudential Insurance Company of America, or “Prudential Insurance,” which in turn is an indirect wholly owned subsidiary of Prudential Financial, Inc., or “Prudential Financial.” Pruco Life Insurance Company was organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities, primarily through affiliated and unaffiliated distributors, in the District of Columbia, Guam, and in all States except New York. | |
The Company has three subsidiaries, including one wholly owned insurance subsidiary, Pruco Life Insurance Company of New Jersey, or “PLNJ,” and two subsidiaries formed in 2009 for the purpose of holding certain commercial loan investments. Pruco Life Insurance Company and its subsidiaries are together referred to as the Company and all financial information is 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. | |
Acquisition of The Hartford's Individual Life Insurance Business | |
On January 2, 2013, Prudential Insurance acquired the individual life insurance business of The Hartford Financial Services Group, Inc. (“The Hartford”) through a reinsurance transaction. Under the agreement, Prudential Insurance paid The Hartford cash consideration of $615 million, primarily in the form of a ceding commission to provide reinsurance for approximately 700,000 life insurance policies with net retained face amount in force of approximately $141 billion. This acquisition increases our scale in the U.S. individual life insurance market, particularly universal life products, and provides complimentary distribution opportunities through expanded wirehouse and bank distribution channels. | |
In connection with this transaction, Prudential Insurance retroceded to the Company, the portion of the assumed business that is classified as guaranteed universal life insurance (“GUL”) with account values of approximately $4 billion as of January 2, 2013. The Company has reinsured more than 79,000 GUL policies with a net retained face amount in force of approximately $30 billion. The Company then retroceded all of the GUL policies to an affiliated captive reinsurance company. Collectively, these transactions do not have a material impact on equity, as determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), or the statutory capital and surplus of the Company. | |
Basis of Presentation | |
The Consolidated Financial Statements have been prepared in accordance with 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 deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. | |
Reclassifications | |
Certain amounts in prior periods have been reclassified to conform to the current period presentation. | |
Significant_Accounting_Policie
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies and Pronouncements | ' |
2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS | |
Investments and Investment Related Liabilities | |
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. Investments and investment-related liabilities also include securities repurchase and resale agreements and securities lending transactions. The accounting policies related to each are as follows: | |
Fixed maturities are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest income, as well as the related amortization of premium and accretion of discount is included in “Net investment income” under the effective yield method. 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 other-than-temporary impairments 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 security 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 other than temporary impairment 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, and the effect on deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”), future policy benefits, and policyholder account balances that would result from the realization of unrealized gains and losses, 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 “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” | |
Equity securities, available-for-sale, at fair value, are 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 deferred policy acquisition costs, DSI, future policy benefits, and policyholder 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 recognized in “Net investment income” when earned. | |
Commercial mortgage and other loans consist of commercial mortgage loans, agricultural 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, as well as prepayment fees and the amortization of the related premiums or discounts, related to commercial mortgage and other loans, are 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 three categories. Loans are placed on “early warning” status in cases where, based on the Company's analysis of the loan's collateral, the financial situation of the borrower or tenants or other market factors, it is believed a loss of principal or interest could occur. 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 smaller loan-to-value ratio indicates a greater 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 larger debt service coverage ratio indicates a greater 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 loan portfolio, 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, 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 portfolio segments considers 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 each quarter 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 to 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. | |
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, or 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. 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. Securities to be repurchased are the same, or substantially the same, as those sold. 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 and administrative 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. 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 and administrative expenses"). | |
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 either accounted for using the equity method of accounting or under 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. 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 investment 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 other-than-temporary impairment), 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, 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 sale 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 other-than-temporary impairments recognized in earnings. Realized investment gains and losses are also generated from prepayment premiums received on private fixed maturity securities, 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 other-than-temporary impairments 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 other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (a) has the intent to sell the debt security or (b) 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 other-than-temporary impairment is recognized. | |
When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment 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 other-than-temporary impairment 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 other-than-temporary impairments 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 other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. | |
For debt securities, the split between the amount of an other-than-temporary impairment recognized in other comprehensive income and the net amount recognized in earnings 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 other-than-temporary impairment, 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 deferred policy acquisition costs, DSI, certain future policy benefits, policyholder 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 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 vary with and that are directly related 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 include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. See below under "Adoption of New Accounting Pronouncements" for a discussion of the authoritative guidance adopted effective January 1, 2012, regarding which costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. 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. | |
Deferred policy acquisition costs related to interest sensitive and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts (at least 30 years) 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 the 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. In addition to the gross profit components previously mentioned, the impact of the embedded derivatives associated with certain optional living benefit features of the Company's variable annuity contracts and related hedging activities are also included in actual gross profits used as the basis for calculating current period amortization and, in certain instances, in management's estimate of total gross profits used for setting the amortization rate, regardless of which affiliated legal entity this activity occurs. 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 13. 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 "Amortization of deferred policy acquisition costs" 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. | |
Deferred Sales Inducements | |
The Company offered various types of sales inducements to contractholders 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, 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. See Note 7 for additional information regarding sales inducements. | |
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, fixed maturities, real estate related investments, real estate mortgage loans and short term investments and derivative instruments. The assets of each account are legally segregated and are generally 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 customers, 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 7 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, certain restricted assets, 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, derivatives, and payables resulting from purchases of securities that had not yet been settled at the balance sheet date. | |
Reinsurance recoverables | |
Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13. | |
Future Policy Benefits | |
The Company's liability for future policy benefits is comprised of liabilities for guarantee benefits related to certain nontraditional long-duration life and annuity contracts, which are discussed more fully in Note 7. These reserves 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 10. | |
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 the Company's experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality 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 to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. | |
Policyholders' Account Balances | |
The Company's liability for policyholders' account balances primarily 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 general accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the general account balance. These policyholders' account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. | |
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 interest-sensitive 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 inforce. Benefits are recorded as an expense when they are incurred. Benefits and expenses for these products also include amortization of DAC. A liability for future policy benefits is recorded when premiums are recognized using the net premium method. | |
Revenues for variable deferred annuity contracts consist of charges against contractholder account values for mortality and expense risks, administration fees, surrender charges and an annual maintenance fee per contract. Revenues for mortality and expense risk charges and administration fees are recognized as assessed against the contractholder. Surrender charge revenue is recognized when the surrender charge is assessed against the contractholder at the time of surrender. Benefits and expenses for these products also include amortization of DAC and DSI. Benefit reserves for the variable investment options on annuity contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Revenues for variable immediate annuity and supplementary contracts with life contingencies consist of certain charges against contractholder account values including mortality and expense risks and administration fees. These charges and fees are recognized as revenue when assessed against the contractholder. Benefit reserves for variable immediate annuity contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Revenues for fixed immediate annuity and fixed supplementary contracts with and without life contingencies consist of net investment income. In addition, revenues for fixed immediate annuity contracts with life contingencies also consist of single premium payments recognized as annuity considerations when received. Benefit reserves for these contracts are based on applicable actuarial standards with assumed interest rates that vary by contract year. Reserves for contracts without life contingencies are included in "Policyholders' account balances" while reserves for contracts with life contingencies are included in "future policy benefits and other policyholder liabilities." Assumed interest rates ranged from 0.00% to 14.75% at December 31, 2013, and from 1.00% to 14.75% at December 31, 2012. | |
Revenues for variable life insurance contracts consist of charges against contractholder account values or separate accounts for expense charges, administration fees, cost of insurance charges, taxes and surrender charges. Certain contracts also include charges against premium to pay state premium taxes. All of these charges are recognized as revenue when assessed against the contractholder. 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 also include amortization of DAC. Benefit reserves for variable life insurance contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Certain individual annuity contracts provide the holder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount, and certain individual life contracts provide no lapse guarantees. These benefits are accounted for as insurance contracts and are discussed in further detail in Note 7. The Company also provides contracts with certain living benefits which are considered embedded derivatives. These contracts are discussed in further detail in Note 7. | |
Amounts received as payment for interest-sensitive or variable contracts 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. | |
Premiums, benefits and expenses are stated net of reinsurance ceded to other companies. | |
Asset Administration Fees | |
The Company receives asset administration fee income from contractholders' account balances invested in The Prudential Series Funds or, "PSF," 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 Funds (see Note 13). 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 | |
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 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 11, 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 trading account assets, at fair value” or “Other long-term investments,” or as liabilities, within “Other liabilities,” 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 income statement 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 income statement 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 has reinsurance agreements to transfer the risk related to certain of these benefit features to an affiliate, Pruco Reinsurance Ltd. (“Pruco Re”). 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 other policyholder liabilities” and “Reinsurance recoverables” or “Other liabilities,” respectively. Changes in the fair value are determined using valuation models as described in Note 10, 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,” and changes in “Realized investment gains (losses), net.” In the third quarter of 2011, the Company amended its reinsurance agreement resulting in a recapture of a portion of this business (See Note 13) effective July 1, 2011. Pursuant to the recapture amendment, the settlement of the recapture premium occurred subsequent to the effective date of the recapture. As a result, the recapture premium was 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 UPARC. This settlement feature was accounted for as a derivative. | |
Concurrent with the recapture discussed above, the Company entered into a new coinsurance agreement with an affiliate, PAR U effective July 1, 2011. The settlement of the initial coinsurance premium also occurred subsequent to the effective date of the coinsurance agreement and contains a settlement provision similar to the recapture premium, discussed above. The adjustment to the initial coinsurance premium was equal to the earned interest and changes in market values from the effective date through settlement date related to fixed maturity securities from both an asset portfolio within the Company, as well as an asset portfolio within UPARC. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
In the third quarter of 2012, the Company's wholly owned subsidiary, PLNJ, entered a new coinsurance agreement with an affiliate, PAR U effective July 1, 2012. The settlement of the initial coinsurance premium occurred subsequent to the effective date of the coinsurance agreement. As a result, the settlement was treated as if settled on the effective date and adjusted for the time elapsed between the effective date and the settlement date. This adjustment to the initial coinsurance premium was equal to the earned interest and changes in market values from the effective date through settlement date related to fixed maturity securities from an asset portfolio within PLNJ. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
In the third quarter of 2013, the Company further amended its reinsurance agreement with UPARC resulting in the recapture of a portion of this business (See Note 13 for additional information about this agreement) effective July 1, 2013. Pursuant to the recapture amendment, the settlement of the recapture premium occurred subsequent to the effective date of the recapture. As a result, the recapture premium was treated as if settled on the effective date and adjusted for the time elapsed between the effective date and the settlement date. This adjustment was equal to the interest earned from the effective date through the settlement date related to fixed maturity securities and commercial mortgages held by UPARC. This settlement feature was accounted for as a derivative. | |
Concurrent with the recapture discussed above, the Company, excluding its subsidiaries, amended its coinsurance agreement with PAR U effective July 1, 2013. The settlement of the initial coinsurance premium also occurred subsequent to the effective date and the amendment contains a settlement provision similar to the recapture premium discussed above. The adjustment to the coinsurance premium was equal to the interest earned from the effective date through the settlement date related to fixed maturity securities and commercial mortgages from both an asset portfolio within the Company, as well as an asset portfolio within UPARC. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
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. 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. 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 13 for additional information regarding short-term and long-term debt. | |
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 income statement. 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 return 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 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 may consider 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. | |
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 9 for additional information regarding income taxes. | |
Adoption of New Accounting Pronouncements | |
In December 2013, the Financial Accounting Standards Board (“FASB”) issued updated guidance establishing a single definition of a public entity for use in financial accounting and reporting guidance. This new guidance is effective for all current and future reporting periods and did not have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
In July 2013, the FASB issued new guidance regarding derivatives. The guidance permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting, in addition to the United States Treasury rate and London Inter-Bank Offered Rate (“LIBOR”). The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance is effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013 and should be applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In February 2013, the FASB issued updated guidance regarding the presentation of comprehensive income. Under the guidance, an entity is required to separately present information about significant items reclassified out of accumulated other comprehensive income by component as well as changes in accumulated other comprehensive income balances by component in either the financial statements or the notes to the financial statements. The guidance does not change the items that are reported in other comprehensive income, does not change when an item of other comprehensive income must be reclassified to net income, and does not amend any existing requirements for reporting net income or other comprehensive income. The guidance is effective for the first interim or annual reporting period beginning after December 15, 2012 and should be applied prospectively. The disclosures required by this guidance are included in Note 3. | |
In December 2011 and January 2013, the FASB issued updated guidance regarding the disclosure of recognized derivative instruments (including bifurcated embedded derivatives), repurchase agreements and securities borrowing/lending transactions that are offset in the statement of financial position or are subject to an enforceable master netting arrangement or similar agreement (irrespective of whether they are offset in the statement of financial position). This new guidance requires an entity to disclose information on both a gross and net basis about instruments and transactions within the scope of this guidance. This new guidance is effective for interim or annual reporting periods beginning on or after January 1, 2013, and should be applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 11. | |
Effective January 1, 2012, the Company adopted retrospectively new authoritative guidance to address diversity in practice regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. Under the amended guidance acquisition costs are to include only those costs that are directly related to the acquisition or renewal of insurance contracts by applying a model similar to the accounting for loan origination costs. An entity may defer incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits, and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. Prior period financial information presented in these financial statements has been adjusted to reflect the retrospective adoption of the amended guidance. The impact of the retrospective adoption of this guidance on previously reported December 31, 2011 and December 31, 2010 balances was a reduction in “Deferred policy acquisition costs” of $672 million and $684 million, an increase in “Policyholders' Account Balances” of $3 million and $3 million, and a reduction in “Total equity” of $469 million and $446 million, respectively. As of December 31, 2011, “Other Liabilities” increased $48 million and “Reinsurance Recoverables” increased $2 million related to the impact of this guidance on the 2011 coinsurance agreement with PAR U (see Note 13), The impact of the retrospective adoption of this guidance on previously reported income from continuing operations before income taxes for the years ended December 31, 2011, 2010 and 2009 was a decrease of $34 million, $125 million and $53 million, respectively. The lower level of costs now qualifying for deferral will be only partially offset by a lower level of amortization of “Deferred policy acquisition costs,” and, as such, will initially result in lower earnings in future periods primarily reflecting lower deferrals of wholesaler costs. While the adoption of this amended guidance changes the timing of when certain costs are reflected in the Company's results of operations, it has no effect on the total acquisition costs to be recognized over time and has no impact on the Company's cash flows. | |
In June 2011, the FASB issued updated guidance regarding the presentation of comprehensive income. The updated guidance eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. Under the updated guidance, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The updated guidance does not change the items that are reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The Company opted to present the total of comprehensive income, the components of net income, and the components of other comprehensive income in two separate but consecutive statements. The Consolidated Financial Statements included herein reflect the adoption of this updated guidance. | |
In May 2011, the FASB issued updated guidance regarding the fair value measurements and disclosure requirements. The updated guidance clarifies existing guidance related to the application of fair value measurement methods and requires expanded disclosures. This new guidance is effective for the first interim or annual reporting period beginning after December 15, 2011, and should be applied prospectively. The expanded disclosures required by this guidance are included in Note 10. Adoption of this guidance did not have a significant effect on the Company's consolidated financial position or results of operations. | |
In April 2011, the FASB issued updated guidance regarding the assessment of effective control for repurchase agreements. This new guidance is effective for the first interim or annual reporting period beginning on or after December 15, 2011, and should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. The Company's adoption of this guidance did not have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In April 2011, the FASB issued updated guidance clarifying which restructurings constitute troubled debt restructurings. It is intended to assist creditors in their evaluation of whether conditions exist that constitute a troubled debt restructuring. This new guidance is effective for the first interim or annual reporting period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual reporting period of adoption. The Company's adoption of this guidance in the third quarter of 2011 did not have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
Future Adoption of New Accounting Pronouncements | |
In July 2013, the FASB issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013, and should be applied prospectively, with early application permitted. This guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||
Investments | ' | ||||||||||||||||||||
3. 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: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Other-than- | |||||||||||||||||||||
Gross | Gross | temporary | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Impairments | |||||||||||||||||
Cost | Gains | Losses | Value | in AOCI (3) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. | |||||||||||||||||||||
government authorities and agencies | $ | 89,497 | $ | 5,910 | $ | 1,882 | $ | 93,525 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 83,807 | 1,518 | 6,374 | 78,951 | - | ||||||||||||||||
Foreign government bonds | 20,357 | 3,640 | - | 23,997 | - | ||||||||||||||||
Public utilities | 796,747 | 32,303 | 29,281 | 799,769 | - | ||||||||||||||||
Redeemable preferred stock | 681 | 126 | - | 807 | - | ||||||||||||||||
All other corporate securities | 3,661,419 | 168,717 | 89,343 | 3,740,793 | -252 | ||||||||||||||||
Asset-backed securities (1) | 216,081 | 8,687 | 2,677 | 222,091 | -7,783 | ||||||||||||||||
Commercial mortgage-backed securities | 510,255 | 20,316 | 8,563 | 522,008 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 160,089 | 10,870 | 1,499 | 169,460 | -973 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,538,933 | $ | 252,087 | $ | 139,619 | $ | 5,651,401 | $ | -9,008 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | 131 | $ | 29 | $ | - | $ | 160 | |||||||||||||
Industrial, miscellaneous & other | 4 | 12 | - | 16 | |||||||||||||||||
Mutual funds | 91 | 3 | 3 | 91 | |||||||||||||||||
Non-redeemable preferred stocks | 341 | 163 | - | 504 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 567 | $ | 207 | $ | 3 | $ | 771 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. | |||||||||||||||||||||
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. | |||||||||||||||||||||
Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $14 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. | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Other-than- | |||||||||||||||||||||
Gross | Gross | temporary | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Impairments | |||||||||||||||||
Cost | Gains | Losses | Value | in AOCI (3) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. | |||||||||||||||||||||
government authorities and agencies | $ | 172,541 | $ | 15,088 | $ | 10 | $ | 187,619 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 79,166 | 6,516 | 485 | 85,197 | - | ||||||||||||||||
Foreign government bonds | 21,709 | 5,802 | - | 27,511 | - | ||||||||||||||||
Public utilities | 620,654 | 68,512 | 1,334 | 687,832 | - | ||||||||||||||||
Redeemable preferred stock | 6,400 | 360 | - | 6,760 | - | ||||||||||||||||
Corporate securities | 3,601,052 | 309,470 | 6,480 | 3,904,042 | -344 | ||||||||||||||||
Asset-backed securities (1) | 360,258 | 19,362 | 6,146 | 373,474 | -21,330 | ||||||||||||||||
Commercial mortgage-backed securities | 446,558 | 42,932 | 69 | 489,421 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 353,917 | 20,228 | 236 | 373,909 | -1,095 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,662,255 | $ | 488,270 | $ | 14,760 | $ | 6,135,765 | $ | -22,769 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Industrial, miscellaneous & other (4) | 1,566 | 1,118 | - | 2,684 | |||||||||||||||||
Mutual funds (4) | 157 | 6 | 9 | 154 | |||||||||||||||||
Non-redeemable preferred stocks | 1,396 | 93 | - | 1,489 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 3,119 | $ | 1,217 | $ | 9 | $ | 4,327 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. | |||||||||||||||||||||
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. | |||||||||||||||||||||
Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $22 million of net unrealized gains or losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. | |||||||||||||||||||||
Prior period has been reclassified to conform to the current period presentation. | |||||||||||||||||||||
The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2013, are as follows: | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||
Cost | Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due in one year or less | $ | 264,190 | $ | 268,309 | |||||||||||||||||
Due after one year through five years | 1,110,508 | 1,200,139 | |||||||||||||||||||
Due after five years through ten years | 1,422,256 | 1,463,339 | |||||||||||||||||||
Due after ten years | 1,855,554 | 1,806,055 | |||||||||||||||||||
Asset-backed securities | 216,081 | 222,091 | |||||||||||||||||||
Commercial mortgage-backed securities | 510,255 | 522,008 | |||||||||||||||||||
Residential mortgage-backed securities | 160,089 | 169,460 | |||||||||||||||||||
Total | $ | 5,538,933 | $ | 5,651,401 | |||||||||||||||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed, and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. | |||||||||||||||||||||
The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 816,125 | $ | 116,493 | $ | 218,200 | |||||||||||||||
Proceeds from maturities/repayments | 760,433 | 903,272 | 836,724 | ||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 60,261 | 31,720 | 83,600 | ||||||||||||||||||
Gross investment losses from sales and maturities | -22,380 | -1,171 | -411 | ||||||||||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 13,603 | $ | 9,862 | $ | 6,397 | |||||||||||||||
Proceeds from maturities/repayments | 3 | - | 3,958 | ||||||||||||||||||
Gross investment gains from sales | 1,337 | 1,027 | 3,857 | ||||||||||||||||||
Gross investment losses from sales | -791 | -529 | 0 | ||||||||||||||||||
Fixed maturity and equity security impairments | |||||||||||||||||||||
Net writedowns for other-than-temporary impairment losses | |||||||||||||||||||||
on fixed maturities recognized in earnings (1) | $ | -4,441 | $ | -6,236 | $ | -8,969 | |||||||||||||||
Writedowns for impairments on equity securities | -67 | -2,168 | -2,255 | ||||||||||||||||||
_____________ | |||||||||||||||||||||
Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. | |||||||||||||||||||||
As discussed in Note 2, a portion of certain other-than-temporary impairment (“OTTI”) losses on fixed maturity securities are recognized in “Other comprehensive income (loss)” (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following 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. | |||||||||||||||||||||
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 | |||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 27,702 | $ | 31,507 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -14,330 | -4,126 | |||||||||||||||||||
Credit loss impairments previously recognized on securities impaired to fair value | |||||||||||||||||||||
during the period | - | -3,240 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | 31 | 15 | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | 798 | 2,266 | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 915 | 2,430 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -456 | -1,150 | |||||||||||||||||||
Balance, end of period | $ | 14,660 | $ | 27,702 | |||||||||||||||||
Trading Account Assets | |||||||||||||||||||||
The following table sets forth the composition of “Trading account assets” as of the dates indicated: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 14,118 | $ | 16,162 | $ | 7,647 | $ | 8,099 | |||||||||||||
Equity securities (1) | 1,388 | 2,730 | 3,083 | 3,277 | |||||||||||||||||
Total trading account assets | $ | 15,506 | $ | 18,892 | $ | 10,730 | $ | 11,376 | |||||||||||||
_____________ | |||||||||||||||||||||
Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities. | |||||||||||||||||||||
The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Other income” was $2.7 million, ($0.5) million and ($0.5) million during the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
Commercial Mortgage and Other Loans | |||||||||||||||||||||
The Company's commercial mortgage and other loans are comprised as follows, as of the dates indicated: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||||||
(in thousands) | Total | (in thousands) | Total | ||||||||||||||||||
Commercial mortgage and other loans by property type: | |||||||||||||||||||||
Retail | $ | 467,059 | 30.5 | % | $ | 461,939 | 31.4 | % | |||||||||||||
Apartments/Multi-Family | 298,365 | 19.5 | 239,623 | 16.3 | |||||||||||||||||
Industrial | 272,239 | 17.7 | 273,900 | 18.6 | |||||||||||||||||
Office | 195,499 | 12.8 | 237,566 | 16.2 | |||||||||||||||||
Other | 102,294 | 6.6 | 89,548 | 6.1 | |||||||||||||||||
Hospitality | 90,085 | 5.9 | 50,052 | 3.4 | |||||||||||||||||
Total commercial mortgage loans | 1,425,541 | 93 | 1,352,628 | 92 | |||||||||||||||||
Agricultural property loans | 107,118 | 7 | 117,377 | 8 | |||||||||||||||||
Total commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,532,659 | 100 | % | 1,470,005 | 100 | % | |||||||||||||||
Valuation allowance | -8,904 | -6,028 | |||||||||||||||||||
Total net commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,523,755 | 1,463,977 | |||||||||||||||||||
Other Loans | |||||||||||||||||||||
Uncollateralized loans | 8,410 | - | |||||||||||||||||||
Total other loans | 8,410 | - | |||||||||||||||||||
Total commercial mortgage and other loans | $ | 1,532,165 | $ | 1,463,977 | |||||||||||||||||
The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States and other countries with the largest concentrations in California (20%), New Jersey (11%), and Texas (10%) at December 31, 2013. | |||||||||||||||||||||
Activity in the allowance for losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for losses, beginning of year | $ | 6,028 | $ | 12,813 | $ | 21,428 | |||||||||||||||
Addition to / (release of) allowance of losses | 2,876 | -1,551 | -8,615 | ||||||||||||||||||
Charge-offs, net of recoveries | - | -5,234 | - | ||||||||||||||||||
Allowance for losses, end of year (1) | $ | 8,904 | $ | 6,028 | $ | 12,813 | |||||||||||||||
_____________ | |||||||||||||||||||||
Agricultural loans represent $0.3 million, $0.4 million and $0.4 million of the ending allowance at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
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: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||
Ending balance: individually evaluated for impairment (1) | $ | 3,084 | $ | 372 | |||||||||||||||||
Ending balance: collectively evaluated for impairment (2) | 5,820 | 5,656 | |||||||||||||||||||
Total ending balance | $ | 8,904 | $ | 6,028 | |||||||||||||||||
Recorded Investment: (3) | |||||||||||||||||||||
Ending balance gross of reserves: individually evaluated for impairment (1) | $ | 6,392 | $ | 6,415 | |||||||||||||||||
Ending balance gross of reserves: collectively evaluated for impairment (2) | 1,534,677 | 1,463,590 | |||||||||||||||||||
Total ending balance, gross of reserves | $ | 1,541,069 | $ | 1,470,005 | |||||||||||||||||
_____________ | |||||||||||||||||||||
There were no agricultural or uncollateralized loans individually evaluated for impairments at December 31, 2013 and 2012. | |||||||||||||||||||||
Agricultural loans collectively evaluated for impairment had a recorded investment of $107 million and $117 million and a related allowance of $0.3 million and $0.4 million at December 31, 2013 and 2012, respectively. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million and $0 million at December 31, 2013 and 2012, respectively, and no related allowance for both periods. | |||||||||||||||||||||
Recorded investment reflects the balance sheet carrying value gross of related allowance. | |||||||||||||||||||||
Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management's specific review of probable loan losses and the related allowance for losses, as of both December 31, 2013 and 2012, had a recorded investment and unpaid principal balance of $6.4 million and related allowance of $3.1 million and $0.4 million, respectively, primarily related to other property types. At both December 31, 2013 and 2012, the Company held no impaired agricultural or uncollateralized loans. Net investment income recognized on these loans totaled $0 million and $0.5 million for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
Impaired commercial mortgage and other loans with no allowance for losses are loans in which the fair value of the collateral or the net present value of the loans' expected future cash flows equals or exceeds the recorded investment. The Company had no such loans at December 31, 2013 and 2012. See Note 2 for information regarding the Company's accounting policies for non-performing loans. | |||||||||||||||||||||
As described in Note 2 loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage and other loans. As of December 31, 2013 and 2012, 97% of the $1.5 billion recorded investment and 96% of the $1.5 billion recorded investment, respectively, had a loan-to-value ratio of less than 80%. As of both December 31, 2013 and 2012, 96% of the recorded investment had a debt service coverage ratio of 1.0X or greater. As of December 31, 2013 and 2012, approximately 4% or $61 million and 4% or $59 million, respectively, of the recorded investment had a loan-to-value ratio greater than 100% or debt service coverage ratio less than 1.0X, reflecting loans where the mortgage amount exceeds the collateral value or where current debt payments are greater than income from property operations; none of which related to agricultural or uncollateralized loans. | |||||||||||||||||||||
As of both December 31, 2013 and 2012, $1.4 billion of commercial mortgage and other loans were in current status and $6.4 million were classified as past due, primarily related to other property types. As of both December 31, 2013 and 2012, $6.4 million of commercial mortgage and other loans, were in non-accrual status based upon the recorded investment gross of allowance for credit losses, primarily related to other property types. Nonaccrual loans are those on which the accrual of interest has been suspended after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability and loans for which a loan specific reserve has been established. See Note 2 for further discussion regarding nonaccrual status loans. The Company defines current in its aging of past due commercial mortgage and agricultural loans as less than 30 days past due. | |||||||||||||||||||||
For the periods ended December 31, 2013 and 2012, there were no commercial mortgage and other loans sold or acquired. | |||||||||||||||||||||
The Company's commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2013 and 2012, the Company had no significant commitments to fund to borrowers that have been involved in troubled debt restructuring. For the years ended December 31, 2013 and 2012, there were no adjusted pre-modification outstanding recorded investments or post-modification outstanding recorded investments. No payment defaults on commercial mortgage and other loans were modified as a troubled debt restructuring within the 12 months preceding the respective period. See Note 2 for additional information related 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: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Company’s investment in Separate accounts | $ | 29,739 | $ | 28,584 | |||||||||||||||||
Joint ventures and limited partnerships | 196,538 | 136,977 | |||||||||||||||||||
Derivatives | 427 | 118,928 | |||||||||||||||||||
Total other long-term investments | $ | 226,704 | $ | 284,489 | |||||||||||||||||
Net Investment Income | |||||||||||||||||||||
Net investment income for the years ended December 31, was from the following sources: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 278,747 | $ | 270,790 | $ | 300,850 | |||||||||||||||
Equity securities, available-for-sale | 1 | 52 | 227 | ||||||||||||||||||
Trading account assets | 657 | 981 | 1,582 | ||||||||||||||||||
Commercial mortgage and other loans | 84,006 | 84,232 | 81,282 | ||||||||||||||||||
Policy loans | 59,287 | 58,007 | 56,716 | ||||||||||||||||||
Short-term investments and cash equivalents | 654 | 1,003 | 1,052 | ||||||||||||||||||
Other long-term investments | 15,023 | 21,224 | 16,421 | ||||||||||||||||||
Gross investment income | 438,375 | 436,289 | 458,130 | ||||||||||||||||||
Less: investment expenses | -19,364 | -18,779 | -18,180 | ||||||||||||||||||
Net investment income | $ | 419,011 | $ | 417,510 | $ | 439,950 | |||||||||||||||
There were no non-income producing assets included in fixed maturities as of December 31, 2013. Non-income producing assets represent investments that have not produced income for the preceding twelve months. | |||||||||||||||||||||
Realized Investment Gains (Losses), Net | |||||||||||||||||||||
Realized investment gains (losses), net, for the years ended December 31, were from the following sources: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 33,440 | $ | 24,314 | $ | 74,220 | |||||||||||||||
Equity securities | 480 | -1,670 | 1,602 | ||||||||||||||||||
Commercial mortgage and other loans | 5,494 | 7,307 | 8,615 | ||||||||||||||||||
Joint ventures and limited partnerships | -83 | - | -265 | ||||||||||||||||||
Derivatives | -52,799 | -186,425 | 177,855 | ||||||||||||||||||
Other | 18 | 27 | 56 | ||||||||||||||||||
Realized investment gains (losses), net | $ | -13,450 | $ | -156,447 | $ | 262,083 | |||||||||||||||
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, are as follows: | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses) (1) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, December 31, 2010 | $ | 249 | $ | 182,850 | $ | 183,099 | |||||||||||||||
Change in component during period (2) | -116 | 30,645 | 30,529 | ||||||||||||||||||
Balance, December 31, 2011 | $ | 133 | $ | 213,495 | $ | 213,628 | |||||||||||||||
Change in component during period (2) | 124 | 53,709 | 53,833 | ||||||||||||||||||
Balance, December 31, 2012 | $ | 257 | $ | 267,204 | $ | 267,461 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | 224 | -290,636 | -290,412 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -33,920 | -33,920 | ||||||||||||||||||
Income tax benefit (expense) | -78 | 113,595 | 113,517 | ||||||||||||||||||
Balance, December 31, 2013 | $ | 403 | $ | 56,243 | $ | 56,646 | |||||||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges of ($5) million, $0 million and $3 million as of December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Net of taxes. | |||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Amounts reclassified from AOCI (1)(2): | |||||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||||
Cash flow hedges - Currency/Interest rate (3) | $ | 329 | $ | 1,754 | $ | -108 | |||||||||||||||
Net unrealized investment gains (losses) on available-for-sale securities (4) | 33,591 | 20,890 | 75,930 | ||||||||||||||||||
Total net unrealized investment gains (losses) | 33,920 | 22,644 | 75,822 | ||||||||||||||||||
Total reclassifications for the period | $ | 33,920 | $ | 22,644 | $ | 75,822 | |||||||||||||||
_____________ | |||||||||||||||||||||
All amounts are shown before tax. | |||||||||||||||||||||
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. | |||||||||||||||||||||
See Note 11 for additional information on cash flow hedges. | |||||||||||||||||||||
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 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 Policy Holder 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, 2010 | $ | -24,704 | $ | 13,813 | $ | -7,103 | $ | 6,271 | $ | -11,723 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | -3,779 | - | - | 1,322 | -2,457 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 9,623 | - | - | -3,369 | 6,254 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | 212 | - | - | -75 | 137 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -3,626 | - | 1,268 | -2,358 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 4,167 | -1,459 | 2,708 | ||||||||||||||||
Balance, December 31, 2011 | $ | -18,648 | $ | 10,187 | $ | -2,936 | $ | 3,958 | $ | -7,439 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 11,444 | - | - | -4,005 | 7,439 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 6,755 | - | - | -2,364 | 4,391 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | -169 | - | - | 59 | -110 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -9,892 | - | 3,462 | -6,430 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 3,499 | -1,225 | 2,274 | ||||||||||||||||
Balance, December 31, 2012 | $ | -618 | $ | 295 | $ | 563 | $ | -115 | $ | 125 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 1,053 | - | - | -369 | 684 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 4,114 | - | - | -1,440 | 2,674 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | -51 | - | - | 18 | -33 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -3,619 | - | 1,266 | -2,353 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 1,256 | -439 | 817 | ||||||||||||||||
Balance, December 31, 2013 | $ | 4,498 | $ | -3,324 | $ | 1,819 | $ | -1,079 | $ | 1,914 | |||||||||||
_____________ | |||||||||||||||||||||
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. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
All Other Net Unrealized Investment Gains and Losses in AOCI | |||||||||||||||||||||
Net Unrealized Gains (Losses) on Investments (1) | Deferred Policy Acquisition Costs and Other Costs | Future Policy Benefits and Policy Holder 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, 2010 | $ | 400,404 | $ | -194,158 | $ | 92,690 | $ | -104,367 | $ | 194,569 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 128,890 | - | - | -45,090 | 83,800 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -85,445 | - | - | 29,905 | -55,540 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | -212 | - | - | 73 | -139 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | 14,638 | - | -5,124 | 9,514 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -17,345 | 6,070 | -11,275 | ||||||||||||||||
Balance, December 31, 2011 | $ | 443,637 | $ | -179,520 | $ | 75,345 | $ | -118,533 | $ | 220,929 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 90,693 | - | - | -31,738 | 58,955 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -29,399 | - | - | 10,290 | -19,109 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | 169 | - | - | -59 | 110 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -40,688 | - | 14,065 | -26,623 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 50,488 | -17,671 | 32,817 | ||||||||||||||||
Balance, December 31, 2012 | $ | 505,100 | $ | -220,208 | $ | 125,833 | $ | -143,646 | $ | 267,079 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | -343,964 | - | - | 120,388 | -223,576 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -38,034 | - | - | 13,312 | -24,722 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | 51 | - | - | -18 | 33 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | 177,178 | - | -62,012 | 115,166 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -122,540 | 42,889 | -79,651 | ||||||||||||||||
Balance, December 31, 2013 | $ | 123,153 | $ | -43,030 | $ | 3,293 | $ | -29,087 | $ | 54,329 | |||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges. See Note 11 for information on cash flow hedges. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
The table below presents net unrealized gains (losses) on investments by asset class at December 31: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities on which an OTTI loss has been recognized | $ | 4,498 | $ | -618 | $ | -18,648 | |||||||||||||||
Fixed maturity securities, available-for-sale - all other | 107,970 | 474,128 | 411,366 | ||||||||||||||||||
Equity securities, available-for-sale | 204 | 1,208 | -1,359 | ||||||||||||||||||
Derivatives designated as cash flow hedges (1) | -4,701 | 147 | 2,523 | ||||||||||||||||||
Other investments | 19,680 | 29,617 | 31,107 | ||||||||||||||||||
Net unrealized gains (losses) on investments | $ | 127,651 | $ | 504,482 | $ | 424,989 | |||||||||||||||
_____________ | |||||||||||||||||||||
See Note 11 for more information on cash flow hedges. | |||||||||||||||||||||
Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities | |||||||||||||||||||||
The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
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 | $ | 24,123 | $ | 1,882 | $ | - | $ | - | $ | 24,123 | $ | 1,882 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | 51,216 | 5,904 | 2,496 | 470 | 53,712 | 6,374 | |||||||||||||||
Foreign government bonds | - | - | - | - | - | - | |||||||||||||||
Corporate securities | 1,596,468 | 101,780 | 97,731 | 16,844 | 1,694,199 | 118,624 | |||||||||||||||
Asset-backed securities | 93,021 | 1,418 | 11,782 | 1,259 | 104,803 | 2,677 | |||||||||||||||
Commercial mortgage-backed securities | 116,371 | 6,706 | 19,605 | 1,857 | 135,976 | 8,563 | |||||||||||||||
Residential mortgage-backed securities | 42,121 | 1,472 | 3,225 | 27 | 45,346 | 1,499 | |||||||||||||||
Total | $ | 1,923,320 | $ | 119,162 | $ | 134,839 | $ | 20,457 | $ | 2,058,159 | $ | 139,619 | |||||||||
Equity securities, available-for-sale | $ | 44 | $ | 3 | $ | - | $ | - | $ | 44 | $ | 3 | |||||||||
31-Dec-12 | |||||||||||||||||||||
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 | $ | 4,338 | $ | 10 | $ | - | $ | - | $ | 4,338 | $ | 10 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | 21,128 | 485 | - | - | 21,128 | 485 | |||||||||||||||
Foreign government bonds | - | - | - | - | - | - | |||||||||||||||
Corporate securities | 290,127 | 7,070 | 18,221 | 744 | 308,348 | 7,814 | |||||||||||||||
Asset-backed securities | 44,821 | 76 | 24,997 | 6,070 | 69,818 | 6,146 | |||||||||||||||
Commercial mortgage-backed securities | 12,549 | 60 | 521 | 9 | 13,070 | 69 | |||||||||||||||
Residential mortgage-backed securities | 20,276 | 164 | 4,347 | 72 | 24,623 | 236 | |||||||||||||||
Total | $ | 393,239 | $ | 7,865 | $ | 48,086 | $ | 6,895 | $ | 441,325 | $ | 14,760 | |||||||||
Equity securities, available-for-sale | $ | 54 | $ | 9 | $ | - | $ | - | $ | 54 | $ | 9 | |||||||||
The gross unrealized losses, related to fixed maturities at December 31, 2013 and 2012 are composed of $136 million and $9 million, respectively, related to high or highest quality securities based on NAIC or equivalent rating and $4 million and $6 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2013, $5 million of the gross unrealized losses represented declines in value of greater than 20%, all of which had been in that position for less than six months, as compared to $6 million at December 31, 2012 that represented declines in value of greater than 20%, $0 million of which had been in that position for less than six months. At December 31, 2013, the $20 million of gross unrealized losses of twelve months or more were concentrated in commercial mortgage-backed securities and the consumer non-cyclical, utility, and basic industry sectors of the Company's corporate securities. At December 31, 2012, the $7 million of gross unrealized losses of twelve months or more were concentrated in asset-backed securities and the consumer cyclical and consumer non-cyclical 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 other-than-temporary impairments for these securities was not warranted at December 31, 2013 and 2012. These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to credit spread widening and increased liquidity discounts. At December 31, 2013, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the anticipated recovery of its remaining amortized cost basis. | |||||||||||||||||||||
At December 31, 2013, none of the gross unrealized losses, related to equity securities, represented declines in value of greater than 20%. At December 31, 2012, less than $1 million of the gross unrealized losses, related to equity securities, represented declines in value of greater than 20%, none of which have been in that position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment for other-than-temporary impairments for these equity securities was not warranted at December 31, 2013 or 2012. | |||||||||||||||||||||
Securities Pledged 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. At December 31, the carrying value of investments pledged to third parties as reported in the Consolidated Statements of Financial Position included the following: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities, available for sale | $ | 81,849 | $ | 46,115 | |||||||||||||||||
Trading account assets | - | 187 | |||||||||||||||||||
Equity Securities | - | 9 | |||||||||||||||||||
Total securities pledged | $ | 81,849 | $ | 46,311 | |||||||||||||||||
As of December 31, 2013, the carrying amount of the associated liabilities supported by the pledged collateral was $85 million. Of this amount, $85 million was “Cash collateral for loaned securities.” There were no “Securities sold under agreements to repurchase.” As of December 31, 2012, the carrying amount of the associated liabilities supported by the pledged collateral was $48 million. Of this amount, $48 million was “Cash collateral for loaned securities.” There were no “Securities sold under agreements to repurchase.” | |||||||||||||||||||||
Fixed maturities of $4 million at both December 31, 2013 and 2012 were on deposit with governmental authorities or trustees as required by certain insurance laws. | |||||||||||||||||||||
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DeferredPolicyAcquisitionCostsDisclosures[Abstract] | ' | ||||||||||||
DeferredPolicyAcquisitionCostsTextBlock | ' | ||||||||||||
4. DEFERRED POLICY ACQUISITION COSTS | |||||||||||||
The balances of and changes in deferred policy acquisition costs as of and for the years ended December 31, are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 3,679,061 | $ | 2,545,600 | $ | 2,693,689 | |||||||
Capitalization of commissions, sales and issue expenses | 822,075 | 1,171,759 | 1,096,301 | ||||||||||
Amortization- Impact of assumption and experience unlocking and true-ups | -9,167 | 60,313 | -25,242 | ||||||||||
Amortization- All other | 533,478 | -21,345 | -947,961 | ||||||||||
Change in unrealized investment gains and losses | 167,880 | -53,651 | 9,973 | ||||||||||
Ceded DAC upon Coinsurance Treaty with PAR U and PURC (See Note 13) | -159,028 | -23,616 | -281,160 | ||||||||||
Balance, end of year | $ | 5,034,299 | $ | 3,679,061 | $ | 2,545,600 | |||||||
Deferred acquisition costs include reductions in capitalization and amortization related to reinsurance expense allowances resulting from the coinsurance treaties with PARCC, PAR TERM, PAR U and PURC, reductions for the initial balance transferred to PAR U and PURC at inception of the coinsurance agreements and the pass through of the GUL business related to the acquisition of The Hartford Life company assumed from Prudential Insurance and subsequently retroceded to PAR U as discussed in Note 13. | |||||||||||||
Capitalization balances related to reinsurance amounted to $285 million, $249 million, and $208 million in 2013, 2012, and 2011, respectively. Amortization balances related to reinsurance amounted to $89 million, $180 million and $70 million in 2013, 2012, and 2011, respectively. Reinsurance impacts to the change in unrealized gains/(losses) resulted in a decrease in the deferred acquisition cost asset of $161 million in 2013 and increased the deferred acquisition cost asset $44 million and $147 million in 2012 and 2011, respectively. | |||||||||||||
Policyholders_Liabilities
Policyholders' Liabilities | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
LiabilityForPolicyAndContractClaims[Abstract] | ' | ||||||||||
Liability For Policy And Contract Claims Disclosure [Text Block] | ' | ||||||||||
5. POLICYHOLDERS' LIABILITIES | |||||||||||
Future Policy Benefits | |||||||||||
Future policy benefits at December 31, are as follows: | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Life insurance – domestic | $ | 5,768,262 | $ | 3,804,994 | |||||||
Life insurance – Taiwan | 1,151,503 | 1,109,723 | |||||||||
Individual and group annuities | 320,451 | 338,505 | |||||||||
Policy claims and other contract liabilities | -323,547 | 1,443,591 | |||||||||
Total future policy benefits | $ | 6,916,669 | $ | 6,696,813 | |||||||
Life insurance liabilities include reserves for death benefits and other policy benefits. Individual and Group annuity liabilities include reserves for annuities that are in payout status. | |||||||||||
Future policy benefits for domestic and Taiwan individual non-participating traditional life insurance policies are generally equal to the aggregate of (1) the present value of future benefit payments and related expenses, less the present value of future net premiums, and (2) any premium deficiency reserves. Assumptions as to mortality and persistency are based on the Company's experience, and in certain instances, industry experience, when the basis of the reserve is established. Interest rates range from 2.50% to 8.25% for setting domestic insurance reserves and 6.18% to 7.43% for setting Taiwan reserves. | |||||||||||
Future policy benefits for individual and group annuities and supplementary contracts are generally equal to the aggregate of (1) the present value of expected future payments, and (2) any premium deficiency reserves. 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 present values range from 0.00% to 14.75%, with approximately 1.78% of the reserves based on an interest rate in excess of 8.00%. The interest rate used in the determination of group annuities reserves is 14.75%. | |||||||||||
Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company's experience. The interest rates used in the determination of the present values range from 0.39% to 5.01%. | |||||||||||
The Company's liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain nontraditional long-duration life and annuity contracts. Liabilities for guaranteed benefits accounted for as embedded derivatives are primarily in other contract liabilities. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 7 for additional information regarding liabilities for guaranteed benefits related to certain nontraditional long-duration contracts. | |||||||||||
Policyholders' Account Balances | |||||||||||
Policyholders' account balances at December 31, are as follows: | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Interest-sensitive life contracts | $ | 11,456,129 | $ | 5,327,169 | |||||||
Individual annuities | 1,624,523 | 1,736,810 | |||||||||
Guaranteed interest accounts | 450,738 | 820,502 | |||||||||
Other | 771,941 | 672,596 | |||||||||
Total policyholders’ account balances | $ | 14,303,330 | $ | 8,557,077 | |||||||
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 0.42% to 4.60% for interest-sensitive contracts. Interest crediting rates for individual annuities may range from 0.00% to 9.00% with 0.00% of policyholders' account balances with interest crediting rates in excess of 8.00%. Interest crediting rates for guaranteed interest accounts range from 1.00% to 6.00%. Interest crediting rates range from 0.50% to 8.00% for other. Included in interest-sensitive life contracts at December 31, 2013, are $4.7 billion GUL business assumed from Prudential Insurance in connection with the acquisition of the Hartford life business. | |||||||||||
Certain_Nontraditional_LongDur
Certain Nontraditional Long-Duration Contracts | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Disclosure Text Block [Abstract] | ' | |||||||||||||||||
LongDurationInsuranceContractsDisclosureTextBlock | ' | |||||||||||||||||
7 | ||||||||||||||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | ||||||||||||||||||
The Company issues traditional 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 both traditional variable annuities and certain variable contracts with guarantees 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.” | ||||||||||||||||||
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 or contractholder behavior used in the original pricing of these products. | ||||||||||||||||||
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, 2013 and 2012, the Company had the following guarantees associated with these contracts, by product and guarantee type: | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
In the Event of Death | At Annuitization/ Accumulation (1) | In the Event of Death | At Annuitization/ Accumulation (1) | |||||||||||||||
Variable Annuity Contracts | (in thousands) | |||||||||||||||||
Return of Net Deposits | ||||||||||||||||||
Account value | $ | 70,025,044 | $ | N/A | $ | 55,348,881 | $ | N/A | ||||||||||
Net amount at risk | 46,013 | N/A | $ | 144,758 | N/A | |||||||||||||
Average attained age of contractholders | 62 | N/A | 61 | N/A | ||||||||||||||
Minimum return or contract value | ||||||||||||||||||
Account value | $ | 20,498,033 | $ | 81,142,995 | $ | 17,627,105 | $ | 64,710,758 | ||||||||||
Net amount at risk | $ | 1,274,286 | $ | 1,085,030 | $ | 1,937,955 | $ | 2,177,244 | ||||||||||
Average attained age of contractholders | 67 | 62 | 66 | 61 | ||||||||||||||
Average period remaining until earliest expected annuitization | N/A | 0.09 years | N/A | 0.23 years | ||||||||||||||
(1) Includes income and withdrawal benefits as described herein | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
In the Event of Death | ||||||||||||||||||
Variable Life, Variable Universal Life and Universal Life Contracts | (in thousands) | |||||||||||||||||
No Lapse Guarantees | ||||||||||||||||||
Separate account value | $ | 2,958,551 | $ | 2,686,820 | ||||||||||||||
General account value | $ | 3,922,205 | $ | 2,922,481 | ||||||||||||||
Net amount at risk | $ | 80,432,427 | $ | 66,004,950 | ||||||||||||||
Average attained age of contractholders | 53 years | 52 years | ||||||||||||||||
Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Equity funds | $ | 55,455,438 | $ | 42,765,421 | ||||||||||||||
Bond funds | 29,937,112 | 24,280,753 | ||||||||||||||||
Money market funds | 3,301,910 | 3,618,360 | ||||||||||||||||
Total | $ | 88,694,460 | $ | 70,664,534 | ||||||||||||||
In addition to the above mentioned amounts invested in separate account investment options, $1.829 billion and $2.311 billion of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA feature, were invested in general account investment options in 2013 and 2012, respectively. For the years ended December 31, 2013, 2012 and 2011 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 Guaranteed 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 bifurcated 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 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. | ||||||||||||||||||
GMDB | GMIB | GMWB/GMIWB/GMAB | Total | |||||||||||||||
Variable Annuity | Variable Life, Variable Universal Life & Universal Life | Variable Annuity | ||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance as of December 31, 2010 | $ | 48,829 | $ | 161,107 | $ | 26,718 | $ | -452,823 | $ | -216,169 | ||||||||
Incurred guarantee benefits (1) | 87,111 | 66,082 | 7,120 | 1,365,810 | 1,526,123 | |||||||||||||
Paid guarantee benefits | -38,305 | -2,280 | -828 | - | -41,413 | |||||||||||||
Balance as of December 31, 2011 | $ | 97,635 | $ | 224,909 | $ | 33,010 | $ | 912,987 | $ | 1,268,541 | ||||||||
Incurred guarantee benefits (1) | 145,022 | 94,007 | 21,916 | 504,903 | 765,849 | |||||||||||||
Paid guarantee benefits | -40,590 | -13,929 | -540 | - | -55,059 | |||||||||||||
Balance as of December 31, 2012 | $ | 202,067 | $ | 304,987 | $ | 54,386 | $ | 1,417,890 | $ | 1,979,330 | ||||||||
Incurred guarantee benefits (1) (2) | 28,033 | 101,484 | -30,882 | -1,766,290 | -1,667,655 | |||||||||||||
Paid guarantee benefits | -26,306 | -3,090 | -1,148 | - | -30,544 | |||||||||||||
Other (2) (3) | 4,060 | 1,340,869 | 98 | - | 1,345,027 | |||||||||||||
Balance as of December 31, 2013 | $ | 207,854 | $ | 1,744,250 | $ | 22,454 | $ | -348,400 | $ | 1,626,158 | ||||||||
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. | ||||||||||||||||||
Incurred benefits include GMDB liabilities assumed related to the Hartford GUL business, which was subsequently 100% retroceded to PAR Universal. | ||||||||||||||||||
Includes $1.5 billion related to the initial GMDB liability assumed related to the Hartford business, which was subsequently 100% retroceded to PAR Universal. | ||||||||||||||||||
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 calculated at each valuation date such that, the present value of excess benefits 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. | ||||||||||||||||||
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 assessed 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 assessed 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 the Company no longer offers) 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 assessed rider fees attributable to the embedded derivative feature. | ||||||||||||||||||
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 deferred policy acquisition costs. These deferred sales inducements are included in “Deferred Sales Inducements” in the Company's 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 deferred sales inducements, reported as “Interest credited to policyholders' account balances,” are as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance, beginning of year | $ | 787,891 | $ | 542,742 | $ | 537,943 | ||||||||||||
Capitalization | 20,871 | 198,955 | 289,642 | |||||||||||||||
Amortization- Impact of assumption and experience unlocking and true-ups | 14,613 | 53,108 | -24,919 | |||||||||||||||
Amortization- All other | 160,835 | -9,985 | -260,964 | |||||||||||||||
Change in unrealized investment gains (losses) | 5,679 | 3,071 | 1,040 | |||||||||||||||
Balance, end of year | $ | 989,889 | $ | 787,891 | $ | 542,742 |
STAT_FN
STAT FN | 12 Months Ended |
Dec. 31, 2013 | |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | ' |
Statutory Net Income And Surplus And Dividend Restrictions [Text Block] | ' |
8. 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 (loss) for the Company amounted to $553 million, $591 million, and ($589) million for the years ended December 31, 2013, 2012, and 2011 respectively. Statutory surplus of the Company amounted to $2,387 million and $2,211 million at December 31, 2013 and 2012, respectively. | |
The Company prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance. Prescribed statutory accounting practices include publications of the NAIC, state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. | |
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 greater 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 $656 million in 2014 without prior approval. The Company paid dividends of $423 million in 2013. In 2011 and 2012, there were no dividends nor any returns of capital paid by the Company to the parent company. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
IncomeTaxDisclosureAbstract | ' | ||||||||||||
IncomeTaxDisclosureTextBlock | ' | ||||||||||||
9. INCOME TAXES | |||||||||||||
The components of income tax expense (benefit) for the years ended December 31, were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current tax expense (benefit): | |||||||||||||
U.S. | $ | 250,601 | $ | 216,654 | $ | 42,474 | |||||||
Total | 250,601 | 216,654 | 42,474 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
U.S. | 315,819 | -35,614 | -263,930 | ||||||||||
Total | 315,819 | -35,614 | -263,930 | ||||||||||
Total income tax expense on continuing operations | 566,420 | 181,040 | -221,456 | ||||||||||
Total income tax expense (benefit) reported in equity related to: | |||||||||||||
Other comprehensive income (loss) | -113,517 | 29,258 | 16,417 | ||||||||||
Additional paid-in capital | -7,574 | -9,540 | 1,908 | ||||||||||
Total income tax expense (benefit) | $ | 445,329 | $ | 200,758 | $ | -203,131 | |||||||
The Company's actual income tax expense 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 continuing operations before income taxes and cumulative effect of accounting change for the following reasons: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Expected federal income tax expense | $ | 736,621 | $ | 302,882 | $ | -123,964 | |||||||
Non-taxable investment income | -149,933 | -108,463 | -81,031 | ||||||||||
Tax credits | -20,935 | -14,460 | -15,977 | ||||||||||
Other | 667 | 1,081 | -484 | ||||||||||
Total income tax expense (benefit) on continuing operations | $ | 566,420 | $ | 181,040 | $ | -221,456 | |||||||
The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is the primary component of the non-taxable investment income shown in the table above, and, as such, is a significant component of 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 2012 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 mutual fund investments, changes in the account balances of variable life and annuity contracts, and the Company's taxable income before the DRD. | |||||||||||||
In August 2007, the IRS released Revenue Ruling 2007-54, which included, among other items, guidance on the methodology to be followed in calculating the DRD related to variable life insurance and annuity contracts. In September 2007, the IRS released Revenue Ruling 2007-61. Revenue Ruling 2007-61 suspended Revenue Ruling 2007-54 and informed taxpayers that the U.S. Treasury Department and the IRS intend to address through new guidance the issues considered in Revenue Ruling 2007-54, including the methodology to be followed in determining the DRD related to variable life insurance and annuity contracts. In May 2010, the IRS issued an Industry Director Directive (“IDD”) confirming that the methodology for calculating the DRD set forth in Revenue Ruling 2007-54 should not be followed. The IDD also confirmed that the IRS guidance issued before Revenue Ruling 2007-54, which guidance the Company relied upon in calculating its DRD, should be used to determine the DRD. In February 2014, the IRS released Revenue Ruling 2014-7, which modified and superseded Revenue Ruling 2007-54, by removing the provisions of Revenue Ruling 2007-54 related to the methodology to be followed in calculating the DRD and obsoleting Revenue Ruling 2007-61. However, 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. These activities had no impact on the Company's 2011, 2012 or 2013 results. | |||||||||||||
Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Insurance reserves | $ | 1,551,346 | $ | 1,436,802 | |||||||||
Investments | 82,821 | - | |||||||||||
Other | - | 824 | |||||||||||
Deferred tax assets | $ | 1,634,167 | $ | 1,437,626 | |||||||||
Deferred tax liabilities | |||||||||||||
Deferred policy acquisition costs | $ | 1,412,944 | $ | 960,414 | |||||||||
Deferred sales inducements | 346,461 | 275,762 | |||||||||||
Net unrealized gains on securities | 46,247 | 176,441 | |||||||||||
Investments | - | 2,315 | |||||||||||
Other | 1,232 | - | |||||||||||
Deferred tax liabilities | 1,806,884 | 1,414,932 | |||||||||||
Net deferred tax asset (liability) | $ | -172,717 | $ | 22,694 | |||||||||
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, 2013, and 2012. | |||||||||||||
Management believes that based on its historical pattern of taxable income, the Company will produce sufficient income in the future to realize its deferred tax assets. 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 continuing operations before income taxes includes income (loss) from domestic operations of $2,104.6 million, $865.4 million and ($354.2) million, and no income from foreign operations for the years ended December 31, 2013, 2012 and 2011, 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 Internal Revenue Service (“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: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at January 1, | $ | - | $ | 113 | $ | 1,620 | |||||||
Increases in unrecognized tax benefits - prior years | - | 464 | - | ||||||||||
(Decreases) in unrecognized tax benefits- prior years | - | - | -1,507 | ||||||||||
Increases in unrecognized tax benefits - current year | - | - | - | ||||||||||
(Decreases) in unrecognized tax benefits- current year | - | - | - | ||||||||||
Settlements with taxing authorities | - | -577 | - | ||||||||||
Balance at December 31, | $ | - | $ | - | $ | 113 | |||||||
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | - | - | - | ||||||||||
The Company does not anticipate any significant changes within the next 12 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). In December 31, 2013 and 2012, the Company recognized nothing in the statement of operations and recognized no liabilities in the statement of financial position for tax-related interest and penalties. | |||||||||||||
Listed below are the tax years that remain subject to examination by major tax jurisdiction, at December 31, 2013: | |||||||||||||
Major Tax Jurisdiction | Open Tax Years | ||||||||||||
United States | 2004 - 2013 | ||||||||||||
During 2004 through 2006, the Company's parent, Prudential Financial, Inc., entered into two transactions that involved, among other things, the payment of foreign income taxes that were credited against the Company's U.S. tax liability. On May 23, 2011, the IRS issued notices of proposed adjustments disallowing the foreign tax credits claimed and related transaction expenses. The total amount of the proposed adjustments for the transactions was approximately $200 million of tax and penalties. During the fourth quarter of 2011, the Company reached agreement with the IRS on the resolution of the proposed foreign tax credits disallowance. The impact to the 2011 results attributable to the settlement was an increase to tax expense of approximately $93 million. The settlement of the foreign tax credit transactions for 2004 through 2006 marked the conclusion of the IRS audits for those years. As a result, all unrecognized tax positions plus interest relating to tax years prior to 2007 were recognized in 2011. As such, 2011 benefited from a reduction to the liability for unrecognized tax benefits of $70 million, including the impact from the foreign tax credit disallowance. | |||||||||||||
For tax years 2007 through 2013, the Company is participating in the IRS's Compliance Assurance Program (“CAP”). Under CAP, the IRS assigns an examination team to review completed transactions contemporaneously during these tax years in order to reach agreement with the Company on how they should be reported in the tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner before the tax returns are filed. It is management's expectation this program will shorten the time period between the filing of the Company's federal income tax returns and the IRS's completion of its examination of the returns. | |||||||||||||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | 10. FAIR VALUE OF ASSETS AND LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | |||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | 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: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 18,147 | $ | 112,114 | $ | 4,040 | $ | 3,931 | $ | 485 | 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. | ||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company's Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not actively trade and are priced based on a net asset value), certain short-term investments and certain cash equivalents (primarily commercial paper), and certain over-the-counter derivatives. | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 144 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 299 | - | Level 3 - Fair value is based on at least one or more significant unobservable inputs for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company's Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured over-the-counter derivative contracts, certain consolidated real estate funds for which the Company is the general partner, and embedded derivatives resulting from certain products with guaranteed benefits. | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -548 | -205 | - | - | 19 | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 19 | 38 | - | - | - | Assets and Liabilities by Hierarchy Level - The tables below present the balances of assets and liabilities measured at fair value on a recurring basis, as of the dates indicated. | |||||||||||||||||||||||||||||||||||||||
Purchases | 1,322 | - | - | - | 65 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Sales | -3 | - | - | -1,499 | - | Level 1 | Level 2 | Level 3 | Netting (1) | Total | |||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | -900 | -774 | - | - | - | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 112 | - | - | - | - | Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -30,239 | -4,040 | - | - | U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | - | $ | 93,525 | $ | - | $ | - | $ | 93,525 | |||||||||||||||||||||||||||||
Other (4) | - | - | - | - | - | Obligations of U.S. states and their political subdivisions | - | 78,951 | - | - | 78,951 | ||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | Foreign government bonds | - | 23,997 | - | - | 23,997 | |||||||||||||||||||||||||||||
Corporate securities | - | 4,523,076 | 18,293 | - | 4,541,369 | ||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | Asset-backed securities | - | 141,157 | 80,934 | - | 222,091 | |||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | Commercial mortgage-backed securities | - | 522,008 | - | - | 522,008 | |||||||||||||||||||||||||||||||||||||||
Included in earnings: | Residential mortgage-backed securities | - | 169,460 | - | - | 169,460 | |||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -1,648 | $ | - | $ | - | $ | - | $ | - | Sub-total | - | 5,552,174 | 99,227 | - | 5,651,401 | |||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 214 | $ | - | |||||||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Corporate securities | - | 14,183 | - | - | 14,183 | |||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Reinsurance Recoverables | Asset-backed securities | - | 1,978 | - | - | 1,978 | |||||||||||||||||||||||||||||||||||
(in thousands) | Commercial mortgage-backed securities | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,145 | $ | 6,112 | $ | 261,679 | $ | -586,930 | $ | 479,818 | Equity securities | - | - | 2,731 | - | 2,731 | |||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Sub-total | - | 16,161 | 2,731 | - | 18,892 | |||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | - | 52 | 1,087,204 | -1,008,227 | Equity securities, available for sale | 112 | 90 | 569 | - | 771 | ||||||||||||||||||||||||||||||||||
Asset management fees and other income | 23 | - | - | - | - | Short-term investments | 9,216 | 6,768 | 18 | - | 16,002 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 10,756 | - | - | Cash equivalents | 5,962 | 199,825 | - | - | 205,787 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | 31 | - | - | - | Other long-term investments | - | 73,647 | 1,168 | -73,219 | 1,596 | ||||||||||||||||||||||||||||||||||
Net investment income | - | -25 | - | - | - | Reinsurance recoverables | - | - | 11,400 | - | 11,400 | ||||||||||||||||||||||||||||||||||
Purchases | - | - | 22,127 | - | 140,141 | Receivables from parents and affiliates | - | 170,761 | 4,121 | - | 174,882 | ||||||||||||||||||||||||||||||||||
Sales | - | - | -14,772 | - | - | Sub-total excluding separate account assets | 15,290 | 6,019,426 | 119,234 | -73,219 | 6,080,731 | ||||||||||||||||||||||||||||||||||
Issuances | - | - | - | -151,875 | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | - | - | - | - | - | Separate account assets (2) | 973,192 | 99,149,315 | 279,842 | - | 100,402,349 | ||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | Total assets | $ | 988,482 | $ | 105,168,741 | $ | 399,076 | $ | -73,219 | $ | 106,483,080 | |||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -1,997 | - | - | - | Future policy benefits (4) | $ | - | $ | - | $ | -348,399 | $ | - | $ | -348,399 | |||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,168 | $ | 4,121 | $ | 279,842 | $ | 348,399 | $ | -388,268 | Other liabilities (3) | - | 218,467 | 388,268 | -73,051 | 533,684 | |||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 218,467 | $ | 39,869 | $ | -73,051 | $ | 185,285 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | As of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | 1,084,177 | $ | -1,005,924 | (in thousands) | ||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 33 | $ | - | $ | - | $ | - | $ | - | Fixed maturities, available for sale: | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 10,756 | $ | - | $ | - | U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | - | $ | 187,619 | $ | - | $ | - | $ | 187,619 | ||||||||||||||||||||||||
Obligations of U.S. states and their political subdivisions | - | 85,197 | - | - | 85,197 | ||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | - | 27,511 | - | - | 27,511 | ||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 4,561,653 | 36,981 | - | 4,598,634 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 264,747 | 108,727 | - | 373,474 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 489,421 | - | - | 489,421 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | - | 373,909 | - | - | 373,909 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 5,990,057 | 145,708 | - | 6,135,765 | ||||||||||||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 4,008 | - | - | 4,008 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 4,091 | - | - | 4,091 | ||||||||||||||||||||||||||||||||||||||||
Equity securities | - | - | 3,277 | - | 3,277 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 8,099 | 3,277 | - | 11,376 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available for sale | 2,683 | 155 | 1,489 | - | 4,327 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 81,308 | 31,029 | - | - | 112,337 | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | 10,305 | 307,394 | - | - | 317,699 | ||||||||||||||||||||||||||||||||||||||||
Other long term investments | - | 187,384 | 988 | -68,689 | 119,683 | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | - | - | 1,287,157 | - | 1,287,157 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 184,128 | 1,995 | - | 186,123 | ||||||||||||||||||||||||||||||||||||||||
Sub-total excluding separate account assets | 94,296 | 6,708,246 | 1,440,614 | -68,689 | 8,174,467 | ||||||||||||||||||||||||||||||||||||||||
Separate account assets (2) | 345,437 | 80,293,584 | 248,255 | - | 80,887,276 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 439,733 | $ | 87,001,830 | $ | 1,688,869 | $ | -68,689 | $ | 89,061,743 | |||||||||||||||||||||||||||||||||||
Future policy benefits (4) | $ | - | $ | - | $ | 1,417,891 | $ | - | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||
Other liabilities | - | 68,689 | - | -68,689 | - | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 68,689 | $ | 1,417,891 | $ | -68,689 | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||
(1) "Netting" amounts represents swap variation margin of $0.2 million and $0 million as of December 31, 2013 and December 30, 2012, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||||||||||||||||
(3) Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables” at December 31, 2012 were reclassified to “Other Liabilities” – at December 31, 2013 as they were in a net liability position. | |||||||||||||||||||||||||||||||||||||||||||||
(4) For the year ended December 31, 2013, the net embedded derivative asset position of $348 million includes $1,228 million of embedded derivatives in an asset position and $880 million of embedded derivatives in a liability position. For the year ended December 31, 2012, the net embedded derivative liability position of $1,418 million includes $431 million of embedded derivatives in an asset position and $1,849 million of embedded derivatives in a liability position. | |||||||||||||||||||||||||||||||||||||||||||||
The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities - The fair values of the Company's public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience. 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. If the pricing information received from third party pricing services is 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. 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 service 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 over-ride the information with an internally-developed valuation. As of December 31, 2013 and December 31, 2012, over-rides on a net basis were not material. Pricing service over-rides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||||||
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 a discounted cash flow model. If the fair value is determined using pricing inputs that are observable in the market, the securities have been reflected within Level 2; otherwise a Level 3 classification is used. | |||||||||||||||||||||||||||||||||||||||||||||
Trading Account Assets - Trading account assets consist primarily of asset-backed securities, perpetual preferred stock and commercial mortgage-backed 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 “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, non-performance risk (“NPR”), liquidity and other factors. Liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions, and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position. | |||||||||||||||||||||||||||||||||||||||||||||
The majority of the Company's derivative positions are traded in the over-the-counter (“OTC”) derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company's policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate, cross currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black Scholes option pricing models. These models' key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, non-performance risk, volatility and other factors. | |||||||||||||||||||||||||||||||||||||||||||||
The Company's cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including overnight indexed swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||||||
To reflect the market's perception of its own and the counterparty's non-performance risk, the Company incorporates additional spreads over LIBOR into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company's fair values to external broker-dealer values. As of December 31, 2013 and December 31, 2012, there were derivatives with the fair value of $0.0 million and $0.2 million, respectively, classified within Level 3, and all other derivatives were classified within Level 2. See Note 11 for more details on the fair value of derivative instruments by primary underlying. | |||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents and Short-Term Investments - Cash equivalents and short-term investments include money market instruments, commercial paper 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 real estate investments for which values are determined consistent with similar instruments described above under "Fixed Maturity Securities,” “Equity Securities” and “Other Long-Term Investments.” | |||||||||||||||||||||||||||||||||||||||||||||
Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within our legal entity whose fair value are determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. | |||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Recoverables – Reinsurance recoverables carried at fair value include the reinsurance of our living benefit guarantees on certain of our variable annuities. 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 assumption 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 13). Under this agreement, the Company pays a premium to UPARC to reinsure the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision. Reinsurance of this risk is accounted for as an embedded derivative which is included in “Reinsurance recoverables”. The fair value of this embedded derivative is the present value of expected reimbursement from UPARC for cost of insurance charges the Company is unable to collect from policyholders, less the present value of reinsurance premiums that is attributable to the embedded derivative feature. This methodology could result in either an asset or liability, given changes in capital market conditions and various policyholder behavior assumptions. Significant inputs to the valuation model for this embedded derivative include capital market assumptions, such as interest rates, estimated non-performance risk of the counterparty, and various assumptions that are actuarially determined, including lapse rates, premium payment patterns, and mortality rates. This embedded derivative had a value of $11.4 million and zero at December 31, 2013 and December 31, 2012, respectively, primarily due to NPR. The increase is primarily driven by assumption updates including mortality improvement and a lower lapse risk factor as well as the net impact of changes in interest rates and NPR. | |||||||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits - The liability for future policy benefits primarily includes general account liabilities for the optional living benefit features of the Company's variable annuity contracts, including guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”), accounted for as embedded derivatives. The fair values of the GMAB, GMWB, and GMIWB liabilities are calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the optional living benefit feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management 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 risk of its own non-performance, 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 policyholders' 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 policyholders' 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, such as available industry studies or market transactions such as acquisitions and reinsurance transactions. These assumptions are generally updated in the third quarter of each year unless a material change that the Company feels is indicative of a long term trend is observed in an interim period. | |||||||||||||||||||||||||||||||||||||||||||||
Transfers between Levels 1 and 2 – Periodically there are transfers between Level 1 and Level 2 for assets held in the Company's Separate Account. The classification of Separate Account funds may vary dependent on the availability of information to the public. Should a fund's net asset value become publicly observable, the fund would be transferred from Level 2 to Level 1. During the year ended December 31, 2013, $463 million was transferred from Level 2 to Level 1. During the year ended December 31, 2012, $1.9 million was transferred from Level 1 to Level 2. Transfers between levels are generally reported at the values as of the beginning of the period in which the transfers occur. There were no transfers between Level 1 and 2 for the year ended December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Price Source - The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. | |||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Internal (1) | External (2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 15,100 | $ | 3,193 | $ | 18,293 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 355 | 80,579 | 80,934 | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 18 | - | 18 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | 569 | 2,731 | 3,300 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | - | 1,168 | 1,168 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | 11,400 | - | 11,400 | ||||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 4,121 | 4,121 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal excluding separate account assets | 27,442 | 91,792 | 119,234 | ||||||||||||||||||||||||||||||||||||||||||
Separate account assets | 81,795 | 198,047 | 279,842 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 109,237 | $ | 289,839 | $ | 399,076 | |||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | -348,399 | $ | - | $ | -348,399 | |||||||||||||||||||||||||||||||||||||||
Other liabilities | 388,268 | - | 388,268 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 39,869 | $ | - | $ | 39,869 | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Internal (1) | External (2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 31,356 | $ | 5,625 | $ | 36,981 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 5,929 | 102,798 | 108,727 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | 1,489 | 3,277 | 4,766 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 232 | 756 | 988 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | 1,287,157 | - | 1,287,157 | ||||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 1,995 | 1,995 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal excluding separate account assets | 1,326,163 | 114,451 | 1,440,614 | ||||||||||||||||||||||||||||||||||||||||||
Separate account assets | 77,286 | 170,969 | 248,255 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,403,449 | $ | 285,420 | $ | 1,688,869 | |||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | 1,417,891 | $ | - | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,417,891 | $ | - | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||||||
(1) Represents valuations which could incorporate internally-derived and market inputs. 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 non-binding broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The table below presents quantitative information on significant internally-priced Level 3 assets and liabilities. | |||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 15,100 | Discounted cash flow | Discount rate | 8.28% | 15.00% | 10.61% | Decrease | |||||||||||||||||||||||||||||||||||||
Market Comparables | EBITDA Multiples(2) | 5.0X | 7.0X | 5.91X | Increase | ||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 11.61% | 38.49% | 31.83% | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | $ | 11,400 | See the Reinsurance Recoverable section above for an explanation of the fair value determination. | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (3) | $ | -348,399 | Discounted cash flow | Lapse rate (4) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (5) | 0.08% | 1.09% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (6) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (7) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (8) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 15% | 28% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 388,268 | Represents reinsurance of variable annuity living benefits in a liability position. Fair values are determined in the same manner as future policy benefits | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 31,356 | Discounted cash flow | Discount rate | 8.90% | 17.50% | 10.60% | Decrease | |||||||||||||||||||||||||||||||||||||
Cap at call price | Call price | 100% | 100% | Increase | |||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 98% | 98% | Increase | |||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | $ | 1,287,157 | Fair values are determined in the same manner as future policy benefits | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (3) | $ | 1,417,891 | Discounted cash flow | Lapse rate (4) | 0% | 14% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (5) | 0.20% | 1.60% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (6) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (7) | 85% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (8) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 19% | 34% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. | |||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
Base lapse rates are adjusted at the contract level based on a comparison of the benefit amount and the policyholder account value and reflect other factors, such as the applicability of any surrender charges. A dynamic lapse adjustment reduces the base lapse rate when the benefit amount is greater than the account value, as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. | |||||||||||||||||||||||||||||||||||||||||||||
To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. In determining the NPR spread, the Company 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. | |||||||||||||||||||||||||||||||||||||||||||||
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. These assumptions vary based on the product type, the age of the contractholder and the age of the contract. The impact of changes in these assumptions is highly dependent on the contract type and age of the contractholder at the time of the sale and the timing of the first lifetime income withdrawal. | |||||||||||||||||||||||||||||||||||||||||||||
The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%. | |||||||||||||||||||||||||||||||||||||||||||||
Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. | |||||||||||||||||||||||||||||||||||||||||||||
Interrelationships Between Unobservable Inputs—In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities—The rate used to discount future cash flows reflects current risk free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. | |||||||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits—The unobservable contractholder behavior inputs related to the liability for the optional living benefit features of the Company's variable annuity contracts included in future policy benefits are generally based on emerging experience, future expectations and other data. While experience for these products is still emerging, the Company expects benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. The dynamic lapse adjustment assumes lower lapses when the benefit amount is greater than the account value, as in-the-money contracts are less likely to lapse. Therefore, to the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, the dynamic lapse function will reduce lapse rates for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, the dynamic lapse function will lower overall lapse rates as contracts become more in-the-money. | |||||||||||||||||||||||||||||||||||||||||||||
Separate Account Assets – In addition to the significant internally-priced Level 3 assets and liabilities presented and described above, the Company also has internally-priced separate account assets reported within Level 3. Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company's Consolidated Statement of Financial Position. As a result, changes in value associated with these investments do not impact the Company's Consolidated Statement of Operations. In addition, fees earned by the Company related to the management of most separate account assets classified as Level 3 do not change due to changes in the fair value of these investments. Quantitative information about significant internally-priced Level 3 separate account assets is as follows: | |||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Other Invested Assets – Separate account assets include $81.8 million and $77.3 million of investments in real estate as of December 31, 2013 and December 31, 2012, respectively, that are classified as Level 3 and reported at fair value which is determined by the Company's equity in net assets of the entities. Fair value estimates of real estate are based on property appraisal reports prepared by independent real estate appraisers. Key inputs and assumptions to the appraisal process include rental income and expense amounts, related growth rates, discount rates and capitalization rates. Because of the subjective nature of inputs and the judgment involved in the appraisal process, real estate investments are typically included in the Level 3 Classification. Key unobservable inputs to real estate valuation include capitalization rates, which ranged from 5.00% to 10.00% (6.82% weighted average) as of December 31, 2013 and 5.50% to 9.50% (7.30% weighted average) as of December 31, 2012 and discount rates which ranged from 6.75% to 11.00% (7.90% weighted average) as of December 31, 2013 and 7.00% to 11.50% (8.30% weighted average) as of December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||||||
Valuation Process for Fair Value Measurements Categorized within Level 3 – The Company has established an internal control infrastructure over the valuation of financial instruments that requires ongoing oversight by its various Business Groups. These management control functions are segregated from the trading and investing functions. For invested assets, the Company has established oversight teams, often in the form of Pricing Committees within each asset management group. The teams, which typically include representation from investment, accounting, operations, legal and other disciplines are responsible for overseeing and monitoring the pricing of the Company's investments and performing periodic due diligence reviews of independent pricing services. An actuarial valuation team oversees the valuation of optional living benefit features of the Company's variable annuity contracts. | |||||||||||||||||||||||||||||||||||||||||||||
The Company has also established policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies. These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes. These controls include appropriate review and analysis of investment prices against market activity or indicators of reasonableness, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. For optional living benefit features of the Company's variable annuity products, the actuarial valuation unit periodically performs baseline testing of contract input data and actuarial assumptions are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data, such as available industry studies. The valuation policies and guidelines are reviewed and updated as appropriate. | |||||||||||||||||||||||||||||||||||||||||||||
Within the trading and investing functions, the Company has established policies and procedures that relate to the approval of all new transaction types, transaction pricing sources and fair value hierarchy coding within the financial reporting system. For variable annuity product changes or new launches of optional living benefit features, the actuarial valuation unit validates input logic and new product features and agrees new input data directly to source documents. | |||||||||||||||||||||||||||||||||||||||||||||
Changes in Level 3 assets and liabilities - 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, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | |||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset- Backed Securities | Commercial Mortgage-Backed Securities | Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | Short Term Investments | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 36,981 | $ | 108,727 | $ | - | $ | 3,277 | $ | 1,489 | $ | - | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -1,177 | - | - | - | 427 | - | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 953 | - | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -1,641 | -294 | -3 | - | 71 | - | |||||||||||||||||||||||||||||||||||||||
Net investment income | 90 | 257 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | 14,996 | 33,078 | 12,524 | 380 | 65 | - | |||||||||||||||||||||||||||||||||||||||
Sales | -2,329 | -1 | - | -1,499 | -1,483 | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | -22,446 | -23,098 | -3,434 | -380 | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 112 | - | - | - | - | 18 | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -6,293 | -35,239 | -9,087 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Other (4) | - | -2,496 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | $ | 18 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -1,648 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 869 | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Reinsurance Recoverable | Future Policy Benefits | Other Liabilities (5) | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 988 | $ | 1,995 | $ | 248,255 | $ | - | $ | -1,417,891 | $ | 1,287,157 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -232 | - | 1,966 | 11,400 | 2,342,621 | -2,210,096 | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 144 | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 18,978 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | -25 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | 268 | 5,147 | 80,302 | - | - | 534,671 | |||||||||||||||||||||||||||||||||||||||
Sales | - | -3,495 | -69,659 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -576,331 | - | |||||||||||||||||||||||||||||||||||||||
Settlements | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -1,997 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Other (4) | - | 2,496 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,168 | $ | 4,121 | $ | 279,842 | $ | 11,400 | $ | 348,399 | -388,268 | ||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | 11,400 | $ | 2,318,266 | $ | -2,188,291 | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 122 | $ | - | $ | - | $ | - | $ | - | - | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 18,978 | $ | - | $ | - | - | ||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities | Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 4,696 | $ | 23,720 | $ | 62,429 | $ | - | $ | 3,362 | $ | 2,652 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | -3,454 | 687 | - | - | -1,423 | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | - | -35 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 4 | 4,070 | 2,840 | -65 | - | 264 | |||||||||||||||||||||||||||||||||||||||
Net investment income | - | 101 | 364 | 3 | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | - | 8,714 | 62,524 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Sales | - | -89 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | - | -8,656 | -14,566 | -2,496 | -50 | - | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | 23,995 | 5,702 | 5,246 | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -16,120 | -11,253 | -2,688 | - | -4 | |||||||||||||||||||||||||||||||||||||||
Other (4) | -4,700 | 4,700 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | - | $ | 36,981 | $ | 108,727 | $ | - | $ | 3,277 | $ | 1,489 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | -35 | $ | - | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 686 | $ | 868,824 | $ | - | $ | 222,323 | -912,986 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -4,659 | 2,937 | - | -1,476 | -61,390 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | -7 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | - | 12,377 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | -5 | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 4,966 | 415,396 | 2,000 | 94,515 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -79,484 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -443,515 | ||||||||||||||||||||||||||||||||||||||||
Settlements | 2 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 988 | 1,287,157 | $ | 1,995 | $ | 248,255 | -1,417,891 | |||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -4,549 | 17,516 | $ | - | $ | - | -76,581 | |||||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | -7 | - | $ | - | $ | - | - | |||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | - | $ | - | $ | 12,377 | - | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities | Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | - | $ | 49,050 | $ | 59,770 | $ | - | $ | - | $ | 1,792 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | -3,311 | 803 | - | - | -3,315 | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | - | -595 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -4 | -1,126 | -694 | - | - | 2,840 | |||||||||||||||||||||||||||||||||||||||
Net investment income | - | 219 | 768 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | 4,700 | 7,534 | 23,001 | 5,019 | - | 1,696 | |||||||||||||||||||||||||||||||||||||||
Sales | - | -678 | -8,160 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | 883 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | - | -20,679 | -9,094 | - | -5,000 | -99 | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | 10,444 | - | - | - | 8,695 | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -18,616 | -3,965 | -5,019 | - | - | |||||||||||||||||||||||||||||||||||||||
Other (4) | - | - | - | - | 8,957 | -8,957 | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 4,696 | $ | 23,720 | $ | 62,429 | $ | - | $ | 3,362 | $ | 2,652 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | -4,319 | $ | -10 | $ | - | $ | - | $ | -2,918 | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | -876 | $ | - | |||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term investments | Receivables from Parents and Affiliates | Reinsurance Recoverable | Separate Account Assets (1) | Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | - | $ | 24,278 | $ | -373,000 | $ | 198,451 | $ | 452,822 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 102 | - | 934,112 | 388 | -1,091,846 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | -46 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 1,815 | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | -55 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 630 | 431 | 307,712 | 86,744 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -65,075 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -273,962 | ||||||||||||||||||||||||||||||||||||||||
Settlements | - | -3 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -24,651 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 686 | $ | - | $ | 868,824 | $ | 222,323 | $ | -912,986 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 75 | $ | - | $ | 973,717 | $ | - | $ | -1,085,926 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | -46 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 1,815 | $ | - | |||||||||||||||||||||||||||||||||||
(1) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain 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 Statement of Financial Position. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs. | |||||||||||||||||||||||||||||||||||||||||||||
(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. | |||||||||||||||||||||||||||||||||||||||||||||
(4) Other primarily represents reclasses of certain assets between reporting categories. | |||||||||||||||||||||||||||||||||||||||||||||
(5) Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables” at December 31, 2012, were reclassified to “Other Liabilities” – at December 31, 2013 as they were in a net liability position. | |||||||||||||||||||||||||||||||||||||||||||||
Transfers – Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company is able to validate. | |||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2011 the majority of the Equity Securities Available for Sale transfers into Level 3 were due to the determination that the pricing inputs for perpetual preferred stocks provided by third party pricing services were primarily based on indicative broker quotes which could not always be verified against directly observable market information. Perpetual preferred stocks were included in Equity Securities Available for Sale and subsequently transferred to Trading Account Assets. During the same period, the pricing and valuation methodology related to an affiliated bond reported in Other Assets totaled $24.7 million was re-evaluated and subsequently updated to utilize observable inputs and transferred out of Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
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. However, in some cases, as described below, the carrying amount equals or approximates fair value. | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Carrying Amount (1) | Fair Value | Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | $ | - | $ | 7,827 | $ | 1,604,247 | $ | 1,612,074 | $ | 1,532,165 | $ | 1,616,804 | $ | 1,463,977 | |||||||||||||||||||||||||||||||
Policy loans | - | - | 1,086,772 | 1,086,772 | 1,086,772 | 1,455,412 | 1,079,714 | ||||||||||||||||||||||||||||||||||||||
Other long term investments | - | - | 4,751 | 4,751 | 4,268 | 2,491 | 2,119 | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 45,317 | 56,139 | - | 101,456 | 101,456 | 94,410 | 94,410 | ||||||||||||||||||||||||||||||||||||||
Accrued investment income | - | 89,465 | - | 89,465 | 89,465 | 90,653 | 90,653 | ||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 87,849 | - | 87,849 | 87,481 | -3,146 | -3,751 | ||||||||||||||||||||||||||||||||||||||
Other assets | - | 34,060 | - | 34,060 | 34,060 | 32,782 | 32,176 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 45,317 | $ | 275,340 | $ | 2,695,770 | $ | 3,016,427 | $ | 2,935,667 | $ | 3,289,406 | $ | 2,759,298 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' Account Balances - Investment Contracts | $ | - | $ | 851,607 | $ | 40,451 | $ | 892,058 | $ | 901,860 | $ | 793,280 | $ | 796,816 | |||||||||||||||||||||||||||||||
Cash collateral for loaned securities | - | 84,867 | - | 84,867 | 84,867 | 48,068 | 48,068 | ||||||||||||||||||||||||||||||||||||||
Short-term debt | - | 275,268 | - | 275,268 | 274,900 | 272,981 | 272,000 | ||||||||||||||||||||||||||||||||||||||
Long-term debt | - | 1,644,827 | - | 1,644,827 | 1,592,000 | 1,563,185 | 1,511,000 | ||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 45,649 | - | 45,649 | 45,649 | 6,694 | 6,694 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | - | 270,339 | - | 270,339 | 270,339 | 224,751 | 224,751 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 3,172,557 | $ | 40,451 | $ | 3,213,008 | $ | 3,169,615 | $ | 2,908,959 | $ | 2,859,329 | |||||||||||||||||||||||||||||||
Carrying values presented herein differ from those in the Company's Consolidated Statement 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. | |||||||||||||||||||||||||||||||||||||||||||||
The fair values presented above have been determined by using available market information and by applying market valuation methodologies, as described in more detail below. | |||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage and Other Loans | |||||||||||||||||||||||||||||||||||||||||||||
The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate plus an appropriate credit spread for similar quality loans. The quality ratings for these loans, a primary determinant of the credit spreads and a significant component of the pricing process, are based on an internally-developed methodology. | |||||||||||||||||||||||||||||||||||||||||||||
Policy Loans | |||||||||||||||||||||||||||||||||||||||||||||
During the fourth quarter of 2013, the Company changed the valuation technique used to fair value policy loans. For the period ended December 31, 2013, the fair value of policy loans was determined by discounting expected cash flows at the current loan coupon rate. As a result the carrying value of the policy loans approximates the fair value for the year ended December 31, 2013. Prior to this change, the fair value of U.S. insurance policy loans was calculated by discounting expected cash flows based upon current U.S. Treasury rates and historical loan repayment patterns. | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments include investments in joint ventures and limited partnerships. The estimated fair values of these cost method investments are generally based on the Company's share of the net asset value (“NAV”) as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. For the year end December 31, 2013 and 2012, no such adjustments were made. | |||||||||||||||||||||||||||||||||||||||||||||
Cash, Accrued Investment Income, Receivables from Parent and Affiliates and Other Assets | |||||||||||||||||||||||||||||||||||||||||||||
The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. These assets include: cash, accrued investment income, and other assets that meet the definition of financial instruments, including receivables, such as unsettled trades and accounts receivable. Also included in receivables from parents and affiliates is an affiliated note whose fair value is determined in the same manner as the underlying debt described below under “Short-Term and Long-Term Debt”. | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' Account Balances - Investment Contracts | |||||||||||||||||||||||||||||||||||||||||||||
Only the portion of policyholders' account balances related to products that are investment contracts (those without significant mortality or morbidity risk) are reflected in the table above. For fixed deferred annuities, payout annuities and other similar contracts without life contingencies, fair values are derived using discounted projected cash flows based on interest rates that are representative of the Company's financial strength ratings, and hence reflect the Company's own non-performance risk. For those balances that can be withdrawn by the customer at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. | |||||||||||||||||||||||||||||||||||||||||||||
Cash Collateral for Loaned Securities | |||||||||||||||||||||||||||||||||||||||||||||
This represents the collateral received or paid in connection with loaning or borrowing securities, similar to the securities sold under agreement to repurchase below. For these transactions, the carrying value of the related asset/liability approximates fair value as they equal the amount of cash collateral received/paid. | |||||||||||||||||||||||||||||||||||||||||||||
Short-Term and Long-Term Debt | |||||||||||||||||||||||||||||||||||||||||||||
The fair value of short−term and long−term debt is generally determined by either prices obtained from independent pricing services, which are validated by the Company, or discounted cash flow models. These fair values consider the Company's own non−performance risk. Discounted cash flow models predominately use market observable inputs such as the borrowing rates currently available to the Company for debt and financial instruments with similar terms and remaining maturities. For commercial paper issuances and other debt with a maturity of less than 90 days, the carrying value approximates fair value. | |||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities and Payables to Parent and Affiliates | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities and payables to parent and affiliates are primarily payables, such as unsettled trades, drafts, escrow deposits and accrued expense payables. Due to the short term until settlement of most of these liabilities, the Company believes that carrying value approximates fair value. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||
Derivative Instruments | ' | [1] | ||||||||||||||||||||||
11. 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 other parties 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. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty at each due date. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
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 other parties 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 other parties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty for payments made in the same currency at each due date. | ||||||||||||||||||||||||
Credit Contracts | ||||||||||||||||||||||||
Credit derivatives are used by the Company to enhance the return on the Company's investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With credit derivatives the Company can sell credit protection on an identified name, and in return receive 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 written section for discussion of guarantees related to credit derivatives written. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company's investment portfolio. | ||||||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||||||
The Company sells variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. The Company has reinsurance agreements to transfer the risk related to certain of these benefit features to an affiliate, Pruco Re. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 10. | ||||||||||||||||||||||||
The fair value of the living benefit feature embedded derivatives included in "Future policy benefits" was an asset of $348 million and a liability of $1,418 million as of December 31, 2013 and December 31, 2012, respectively. The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re included in "Reinsurance recoverables" was a liability of $388 million and an asset of $1,287 million as of December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
The Company has invested in fixed maturities in the past that, in addition to a stated coupon, provided a return based upon the results of an underlying portfolio of fixed income investments and related investment activity. The Company accounted for these investments as available-for-sale fixed maturities containing embedded derivatives. Such embedded derivatives are marked to market through “Realized investment gains (losses), net,” based upon the change in value of the underlying portfolio. | ||||||||||||||||||||||||
Some of the Company's universal life products contain a no-lapse guarantee provision that is reinsured with an affiliate, UPARC. The reinsurance agreement contains an embedded derivative related to the interest rate risk of the reinsurance contract. Fluctuations in interest rates can result in mark-to-market changes in the value of the underlying contractual guarantees and impact the amount of premiums and benefits paid between the Company and UPARC. See Note 8 for additional information on the agreement with UPARC. | ||||||||||||||||||||||||
The table below provides a summary of the gross notional amount and fair value of derivatives contracts used in a non-broker-dealer capacity, excluding embedded derivatives which are recorded with the associated host, by the primary underlying. Many derivative instruments contain multiple underlyings. | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Notional | Gross Fair Value | Notional | Gross Fair Value | |||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
Primary Underlying | (in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Currency Swaps | $ | 249,601 | $ | 6,304 | $ | -11,583 | $ | 145,174 | $ | 4,152 | $ | -3,904 | ||||||||||||
Total Qualifying Hedges | $ | 249,601 | $ | 6,304 | $ | -11,583 | $ | 145,174 | $ | 4,152 | $ | -3,904 | ||||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Interest Rate | ||||||||||||||||||||||||
Interest Rate Swaps | $ | 2,434,400 | $ | 47,475 | $ | -185,222 | $ | 1,729,400 | $ | 109,855 | $ | -22,930 | ||||||||||||
Currency | ||||||||||||||||||||||||
Forwards | 507 | 2 | - | 5,424 | 48 | - | ||||||||||||||||||
Credit | ||||||||||||||||||||||||
Credit Default Swaps | 14,275 | 15 | -862 | 14,275 | 614 | -894 | ||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Currency Swaps | 69,450 | 211 | -3,325 | 62,468 | 1,516 | -2,064 | ||||||||||||||||||
Equity | ||||||||||||||||||||||||
Total Return Swaps | 332,000 | - | -8,057 | 320,377 | 762 | -6,073 | ||||||||||||||||||
Equity Options | 40,739,168 | 19,639 | -9,418 | 24,243,020 | 70,669 | -32,824 | ||||||||||||||||||
Total Non-Qualifying Hedges | 43,589,800 | 67,342 | -206,884 | 26,374,964 | 183,464 | -64,785 | ||||||||||||||||||
Total Derivatives (1) | $ | 43,839,401 | $ | 73,646 | $ | -218,467 | $ | 26,520,138 | $ | 187,616 | $ | -68,689 | ||||||||||||
Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was an asset of $348 million and a liability of $1,441 million as of December 31, 2013 and December 31, 2012, respectively, included in “Future policy benefits” and “Fixed maturities, available-for-sale.” | ||||||||||||||||||||||||
Offsetting Assets and Liabilities | ||||||||||||||||||||||||
The following table presents recognized derivative instruments (including bifurcated embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the balance sheet, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the balance sheet. | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Gross | Net | |||||||||||||||||||||||
Gross | Amounts | Amounts | ||||||||||||||||||||||
Amounts of | Offset in the | Presented in | ||||||||||||||||||||||
Recognized | Statement of | the Statement | Financial | |||||||||||||||||||||
Financial | Financial | of Financial | Instruments/ | Net | ||||||||||||||||||||
Instruments | Position | Position | Collateral | Amount | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Offsetting of Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 73,219 | $ | -73,219 | $ | - | $ | - | $ | - | ||||||||||||||
Securities purchased under agreement to resell | 56,139 | - | 56,139 | -56,139 | - | |||||||||||||||||||
Total Assets | $ | 129,358 | $ | -73,219 | $ | 56,139 | $ | -56,139 | $ | - | ||||||||||||||
Offsetting of Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 218,467 | $ | -73,051 | $ | 145,416 | $ | -136,593 | $ | 8,823 | ||||||||||||||
Securities sold under agreement to repurchase | - | - | - | - | - | |||||||||||||||||||
Total Liabilities | $ | 218,467 | $ | -73,051 | $ | 145,416 | $ | -136,593 | $ | 8,823 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Gross | Net | |||||||||||||||||||||||
Gross | Amounts | Amounts | ||||||||||||||||||||||
Amounts of | Offset in the | Presented in | ||||||||||||||||||||||
Recognized | Statement of | the Statement | Financial | |||||||||||||||||||||
Financial | Financial | of Financial | Instruments/ | Net | ||||||||||||||||||||
Instruments | Position | Position | Collateral | Amount | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Offsetting of Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 187,372 | $ | -68,689 | $ | 118,683 | $ | - | $ | 118,683 | ||||||||||||||
Securities purchased under agreement to resell | 203,437 | - | 203,437 | -203,437 | - | |||||||||||||||||||
Total Assets | $ | 390,809 | $ | -68,689 | $ | 322,120 | $ | -203,437 | $ | 118,683 | ||||||||||||||
Offsetting of Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 68,689 | $ | -68,689 | $ | - | $ | - | $ | - | ||||||||||||||
Securities sold under agreement to repurchase | - | - | - | - | - | |||||||||||||||||||
Total Liabilities | $ | 68,689 | $ | -68,689 | $ | - | $ | - | $ | - | ||||||||||||||
For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company's accounting policy for securities repurchase and resale agreements, see Note 2 to the Company's Consolidated Financial Statements. | ||||||||||||||||||||||||
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, 2013 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 1,029 | $ | -794 | $ | -4,848 | ||||||||||||||||
Total cash flow hedges | - | 1,029 | -794 | -4,848 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | -191,954 | - | - | - | ||||||||||||||||||||
Currency | 51 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | -3,450 | - | -17 | - | ||||||||||||||||||||
Credit | -1,106 | - | - | - | ||||||||||||||||||||
Equity | -130,714 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | 274,374 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | -52,799 | - | -17 | - | ||||||||||||||||||||
Total | $ | -52,799 | $ | 1,029 | $ | -811 | $ | -4,848 | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 707 | $ | 46 | $ | -2,376 | ||||||||||||||||
Total cash flow hedges | - | 707 | 46 | -2,376 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | 1,309 | - | - | - | ||||||||||||||||||||
Currency | -147 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | -866 | - | -6 | - | ||||||||||||||||||||
Credit | -763 | - | - | - | ||||||||||||||||||||
Equity | -69,527 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | -116,431 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | -186,425 | - | -6 | - | ||||||||||||||||||||
Total | $ | -186,425 | $ | 707 | $ | 40 | $ | -2,376 | ||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | -337 | $ | 233 | $ | 49 | $ | 1,715 | ||||||||||||||||
Total cash flow hedges | -337 | 233 | 49 | 1,715 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | 90,706 | - | - | - | ||||||||||||||||||||
Currency | 175 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | 1,102 | - | - | - | ||||||||||||||||||||
Credit | 733 | - | - | - | ||||||||||||||||||||
Equity | -3,264 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | 88,740 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | 178,192 | - | - | - | ||||||||||||||||||||
Total | $ | 177,855 | $ | 233 | $ | 49 | $ | 1,715 | ||||||||||||||||
Amounts deferred in “Accumulated other comprehensive income (loss).” | ||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the ineffective portion of derivatives accounted for using hedge accounting was not material to the Company's results of operations and there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. | ||||||||||||||||||||||||
Presented below is a roll forward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 808 | ||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2011 | 1,607 | |||||||||||||||||||||||
Amount reclassified into current period earnings | 108 | |||||||||||||||||||||||
Balance, December 31, 2011 | 2,523 | |||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2012 | -622 | |||||||||||||||||||||||
Amount reclassified into current period earnings | -1,754 | |||||||||||||||||||||||
Balance, December 31, 2012 | 147 | |||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013 | -4,519 | |||||||||||||||||||||||
Amount reclassified into current period earnings | -329 | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | -4,701 | ||||||||||||||||||||||
As of December 31, 2013 and 2012, 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 20 years. Income amounts deferred in “Accumulated other comprehensive income (loss)” as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” in the Consolidated Statements of Equity. | ||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||
The Company has no exposure from credit derivatives where it has written credit protection as of December 31, 2013 and December 31, 2012. | ||||||||||||||||||||||||
The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company's investment portfolio. As of December 31, 2013 and December 31, 2012, the Company had $14 million of outstanding notional amounts, reported at fair value as a liability of less than $1 million for both periods. | ||||||||||||||||||||||||
Prior to disposal in the fourth quarter of 2013, the Company held certain externally-managed investments in the European market which contained embedded derivatives. Their fair values were primarily driven by changes in credit spreads. These investments were medium-term notes that were collateralized by investment portfolios primarily consisting of investment grade European fixed income securities, including corporate bonds and asset-backed securities, and derivatives, as well as varying degrees of leverage. The notes had a stated coupon and provided a return based on the performance of the underlying portfolios and the level of leverage. The Company invested in these notes to earn a coupon through maturity, consistent with its investment purpose for other debt securities. The notes were accounted for under U.S. GAAP as available-for-sale fixed maturity securities with bifurcated embedded derivatives (total return swaps). Changes in the value of the fixed maturity securities were reported in Equity under the heading “Accumulated Other Comprehensive Income (Loss)” and changes in the market value of the embedded total return swaps are included in current period earnings in “Realized investment gains (losses), net.” The Company's maximum exposure to loss from these investments was $64 million on December 31, 2012. The fair value of the embedded derivatives included in “Fixed maturities, available-for-sale” was a liability of $23 million on December 31, 2012. | ||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by our counterparty to financial derivative transactions. | ||||||||||||||||||||||||
The Company has credit risk exposure to an affiliate, Prudential Global Funding, LLC (“PGF”), related to its OTC derivative transactions. PGF manages credit risk with external counterparties by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral where appropriate, see Note 13. Additionally, limits are set on single party credit exposures which are subject to periodic management review. | ||||||||||||||||||||||||
Under fair value measurements, the Company incorporates the market's perception of its own and the counterparty's non-performance risk in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company's own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company's counterparty's credit spread is applied to OTC derivative net asset positions. | ||||||||||||||||||||||||
[1] | _____________ Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. |
Commitments_Contingent_Liabili
Commitments, Contingent Liabilities And Litigation And Regulatory Matters | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Guarantees And Contingent Liabilities [Abstract] | ' |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | ' |
12. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS | |
Commitments | |
The Company has made commitments to fund $24.9 million of commercial loans as of December 31, 2013. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $116 million as of December 31, 2013. | |
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 flow 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 flow 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 some of the pending legal and regulatory actions, plaintiffs are seeking large and/or indeterminate amounts, including punitive or exemplary damages. 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 following is a summary of certain pending proceedings. | |
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. As of December 31, 2013, the aggregate range of reasonably possible losses in excess of accruals established is not currently estimable. 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. | |
In January 2013, a qui tam action on behalf of the State of Florida, Total Asset Recovery Services v. Met Life Inc., et al., Manulife Financial Corporation, et. al., Prudential Financial, Inc., The Prudential Insurance Company of America, and Prudential Insurance Agency, LLC, filed in the Circuit Court of Leon County, Florida, was served on Prudential Insurance. The complaint alleges that Prudential Insurance failed to escheat life insurance proceeds to the State of Florida in violation of the Florida False Claims Act and seeks injunctive relief, compensatory damages, civil penalties, treble damages, prejudgment interest, attorneys' fees and costs. In March 2013, the Company filed a motion to dismiss the complaint. In August 2013, the court dismissed the complaint with prejudice. In September 2013, plaintiff filed an appeal with Florida's Circuit Court of the Second Judicial Circuit in Leon County. | |
In October 2012, the State of West Virginia, through its State Treasurer, filed a lawsuit, State of West Virginia ex. Rel. John D. Perdue v. PRUCO Life Insurance Company, 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 a motion to dismiss the complaint. In December 2013, the Court granted the Company's motion and dismissed the complaint with prejudice. In January 2014, the State of West Virginia appealed the decision. | |
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 Company is one of several companies subpoenaed by the New York Attorney General regarding its unclaimed property procedures. Additionally, the New York State Department of Financial Services (“NYDFS”) has requested that 172 life insurers (including the Company) provide data to the NYDFS regarding use of the SSMDF. The New York Office of Unclaimed Funds is conducting an audit of the Company's compliance with New York's unclaimed property laws. In February 2012, the Massachusetts Office of the Attorney General requested information regarding the Company's unclaimed property procedures. In December 2013, this matter was closed without prejudice. In May 2013, the Company entered into a settlement agreement with the Minnesota Department of Commerce, Insurance Division, which requires the Company to take additional steps to identify deceased insureds and contract holders where a valid claim has not been made. | |
In December 2010, a purported state-wide class action complaint, Phillips v. Prudential Financial, Inc, was filed in state court and removed to the United States District Court for the Southern District of Illinois. The complaint makes allegations under Illinois law, on behalf of a class of Illinois residents whose death benefit claims were settled by retained assets accounts. In March 2011, the complaint was amended to drop Prudential Financial as a defendant and add the Company and The Prudential Insurance Company of America as a defendant. The matter is now captioned Phillips v. Prudential Insurance and Pruco Life Insurance Company. In November 2011, the complaint was dismissed. In December 2011, plaintiff appealed the dismissal. In May 2013, the United States Court of Appeals for the Seventh Circuit affirmed the dismissal of plaintiff's putative class action complaint. In August 2013, plaintiff's time to appeal the dismissal expired. | |
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 flow 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 flow 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, 2013 | |||||||||||||||||||||||
Reinsurance [Abstract] | ' | ||||||||||||||||||||||
Reinsurance | ' | ||||||||||||||||||||||
6. REINSURANCE | |||||||||||||||||||||||
The Company participates in reinsurance with its affiliates Prudential of Taiwan, PARCC, UPARC, Pruco Re, PAR TERM, PURC, and PAR U, and its parent company, Prudential Insurance, in order to provide risk diversification, additional capacity for future growth and limit the maximum net loss potential. On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. 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. The affiliated reinsurance agreements are described further in Note 13. | |||||||||||||||||||||||
The Company has entered into various reinsurance agreements with an affiliate, Pruco Re, to reinsure its living benefit features sold on certain of its annuities as part of its risk management and capital management strategies. For additional details on these agreements, see Note 13. | |||||||||||||||||||||||
Reinsurance premiums, commissions, expense reimbursements, benefits and 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. The affiliated reinsurance agreements are described further in Note 13. | |||||||||||||||||||||||
Reinsurance amounts included in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) for the three years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Premiums direct and assumed | $ | 1,319,390 | $ | 1,221,990 | $ | 1,127,239 | |||||||||||||||||
Premiums ceded | -1,262,539 | -1,153,854 | -1,054,452 | ||||||||||||||||||||
Premiums | $ | 56,851 | $ | 68,136 | $ | 72,787 | |||||||||||||||||
Policy charges and fees direct and assumed | $ | 2,401,216 | $ | 2,048,167 | $ | 1,438,273 | |||||||||||||||||
Policy charges and fees ceded | -520,291 | -513,404 | -328,778 | ||||||||||||||||||||
Policy charges and fees | $ | 1,880,925 | $ | 1,534,763 | $ | 1,109,495 | |||||||||||||||||
Policyholders’ benefits direct and assumed | $ | 1,260,166 | $ | 1,666,650 | $ | 1,445,993 | |||||||||||||||||
Policyholders’ benefits ceded | -1,081,242 | -1,313,157 | -1,133,782 | ||||||||||||||||||||
Policyholders’ benefits | $ | 178,924 | $ | 353,494 | $ | 312,211 | |||||||||||||||||
Realized capital gains (losses) net, associated | |||||||||||||||||||||||
with derivatives | $ | -2,058,885 | $ | -53,842 | $ | 1,185,096 | |||||||||||||||||
Assumed balances are subsequently 100% retroceded to PAR U. | |||||||||||||||||||||||
Reinsurance premiums ceded for interest-sensitive life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. | |||||||||||||||||||||||
Realized investment gains and losses include the impact of reinsurance agreements that are accounted for as embedded derivatives. Changes in the fair value of the embedded derivatives are recognized through “Realized investment gains (losses).” The Company has entered into reinsurance agreements to transfer the risk related to certain living benefit options on variable annuities to Pruco Re. The Company also entered into an agreement with UPARC to reinsure a portion of the no-lapse guarantee provision on certain universal life products. See Note 13 for additional information on reinsurance agreements with affiliates. These reinsurance agreements are derivatives and have been accounted for in the same manner as an embedded derivative. See Note 11 for additional information related to the accounting for embedded derivatives. | |||||||||||||||||||||||
Reinsurance recoverables included in the Company's Consolidated Statements of Financial Position as of December 31, were as follows: | |||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Domestic life insurance-affiliated | $ | 12,494,746 | $ | 4,619,282 | |||||||||||||||||||
Domestic individual annuities-affiliated (1) | 642 | 1,287,660 | |||||||||||||||||||||
Domestic life insurance-unaffiliated | 4,832 | 9,673 | |||||||||||||||||||||
Taiwan life insurance-affiliated | 1,157,639 | 1,115,560 | |||||||||||||||||||||
$ | 13,657,859 | $ | 7,032,175 | ||||||||||||||||||||
(1) December 31, 2013 excludes $388 million reclassed to other liabilities due to the mark-to-market impact discussed above. | |||||||||||||||||||||||
Substantially all reinsurance contracts are with affiliates as of December 31, 2013, 2012 and 2011. These contracts are described further in Note 13. | |||||||||||||||||||||||
The gross and net amounts of life insurance face amount in force as of December 31, were as follows: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Direct gross life insurance face amount in force | $ | 661,834,408 | $ | 612,238,145 | $ | 569,684,855 | |||||||||||||||||
Assumed gross life insurance face amount in force | 44,691,950 | - | - | ||||||||||||||||||||
Reinsurance ceded | -650,340,432 | -557,559,303 | -517,857,797 | ||||||||||||||||||||
Net life insurance face amount in force | $ | 56,185,926 | $ | 54,678,842 | $ | 51,827,058 | |||||||||||||||||
Related_Party
Related Party | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | ||||||||||||||||||
Related Party Transactions [Abstract] | ' | ' | |||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ' | |||||||||||||||||
Contributed Capital and Dividends | 13. RELATED PARTY TRANSACTIONS | ||||||||||||||||||
In July and December of 2013 the Company paid dividends in the amounts of $155 million and $268 million respectively to Prudential Insurance. | |||||||||||||||||||
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 also 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 years ended December 31, 2013 and 2012 and less than $1 million for the year ended December 31, 2011. The expense charged to the Company for the deferred compensation program was $7 million, $6 million and $7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
The Company is charged for its share of employee benefits expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final group earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during career. The Company's share of net expense for the pension plans was $22 million, $18 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
Prudential Insurance sponsors voluntary savings plans for its employee's 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $8 million for years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||
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 products. Commissions and fees are paid by PAD to broker-dealers who sell the Company's products. Commissions and fees paid by the Company to PAD were $877 million, $1,222 million and $1,144 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
Corporate Owned Life Insurance | |||||||||||||||||||
The Company has sold four Corporate Owned Life Insurance or, “COLI,” policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,595 million at December 31, 2013 and $2,390 million at December 31, 2012. Fees related to these COLI policies were $42 million, $35 million and $33 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company retains the majority of the mortality risk associated with these COLI policies. In October 2013, the Company increased the maximum amount of mortality risk on any life to $3.5 million for certain COLI policies. | |||||||||||||||||||
Derivative Trades | |||||||||||||||||||
In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. | |||||||||||||||||||
Reinsurance with Affiliates | |||||||||||||||||||
The Company participates in reinsurance with its affiliates Prudential of Taiwan, PARCC, UPARC, Pruco Re, PAR TERM, PURC and PAR U, and its parent company, Prudential Insurance, in order to provide risk diversification, additional capacity for future growth and limit the maximum net loss potential. The Company is not relieved of its primary obligation to the policyholder as a result of these agreements. | |||||||||||||||||||
Reinsurance amounts included in the Company's Consolidated Statements of Financial Position at December 31, were as follows: | |||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Reinsurance recoverable | $ | 13,657,859 | $ | 7,032,175 | |||||||||||||||
Policy loans | -64,720 | -52,767 | |||||||||||||||||
Deferred policy acquisition costs | -1,627,838 | -1,112,195 | |||||||||||||||||
Policyholders' account balances | 4,681,356 | - | |||||||||||||||||
Future policy benefits and other policyholder liabilities | 1,359,340 | - | |||||||||||||||||
Other liabilities (reinsurance payables) | 618,781 | 309,478 | |||||||||||||||||
The reinsurance recoverables by counterparty is broken out below. | |||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
UPARC | $ | 44,835 | $ | 28,655 | |||||||||||||||
PAR U | 8,091,712 | 1,633,026 | |||||||||||||||||
PURC | 940,218 | - | |||||||||||||||||
PARCC | 2,411,157 | 2,299,391 | |||||||||||||||||
PAR TERM | 816,787 | 486,012 | |||||||||||||||||
Prudential Insurance | 190,035 | 172,198 | |||||||||||||||||
Pruco Re (1) | 642 | 1,287,660 | |||||||||||||||||
Prudential of Taiwan | 1,157,639 | 1,115,560 | |||||||||||||||||
Unaffiliated | 4,832 | 9,673 | |||||||||||||||||
Total Reinsurance Recoverables | $ | 13,657,859 | $ | 7,032,175 | |||||||||||||||
(1) December 31, 2013 excludes $388 million reclassed to other liabilities due to the mark-to-market impact discussed above. | |||||||||||||||||||
Reinsurance amounts, excluding investment gains (losses) on affiliated asset transfers, included in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) at December 31, were as follows: | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Premiums | $ | -1,262,539 | $ | -1,153,853 | $ | -1,054,452 | |||||||||||||
Policy charges and fee income | -475,692 | -513,404 | -328,778 | ||||||||||||||||
Net investment income | -2,096 | -1,500 | -808 | ||||||||||||||||
Other income | -31,119 | 30,303 | 3,183 | ||||||||||||||||
Interest credited to policyholders' account balance | -72,977 | -51,990 | -23,998 | ||||||||||||||||
Policyholders' benefits | -1,325,428 | -1,313,157 | -1,133,782 | ||||||||||||||||
Reinsurance expense allowances, net of capitalization and amortization | -181,440 | -249,008 | -132,961 | ||||||||||||||||
Realized investment gains (losses) net | -2,058,885 | -53,842 | 1,185,096 | ||||||||||||||||
UPARC | |||||||||||||||||||
Through June 30, 2011 the Company, excluding its subsidiaries, reinsured its Universal Protector policies having no-lapse guarantees with UPARC, an affiliated company. UPARC reinsured an amount equal to 90% of the net amount at risk related to the first $1 million in face amount plus 100% of the net amount at risk related to the face amount in excess of $1 million as well as 100% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. | |||||||||||||||||||
Effective July 1, 2011, the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was amended for policies with effective dates prior to January 1, 2011. Under the amended agreement, UPARC reinsures an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. During the first quarter of 2013, the agreement between the Company and UPARC was further amended to revise language relating to the consideration due to the Company. | |||||||||||||||||||
Effective July 1, 2013 the agreement between the Company and UPARC to reinsure its Universal Protector policies having no-lapse guarantees was further amended for policies with effective dates January 1, 2011 through December 31, 2012. Under the amended agreement, UPARC reinsures an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies. Policies with effective dates January 1, 2013 through December 31, 2013 are reinsured with UPARC under the terms of the initial reinsurance agreement described above. | |||||||||||||||||||
PAR U | |||||||||||||||||||
Effective July 1, 2011, the Company, excluding its subsidiaries, entered into an automatic coinsurance agreement with PAR U, an affiliated company, to reinsure an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies, with effective dates prior to January 1, 2011. During the first quarter of 2013, the agreement between the Company, excluding its subsidiaries, and PAR U was amended to revise language relating to the consideration due to PAR U. | |||||||||||||||||||
Effective July 1, 2012, the Company's wholly owned subsidiary, PLNJ, entered into an automatic coinsurance agreement with PAR U, an affiliated company, to reinsure an amount equal to 95% of all the risks associated with its universal life policies. During the fourth quarter of 2012, the agreement between PLNJ and PAR U was amended to revise language relating to the consideration due to PAR U. | |||||||||||||||||||
On January 2, 2013 the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of the GUL business does not have a material impact on the equity of the Company. | |||||||||||||||||||
Effective July 1, 2013, the agreement between the Company, excluding its subsidiaries, and PAR U was amended for policies with effective dates from January 1, 2011 through December 31, 2012. Under the amended agreement, PAR U reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies, with effective dates from January 1, 2011 through December 31, 2012 in addition to policies covered by the initial reinsurance agreement discussed above. | |||||||||||||||||||
Effective October 1, 2013, the Company entered into an Assumption and Novation Agreement with PAR U and PURC. Under this agreement, PAR U novates, assigns, and transfers to PURC all of its rights, title, interests, duties, obligations, and liabilities under the aforementioned amendment entered into on July 1, 2013. PURC will succeed PAR U and become the counterparty to the Company with respect to the novated business. There is no financial impact to the Company as a result of this transaction. | |||||||||||||||||||
PURC | |||||||||||||||||||
The Company, excluding its subsidiaries, reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no lapse guarantees as well as its Universal Plus policies, with effective dates from January 1, 2011 through December 31, 2012. | |||||||||||||||||||
PARCC | |||||||||||||||||||
The Company reinsures 90% of the risk 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 risk 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 Insurance | |||||||||||||||||||
The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. | |||||||||||||||||||
On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. | |||||||||||||||||||
The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract. | |||||||||||||||||||
Pruco Re | |||||||||||||||||||
The Company uses reinsurance as part of its risk management and capital management strategies for certain of its optional living benefit features. Starting from 2005, the Company has entered into various automatic coinsurance agreements with Pruco Re, an affiliated company, to reinsure its living benefit features sold on certain of its annuities. | |||||||||||||||||||
Taiwan Branch Reinsurance Agreement | |||||||||||||||||||
On January 31, 2001, the Company transferred all of its assets and liabilities associated with its Taiwan branch, including its Taiwan insurance book of business to Prudential of Taiwan, an affiliated company. | |||||||||||||||||||
The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, the Company is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against the Company. | |||||||||||||||||||
The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under accounting principles generally accepted in the United States. Under this accounting treatment, the insurance related liabilities remain on the books of the Company and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in US dollars. | |||||||||||||||||||
Affiliated Asset Administration Fee Income | |||||||||||||||||||
The Company participates in a revenue sharing agreement with AST Investment Services, Inc., formerly known as American Skandia Investment Services, Inc, whereby the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust, formerly known as American Skandia Trust. Income received from AST Investment Services, Inc. related to this agreement was $311 million, $227 million and $153 million for the years ended December 31, 2013, 2012 and 2011, respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||||
The Company participates in a revenue sharing agreement with Prudential Investments LLC, whereby the Company receives fee income from policyholders' account balances invested in The Prudential Series Fund (“PSF”). Income received from Prudential Investments LLC, related to this agreement was $11 million for the years ended December 31, 2013, 2012 and 2011. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||||
Affiliated Investment Management Expenses | |||||||||||||||||||
In accordance with an agreement with Prudential Investment Management, Inc. (“PIMI”), the Company pays investment management expenses to PIMI who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PIMI related to this agreement was $14.6 million, $14.1 million and $13.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. These expenses are recorded as “Net Investment Income” in the Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||||
Affiliated Asset Transfers | |||||||||||||||||||
From time to time, the Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within Additional paid-in-capital ("APIC") and Realized investment gain(loss), respectively. | |||||||||||||||||||
Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | Realized Investment Gain/ (Loss) | Derivative Gain/ (Loss) | |||||||||||
(in millions) | |||||||||||||||||||
UPARC | 11-Oct | Transfer In | Fixed Maturities | $ | 350 | $ | - | $ | - | $ | - | $ | 37 | ||||||
PAR U | 11-Oct | Transfer Out | Fixed Maturities | 1,006 | 943 | - | 63 | -61 | |||||||||||
PAR U | 11-Oct | Sale | Fixed Maturities | 92 | 84 | - | 8 | - | |||||||||||
Prudential Financial | 11-Nov | Sale | Fixed Maturities | 45 | 41 | 3 | - | - | |||||||||||
Prudential Insurance | 11-Dec | Sale | Commercial Loans | 21 | 19 | 1 | - | - | |||||||||||
PARCC | 11-Dec | Sale | Fixed Maturities | 38 | 36 | - | 2 | - | |||||||||||
Prudential Insurance | 12-Apr | Purchased | Fixed Maturities | 3 | 2 | -1 | - | - | |||||||||||
Prudential Financial | 12-Apr | Purchased | Fixed Maturities | 28 | 25 | -2 | - | - | |||||||||||
Prudential Insurance | 12-Jun | Purchased | Fixed Maturities | 91 | 74 | -11 | - | - | |||||||||||
PAR U | 12-Sep | Sale | Fixed Maturities & Commercial Mortgages | 156 | 142 | - | 14 | -5 | |||||||||||
Prudential Financial | 12-Sep | Transfer Out | Fixed Maturities | 46 | 41 | 3 | - | - | |||||||||||
Prudential Insurance | 12-Nov | Purchased | Fixed Maturities | 110 | 102 | -5 | - | - | |||||||||||
Prudential Financial | 12-Nov | Purchased | Fixed Maturities | 12 | 12 | -1 | - | - | |||||||||||
Prudential Insurance | 12-Dec | Purchased | Fixed Maturities | 59 | 56 | -2 | - | - | |||||||||||
Prudential Insurance | 13-Jan | Transfer In | Fixed Maturities | 126 | 108 | -12 | - | - | |||||||||||
PAR U | 13-Jan | Transfer Out | Fixed Maturities | 126 | 108 | - | 18 | - | |||||||||||
Prudential Insurance | 13-Jan | Transfer In | Fixed Maturities, Commercial Mortgages, Short-term Investments, & Trading Account Assets | 4,825 | 4,825 | -1 | - | - | |||||||||||
PAR U | 13-Jan | Transfer Out | Fixed Maturities, Commercial Mortgages, Short-term Investments, & Trading Account Assets | 4,826 | 4,821 | - | 5 | - | |||||||||||
UPARC | 13-Feb | Transfer In | Fixed Maturities | 56 | 52 | - | - | - | |||||||||||
PAR U | 13-Feb | Transfer Out | Fixed Maturities | 132 | 122 | - | 10 | - | |||||||||||
Prudential Insurance | 13-Mar | Purchased | Fixed Maturities | 47 | 44 | -2 | - | - | |||||||||||
Prudential Insurance | 13-Sep | Sale | Commercial Mortgages | 2 | 2 | 1 | - | - | |||||||||||
Prudential Financial | 13-Sep | Transfer Out | Fixed Maturities | 25 | 25 | -1 | - | - | |||||||||||
UPARC | 13-Sep | Transfer In | Fixed Maturities & Private Equity | 192 | 189 | - | - | 3 | |||||||||||
PARU | 13-Sep | Transfer Out | Fixed Maturities, Commercial Mortgages, & Private Equity | 704 | 694 | - | 10 | -15 | |||||||||||
Debt Agreements | |||||||||||||||||||
The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. | |||||||||||||||||||
The following table provides the breakout of the Company's short-term and long-term debt with affiliates: | |||||||||||||||||||
Affiliate | Date Issued | Amount of Notes - December 31, 2013 | Amount of Notes - December 31, 2012 | Interest Rate | Date of Maturity | ||||||||||||||
(in thousands) | |||||||||||||||||||
PFI | 11/15/10 | $ | 66,000 | $ | 66,000 | 3.01% | 11/13/15 | ||||||||||||
PFI | 6/20/11 | 150,000 | 200,000 | 1.64% - 3.17% | 6/2013 - 6/2016 | ||||||||||||||
PFI | 12/15/11 | 159,000 | 212,000 | 2.65% - 3.61% | 12/2013 - 12/2016 | ||||||||||||||
PFI | 12/16/11 | 33,000 | 44,000 | 2.65% - 3.61% | 12/2013 - 12/2016 | ||||||||||||||
PFI | 12/20/12 | 88,000 | 267,000 | 1.37% | 12/15/15 | ||||||||||||||
Prudential Insurance | 12/20/10 | 204,000 | 204,000 | 3.47% | 12/21/15 | ||||||||||||||
Washington Street Investment | 6/20/12 | 316,000 | 395,000 | 1.15% - 3.02% | 6/2013 - 6/2017 | ||||||||||||||
Washington Street Investment | 12/17/12 | 264,000 | 330,000 | 0.95% - 1.87% | 12/2013 - 12/2017 | ||||||||||||||
Washington Street Investment | 12/17/12 | 52,000 | 65,000 | 0.95% - 1.87% | 12/2013 - 12/2017 | ||||||||||||||
PFI | 11/15/13 | 9,000 | - | 2.24% | 12/15/18 | ||||||||||||||
PFI | 11/15/13 | 23,000 | - | 3.19% | 12/15/20 | ||||||||||||||
Prudential Insurance | 12/6/13 | 120,000 | - | 2.60% | 12/15/18 | ||||||||||||||
Prudential Insurance | 12/6/13 | 130,000 | - | 4.39% | 12/15/23 | ||||||||||||||
Prudential Insurance | 12/6/13 | 250,000 | - | 3.64% | 12/15/20 | ||||||||||||||
Pru Funding, LLC | 12/31/13 | 2,900 | - | 0.23% | 1/7/14 | ||||||||||||||
Total Loans Payable to Affiliates | $ | 1,866,900 | $ | 1,783,000 | |||||||||||||||
The total interest expense to the Company related to loans payable to affiliates was $40.2 million, $43.7 million, and $33.1 million for the twelve months ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
QuarterlyFinancialDataAbstract | ' | ||||||||||||||
QuarterlyFinancialInformationTextBlock | ' | ||||||||||||||
14. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
The unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 are summarized in the table below: | |||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||
(in thousands) | |||||||||||||||
2013 | |||||||||||||||
Total revenues | $ | 690,333 | $ | 656,314 | $ | 681,086 | $ | 668,041 | |||||||
Total benefits and expenses | 235,444 | 229,901 | -178,013 | 303,812 | |||||||||||
Income (loss) from operations before income taxes | 454,889 | 426,413 | 859,099 | 364,229 | |||||||||||
Net income (loss) | $ | 347,055 | $ | 311,997 | $ | 577,646 | $ | 301,512 | |||||||
2012 | |||||||||||||||
Total revenues | $ | 498,074 | $ | 561,203 | $ | 540,685 | $ | 624,315 | |||||||
Total benefits and expenses | -140,737 | 1,054,097 | 181,818 | 263,722 | |||||||||||
Income (loss) from operations before income taxes | 638,811 | -492,894 | 358,867 | 360,593 | |||||||||||
Net income (loss) | $ | 461,304 | $ | -353,363 | $ | 315,599 | $ | 260,797 | |||||||
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Business and Basis of Presentation [Abstract] | ' |
Basis of Presentation, Policy | ' |
Basis of Presentation | |
The Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. Intercompany balances and transactions have been eliminated. | |
Use of Estimates, Policy | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. | |
Reclassifications, Policy | ' |
Reclassifications | |
Certain amounts in prior periods have been reclassified to conform to the current period presentation. | |
Acquisition of The Hartfords Individual Life Insurance Business | ' |
Acquisition of The Hartford's Individual Life Insurance Business | |
On January 2, 2013, Prudential Insurance acquired the individual life insurance business of The Hartford Financial Services Group, Inc. (“The Hartford”) through a reinsurance transaction. Under the agreement, Prudential Insurance paid The Hartford cash consideration of $615 million, primarily in the form of a ceding commission to provide reinsurance for approximately 700,000 life insurance policies with net retained face amount in force of approximately $141 billion. This acquisition increases our scale in the U.S. individual life insurance market, particularly universal life products, and provides complimentary distribution opportunities through expanded wirehouse and bank distribution channels. | |
In connection with this transaction, Prudential Insurance retroceded to the Company, the portion of the assumed business that is classified as guaranteed universal life insurance (“GUL”) with account values of approximately $4 billion as of January 2, 2013. The Company has reinsured more than 79,000 GUL policies with a net retained face amount in force of approximately $30 billion. The Company then retroceded all of the GUL policies to an affiliated captive reinsurance company. Collectively, these transactions do not have a material impact on equity, as determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), or the statutory capital and surplus of the Company. | |
Significant_Accounting_Policie1
Significant Accounting Policies and Pronouncements (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Investments in Debt, Equity Securities, and Commercial Mortgage and Other Loans | ' |
2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS | |
Investments and Investment Related Liabilities | |
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. Investments and investment-related liabilities also include securities repurchase and resale agreements and securities lending transactions. The accounting policies related to each are as follows: | |
Fixed maturities are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest income, as well as the related amortization of premium and accretion of discount is included in “Net investment income” under the effective yield method. 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 other-than-temporary impairments 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 security 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 other than temporary impairment 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, and the effect on deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”), future policy benefits, and policyholder account balances that would result from the realization of unrealized gains and losses, 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 “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” | |
Equity securities, available-for-sale, at fair value, are 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 deferred policy acquisition costs, DSI, future policy benefits, and policyholder 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 recognized in “Net investment income” when earned. | |
Commercial mortgage and other loans consist of commercial mortgage loans, agricultural 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, as well as prepayment fees and the amortization of the related premiums or discounts, related to commercial mortgage and other loans, are 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 three categories. Loans are placed on “early warning” status in cases where, based on the Company's analysis of the loan's collateral, the financial situation of the borrower or tenants or other market factors, it is believed a loss of principal or interest could occur. 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 smaller loan-to-value ratio indicates a greater 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 larger debt service coverage ratio indicates a greater 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 loan portfolio, 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, 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 portfolio segments considers 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 each quarter 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 to 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. | |
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, or 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. 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. Securities to be repurchased are the same, or substantially the same, as those sold. 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 and administrative 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. 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 and administrative expenses"). | |
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 either accounted for using the equity method of accounting or under 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. 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 investment 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 other-than-temporary impairment), 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, 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 sale 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 other-than-temporary impairments recognized in earnings. Realized investment gains and losses are also generated from prepayment premiums received on private fixed maturity securities, 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 other-than-temporary impairments 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 other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (a) has the intent to sell the debt security or (b) 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 other-than-temporary impairment is recognized. | |
When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment 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 other-than-temporary impairment 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 other-than-temporary impairments 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 other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. | |
For debt securities, the split between the amount of an other-than-temporary impairment recognized in other comprehensive income and the net amount recognized in earnings 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 other-than-temporary impairment, 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 deferred policy acquisition costs, DSI, certain future policy benefits, policyholder 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 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 vary with and that are directly related 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 include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. See below under "Adoption of New Accounting Pronouncements" for a discussion of the authoritative guidance adopted effective January 1, 2012, regarding which costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. 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. | |
Deferred policy acquisition costs related to interest sensitive and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts (at least 30 years) 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 the 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. In addition to the gross profit components previously mentioned, the impact of the embedded derivatives associated with certain optional living benefit features of the Company's variable annuity contracts and related hedging activities are also included in actual gross profits used as the basis for calculating current period amortization and, in certain instances, in management's estimate of total gross profits used for setting the amortization rate, regardless of which affiliated legal entity this activity occurs. 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 13. 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 "Amortization of deferred policy acquisition costs" 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. | |
Deferred Sales Inducements | ' |
Deferred Sales Inducements | |
The Company offered various types of sales inducements to contractholders 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, 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. See Note 7 for additional information regarding sales inducements. | |
Reinsurance Recoverable | ' |
Reinsurance recoverables | |
Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13. | |
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, fixed maturities, real estate related investments, real estate mortgage loans and short term investments and derivative instruments. The assets of each account are legally segregated and are generally 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 customers, 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 7 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, certain restricted assets, 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, derivatives, 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 is comprised of liabilities for guarantee benefits related to certain nontraditional long-duration life and annuity contracts, which are discussed more fully in Note 7. These reserves 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 10. | |
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 the Company's experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality 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 to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. | |
Policyholders Account Balances | ' |
Policyholders' Account Balances | |
The Company's liability for policyholders' account balances primarily 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 general accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the general account balance. These policyholders' account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. | |
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 interest-sensitive 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 inforce. Benefits are recorded as an expense when they are incurred. Benefits and expenses for these products also include amortization of DAC. A liability for future policy benefits is recorded when premiums are recognized using the net premium method. | |
Revenues for variable deferred annuity contracts consist of charges against contractholder account values for mortality and expense risks, administration fees, surrender charges and an annual maintenance fee per contract. Revenues for mortality and expense risk charges and administration fees are recognized as assessed against the contractholder. Surrender charge revenue is recognized when the surrender charge is assessed against the contractholder at the time of surrender. Benefits and expenses for these products also include amortization of DAC and DSI. Benefit reserves for the variable investment options on annuity contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Revenues for variable immediate annuity and supplementary contracts with life contingencies consist of certain charges against contractholder account values including mortality and expense risks and administration fees. These charges and fees are recognized as revenue when assessed against the contractholder. Benefit reserves for variable immediate annuity contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Revenues for fixed immediate annuity and fixed supplementary contracts with and without life contingencies consist of net investment income. In addition, revenues for fixed immediate annuity contracts with life contingencies also consist of single premium payments recognized as annuity considerations when received. Benefit reserves for these contracts are based on applicable actuarial standards with assumed interest rates that vary by contract year. Reserves for contracts without life contingencies are included in "Policyholders' account balances" while reserves for contracts with life contingencies are included in "future policy benefits and other policyholder liabilities." Assumed interest rates ranged from 0.00% to 14.75% at December 31, 2013, and from 1.00% to 14.75% at December 31, 2012. | |
Revenues for variable life insurance contracts consist of charges against contractholder account values or separate accounts for expense charges, administration fees, cost of insurance charges, taxes and surrender charges. Certain contracts also include charges against premium to pay state premium taxes. All of these charges are recognized as revenue when assessed against the contractholder. 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 also include amortization of DAC. Benefit reserves for variable life insurance contracts represent the account value of the contracts and are included in "Separate account liabilities." | |
Certain individual annuity contracts provide the holder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount, and certain individual life contracts provide no lapse guarantees. These benefits are accounted for as insurance contracts and are discussed in further detail in Note 7. The Company also provides contracts with certain living benefits which are considered embedded derivatives. These contracts are discussed in further detail in Note 7. | |
Amounts received as payment for interest-sensitive or variable contracts 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. | |
Premiums, benefits and expenses are stated net of reinsurance ceded to other companies. | |
Asset Management Fees And Other Income | ' |
Asset Administration Fees | |
The Company receives asset administration fee income from contractholders' account balances invested in The Prudential Series Funds or, "PSF," 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 Funds (see Note 13). 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 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 11, 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 trading account assets, at fair value” or “Other long-term investments,” or as liabilities, within “Other liabilities,” 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 income statement 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 income statement 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 has reinsurance agreements to transfer the risk related to certain of these benefit features to an affiliate, Pruco Reinsurance Ltd. (“Pruco Re”). 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 other policyholder liabilities” and “Reinsurance recoverables” or “Other liabilities,” respectively. Changes in the fair value are determined using valuation models as described in Note 10, 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,” and changes in “Realized investment gains (losses), net.” In the third quarter of 2011, the Company amended its reinsurance agreement resulting in a recapture of a portion of this business (See Note 13) effective July 1, 2011. Pursuant to the recapture amendment, the settlement of the recapture premium occurred subsequent to the effective date of the recapture. As a result, the recapture premium was 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 UPARC. This settlement feature was accounted for as a derivative. | |
Concurrent with the recapture discussed above, the Company entered into a new coinsurance agreement with an affiliate, PAR U effective July 1, 2011. The settlement of the initial coinsurance premium also occurred subsequent to the effective date of the coinsurance agreement and contains a settlement provision similar to the recapture premium, discussed above. The adjustment to the initial coinsurance premium was equal to the earned interest and changes in market values from the effective date through settlement date related to fixed maturity securities from both an asset portfolio within the Company, as well as an asset portfolio within UPARC. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
In the third quarter of 2012, the Company's wholly owned subsidiary, PLNJ, entered a new coinsurance agreement with an affiliate, PAR U effective July 1, 2012. The settlement of the initial coinsurance premium occurred subsequent to the effective date of the coinsurance agreement. As a result, the settlement was treated as if settled on the effective date and adjusted for the time elapsed between the effective date and the settlement date. This adjustment to the initial coinsurance premium was equal to the earned interest and changes in market values from the effective date through settlement date related to fixed maturity securities from an asset portfolio within PLNJ. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
In the third quarter of 2013, the Company further amended its reinsurance agreement with UPARC resulting in the recapture of a portion of this business (See Note 13 for additional information about this agreement) effective July 1, 2013. Pursuant to the recapture amendment, the settlement of the recapture premium occurred subsequent to the effective date of the recapture. As a result, the recapture premium was treated as if settled on the effective date and adjusted for the time elapsed between the effective date and the settlement date. This adjustment was equal to the interest earned from the effective date through the settlement date related to fixed maturity securities and commercial mortgages held by UPARC. This settlement feature was accounted for as a derivative. | |
Concurrent with the recapture discussed above, the Company, excluding its subsidiaries, amended its coinsurance agreement with PAR U effective July 1, 2013. The settlement of the initial coinsurance premium also occurred subsequent to the effective date and the amendment contains a settlement provision similar to the recapture premium discussed above. The adjustment to the coinsurance premium was equal to the interest earned from the effective date through the settlement date related to fixed maturity securities and commercial mortgages from both an asset portfolio within the Company, as well as an asset portfolio within UPARC. The settlement feature of this agreement was accounted for as a derivative (See Note 13 for additional information about this agreement). | |
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. 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. 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 13 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 income statement. 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 return 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 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 may consider 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. | |
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 9 for additional information regarding income taxes. | |
Adoption of New Accounting Pronouncements | ' |
Adoption of New Accounting Pronouncements | |
In December 2013, the Financial Accounting Standards Board (“FASB”) issued updated guidance establishing a single definition of a public entity for use in financial accounting and reporting guidance. This new guidance is effective for all current and future reporting periods and did not have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
In July 2013, the FASB issued new guidance regarding derivatives. The guidance permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting, in addition to the United States Treasury rate and London Inter-Bank Offered Rate (“LIBOR”). The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance is effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013 and should be applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In February 2013, the FASB issued updated guidance regarding the presentation of comprehensive income. Under the guidance, an entity is required to separately present information about significant items reclassified out of accumulated other comprehensive income by component as well as changes in accumulated other comprehensive income balances by component in either the financial statements or the notes to the financial statements. The guidance does not change the items that are reported in other comprehensive income, does not change when an item of other comprehensive income must be reclassified to net income, and does not amend any existing requirements for reporting net income or other comprehensive income. The guidance is effective for the first interim or annual reporting period beginning after December 15, 2012 and should be applied prospectively. The disclosures required by this guidance are included in Note 3. | |
In December 2011 and January 2013, the FASB issued updated guidance regarding the disclosure of recognized derivative instruments (including bifurcated embedded derivatives), repurchase agreements and securities borrowing/lending transactions that are offset in the statement of financial position or are subject to an enforceable master netting arrangement or similar agreement (irrespective of whether they are offset in the statement of financial position). This new guidance requires an entity to disclose information on both a gross and net basis about instruments and transactions within the scope of this guidance. This new guidance is effective for interim or annual reporting periods beginning on or after January 1, 2013, and should be applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 11. | |
Effective January 1, 2012, the Company adopted retrospectively new authoritative guidance to address diversity in practice regarding the interpretation of which costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. Under the amended guidance acquisition costs are to include only those costs that are directly related to the acquisition or renewal of insurance contracts by applying a model similar to the accounting for loan origination costs. An entity may defer incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits, and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. Prior period financial information presented in these financial statements has been adjusted to reflect the retrospective adoption of the amended guidance. The impact of the retrospective adoption of this guidance on previously reported December 31, 2011 and December 31, 2010 balances was a reduction in “Deferred policy acquisition costs” of $672 million and $684 million, an increase in “Policyholders' Account Balances” of $3 million and $3 million, and a reduction in “Total equity” of $469 million and $446 million, respectively. As of December 31, 2011, “Other Liabilities” increased $48 million and “Reinsurance Recoverables” increased $2 million related to the impact of this guidance on the 2011 coinsurance agreement with PAR U (see Note 13), The impact of the retrospective adoption of this guidance on previously reported income from continuing operations before income taxes for the years ended December 31, 2011, 2010 and 2009 was a decrease of $34 million, $125 million and $53 million, respectively. The lower level of costs now qualifying for deferral will be only partially offset by a lower level of amortization of “Deferred policy acquisition costs,” and, as such, will initially result in lower earnings in future periods primarily reflecting lower deferrals of wholesaler costs. While the adoption of this amended guidance changes the timing of when certain costs are reflected in the Company's results of operations, it has no effect on the total acquisition costs to be recognized over time and has no impact on the Company's cash flows. | |
In June 2011, the FASB issued updated guidance regarding the presentation of comprehensive income. The updated guidance eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. Under the updated guidance, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The updated guidance does not change the items that are reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The Company opted to present the total of comprehensive income, the components of net income, and the components of other comprehensive income in two separate but consecutive statements. The Consolidated Financial Statements included herein reflect the adoption of this updated guidance. | |
In May 2011, the FASB issued updated guidance regarding the fair value measurements and disclosure requirements. The updated guidance clarifies existing guidance related to the application of fair value measurement methods and requires expanded disclosures. This new guidance is effective for the first interim or annual reporting period beginning after December 15, 2011, and should be applied prospectively. The expanded disclosures required by this guidance are included in Note 10. Adoption of this guidance did not have a significant effect on the Company's consolidated financial position or results of operations. | |
In April 2011, the FASB issued updated guidance regarding the assessment of effective control for repurchase agreements. This new guidance is effective for the first interim or annual reporting period beginning on or after December 15, 2011, and should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. The Company's adoption of this guidance did not have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In April 2011, the FASB issued updated guidance clarifying which restructurings constitute troubled debt restructurings. It is intended to assist creditors in their evaluation of whether conditions exist that constitute a troubled debt restructuring. This new guidance is effective for the first interim or annual reporting period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual reporting period of adoption. The Company's adoption of this guidance in the third quarter of 2011 did not have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
Future Adoption of New Accounting Pronouncements | ' |
Future Adoption of New Accounting Pronouncements | |
In July 2013, the FASB issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013, and should be applied prospectively, with early application permitted. This guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, and financial statement disclosures. | |
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, or financial statement disclosures. | |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||
Fixed Maturities and Equity Securities, Available-for-sale Securities | ' | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Other-than- | |||||||||||||||||||||
Gross | Gross | temporary | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Impairments | |||||||||||||||||
Cost | Gains | Losses | Value | in AOCI (3) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. | |||||||||||||||||||||
government authorities and agencies | $ | 89,497 | $ | 5,910 | $ | 1,882 | $ | 93,525 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 83,807 | 1,518 | 6,374 | 78,951 | - | ||||||||||||||||
Foreign government bonds | 20,357 | 3,640 | - | 23,997 | - | ||||||||||||||||
Public utilities | 796,747 | 32,303 | 29,281 | 799,769 | - | ||||||||||||||||
Redeemable preferred stock | 681 | 126 | - | 807 | - | ||||||||||||||||
All other corporate securities | 3,661,419 | 168,717 | 89,343 | 3,740,793 | -252 | ||||||||||||||||
Asset-backed securities (1) | 216,081 | 8,687 | 2,677 | 222,091 | -7,783 | ||||||||||||||||
Commercial mortgage-backed securities | 510,255 | 20,316 | 8,563 | 522,008 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 160,089 | 10,870 | 1,499 | 169,460 | -973 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,538,933 | $ | 252,087 | $ | 139,619 | $ | 5,651,401 | $ | -9,008 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | 131 | $ | 29 | $ | - | $ | 160 | |||||||||||||
Industrial, miscellaneous & other | 4 | 12 | - | 16 | |||||||||||||||||
Mutual funds | 91 | 3 | 3 | 91 | |||||||||||||||||
Non-redeemable preferred stocks | 341 | 163 | - | 504 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 567 | $ | 207 | $ | 3 | $ | 771 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. | |||||||||||||||||||||
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. | |||||||||||||||||||||
Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $14 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. | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Other-than- | |||||||||||||||||||||
Gross | Gross | temporary | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Impairments | |||||||||||||||||
Cost | Gains | Losses | Value | in AOCI (3) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. | |||||||||||||||||||||
government authorities and agencies | $ | 172,541 | $ | 15,088 | $ | 10 | $ | 187,619 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 79,166 | 6,516 | 485 | 85,197 | - | ||||||||||||||||
Foreign government bonds | 21,709 | 5,802 | - | 27,511 | - | ||||||||||||||||
Public utilities | 620,654 | 68,512 | 1,334 | 687,832 | - | ||||||||||||||||
Redeemable preferred stock | 6,400 | 360 | - | 6,760 | - | ||||||||||||||||
Corporate securities | 3,601,052 | 309,470 | 6,480 | 3,904,042 | -344 | ||||||||||||||||
Asset-backed securities (1) | 360,258 | 19,362 | 6,146 | 373,474 | -21,330 | ||||||||||||||||
Commercial mortgage-backed securities | 446,558 | 42,932 | 69 | 489,421 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 353,917 | 20,228 | 236 | 373,909 | -1,095 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,662,255 | $ | 488,270 | $ | 14,760 | $ | 6,135,765 | $ | -22,769 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Industrial, miscellaneous & other (4) | 1,566 | 1,118 | - | 2,684 | |||||||||||||||||
Mutual funds (4) | 157 | 6 | 9 | 154 | |||||||||||||||||
Non-redeemable preferred stocks | 1,396 | 93 | - | 1,489 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 3,119 | $ | 1,217 | $ | 9 | $ | 4,327 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. | |||||||||||||||||||||
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. | |||||||||||||||||||||
Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $22 million of net unrealized gains or losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. | |||||||||||||||||||||
Prior period has been reclassified to conform to the current period presentation. | |||||||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||
Cost | Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due in one year or less | $ | 264,190 | $ | 268,309 | |||||||||||||||||
Due after one year through five years | 1,110,508 | 1,200,139 | |||||||||||||||||||
Due after five years through ten years | 1,422,256 | 1,463,339 | |||||||||||||||||||
Due after ten years | 1,855,554 | 1,806,055 | |||||||||||||||||||
Asset-backed securities | 216,081 | 222,091 | |||||||||||||||||||
Commercial mortgage-backed securities | 510,255 | 522,008 | |||||||||||||||||||
Residential mortgage-backed securities | 160,089 | 169,460 | |||||||||||||||||||
Total | $ | 5,538,933 | $ | 5,651,401 | |||||||||||||||||
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 816,125 | $ | 116,493 | $ | 218,200 | |||||||||||||||
Proceeds from maturities/repayments | 760,433 | 903,272 | 836,724 | ||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 60,261 | 31,720 | 83,600 | ||||||||||||||||||
Gross investment losses from sales and maturities | -22,380 | -1,171 | -411 | ||||||||||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 13,603 | $ | 9,862 | $ | 6,397 | |||||||||||||||
Proceeds from maturities/repayments | 3 | - | 3,958 | ||||||||||||||||||
Gross investment gains from sales | 1,337 | 1,027 | 3,857 | ||||||||||||||||||
Gross investment losses from sales | -791 | -529 | 0 | ||||||||||||||||||
Fixed maturity and equity security impairments | |||||||||||||||||||||
Net writedowns for other-than-temporary impairment losses | |||||||||||||||||||||
on fixed maturities recognized in earnings (1) | $ | -4,441 | $ | -6,236 | $ | -8,969 | |||||||||||||||
Writedowns for impairments on equity securities | -67 | -2,168 | -2,255 | ||||||||||||||||||
_____________ | |||||||||||||||||||||
Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. | |||||||||||||||||||||
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | ' | ||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 27,702 | $ | 31,507 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -14,330 | -4,126 | |||||||||||||||||||
Credit loss impairments previously recognized on securities impaired to fair value | |||||||||||||||||||||
during the period | - | -3,240 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | 31 | 15 | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | 798 | 2,266 | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 915 | 2,430 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -456 | -1,150 | |||||||||||||||||||
Balance, end of period | $ | 14,660 | $ | 27,702 | |||||||||||||||||
Trading Account Assets Disclosure | ' | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 14,118 | $ | 16,162 | $ | 7,647 | $ | 8,099 | |||||||||||||
Equity securities (1) | 1,388 | 2,730 | 3,083 | 3,277 | |||||||||||||||||
Total trading account assets | $ | 15,506 | $ | 18,892 | $ | 10,730 | $ | 11,376 | |||||||||||||
_____________ | |||||||||||||||||||||
Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities. | |||||||||||||||||||||
Commercial Mortgage and Other Loans | ' | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||||||
(in thousands) | Total | (in thousands) | Total | ||||||||||||||||||
Commercial mortgage and other loans by property type: | |||||||||||||||||||||
Retail | $ | 467,059 | 30.5 | % | $ | 461,939 | 31.4 | % | |||||||||||||
Apartments/Multi-Family | 298,365 | 19.5 | 239,623 | 16.3 | |||||||||||||||||
Industrial | 272,239 | 17.7 | 273,900 | 18.6 | |||||||||||||||||
Office | 195,499 | 12.8 | 237,566 | 16.2 | |||||||||||||||||
Other | 102,294 | 6.6 | 89,548 | 6.1 | |||||||||||||||||
Hospitality | 90,085 | 5.9 | 50,052 | 3.4 | |||||||||||||||||
Total commercial mortgage loans | 1,425,541 | 93 | 1,352,628 | 92 | |||||||||||||||||
Agricultural property loans | 107,118 | 7 | 117,377 | 8 | |||||||||||||||||
Total commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,532,659 | 100 | % | 1,470,005 | 100 | % | |||||||||||||||
Valuation allowance | -8,904 | -6,028 | |||||||||||||||||||
Total net commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,523,755 | 1,463,977 | |||||||||||||||||||
Other Loans | |||||||||||||||||||||
Uncollateralized loans | 8,410 | - | |||||||||||||||||||
Total other loans | 8,410 | - | |||||||||||||||||||
Total commercial mortgage and other loans | $ | 1,532,165 | $ | 1,463,977 | |||||||||||||||||
Allowance for Losses | ' | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for losses, beginning of year | $ | 6,028 | $ | 12,813 | $ | 21,428 | |||||||||||||||
Addition to / (release of) allowance of losses | 2,876 | -1,551 | -8,615 | ||||||||||||||||||
Charge-offs, net of recoveries | - | -5,234 | - | ||||||||||||||||||
Allowance for losses, end of year (1) | $ | 8,904 | $ | 6,028 | $ | 12,813 | |||||||||||||||
_____________ | |||||||||||||||||||||
Agricultural loans represent $0.3 million, $0.4 million and $0.4 million of the ending allowance at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | ' | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||
Ending balance: individually evaluated for impairment (1) | $ | 3,084 | $ | 372 | |||||||||||||||||
Ending balance: collectively evaluated for impairment (2) | 5,820 | 5,656 | |||||||||||||||||||
Total ending balance | $ | 8,904 | $ | 6,028 | |||||||||||||||||
Recorded Investment: (3) | |||||||||||||||||||||
Ending balance gross of reserves: individually evaluated for impairment (1) | $ | 6,392 | $ | 6,415 | |||||||||||||||||
Ending balance gross of reserves: collectively evaluated for impairment (2) | 1,534,677 | 1,463,590 | |||||||||||||||||||
Total ending balance, gross of reserves | $ | 1,541,069 | $ | 1,470,005 | |||||||||||||||||
_____________ | |||||||||||||||||||||
There were no agricultural or uncollateralized loans individually evaluated for impairments at December 31, 2013 and 2012. | |||||||||||||||||||||
Agricultural loans collectively evaluated for impairment had a recorded investment of $107 million and $117 million and a related allowance of $0.3 million and $0.4 million at December 31, 2013 and 2012, respectively. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million and $0 million at December 31, 2013 and 2012, respectively, and no related allowance for both periods. | |||||||||||||||||||||
Recorded investment reflects the balance sheet carrying value gross of related allowance. | |||||||||||||||||||||
Schedule Of Other Long Term Investments [Text Block] | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Company’s investment in Separate accounts | $ | 29,739 | $ | 28,584 | |||||||||||||||||
Joint ventures and limited partnerships | 196,538 | 136,977 | |||||||||||||||||||
Derivatives | 427 | 118,928 | |||||||||||||||||||
Total other long-term investments | $ | 226,704 | $ | 284,489 | |||||||||||||||||
Net Investment Income | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 278,747 | $ | 270,790 | $ | 300,850 | |||||||||||||||
Equity securities, available-for-sale | 1 | 52 | 227 | ||||||||||||||||||
Trading account assets | 657 | 981 | 1,582 | ||||||||||||||||||
Commercial mortgage and other loans | 84,006 | 84,232 | 81,282 | ||||||||||||||||||
Policy loans | 59,287 | 58,007 | 56,716 | ||||||||||||||||||
Short-term investments and cash equivalents | 654 | 1,003 | 1,052 | ||||||||||||||||||
Other long-term investments | 15,023 | 21,224 | 16,421 | ||||||||||||||||||
Gross investment income | 438,375 | 436,289 | 458,130 | ||||||||||||||||||
Less: investment expenses | -19,364 | -18,779 | -18,180 | ||||||||||||||||||
Net investment income | $ | 419,011 | $ | 417,510 | $ | 439,950 | |||||||||||||||
Realized Gain (Loss) on Investments | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 33,440 | $ | 24,314 | $ | 74,220 | |||||||||||||||
Equity securities | 480 | -1,670 | 1,602 | ||||||||||||||||||
Commercial mortgage and other loans | 5,494 | 7,307 | 8,615 | ||||||||||||||||||
Joint ventures and limited partnerships | -83 | - | -265 | ||||||||||||||||||
Derivatives | -52,799 | -186,425 | 177,855 | ||||||||||||||||||
Other | 18 | 27 | 56 | ||||||||||||||||||
Realized investment gains (losses), net | $ | -13,450 | $ | -156,447 | $ | 262,083 | |||||||||||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
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, 2010 | $ | 249 | $ | 182,850 | $ | 183,099 | |||||||||||||||
Change in component during period (2) | -116 | 30,645 | 30,529 | ||||||||||||||||||
Balance, December 31, 2011 | $ | 133 | $ | 213,495 | $ | 213,628 | |||||||||||||||
Change in component during period (2) | 124 | 53,709 | 53,833 | ||||||||||||||||||
Balance, December 31, 2012 | $ | 257 | $ | 267,204 | $ | 267,461 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | 224 | -290,636 | -290,412 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -33,920 | -33,920 | ||||||||||||||||||
Income tax benefit (expense) | -78 | 113,595 | 113,517 | ||||||||||||||||||
Balance, December 31, 2013 | $ | 403 | $ | 56,243 | $ | 56,646 | |||||||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges of ($5) million, $0 million and $3 million as of December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Net of taxes. | |||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Amounts reclassified from AOCI (1)(2): | |||||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||||
Cash flow hedges - Currency/Interest rate (3) | $ | 329 | $ | 1,754 | $ | -108 | |||||||||||||||
Net unrealized investment gains (losses) on available-for-sale securities (4) | 33,591 | 20,890 | 75,930 | ||||||||||||||||||
Total net unrealized investment gains (losses) | 33,920 | 22,644 | 75,822 | ||||||||||||||||||
Total reclassifications for the period | $ | 33,920 | $ | 22,644 | $ | 75,822 | |||||||||||||||
_____________ | |||||||||||||||||||||
All amounts are shown before tax. | |||||||||||||||||||||
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. | |||||||||||||||||||||
See Note 11 for additional information on cash flow hedges. | |||||||||||||||||||||
See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders' account balances. | |||||||||||||||||||||
Net Unrealized Investment Gain (Loss) AOCI Rollforward | ' | ||||||||||||||||||||
Net Unrealized Gains (Losses) on Investments | Deferred Policy Acquisition Costs and Other Costs | Future Policy Benefits and Policy Holder 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, 2010 | $ | -24,704 | $ | 13,813 | $ | -7,103 | $ | 6,271 | $ | -11,723 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | -3,779 | - | - | 1,322 | -2,457 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 9,623 | - | - | -3,369 | 6,254 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | 212 | - | - | -75 | 137 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -3,626 | - | 1,268 | -2,358 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 4,167 | -1,459 | 2,708 | ||||||||||||||||
Balance, December 31, 2011 | $ | -18,648 | $ | 10,187 | $ | -2,936 | $ | 3,958 | $ | -7,439 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 11,444 | - | - | -4,005 | 7,439 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 6,755 | - | - | -2,364 | 4,391 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | -169 | - | - | 59 | -110 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -9,892 | - | 3,462 | -6,430 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 3,499 | -1,225 | 2,274 | ||||||||||||||||
Balance, December 31, 2012 | $ | -618 | $ | 295 | $ | 563 | $ | -115 | $ | 125 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 1,053 | - | - | -369 | 684 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 4,114 | - | - | -1,440 | 2,674 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(1) | -51 | - | - | 18 | -33 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -3,619 | - | 1,266 | -2,353 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 1,256 | -439 | 817 | ||||||||||||||||
Balance, December 31, 2013 | $ | 4,498 | $ | -3,324 | $ | 1,819 | $ | -1,079 | $ | 1,914 | |||||||||||
_____________ | |||||||||||||||||||||
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. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | ' | ||||||||||||||||||||
Net Unrealized Gains (Losses) on Investments (1) | Deferred Policy Acquisition Costs and Other Costs | Future Policy Benefits and Policy Holder 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, 2010 | $ | 400,404 | $ | -194,158 | $ | 92,690 | $ | -104,367 | $ | 194,569 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 128,890 | - | - | -45,090 | 83,800 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -85,445 | - | - | 29,905 | -55,540 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | -212 | - | - | 73 | -139 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | 14,638 | - | -5,124 | 9,514 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -17,345 | 6,070 | -11,275 | ||||||||||||||||
Balance, December 31, 2011 | $ | 443,637 | $ | -179,520 | $ | 75,345 | $ | -118,533 | $ | 220,929 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 90,693 | - | - | -31,738 | 58,955 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -29,399 | - | - | 10,290 | -19,109 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | 169 | - | - | -59 | 110 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | -40,688 | - | 14,065 | -26,623 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 50,488 | -17,671 | 32,817 | ||||||||||||||||
Balance, December 31, 2012 | $ | 505,100 | $ | -220,208 | $ | 125,833 | $ | -143,646 | $ | 267,079 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | -343,964 | - | - | 120,388 | -223,576 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -38,034 | - | - | 13,312 | -24,722 | ||||||||||||||||
Reclassification adjustment for OTTI losses | |||||||||||||||||||||
excluded from net income(2) | 51 | - | - | -18 | 33 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on deferred policy acquisition costs | - | 177,178 | - | -62,012 | 115,166 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -122,540 | 42,889 | -79,651 | ||||||||||||||||
Balance, December 31, 2013 | $ | 123,153 | $ | -43,030 | $ | 3,293 | $ | -29,087 | $ | 54,329 | |||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges. See Note 11 for information on cash flow hedges. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
Unrealized Gains and (Losses) on Investments | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities on which an OTTI loss has been recognized | $ | 4,498 | $ | -618 | $ | -18,648 | |||||||||||||||
Fixed maturity securities, available-for-sale - all other | 107,970 | 474,128 | 411,366 | ||||||||||||||||||
Equity securities, available-for-sale | 204 | 1,208 | -1,359 | ||||||||||||||||||
Derivatives designated as cash flow hedges (1) | -4,701 | 147 | 2,523 | ||||||||||||||||||
Other investments | 19,680 | 29,617 | 31,107 | ||||||||||||||||||
Net unrealized gains (losses) on investments | $ | 127,651 | $ | 504,482 | $ | 424,989 | |||||||||||||||
_____________ | |||||||||||||||||||||
See Note 11 for more information on cash flow hedges. | |||||||||||||||||||||
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures | ' | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
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 | $ | 24,123 | $ | 1,882 | $ | - | $ | - | $ | 24,123 | $ | 1,882 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | 51,216 | 5,904 | 2,496 | 470 | 53,712 | 6,374 | |||||||||||||||
Foreign government bonds | - | - | - | - | - | - | |||||||||||||||
Corporate securities | 1,596,468 | 101,780 | 97,731 | 16,844 | 1,694,199 | 118,624 | |||||||||||||||
Asset-backed securities | 93,021 | 1,418 | 11,782 | 1,259 | 104,803 | 2,677 | |||||||||||||||
Commercial mortgage-backed securities | 116,371 | 6,706 | 19,605 | 1,857 | 135,976 | 8,563 | |||||||||||||||
Residential mortgage-backed securities | 42,121 | 1,472 | 3,225 | 27 | 45,346 | 1,499 | |||||||||||||||
Total | $ | 1,923,320 | $ | 119,162 | $ | 134,839 | $ | 20,457 | $ | 2,058,159 | $ | 139,619 | |||||||||
31-Dec-12 | |||||||||||||||||||||
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 | $ | 4,338 | $ | 10 | $ | - | $ | - | $ | 4,338 | $ | 10 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | 21,128 | 485 | - | - | 21,128 | 485 | |||||||||||||||
Foreign government bonds | - | - | - | - | - | - | |||||||||||||||
Corporate securities | 290,127 | 7,070 | 18,221 | 744 | 308,348 | 7,814 | |||||||||||||||
Asset-backed securities | 44,821 | 76 | 24,997 | 6,070 | 69,818 | 6,146 | |||||||||||||||
Commercial mortgage-backed securities | 12,549 | 60 | 521 | 9 | 13,070 | 69 | |||||||||||||||
Residential mortgage-backed securities | 20,276 | 164 | 4,347 | 72 | 24,623 | 236 | |||||||||||||||
Total | $ | 393,239 | $ | 7,865 | $ | 48,086 | $ | 6,895 | $ | 441,325 | $ | 14,760 | |||||||||
Duration Of Gross Unrealized Losses On Equity Securities | ' | ||||||||||||||||||||
Equity securities, available-for-sale | $ | 44 | $ | 3 | $ | - | $ | - | $ | 44 | $ | 3 | |||||||||
Equity securities, available-for-sale | $ | 54 | $ | 9 | $ | - | $ | - | $ | 54 | $ | 9 | |||||||||
Securities Pledged | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities, available for sale | $ | 81,849 | $ | 46,115 | |||||||||||||||||
Trading account assets | - | 187 | |||||||||||||||||||
Equity Securities | - | 9 | |||||||||||||||||||
Total securities pledged | $ | 81,849 | $ | 46,311 |
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DeferredPolicyAcquisitionCostsDisclosures[Abstract] | ' | ||||||||||||
Schedule Of Deferred Acquisition Costs Table | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 3,679,061 | $ | 2,545,600 | $ | 2,693,689 | |||||||
Capitalization of commissions, sales and issue expenses | 822,075 | 1,171,759 | 1,096,301 | ||||||||||
Amortization- Impact of assumption and experience unlocking and true-ups | -9,167 | 60,313 | -25,242 | ||||||||||
Amortization- All other | 533,478 | -21,345 | -947,961 | ||||||||||
Change in unrealized investment gains and losses | 167,880 | -53,651 | 9,973 | ||||||||||
Ceded DAC upon Coinsurance Treaty with PAR U and PURC (See Note 13) | -159,028 | -23,616 | -281,160 | ||||||||||
Balance, end of year | $ | 5,034,299 | $ | 3,679,061 | $ | 2,545,600 |
Policyholders_Liabilities_Tabl
Policyholders Liabilities (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
LiabilityForPolicyAndContractClaims[Abstract] | ' | ||||||||||
ScheduleOfLiabilityForFuturePolicyBenefitsByProductSegmentTextBlock | ' | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Life insurance – domestic | $ | 5,768,262 | $ | 3,804,994 | |||||||
Life insurance – Taiwan | 1,151,503 | 1,109,723 | |||||||||
Individual and group annuities | 320,451 | 338,505 | |||||||||
Policy claims and other contract liabilities | -323,547 | 1,443,591 | |||||||||
Total future policy benefits | $ | 6,916,669 | $ | 6,696,813 | |||||||
Schedule Of Policyholders Account Balances | ' | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Interest-sensitive life contracts | $ | 11,456,129 | $ | 5,327,169 | |||||||
Individual annuities | 1,624,523 | 1,736,810 | |||||||||
Guaranteed interest accounts | 450,738 | 820,502 | |||||||||
Other | 771,941 | 672,596 | |||||||||
Total policyholders’ account balances | $ | 14,303,330 | $ | 8,557,077 |
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | - | $ | 93,525 | $ | - | $ | - | $ | 93,525 | |||||||||||||||||||||||||||||||||||
Obligations of U.S. states and their political subdivisions | - | 78,951 | - | - | 78,951 | ||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | - | 23,997 | - | - | 23,997 | ||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 4,523,076 | 18,293 | - | 4,541,369 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 141,157 | 80,934 | - | 222,091 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 522,008 | - | - | 522,008 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | - | 169,460 | - | - | 169,460 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 5,552,174 | 99,227 | - | 5,651,401 | ||||||||||||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 14,183 | - | - | 14,183 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 1,978 | - | - | 1,978 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Equity securities | - | - | 2,731 | - | 2,731 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 16,161 | 2,731 | - | 18,892 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available for sale | 112 | 90 | 569 | - | 771 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 9,216 | 6,768 | 18 | - | 16,002 | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | 5,962 | 199,825 | - | - | 205,787 | ||||||||||||||||||||||||||||||||||||||||
Other long-term investments | - | 73,647 | 1,168 | -73,219 | 1,596 | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | - | - | 11,400 | - | 11,400 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 170,761 | 4,121 | - | 174,882 | ||||||||||||||||||||||||||||||||||||||||
Sub-total excluding separate account assets | 15,290 | 6,019,426 | 119,234 | -73,219 | 6,080,731 | ||||||||||||||||||||||||||||||||||||||||
Separate account assets (2) | 973,192 | 99,149,315 | 279,842 | - | 100,402,349 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 988,482 | $ | 105,168,741 | $ | 399,076 | $ | -73,219 | $ | 106,483,080 | |||||||||||||||||||||||||||||||||||
Future policy benefits (4) | $ | - | $ | - | $ | -348,399 | $ | - | $ | -348,399 | |||||||||||||||||||||||||||||||||||
Other liabilities (3) | - | 218,467 | 388,268 | -73,051 | 533,684 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 218,467 | $ | 39,869 | $ | -73,051 | $ | 185,285 | |||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | - | $ | 187,619 | $ | - | $ | - | $ | 187,619 | |||||||||||||||||||||||||||||||||||
Obligations of U.S. states and their political subdivisions | - | 85,197 | - | - | 85,197 | ||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | - | 27,511 | - | - | 27,511 | ||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 4,561,653 | 36,981 | - | 4,598,634 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 264,747 | 108,727 | - | 373,474 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 489,421 | - | - | 489,421 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | - | 373,909 | - | - | 373,909 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 5,990,057 | 145,708 | - | 6,135,765 | ||||||||||||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 4,008 | - | - | 4,008 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 4,091 | - | - | 4,091 | ||||||||||||||||||||||||||||||||||||||||
Equity securities | - | - | 3,277 | - | 3,277 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 8,099 | 3,277 | - | 11,376 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available for sale | 2,683 | 155 | 1,489 | - | 4,327 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 81,308 | 31,029 | - | - | 112,337 | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | 10,305 | 307,394 | - | - | 317,699 | ||||||||||||||||||||||||||||||||||||||||
Other long term investments | - | 187,384 | 988 | -68,689 | 119,683 | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | - | - | 1,287,157 | - | 1,287,157 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 184,128 | 1,995 | - | 186,123 | ||||||||||||||||||||||||||||||||||||||||
Sub-total excluding separate account assets | 94,296 | 6,708,246 | 1,440,614 | -68,689 | 8,174,467 | ||||||||||||||||||||||||||||||||||||||||
Separate account assets (2) | 345,437 | 80,293,584 | 248,255 | - | 80,887,276 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 439,733 | $ | 87,001,830 | $ | 1,688,869 | $ | -68,689 | $ | 89,061,743 | |||||||||||||||||||||||||||||||||||
Future policy benefits (4) | $ | - | $ | - | $ | 1,417,891 | $ | - | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||
Other liabilities | - | 68,689 | - | -68,689 | - | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 68,689 | $ | 1,417,891 | $ | -68,689 | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||
(1) "Netting" amounts represents swap variation margin of $0.2 million and $0 million as of December 31, 2013 and December 30, 2012, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||||||||||||||||
(3) Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables” at December 31, 2012 were reclassified to “Other Liabilities” – at December 31, 2013 as they were in a net liability position. | |||||||||||||||||||||||||||||||||||||||||||||
(4) For the year ended December 31, 2013, the net embedded derivative asset position of $348 million includes $1,228 million of embedded derivatives in an asset position and $880 million of embedded derivatives in a liability position. For the year ended December 31, 2012, the net embedded derivative liability position of $1,418 million includes $431 million of embedded derivatives in an asset position and $1,849 million of embedded derivatives in a liability position. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | Fixed Maturities Available For Sale | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | Corporate Securities | Asset- Backed Securities | Commercial Mortgage-Backed Securities | Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | Short Term Investments | |||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 18,147 | $ | 112,114 | $ | 4,040 | $ | 3,931 | $ | 485 | Fair Value, beginning of period assets/(liabilities) | $ | 36,981 | $ | 108,727 | $ | - | $ | 3,277 | $ | 1,489 | $ | - | ||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Included in earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 144 | - | - | - | - | Realized investment gains (losses), net | -1,177 | - | - | - | 427 | - | |||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 299 | - | Asset management fees and other income | - | - | - | 953 | - | - | |||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -548 | -205 | - | - | 19 | Included in other comprehensive income (loss) | -1,641 | -294 | -3 | - | 71 | - | |||||||||||||||||||||||||||||||||
Net investment income | 19 | 38 | - | - | - | Net investment income | 90 | 257 | - | - | - | - | |||||||||||||||||||||||||||||||||
Purchases | 1,322 | - | - | - | 65 | Purchases | 14,996 | 33,078 | 12,524 | 380 | 65 | - | |||||||||||||||||||||||||||||||||
Sales | -3 | - | - | -1,499 | - | Sales | -2,329 | -1 | - | -1,499 | -1,483 | - | |||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Settlements | -900 | -774 | - | - | - | Settlements | -22,446 | -23,098 | -3,434 | -380 | - | - | |||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 112 | - | - | - | - | Transfers into Level 3 (2) | 112 | - | - | - | - | 18 | |||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -30,239 | -4,040 | - | - | Transfers out of Level 3 (2) | -6,293 | -35,239 | -9,087 | - | - | - | |||||||||||||||||||||||||||||||||
Other (4) | - | - | - | - | - | Other (4) | - | -2,496 | - | - | - | - | |||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | Fair Value, end of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | $ | 18 | ||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | Unrealized gains (losses) for the period relating to those | ||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | Level 3 assets that were still held at the end of the period (3): | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Included in earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -1,648 | $ | - | $ | - | $ | - | $ | - | Realized investment gains (losses), net | $ | -1,648 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 214 | $ | - | Asset management fees and other income | $ | - | $ | - | $ | - | $ | 869 | $ | - | $ | - | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Reinsurance Recoverables | Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Reinsurance Recoverable | Future Policy Benefits | Other Liabilities (5) | |||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,145 | $ | 6,112 | $ | 261,679 | $ | -586,930 | $ | 479,818 | Fair Value, beginning of period assets/(liabilities) | $ | 988 | $ | 1,995 | $ | 248,255 | $ | - | $ | -1,417,891 | $ | 1,287,157 | ||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Included in earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | - | 52 | 1,087,204 | -1,008,227 | Realized investment gains (losses), net | -232 | - | 1,966 | 11,400 | 2,342,621 | -2,210,096 | |||||||||||||||||||||||||||||||||
Asset management fees and other income | 23 | - | - | - | - | Asset management fees and other income | 144 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 10,756 | - | - | Interest credited to policyholders' account balances | - | - | 18,978 | - | - | - | |||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | 31 | - | - | - | Included in other comprehensive income (loss) | - | -25 | - | - | - | - | |||||||||||||||||||||||||||||||||
Net investment income | - | -25 | - | - | - | Net investment income | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Purchases | - | - | 22,127 | - | 140,141 | Purchases | 268 | 5,147 | 80,302 | - | - | 534,671 | |||||||||||||||||||||||||||||||||
Sales | - | - | -14,772 | - | - | Sales | - | -3,495 | -69,659 | - | - | - | |||||||||||||||||||||||||||||||||
Issuances | - | - | - | -151,875 | - | Issuances | - | - | - | - | -576,331 | - | |||||||||||||||||||||||||||||||||
Settlements | - | - | - | - | - | Settlements | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | Transfers into Level 3 (2) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -1,997 | - | - | - | Transfers out of Level 3 (2) | - | -1,997 | - | - | - | - | |||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,168 | $ | 4,121 | $ | 279,842 | $ | 348,399 | $ | -388,268 | Other (4) | - | 2,496 | - | - | - | - | ||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,168 | $ | 4,121 | $ | 279,842 | $ | 11,400 | $ | 348,399 | -388,268 | ||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | Unrealized gains (losses) for the period relating to those | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Level 3 assets that were still held at the end of the period (3): | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | 1,084,177 | $ | -1,005,924 | Included in earnings: | ||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 33 | $ | - | $ | - | $ | - | $ | - | Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | 11,400 | $ | 2,318,266 | $ | -2,188,291 | ||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 10,756 | $ | - | $ | - | Asset management fees and other income | $ | 122 | $ | - | $ | - | $ | - | $ | - | - | |||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 18,978 | $ | - | $ | - | - | ||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities | Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 4,696 | $ | 23,720 | $ | 62,429 | $ | - | $ | 3,362 | $ | 2,652 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | -3,454 | 687 | - | - | -1,423 | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | - | -35 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 4 | 4,070 | 2,840 | -65 | - | 264 | |||||||||||||||||||||||||||||||||||||||
Net investment income | - | 101 | 364 | 3 | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | - | 8,714 | 62,524 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Sales | - | -89 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | - | -8,656 | -14,566 | -2,496 | -50 | - | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | 23,995 | 5,702 | 5,246 | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -16,120 | -11,253 | -2,688 | - | -4 | |||||||||||||||||||||||||||||||||||||||
Other (4) | -4,700 | 4,700 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | - | $ | 36,981 | $ | 108,727 | $ | - | $ | 3,277 | $ | 1,489 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | -35 | $ | - | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 686 | $ | 868,824 | $ | - | $ | 222,323 | -912,986 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -4,659 | 2,937 | - | -1,476 | -61,390 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | -7 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | - | 12,377 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | -5 | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 4,966 | 415,396 | 2,000 | 94,515 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -79,484 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -443,515 | ||||||||||||||||||||||||||||||||||||||||
Settlements | 2 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 988 | 1,287,157 | $ | 1,995 | $ | 248,255 | -1,417,891 | |||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -4,549 | 17,516 | $ | - | $ | - | -76,581 | |||||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | -7 | - | $ | - | $ | - | - | |||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | - | $ | - | $ | 12,377 | - | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities | Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Other Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | - | $ | 49,050 | $ | 59,770 | $ | - | $ | - | $ | 1,792 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | - | -3,311 | 803 | - | - | -3,315 | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | - | -595 | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -4 | -1,126 | -694 | - | - | 2,840 | |||||||||||||||||||||||||||||||||||||||
Net investment income | - | 219 | 768 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | 4,700 | 7,534 | 23,001 | 5,019 | - | 1,696 | |||||||||||||||||||||||||||||||||||||||
Sales | - | -678 | -8,160 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | 883 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | - | -20,679 | -9,094 | - | -5,000 | -99 | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | 10,444 | - | - | - | 8,695 | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -18,616 | -3,965 | -5,019 | - | - | |||||||||||||||||||||||||||||||||||||||
Other (4) | - | - | - | - | 8,957 | -8,957 | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 4,696 | $ | 23,720 | $ | 62,429 | $ | - | $ | 3,362 | $ | 2,652 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | - | $ | -4,319 | $ | -10 | $ | - | $ | - | $ | -2,918 | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | -876 | $ | - | |||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term investments | Receivables from Parents and Affiliates | Reinsurance Recoverable | Separate Account Assets (1) | Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | - | $ | 24,278 | $ | -373,000 | $ | 198,451 | $ | 452,822 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 102 | - | 934,112 | 388 | -1,091,846 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | -46 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 1,815 | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | -55 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 630 | 431 | 307,712 | 86,744 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -65,075 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -273,962 | ||||||||||||||||||||||||||||||||||||||||
Settlements | - | -3 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | -24,651 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 686 | $ | - | $ | 868,824 | $ | 222,323 | $ | -912,986 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 75 | $ | - | $ | 973,717 | $ | - | $ | -1,085,926 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | -46 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 1,815 | $ | - | |||||||||||||||||||||||||||||||||||
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Carrying Amount (1) | Fair Value | Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | Total | Total | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | $ | - | $ | 7,827 | $ | 1,604,247 | $ | 1,612,074 | $ | 1,532,165 | $ | 1,616,804 | $ | 1,463,977 | |||||||||||||||||||||||||||||||
Policy loans | - | - | 1,086,772 | 1,086,772 | 1,086,772 | 1,455,412 | 1,079,714 | ||||||||||||||||||||||||||||||||||||||
Other long term investments | - | - | 4,751 | 4,751 | 4,268 | 2,491 | 2,119 | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 45,317 | 56,139 | - | 101,456 | 101,456 | 94,410 | 94,410 | ||||||||||||||||||||||||||||||||||||||
Accrued investment income | - | 89,465 | - | 89,465 | 89,465 | 90,653 | 90,653 | ||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 87,849 | - | 87,849 | 87,481 | -3,146 | -3,751 | ||||||||||||||||||||||||||||||||||||||
Other assets | - | 34,060 | - | 34,060 | 34,060 | 32,782 | 32,176 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 45,317 | $ | 275,340 | $ | 2,695,770 | $ | 3,016,427 | $ | 2,935,667 | $ | 3,289,406 | $ | 2,759,298 | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' Account Balances - Investment Contracts | $ | - | $ | 851,607 | $ | 40,451 | $ | 892,058 | $ | 901,860 | $ | 793,280 | $ | 796,816 | |||||||||||||||||||||||||||||||
Cash collateral for loaned securities | - | 84,867 | - | 84,867 | 84,867 | 48,068 | 48,068 | ||||||||||||||||||||||||||||||||||||||
Short-term debt | - | 275,268 | - | 275,268 | 274,900 | 272,981 | 272,000 | ||||||||||||||||||||||||||||||||||||||
Long-term debt | - | 1,644,827 | - | 1,644,827 | 1,592,000 | 1,563,185 | 1,511,000 | ||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 45,649 | - | 45,649 | 45,649 | 6,694 | 6,694 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | - | 270,339 | - | 270,339 | 270,339 | 224,751 | 224,751 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 3,172,557 | $ | 40,451 | $ | 3,213,008 | $ | 3,169,615 | $ | 2,908,959 | $ | 2,859,329 | |||||||||||||||||||||||||||||||
Fair Value Inputs Quantitative Information [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 15,100 | Discounted cash flow | Discount rate | 8.28% | 15.00% | 10.61% | Decrease | |||||||||||||||||||||||||||||||||||||
Market Comparables | EBITDA Multiples(2) | 5.0X | 7.0X | 5.91X | Increase | ||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 11.61% | 38.49% | 31.83% | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | $ | 11,400 | See the Reinsurance Recoverable section above for an explanation of the fair value determination. | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (3) | $ | -348,399 | Discounted cash flow | Lapse rate (4) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (5) | 0.08% | 1.09% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (6) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (7) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (8) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 15% | 28% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 388,268 | Represents reinsurance of variable annuity living benefits in a liability position. Fair values are determined in the same manner as future policy benefits | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 31,356 | Discounted cash flow | Discount rate | 8.90% | 17.50% | 10.60% | Decrease | |||||||||||||||||||||||||||||||||||||
Cap at call price | Call price | 100% | 100% | Increase | |||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 98% | 98% | Increase | |||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | $ | 1,287,157 | Fair values are determined in the same manner as future policy benefits | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (3) | $ | 1,417,891 | Discounted cash flow | Lapse rate (4) | 0% | 14% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (5) | 0.20% | 1.60% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (6) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (7) | 85% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (8) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 19% | 34% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Level Three Amounts By Pricing Source [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Internal (1) | External (2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 15,100 | $ | 3,193 | $ | 18,293 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 355 | 80,579 | 80,934 | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 18 | - | 18 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | 569 | 2,731 | 3,300 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | - | 1,168 | 1,168 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | 11,400 | - | 11,400 | ||||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 4,121 | 4,121 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal excluding separate account assets | 27,442 | 91,792 | 119,234 | ||||||||||||||||||||||||||||||||||||||||||
Separate account assets | 81,795 | 198,047 | 279,842 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 109,237 | $ | 289,839 | $ | 399,076 | |||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | -348,399 | $ | - | $ | -348,399 | |||||||||||||||||||||||||||||||||||||||
Other liabilities | 388,268 | - | 388,268 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 39,869 | $ | - | $ | 39,869 | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Internal (1) | External (2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 31,356 | $ | 5,625 | $ | 36,981 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 5,929 | 102,798 | 108,727 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | 1,489 | 3,277 | 4,766 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 232 | 756 | 988 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | 1,287,157 | - | 1,287,157 | ||||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 1,995 | 1,995 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal excluding separate account assets | 1,326,163 | 114,451 | 1,440,614 | ||||||||||||||||||||||||||||||||||||||||||
Separate account assets | 77,286 | 170,969 | 248,255 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,403,449 | $ | 285,420 | $ | 1,688,869 | |||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | 1,417,891 | $ | - | $ | 1,417,891 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,417,891 | $ | - | $ | 1,417,891 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | [1] | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Notional | Gross Fair Value | Notional | Gross Fair Value | |||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
Primary Underlying | (in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Currency Swaps | $ | 249,601 | $ | 6,304 | $ | -11,583 | $ | 145,174 | $ | 4,152 | $ | -3,904 | ||||||||||||
Total Qualifying Hedges | $ | 249,601 | $ | 6,304 | $ | -11,583 | $ | 145,174 | $ | 4,152 | $ | -3,904 | ||||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Interest Rate | ||||||||||||||||||||||||
Interest Rate Swaps | $ | 2,434,400 | $ | 47,475 | $ | -185,222 | $ | 1,729,400 | $ | 109,855 | $ | -22,930 | ||||||||||||
Currency | ||||||||||||||||||||||||
Forwards | 507 | 2 | - | 5,424 | 48 | - | ||||||||||||||||||
Credit | ||||||||||||||||||||||||
Credit Default Swaps | 14,275 | 15 | -862 | 14,275 | 614 | -894 | ||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Currency Swaps | 69,450 | 211 | -3,325 | 62,468 | 1,516 | -2,064 | ||||||||||||||||||
Equity | ||||||||||||||||||||||||
Total Return Swaps | 332,000 | - | -8,057 | 320,377 | 762 | -6,073 | ||||||||||||||||||
Equity Options | 40,739,168 | 19,639 | -9,418 | 24,243,020 | 70,669 | -32,824 | ||||||||||||||||||
Total Non-Qualifying Hedges | 43,589,800 | 67,342 | -206,884 | 26,374,964 | 183,464 | -64,785 | ||||||||||||||||||
Total Derivatives (1) | $ | 43,839,401 | $ | 73,646 | $ | -218,467 | $ | 26,520,138 | $ | 187,616 | $ | -68,689 | ||||||||||||
Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was an asset of $348 million and a liability of $1,441 million as of December 31, 2013 and December 31, 2012, respectively, included in “Future policy benefits” and “Fixed maturities, available-for-sale.” | ||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | [1] | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 1,029 | $ | -794 | $ | -4,848 | ||||||||||||||||
Total cash flow hedges | - | 1,029 | -794 | -4,848 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | -191,954 | - | - | - | ||||||||||||||||||||
Currency | 51 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | -3,450 | - | -17 | - | ||||||||||||||||||||
Credit | -1,106 | - | - | - | ||||||||||||||||||||
Equity | -130,714 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | 274,374 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | -52,799 | - | -17 | - | ||||||||||||||||||||
Total | $ | -52,799 | $ | 1,029 | $ | -811 | $ | -4,848 | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 707 | $ | 46 | $ | -2,376 | ||||||||||||||||
Total cash flow hedges | - | 707 | 46 | -2,376 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | 1,309 | - | - | - | ||||||||||||||||||||
Currency | -147 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | -866 | - | -6 | - | ||||||||||||||||||||
Credit | -763 | - | - | - | ||||||||||||||||||||
Equity | -69,527 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | -116,431 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | -186,425 | - | -6 | - | ||||||||||||||||||||
Total | $ | -186,425 | $ | 707 | $ | 40 | $ | -2,376 | ||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income(1) | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||
Currency/Interest Rate | $ | -337 | $ | 233 | $ | 49 | $ | 1,715 | ||||||||||||||||
Total cash flow hedges | -337 | 233 | 49 | 1,715 | ||||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||
Interest Rate | 90,706 | - | - | - | ||||||||||||||||||||
Currency | 175 | - | - | - | ||||||||||||||||||||
Currency/Interest Rate | 1,102 | - | - | - | ||||||||||||||||||||
Credit | 733 | - | - | - | ||||||||||||||||||||
Equity | -3,264 | - | - | - | ||||||||||||||||||||
Embedded Derivatives | 88,740 | - | - | - | ||||||||||||||||||||
Total non-qualifying hedges | 178,192 | - | - | - | ||||||||||||||||||||
Total | $ | 177,855 | $ | 233 | $ | 49 | $ | 1,715 | ||||||||||||||||
Amounts deferred in “Accumulated other comprehensive income (loss).” | ||||||||||||||||||||||||
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | ' | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 808 | ||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2011 | 1,607 | |||||||||||||||||||||||
Amount reclassified into current period earnings | 108 | |||||||||||||||||||||||
Balance, December 31, 2011 | 2,523 | |||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2012 | -622 | |||||||||||||||||||||||
Amount reclassified into current period earnings | -1,754 | |||||||||||||||||||||||
Balance, December 31, 2012 | 147 | |||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013 | -4,519 | |||||||||||||||||||||||
Amount reclassified into current period earnings | -329 | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | -4,701 | ||||||||||||||||||||||
Offsetting Of Financial Assets And Liabilities | ' | |||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Gross | Net | |||||||||||||||||||||||
Gross | Amounts | Amounts | ||||||||||||||||||||||
Amounts of | Offset in the | Presented in | ||||||||||||||||||||||
Recognized | Statement of | the Statement | Financial | |||||||||||||||||||||
Financial | Financial | of Financial | Instruments/ | Net | ||||||||||||||||||||
Instruments | Position | Position | Collateral | Amount | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Offsetting of Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 73,219 | $ | -73,219 | $ | - | $ | - | $ | - | ||||||||||||||
Securities purchased under agreement to resell | 56,139 | - | 56,139 | -56,139 | - | |||||||||||||||||||
Total Assets | $ | 129,358 | $ | -73,219 | $ | 56,139 | $ | -56,139 | $ | - | ||||||||||||||
Offsetting of Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 218,467 | $ | -73,051 | $ | 145,416 | $ | -136,593 | $ | 8,823 | ||||||||||||||
Securities sold under agreement to repurchase | - | - | - | - | - | |||||||||||||||||||
Total Liabilities | $ | 218,467 | $ | -73,051 | $ | 145,416 | $ | -136,593 | $ | 8,823 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||
Gross | Net | |||||||||||||||||||||||
Gross | Amounts | Amounts | ||||||||||||||||||||||
Amounts of | Offset in the | Presented in | ||||||||||||||||||||||
Recognized | Statement of | the Statement | Financial | |||||||||||||||||||||
Financial | Financial | of Financial | Instruments/ | Net | ||||||||||||||||||||
Instruments | Position | Position | Collateral | Amount | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Offsetting of Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 187,372 | $ | -68,689 | $ | 118,683 | $ | - | $ | 118,683 | ||||||||||||||
Securities purchased under agreement to resell | 203,437 | - | 203,437 | -203,437 | - | |||||||||||||||||||
Total Assets | $ | 390,809 | $ | -68,689 | $ | 322,120 | $ | -203,437 | $ | 118,683 | ||||||||||||||
Offsetting of Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 68,689 | $ | -68,689 | $ | - | $ | - | $ | - | ||||||||||||||
Securities sold under agreement to repurchase | - | - | - | - | - | |||||||||||||||||||
Total Liabilities | $ | 68,689 | $ | -68,689 | $ | - | $ | - | $ | - | ||||||||||||||
[1] | _____________ Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. |
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Reinsurance [Abstract] | ' | ||||||||||||||||||||||
Reinsurance amounts BS and IS | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Premiums direct and assumed | $ | 1,319,390 | $ | 1,221,990 | $ | 1,127,239 | |||||||||||||||||
Premiums ceded | -1,262,539 | -1,153,854 | -1,054,452 | ||||||||||||||||||||
Premiums | $ | 56,851 | $ | 68,136 | $ | 72,787 | |||||||||||||||||
Policy charges and fees direct and assumed | $ | 2,401,216 | $ | 2,048,167 | $ | 1,438,273 | |||||||||||||||||
Policy charges and fees ceded | -520,291 | -513,404 | -328,778 | ||||||||||||||||||||
Policy charges and fees | $ | 1,880,925 | $ | 1,534,763 | $ | 1,109,495 | |||||||||||||||||
Policyholders’ benefits direct and assumed | $ | 1,260,166 | $ | 1,666,650 | $ | 1,445,993 | |||||||||||||||||
Policyholders’ benefits ceded | -1,081,242 | -1,313,157 | -1,133,782 | ||||||||||||||||||||
Policyholders’ benefits | $ | 178,924 | $ | 353,494 | $ | 312,211 | |||||||||||||||||
Realized capital gains (losses) net, associated | |||||||||||||||||||||||
with derivatives | $ | -2,058,885 | $ | -53,842 | $ | 1,185,096 | |||||||||||||||||
Assumed balances are subsequently 100% retroceded to PAR U. | |||||||||||||||||||||||
Reinsurance recoverables by segment, affiliated vs. unaffiliated | ' | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Domestic life insurance-affiliated | $ | 12,494,746 | $ | 4,619,282 | |||||||||||||||||||
Domestic individual annuities-affiliated (1) | 642 | 1,287,660 | |||||||||||||||||||||
Domestic life insurance-unaffiliated | 4,832 | 9,673 | |||||||||||||||||||||
Taiwan life insurance-affiliated | 1,157,639 | 1,115,560 | |||||||||||||||||||||
$ | 13,657,859 | $ | 7,032,175 | ||||||||||||||||||||
(1) December 31, 2013 excludes $388 million reclassed to other liabilities due to the mark-to-market impact discussed above. | |||||||||||||||||||||||
Gross and Net Life Insurance in Force | ' | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Direct gross life insurance face amount in force | $ | 661,834,408 | $ | 612,238,145 | $ | 569,684,855 | |||||||||||||||||
Assumed gross life insurance face amount in force | 44,691,950 | - | - | ||||||||||||||||||||
Reinsurance ceded | -650,340,432 | -557,559,303 | -517,857,797 | ||||||||||||||||||||
Net life insurance face amount in force | $ | 56,185,926 | $ | 54,678,842 | $ | 51,827,058 | |||||||||||||||||
Certain_Nontraditional_LongDur1
Certain Nontraditional Long-Duration Contracts (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Disclosure Text Block [Abstract] | ' | |||||||||||||||||
ScheduleOfNetAmountOfRiskByProductAndGuaranteeTextBlock | ' | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
In the Event of Death | At Annuitization/ Accumulation (1) | In the Event of Death | At Annuitization/ Accumulation (1) | |||||||||||||||
Variable Annuity Contracts | (in thousands) | |||||||||||||||||
Return of Net Deposits | ||||||||||||||||||
Account value | $ | 70,025,044 | $ | N/A | $ | 55,348,881 | $ | N/A | ||||||||||
Net amount at risk | 46,013 | N/A | $ | 144,758 | N/A | |||||||||||||
Average attained age of contractholders | 62 | N/A | 61 | N/A | ||||||||||||||
Minimum return or contract value | ||||||||||||||||||
Account value | $ | 20,498,033 | $ | 81,142,995 | $ | 17,627,105 | $ | 64,710,758 | ||||||||||
Net amount at risk | $ | 1,274,286 | $ | 1,085,030 | $ | 1,937,955 | $ | 2,177,244 | ||||||||||
Average attained age of contractholders | 67 | 62 | 66 | 61 | ||||||||||||||
Average period remaining until earliest expected annuitization | N/A | 0.09 years | N/A | 0.23 years | ||||||||||||||
(1) Includes income and withdrawal benefits as described herein | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
In the Event of Death | ||||||||||||||||||
Variable Life, Variable Universal Life and Universal Life Contracts | (in thousands) | |||||||||||||||||
No Lapse Guarantees | ||||||||||||||||||
Separate account value | $ | 2,958,551 | $ | 2,686,820 | ||||||||||||||
General account value | $ | 3,922,205 | $ | 2,922,481 | ||||||||||||||
Net amount at risk | $ | 80,432,427 | $ | 66,004,950 | ||||||||||||||
Average attained age of contractholders | 53 years | 52 years | ||||||||||||||||
ScheduleOfFairValueOfSeparateAccountsByMajorCategoryOfInvestmentTextBlock | ' | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Equity funds | $ | 55,455,438 | $ | 42,765,421 | ||||||||||||||
Bond funds | 29,937,112 | 24,280,753 | ||||||||||||||||
Money market funds | 3,301,910 | 3,618,360 | ||||||||||||||||
Total | $ | 88,694,460 | $ | 70,664,534 | ||||||||||||||
ScheduleOfMinimumGuaranteedBenefitLiabilitiesTextBlock | ' | |||||||||||||||||
GMDB | GMIB | GMWB/GMIWB/GMAB | Total | |||||||||||||||
Variable Annuity | Variable Life, Variable Universal Life & Universal Life | Variable Annuity | ||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance as of December 31, 2010 | $ | 48,829 | $ | 161,107 | $ | 26,718 | $ | -452,823 | $ | -216,169 | ||||||||
Incurred guarantee benefits (1) | 87,111 | 66,082 | 7,120 | 1,365,810 | 1,526,123 | |||||||||||||
Paid guarantee benefits | -38,305 | -2,280 | -828 | - | -41,413 | |||||||||||||
Balance as of December 31, 2011 | $ | 97,635 | $ | 224,909 | $ | 33,010 | $ | 912,987 | $ | 1,268,541 | ||||||||
Incurred guarantee benefits (1) | 145,022 | 94,007 | 21,916 | 504,903 | 765,849 | |||||||||||||
Paid guarantee benefits | -40,590 | -13,929 | -540 | - | -55,059 | |||||||||||||
Balance as of December 31, 2012 | $ | 202,067 | $ | 304,987 | $ | 54,386 | $ | 1,417,890 | $ | 1,979,330 | ||||||||
Incurred guarantee benefits (1) (2) | 28,033 | 101,484 | -30,882 | -1,766,290 | -1,667,655 | |||||||||||||
Paid guarantee benefits | -26,306 | -3,090 | -1,148 | - | -30,544 | |||||||||||||
Other (2) (3) | 4,060 | 1,340,869 | 98 | - | 1,345,027 | |||||||||||||
Balance as of December 31, 2013 | $ | 207,854 | $ | 1,744,250 | $ | 22,454 | $ | -348,400 | $ | 1,626,158 | ||||||||
Deferred Sales Inducements Table | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance, beginning of year | $ | 787,891 | $ | 542,742 | $ | 537,943 | ||||||||||||
Capitalization | 20,871 | 198,955 | 289,642 | |||||||||||||||
Amortization- Impact of assumption and experience unlocking and true-ups | 14,613 | 53,108 | -24,919 | |||||||||||||||
Amortization- All other | 160,835 | -9,985 | -260,964 | |||||||||||||||
Change in unrealized investment gains (losses) | 5,679 | 3,071 | 1,040 | |||||||||||||||
Balance, end of year | $ | 989,889 | $ | 787,891 | $ | 542,742 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
IncomeTaxDisclosureAbstract | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current tax expense (benefit): | |||||||||||||
U.S. | $ | 250,601 | $ | 216,654 | $ | 42,474 | |||||||
Total | 250,601 | 216,654 | 42,474 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
U.S. | 315,819 | -35,614 | -263,930 | ||||||||||
Total | 315,819 | -35,614 | -263,930 | ||||||||||
Total income tax expense on continuing operations | 566,420 | 181,040 | -221,456 | ||||||||||
Total income tax expense (benefit) reported in equity related to: | |||||||||||||
Other comprehensive income (loss) | -113,517 | 29,258 | 16,417 | ||||||||||
Additional paid-in capital | -7,574 | -9,540 | 1,908 | ||||||||||
Total income tax expense (benefit) | $ | 445,329 | $ | 200,758 | $ | -203,131 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Expected federal income tax expense | $ | 736,621 | $ | 302,882 | $ | -123,964 | |||||||
Non-taxable investment income | -149,933 | -108,463 | -81,031 | ||||||||||
Tax credits | -20,935 | -14,460 | -15,977 | ||||||||||
Other | 667 | 1,081 | -484 | ||||||||||
Total income tax expense (benefit) on continuing operations | $ | 566,420 | $ | 181,040 | $ | -221,456 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Insurance reserves | $ | 1,551,346 | $ | 1,436,802 | |||||||||
Investments | 82,821 | - | |||||||||||
Other | - | 824 | |||||||||||
Deferred tax assets | $ | 1,634,167 | $ | 1,437,626 | |||||||||
Deferred tax liabilities | |||||||||||||
Deferred policy acquisition costs | $ | 1,412,944 | $ | 960,414 | |||||||||
Deferred sales inducements | 346,461 | 275,762 | |||||||||||
Net unrealized gains on securities | 46,247 | 176,441 | |||||||||||
Investments | - | 2,315 | |||||||||||
Other | 1,232 | - | |||||||||||
Deferred tax liabilities | 1,806,884 | 1,414,932 | |||||||||||
Net deferred tax asset (liability) | $ | -172,717 | $ | 22,694 | |||||||||
Unrecognized Tax Benefits Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at January 1, | $ | - | $ | 113 | $ | 1,620 | |||||||
Increases in unrecognized tax benefits - prior years | - | 464 | - | ||||||||||
(Decreases) in unrecognized tax benefits- prior years | - | - | -1,507 | ||||||||||
Increases in unrecognized tax benefits - current year | - | - | - | ||||||||||
(Decreases) in unrecognized tax benefits- current year | - | - | - | ||||||||||
Settlements with taxing authorities | - | -577 | - | ||||||||||
Balance at December 31, | $ | - | $ | - | $ | 113 | |||||||
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | - | - | - |
Related_Party_Tables
Related Party (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||
Reinsurance Table [Text Block] | ' | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Reinsurance recoverable | $ | 13,657,859 | $ | 7,032,175 | ||||||||||||||
Policy loans | -64,720 | -52,767 | ||||||||||||||||
Deferred policy acquisition costs | -1,627,838 | -1,112,195 | ||||||||||||||||
Policyholders' account balances | 4,681,356 | - | ||||||||||||||||
Future policy benefits and other policyholder liabilities | 1,359,340 | - | ||||||||||||||||
Other liabilities (reinsurance payables) | 618,781 | 309,478 | ||||||||||||||||
The reinsurance recoverables by counterparty is broken out below. | ||||||||||||||||||
Reinsurance Table By Affiliate [Text Block] | ' | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
UPARC | $ | 44,835 | $ | 28,655 | ||||||||||||||
PAR U | 8,091,712 | 1,633,026 | ||||||||||||||||
PURC | 940,218 | - | ||||||||||||||||
PARCC | 2,411,157 | 2,299,391 | ||||||||||||||||
PAR TERM | 816,787 | 486,012 | ||||||||||||||||
Prudential Insurance | 190,035 | 172,198 | ||||||||||||||||
Pruco Re (1) | 642 | 1,287,660 | ||||||||||||||||
Prudential of Taiwan | 1,157,639 | 1,115,560 | ||||||||||||||||
Unaffiliated | 4,832 | 9,673 | ||||||||||||||||
Total Reinsurance Recoverables | $ | 13,657,859 | $ | 7,032,175 | ||||||||||||||
(1) December 31, 2013 excludes $388 million reclassed to other liabilities due to the mark-to-market impact discussed above. | ||||||||||||||||||
Reinsurance Impact On Income Statement [Text Block] | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||
Premiums | $ | -1,262,539 | $ | -1,153,853 | $ | -1,054,452 | ||||||||||||
Policy charges and fee income | -475,692 | -513,404 | -328,778 | |||||||||||||||
Net investment income | -2,096 | -1,500 | -808 | |||||||||||||||
Other income | -31,119 | 30,303 | 3,183 | |||||||||||||||
Interest credited to policyholders' account balance | -72,977 | -51,990 | -23,998 | |||||||||||||||
Policyholders' benefits | -1,325,428 | -1,313,157 | -1,133,782 | |||||||||||||||
Reinsurance expense allowances, net of capitalization and amortization | -181,440 | -249,008 | -132,961 | |||||||||||||||
Realized investment gains (losses) net | -2,058,885 | -53,842 | 1,185,096 | |||||||||||||||
Affiliated Asset Transfer [Text Block] | ' | |||||||||||||||||
Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | Realized Investment Gain/ (Loss) | Derivative Gain/ (Loss) | ||||||||||
(in millions) | ||||||||||||||||||
UPARC | 11-Oct | Transfer In | Fixed Maturities | $ | 350 | $ | - | $ | - | $ | - | $ | 37 | |||||
PAR U | 11-Oct | Transfer Out | Fixed Maturities | 1,006 | 943 | - | 63 | -61 | ||||||||||
PAR U | 11-Oct | Sale | Fixed Maturities | 92 | 84 | - | 8 | - | ||||||||||
Prudential Financial | 11-Nov | Sale | Fixed Maturities | 45 | 41 | 3 | - | - | ||||||||||
Prudential Insurance | 11-Dec | Sale | Commercial Loans | 21 | 19 | 1 | - | - | ||||||||||
PARCC | 11-Dec | Sale | Fixed Maturities | 38 | 36 | - | 2 | - | ||||||||||
Prudential Insurance | 12-Apr | Purchased | Fixed Maturities | 3 | 2 | -1 | - | - | ||||||||||
Prudential Financial | 12-Apr | Purchased | Fixed Maturities | 28 | 25 | -2 | - | - | ||||||||||
Prudential Insurance | 12-Jun | Purchased | Fixed Maturities | 91 | 74 | -11 | - | - | ||||||||||
PAR U | 12-Sep | Sale | Fixed Maturities & Commercial Mortgages | 156 | 142 | - | 14 | -5 | ||||||||||
Prudential Financial | 12-Sep | Transfer Out | Fixed Maturities | 46 | 41 | 3 | - | - | ||||||||||
Prudential Insurance | 12-Nov | Purchased | Fixed Maturities | 110 | 102 | -5 | - | - | ||||||||||
Prudential Financial | 12-Nov | Purchased | Fixed Maturities | 12 | 12 | -1 | - | - | ||||||||||
Prudential Insurance | 12-Dec | Purchased | Fixed Maturities | 59 | 56 | -2 | - | - | ||||||||||
Prudential Insurance | 13-Jan | Transfer In | Fixed Maturities | 126 | 108 | -12 | - | - | ||||||||||
PAR U | 13-Jan | Transfer Out | Fixed Maturities | 126 | 108 | - | 18 | - | ||||||||||
Prudential Insurance | 13-Jan | Transfer In | Fixed Maturities, Commercial Mortgages, Short-term Investments, & Trading Account Assets | 4,825 | 4,825 | -1 | - | - | ||||||||||
PAR U | 13-Jan | Transfer Out | Fixed Maturities, Commercial Mortgages, Short-term Investments, & Trading Account Assets | 4,826 | 4,821 | - | 5 | - | ||||||||||
UPARC | 13-Feb | Transfer In | Fixed Maturities | 56 | 52 | - | - | - | ||||||||||
PAR U | 13-Feb | Transfer Out | Fixed Maturities | 132 | 122 | - | 10 | - | ||||||||||
Prudential Insurance | 13-Mar | Purchased | Fixed Maturities | 47 | 44 | -2 | - | - | ||||||||||
Prudential Insurance | 13-Sep | Sale | Commercial Mortgages | 2 | 2 | 1 | - | - | ||||||||||
Prudential Financial | 13-Sep | Transfer Out | Fixed Maturities | 25 | 25 | -1 | - | - | ||||||||||
UPARC | 13-Sep | Transfer In | Fixed Maturities & Private Equity | 192 | 189 | - | - | 3 | ||||||||||
PARU | 13-Sep | Transfer Out | Fixed Maturities, Commercial Mortgages, & Private Equity | 704 | 694 | - | 10 | -15 | ||||||||||
Debt Agreements [Text Block] | ' | |||||||||||||||||
Affiliate | Date Issued | Amount of Notes - December 31, 2013 | Amount of Notes - December 31, 2012 | Interest Rate | Date of Maturity | |||||||||||||
(in thousands) | ||||||||||||||||||
PFI | 11/15/10 | $ | 66,000 | $ | 66,000 | 3.01% | 11/13/15 | |||||||||||
PFI | 6/20/11 | 150,000 | 200,000 | 1.64% - 3.17% | 6/2013 - 6/2016 | |||||||||||||
PFI | 12/15/11 | 159,000 | 212,000 | 2.65% - 3.61% | 12/2013 - 12/2016 | |||||||||||||
PFI | 12/16/11 | 33,000 | 44,000 | 2.65% - 3.61% | 12/2013 - 12/2016 | |||||||||||||
PFI | 12/20/12 | 88,000 | 267,000 | 1.37% | 12/15/15 | |||||||||||||
Prudential Insurance | 12/20/10 | 204,000 | 204,000 | 3.47% | 12/21/15 | |||||||||||||
Washington Street Investment | 6/20/12 | 316,000 | 395,000 | 1.15% - 3.02% | 6/2013 - 6/2017 | |||||||||||||
Washington Street Investment | 12/17/12 | 264,000 | 330,000 | 0.95% - 1.87% | 12/2013 - 12/2017 | |||||||||||||
Washington Street Investment | 12/17/12 | 52,000 | 65,000 | 0.95% - 1.87% | 12/2013 - 12/2017 | |||||||||||||
PFI | 11/15/13 | 9,000 | - | 2.24% | 12/15/18 | |||||||||||||
PFI | 11/15/13 | 23,000 | - | 3.19% | 12/15/20 | |||||||||||||
Prudential Insurance | 12/6/13 | 120,000 | - | 2.60% | 12/15/18 | |||||||||||||
Prudential Insurance | 12/6/13 | 130,000 | - | 4.39% | 12/15/23 | |||||||||||||
Prudential Insurance | 12/6/13 | 250,000 | - | 3.64% | 12/15/20 | |||||||||||||
Pru Funding, LLC | 12/31/13 | 2,900 | - | 0.23% | 1/7/14 | |||||||||||||
Total Loans Payable to Affiliates | $ | 1,866,900 | $ | 1,783,000 |
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
QuarterlyFinancialDataAbstract | ' | ||||||||||||||
ScheduleOfQuarterlyFinancialInformationTableTextBlock | ' | ||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||
(in thousands) | |||||||||||||||
2013 | |||||||||||||||
Total revenues | $ | 690,333 | $ | 656,314 | $ | 681,086 | $ | 668,041 | |||||||
Total benefits and expenses | 235,444 | 229,901 | -178,013 | 303,812 | |||||||||||
Income (loss) from operations before income taxes | 454,889 | 426,413 | 859,099 | 364,229 | |||||||||||
Net income (loss) | $ | 347,055 | $ | 311,997 | $ | 577,646 | $ | 301,512 | |||||||
2012 | |||||||||||||||
Total revenues | $ | 498,074 | $ | 561,203 | $ | 540,685 | $ | 624,315 | |||||||
Total benefits and expenses | -140,737 | 1,054,097 | 181,818 | 263,722 | |||||||||||
Income (loss) from operations before income taxes | 638,811 | -492,894 | 358,867 | 360,593 | |||||||||||
Net income (loss) | $ | 461,304 | $ | -353,363 | $ | 315,599 | $ | 260,797 | |||||||
Significant_Accounting_Policie2
Significant Accounting Policies and Pronouncements (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | ' | ' |
Loan-to-value ratios | 100.00% | ' |
Debt service coverage ratios | 1 | ' |
Assumed Interest Rate - Minimum | 0.00% | 1.00% |
Assumed Interest Rate - Maximum | 14.75% | 14.75% |
Securities Loaned Transactions Collateral Fair Value Of Domestic Securities | 102.00% | ' |
Securities Loaned Transactions Collateral Fair Value Of Foreign Securities | 105.00% | ' |
Significant_Accounting_Policie3
Significant Accounting Policies and Pronouncments - Adoption of New Accounting Pronouncements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | ' | ' |
Impact on Deferred Acquisition Costs for Adoption of New Accounting Pronouncement | $672 | $684 | ' |
Impact on Equity for Adoption of New Accounting Pronouncement | 469 | 446 | ' |
Impact on Income From Continuing Operations for Adoption of New Accounting Pronouncement | 34 | 125 | 53 |
Impact on Other Liabilities for Adoption of New Accounting Pronouncement | 48 | ' | ' |
Impact on Reinsurance Recoverables for Adoption of New Accounting Pronouncement | 2 | ' | ' |
Impact on Policyholders' Account Balances for Adoption of New Accounting Pronouncement | $3 | $3 | ' |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities | $2,700,000 | ($500,000) | ($500,000) |
Net investment income | 419,011,000 | 417,510,000 | 439,950,000 |
Gross unrealized losses related to high or highest quality securities | 136,000,000 | 9,000,000 | ' |
Gross unrealized losses related to other than high or highest quality securities | 4,000,000 | 6,000,000 | ' |
Twelve months or more Unrealized Losses | 20,457,000 | 6,895,000 | ' |
Fixed Maturities [Member] | ' | ' | ' |
Gross unrealized losses representing declines in value of greater than 20% | 5,000,000 | 6,000,000 | ' |
Gross unrealized losses in a continuous loss position for less than six months | 5,000,000 | 0 | ' |
Assets Deposited With Governmental Authorities | 4,000,000 | 4,000,000 | ' |
Equity Securities [Member] | ' | ' | ' |
Gross unrealized losses representing declines in value of greater than 20% | 0 | 0 | ' |
Gross unrealized losses in a continuous loss position for less than six months | $0 | $0 | ' |
Investments_Fixed_Maturities_a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | $5,538,933 | $5,662,255 | ||
Available For Sale Equity Securities Amortized Cost Basis | ' | 3,119 | ||
Fair Value, Fixed maturities, available for sale | 5,651,401 | 6,135,765 | ||
Equity securities, available for sale | 771 | 4,327 | ||
Net unrealized gains on impaired securities relating to changes in value of securities subsequent to the impairment measurement date | 14 | 22 | ||
US Treasury And Government [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 93,525 | 187,619 | ||
Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 78,951 | 85,197 | ||
Foreign Government Debt Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 23,997 | 27,511 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 4,541,369 | 4,598,634 | ||
Asset-backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 222,091 | 373,474 | ||
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 522,008 | 489,421 | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 169,460 | 373,909 | ||
Fixed Maturities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 5,538,933 | 5,662,255 | ||
Gross Unrealized Gains | 252,087 | 488,270 | ||
Gross Unrealized Losses | 139,619 | 14,760 | ||
Fair Value, Fixed maturities, available for sale | 5,651,401 | 6,135,765 | ||
Other-than-temporary impairments in AOCI | 9,008 | [1] | 22,769 | [2] |
Fixed Maturities [Member] | US Treasury And Government [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 89,497 | 172,541 | ||
Gross Unrealized Gains | 5,910 | 15,088 | ||
Gross Unrealized Losses | 1,882 | 10 | ||
Fair Value, Fixed maturities, available for sale | 93,525 | 187,619 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 83,807 | 79,166 | ||
Gross Unrealized Gains | 1,518 | 6,516 | ||
Gross Unrealized Losses | 6,374 | 485 | ||
Fair Value, Fixed maturities, available for sale | 78,951 | 85,197 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 20,357 | 21,709 | ||
Gross Unrealized Gains | 3,640 | 5,802 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value, Fixed maturities, available for sale | 23,997 | 27,511 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | Public Utilities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 796,747 | 620,654 | ||
Gross Unrealized Gains | 32,303 | 68,512 | ||
Gross Unrealized Losses | 29,281 | 1,334 | ||
Fair Value, Fixed maturities, available for sale | 799,769 | 687,832 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | RedeemablePreferredStockMember | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 681 | 6,400 | ||
Gross Unrealized Gains | 126 | 360 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value, Fixed maturities, available for sale | 807 | 6,760 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 3,661,419 | 3,601,052 | ||
Gross Unrealized Gains | 168,717 | 309,470 | ||
Gross Unrealized Losses | 89,343 | 6,480 | ||
Fair Value, Fixed maturities, available for sale | 3,740,793 | 3,904,042 | ||
Other-than-temporary impairments in AOCI | 252 | [1] | 344 | [2] |
Fixed Maturities [Member] | Asset-backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 216,081 | [3] | 360,258 | [3] |
Gross Unrealized Gains | 8,687 | [3] | 19,362 | [3] |
Gross Unrealized Losses | 2,677 | [3] | 6,146 | [3] |
Fair Value, Fixed maturities, available for sale | 222,091 | [3] | 373,474 | [3] |
Other-than-temporary impairments in AOCI | 7,783 | [1],[3] | 21,330 | [2],[3] |
Fixed Maturities [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 510,255 | 446,558 | ||
Gross Unrealized Gains | 20,316 | 42,932 | ||
Gross Unrealized Losses | 8,563 | 69 | ||
Fair Value, Fixed maturities, available for sale | 522,008 | 489,421 | ||
Other-than-temporary impairments in AOCI | 0 | [1] | 0 | [2] |
Fixed Maturities [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 160,089 | [4] | 353,917 | [4] |
Gross Unrealized Gains | 10,870 | [4] | 20,228 | [4] |
Gross Unrealized Losses | 1,499 | [4] | 236 | [4] |
Fair Value, Fixed maturities, available for sale | 169,460 | [4] | 373,909 | [4] |
Other-than-temporary impairments in AOCI | 973 | [1],[4] | 1,095 | [2],[4] |
Equity Securities Available For Sale [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Available For Sale Equity Securities Amortized Cost Basis | 567 | 3,119 | ||
Gross Unrealized Gains | 207 | 1,217 | ||
Gross Unrealized Losses | 3 | 9 | ||
Equity securities, available for sale | 771 | 4,327 | ||
Equity Securities Available For Sale [Member] | Public Utilities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Available For Sale Equity Securities Amortized Cost Basis | 131 | 0 | ||
Gross Unrealized Gains | 29 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value, Fixed maturities, available for sale | ' | 0 | ||
Equity securities, available for sale | 160 | ' | ||
Equity Securities Available For Sale [Member] | Industrial, Miscellaneous, and All Others [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Available For Sale Equity Securities Amortized Cost Basis | 4 | 1,566 | [5] | |
Gross Unrealized Gains | 12 | 1,118 | [5] | |
Gross Unrealized Losses | 0 | 0 | [5] | |
Equity securities, available for sale | 16 | 2,684 | [5] | |
Equity Securities Available For Sale [Member] | Nonredeemable Preferred Stock [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Available For Sale Equity Securities Amortized Cost Basis | 341 | 1,396 | ||
Gross Unrealized Gains | 163 | 93 | ||
Gross Unrealized Losses | 0 | 0 | ||
Equity securities, available for sale | 504 | 1,489 | ||
Equity Securities Available For Sale [Member] | Mutual Fund [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Available For Sale Equity Securities Amortized Cost Basis | 91 | 157 | [5] | |
Gross Unrealized Gains | 3 | 6 | [5] | |
Gross Unrealized Losses | 3 | 9 | [5] | |
Equity securities, available for sale | $91 | $154 | [5] | |
[1] | Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $14 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. | |||
[2] | Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $22 million of net unrealized gains or losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. | |||
[3] | _____________ Includes credit-tranched securities collateralized by sub-prime mortgages, credit cards, education loans, and other asset types. | |||
[4] | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. | |||
[5] | Prior period has been reclassified to conform to the current period presentation. |
Investments_Amortized_Cost_and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available for Sale Amortized Cost | ' | ' |
Due in one year or less | $264,190 | ' |
Due after one year through five years | 1,110,508 | ' |
Due after five years through ten years | 1,422,256 | ' |
Due after ten years | 1,855,554 | ' |
Total | 5,538,933 | 5,662,255 |
Available for Sale Securities Fair Value | ' | ' |
Due in one year or less | 268,309 | ' |
Due after one year through five years | 1,200,139 | ' |
Due after five years through ten years | 1,463,339 | ' |
Due after ten years | 1,806,055 | ' |
Total | 5,651,401 | 6,135,765 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 160,089 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | 169,460 | ' |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 510,255 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | 522,008 | ' |
Asset-backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 216,081 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | $222,091 | ' |
Investments_Fixed_Maturities_P
Investments (Fixed Maturities Proceeds)(Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Equity Securities [Member] | ' | ' | ' | |||
Available For Sale | ' | ' | ' | |||
Proceeds from sales | $13,603 | $9,862 | $6,397 | |||
Proceeds from maturities/repayments | 3 | 0 | 3,958 | |||
Gross investment gains from sales | 1,337 | 1,027 | 3,857 | |||
Available-for-sale Securities, Gross Realized Losses | 791 | 529 | 0 | |||
Fixed maturity and equity security impairments | ' | ' | ' | |||
Writedowns for impairments on equity securities | -67 | -2,168 | -2,255 | |||
Fixed Maturities, Available For Sale [Member] | ' | ' | ' | |||
Available For Sale | ' | ' | ' | |||
Proceeds from sales | 816,125 | 116,493 | 218,200 | |||
Proceeds from maturities/repayments | 760,433 | 903,272 | 836,724 | |||
Gross investment gains from sales | 60,261 | 31,720 | 83,600 | |||
Available-for-sale Securities, Gross Realized Losses | 22,380 | 1,171 | 411 | |||
Fixed maturity and equity security impairments | ' | ' | ' | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | ($4,441) | [1] | ($6,236) | [1] | ($8,969) | [1] |
[1] | Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),†representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Investments_Credit_Losses_Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Credit losses recognized in earnings on fixed maturity securities | ' | ' |
Credit Losses Recognized In Earnings, BOP | $27,702 | $31,507 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | -14,330 | -4,126 |
Credit loss impairments previously recognized on securities impaired to fair value during the period | 0 | -3,240 |
Credit loss impairment recognized in the current period on securities not previously impaired | 31 | 15 |
Additional credit loss impairments recognized in the current period on securities previously impaired | 798 | 2,266 |
Increases due to the passage of time on previously recorded credit losses | 915 | 2,430 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | -456 | -1,150 |
Credit Losses Recognized In Earnings, EOP | $14,660 | $27,702 |
Investments_Trading_Account_As
Investments (Trading Account Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Amortized Cost | $15,506 | $10,730 | ||
Fair Value | 18,892 | 11,376 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Fair Value | 14,183 | ' | ||
Asset-backed Securities [Member] | ' | ' | ||
Fair Value | 1,978 | 4,008 | ||
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value | 0 | 4,091 | ||
Fixed Maturities [Member] | ' | ' | ||
Amortized Cost | 14,118 | 7,647 | ||
Fair Value | 16,162 | 8,099 | ||
Equity Securities [Member] | ' | ' | ||
Amortized Cost | 1,388 | [1] | 3,083 | [1] |
Fair Value | $2,730 | [1] | $3,277 | [1] |
[1] | _____________ Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities. |
Investments_Commercial_Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial mortgage loans | $1,425,541 | $1,352,628 |
Commercial mortgage loans, Percentage | 93.00% | 92.00% |
Valuation allowance | -8,904 | -6,028 |
Total net commercial and agricultural mortgage loans by property type | 1,523,755 | 1,463,977 |
Total commercial mortgage and other loans | 1,532,165 | 1,463,977 |
Total Commercial Mortgage By Propterty Type | 1,532,659 | 1,470,005 |
Other Loans and Leases Receivable | 8,410 | 0 |
Uncollateralized Loans [Member] | ' | ' |
Other Loans and Leases Receivable | 8,410 | 0 |
Office buildings [Member] | ' | ' |
Commercial mortgage loans | 195,499 | 237,566 |
Commercial mortgage loans, Percentage | 12.80% | 16.20% |
Retail stores [Member] | ' | ' |
Commercial mortgage loans | 467,059 | 461,939 |
Commercial mortgage loans, Percentage | 30.50% | 31.40% |
Apartment Complexes [Member] | ' | ' |
Commercial mortgage loans | 298,365 | 239,623 |
Commercial mortgage loans, Percentage | 19.50% | 16.30% |
Industrial Buildings [Member] | ' | ' |
Commercial mortgage loans | 272,239 | 273,900 |
Commercial mortgage loans, Percentage | 17.70% | 18.60% |
Agricultural Properties [Member] | ' | ' |
Commercial mortgage loans | 107,118 | 117,377 |
Commercial mortgage loans, Percentage | 7.00% | 8.00% |
Hospitality [Member] | ' | ' |
Commercial mortgage loans | 90,085 | 50,052 |
Commercial mortgage loans, Percentage | 5.90% | 3.40% |
Other [Member] | ' | ' |
Commercial mortgage loans | 102,294 | 89,548 |
Commercial mortgage loans, Percentage | 6.60% | 6.10% |
In Billions [Member] | ' | ' |
Total commercial mortgage and other loans | $1,500,000 | $1,500,000 |
California [Member] | ' | ' |
Commercial mortgage loans, Percentage | 20.00% | ' |
New Jersey [Member] | ' | ' |
Commercial mortgage loans, Percentage | 11.00% | ' |
Texas [Member] | ' | ' |
Commercial mortgage loans, Percentage | 10.00% | ' |
Investments_Allowance_for_Loss
Investments (Allowance for Losses) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ' | ' | ' | |||
Allowance for Losses, Beginning Balance | $6,028 | [1] | $12,813 | [1] | $21,428 | |
Addition To / (Release of) Allowance For Losses | -2,876 | 1,551 | 8,615 | |||
Charge Off Net Of Recoveries | 0 | -5,234 | 0 | |||
Allowance for Losses, Ending Balance | $8,904 | [1] | $6,028 | [1] | $12,813 | [1] |
[1] | Agricultural loans represent $0.3 million, $0.4 million and $0.4 million of the ending allowance at December 31, 2013, 2012 and 2011, respectively. |
Investments_Allowance_for_Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | |||||
Allowance for Credit Losses: | ' | ' | ' | ||
Ending Balance: Individually evaluated for impairment | ($3,084) | [1] | ($372) | [1] | ' |
Ending Balance: collectively evaluated for impairment | 5,820 | [2] | 5,656 | [2] | ' |
Total | 8,904 | 6,028 | ' | ||
Recorded Investment: | ' | ' | ' | ||
Ending balance gross of reserves: individually evaluated for impairment | 6,392 | [1],[3] | 6,415 | [1],[3] | ' |
Ending balance gross of reserves: collectively evaluated for impairment | 1,534,677 | [2],[3] | 1,463,590 | [2],[3] | ' |
Total | 1,541,069 | [3] | 1,470,005 | [3] | ' |
Agricultural Property Loans [Member] | ' | ' | ' | ||
Allowance for Credit Losses: | ' | ' | ' | ||
Ending Balance: collectively evaluated for impairment | 300 | 400 | 400 | ||
Uncollateralized Loans [Member] | ' | ' | ' | ||
Recorded Investment: | ' | ' | ' | ||
Ending balance gross of reserves: collectively evaluated for impairment | $8,000 | $0 | ' | ||
[1] | There were no agricultural or uncollateralized loans individually evaluated for impairments at December 31, 2013 and 2012. | ||||
[2] | Agricultural loans collectively evaluated for impairment had a recorded investment of $107 million and $117 million and a related allowance of $0.3 million and $0.4 million at December 31, 2013 and 2012, respectively. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million and $0 million at December 31, 2013 and 2012, respectively, and no related allowance for both periods. | ||||
[3] | Recorded investment reflects the balance sheet carrying value gross of related allowance. |
Investments_Impaired_Loans_Det
Investments (Impaired Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Recorded Investment | $6.40 | $6.40 |
Unpaid Principal Balance Principal Balance | 6.4 | 6.4 |
Related Allowance | 3.1 | 0.4 |
Interest Income Recognized | 0 | 0.5 |
Class Of Financing Receivable1 [Member] | Agricultural Loan [Member] | ' | ' |
Recorded Investment | $107 | $117 |
Investments_Credit_Quality_Ind
Investments (Credit Quality Indicators) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Loan To Value Ratio Percent Of Investment Less Than Eighty Percent [Member] | ' | ' |
Financing Percentage | 97.00% | 96.00% |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan-to-Value Ratio Greater than Hundred Percent [Member] | ' | ' |
Financing Receivable | 61 | 59 |
Financing Percentage | 4.00% | 4.00% |
Debt Service Coverage Ratio Percent Of Investment One Point Zero X Or Greater [Member] | ' | ' |
Financing Percentage | 96.00% | 96.00% |
Investments_Analysis_of_Past_D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial Mortgage Loan [Member] | ' | ' |
Current | $1,400,000,000 | $1,400,000,000 |
Commercial Loan on Other [Member] | ' | ' |
Total Past Due | $6,400,000 | $6,400,000 |
Investments_Commercial_Mortgag1
Investments (Commercial Mortgage and Other Loans on Nonaccrual Status) (Details) (Commercial Loan on Hospitality [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commercial Loan on Hospitality [Member] | ' | ' |
Recorded Investment On Non Accrual Commermcial Mortgage And Other Loans [Line Items] | ' | ' |
Commercial Mortgage and Other Loans on Nonaccrual Status | $6.40 | $6.40 |
Investments_Other_Long_Term_In
Investments (Other Long Term Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Long-Term Investments | $226,704 | $284,489 |
Joint Ventures And Limited Partnerships [Member] | ' | ' |
Other Long-Term Investments | 196,538 | 136,977 |
Investment In Separate Account [Member] | ' | ' |
Other Long-Term Investments | 29,739 | 28,584 |
Derivatives [Member] | ' | ' |
Other Long-Term Investments | $427 | $118,928 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | $438,375 | $436,289 | $458,130 |
Less: investment expenses | -19,364 | -18,779 | -18,180 |
Net Investment Income, Total | 419,011 | 417,510 | 439,950 |
Available For Sale Fixed Maturities [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 278,747 | 270,790 | 300,850 |
Equity Securities [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 1 | 52 | 227 |
Trading Account Assets [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 657 | 981 | 1,582 |
Commercial Mortgage Loans [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 84,006 | 84,232 | 81,282 |
Policy Loans [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 59,287 | 58,007 | 56,716 |
Short-term Investments [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 654 | 1,003 | 1,052 |
Other Long-term Investments [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | $15,023 | $21,224 | $16,421 |
Investments_Realized_Investmen
Investments (Realized Investment Gains Losses Net) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | ($13,450) | ($156,447) | $262,083 |
Fixed Maturities [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | 33,440 | 24,314 | 74,220 |
Equity Securities [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | 480 | -1,670 | 1,602 |
Commercial Mortgage Loans [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | 5,494 | 7,307 | 8,615 |
Equity Method Investments [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | -83 | 0 | -265 |
Derivative [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | -52,799 | -186,425 | 177,855 |
Other [Member] | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' |
Realized investment gains (losses), net | $18 | $27 | $56 |
Investments_Net_Unrealized_Inv
Investments (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Balance | $56,646 | $267,461 | ' | |||
Accumulated Net Unrealized Investment Gain (Loss) Pre Tax [Member] | Securities Related to Other Than Temporary Impairments [Member] | ' | ' | ' | |||
Balance | -618 | -18,648 | -24,704 | |||
Net investment gains (losses) on investments arising during the period | 1,053 | 11,444 | -3,779 | |||
Reclassification adjustment for (gains) losses included in net income | 4,114 | 6,755 | 9,623 | |||
Reclassification adjustment for OTTI losses excluded from net income | -51 | [1] | -169 | [1] | 212 | [1] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 0 | 0 | 0 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 0 | 0 | 0 | |||
Balance | 4,498 | -618 | -18,648 | |||
Deferred Costs Policy Acquisition And Sales Inducements And Valuation Of Business Acquired, Pre Tax [Member] | Securities Related to Other Than Temporary Impairments [Member] | ' | ' | ' | |||
Balance | 295 | 10,187 | 13,813 | |||
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 | [1] | 0 | [1] | 0 | [1] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | -3,619 | -9,892 | -3,626 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 0 | 0 | 0 | |||
Balance | -3,324 | 295 | 10,187 | |||
Policyholders Account Balances Pre Tax [Member] | Securities Related to Other Than Temporary Impairments [Member] | ' | ' | ' | |||
Balance | 563 | -2,936 | -7,103 | |||
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 | [1] | 0 | [1] | 0 | [1] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 0 | 0 | 0 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 1,256 | 3,499 | 4,167 | |||
Balance | 1,819 | 563 | -2,936 | |||
Deferred Income Tax Liability Benefit [Member] | Securities Related to Other Than Temporary Impairments [Member] | ' | ' | ' | |||
Balance | -115 | 3,958 | 6,271 | |||
Net investment gains (losses) on investments arising during the period | -369 | -4,005 | 1,322 | |||
Reclassification adjustment for (gains) losses included in net income | -1,440 | -2,364 | -3,369 | |||
Reclassification adjustment for OTTI losses excluded from net income | 18 | [1] | 59 | [1] | -75 | [1] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 1,266 | 3,462 | 1,268 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | -439 | -1,225 | -1,459 | |||
Balance | -1,079 | -115 | 3,958 | |||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Securities Related to Other Than Temporary Impairments [Member] | ' | ' | ' | |||
Balance | 125 | -7,439 | -11,723 | |||
Net investment gains (losses) on investments arising during the period | 684 | 7,439 | -2,457 | |||
Reclassification adjustment for (gains) losses included in net income | 2,674 | 4,391 | 6,254 | |||
Reclassification adjustment for OTTI losses excluded from net income | -33 | [1] | -110 | [1] | 137 | [1] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | -2,353 | -6,430 | -2,358 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 817 | 2,274 | 2,708 | |||
Balance | $1,914 | $125 | ($7,439) | |||
[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. Balances are net of reinsurance. |
Investments_All_Other_Net_Unre
Investments (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Balance | $56,646 | $267,461 | ' | |||
Other Net Unrealized Investment Gains and Losses [Member] | Accumulated Net Unrealized Investment Gain (Loss) Pre Tax [Member] | ' | ' | ' | |||
Balance | 505,100 | [1] | 443,637 | [1] | 400,404 | [1] |
Net investment gains (losses) on investments arising during the period | -343,964 | [1] | 90,693 | [1] | 128,890 | [1] |
Reclassification adjustment for (gains) losses included in net income | -38,034 | [1] | -29,399 | [1] | -85,445 | [1] |
Reclassification adjustment for OTTI losses excluded from net income | 51 | [1],[2] | 169 | [1],[2] | -212 | [1],[2] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 0 | [1] | 0 | [1] | 0 | [1] |
Impact of net unrealized investment (gains) losses on policyholders' account balance | 0 | [1] | 0 | [1] | 0 | [1] |
Balance | 123,153 | [1] | 505,100 | [1] | 443,637 | [1] |
Other Net Unrealized Investment Gains and Losses [Member] | Deferred Costs Policy Acquisition And Sales Inducements And Valuation Of Business Acquired, Pre Tax [Member] | ' | ' | ' | |||
Balance | -220,208 | -179,520 | -194,158 | |||
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 | [2] | 0 | [2] | 0 | [2] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 177,178 | -40,688 | 14,638 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 0 | 0 | 0 | |||
Balance | -43,030 | -220,208 | -179,520 | |||
Other Net Unrealized Investment Gains and Losses [Member] | Policyholders Account Balances Pre Tax [Member] | ' | ' | ' | |||
Balance | 125,833 | 75,345 | 92,690 | |||
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 | [2] | 0 | [2] | 0 | [2] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 0 | 0 | 0 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | -122,540 | 50,488 | -17,345 | |||
Balance | 3,293 | 125,833 | 75,345 | |||
Other Net Unrealized Investment Gains and Losses [Member] | Deferred Income Tax Liability Benefit [Member] | ' | ' | ' | |||
Balance | -143,646 | -118,533 | -104,367 | |||
Net investment gains (losses) on investments arising during the period | 120,388 | -31,738 | -45,090 | |||
Reclassification adjustment for (gains) losses included in net income | 13,312 | 10,290 | 29,905 | |||
Reclassification adjustment for OTTI losses excluded from net income | -18 | [2] | -59 | [2] | 73 | [2] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | -62,012 | 14,065 | -5,124 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | 42,889 | -17,671 | 6,070 | |||
Balance | -29,087 | -143,646 | -118,533 | |||
Other Net Unrealized Investment Gains and Losses [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | |||
Balance | 267,079 | 220,929 | 194,569 | |||
Net investment gains (losses) on investments arising during the period | -223,576 | 58,955 | 83,800 | |||
Reclassification adjustment for (gains) losses included in net income | -24,722 | -19,109 | -55,540 | |||
Reclassification adjustment for OTTI losses excluded from net income | 33 | [2] | 110 | [2] | -139 | [2] |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | 115,166 | -26,623 | 9,514 | |||
Impact of net unrealized investment (gains) losses on policyholders' account balance | -79,651 | 32,817 | -11,275 | |||
Balance | $54,329 | $267,079 | $220,929 | |||
[1] | _____________ Includes cash flow hedges. See Note 11 for information on cash flow hedges. | |||||
[2] | 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. Balances are net of reinsurance. |
Investments_Net_Unrealized_Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Investment Type Categorization [Domain] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | $127,651 | $504,482 | $424,989 | |||
Investment Type Categorization [Domain] | Other Long-term Investments [Member] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | 19,680 | 29,617 | 31,107 | |||
Investment Type Categorization [Domain] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | 107,970 | 474,128 | 411,366 | |||
Investment Type Categorization [Domain] | Available-for-sale Securities [Member] | Equity Securities [Member] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | 204 | 1,208 | -1,359 | |||
Securities Related to Other Than Temporary Impairments [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | 4,498 | -618 | -18,648 | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Investment Type Categorization [Domain] | ' | ' | ' | |||
Net unrealized gains (losses) on investments | ($4,701) | [1] | $147 | [1] | $2,523 | [1] |
[1] | See Note 11 for more information on cash flow hedges. |
Investments_Fair_Value_and_Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | $1,923,320 | $393,239 |
Less than 12 months Gross Unrealized Losses | 119,162 | 7,865 |
Twelve months or more Fair Value | 134,839 | 48,086 |
Twelve months or more Gross Unrealized Losses | 20,457 | 6,895 |
Total Fair Value | 2,058,159 | 441,325 |
Total Gross Unrealized Losses | 139,619 | 14,760 |
US Treasury And Government [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 24,123 | 4,338 |
Less than 12 months Gross Unrealized Losses | 1,882 | 10 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 24,123 | 4,338 |
Total Gross Unrealized Losses | 1,882 | 10 |
Obligations of U.S. states and their political subdivisions [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 51,216 | 21,128 |
Less than 12 months Gross Unrealized Losses | 5,904 | 485 |
Twelve months or more Fair Value | 2,496 | 0 |
Twelve months or more Gross Unrealized Losses | 470 | 0 |
Total Fair Value | 53,712 | 21,128 |
Total Gross Unrealized Losses | 6,374 | 485 |
Foreign Government Debt Securities [Member] | ' | ' |
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 | 0 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 0 | 0 |
Total Gross Unrealized Losses | 0 | 0 |
Corporate Debt Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 1,596,468 | 290,127 |
Less than 12 months Gross Unrealized Losses | 101,780 | 7,070 |
Twelve months or more Fair Value | 97,731 | 18,221 |
Twelve months or more Gross Unrealized Losses | 16,844 | 744 |
Total Fair Value | 1,694,199 | 308,348 |
Total Gross Unrealized Losses | 118,624 | 7,814 |
Asset-backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 93,021 | 44,821 |
Less than 12 months Gross Unrealized Losses | 1,418 | 76 |
Twelve months or more Fair Value | 11,782 | 24,997 |
Twelve months or more Gross Unrealized Losses | 1,259 | 6,070 |
Total Fair Value | 104,803 | 69,818 |
Total Gross Unrealized Losses | 2,677 | 6,146 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 116,371 | 12,549 |
Less than 12 months Gross Unrealized Losses | 6,706 | 60 |
Twelve months or more Fair Value | 19,605 | 521 |
Twelve months or more Gross Unrealized Losses | 1,857 | 9 |
Total Fair Value | 135,976 | 13,070 |
Total Gross Unrealized Losses | 8,563 | 69 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 42,121 | 20,276 |
Less than 12 months Gross Unrealized Losses | 1,472 | 164 |
Twelve months or more Fair Value | 3,225 | 4,347 |
Twelve months or more Gross Unrealized Losses | 27 | 72 |
Total Fair Value | 45,346 | 24,623 |
Total Gross Unrealized Losses | $1,499 | $236 |
Investments_Fair_Value_and_Los1
Investments (Fair Value and Losses by Length of Time in a Continuous Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Duration Of Unrealized Losses On Equity Securities [Line Items] | ' | ' |
Twelve months or more Gross Unrealized Losses | $20,000 | $7,000 |
Equity Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Equity Securities [Line Items] | ' | ' |
Less than twelve months Fair Value | 44 | 54 |
Less than twelve months Gross Unrealized Losses | 3 | 9 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 44 | 54 |
Total Gross Unrealized Losses | $3 | $9 |
Investments_Securities_Pledged
Investments (Securities Pledged) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral | $81,849,000 | $46,311,000 |
Financial Instruments Owned and Pledged as Collateral, Associated Liabilities | 85,000,000 | 48,000,000 |
Fixed Maturities, Available For Sale [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral | 81,849,000 | 46,115,000 |
Trading Account Assets Supporting Insurance Liabilities [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral | 0 | 187,000 |
Equity Securities [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral | 0 | 9,000 |
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral, Associated Liabilities | 0 | 0 |
Cash Collateral For Loaned Securities [Member] | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Financial Instruments Owned and Pledged as Collateral, Associated Liabilities | $85,000,000 | $48,000,000 |
Investments_Balance_of_and_Cha
Investments (Balance of and Changes in AOCI Components) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||
Accumulated other comprehensive income | $56,646,000 | $267,461,000 | ' | ' | ||||
AccumulatedTranslationAdjustmentMember | ' | ' | ' | ' | ||||
Accumulated other comprehensive income | 403,000 | 257,000 | 133,000 | 249,000 | ||||
Change in Other Comprehensive Income | 224,000 | 124,000 | [1] | -116,000 | [1] | ' | ||
Amount Reclassified from AOCI | 0 | ' | ' | ' | ||||
Income Tax Benefit Expense | -78,000 | ' | ' | ' | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ||||
Accumulated other comprehensive income | 56,243,000 | [2] | 267,204,000 | [2] | 213,495,000 | [2] | 182,850,000 | [2] |
Change in Other Comprehensive Income | -290,636,000 | [2] | 53,709,000 | [1],[2] | 30,645,000 | [1],[2] | ' | |
Amount Reclassified from AOCI | -33,920,000 | [2],[3],[4] | -22,644,000 | [3],[4] | -75,822,000 | [3],[5] | ' | |
Income Tax Benefit Expense | 113,595,000 | [2] | ' | ' | ' | |||
Cash Flow Hedge Gain Loss To AOCI | 5,000,000 | [2] | 0 | [2] | 3,000,000 | [2] | ' | |
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Accumulated other comprehensive income | 56,646,000 | 267,461,000 | 213,628,000 | 183,099,000 | ||||
Change in Other Comprehensive Income | -290,412,000 | 53,833,000 | [1] | 30,529,000 | [1] | ' | ||
Amount Reclassified from AOCI | -33,920,000 | [3],[4] | -22,644,000 | [3],[4] | -75,822,000 | [3],[5] | ' | |
Income Tax Benefit Expense | $113,517,000 | ' | ' | ' | ||||
[1] | Net of taxes. | |||||||
[2] | Includes cash flow hedges of ($5) million, $0 million and $3 million as of December 31, 2013, 2012 and 2011, respectively. | |||||||
[3] | _____________ All amounts are shown before tax. | |||||||
[4] | Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. | |||||||
[5] | See Note 11 for additional information on cash flow hedges. |
Investments_Reclassifications_
Investments (Reclassifications of AOCI) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
OCI Unrealized Gain Loss On Cash Flow Hedges Net Of Tax | ' | ' | ' | |||
Amount Reclassified from AOCI | $329 | [1],[2],[3] | $1,754 | [1],[2],[3] | ($108) | [1],[2],[3] |
OCI Unrealized Gain Loss On Available For Sale Securities Arising During Period Net Of Tax | ' | ' | ' | |||
Amount Reclassified from AOCI | 33,591 | [1],[3],[4] | 20,890 | [1],[3],[4] | 75,930 | [1],[2],[4] |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | |||
Amount Reclassified from AOCI | -33,920 | [1],[3],[5] | -22,644 | [1],[3] | -75,822 | [1],[2] |
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Amount Reclassified from AOCI | ($33,920) | [1],[3] | ($22,644) | [1],[3] | ($75,822) | [1],[2] |
[1] | _____________ All amounts are shown before tax. | |||||
[2] | See Note 11 for additional information on cash flow hedges. | |||||
[3] | Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. | |||||
[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. | |||||
[5] | Includes cash flow hedges of ($5) million, $0 million and $3 million as of December 31, 2013, 2012 and 2011, respectively. |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
DeferredPolicyAcquisitionCostsDisclosures[Abstract] | ' | ' | ' |
Balance, beginning of year | $3,679,061 | $2,545,600 | $2,693,689 |
DeferredPolicyAcquisitionCostsAdditions | 822,075 | 1,171,759 | 1,096,301 |
Amortization-Impact of assumption and experience unlocking and true-ups | -9,167 | 60,313 | -25,242 |
Amortization - All Other | 533,478 | -21,345 | -947,961 |
DeferredPolicyAcquisitionCostAmortizationExpenseUnrealizedInvestmentGainsLosses | 167,880 | -53,651 | 9,973 |
Ceded DAC | -159,028 | -23,616 | -281,160 |
Balance, end of year | $5,034,299 | $3,679,061 | $2,545,600 |
Deferred_Policy_Acquisition_Co3
Deferred Policy Acquisition Costs (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
DeferredPolicyAcquisitionCostsDisclosures[Abstract] | ' | ' | ' |
Ceded Capitalization | $285 | $249 | $208 |
Ceded Amortization | 89 | 180 | 70 |
Ceded Unrealized Gain Loss | $161 | $44 | $147 |
Policyholders_Liabilities_Futu
Policyholders Liabilities (Future Policy Benefits) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Future Policy Benefits [Line Items] | ' | ' |
Individual and group annuities | $320,451 | $338,505 |
Policy claims and other contract liabilities | -323,547 | 1,443,591 |
Total future policy benefits | 6,916,669 | 6,696,813 |
Domestic [Member] | ' | ' |
Future Policy Benefits [Line Items] | ' | ' |
Life insurance | 5,768,262 | 3,804,994 |
Taiwan [Member] | ' | ' |
Future Policy Benefits [Line Items] | ' | ' |
Life insurance | $1,151,503 | $1,109,723 |
Policyholders_Liabilities_Narr
Policyholders Liabilities (Narrative Future Policy Benefits) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Future Policy Benefits [Line Items] | ' |
Future Policy Benefits Interest Rate Low End | 0.00% |
Future Policy Benefits Interest Rate High End | 14.75% |
Percentage Of Reserves Based On Interest Rates In Excess Of 8 Percent | 1.78% |
Group Annuity Interest Rate | 14.75% |
Other Interest Rates Low End | 0.39% |
Other Interest Rates High End | 5.01% |
Domestic [Member] | ' |
Future Policy Benefits [Line Items] | ' |
Traditional Life Interest Rate Low End | 2.50% |
Traditional Life Interest Rate High End | 8.25% |
Taiwan [Member] | ' |
Future Policy Benefits [Line Items] | ' |
Traditional Life Interest Rate Low End | 6.18% |
Traditional Life Interest Rate High End | 7.43% |
Policyholders_Liabilities_Poli
Policyholders Liabilities (Policyholders Account Balances) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Policyholders' account balances, funding agreement | $14,303,330 | $8,557,077 |
Interest Sensitive Life Contracts [Member] | ' | ' |
Policyholders' account balances, funding agreement | 11,456,129 | 5,327,169 |
Individual Annuities [Member] | ' | ' |
Policyholders' account balances, funding agreement | 1,624,523 | 1,736,810 |
Guaranteed Investment Contracts And Guaranteed Interest Accounts Member [Member] | ' | ' |
Policyholders' account balances, funding agreement | 450,738 | 820,502 |
Other Policies [Member] | ' | ' |
Policyholders' account balances, funding agreement | $771,941 | $672,596 |
Policyholders_Liabilities_Narr1
Policyholders Liabilities (Narrative Policyholders Account Balances) (Details) (USD $) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2013 |
LiabilityForFuturePolicyBenefitsAndPolicyholderContractDepositsAssumptionsAbstract | ' |
Interest Sensitive Life Interest Rate Assumptions Low End | 0.42% |
Interest Sensitive Life Interest Rate Assumptions High End | 4.60% |
Individual Annuities Interest Rates Low End | 0.00% |
Individual Annuities Interest Rates High End | 9.00% |
Percentage Of Policyholders Liabilities Reserves Based On Interest Rates In Excess Of 8 Percent | 0.00% |
Guaranteed Interest Accounts Interest Rates Low End | 1.00% |
Guaranteed Interest Accounts Interest Rates High End | 6.00% |
Other Interest Rates Low End | 0.50% |
Other Interest Rates High End | 8.00% |
Hartford Interest Sensitive Life Contracts | $4.70 |
Certain_Nontraditional_LongDur2
Certain Nontraditional Long-Duration Contracts (Guarantees Associated with Variable Annuity Contracts, by Guarantee Type) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Mimimum Return Or Contract Value [Member] | At Annuitization Accumulation [Member] | ' | ' | ||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Period Remaining | '0 years 1 month 2 days | '0 years 2 months 25 days | ||
VariableAnnuity [Member] | Return Of Net Deposits [Member] | In Event Of Death [Member] | ' | ' | ||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ||
Account value in the event of death | 70,025,044 | 55,348,881 | ||
Net amount at risk in the event of death | 46,013 | 144,758 | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | '62 years 0 months 0 days | '61 years 0 months 0 days | ||
VariableAnnuity [Member] | Mimimum Return Or Contract Value [Member] | In Event Of Death [Member] | ' | ' | ||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ||
Account value in the event of death | 20,498,033 | 17,627,105 | ||
Net amount at risk in the event of death | 1,274,286 | 1,937,955 | ||
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | '67 years 0 months 0 days | '66 years 0 months 0 days | ||
VariableAnnuity [Member] | Mimimum Return Or Contract Value [Member] | At Annuitization Accumulation [Member] | ' | ' | ||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ||
Account value at annuitization or accumulation | 81,142,995 | [1] | 64,710,758 | [1] |
Net amount at risk at annuitization or accumulation | 1,085,030 | [1] | 2,177,244 | [1] |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | '62 years 0 months 0 days | '61 years 0 months 0 days | ||
[1] | (1) Includes income and withdrawal benefits as described herein |
Certain_Nontraditional_LongDur3
Certain Nontraditional Long-Duration Contracts (Guarantees Associated with Variable Life Contracts, by Guarantee Type) (Details) (Variable Life Variable Universal Life And Universal Life [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Life Variable Universal Life And Universal Life [Member] | ' | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' |
Separate account value in the event of death | $2,958,551 | $2,686,820 |
General account value in the event of death | 3,922,205 | 2,922,481 |
Net amount at risk in the event of death | $80,432,427 | $66,004,950 |
Net Amount at Risk by Product and Guarantee, Weighted Average Attained Age | '53 years 0 months 0 days | '52 years 0 months 0 days |
Certain_Nontraditional_LongDur4
Certain Nontraditional Long-Duration Contracts (Account Balances of Variable Annuity Contracts with Guarantees Invested in General and Separate Account Investment Options) (Details) (VariableAnnuity [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Funds | ' | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' |
Separate Account Value | $55,455,438,000 | $42,765,421,000 |
Bond Funds | ' | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' |
Separate Account Value | 29,937,112,000 | 24,280,753,000 |
Money Market Funds | ' | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' |
Separate Account Value | 3,301,910,000 | 3,618,360,000 |
All [Member] | ' | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' |
Separate Account Value | 88,694,460,000 | 70,664,534,000 |
General Account Value | $1.83 | $2.31 |
Certain_Nontraditional_LongDur5
Certain Nontraditional Long-Duration Contracts (Summary of the Changes in General Account Liabilities for Guarantees on Variable Contracts) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ' | |||
Beginning balance | $1,979,330,000 | $1,268,541,000 | ($216,169,000) | |||
Incurred guarantee benefits | -1,667,655,000 | [1],[2] | 765,849,000 | [1] | 1,526,123,000 | [1] |
Liabilities For Guarantees On Long Duration Contracts Benefits Paid | -30,544,000 | -55,059,000 | -41,413,000 | |||
Other | 1,345,027,000 | [2],[3] | ' | ' | ||
Ending balance | 1,626,158,000 | 1,979,330,000 | 1,268,541,000 | |||
Hartford GMDB Assumed | 1,500,000,000 | ' | ' | |||
Guaranteed Minimum Death Benefit [Member] | Variable Annuity [Member] | ' | ' | ' | |||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ' | |||
Beginning balance | 202,067,000 | 97,635,000 | 48,829,000 | |||
Incurred guarantee benefits | 28,033,000 | [1],[2] | 145,022,000 | [1],[2] | 87,111,000 | [1] |
Liabilities For Guarantees On Long Duration Contracts Benefits Paid | -26,306,000 | -40,590,000 | -38,305,000 | |||
Other | 4,060,000 | [2],[3] | ' | ' | ||
Ending balance | 207,854,000 | 202,067,000 | 97,635,000 | |||
Guaranteed Minimum Death Benefit [Member] | Variable Life Variable Universal Life And Universal Life [Member] | ' | ' | ' | |||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ' | |||
Beginning balance | 304,987,000 | 224,909,000 | 161,107,000 | |||
Incurred guarantee benefits | 101,484,000 | [1],[2] | 94,007,000 | [1] | 66,082,000 | [1] |
Liabilities For Guarantees On Long Duration Contracts Benefits Paid | -3,090,000 | -13,929,000 | -2,280,000 | |||
Other | 1,340,869,000 | [2],[3] | ' | ' | ||
Ending balance | 1,744,250,000 | 304,987,000 | 224,909,000 | |||
Guaranteed Minimum Income Benefit [Member] | Variable Annuity [Member] | ' | ' | ' | |||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ' | |||
Beginning balance | 54,386,000 | 33,010,000 | 26,718,000 | |||
Incurred guarantee benefits | -30,882,000 | [1],[2] | 21,916,000 | [1] | 7,120,000 | [1] |
Liabilities For Guarantees On Long Duration Contracts Benefits Paid | -1,148,000 | -540,000 | -828,000 | |||
Other | 98,000 | [2],[3] | ' | ' | ||
Ending balance | 22,454,000 | 54,386,000 | 33,010,000 | |||
Guaranteed Minimum Accumulation Withdrawal Income And Withdrawal Benefits [Member] | Variable Annuity [Member] | ' | ' | ' | |||
Net Amount At Risk By Product And Guarantee [Line Items] | ' | ' | ' | |||
Beginning balance | 1,417,890,000 | 912,987,000 | -452,823,000 | |||
Incurred guarantee benefits | -1,766,290,000 | [1],[2] | 504,903,000 | [1] | 1,365,810,000 | [1] |
Liabilities For Guarantees On Long Duration Contracts Benefits Paid | 0 | 0 | 0 | |||
Other | 0 | [2],[3] | ' | ' | ||
Ending balance | ($348,400,000) | $1,417,890,000 | $912,987,000 | |||
[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] | Incurred benefits include GMDB liabilities assumed related to the Hartford GUL business, which was subsequently 100% retroceded to PAR Universal. | |||||
[3] | Includes $1.5 billion related to the initial GMDB liability assumed related to the Hartford business, which was subsequently 100% retroceded to PAR Universal. |
Certain_Nontraditional_LongDur6
Certain Nontraditional Long-Duration Contracts (Changes in Deferred Sales Inducements, Reported as "Interest credited to policyholders' account balances") (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
DeferredSalesInducementsAbstract | ' | ' | ' |
Beginning Balance | $787,891 | $542,742 | $537,943 |
Capitalization | 20,871 | 198,955 | 289,642 |
Amortization - Impact of assumption and experience unlocking and true-ups | 14,613 | 53,108 | -24,919 |
Amortization - All other | 160,835 | -9,985 | -260,964 |
Change in unrealized investment gains and losses | 5,679 | 3,071 | 1,040 |
Ending Balance | $989,889 | $787,891 | $542,742 |
Statutory_Net_Income_and_Surpl
Statutory Net Income and Surplus and Dividend Restrictions (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stat [Abstract] | ' | ' | ' |
Statuatory Net Income | $553 | $591 | $589 |
Statuatory Surplus | 2,387 | 2,211 | ' |
Capacity for STAT Dividend | 656 | ' | ' |
Statuatory Dividend | $423 | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
U.S. | $250,601 | $216,654 | $42,474 |
Total | 250,601 | 216,654 | 42,474 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
U.S. | 315,819 | -35,614 | -263,930 |
Total | 315,819 | -35,614 | -263,930 |
Total income tax expense (benefit) on continuing operations | 566,420 | 181,040 | -221,456 |
Income Tax Effects Allocated Directly to Equity [Abstract] | ' | ' | ' |
Other comprehensive income (loss) | -113,517 | 29,258 | 16,417 |
Additional Paid In Capital | -7,574 | -9,540 | 1,908 |
Total Income Taxes | $445,329 | $200,758 | ($203,131) |
Income_Taxes_Reconciliation_To
Income Taxes (Reconciliation To Effective Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract | ' | ' | ' |
Expected federal income tax expense (benefit) | $736,621 | $302,882 | ($123,964) |
Non-taxable investment income | 149,933 | 108,463 | 81,031 |
Tax Credits | 20,935 | 14,460 | 15,977 |
Other | 667 | 1,081 | -484 |
Total income tax expense (benefit) on continuing operations | $566,420 | $181,040 | ($221,456) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilitites) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
DeferredTaxAssetsNetAbstract | ' | ' |
Insurance Reserves | $1,551,346 | $1,436,802 |
Investments | 82,821 | 0 |
Other | 0 | 824 |
Deferred Tax Assets | 1,634,167 | 1,437,626 |
DeferredTaxLiabilitiesAbstract | ' | ' |
Deferred Policy Acquisition Costs | 1,412,944 | 960,414 |
Investments | 0 | 2,315 |
Deferred Annuity Bonus | 346,461 | 275,762 |
Net Unrealized gains on securities | 46,247 | 176,441 |
Other | 1,232 | 0 |
Deferred Tax Liabilities | 1,806,884 | 1,414,932 |
Net deferred tax asset (liability) | ($172,717) | $22,694 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrecognized Tax Benefit [Line Items] | ' | ' | ' |
Beginning Balance | $0 | $113 | $1,620 |
Settlements With Tax Authorities | 0 | -577 | 0 |
Ending Balance | 0 | 0 | 113 |
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | 0 | 0 | 0 |
Current Year [Member] | ' | ' | ' |
Unrecognized Tax Benefit [Line Items] | ' | ' | ' |
Increase in unrecognized Tax Benefits | 0 | 0 | 0 |
Decrease in Unrecognized Tax Benefits | 0 | 0 | 0 |
Prior Year [Member] | ' | ' | ' |
Unrecognized Tax Benefit [Line Items] | ' | ' | ' |
Increase in unrecognized Tax Benefits | 0 | 464 | 0 |
Decrease in Unrecognized Tax Benefits | $0 | $0 | ($1,507) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
IncomeTaxExpenseBenefitContinuingOperationsAbstract | ' | ' | ' |
Proposed Tax Adjustment | $200 | ' | ' |
Tax Expense Attributable To Settlement | 93 | ' | ' |
Benefit from Unrecognized Tax Benefits | 70 | ' | ' |
Income Before Income Tax | $2,104.60 | $865.40 | ($354.20) |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Total commercial mortgage and other loans | $1,532,165,000 | $1,463,977,000 | ' |
Other Long-Term Investments | 226,704,000 | 284,489,000 | ' |
Other liabilities | 964,740,000 | 726,737,000 | ' |
Embedded Derivative Fair Value of Embedded Derivative | -348,000,000 | 1,441,000,000 | ' |
Embedded Derivative Gross Asset | 1,228,000,000 | 431,000,000 | ' |
Embedded Derivative Gross Liability | 880,000,000 | 1,849,000,000 | ' |
Embedded Derivative Cumulative Decrease | 348,000,000 | 1,418,000,000 | ' |
Separate Account Assets Invested In Real Estate | 81,800,000 | 77,300,000 | ' |
Derivative With Fair Value | 0 | 200,000 | ' |
Equity Securities, AFS Transfered From Level 1 To Level 2 | ' | 8,600,000 | ' |
Transfer Out Of Level 3 For Other Assets | ' | ' | 24,700,000 |
Variation Margin | 200,000 | 0 | ' |
Separate Account Assets [Member] | ' | ' | ' |
Separate Account assets transferred from Level 2 to Level 1 | $463,000,000 | $1,900,000 | ' |
High Range [Member] | ' | ' | ' |
Capitalization Rates | 10.00% | 9.50% | ' |
Discount Rates | 11.00% | 11.50% | ' |
Low Range [Member] | ' | ' | ' |
Capitalization Rates | 5.00% | 5.50% | ' |
Discount Rates | 6.75% | 7.00% | ' |
Weighted Average Rate [Member] | ' | ' | ' |
Capitalization Rates | 6.82% | 7.30% | ' |
Discount Rates | 7.90% | 8.30% | ' |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | $5,651,401 | $6,135,765 | ||
Trading account assets, at fair value | 18,892 | 11,376 | ||
Equity securities, available for sale | 771 | 4,327 | ||
Short-term investments | 16,002 | 112,337 | ||
Cash equivalents | 205,787 | 317,699 | ||
Other long-term investments | 1,596 | 119,683 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Subtotal excluding separate account assets | 6,080,731 | 8,174,467 | ||
Separate account assets | 100,402,349 | [1] | 80,887,276 | [1] |
Total assets | 106,483,080 | 89,061,743 | ||
Future policy benefits | -348,399 | 1,417,891 | [2] | |
Other liabilities | 533,684 | 0 | ||
Total liabilities | 185,285 | 1,417,891 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Receivables from parents and affiliates | 174,882 | 186,123 | ||
US Treasury And Government [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 93,525 | 187,619 | ||
Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 78,951 | 85,197 | ||
Foreign Government Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 23,997 | 27,511 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 4,541,369 | 4,598,634 | ||
Trading account assets, at fair value | 14,183 | ' | ||
Asset-backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 222,091 | 373,474 | ||
Trading account assets, at fair value | 1,978 | 4,008 | ||
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 522,008 | 489,421 | ||
Trading account assets, at fair value | 0 | 4,091 | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 169,460 | 373,909 | ||
Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | 2,731 | 3,277 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Equity securities, available for sale | 112 | 2,683 | ||
Short-term investments | 9,216 | 81,308 | ||
Cash equivalents | 5,962 | 10,305 | ||
Other long-term investments | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Subtotal excluding separate account assets | 15,290 | 94,296 | ||
Separate account assets | 973,192 | [1] | 345,437 | [1] |
Total assets | 988,482 | 439,733 | ||
Future policy benefits | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Receivables from parents and affiliates | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | US Treasury And Government [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | ' | ||
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 5,552,174 | 5,990,057 | ||
Trading account assets, at fair value | 16,161 | 8,099 | ||
Equity securities, available for sale | 90 | 155 | ||
Short-term investments | 6,768 | 31,029 | ||
Cash equivalents | 199,825 | 307,394 | ||
Other long-term investments | 73,647 | 187,384 | ||
Reinsurance recoverable | 0 | 0 | ||
Subtotal excluding separate account assets | 6,019,426 | 6,708,246 | ||
Separate account assets | 99,149,315 | [1] | 80,293,584 | [1] |
Total assets | 105,168,741 | 87,001,830 | ||
Future policy benefits | 0 | 0 | ||
Other liabilities | 218,467 | 68,689 | ||
Total liabilities | 218,467 | 68,689 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Receivables from parents and affiliates | 170,761 | 184,128 | ||
Fair Value, Inputs, Level 2 [Member] | US Treasury And Government [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 93,525 | 187,619 | ||
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 78,951 | 85,197 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 23,997 | 27,511 | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 4,523,076 | 4,561,653 | ||
Trading account assets, at fair value | 14,183 | ' | ||
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 141,157 | 264,747 | ||
Trading account assets, at fair value | 1,978 | 4,008 | ||
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 522,008 | 489,421 | ||
Trading account assets, at fair value | 0 | 4,091 | ||
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 169,460 | 373,909 | ||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 99,227 | 145,708 | ||
Trading account assets, at fair value | 2,731 | 3,277 | ||
Equity securities, available for sale | 569 | 1,489 | ||
Short-term investments | 18 | 0 | ||
Cash equivalents | 0 | 0 | ||
Other long-term investments | 1,168 | 988 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Receivables from parents and affiliates | ' | 1,995 | ||
Subtotal excluding separate account assets | 119,234 | 1,440,614 | ||
Separate account assets | 279,842 | [1] | 248,255 | [1] |
Total assets | 399,076 | 1,688,869 | ||
Future policy benefits | -348,399 | [2] | 1,417,891 | [2] |
Other liabilities | 388,268 | [3] | 0 | |
Total liabilities | 39,869 | 1,417,891 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | ' | 31,356 | ||
Other long-term investments | 1,168 | 988 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Receivables from parents and affiliates | 4,121 | 1,995 | ||
Subtotal excluding separate account assets | 119,234 | 1,440,614 | ||
Total assets | 399,076 | 1,688,869 | ||
Future policy benefits | -348,399 | 1,417,891 | ||
Total liabilities | 39,869 | 1,417,891 | ||
Fair Value, Inputs, Level 3 [Member] | US Treasury And Government [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 18,293 | 36,981 | ||
Trading account assets, at fair value | 0 | ' | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 15,100 | ' | ||
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 80,934 | 108,727 | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | 2,731 | 3,277 | ||
Netting And Collateral [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Equity securities, available for sale | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash equivalents | 0 | 0 | ||
Other long-term investments | -73,219 | [4] | -68,689 | [4] |
Reinsurance recoverable | 0 | 0 | ||
Subtotal excluding separate account assets | -73,219 | [4] | -68,689 | [4] |
Separate account assets | 0 | [1] | 0 | [1] |
Total assets | -73,219 | [4] | -68,689 | [4] |
Future policy benefits | 0 | 0 | ||
Other liabilities | -73,051 | [4] | -68,689 | [4] |
Total liabilities | -73,051 | [4] | -68,689 | [4] |
Netting And Collateral [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Receivables from parents and affiliates | 0 | 0 | ||
Netting And Collateral [Member] | US Treasury And Government [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Obligations of U.S. states and their political subdivisions [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | ' | ||
Netting And Collateral [Member] | Asset-backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Trading account assets, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 0 | 0 | ||
Netting And Collateral [Member] | Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | $0 | $0 | ||
[1] | (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. | |||
[2] | (4) For the year ended December 31, 2013, the net embedded derivative asset position of $348 million includes $1,228 million of embedded derivatives in an asset position and $880 million of embedded derivatives in a liability position. For the year ended December 31, 2012, the net embedded derivative liability position of $1,418 million includes $431 million of embedded derivatives in an asset position and $1,849 million of embedded derivatives in a liability position. | |||
[3] | (3) Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables†at December 31, 2012 were reclassified to “Other Liabilities†– at December 31, 2013 as they were in a net liability position. | |||
[4] | (1) "Netting" amounts represents swap variation margin of $0.2 million and $0 million as of December 31, 2013 and December 30, 2012, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Equity Securities [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | $1,489 | $2,652 | $1,792 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 427 | -1,423 | -3,315 | |||
Asset management fees and other income | 0 | 0 | 0 | |||
Interest credited to policyholders' account balances | ' | 0 | ' | |||
Included in other comprehensive income (loss) | 71 | 264 | 2,840 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 65 | 0 | 1,696 | |||
Sales | -1,483 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | 0 | 0 | -99 | |||
Other | 0 | [1] | 0 | -8,957 | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 8,695 | |
Transfers out of Level 3 | 0 | [2] | -4 | [2] | 0 | |
Fair Value, end of period | 569 | 1,489 | 2,652 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | 0 | [3] | -2,918 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Short-term Investments [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 0 | ' | ' | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | ' | ' | |||
Asset management fees and other income | 0 | ' | ' | |||
Included in other comprehensive income (loss) | 0 | ' | ' | |||
Net Investment Income | 0 | ' | ' | |||
Purchases | 0 | ' | ' | |||
Sales | 0 | ' | ' | |||
Issuances | 0 | ' | ' | |||
Settlements | 0 | ' | ' | |||
Other | 0 | [1] | ' | ' | ||
Transfers into Level 3 | 18 | [2] | ' | ' | ||
Transfers out of Level 3 | 0 | [2] | ' | ' | ||
Fair Value, End of Period | -18 | ' | ' | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | ' | ' | ||
Asset management fees and other income | 0 | [3] | ' | ' | ||
Debt Securities [Member] | US Treasury And Government [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | ' | 4,696 | 0 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | ' | 0 | 0 | |||
Asset management fees and other income | ' | 0 | 0 | |||
Included in other comprehensive income (loss) | ' | 4 | -4 | |||
Net Investment Income | ' | 0 | 0 | |||
Purchases | ' | 0 | 4,700 | |||
Sales | ' | 0 | 0 | |||
Issuances | ' | 0 | 0 | |||
Settlements | ' | 0 | 0 | |||
Other | ' | -4,700 | 0 | |||
Transfers into Level 3 | ' | 0 | [2] | 0 | ||
Transfers out of Level 3 | ' | 0 | [2] | 0 | ||
Fair Value, end of period | ' | 0 | 4,696 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | ' | 0 | [3] | 0 | ||
Asset management fees and other income | ' | 0 | [3] | 0 | ||
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Debt Securities [Member] | Corporate Debt Securities [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 36,981 | 23,720 | 49,050 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | -1,177 | -3,454 | -3,311 | |||
Asset management fees and other income | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | -1,641 | 4,070 | -1,126 | |||
Net Investment Income | 90 | 101 | 219 | |||
Purchases | 14,996 | 8,714 | 7,534 | |||
Sales | -2,329 | -89 | -678 | |||
Issuances | 0 | 0 | 883 | |||
Settlements | -22,446 | -8,656 | -20,679 | |||
Other | 0 | [1] | 4,700 | 0 | ||
Transfers into Level 3 | 112 | [2] | 23,995 | [2] | 10,444 | |
Transfers out of Level 3 | -6,293 | [2] | -16,120 | [2] | -18,616 | |
Fair Value, end of period | 18,293 | 36,981 | 23,720 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | -1,648 | [3] | 0 | [3] | -4,319 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Debt Securities [Member] | Asset-backed Securities [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 108,727 | 62,429 | 59,770 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | 687 | 803 | |||
Asset management fees and other income | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | -294 | 2,840 | -694 | |||
Net Investment Income | 257 | 364 | 768 | |||
Purchases | 33,078 | 62,524 | 23,001 | |||
Sales | -1 | 0 | -8,160 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | -23,098 | -14,566 | -9,094 | |||
Other | -2,496 | [1] | 0 | 0 | ||
Transfers into Level 3 | 0 | [2] | 5,702 | [2] | 0 | |
Transfers out of Level 3 | -35,239 | [2] | -11,253 | [2] | -3,965 | |
Fair Value, end of period | 80,934 | 108,727 | 62,429 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | 0 | [3] | -10 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Commercial Mortgage Loans [Member] | Commercial Mortgage Backed Securities [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning 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 | |||
Included in other comprehensive income (loss) | -3 | -65 | 0 | |||
Net Investment Income | 0 | 3 | 0 | |||
Purchases | 12,524 | 0 | 5,019 | |||
Sales | 0 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | -3,434 | -2,496 | 0 | |||
Other | 0 | [1] | 0 | 0 | ||
Transfers into Level 3 | 0 | [2] | 5,246 | [3] | 0 | |
Transfers out of Level 3 | -9,087 | [2] | -2,688 | [2] | -5,019 | |
Fair Value, end of period | 0 | 0 | 0 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | 0 | [3] | 0 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Other Long-term Investments [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 988 | 686 | 0 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | -232 | -4,659 | 102 | |||
Asset management fees and other income | 144 | -7 | -46 | |||
Interest credited to policyholders' account balances | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 268 | 4,966 | 630 | |||
Sales | 0 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | 0 | 2 | 0 | |||
Other | 0 | [1] | ' | 0 | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 0 | |
Transfers out of Level 3 | 0 | [2] | 0 | [2] | 0 | |
Fair Value, end of period | 1,168 | 988 | 686 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | -4,549 | [3] | 75 | |
Asset management fees and other income | 122 | [3] | -7 | [3] | -46 | |
Interest credited to policyholders' account balances | 0 | [3] | 0 | [3] | 0 | |
Receivables From Parents And Affiliates [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 1,995 | 0 | 24,278 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | 0 | 0 | |||
Asset management fees and other income | 0 | 0 | 0 | |||
Interest credited to policyholders' account balances | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | -25 | -5 | -55 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 5,147 | 2,000 | 431 | |||
Sales | -3,495 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | 0 | 0 | -3 | |||
Other | 2,496 | [1] | ' | 0 | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 0 | |
Transfers out of Level 3 | -1,997 | [2] | 0 | [2] | -24,651 | |
Fair Value, end of period | 4,121 | 1,995 | 0 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | 0 | [3] | 0 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | 0 | [3] | 0 | [3] | 0 | |
Trading Asset [Member] | Equity Securities [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 3,277 | 3,362 | 0 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | 0 | 0 | |||
Asset management fees and other income | 953 | -35 | -595 | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 380 | 0 | 0 | |||
Sales | -1,499 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | -380 | -50 | -5,000 | |||
Other | 0 | [1] | 0 | 8,957 | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 0 | |
Transfers out of Level 3 | 0 | [2] | 0 | [2] | 0 | |
Fair Value, end of period | 2,731 | 3,277 | 3,362 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3] | 0 | [3] | 0 | |
Asset management fees and other income | 869 | [3] | -35 | [3] | -876 | |
Interest credited to policyholders' account balances | ' | ' | 0 | |||
Separate Accounts Asset [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 248,255 | [4] | 222,323 | [3],[4] | 198,451 | |
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 1,966 | [4] | -1,476 | [4] | 388 | |
Asset management fees and other income | 0 | [4] | 0 | [4] | 0 | |
Interest credited to policyholders' account balances | 18,978 | [4] | 12,377 | [4] | 1,815 | |
Included in other comprehensive income (loss) | 0 | [4] | 0 | [4] | 0 | |
Net Investment Income | 0 | [4] | 0 | [4] | 0 | |
Purchases | 80,302 | [4] | 94,515 | [4] | 86,744 | |
Sales | -69,659 | [4] | ' | -65,075 | ||
Sales | ' | 79,484 | [4] | ' | ||
Issuances | 0 | [4] | 0 | [4] | 0 | |
Settlements | 0 | [4] | 0 | [4] | 0 | |
Other | 0 | [1] | ' | 0 | ||
Transfers into Level 3 | 0 | [2],[4] | 0 | [2],[4] | 0 | |
Transfers out of Level 3 | 0 | [2],[4] | 0 | [2],[4] | 0 | |
Fair Value, end of period | 279,842 | [4] | 248,255 | [4] | 222,323 | [3],[4] |
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 0 | [3],[4] | 0 | [3],[4] | 0 | |
Asset management fees and other income | 0 | [3],[4] | 0 | [3],[4] | 0 | |
Interest credited to policyholders' account balances | 18,978 | [3],[4] | 12,377 | [3],[4] | 1,815 | |
Future Policy Benefits [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | -1,417,891 | -912,986 | 452,822 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 2,342,621 | -61,390 | -1,091,846 | |||
Asset management fees and other income | 0 | 0 | 0 | |||
Interest credited to policyholders' account balances | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 0 | 0 | 0 | |||
Sales | 0 | 0 | 0 | |||
Issuances | -576,331 | ' | -273,962 | |||
Issuances | ' | 443,515 | ' | |||
Settlements | 0 | 0 | 0 | |||
Other | 0 | [1] | ' | 0 | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 0 | |
Transfers out of Level 3 | 0 | [2] | 0 | [2] | 0 | |
Fair Value, end of period | 348,399 | -1,417,891 | -912,986 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 2,318,266 | [3] | -76,581 | [3] | -1,085,926 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | 0 | [3] | 0 | [3] | 0 | |
Other Liabilities [Member] | ' | ' | ' | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | -2,210,096 | [5] | ' | ' | ||
Interest credited to policyholders' account balances | 0 | [5] | ' | ' | ||
Included in other comprehensive income (loss) | 0 | [5] | ' | ' | ||
Net Investment Income | 0 | [5] | ' | ' | ||
Purchases | 534,671 | [5] | ' | ' | ||
Sales | 0 | [5] | ' | ' | ||
Issuances | 0 | [5] | ' | ' | ||
Settlements | 0 | [5] | ' | ' | ||
Transfers into Level 3 | 0 | [2],[5] | ' | ' | ||
Transfers out of Level 3 | 0 | [2],[5] | ' | ' | ||
Fair Value, end of period | -388,268 | [5] | ' | ' | ||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | -2,188,291 | [3],[5] | ' | ' | ||
Asset management fees and other income | 0 | [3],[5] | ' | ' | ||
Interest credited to policyholders' account balances | 0 | [3],[5] | ' | ' | ||
Other Liabilities [Member] | Reclassified Balance [Member] | ' | ' | ' | |||
Included In Earnings | ' | ' | ' | |||
Fair Value, end of period | ' | 1,287,157 | [5] | ' | ||
Reinsurance Recoverable [Member] | ' | ' | ' | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | |||
Fair Value, beginning of period | 1,287,157 | 868,824 | -373,000 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 11,400 | 2,937 | 934,112 | |||
Asset management fees and other income | 0 | [5] | 0 | 0 | ||
Interest credited to policyholders' account balances | 0 | 0 | 0 | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Net Investment Income | 0 | 0 | 0 | |||
Purchases | 0 | 415,396 | 307,712 | |||
Sales | 0 | 0 | 0 | |||
Issuances | 0 | 0 | 0 | |||
Settlements | 0 | 0 | 0 | |||
Other | 0 | [1],[5] | ' | ' | ||
Transfers into Level 3 | 0 | [2] | 0 | [2] | 0 | |
Transfers out of Level 3 | 0 | [2] | 0 | [2] | 0 | |
Fair Value, end of period | 11,400 | 1,287,157 | 868,824 | |||
Included In Earnings | ' | ' | ' | |||
Realized investment gains (losses), net | 11,400 | [3] | 17,516 | [3] | 973,717 | |
Asset management fees and other income | 0 | [3] | 0 | [3] | 0 | |
Interest credited to policyholders' account balances | 0 | [3] | 0 | [3] | 0 | |
Reinsurance Recoverable [Member] | Reclassified Balance [Member] | ' | ' | ' | |||
Included In Earnings | ' | ' | ' | |||
Fair Value, end of period | ' | $0 | ' | |||
[1] | (4) Other primarily represents reclasses of certain assets between reporting categories. (5) Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables†at December 31, 2012, were reclassified to “Other Liabilities†– at December 31, 2013 as they were in a net liability position. | |||||
[2] | (2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs. | |||||
[3] | (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. | |||||
[4] | (1) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain 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 Statement of Financial Position. | |||||
[5] | Reinsurance of variable annuity living benefit features classified as “Reinsurance Recoverables†at December 31, 2012, were reclassified to “Other Liabilities†– at December 31, 2013 as they were in a net liability position. |
Fair_Value_of_Assets_and_Liabi5
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Assets: | ' | ' | |
Policy loans | $1,086,772 | $1,079,714 | |
Other Long-Term Investments | 226,704 | 284,489 | |
Accrued investment income | 89,465 | 90,653 | |
Liabilities: | ' | ' | |
Cash collateral for loaned securities | 84,867 | 48,068 | |
Short-term debt | 274,900 | 272,000 | |
Long-term debt | 1,592,000 | 1,511,000 | |
Fair Value, Inputs, Level 1 [Member] | ' | ' | |
Assets: | ' | ' | |
Commercial mortgage and other loans | 0 | ' | |
Policy loans | 0 | ' | |
Cash | 45,317 | ' | |
Accrued investment income | 0 | ' | |
Other assets | 0 | ' | |
Liabilities: | ' | ' | |
Investment contracts- policyholders' account balances | 0 | ' | |
Cash collateral for loaned securities | 0 | ' | |
Long-term debt | 0 | ' | |
Other liabilities | 0 | ' | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | |
Assets: | ' | ' | |
Commercial mortgage and other loans | 7,827 | ' | |
Policy loans | 0 | ' | |
Accrued investment income | 89,465 | ' | |
Other assets | 34,060 | ' | |
Liabilities: | ' | ' | |
Investment contracts- policyholders' account balances | 851,607 | ' | |
Cash collateral for loaned securities | 84,867 | ' | |
Short-term debt | 275,268 | ' | |
Long-term debt | 1,644,827 | ' | |
Other liabilities | 270,339 | ' | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | |
Assets: | ' | ' | |
Commercial mortgage and other loans | 1,604,247 | ' | |
Policy loans | 1,086,772 | ' | |
Accrued investment income | 0 | ' | |
Other assets | 0 | ' | |
Liabilities: | ' | ' | |
Investment contracts- policyholders' account balances | 40,451 | ' | |
Cash collateral for loaned securities | 0 | ' | |
Short-term debt | 0 | ' | |
Long-term debt | 0 | ' | |
Other liabilities | 0 | ' | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | |
Assets: | ' | ' | |
Commercial mortgage and other loans | 1,532,165 | [1] | 1,463,977 |
Policy loans | 1,086,772 | [1] | 1,079,714 |
Other Long-Term Investments | 4,268 | [1] | 2,119 |
Cash | 101,456 | [1] | 94,410 |
Accrued investment income | 89,465 | [1] | 90,653 |
Receivables From Parents And Affiliates | 87,481 | [1] | -3,751 |
Other assets | 34,060 | [1] | 32,176 |
Total Assets Financial Instruments Not Carried At Fair Value | 2,935,667 | [1] | 2,759,298 |
Liabilities: | ' | ' | |
Investment contracts- policyholders' account balances | 901,860 | [1] | 796,816 |
Cash collateral for loaned securities | 84,867 | [1] | 48,068 |
Short-term debt | 274,900 | [1] | 272,000 |
Long-term debt | 1,592,000 | [1] | 1,511,000 |
Payables To Parent And Affiliates | 45,649 | [1] | 6,694 |
Other liabilities | 270,339 | [1] | 224,751 |
Total Financial Instrument Liabilities Not Carried At Fair Value | 3,169,615 | [1] | 2,859,329 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | |
Assets: | ' | ' | |
Commercial mortgage and other loans | 1,612,074 | 1,616,804 | |
Policy loans | 1,086,772 | 1,455,412 | |
Other Long-Term Investments | 4,751 | 2,491 | |
Cash | 101,456 | 94,410 | |
Accrued investment income | 89,465 | 90,653 | |
Receivables From Parents And Affiliates | 87,849 | -3,146 | |
Other assets | 34,060 | 32,782 | |
Total Assets Financial Instruments Not Carried At Fair Value | 3,016,427 | 3,289,406 | |
Liabilities: | ' | ' | |
Investment contracts- policyholders' account balances | 892,058 | 793,280 | |
Cash collateral for loaned securities | 84,867 | 48,068 | |
Short-term debt | 275,268 | 272,981 | |
Long-term debt | 1,644,827 | 1,563,185 | |
Payables To Parent And Affiliates | 45,649 | 6,694 | |
Other liabilities | 270,339 | 224,751 | |
Total Financial Instrument Liabilities Not Carried At Fair Value | 3,213,008 | 2,908,959 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | |
Assets: | ' | ' | |
Other Long-Term Investments | 0 | ' | |
Receivables From Parents And Affiliates | 0 | ' | |
Total Assets Financial Instruments Not Carried At Fair Value | 45,317 | ' | |
Liabilities: | ' | ' | |
Short-term debt | 0 | ' | |
Payables To Parent And Affiliates | 0 | ' | |
Total Financial Instrument Liabilities Not Carried At Fair Value | 0 | ' | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | |
Assets: | ' | ' | |
Other Long-Term Investments | 0 | ' | |
Cash | 56,139 | ' | |
Receivables From Parents And Affiliates | 87,849 | ' | |
Total Assets Financial Instruments Not Carried At Fair Value | 275,340 | ' | |
Liabilities: | ' | ' | |
Payables To Parent And Affiliates | 45,649 | ' | |
Total Financial Instrument Liabilities Not Carried At Fair Value | 3,172,557 | ' | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | |
Assets: | ' | ' | |
Other Long-Term Investments | 4,751 | ' | |
Cash | 0 | ' | |
Receivables From Parents And Affiliates | 0 | ' | |
Total Assets Financial Instruments Not Carried At Fair Value | 2,695,770 | ' | |
Liabilities: | ' | ' | |
Payables To Parent And Affiliates | 0 | ' | |
Total Financial Instrument Liabilities Not Carried At Fair Value | $40,451 | ' | |
[1] | Carrying values presented herein differ from those in the Company’s Consolidated Statement 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. |
Fair_Value_of_Assets_and_Liabi6
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Other long-term investments | $1,596 | $119,683 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Subtotal excluding separate account assets | 6,080,731 | 8,174,467 | ||
Separate account assets | 100,402,349 | [1] | 80,887,276 | [1] |
Total assets | 106,483,080 | 89,061,743 | ||
Future policy benefits | -348,399 | 1,417,891 | [2] | |
Total liabilities | 185,285 | 1,417,891 | ||
Short-term investments | 18 | ' | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Receivables from parents and affiliates | 174,882 | 186,123 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Other long-term investments | 1,168 | 988 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Receivables from parents and affiliates | ' | 1,995 | ||
Subtotal excluding separate account assets | 119,234 | 1,440,614 | ||
Separate account assets | 279,842 | [1] | 248,255 | [1] |
Total assets | 399,076 | 1,688,869 | ||
Future policy benefits | -348,399 | [2] | 1,417,891 | [2] |
Total liabilities | 39,869 | 1,417,891 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Equity Securities | 3,300 | 4,766 | ||
Other long-term investments | 1,168 | 988 | ||
Reinsurance recoverable | 11,400 | 1,287,157 | ||
Receivables from parents and affiliates | 4,121 | 1,995 | ||
Subtotal excluding separate account assets | 119,234 | 1,440,614 | ||
Total assets | 399,076 | 1,688,869 | ||
Future policy benefits | -348,399 | 1,417,891 | ||
Other Liabilities | 388,268 | ' | ||
Total liabilities | 39,869 | 1,417,891 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Separate Accounts Asset [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Separate account assets | 279,842 | 248,255 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Internal Pricing [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Equity Securities | 569 | [3] | 1,489 | [3] |
Other long-term investments | 0 | [3] | 232 | [3] |
Reinsurance recoverable | 11,400 | [3] | 1,287,157 | [3] |
Receivables from parents and affiliates | 0 | [3] | 0 | [3] |
Subtotal excluding separate account assets | 27,442 | [3] | 1,326,163 | [3] |
Total assets | 109,237 | [3] | 1,403,449 | [3] |
Future policy benefits | -348,399 | [3] | 1,417,891 | [3] |
Other Liabilities | 388,268 | [3] | ' | |
Total liabilities | 39,869 | [3] | 1,417,891 | [3] |
Short-term investments | 18 | [3] | ' | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Internal Pricing [Member] | Separate Accounts Asset [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Separate account assets | 81,795 | [3] | 77,286 | [3] |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | External Priced [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Equity Securities | 2,731 | [4] | 3,277 | [4] |
Other long-term investments | 1,168 | [4] | 756 | [4] |
Reinsurance recoverable | 0 | [4] | 0 | [4] |
Receivables from parents and affiliates | 4,121 | [4] | 1,995 | [4] |
Subtotal excluding separate account assets | 91,792 | [4] | 114,451 | [4] |
Total assets | 289,839 | [4] | 285,420 | [4] |
Future policy benefits | 0 | [4] | 0 | [4] |
Other Liabilities | 0 | [4] | ' | |
Total liabilities | 0 | [4] | 0 | [4] |
Short-term investments | 0 | [4] | ' | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | External Priced [Member] | Separate Accounts Asset [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Separate account assets | 198,047 | [4] | 170,969 | [4] |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | 18,293 | 36,981 | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Internal Pricing [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | 15,100 | [3] | 31,356 | [3] |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | External Priced [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | 3,193 | [4] | 5,625 | [4] |
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | 80,934 | 108,727 | ||
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Internal Pricing [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | 355 | [3] | 5,929 | [3] |
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | External Priced [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Marketable Securities, Fixed Maturities | $80,579 | [4] | $102,798 | [4] |
[1] | (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. | |||
[2] | (4) For the year ended December 31, 2013, the net embedded derivative asset position of $348 million includes $1,228 million of embedded derivatives in an asset position and $880 million of embedded derivatives in a liability position. For the year ended December 31, 2012, the net embedded derivative liability position of $1,418 million includes $431 million of embedded derivatives in an asset position and $1,849 million of embedded derivatives in a liability position. | |||
[3] | (1) Represents valuations which could incorporate internally-derived and market inputs. See below for additional information related to internally developed valuation for significant items in the above table. | |||
[4] | (2) Represents unadjusted prices from independent pricing services and independent non-binding broker quotes where pricing inputs are not readily available. |
Fair_Value_of_Assets_and_Liabi7
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 5,651,401 | 6,135,765 | ||
Future policy benefits | -348,399 | 1,417,891 | [1] | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 99,227 | 145,708 | ||
Reinsurance Recoverables | 11,400 | 1,287,157 | ||
Future policy benefits | -348,399 | [1] | 1,417,891 | [1] |
Maximum [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 15.00% | 17.50% | ||
EBITDA | 7 | [2] | ' | |
Volatility Curve | 28.00% | 34.00% | ||
Call Price | ' | 100.00% | ||
Liquidation Value | 38.49% | 98.00% | ||
Lapse Rate | 11.00% | [3] | 14.00% | [3] |
NPR Spread | 1.09% | [4] | 1.60% | [4] |
Utilization Rate | 94.00% | [5] | 94.00% | [5] |
Withdrawal Rate | 100.00% | [6] | 100.00% | [6] |
Mortality Rate | 13.00% | [7] | 13.00% | [7] |
Minimum [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 8.28% | 8.90% | ||
EBITDA | 5 | [2] | ' | |
Volatility Curve | 15.00% | 19.00% | ||
Call Price | ' | 100.00% | ||
Liquidation Value | 11.61% | 98.00% | ||
Lapse Rate | 0.00% | [3] | 0.00% | [3] |
NPR Spread | 0.08% | [4] | 0.20% | [4] |
Utilization Rate | 70.00% | [5] | 70.00% | [5] |
Withdrawal Rate | 86.00% | [6] | 85.00% | [6] |
Mortality Rate | 0.00% | [7] | 0.00% | [7] |
Weighted Average[ Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 10.61% | 10.60% | ||
EBITDA | 5.91 | [2] | ' | |
Call Price | ' | 100.00% | ||
Liquidation Value | 31.83% | 98.00% | ||
[1] | (4) For the year ended December 31, 2013, the net embedded derivative asset position of $348 million includes $1,228 million of embedded derivatives in an asset position and $880 million of embedded derivatives in a liability position. For the year ended December 31, 2012, the net embedded derivative liability position of $1,418 million includes $431 million of embedded derivatives in an asset position and $1,849 million of embedded derivatives in a liability position. | |||
[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] | Base lapse rates are adjusted at the contract level based on a comparison of the benefit amount and the policyholder account value and reflect other factors, such as the applicability of any surrender charges. A dynamic lapse adjustment reduces the base lapse rate when the benefit amount is greater than the account value, as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. | |||
[4] | To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. In determining the NPR spread, the Company 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] | 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. These assumptions vary based on the product type, the age of the contractholder and the age of the contract. The impact of changes in these assumptions is highly dependent on the contract type and age of the contractholder at the time of the sale and the timing of the first lifetime income withdrawal. | |||
[6] | The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%. | |||
[7] | 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. |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments | ' | ' |
Maximum length of time hedged in cash flow hedge (in years) | '20 years | ' |
Notional of credit derivative | $0 | $0 |
Fair value of credit derivative liability | 0 | 0 |
Maximum exposure to loss from externally-managed investments | 0 | 64 |
Pruco Re FV Of Embedded Derivatives Related To Reinsurance Recoverables | -388 | 1,287 |
FV Of Embedded Derivatives Included In Future Policy Benefits | 348 | -1,418 |
FV Of Embedded Derivatives Included In Fixed Maturities AFS | 0 | -23 |
CreditProtectionPurchasedNotional Amounts | 14 | 14 |
Credit Derivative Protection Purchased Fair Value | ($1) | ($1) |
Derivative_Instruments_Gross_N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Total Derivatives | $43,839,401 | [1] | $26,520,138 | [1] |
Fair Value Asset | ' | ' | ||
Total Derivatives | 73,646 | [1] | 187,616 | [1] |
Fair Value Liability | ' | ' | ||
Total Derivatives | 218,467 | [1] | 68,689 | [1] |
Designated as Hedging Instrument [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Qualifying Hedge Relationships | 249,601 | 145,174 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 6,304 | 4,152 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 11,583 | 3,904 | ||
Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 43,589,800 | 26,374,964 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 67,342 | 183,464 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 206,884 | 64,785 | ||
Credit Default Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 14,275 | 14,275 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 15 | 614 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 862 | 894 | ||
Interest Rate Contract [Member] | Interest Rate Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 2,434,400 | 1,729,400 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 47,475 | 109,855 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 185,222 | 22,930 | ||
Foreign Exchange Contract [Member] | Forward Contracts Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 507 | 5,424 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 2 | 48 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 0 | 0 | ||
Cross Currency Interest Rate Contract [Member] | Currency Swap Member | Designated as Hedging Instrument [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Qualifying Hedge Relationships | 249,601 | 145,174 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 6,304 | 4,152 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 11,583 | 3,904 | ||
Cross Currency Interest Rate Contract [Member] | Currency Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 69,450 | 62,468 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 211 | 1,516 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 3,325 | 2,064 | ||
Equity Contract [Member] | Equity Options [Member] | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 40,739,168 | 24,243,020 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 19,639 | 70,669 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 9,418 | 32,824 | ||
Equity Contract [Member] | Total Return Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 332,000 | 320,377 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 0 | 762 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | $8,057 | $6,073 | ||
[1] | Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was an asset of $348 million and a liability of $1,441 million as of December 31, 2013 and December 31, 2012, respectively, included in “Future policy benefits†and “Fixed maturities, available-for-sale.†|
Derivative_Instruments_Gross_N1
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments | ' | ' |
Net Embedded Derivative | $348 | ($1,441) |
Derivative_Instruments_Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | ($4,519) | ($622) | $1,607 | |||
Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -52,799 | -186,425 | 177,855 | |||
Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 1,029 | 707 | 233 | |||
Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -811 | 40 | 49 | |||
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | -4,848 | [1] | -2,376 | [1] | 1,715 | [1] |
Cash Flow Hedging [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | -337 | |||
Cash Flow Hedging [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 1,029 | 707 | 233 | |||
Cash Flow Hedging [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -794 | 46 | 49 | |||
Cash Flow Hedging [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | -4,848 | [1] | -2,376 | [1] | 1,715 | [1] |
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | -337 | |||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 1,029 | 707 | 233 | |||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -794 | 46 | 49 | |||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | -4,848 | [1] | -2,376 | [1] | 1,715 | [1] |
Nondesignated [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -52,799 | -186,425 | 178,192 | |||
Nondesignated [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -17 | -6 | 0 | |||
Nondesignated [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Interest Rate Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -191,954 | 1,309 | 90,706 | |||
Nondesignated [Member] | Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Foreign Exchange Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 51 | -147 | 175 | |||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -3,450 | -866 | 1,102 | |||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -17 | -6 | 0 | |||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Credit Risk Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -1,106 | -763 | 733 | |||
Nondesignated [Member] | Credit Risk Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Credit Risk Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Credit Risk Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Equity Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | -130,714 | -69,527 | -3,264 | |||
Nondesignated [Member] | Equity Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Equity Contract [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Equity Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Embedded Derivative [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 274,374 | -116,431 | 88,740 | |||
Nondesignated [Member] | Embedded Derivative [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Embedded Derivative [Member] | Other Income [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | |||
Nondesignated [Member] | Embedded Derivative [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | $0 | [1] | $0 | [1] | $0 | [1] |
[1] | Amounts deferred in “Accumulated other comprehensive income (loss).†|
Derivative_Instruments_Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments | ' | ' | ' |
Beginning Balance | $147 | $2,523 | $808 |
Net deferred losses on cash flow hedges for the period | -4,519 | -622 | 1,607 |
Amount reclassified into current period earnings | -329 | -1,754 | 108 |
Ending Balance | ($4,701) | $147 | $2,523 |
Derivative_Instruments_Offsett
Derivative Instruments Offsetting Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Offsetting Assets [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | $129,358 | $390,809 |
Gross Amounts Offset In Statement Of Financial Position | -73,219 | -68,689 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 56,139 | 322,120 |
Financial Instruments And Collateral | -56,139 | -203,437 |
Net Amount | 0 | 118,683 |
Offsetting Assets [Member] | Derivative [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 73,219 | 187,372 |
Gross Amounts Offset In Statement Of Financial Position | -73,219 | -68,689 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 0 | 118,683 |
Financial Instruments And Collateral | 0 | 0 |
Net Amount | 0 | 118,683 |
Offsetting Assets [Member] | Offsetting Securities Purchased Under Agreements To Resell [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 56,139 | 203,437 |
Gross Amounts Offset In Statement Of Financial Position | 0 | 0 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 56,139 | 203,437 |
Financial Instruments And Collateral | -56,139 | -203,437 |
Net Amount | 0 | 0 |
Offsetting Liabilities [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 218,467 | 68,689 |
Gross Amounts Offset In Statement Of Financial Position | -73,051 | -68,689 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 145,416 | 0 |
Financial Instruments And Collateral | -136,593 | 0 |
Net Amount | 8,823 | 0 |
Offsetting Liabilities [Member] | Derivative [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 218,467 | 68,689 |
Gross Amounts Offset In Statement Of Financial Position | -73,051 | -68,689 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 145,416 | 0 |
Financial Instruments And Collateral | -136,593 | 0 |
Net Amount | 8,823 | 0 |
Offsetting Liabilities [Member] | Offsetting Securities Sold Under Agreements To Repurchase [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset In Statement Of Financial Position | 0 | 0 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 0 | 0 |
Financial Instruments And Collateral | 0 | 0 |
Net Amount | $0 | $0 |
Commitments_Contingent_Liabili1
Commitments, Contingent Liabilities And Litigation And Regulatory Matters (Narrative Excluding Litigation) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ' |
Purchase Obligation Commercial Mortgage Loan | $24.90 |
Purchase Obligation To Purchase Or Fund Investments | $116 |
Reinsurance_Amounts_Included_I
Reinsurance (Amounts Included In IS) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance [Abstract] | ' | ' | ' |
Premiums | $1,319,390 | $1,221,990 | $1,127,239 |
Reinsurance ceded | -1,262,539 | -1,153,854 | -1,054,452 |
Premiums | 56,851 | 68,136 | 72,787 |
Direct policy charges and fees | 2,401,216 | 2,048,167 | 1,438,273 |
Reinsurance ceded | -520,291 | -513,404 | -328,778 |
Policy charges and fee income | 1,880,925 | 1,534,763 | 1,109,495 |
Policyholder's benefits direct | 1,260,166 | 1,666,650 | 1,445,993 |
Policyholders benefits ceded | -1,081,242 | -1,313,157 | -1,133,782 |
Policyholders' benefits | 178,924 | 353,494 | 312,211 |
Realized capital gains (losses) net, associated with derivatives | ($2,058,885) | ($53,842) | $1,185,096 |
Reinsurance_Amounts_Included_I1
Reinsurance (Amounts Included In BS) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance [Abstract] | ' | ' |
Domestic life insurance-affiliated | $12,494,746,000 | $4,619,282,000 |
Domestic individual annuities-affiliated | 642,000 | 1,287,660,000 |
Domestic life insurance-unaffiliated | 4,832,000 | 9,673,000 |
Taiwan life insurance-affiliated | 1,157,639,000 | 1,115,560,000 |
Reinsurance recoverables | 13,657,859,000 | 7,032,175,000 |
Reinsurance Recoverable Reclass Amount | $388,000,000 | ' |
Reinsurance_Life_Insurance_In_
Reinsurance (Life Insurance In Force) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Reinsurance [Abstract] | ' | ' | ' |
Gross life insurance face amount in force | $661,834,408 | $612,238,145 | $569,684,855 |
Assumed life insurance face amount in force | 44,691,950 | 0 | 0 |
Reinsurance ceded | -650,340,432 | -557,559,303 | -517,857,797 |
Net life insurance face amount in force | $56,185,926 | $54,678,842 | $51,827,058 |
Related_Party_Expense_Charges_
Related Party (Expense Charges and Allocations) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Stock or Unit Option Plan Expense | $1 | $1 | $1 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 7 | 6 | 7 |
Pension Expense | 22 | 18 | 18 |
Defined Contribution Plan Employer Matching Contribution Percent | 4.00% | ' | ' |
Defined Contribution Plan, Cost Recognized | 8 | 8 | 8 |
Commissions Paid To PAD | $877 | $1,222 | $1,144 |
Related_Party_Corporate_Owned_
Related Party (Corporate Owned Life Insurance) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Life Insurance, Corporate or Bank Owned, Amount | $2,595 | $2,390 | ' |
Fees related to corporate owned life insurance | 42 | 35 | 33 |
Maximum amount of mortality risk | $3.50 | ' | ' |
Related_Party_Reinsurance_With
Related Party (Reinsurance With Affiliates) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transactions [Abstract] | ' | ' |
Reinsurance Recoverables | $13,657,859 | $7,032,175 |
Policy Loans | -64,720 | -52,767 |
Deferred Policy Acquisition Costs | -1,627,838 | -1,112,195 |
Policyholders account balance | 4,681,356 | 0 |
Future policy benefits and other policyholder liabilities | 1,359,340 | 0 |
Other liabilities reinsurance payables | $618,781 | $309,478 |
Related_Party_Reinsurance_Reco
Related Party (Reinsurance Recoverable Breakout By Affiliate) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | $13,657,859,000 | $7,032,175,000 | |
Reinsurance Recoverable Reclass Amount | 388,000,000 | ' | |
UPARC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 44,835,000 | 28,655,000 | |
PARU [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 8,091,712,000 | 1,633,026,000 | |
PURC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 940,218,000 | 0 | |
PARCC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 2,411,157,000 | 2,299,391,000 | |
PAR Term [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 816,787,000 | 486,012,000 | |
Prudential Insurance [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 190,035,000 | 172,198,000 | |
Pruco Re [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 642,000 | [1] | 1,287,660,000 |
Reinsurance Recoverable Reclass Amount | 388,000,000 | ' | |
Prudential Of Taiwan [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 1,157,639,000 | 1,115,560,000 | |
Unaffiliated [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | $4,832,000 | $9,673,000 | |
[1] | (1) December 31, 2013 excludes $388 million reclassed to other liabilities due to the mark-to-market impact discussed above. |
Related_Party_Income_Statement
Related Party (Income Statement Reinsurance Results) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
Premiums | ($1,262,539) | ($1,153,853) | ($1,054,452) |
Policy Charges And Fee Income | -475,692 | -513,404 | -328,778 |
Net Investment Income | -2,096 | -1,500 | -808 |
Other Income | -31,119 | 30,303 | 3,183 |
Interest Credited To Policyholders Account Balance | -72,977 | -51,990 | -23,998 |
Policyholders Benefits | -1,325,428 | -1,313,157 | -1,133,782 |
Reinsurance Expense Allowances Net Of Capitalization And Amortization | -181,440 | -249,008 | -132,961 |
Realized Investment Gain Loss Net | ($2,058,885) | ($53,842) | $1,185,096 |
Related_Party_Reinsurance_With1
Related Party (Reinsurance With Affiliates UPARC) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' |
Uparc Reinsurance End Date | 1-Jul-11 |
UPARC Reinsurance Percentage, First Million Dollars | 90.00% |
UPARC Reinsurance face amount | $1 |
UPARC Reinsurance Percentage, Excess of a Million Dollars | 100.00% |
UPARC Percentage Related to Uncollectable Policy Charges | 100.00% |
UPARC Reinsurance new effective date | 1-Jan-11 |
UPARC Updated Reinsurance Percentage, First Million Dollars | 27.00% |
UPARC Updated Reinsurance Percentage, Excess of a Million Dollars | 30.00% |
UPARC Updated Percentage Related to Uncollectable Policy Charges | 30.00% |
UPARC Recapture Premium Date | '2011-10-31 |
Related_Party_Reinsurance_With2
Related Party (Reinsurance With Affiliates PAR U) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
PAR U Coinsurance Agreement Date | '2011-07-01 |
PAR U Reinsurance Percentage | 70.00% |
Effective Date Of Reinsured Policies With PAR U | '2011-01-01 |
Related_Party_Reinsurance_With3
Related Party (Reinsurance With Affiliates PAR U for PLNJ) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
PAR U PLNJ Reinsurance Percentage | 95.00% |
Related_Party_Reinsurance_With4
Related Party (Reinsurance With Affiliates PARCC) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
PARCC Reinsurance Percentage | 90.00% |
Effective date of reinsured policies with PARCC | '2010-01-01 |
Related_Party_Reinsurance_With5
Related Party (Reinsurance With Affiliates PAR TERM) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
PAR TERM Reinsurance Percentage | 95.00% |
Effective Date Of Reinsured Policies With PAR TERM | '2010-01-01 |
Related_Party_Reinsurance_With6
Related Party (Reinsurance With Affiliates Prudential Insurance) (Details) | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' |
Prudential Insurance Recapture Effective Date | '2011-07-01 |
Prudential Insurance Policy Effective Date | '2011-01-02 |
Related_Party_Reinsurance_With7
Related Party (Reinsurance With Affiliates Pruco Re) (Details) | Dec. 31, 2013 |
Ceded Rider Fees [Line Items] | ' |
HDI And HD6 Plus Effective Date | '2011-10-01 |
LT5 Effective Date | '2005-05-06 |
LT5 Agreement Date | '2007-08-01 |
Related_Party_Taiwan_Branch_Re
Related Party (Taiwan Branch Reinsurance Agreement) (Details) | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' |
Taiwan Branch Start Date | '2001-01-31 |
Related_Party_Affiliated_Asset
Related Party (Affiliated Asset Administration Fee Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
AST Revenue Sharing Income | $311 | $227 | $153 |
PSF Revenue Sharing Income | $11 | $11 | $11 |
Related_Party_Affiliated_Inves
Related Party (Affiliated Investment Management Expenses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions [Abstract] | ' | ' | ' |
PIM Mangement Expenses | $14.60 | $14.10 | $13.90 |
Related_Party_Affiliated_Asset1
Related Party (Affiliated Asset Transfers) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Asset Transfer [Line Items] | ' |
UPARC Asset Transfer Date | '2011-10-01 |
PAR U Asset Transfer Date | '2011-10-01 |
PAR U Asset Sale Date | '2011-10-01 |
Prudential Insurance Asset Sale Date | '2011-11-01 |
Prudential Insurance Commercial Loan Sale Date | '2011-12-01 |
PARCC Asset Sale Date | '2011-12-01 |
Prudential Insurance Purchase Fixed Maturities April Sale Date | '2012-04-01 |
PFI Purchase Fixed Maturities April Sale Date | '2012-04-01 |
PFI Purchase Fixed Maturities June Sale Date | '2012-06-12 |
PLNJ To PAR U Transfer Date | '2012-09-01 |
PLNJ To PFI Transfer Date | '2012-09-01 |
Prudential Insurance Asset Transfer 1 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-12-01 |
Asset Transfer Fair Value | $21 |
Asset Transfer Amortizied Cost | 19 |
Asset Transfer Apic Change | 1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 2 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-04-01 |
Asset Transfer Fair Value | 3 |
Asset Transfer Amortizied Cost | 2 |
Asset Transfer Apic Change | -1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 3 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-06-01 |
Asset Transfer Fair Value | 91 |
Asset Transfer Amortizied Cost | 74 |
Asset Transfer Apic Change | -11 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 4 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-11-03 |
Asset Transfer Fair Value | 110 |
Asset Transfer Amortizied Cost | 102 |
Asset Transfer Apic Change | -5 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 5 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-12-05 |
Asset Transfer Fair Value | 59 |
Asset Transfer Amortizied Cost | 56 |
Asset Transfer Apic Change | -2 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 6 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-01-06 |
Asset Transfer Fair Value | 126 |
Asset Transfer Amortizied Cost | 108 |
Asset Transfer Apic Change | -12 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 7 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-01-06 |
Asset Transfer Fair Value | 4,825 |
Asset Transfer Amortizied Cost | 4,825 |
Asset Transfer Apic Change | -1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 8 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-03-08 |
Asset Transfer Fair Value | 47 |
Asset Transfer Amortizied Cost | 44 |
Asset Transfer Apic Change | -2 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Insurance Asset Transfer 9 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-09-01 |
Asset Transfer Fair Value | 2 |
Asset Transfer Amortizied Cost | 2 |
Asset Transfer Apic Change | 1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Financial Asset Transfer 1 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-11-01 |
Asset Transfer Fair Value | 45 |
Asset Transfer Amortizied Cost | 41 |
Asset Transfer Apic Change | 3 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Financial Asset Transfer 2 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-04-01 |
Asset Transfer Fair Value | 28 |
Asset Transfer Amortizied Cost | 25 |
Asset Transfer Apic Change | -2 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Financial Asset Transfer 3 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-09-02 |
Asset Transfer Fair Value | 46 |
Asset Transfer Amortizied Cost | 41 |
Asset Transfer Apic Change | 3 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Financial Asset Transfer 4 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-11-03 |
Asset Transfer Fair Value | 12 |
Asset Transfer Amortizied Cost | 12 |
Asset Transfer Apic Change | -1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
Prudential Financial Asset Transfer 5 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-09-13 |
Asset Transfer Fair Value | 25 |
Asset Transfer Amortizied Cost | 25 |
Asset Transfer Apic Change | -1 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 1 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-10-01 |
Asset Transfer Fair Value | 1,006 |
Asset Transfer Amortizied Cost | 943 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 63 |
Asset Transfer Derivative Gain Loss | -61 |
PARU Asset Transfer 2 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-10-01 |
Asset Transfer Fair Value | 92 |
Asset Transfer Amortizied Cost | 84 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 8 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 3 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2012-09-01 |
Asset Transfer Fair Value | 156 |
Asset Transfer Amortizied Cost | 142 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 14 |
Asset Transfer Derivative Gain Loss | -5 |
PARU Asset Transfer 4 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-01-06 |
Asset Transfer Fair Value | 126 |
Asset Transfer Amortizied Cost | 108 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 18 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 5 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-01-06 |
Asset Transfer Fair Value | 4,826 |
Asset Transfer Amortizied Cost | 4,821 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 5 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 6 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-02-07 |
Asset Transfer Fair Value | 132 |
Asset Transfer Amortizied Cost | 122 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 10 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 7 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-09-01 |
Asset Transfer Fair Value | 704 |
Asset Transfer Amortizied Cost | 694 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 10 |
Asset Transfer Derivative Gain Loss | -15 |
UPARC Asset Transfer 1 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-10-01 |
Asset Transfer Fair Value | 350 |
Asset Transfer Amortizied Cost | 0 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 37 |
UPARC Asset Transfer 2 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-02-07 |
Asset Transfer Fair Value | 56 |
Asset Transfer Amortizied Cost | 52 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
UPARC Asset Transfer 3 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2013-09-13 |
Asset Transfer Fair Value | 192 |
Asset Transfer Amortizied Cost | 189 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 3 |
PARCC Asset Transfer 1 [Member] | ' |
Asset Transfer [Line Items] | ' |
Asset Transfer Date | '2011-12-01 |
Asset Transfer Fair Value | 38 |
Asset Transfer Amortizied Cost | 36 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 2 |
Asset Transfer Derivative Gain Loss | $0 |
Related_Party_Debt_Agreements_
Related Party (Debt Agreements) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party [Line Items] | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $2,200,000,000 | ' | ' |
Interest Expense | 40,200,000 | 43,700,000 | 33,100,000 |
Current Principle Amount | 1,866,900,000 | ' | ' |
Opening Principle Amount | ' | 1,783,000,000 | ' |
Prudential Insurance Debt, Borrowing Date | '2010-12-20 | ' | ' |
Prudential Insurance Debt, Maturity Date | '2015-12-21 | ' | ' |
Prudential Financial Debt, Borrowing Date | '2010-11-15 | ' | ' |
Prudential Financial Debt, Maturity Date | '2015-11-13 | ' | ' |
Prudential Financial Debt, Repayment Date | '2011-12-15 | ' | ' |
Prudential Financial June Term Out Debt, Borrowing Date | '2011-06-20 | ' | ' |
Prudential Financial June Term Out Debt, Close Maturity Date | '2012-06-19 | ' | ' |
Prudential Financial June Term Out Debt, Far Maturity Date | '2016-06-19 | ' | ' |
Prudential Financial December Term Out Debt, Borrowing Date 2 | '2011-12-15 | ' | ' |
Prudential Financial December Term Out Debt, Borrowing Date 2 | '2011-12-16 | ' | ' |
Prudential Financial December Term Out Debt, Close Maturity Date | '2012-12-16 | ' | ' |
Prudential Financial December Term Out Debt, Far Maturity Date | '2016-12-16 | ' | ' |
Washington Street June Term Out Debt, Borrowing Date | '2012-06-20 | ' | ' |
Washington Street June Term Out Debt, Close Maturity Date | '2014-06-15 | ' | ' |
Washington Street June Term Out Debt, Far Maturity Date | '2017-06-15 | ' | ' |
Prudential Financial Loan 1 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2010-11-15 | ' | ' |
Current Principle Amount | 66,000,000 | ' | ' |
Opening Principle Amount | ' | 66,000,000 | ' |
Interest Rate | 3.01% | ' | ' |
Maturity Date | '2015-11-13 | ' | ' |
Prudential Financial Loan 2 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2011-06-20 | ' | ' |
Current Principle Amount | 150,000,000 | ' | ' |
Opening Principle Amount | ' | 200,000,000 | ' |
Interest Rate Near | 1.64% | ' | ' |
Interest Rate Far | 3.17% | ' | ' |
Maturity Date Near | '2013-06-19 | ' | ' |
Maturity Date Far | '2016-06-19 | ' | ' |
Prudential Financial Loan 3 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2011-12-15 | ' | ' |
Current Principle Amount | 159,000,000 | ' | ' |
Opening Principle Amount | ' | 212,000,000 | ' |
Interest Rate Near | 2.65% | ' | ' |
Interest Rate Far | 3.61% | ' | ' |
Maturity Date Near | '2013-12-16 | ' | ' |
Maturity Date Far | '2016-12-15 | ' | ' |
Prudential Financial Loan 4 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2011-12-16 | ' | ' |
Current Principle Amount | 33,000,000 | ' | ' |
Opening Principle Amount | ' | 44,000,000 | ' |
Interest Rate Near | 2.65% | ' | ' |
Interest Rate Far | 3.61% | ' | ' |
Maturity Date Near | '2013-12-16 | ' | ' |
Maturity Date Far | '2016-12-16 | ' | ' |
Prudential Financial Loan 5 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2012-12-20 | ' | ' |
Current Principle Amount | 88,000,000 | ' | ' |
Opening Principle Amount | ' | 267,000,000 | ' |
Interest Rate | 1.37% | ' | ' |
Maturity Date | '2015-12-15 | ' | ' |
Prudential Financial Loan 6 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-11-15 | ' | ' |
Current Principle Amount | 9,000,000 | ' | ' |
Opening Principle Amount | ' | 0 | ' |
Interest Rate | 2.24% | ' | ' |
Maturity Date | '2018-12-15 | ' | ' |
Prudential Financial Loan 7 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-11-15 | ' | ' |
Current Principle Amount | 23,000,000 | ' | ' |
Opening Principle Amount | ' | 0 | ' |
Interest Rate | 3.19% | ' | ' |
Maturity Date | '2020-12-15 | ' | ' |
Prudential Insurance Loan 1 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2010-12-20 | ' | ' |
Current Principle Amount | 204,000,000 | ' | ' |
Opening Principle Amount | ' | 204,000,000 | ' |
Interest Rate | 3.47% | ' | ' |
Maturity Date | '2015-12-21 | ' | ' |
Prudential Insurance Loan 2 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-12-06 | ' | ' |
Current Principle Amount | 120,000,000 | ' | ' |
Opening Principle Amount | ' | 0 | ' |
Interest Rate | 2.60% | ' | ' |
Maturity Date | '2018-12-15 | ' | ' |
Prudential Insurance Loan 3 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-12-06 | ' | ' |
Current Principle Amount | 130,000,000 | ' | ' |
Opening Principle Amount | ' | 0 | ' |
Interest Rate | 4.39% | ' | ' |
Maturity Date | '2023-12-15 | ' | ' |
Prudential Insurance Loan 4 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-12-06 | ' | ' |
Current Principle Amount | 250,000,000 | ' | ' |
Opening Principle Amount | ' | 0 | ' |
Interest Rate | 3.64% | ' | ' |
Maturity Date | '2020-12-15 | ' | ' |
Washington Street Loan 1 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2012-06-20 | ' | ' |
Current Principle Amount | 316,000,000 | ' | ' |
Opening Principle Amount | ' | 395,000,000 | ' |
Interest Rate Near | 1.15% | ' | ' |
Interest Rate Far | 3.02% | ' | ' |
Maturity Date Near | '2013-06-15 | ' | ' |
Maturity Date Far | '2017-06-15 | ' | ' |
Washington Street Loan 2 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2012-12-17 | ' | ' |
Current Principle Amount | 264,000,000 | ' | ' |
Opening Principle Amount | ' | 330,000,000 | ' |
Interest Rate Near | 0.95% | ' | ' |
Interest Rate Far | 1.87% | ' | ' |
Maturity Date Near | '2013-12-17 | ' | ' |
Maturity Date Far | '2017-12-17 | ' | ' |
Washington Street Loan 3 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2012-12-17 | ' | ' |
Current Principle Amount | 52,000,000 | ' | ' |
Opening Principle Amount | ' | 65,000,000 | ' |
Interest Rate Near | 0.95% | ' | ' |
Interest Rate Far | 1.87% | ' | ' |
Maturity Date Near | '2013-12-17 | ' | ' |
Maturity Date Far | '2017-12-17 | ' | ' |
Pru Funding Loan 1 [Member] | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' |
Borrowing Date | '2013-12-31 | ' | ' |
Current Principle Amount | 2,900,000 | ' | ' |
Opening Principle Amount | ' | $0 | ' |
Interest Rate | 0.23% | ' | ' |
Maturity Date | '2014-01-07 | ' | ' |
Related_Party_Contributed_Capi
Related Party (Contributed Capital and Dividend) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Dividend | $268 | $155 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
QuarterlyFinancialDataAbstract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $668,041 | $681,086 | $656,314 | $690,333 | $624,315 | $540,685 | $561,203 | $498,074 | $2,695,774 | $2,224,277 | $2,131,684 |
Total benefits and expenses | 303,812 | -178,013 | 229,901 | 235,444 | 263,722 | 181,818 | 1,054,097 | -140,737 | 591,144 | 1,358,900 | 2,485,883 |
Income Loss From Continuing Operations Before Income Taxes And Operating Joint Ventures | 364,229 | 859,099 | 426,413 | 454,889 | 360,593 | 358,867 | -492,894 | 638,811 | 2,104,630 | 865,377 | -354,199 |
Net income | $301,512 | $577,646 | $311,997 | $347,055 | $260,797 | $315,599 | ($353,363) | $461,304 | $1,538,210 | $684,337 | ($132,743) |