Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Document And Entity [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Fixed maturities, available for sale, at fair value (amortized cost: 2013 $5,538,933; 2012 $5,662,255) | $6,047,495 | $5,651,401 |
Equity Securites, available for sale, at fair value (cost: 2013 $567; 2012 $3,119) | 37,418 | 771 |
Trading account assets, at fair value | 27,738 | 18,892 |
Policy loans | 1,108,653 | 1,086,772 |
Short-term investments | 109,546 | 16,002 |
Commercial mortgage and other loans | 1,585,617 | 1,532,165 |
Other long-term investments | 250,323 | 226,704 |
Total investments | 9,166,790 | 8,532,707 |
Cash and cash equivalents | 145,527 | 307,243 |
Deferred policy acquisition costs | 5,126,728 | 5,034,299 |
Accrued investment income | 90,147 | 89,465 |
Reinsurance recoverables | 16,317,710 | 13,657,859 |
Receivables from parents and affiliates | 273,251 | 262,362 |
Deferred sales inducements | 935,062 | 989,889 |
Other assets | 49,976 | 45,983 |
Separate account assets | 107,208,099 | 100,402,349 |
TOTAL ASSETS | 139,313,290 | 129,322,156 |
LIABILITIES | ' | ' |
Policyholders' account balances | 14,762,216 | 14,303,330 |
Future policy benefits and other policyholder liabilities | 9,841,487 | 6,916,669 |
Cash collateral for loaned securities | 89,917 | 84,867 |
Securities sold under agreements to repurchase | 4,400 | 0 |
Income taxes | 294,463 | 186,015 |
Short-term debt | 332,000 | 274,900 |
Long-term debt | 1,463,000 | 1,592,000 |
Payables to parent and affiliates | 38,353 | 191,065 |
Other liabilities | 576,016 | 964,740 |
Separate account liabilities | 107,208,099 | 100,402,349 |
TOTAL LIABILITIES | 134,609,951 | 124,915,935 |
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 | 804,367 | 804,237 |
Retained earnings | 3,733,077 | 3,542,838 |
Accumulated other comprehensive income | 163,395 | 56,646 |
TOTAL EQUITY | 4,703,339 | 4,406,221 |
TOTAL LIABILITIES AND EQUITY | $139,313,290 | $129,322,156 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed maturities, available for sale, amortized cost | $5,739,004 | $5,538,933 |
Available For Sale Equity Securities Amortized Cost Basis | $35,602 | $567 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES | ' | ' | ' | ' |
Premiums | $18,007 | $13,891 | $33,252 | $27,097 |
Policy charges and fee income | 523,196 | 486,876 | 1,036,821 | 950,301 |
Net investment income | 103,220 | 105,032 | 201,697 | 207,540 |
Asset administration fees | 93,727 | 78,964 | 183,151 | 161,327 |
Other income | 13,167 | 11,176 | 26,574 | -6,707 |
Realized investment gains (losses), net: | ' | ' | ' | ' |
Other-than-temporary impairments on fixed maturity securities | -363 | -2,424 | -363 | -7,277 |
Other-than-temporary impairments on fixed maturity securities transferred to Other Comprehensive Income | 236 | 2,212 | 236 | 5,668 |
Other realized investment gains (losses), net | 31,795 | -39,413 | 117,326 | 8,698 |
Total realized investment gains (losses), net | 31,668 | -39,625 | 117,199 | 7,089 |
TOTAL REVENUES | 782,985 | 656,314 | 1,598,694 | 1,346,647 |
BENEFITS AND EXPENSES | ' | ' | ' | ' |
Policyholders' benefits | 72,131 | 64,890 | 157,166 | 127,296 |
Interest credited to policyholders' account balances | 83,776 | 26,448 | 163,579 | 53,416 |
Amortization of deferred policy acquisition costs | 84,352 | -78,758 | 146,588 | -158,600 |
General, administrative and other expenses | 243,023 | 217,321 | 485,084 | 443,233 |
TOTAL BENEFITS AND EXPENSES | 483,282 | 229,901 | 952,417 | 465,345 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 299,703 | 426,413 | 646,277 | 881,302 |
IncomeTaxExpenseBenefitContinuingOperationsAbstract | ' | ' | ' | ' |
Total income tax expense (benefit) on continuing operations | 50,634 | 114,416 | 118,038 | 222,250 |
NET INCOME | 249,069 | 311,997 | 528,239 | 659,052 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation Adjustments | -34 | 69 | -36 | -138 |
Unrealized Investment gains (losses) for the period | 77,811 | -235,553 | 170,185 | -240,516 |
Reclassification adjustment for (gains) losses included in net income | -4,648 | -4,451 | -5,920 | -35,509 |
Net Unrealized investment gains (losses) | 73,163 | -240,004 | 164,265 | -276,025 |
Other Comprehensive income (loss), before tax | 73,129 | -239,935 | 164,229 | -276,163 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' |
Foreign Currency translation adjustments, taxes | -13 | 25 | -13 | -48 |
Net unrealized invesment gains, taxes | 25,607 | -84,002 | 57,493 | -96,608 |
Other comprehensive income, tax expense (benefit) | 25,594 | -83,977 | 57,480 | -96,656 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 47,535 | -155,958 | 106,749 | -179,507 |
COMPREHENSIVE INCOME | $296,604 | $156,039 | $634,988 | $479,545 |
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, 2012 | ' | $2,500 | $818,303 | $2,427,628 | $267,461 | $3,515,892 |
Contributed capital | ' | 0 | -14,145 | 0 | 0 | -14,145 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Net income | 659,052 | 0 | 0 | 659,052 | 0 | 659,052 |
Other comprehensive income (loss), net of tax | -179,507 | 0 | 0 | 0 | -179,507 | -179,507 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | 479,545 |
Balance at Jun. 30, 2013 | ' | 2,500 | 804,158 | 3,086,680 | 87,954 | 3,981,292 |
Balance at Dec. 31, 2013 | ' | 2,500 | 804,237 | 3,542,838 | 56,646 | 4,406,221 |
Contributed capital | ' | 0 | 130 | 0 | 0 | 130 |
Dividend To Parent | ' | 0 | 0 | -338,000 | 0 | -338,000 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Net income | 528,239 | 0 | 0 | 528,239 | 0 | 528,239 |
Other comprehensive income (loss), net of tax | 106,749 | 0 | 0 | 0 | 106,749 | 106,749 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | 634,988 |
Balance at Jun. 30, 2014 | ' | $2,500 | $804,367 | $3,733,077 | $163,395 | $4,703,339 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $528,239 | $659,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Policy charges and fee income | -64,985 | -95,612 |
Interest credited to policyholders' account balances | 163,579 | 53,416 |
Realized investment (gains) losses, net | -117,199 | -7,089 |
Amortization and other non-cash items | -34,939 | -23,113 |
Change in: | ' | ' |
Future policy benefits and other insurance liabilities | 737,608 | 565,390 |
Reinsurance recoverables | -696,228 | -516,820 |
Accrued investment income | -682 | -4,692 |
Receivables from parents and affiliates | 2,542 | -68,857 |
Payables to parent and affiliates | 6,457 | -39,021 |
Deferred policy acquisition costs | -155,604 | -649,898 |
Income taxes payable | 50,967 | 127,679 |
Deferred Sales Inducements | -5,159 | -13,325 |
Other, net | -38,054 | -53,729 |
Cash flows from (used in) operating activities | 363,628 | 11,423 |
Proceeds from the sale/maturity/prepayment of: | ' | ' |
Fixed maturities, available for sale | 471,833 | 673,173 |
Short-term investments | 216,793 | 369,310 |
Policy loans | 55,823 | 65,544 |
Proceeds from policy loans ceded | 3,157 | 3,629 |
Commercial mortgage and other loans | 53,735 | 77,301 |
Other long-term investments | 3,581 | 3,195 |
Equity securities, available for sale | 5,210 | 2,342 |
Trading account assets, at fair value | 1,375 | 817 |
Payments for the purchase/origination of: | ' | ' |
Fixed maturities, available for sale | -665,106 | -1,218,979 |
Short-term investments | -309,812 | -330,805 |
Policy loans | -56,217 | -49,639 |
Payments from policy loans ceded | -5,048 | -4,498 |
Commercial mortgage and other loans | -118,865 | -121,449 |
Other long-term investments | -31,843 | -18,543 |
Equity securities, available for sale | -40,101 | -10,508 |
Trading account assets, at fair value | -8,800 | -9,478 |
Notes receivable from parent and affiliates, net | -12,232 | 8,402 |
Other | 916 | 696 |
Cash flows used in investing activities | -431,819 | -557,752 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Policyholders' account deposits | 1,401,561 | 1,833,747 |
Ceded policyholders' account deposits | -279,695 | -180,700 |
Policyholders' account withdrawals | -843,350 | -1,388,518 |
Ceded policyholders' account withdrawals | 17,509 | 18,301 |
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 9,450 | 41,564 |
Dividend to parent | 338,000 | 0 |
Net increase in short term borrowing | 57,100 | -8,000 |
Capital asset transfer activity | 130 | -3,524 |
Drafts outstanding | 10,770 | 10,839 |
Net change in long-term borrowing | -129,000 | -50,000 |
Change in reinsurance recoverables | 0 | 0 |
Cash flows from (used in) financing activities | -93,525 | 273,709 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -161,716 | -272,620 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 307,243 | 412,109 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $145,527 | $139,489 |
Significant_Noncash_Transactio
Significant Noncash Transaction | 6 Months Ended |
Jun. 30, 2014 | |
Consolidated Statements of Cash Flows | ' |
Signinicant Noncash Transaction | ' |
Significant Non Cash Transactions | |
Cash Flows from Investing Activities for the six months ended June 30, 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 Universal Prudential Arizona Reinsurance Company, (UPARC), an affiliate, and the Company, and Prudential Arizona Reinsurance Universal Company, (PAR U), an affiliate (See Note 7). | |
Cash Flows from Investing Activities for the six months ended June 30, 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 its parent company, Prudential Insurance, in connection with the acquisition of the Hartford Life Business. | |
Cash Flows from Investing Activities for the six months ended June 30, 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. (See Note 7). | |
Cash Flows from Financing Activities for the six months ended June 30, 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. | |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Business and Basis of Presentation [Abstract] | ' |
Business and Basis of Presentation | ' |
Pruco Life Insurance Company, or the “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 in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors. | |
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. | |
1. BUSINESS AND BASIS OF PRESENTATION | |
Pruco Life Insurance Company, or the “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 in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors. | |
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 increased the Company's scale in the U.S. individual life insurance market, particularly universal life products, and provides complimentary distribution opportunities through expanded wirehouse and bank distribution channels. | |
In connection with this transaction, Prudential Insurance retroceded to the Company the portion of the assumed business that is classified as guaranteed universal life insurance (“GUL”), with account values of approximately $4 billion as of January 2, 2013. The Company has reinsured more than 79,000 GUL policies with a net retained face amount in force of approximately $30 billion. The Company then retroceded all of the GUL policies to an affiliated captive reinsurance company. Collectively, these transactions do not have a material impact on equity, as determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), or the statutory capital and surplus of the Company. | |
Basis of Presentation | |
The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. | |
Significant_Accounting_Policie
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies and Pronouncements | ' |
2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS | |
This section supplements, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Adoption of New Accounting Pronouncements | |
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
In 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 was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 became effective for interim or annual reporting periods that began after December 15, 2013, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 (“AOCI”) 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 became effective for interim or annual reporting periods that began after December 15, 2012 and was 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 guidance became effective for interim or annual reporting periods that began on or after January 1, 2013, and was applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 5. | |
Future Adoption of New Accounting Pronouncements | |
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. | |
In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2016 and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
In August 2014, the FASB issued updated guidance for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity. Under the guidance, an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or financial liabilities, whichever is more observable. When elected, the measurement alternative will eliminate the measurement difference that exists when both are measured at fair value. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2015. Early adoption will be permitted. This guidance can be elected for modified retrospective or full retrospective adoption. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
2. SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS | |
This section supplements, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Adoption of New Accounting Pronouncements | |
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
In 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 was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 became effective for interim or annual reporting periods that began after December 15, 2013, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 (“AOCI”) 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 became effective for interim or annual reporting periods that began after December 15, 2012 and was 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 guidance became effective for interim or annual reporting periods that began on or after January 1, 2013, and was applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 5. | |
Investments
Investments | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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: | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
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 | $ | 88,742 | $ | 7,313 | $ | 346 | $ | 95,709 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 120,828 | 7,101 | 706 | 127,223 | - | ||||||||||||||||
Foreign government bonds | 28,703 | 3,170 | 138 | 31,735 | - | ||||||||||||||||
Public utilities | 831,661 | 60,332 | 5,802 | 886,191 | - | ||||||||||||||||
Redeemable preferred stock | 841 | 156 | - | 997 | - | ||||||||||||||||
All other corporate securities | 3,727,389 | 222,324 | 22,719 | 3,926,994 | -249 | ||||||||||||||||
Asset-backed securities (1) | 254,286 | 9,526 | 505 | 263,307 | -4,305 | ||||||||||||||||
Commercial mortgage-backed securities | 543,416 | 20,798 | 3,579 | 560,635 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 143,138 | 11,789 | 223 | 154,704 | -932 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,739,004 | $ | 342,509 | $ | 34,018 | $ | 6,047,495 | $ | -5,486 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | 66 | $ | 57 | $ | - | $ | 123 | |||||||||||||
Industrial, miscellaneous & other | 4 | 16 | - | 20 | |||||||||||||||||
Mutual funds | 35,192 | 1,538 | 1 | 36,729 | |||||||||||||||||
Non-redeemable preferred stocks | 340 | 206 | - | 546 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 35,602 | $ | 1,817 | $ | 1 | $ | 37,418 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, 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 $12 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-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, auto loans, 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. | |||||||||||||||||||||
The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2014, are as follows: | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||
Cost | Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due in one year or less | $ | 301,388 | $ | 308,535 | |||||||||||||||||
Due after one year through five years | 1,182,415 | 1,287,729 | |||||||||||||||||||
Due after five years through ten years | 1,380,537 | 1,437,151 | |||||||||||||||||||
Due after ten years | 1,933,824 | 2,035,434 | |||||||||||||||||||
Asset-backed securities | 254,286 | 263,307 | |||||||||||||||||||
Commercial mortgage-backed securities | 543,416 | 560,635 | |||||||||||||||||||
Residential mortgage-backed securities | 143,138 | 154,704 | |||||||||||||||||||
Total | $ | 5,739,004 | $ | 6,047,495 | |||||||||||||||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed, and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. | |||||||||||||||||||||
The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 78,591 | $ | 197,132 | $ | 118,477 | $ | 242,318 | |||||||||||||
Proceeds from maturities/repayments | 165,763 | 258,923 | 347,782 | 433,247 | |||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 5,147 | 5,766 | 6,826 | 39,154 | |||||||||||||||||
Gross investment losses from sales and maturities | -517 | -1,103 | -924 | -2,834 | |||||||||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 5,210 | $ | - | $ | 5,210 | $ | 2,352 | |||||||||||||
Proceeds from maturities/repayments | - | 3 | - | 3 | |||||||||||||||||
Gross investment gains from sales | 145 | - | 145 | 854 | |||||||||||||||||
Fixed maturity and equity security impairments | |||||||||||||||||||||
Net writedowns for other-than-temporary impairment losses | |||||||||||||||||||||
on fixed maturities recognized in earnings (1) | $ | -127 | $ | -212 | $ | -127 | $ | -1,609 | |||||||||||||
Writedowns for impairments on equity securities | - | - | - | -56 | |||||||||||||||||
Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. | |||||||||||||||||||||
As discussed in Note 2 to the Company's Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013, 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 tables set forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts. | |||||||||||||||||||||
Credit losses recognized in earnings on fixed maturity securities held by the Company for which a portion of the OTTI loss was recognized in OCI | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 10,173 | $ | 14,661 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -1,449 | -5,918 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | - | - | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | - | - | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 101 | 202 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -278 | -398 | |||||||||||||||||||
Balance, end of period | $ | 8,547 | $ | 8,547 | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 15,716 | $ | 27,702 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -1,287 | -13,674 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | - | 14 | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | 212 | 709 | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 219 | 441 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -20 | -352 | |||||||||||||||||||
Balance, end of period | $ | 14,840 | $ | 14,840 | |||||||||||||||||
Trading Account Assets | |||||||||||||||||||||
The following table sets forth the composition of “Trading account assets” as of the dates indicated: | |||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 22,953 | $ | 26,276 | $ | 14,118 | $ | 16,162 | |||||||||||||
Equity securities | 687 | 1,462 | 1,388 | 2,730 | |||||||||||||||||
Total trading account assets | $ | 23,640 | $ | 27,738 | $ | 15,506 | $ | 18,892 | |||||||||||||
The net change in unrealized gains / (losses) from trading account assets still held at period end, recorded within “Other income” was ($0.2) million during both the three months ended June 30, 2014 and 2013, and $0.7 million and $0.6 million during the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||
Commercial Mortgage and Other Loans | |||||||||||||||||||||
The Company's commercial mortgage and other loans are comprised as follows, as of the dates indicated: | |||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||||||
(in thousands) | Total | (in thousands) | Total | ||||||||||||||||||
Commercial and agricultural mortgage loans by property type: | |||||||||||||||||||||
Retail | $ | 452,212 | 28.6 | % | $ | 467,059 | 30.5 | % | |||||||||||||
Apartments/Multi-Family | 355,811 | 22.5 | 298,365 | 19.5 | |||||||||||||||||
Industrial | 265,393 | 16.8 | 272,239 | 17.7 | |||||||||||||||||
Office | 208,330 | 13.2 | 195,499 | 12.8 | |||||||||||||||||
Other | 108,985 | 6.8 | 102,294 | 6.6 | |||||||||||||||||
Hospitality | 89,096 | 5.5 | 90,085 | 5.9 | |||||||||||||||||
Total commercial mortgage loans | 1,479,827 | 93.4 | 1,425,541 | 93 | |||||||||||||||||
Agricultural property loans | 104,005 | 6.6 | 107,118 | 7 | |||||||||||||||||
Total commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,583,832 | 100 | % | 1,532,659 | 100 | % | |||||||||||||||
Valuation allowance | -6,625 | -8,904 | |||||||||||||||||||
Total net commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,577,207 | 1,523,755 | |||||||||||||||||||
Other Loans | |||||||||||||||||||||
Uncollateralized loans | 8,410 | 8,410 | |||||||||||||||||||
Total other loans | 8,410 | 8,410 | |||||||||||||||||||
Total commercial mortgage and other loans | $ | 1,585,617 | $ | 1,532,165 | |||||||||||||||||
The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States and other countries with the largest concentrations in California (21%), Texas (12%), and New Jersey (11%) at June 30, 2014. | |||||||||||||||||||||
Activity in the allowance for losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: | |||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for losses, beginning of year | $ | 8,904 | $ | 6,028 | |||||||||||||||||
Addition to / (release of) allowance of losses | 639 | 2,876 | |||||||||||||||||||
Charge-offs, net of recoveries | -2,918 | - | |||||||||||||||||||
Total ending balance (1) | $ | 6,625 | $ | 8,904 | |||||||||||||||||
_____________ | |||||||||||||||||||||
Agricultural loans represent $0.3 million of the ending allowance at both June 30, 2014 and December 31, 2013. | |||||||||||||||||||||
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: | |||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||
Ending balance: individually evaluated for impairment (1) | $ | 805 | $ | 3,084 | |||||||||||||||||
Ending balance: collectively evaluated for impairment (2) | 5,820 | 5,820 | |||||||||||||||||||
Total ending balance | $ | 6,625 | $ | 8,904 | |||||||||||||||||
Recorded Investment: (3) | |||||||||||||||||||||
Ending balance gross of reserves: individually evaluated for impairment (1) | $ | 15,695 | $ | 6,392 | |||||||||||||||||
Ending balance gross of reserves: collectively evaluated for impairment (2) | 1,576,547 | 1,534,677 | |||||||||||||||||||
Total ending balance, gross of reserves | $ | 1,592,242 | $ | 1,541,069 | |||||||||||||||||
_____________ | |||||||||||||||||||||
There were no agricultural or uncollateralized loans individually evaluated for impairments at June 30, 2014 and December 31, 2013. | |||||||||||||||||||||
Agricultural loans collectively evaluated for impairment had a recorded investment of $104 million and $107 million at June 30, 2014 and December 31, 2013, respectively, and a related allowance of $0.3 million for both periods. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both June 30, 2014 and December 31, 2013 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 June 30, 2014 and December 31, 2013, had a recorded investment and unpaid principal balance of $15.7 million and $6.4 million, respectively, and related allowance of $0.8 million and $3.1 million, respectively, primarily related to other property types. At both June 30, 2014 and December 31, 2013, the Company held no impaired agricultural or uncollateralized loans. | |||||||||||||||||||||
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 June 30, 2014 and December 31, 2013. See Note 2 to the Company's Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013, for information regarding the Company's accounting policies for non-performing loans. | |||||||||||||||||||||
The following table sets forth certain key credit quality indicators as of June 30, 2014, based upon the recorded investment gross of allowance for credit losses. | |||||||||||||||||||||
Total commercial and agricultural mortgage loans | |||||||||||||||||||||
Debt Service Coverage Ratio - June 30, 2014 | |||||||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | ||||||||||||||||||
Loan-to-Value Ratio | (in thousands) | ||||||||||||||||||||
0%-59.99% | $ | 932,821 | $ | 13,362 | $ | 10,370 | $ | 956,553 | |||||||||||||
60%-69.99% | 374,216 | 12,442 | 27,444 | 414,102 | |||||||||||||||||
70%-79.99% | 131,861 | 14,817 | 13,993 | 160,671 | |||||||||||||||||
Greater than 80% | 30,101 | 20,927 | 1,478 | 52,506 | |||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 1,468,999 | $ | 61,548 | $ | 53,285 | $ | 1,583,832 | |||||||||||||
The following table sets forth certain key credit quality indicators as of December 31, 2013, based upon the recorded investment gross of allowance for credit losses. | |||||||||||||||||||||
Total commercial and agricultural mortgage loans | |||||||||||||||||||||
Debt Service Coverage Ratio - December 31, 2013 | |||||||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | ||||||||||||||||||
Loan-to-Value Ratio | (in thousands) | ||||||||||||||||||||
0%-59.99% | $ | 894,897 | $ | 11,196 | $ | 9,323 | $ | 915,416 | |||||||||||||
60%-69.99% | 314,325 | 28,420 | 4,327 | 347,072 | |||||||||||||||||
70%-79.99% | 183,853 | 9,295 | 25,626 | 218,774 | |||||||||||||||||
Greater than 80% | 24,000 | 5,310 | 22,087 | 51,397 | |||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 1,417,075 | $ | 54,221 | $ | 61,363 | $ | 1,532,659 | |||||||||||||
As of June 30, 2014 and December 31, 2013, $1.6 billion and $1.5 billion, respectively, of commercial mortgage and other loans were in current status. As of June 30, 2014, no commercial mortgage and other loans were classified as past due. As of December 31, 2013, $6.4 million of commercial mortgage and other loans were classified as past due, primarily related to other property types. The company defines current in its aging of past due commercial mortgage and agricultural loans as less than 30 days past due. As of June 30, 2014, no commercial mortgage and other loans were in nonaccrual status based upon the recorded investment gross of allowance for credit losses. As of December 31, 2013, $6.4 million of commercial mortgage and other loans were in nonaccrual 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 to the Company's Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013 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 three and six months ended June 30, 2014 and 2013, there were no commercial mortgages and other loans sold or acquired, other than those through direct origination. | |||||||||||||||||||||
The Company's commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both June 30, 2014 and December 31, 2013, the Company had no significant commitments to fund to borrowers that have been involved in a troubled debt restructuring. During the three and six months ended June 30, 2014 and 2013, respectively, there were no new troubled debt restructurings related to commercial mortgage and other loans, and no payment defaults on commercial mortgages and other loans that were modified as a troubled debt restructuring within the 12 months preceding each respective period. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Company's Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||
Net investment income for the three and six months ended June 30, 2014 and 2013, was from the following sources: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 66,293 | $ | 71,368 | $ | 132,028 | $ | 139,877 | |||||||||||||
Equity securities, available-for-sale | 1 | - | 1 | 1 | |||||||||||||||||
Trading account assets | 201 | 176 | 397 | 309 | |||||||||||||||||
Commercial mortgage and other loans | 20,891 | 21,219 | 40,721 | 41,923 | |||||||||||||||||
Policy loans | 15,072 | 14,468 | 29,798 | 28,605 | |||||||||||||||||
Short-term investments and cash equivalents | 103 | 172 | 260 | 416 | |||||||||||||||||
Other long-term investments | 5,552 | 2,554 | 8,019 | 6,256 | |||||||||||||||||
Gross investment income | 108,113 | 109,957 | 211,224 | 217,387 | |||||||||||||||||
Less: investment expenses | -4,893 | -4,925 | -9,527 | -9,847 | |||||||||||||||||
Net investment income | $ | 103,220 | $ | 105,032 | $ | 201,697 | $ | 207,540 | |||||||||||||
Realized Investment Gains (Losses), Net | |||||||||||||||||||||
Realized investment gains (losses), net, for the three and six months ended June 30, 2014 and 2013, were from the following sources: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 4,503 | $ | 4,451 | $ | 5,775 | $ | 34,711 | |||||||||||||
Equity securities | 145 | - | 145 | 798 | |||||||||||||||||
Commercial mortgage and other loans | -431 | 242 | -304 | 690 | |||||||||||||||||
Joint ventures and limited partnerships | - | -6 | - | -57 | |||||||||||||||||
Derivatives | 27,443 | -44,315 | 111,565 | -29,063 | |||||||||||||||||
Other | 8 | 3 | 18 | 10 | |||||||||||||||||
Realized investment gains (losses), net | $ | 31,668 | $ | -39,625 | $ | 117,199 | $ | 7,089 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the six months ended June 30, 2014 and 2013, 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, 2013 | $ | 403 | $ | 56,243 | $ | 56,646 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | -36 | 170,185 | 170,149 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -5,920 | -5,920 | ||||||||||||||||||
Income tax benefit (expense) | 13 | -57,493 | -57,480 | ||||||||||||||||||
Balance, June 30, 2014 | $ | 380 | $ | 163,015 | $ | 163,395 | |||||||||||||||
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, 2012 | $ | 258 | $ | 267,204 | $ | 267,461 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | -138 | -240,516 | -240,655 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -35,509 | -35,509 | ||||||||||||||||||
Income tax benefit (expense) | 48 | 96,608 | 96,656 | ||||||||||||||||||
Balance, June 30, 2013 | $ | 168 | $ | 87,787 | $ | 87,954 | |||||||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges of ($7) million and ($5) million as of June 30, 2014 and December 31, 2013, respectively and $6 million and $0 million as of June 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
30-Jun-14 | 30-Jun-14 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Amounts reclassified from AOCI (1)(2): | |||||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||||
Cash flow hedges - Currency/Interest rate (3) | $ | -132 | $ | 50 | |||||||||||||||||
Net unrealized investment gains (losses) on available-for-sale securities (4) | 4,780 | 5,870 | |||||||||||||||||||
Total net unrealized investment gains (losses) | 4,648 | 5,920 | |||||||||||||||||||
Total reclassifications for the period | $ | 4,648 | $ | 5,920 | |||||||||||||||||
_____________ | |||||||||||||||||||||
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 5 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 Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows: | |||||||||||||||||||||
Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized | |||||||||||||||||||||
Net Unrealized Gains (Losses) on Investments | Deferred Policy Acquisition Costs and Other Costs | Future Policy Benefits and Policyholders' Account Balances (1) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 4,498 | $ | -3,324 | $ | 1,819 | $ | -1,079 | $ | 1,914 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 1,410 | - | - | -494 | 916 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 167 | - | - | -58 | 109 | ||||||||||||||||
Impact of net unrealized investment (gains) losses | |||||||||||||||||||||
on deferred policy acquisition costs and other costs | - | 454 | - | -159 | 295 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -223 | 78 | -145 | ||||||||||||||||
Balance, June 30, 2014 | $ | 6,075 | $ | -2,870 | $ | 1,596 | $ | -1,712 | $ | 3,089 | |||||||||||
_____________ | |||||||||||||||||||||
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 Policyholders' Account Balances (2) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 123,153 | $ | -43,030 | $ | 3,293 | $ | -29,087 | $ | 54,329 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 196,175 | - | - | -68,661 | 127,514 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -6,087 | - | - | 2,130 | -3,957 | ||||||||||||||||
Impact of net unrealized investment (gains) losses | |||||||||||||||||||||
on deferred policy acquisition costs and other costs | - | -65,487 | - | 22,920 | -42,567 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 37,855 | -13,249 | 24,606 | ||||||||||||||||
Balance, June 30, 2014 | $ | 313,241 | $ | -108,517 | $ | 41,148 | $ | -85,947 | $ | 159,925 | |||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges. See Note 5 for information on cash flow hedges. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
Net Unrealized Gains (Losses) on Investments by Asset Class | |||||||||||||||||||||
The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: | |||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities on which an OTTI loss has been recognized | $ | 6,075 | $ | 4,498 | |||||||||||||||||
Fixed maturity securities, available-for-sale - all other | 302,415 | 107,970 | |||||||||||||||||||
Equity securities, available-for-sale | 1,816 | 204 | |||||||||||||||||||
Derivatives designated as cash flow hedges (1) | -7,093 | -4,701 | |||||||||||||||||||
Other investments | 16,103 | 19,680 | |||||||||||||||||||
Net unrealized gains (losses) on investments | $ | 319,316 | $ | 127,651 | |||||||||||||||||
_____________ | |||||||||||||||||||||
See Note 5 for more information on cash flow hedges. | |||||||||||||||||||||
Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities | |||||||||||||||||||||
The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated: | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
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 | $ | 996 | $ | 1 | $ | 17,107 | $ | 345 | $ | 18,103 | $ | 346 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | - | - | 22,874 | 706 | 22,874 | 706 | |||||||||||||||
Foreign government bonds | 10,556 | 138 | - | - | 10,556 | 138 | |||||||||||||||
Corporate securities | 176,677 | 2,015 | 652,027 | 26,506 | 828,704 | 28,521 | |||||||||||||||
Asset-backed securities | 29,549 | 158 | 44,201 | 347 | 73,750 | 505 | |||||||||||||||
Commercial mortgage-backed securities | 4,040 | 125 | 94,976 | 3,454 | 99,016 | 3,579 | |||||||||||||||
Residential mortgage-backed securities | - | - | 30,734 | 223 | 30,734 | 223 | |||||||||||||||
Total | $ | 221,818 | $ | 2,437 | $ | 861,919 | $ | 31,581 | $ | 1,083,737 | $ | 34,018 | |||||||||
Equity securities, available-for-sale | $ | 1 | $ | - | $ | 16 | $ | 1 | $ | 17 | $ | 1 | |||||||||
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 | |||||||||
The gross unrealized losses on fixed maturity securities at June 30, 2014 and December 31, 2013, are composed of $33 million and $136 million, respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $1 million and $4 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At June 30, 2014, $32 million of gross unrealized losses of twelve months or more were concentrated in the consumer non-cyclical and utility sectors of the Company's corporate securities and in commercial mortgage-backed securities. At December 31, 2013, $20 million of gross unrealized losses of twelve months or more were concentrated in the consumer non-cyclical, utility, and basic industry sectors of the Company's corporate securities. In accordance with its policy described in Note 2 to the Company's Financial Statements included in its 2013 Annual Report on Form 10-K, the Company concluded that an adjustment to earnings for other-than-temporary impairments for these securities was not warranted at June 30, 2014 or December 31, 2013. 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 June 30, 2014, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of its remaining amortized cost basis. | |||||||||||||||||||||
At both June 30, 2014 and December 31, 2013, none of the gross unrealized losses related to equity securities represented declines in value of greater than 20%. In accordance with its policy described in Note 2 to the Company's Financial Statements included in its 2013 Annual Report on Form 10-K, the Company concluded that an adjustment for other-than-temporary impairments for these equity securities was not warranted at June 30, 2014 or December 31, 2013. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | 4. FAIR VALUE OF ASSETS AND LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
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 | 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) | $ | 23,231 | $ | 106,081 | $ | 28,076 | $ | 2,802 | $ | 590 | $ | 18 | 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 | 258 | 113 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 36 | - | - | 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 reinsurance or certain products with guaranteed benefits. | ||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 48 | -28 | - | - | 20 | - | |||||||||||||||||||||||||||||||||||||||
Net investment income | 21 | 66 | - | - | - | - | 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 | 4,615 | - | - | - | - | - | As of June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Sales | -3,800 | - | - | - | -64 | - | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | -1,033 | -30,305 | - | -1,375 | - | - | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 2,231 | 1,746 | - | - | - | - | Fixed maturities, available for sale: | ||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -3,474 | -11,494 | -28,076 | - | - | - | U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | - | $ | 95,709 | $ | - | $ | - | $ | 95,709 | ||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 22,097 | $ | 66,179 | $ | - | $ | 1,463 | $ | 546 | $ | 18 | Obligations of U.S. states and their political subdivisions | - | 127,223 | - | - | 127,223 | |||||||||||||||||||||||||||
Foreign government bonds | - | 31,735 | - | - | 31,735 | ||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | Corporate securities | - | 4,792,085 | 22,097 | - | 4,814,182 | |||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | Asset-backed securities | - | 197,128 | 66,179 | - | 263,307 | |||||||||||||||||||||||||||||||||||||||
Included in earnings: | Commercial mortgage-backed securities | - | 560,635 | - | - | 560,635 | |||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -101 | $ | - | $ | - | $ | - | $ | - | $ | - | Residential mortgage-backed securities | - | 154,704 | - | - | 154,704 | |||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 38 | $ | - | $ | - | Sub-total | - | 5,959,219 | 88,276 | - | 6,047,495 | |||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Trading account assets: | ||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Corporate securities | - | 24,288 | - | - | 24,288 | |||||||||||||||||||||||||||||||||||
(in thousands) | Asset-backed securities | - | 1,987 | - | - | 1,987 | |||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,247 | $ | 1,018,443 | $ | 5,124 | $ | 278,638 | $ | -1,014,755 | Commercial mortgage-backed securities | - | - | - | - | - | |||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Equity securities | - | - | 1,463 | - | 1,463 | |||||||||||||||||||||||||||||||||||||||
Included in earnings: | Sub-total | - | 26,275 | 1,463 | - | 27,738 | |||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 91 | 548,605 | - | -284 | -525,399 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 17 | - | - | - | - | Equity securities, available for sale | 143 | 36,729 | 546 | - | 37,418 | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 4,046 | - | Short-term investments | 33,585 | 75,943 | 18 | - | 109,546 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | 3 | - | - | Cash equivalents | 12,627 | 7,000 | - | - | 19,627 | ||||||||||||||||||||||||||||||||||
Net investment income | - | - | 41 | - | - | Other long-term investments | - | 129,151 | 1,805 | -128,721 | 2,235 | ||||||||||||||||||||||||||||||||||
Purchases | 35 | 146,084 | 18,649 | 5,191 | - | Reinsurance recoverables | - | - | 1,713,132 | - | 1,713,132 | ||||||||||||||||||||||||||||||||||
Sales | - | - | - | -1,780 | - | Receivables from parents and affiliates | - | 163,539 | 23,817 | - | 187,356 | ||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -160,593 | Sub-total excluding separate account assets | 46,355 | 6,397,856 | 1,829,057 | -128,721 | 8,144,547 | ||||||||||||||||||||||||||||||||||
Settlements | -12 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 427 | - | - | - | - | Separate account assets (2) | 918,593 | 106,003,695 | 285,811 | - | 107,208,099 | ||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | Total assets | $ | 964,948 | $ | 112,401,551 | $ | 2,114,868 | $ | -128,721 | $ | 115,352,646 | |||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,805 | $ | 1,713,132 | $ | 23,817 | $ | 285,811 | $ | -1,700,747 | Future policy benefits (4) | $ | - | $ | - | $ | 1,700,747 | $ | - | $ | 1,700,747 | ||||||||||||||||||||||||
Payables to parent and affiliates | - | 131,327 | - | -129,978 | 1,349 | ||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | Total liabilities | $ | - | $ | 131,327 | $ | 1,700,747 | $ | -129,978 | $ | 1,702,096 | ||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 91 | $ | 552,449 | $ | - | $ | - | $ | -529,822 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | - | (in thousands) | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 4,046 | $ | - | 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 | |||||||||||||||||||||||||||||||||||
Payables to parents and affiliates | - | 218,467 | - | -73,051 | 145,416 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities (3) | - | - | 388,268 | - | 388,268 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 218,467 | $ | 39,869 | $ | -73,051 | $ | 185,285 | |||||||||||||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, 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. | |||||||||||||||||||||||||||||||||||||||||||||
"Netting" amounts represent cash collateral of $1.2 million and $0.2 million as of June 30, 2014 and December 31, 2013, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. | |||||||||||||||||||||||||||||||||||||||||||||
Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||||||||||||||||
Reinsurance of variable annuity living benefit features that were classified as "Other Liabilities" at December 31, 2013 were reclassified to "Reinsurance Recoverables" at June 30, 2014 as they were in a net asset position. | |||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014, the net embedded derivative liability position of $1,701 million includes $838 million of embedded derivatives in an asset position and $2,539 million of embedded derivatives in a liability position. As of 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. | |||||||||||||||||||||||||||||||||||||||||||||
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 are 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 “Payables to parent and affiliates,” except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, non-performance risk (“NPR”), liquidity and other factors. 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, NPR, volatility and other factors. | |||||||||||||||||||||||||||||||||||||||||||||
The Company's credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including overnight indexed swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||||||
To reflect the market's perception of its own and the counterparty's NPR, the Company incorporates additional spreads over LIBOR into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company's fair values to external broker-dealer values. As of June 30, 2014 and December 31, 2013, there were no internally valued derivatives with the fair value classified within Level 3, and all other derivatives were classified within Level 2. See Note 5 for more details on the fair value of derivative instruments by primary underlying. | |||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents and Short-Term Investments - Cash equivalents and short-term investments include money market instruments, 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 7). Under this agreement, the Company pays a premium to UPARC to reinsure the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision. Reinsurance of this risk is accounted for as an embedded derivative which is included in “Reinsurance recoverables”. The fair value of this embedded derivative is the present value of expected reimbursement from UPARC for cost of insurance charges the Company is unable to collect from policyholders, less the present value of reinsurance premiums that is attributable to the embedded derivative feature. This methodology could result in either an asset or liability, given changes in capital market conditions and various policyholder behavior assumptions. Significant inputs to the valuation model for this embedded derivative include capital market assumptions, such as interest rates, estimated NPR of the counterparty, and various assumptions that are actuarially determined, including lapse rates, premium payment patterns, and mortality rates. | |||||||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits - The liability for future policy benefits 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 contractholders 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 NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||||||
Capital market inputs and actual 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. 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 – Transfers between levels are generally reported at the values as of the beginning of the period in which the transfers occur. 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 three months ended June 30, 2014 there were no transfers between Levels 1 and 2. During the six months ended June 30, 2014, $1.9 million was transferred from Level 1 to Level 2. During the three and six months ended June 30, 2013, there were no transfers between Level 1 and Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Price Source - The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. | |||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Internal (1) | External (2) | Total | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 16,939 | $ | 5,158 | $ | 22,097 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 262 | 65,917 | 66,179 | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 18 | - | 18 | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | 546 | 1,463 | 2,009 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 440 | 1,365 | 1,805 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | 1,713,132 | - | 1,713,132 | ||||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 23,817 | 23,817 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal excluding separate account assets | 1,731,337 | 97,720 | 1,829,057 | ||||||||||||||||||||||||||||||||||||||||||
Separate account assets | 82,312 | 203,499 | 285,811 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,813,649 | $ | 301,219 | $ | 2,114,868 | |||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | 1,700,747 | $ | - | $ | 1,700,747 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,700,747 | $ | - | $ | 1,700,747 | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||
(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 tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets). | |||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 16,939 | Discounted cash flow | Discount rate | 9.78% | 15.00% | 10.28% | Decrease | |||||||||||||||||||||||||||||||||||||
Market Comparables | EBITDA Multiples (2) | 5.0X | 6.2X | 5.87X | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - Living Benefits | $ | 1,501,856 | Fair values are determined in the same manner as future policy benefits. | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - No Lapse Guarantee | $ | 211,276 | Discounted cash flow | Lapse rate (3) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.02% | 1.03% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (5) | 0% | 23% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Premium Payment (6) | 1X | 3.75X | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (7) | $ | 1,700,747 | Discounted cash flow | Lapse rate (8) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.02% | 1.03% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (9) | 70% | 98% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (10) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (11) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 14% | 28% | Increase | ||||||||||||||||||||||||||||||||||||||||||
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 Comparable | EBITDA Multiples (2) | 5.0X | 7.0X | 5.91X | Increase | ||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 11.61% | 38.49% | 31.83% | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - No Lapse Guarantee | $ | 11,400 | See the Reinsurance Recoverable section above for an explanation of the fair value determination. | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (7) | $ | -348,399 | Discounted cash flow | Lapse rate (8) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.08% | 1.09% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (9) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (10) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (11) | 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. | ||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
For universal life, lapse rates vary based on funding level and other factors. Rates are set to zero when the no lapse guarantee is fully funded and the cash value is zero. | |||||||||||||||||||||||||||||||||||||||||||||
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. The NPR spread reflects the financial strength ratings of the Company and its affiliates as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. | |||||||||||||||||||||||||||||||||||||||||||||
Universal life mortality rates are adjusted based on underwriting information. A mortality improvement assumption is also incorporated into the projection. | |||||||||||||||||||||||||||||||||||||||||||||
For universal life, premium payment assumptions vary by funding level. Some policies are assumed to pay the minimum premium required to maintain the no lapse guarantee. Other policies are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as “X”). Policyholders are assumed to stop premium payments once the no lapse guarantee is fully funded. | |||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
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 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. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. | |||||||||||||||||||||||||||||||||||||||||||||
Separate Account Assets – In addition to the significant internally-priced Level 3 assets and liabilities presented and described above, the Company also has internally-priced separate account assets reported within Level 3. Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company's Unaudited Interim Consolidated Statement of Financial Position. As a result, changes in value associated with these investments do not impact the Company's Unaudited Interim 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 $82.3 million and $81.8 million of investments in real estate as of June 30, 2014 and December 31, 2013, 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% (6.27% weighted average) as of June 30, 2014 and 5.00% to 10.00% (6.82% weighted average) as of December 31, 2013 and discount rates which ranged from 6.75% to 10.50% (7.22% weighted average) as of June 30, 2014 and 6.75% to 11.00% (7.90% weighted average) as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | |||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset- Backed Securities | Commercial Mortgage-Backed Securities | Trading Account Assets - Equity Securities | Equity Securities, Available for Sale | Short Term Investments | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | $ | 18 | |||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 256 | 113 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 107 | - | - | |||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 385 | 107 | -2 | - | 41 | - | |||||||||||||||||||||||||||||||||||||||
Net investment income | 31 | 122 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Purchases | 12,586 | - | 28,078 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Sales | -5,191 | - | - | - | -64 | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Settlements | -1,836 | -33,442 | - | -1,375 | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 2,231 | 31,153 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -4,658 | -12,808 | -28,076 | - | - | - | |||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 22,097 | $ | 66,179 | $ | - | $ | 1,463 | $ | 546 | $ | 18 | |||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -101 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 109 | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables (4) | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,168 | $ | -376,868 | $ | 4,121 | $ | 279,842 | $ | 348,399 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 91 | 1,800,973 | - | 1,985 | -1,732,681 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | -5 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 6,722 | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | 41 | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 136 | 289,027 | 18,649 | 39,769 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -42,507 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -316,465 | ||||||||||||||||||||||||||||||||||||||||
Settlements | -12 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 427 | - | 1,985 | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | -979 | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,805 | $ | 1,713,132 | $ | 23,817 | $ | 285,811 | $ | -1,700,747 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 91 | $ | 1,803,209 | $ | - | $ | - | $ | -1,735,757 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 6,722 | $ | - | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 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 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 39,791 | $ | 119,053 | $ | - | $ | 3,737 | $ | 1,448 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 84 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 222 | 18 | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -856 | -155 | -3 | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 19 | 86 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 1,597 | 15,280 | 5,050 | - | - | ||||||||||||||||||||||||||||||||||||||||
Sales | -3 | -1 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | -15,736 | -4,388 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -6,293 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,603 | $ | 129,875 | $ | 5,047 | $ | 3,959 | $ | 1,466 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 222 | $ | - | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other Liabilities (4) | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 842 | $ | 3,000 | $ | 262,007 | $ | -575,595 | $ | 504,797 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -9 | - | 10 | 1,085,244 | -1,008,441 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 11 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 5,282 | - | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | -5 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 87 | -998 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | - | 2,651 | 8,515 | - | 133,155 | ||||||||||||||||||||||||||||||||||||||||
Sales | - | -1,000 | -4,638 | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | -143,338 | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 931 | $ | 3,648 | $ | 271,176 | $ | 366,311 | $ | -370,489 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 1,082,731 | $ | -1,006,152 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 10 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 5,283 | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 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 | |||||||||||||||||||||||||||||||||||||||||
(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 | -696 | - | - | - | -56 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 682 | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -940 | 164 | -3 | - | 33 | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 58 | 174 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 11,724 | 33,078 | 8,484 | 380 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | -2,323 | -1 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | -19,908 | -12,267 | -3,434 | -380 | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -6,293 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,603 | $ | 129,875 | $ | 5,047 | $ | 3,959 | $ | 1,466 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 682 | $ | - | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other Liabilities (4) | |||||||||||||||||||||||||||||||||||||||||
(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 | - | 758 | 2,061,810 | -1,915,881 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 88 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 11,072 | - | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | 2 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 87 | 2,651 | 36,496 | - | 258,235 | ||||||||||||||||||||||||||||||||||||||||
Sales | - | -1,000 | -25,405 | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | -277,608 | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 931 | 3,648 | $ | 271,176 | $ | 366,311 | $ | -370,489 | ||||||||||||||||||||||||||||||||||||
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 | $ | - | - | $ | - | $ | 2,051,063 | $ | -1,906,147 | ||||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 89 | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | - | $ | 11,072 | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||
(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 Unaudited Interim Consolidated Statement of Financial Position. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Transfers into or out of Level 3 are 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) Reinsurance of variable annuity living benefit features that were classified as "Other Liabilities" at 2013 and were reclassified to "Reinsurance Recoverables" at 2014 as they were in a net asset 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 availability of pricing service information for certain assets that the Company is able to validate. | |||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Carrying Amount (1) | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | $ | - | $ | 8,175 | $ | 1,684,155 | $ | 1,692,330 | $ | 1,585,617 | |||||||||||||||||||||||||||||||||||
Policy loans | - | - | 1,108,653 | 1,108,653 | 1,108,653 | ||||||||||||||||||||||||||||||||||||||||
Other long term investments | - | - | 6,569 | 6,569 | 5,616 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 103,128 | 22,772 | - | 125,900 | 125,900 | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income | - | 90,147 | - | 90,147 | 90,147 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 86,153 | - | 86,153 | 85,894 | ||||||||||||||||||||||||||||||||||||||||
Other assets | - | 37,355 | - | 37,355 | 37,355 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 103,128 | $ | 244,602 | $ | 2,799,377 | $ | 3,147,107 | $ | 3,039,182 | |||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' account balances - investment contracts | $ | - | $ | 895,949 | $ | 40,334 | $ | 936,283 | $ | 944,688 | |||||||||||||||||||||||||||||||||||
Cash collateral for loaned securities | - | 89,917 | - | 89,917 | 89,917 | ||||||||||||||||||||||||||||||||||||||||
Securities sold under agreement to repurchase | - | 4,400 | - | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||||||||
Short-term debt | - | 335,273 | - | 335,273 | 332,000 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | - | 1,511,447 | - | 1,511,447 | 1,463,000 | ||||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 37,004 | - | 37,004 | 37,004 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | - | 241,478 | - | 241,478 | 241,478 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 3,115,468 | $ | 40,334 | $ | 3,155,802 | $ | 3,112,487 | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Carrying Amount (1) | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | $ | - | $ | 7,827 | $ | 1,604,247 | $ | 1,612,074 | $ | 1,532,165 | |||||||||||||||||||||||||||||||||||
Policy loans | - | - | 1,086,772 | 1,086,772 | 1,086,772 | ||||||||||||||||||||||||||||||||||||||||
Other long term investments | - | - | 4,751 | 4,751 | 4,268 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 45,317 | 56,139 | - | 101,456 | 101,456 | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income | - | 89,465 | - | 89,465 | 89,465 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 87,849 | - | 87,849 | 87,481 | ||||||||||||||||||||||||||||||||||||||||
Other assets | - | 34,060 | - | 34,060 | 34,060 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 45,317 | $ | 275,340 | $ | 2,695,770 | $ | 3,016,427 | $ | 2,935,667 | |||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' account balances - investment contracts | $ | - | $ | 851,607 | $ | 40,451 | $ | 892,058 | $ | 901,860 | |||||||||||||||||||||||||||||||||||
Cash collateral for loaned securities | - | 84,867 | - | 84,867 | 84,867 | ||||||||||||||||||||||||||||||||||||||||
Short-term debt | - | 275,268 | - | 275,268 | 274,900 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | - | 1,644,827 | - | 1,644,827 | 1,592,000 | ||||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 45,649 | - | 45,649 | 45,649 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | - | 270,339 | - | 270,339 | 270,339 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 3,172,557 | $ | 40,451 | $ | 3,213,008 | $ | 3,169,615 | |||||||||||||||||||||||||||||||||||
Carrying values presented herein differ from those in the Company's Unaudited Interim 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. No such adjustments were made as of June 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, 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 and cash equivalents instruments, 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 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 NPR. 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. | |||||||||||||||||||||||||||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | |||||||||||||||||||||||||||||||||||||||||||||
The Company receives collateral for selling securities under agreements to repurchase, or pledges collateral under agreements to resell. Repurchase and resale agreements are also generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair 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 or 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 NPR. 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. | |||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 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. | |||||||||||||||||||||||||||||||||||||||||||||
Derivative_Instruments
Derivative Instruments | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||
5. 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. | |||||||||||||||||||||||
Total return swaps are contracts whereby the Company agrees with other parties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. | |||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. | |||||||||||||||||||||||
Under currency forwards, the Company agrees with 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 receives a quarterly premium. With credit default derivatives, this premium or credit spread generally corresponds to the difference between the yield on the referenced name's public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name, as defined by the agreement, then the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the referenced defaulted security or similar security or pay the referenced amount less the auction recovery rate. See credit derivatives 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 Reinsurance Ltd., or “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 4. | |||||||||||||||||||||||
The fair value of the living benefit feature embedded derivatives included in "Future policy benefits" was a liability of $1,701 million and an asset of $348 million as of June 30, 2014 and December 31, 2013, 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 an asset of $1,502 million and a liability of $388 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
Some of the Company's universal life products contain a no-lapse guarantee provision that is reinsured with an affiliate, UPARC. The reinsurance agreement contains an embedded derivative related to the interest rate risk of the reinsurance contract. The fair value of the embedded derivative was an asset of $211 million and $11 million as of June 30, 2014 and December 31, 2013, respectively. See Note 7 for additional information on the agreement with UPARC. | |||||||||||||||||||||||
Prior to disposal in the fourth quarter of 2013, the Company invested in fixed maturities 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. | |||||||||||||||||||||||
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. | |||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||
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 | $ | 270,355 | $ | 6,292 | $ | -14,275 | $ | 249,601 | $ | 6,304 | $ | -11,583 | |||||||||||
Total Qualifying Hedges | $ | 270,355 | $ | 6,292 | $ | -14,275 | $ | 249,601 | $ | 6,304 | $ | -11,583 | |||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Interest Rate Swaps | $ | 2,334,400 | $ | 94,244 | $ | -96,407 | $ | 2,434,400 | $ | 47,475 | $ | -185,222 | |||||||||||
Interest Rate Options | 100,000 | 3,173 | - | - | - | - | |||||||||||||||||
Currency | |||||||||||||||||||||||
Forwards | 1,081 | 4 | -13 | 507 | 2 | - | |||||||||||||||||
Credit | |||||||||||||||||||||||
Credit Default Swaps | 13,275 | 11 | -768 | 14,275 | 15 | -862 | |||||||||||||||||
Currency/Interest Rate | |||||||||||||||||||||||
Currency Swaps | 67,963 | 333 | -3,068 | 69,450 | 211 | -3,325 | |||||||||||||||||
Equity | |||||||||||||||||||||||
Total Return Swaps | 406,402 | - | -2,264 | 332,000 | - | -8,057 | |||||||||||||||||
Equity Options | 56,309,359 | 25,612 | -14,533 | 40,739,168 | 19,639 | -9,418 | |||||||||||||||||
Total Non-Qualifying Hedges | 59,232,480 | 123,377 | -117,053 | 43,589,800 | 67,342 | -206,884 | |||||||||||||||||
Total Derivatives (1) | $ | 59,502,835 | $ | 129,669 | $ | -131,328 | $ | 43,839,401 | $ | 73,646 | $ | -218,467 | |||||||||||
Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a liability of $1,701 million and an asset of $348 million as of June 30, 2014 and December 31, 2013, respectively, included in “Future policy benefits.” The reinsurance embedded derivatives was an asset of $1,713 million as of June 30, 2014, included in “Reinsurance Recoverables” and a liability of $388 million and an asset of $11 million, as of December 31, 2013, included in “Other Liabilities” and "Reinsurance Recoverables." | |||||||||||||||||||||||
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. | |||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||
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 | $ | 129,151 | $ | -128,721 | $ | 429 | $ | -252 | $ | 177 | |||||||||||||
Securities purchased under agreement to resell | 22,772 | - | 22,772 | -22,772 | - | ||||||||||||||||||
Total Assets | $ | 151,923 | $ | -128,721 | $ | 23,201 | $ | -23,024 | $ | 177 | |||||||||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||||||
Derivatives | $ | 131,327 | $ | -129,978 | $ | 1,349 | $ | -5,852 | $ | -4,503 | |||||||||||||
Securities sold under agreement to repurchase | 4,400 | - | 4,400 | -4,400 | - | ||||||||||||||||||
Total Liabilities | $ | 135,727 | $ | -129,978 | $ | 5,749 | $ | -10,252 | $ | -4,503 | |||||||||||||
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 | |||||||||||||
For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company's accounting policy for securities repurchase and resale agreements, see Note 2 to the Company's Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. | |||||||||||||||||||||||
The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship: | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 264 | $ | -329 | $ | -2,500 | |||||||||||||||
Total cash flow hedges | - | 264 | -329 | -2,500 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | 70,929 | - | - | - | |||||||||||||||||||
Currency | -17 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | -273 | - | -18 | - | |||||||||||||||||||
Credit | -116 | - | - | - | |||||||||||||||||||
Equity | -26,232 | - | - | - | |||||||||||||||||||
Embedded Derivatives | -16,848 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | 27,443 | - | -18 | - | |||||||||||||||||||
Total | $ | 27,443 | $ | 264 | $ | -347 | $ | -2,500 | |||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 517 | $ | -400 | $ | -2,392 | |||||||||||||||
Total cash flow hedges | - | 517 | -400 | -2,392 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | 162,506 | - | - | - | |||||||||||||||||||
Currency | -14 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | 654 | - | -4 | - | |||||||||||||||||||
Credit | -158 | - | - | - | |||||||||||||||||||
Equity | -34,315 | - | - | - | |||||||||||||||||||
Embedded Derivatives | -17,108 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | 111,565 | - | -4 | - | |||||||||||||||||||
Total | $ | 111,565 | $ | 517 | $ | -404 | $ | -2,392 | |||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 240 | $ | 15 | $ | -489 | |||||||||||||||
Total cash flow hedges | - | 240 | 15 | -489 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | -85,427 | - | - | - | |||||||||||||||||||
Currency | -11 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | -296 | - | 24 | - | |||||||||||||||||||
Credit | -149 | - | - | - | |||||||||||||||||||
Equity | -11,115 | - | - | - | |||||||||||||||||||
Embedded Derivatives | 52,683 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | -44,315 | - | 24 | - | |||||||||||||||||||
Total | $ | -44,315 | $ | 240 | $ | 39 | $ | -489 | |||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 468 | $ | 70 | $ | 5,619 | |||||||||||||||
Total cash flow hedges | - | 468 | 70 | 5,619 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | -119,795 | - | - | - | |||||||||||||||||||
Currency | 95 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | 255 | - | 24 | - | |||||||||||||||||||
Credit | -670 | - | - | - | |||||||||||||||||||
Equity | -65,416 | - | - | - | |||||||||||||||||||
Embedded Derivatives | 156,468 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | -29,063 | - | 24 | - | |||||||||||||||||||
Total | $ | -29,063 | $ | 468 | $ | 94 | $ | 5,619 | |||||||||||||||
Amounts deferred in “Accumulated other comprehensive income (loss).” | |||||||||||||||||||||||
For the six months ended June 30, 2014 and 2013, 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, 2013 | -4,701 | ||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2014 | -2,342 | ||||||||||||||||||||||
Amount reclassified into current period earnings | -50 | ||||||||||||||||||||||
Balance, June 30, 2014 | $ | -7,093 | |||||||||||||||||||||
As of June 30, 2014 and 2013, the Company did not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 19 years. Income amounts deferred in “Accumulated other comprehensive income (loss)” as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Equity. | |||||||||||||||||||||||
Credit Derivatives | |||||||||||||||||||||||
The Company has no exposure from credit derivatives where it has written credit protection as of June 30, 2014 and December 31, 2013. | |||||||||||||||||||||||
The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company's investment portfolio. As of June 30, 2014 and December 31, 2013, the Company had $13 million and $14 million of outstanding notional amounts, respectively, reported at fair value as a liability of less than $1 million for both periods. | |||||||||||||||||||||||
Credit Risk | |||||||||||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by our counterparty to financial derivative transactions. | |||||||||||||||||||||||
The Company has credit risk exposure to an affiliate, Prudential Global Funding, LLC (“PGF”), related to its over-the-counter (“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 7. Additionally, limits are set on single party credit exposures which are subject to periodic management review. | |||||||||||||||||||||||
Under fair value measurements, the Company incorporates the market's perception of its own and the counterparty's non-performance risk in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company's own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company's counterparty's credit spread is applied to OTC derivative net asset positions. | |||||||||||||||||||||||
Commitments_Contingent_Liabili
Commitments, Contingent Liabilities And Litigation And Regulatory Matters | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Guarantees And Contingent Liabilities [Abstract] | ' |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | ' |
6. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS | |
Commitments | |
The Company has made commitments to fund $63 million of commercial loans as of June 30, 2014. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $79 million as of June 30, 2014. | |
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 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 June 30, 2014, 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. | |
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 | 6 Months Ended |
Jun. 30, 2014 | |
Reinsurance [Abstract] | ' |
Reinsurance | ' |
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: | |
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: |
Related_Party
Related Party | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||
7. RELATED PARTY TRANSACTIONS | |||||||||||||||||
The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. | |||||||||||||||||
Expense Charges and Allocations | |||||||||||||||||
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 less than $1 million for both the three months ended June 30, 2014 and 2013; and less than $1 million and $1 million for the six months ended June 30, 2014 and 2013, respectively. The expense charged to the Company for the deferred compensation program was $2 million for both the three months ended June 30, 2014 and 2013; and $4 million and $3 million for the six months ended June 30, 2014 and 2013, 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 $5 million for both the three months ended June 30, 2014 and 2013; and $9 million and $11 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Prudential Insurance sponsors voluntary savings plans for its employee's 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $2 million for both the three months ended June 30, 2014 and 2013; and $4 million for both the six months ended June 30, 2014 and 2013. | |||||||||||||||||
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 $223 million and $191 million for the three months ended June 30, 2014 and 2013, respectively; and $425 million and $478 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Corporate Owned Life Insurance | |||||||||||||||||
The Company has sold five 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 $2,800 million at June 30, 2014 and $2,391 million at June 30, 2013. Fees related to these COLI policies were $10 million and $9 million for the three months ended June 30, 2014 and 2013, respectively; and $21 million and $18 million for the six months ended June 30, 2014 and 2013, 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 Life Insurance Company of Taiwan Inc., (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company, (“PARCC”), Universal Prudential Arizona Reinsurance Company, (“UPARC”), Pruco Re, Prudential Arizona Reinsurance Term Company, (“PAR Term”), Prudential Arizona Reinsurance Universal Company, (“PAR U”), Prudential Universal Reinsurance Company, (“PURC”), and Prudential Term Reinsurance Company, (“Term Re”), and its parent company, Prudential Insurance, in order to provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage the statutory capital for its individual life business, facilitate its capital market hedging program and align accounting methodology for the assets and liabilities of living benefit riders contained in annuities contracts. The Company is not relieved of its primary obligation to the policyholder as a result of these agreements. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. | |||||||||||||||||
On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. | |||||||||||||||||
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. 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 has also entered into an agreement with UPARC to reinsure a portion of the no-lapse guarantee provision on certain universal life products. These reinsurance agreements are derivatives and have been accounted for in the same manner as an embedded derivative. See Note 5 for additional information related to the accounting for embedded derivatives. | |||||||||||||||||
Reinsurance amounts included in the Company's Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Reinsurance recoverable | $ | 16,317,710 | $ | 13,657,859 | |||||||||||||
Policy loans | -67,675 | -64,720 | |||||||||||||||
Deferred policy acquisition costs | -1,627,661 | -1,627,838 | |||||||||||||||
Policyholders' account balances | 4,839,907 | 4,681,356 | |||||||||||||||
Future policy benefits and other policyholder liabilities | 1,773,639 | 1,359,340 | |||||||||||||||
Other liabilities (reinsurance payables) (1) | 239,373 | 618,781 | |||||||||||||||
(1) December 31, 2013 includes $388 million reclassed from reinsurance recoverables to other liabilities. | |||||||||||||||||
The reinsurance recoverables by counterparty is broken out below. | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
UPARC | $ | 258,319 | $ | 44,835 | |||||||||||||
PAR U | 8,693,467 | 8,091,714 | |||||||||||||||
PURC | 1,047,009 | 940,218 | |||||||||||||||
PARCC | 2,459,261 | 2,411,157 | |||||||||||||||
PAR Term | 935,027 | 816,787 | |||||||||||||||
Term Re | 40,834 | - | |||||||||||||||
Prudential Insurance | 188,320 | 190,035 | |||||||||||||||
Pruco Re (1) | 1,502,525 | 642 | |||||||||||||||
Prudential of Taiwan | 1,189,432 | 1,157,639 | |||||||||||||||
Unaffiliated | 3,516 | 4,832 | |||||||||||||||
Total Reinsurance Recoverables | $ | 16,317,710 | $ | 13,657,859 | |||||||||||||
(1) December 31, 2013 excludes $388 million reclassed from reinsurance recoverable to other liabilities. | |||||||||||||||||
Reinsurance amounts, excluding investment gains (losses) on affiliated asset transfers, included in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Premiums: | |||||||||||||||||
Direct | $ | 352,491 | $ | 330,174 | $ | 692,059 | $ | 645,941 | |||||||||
Assumed | - | - | - | - | |||||||||||||
Ceded | -334,484 | -316,283 | -658,807 | -618,844 | |||||||||||||
Net Premiums | 18,007 | 13,891 | 33,252 | 27,097 | |||||||||||||
Policy charges and fee income: | |||||||||||||||||
Direct | 688,988 | 615,496 | 1,352,773 | 1,194,364 | |||||||||||||
Assumed | 135,518 | 109,717 | 226,349 | 159,752 | |||||||||||||
Ceded | -301,310 | -238,337 | -542,301 | -403,815 | |||||||||||||
Net policy charges and fee income: | 523,196 | 486,876 | 1,036,821 | 950,301 | |||||||||||||
Net investment income | |||||||||||||||||
Direct | 104,007 | 105,413 | 202,998 | 208,402 | |||||||||||||
Assumed | 340 | 295 | 678 | 610 | |||||||||||||
Ceded | -1,127 | -676 | -1,979 | -1,472 | |||||||||||||
Net investment income | 103,220 | 105,032 | 201,697 | 207,540 | |||||||||||||
Net other income: | |||||||||||||||||
Direct | 13,167 | 11,176 | 26,574 | 24,411 | |||||||||||||
Assumed & Ceded | - | - | - | -31,118 | |||||||||||||
Net other income | 13,167 | 11,176 | 26,574 | -6,707 | |||||||||||||
Interest credited to policyholders' account balances: | |||||||||||||||||
Direct | 105,230 | 41,048 | 206,123 | 81,770 | |||||||||||||
Assumed | 30,984 | 37,505 | 60,231 | 70,373 | |||||||||||||
Ceded | -52,438 | -52,105 | -102,775 | -98,727 | |||||||||||||
Net interest credited to policyholders' account balances | 83,776 | 26,448 | 163,579 | 53,416 | |||||||||||||
Policyholders' benefits (including change in reserves): | |||||||||||||||||
Direct | 466,514 | 343,326 | 963,994 | 749,731 | |||||||||||||
Assumed | 137,403 | -1,565 | 320,078 | 7,740 | |||||||||||||
Ceded | -531,786 | -276,871 | -1,126,906 | -630,175 | |||||||||||||
Net policyholders' benefits (including change in reserves) | 72,131 | 64,890 | 157,166 | 127,296 | |||||||||||||
Net reinsurance expense allowances, net of capitalization and amortization | -64,615 | -50,090 | -128,167 | -93,068 | |||||||||||||
Realized investment gains (losses) net: | |||||||||||||||||
Direct | -477,059 | 993,396 | -1,598,581 | 1,913,638 | |||||||||||||
Assumed | - | - | - | ||||||||||||||
Ceded | 508,727 | -1,033,021 | 1,715,780 | -1,906,549 | |||||||||||||
Realized investment gains (losses) net | $ | 31,668 | $ | -39,625 | $ | 117,199 | $ | 7,089 | |||||||||
The gross and net amounts of life insurance face amount in force as of June 30, were as follows: | |||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Direct gross life insurance face amount in force | $ | 685,708,205 | $ | 639,234,213 | |||||||||||||
Assumed gross life insurance face amount in force | 45,005,228 | 41,449,226 | |||||||||||||||
Reinsurance ceded | -671,295,042 | -624,334,216 | |||||||||||||||
Net life insurance face amount in force | $ | 59,418,391 | $ | 56,349,223 | |||||||||||||
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. | |||||||||||||||||
Effective January 1, 2014, the Company, excluding its subsidiaries, entered into an automatic coinsurance agreement with PURC, an affiliated company, to reinsure an amount equal to 95% of all the risks associated with its Universal Protector policies having no lapse guarantees, as well as its Universal Plus policies, with effective dates on or after January 1, 2014. | |||||||||||||||||
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. | |||||||||||||||||
Term Re | |||||||||||||||||
The Company reinsures 95% of the risk under its term life policies with effective dates on or after January 1, 2014 through an automatic coinsurance agreement with Term Re. | |||||||||||||||||
Prudential Insurance | |||||||||||||||||
The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. | |||||||||||||||||
On January 2, 2013, the Company began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Life Business. The GUL business assumed from Prudential Insurance is subsequently retroceded to PAR U. Collectively, reinsurance of this GUL business does not have a material impact on the equity of the Company. | |||||||||||||||||
The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract. | |||||||||||||||||
Pruco Re | |||||||||||||||||
The Company uses reinsurance as part of its risk management and capital management strategies for certain of its optional living benefit features. Starting from 2005, the Company has entered into various automatic coinsurance agreements with Pruco Re, an affiliated company, to reinsure its living benefit features sold on certain of its annuities. | |||||||||||||||||
Taiwan Branch Reinsurance Agreement | |||||||||||||||||
On January 31, 2001, the Company transferred all of its assets and liabilities associated with its Taiwan branch, including its Taiwan insurance book of business to Prudential of Taiwan, an affiliated company. | |||||||||||||||||
The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, the Company is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against the Company. | |||||||||||||||||
The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under accounting principles generally accepted in the United States. Under this accounting treatment, the insurance related liabilities remain on the books of the Company and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in US dollars. | |||||||||||||||||
Affiliated Asset Administration Fee Income | |||||||||||||||||
The Company has a revenue sharing agreement with AST Investment Services, Inc. and Prudential Investments LLC whereby the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust. Income received from AST Investment Services, Inc. and Prudential Investments LLC related to this agreement was $90 million and $76 million for the three months ended June 30, 2014 and 2013, respectively, and $176 million and $147 million for the six months ended June 30, 2014 and 2013, respectively. These revenues are recorded as “Asset administration fees” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||
The Company has another 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 $3 million for both the three months ended June 30, 2014 and 2013 and $6 million for both the six months ended June 30, 2014 and 2013. These revenues are recorded as “Asset administration fees” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||
Affiliated Investment Management Expenses | |||||||||||||||||
In accordance with an agreement with Prudential Investment Management, Inc. (“PIMI”), the Company pays investment management expenses to PIMI who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PIMI related to this agreement was $4 million for both the three months ended June 30, 2014 and 2013 and $7 million for both the six months ended June 30, 2014 and 2013. These expenses are recorded as “Net Investment Income” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||||||||
Affiliated Asset Transfers | |||||||||||||||||
From time to time, the Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within Additional paid-in-capital ("APIC") and Realized investment gain(loss), 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) | |||||||||||||||||
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 | 14-Mar | Purchased | Fixed Maturities | 13 | 13 | - | - | - | |||||||||
Debt Agreements | |||||||||||||||||
The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. | |||||||||||||||||
The following table provides the breakout of the Company's short-term and long-term debt with affiliates: | |||||||||||||||||
Affiliate | Date Issued | Amount of Notes - June 30, 2014 | Amount of Notes - December 31, 2013 | Interest Rate | Date of Maturity | ||||||||||||
(in thousands) | |||||||||||||||||
Prudential Financial | 11/15/10 | $ | 66,000 | $ | 66,000 | 3.01% | 11/13/15 | ||||||||||
Prudential Financial | 6/20/11 | 100,000 | 150,000 | 2.17% - 3.17% | 6/2014 - 6/2016 | ||||||||||||
Prudential Financial | 12/15/11 | 159,000 | 159,000 | 2.99% - 3.61% | 12/2014 - 12/2016 | ||||||||||||
Prudential Financial | 12/16/11 | 33,000 | 33,000 | 2.99% - 3.61% | 12/2014 - 12/2016 | ||||||||||||
Prudential Financial | 12/20/12 | 88,000 | 88,000 | 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 | 237,000 | 316,000 | 2.06% - 3.02% | 6/2014 - 6/2017 | ||||||||||||
Washington Street Investment | 12/17/12 | 264,000 | 264,000 | 1.12% - 1.87% | 12/2014 - 12/2017 | ||||||||||||
Washington Street Investment | 12/17/12 | 52,000 | 52,000 | 1.21% - 1.87% | 12/2014 - 12/2017 | ||||||||||||
Prudential Financial | 11/15/13 | 9,000 | 9,000 | 2.24% | 12/15/18 | ||||||||||||
Prudential Financial | 11/15/13 | 23,000 | 23,000 | 3.19% | 12/15/20 | ||||||||||||
Prudential Insurance | 12/6/13 | 120,000 | 120,000 | 2.60% | 12/15/18 | ||||||||||||
Prudential Insurance | 12/6/13 | 130,000 | 130,000 | 4.39% | 12/15/23 | ||||||||||||
Prudential Insurance | 12/6/13 | 250,000 | 250,000 | 3.64% | 12/15/20 | ||||||||||||
Pru Funding, LLC | 12/31/13 | - | 2,900 | 0.23% | 1/7/14 | ||||||||||||
Pru Funding, LLC | 6/26/14 | 60,000 | - | 0.24% | 7/3/14 | ||||||||||||
Total Loans Payable to Affiliates | $ | 1,795,000 | $ | 1,866,900 | |||||||||||||
The total interest expense to the Company related to loans payable to affiliates was $12.9 million and $9.9 million for the three months ended June 30, 2014, and 2013, respectively and $26.0 million and $19.9 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
In June of 2014 the Company paid dividends in the amount of $338 million to Prudential Insurance. In July and December of 2013 the Company paid dividends in the amounts of $155 million and $268 million respectively to Prudential Insurance. | |||||||||||||||||
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2014 | |
Business and Basis of Presentation [Abstract] | ' |
Basis of Presentation, Policy | ' |
Basis of Presentation | |
The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). | |
1. BUSINESS AND BASIS OF PRESENTATION | |
Pruco Life Insurance Company, or the “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 in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors. | |
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. | |
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; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and reserves for contingent liabilities, including reserves for losses in connection with unresolved legal matters. | |
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 increased the Company's scale in the U.S. individual life insurance market, particularly universal life products, and provides complimentary distribution opportunities through expanded wirehouse and bank distribution channels. | |
In connection with this transaction, Prudential Insurance retroceded to the Company the portion of the assumed business that is classified as guaranteed universal life insurance (“GUL”), with account values of approximately $4 billion as of January 2, 2013. The Company has reinsured more than 79,000 GUL policies with a net retained face amount in force of approximately $30 billion. The Company then retroceded all of the GUL policies to an affiliated captive reinsurance company. Collectively, these transactions do not have a material impact on equity, as determined in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), or the statutory capital and surplus of the Company. | |
Significant_Accounting_Policie1
Significant Accounting Policies and Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Adoption of New Accounting Pronouncements | ' |
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
In 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 was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 became effective for interim or annual reporting periods that began after December 15, 2013, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company's consolidated financial position, results of operations or financial statement disclosures. | |
In 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 (“AOCI”) 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 became effective for interim or annual reporting periods that began after December 15, 2012 and was 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 guidance became effective for interim or annual reporting periods that began on or after January 1, 2013, and was applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 5. | |
Future Adoption of New Accounting Pronouncements | ' |
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. | |
In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2016 and must be applied using one of two retrospective application methods. Early adoption is not permitted. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. | |
In August 2014, the FASB issued updated guidance for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity. Under the guidance, an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or financial liabilities, whichever is more observable. When elected, the measurement alternative will eliminate the measurement difference that exists when both are measured at fair value. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2015. Early adoption will be permitted. This guidance can be elected for modified retrospective or full retrospective adoption. The Company is currently assessing the impact of the guidance on the Company's consolidated financial position, results of operations and financial statement disclosures. |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||
Fixed Maturities and Equity Securities, Available-for-sale Securities | ' | ||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
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 | $ | 88,742 | $ | 7,313 | $ | 346 | $ | 95,709 | $ | - | |||||||||||
Obligations of U.S. states and their political | |||||||||||||||||||||
subdivisions | 120,828 | 7,101 | 706 | 127,223 | - | ||||||||||||||||
Foreign government bonds | 28,703 | 3,170 | 138 | 31,735 | - | ||||||||||||||||
Public utilities | 831,661 | 60,332 | 5,802 | 886,191 | - | ||||||||||||||||
Redeemable preferred stock | 841 | 156 | - | 997 | - | ||||||||||||||||
All other corporate securities | 3,727,389 | 222,324 | 22,719 | 3,926,994 | -249 | ||||||||||||||||
Asset-backed securities (1) | 254,286 | 9,526 | 505 | 263,307 | -4,305 | ||||||||||||||||
Commercial mortgage-backed securities | 543,416 | 20,798 | 3,579 | 560,635 | - | ||||||||||||||||
Residential mortgage-backed securities (2) | 143,138 | 11,789 | 223 | 154,704 | -932 | ||||||||||||||||
Total fixed maturities, available-for-sale | $ | 5,739,004 | $ | 342,509 | $ | 34,018 | $ | 6,047,495 | $ | -5,486 | |||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||
Public utilities | $ | 66 | $ | 57 | $ | - | $ | 123 | |||||||||||||
Industrial, miscellaneous & other | 4 | 16 | - | 20 | |||||||||||||||||
Mutual funds | 35,192 | 1,538 | 1 | 36,729 | |||||||||||||||||
Non-redeemable preferred stocks | 340 | 206 | - | 546 | |||||||||||||||||
Total equity securities, available-for-sale | $ | 35,602 | $ | 1,817 | $ | 1 | $ | 37,418 | |||||||||||||
_____________ | |||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, 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 $12 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-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, auto loans, 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. | |||||||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||
Cost | Value | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due in one year or less | $ | 301,388 | $ | 308,535 | |||||||||||||||||
Due after one year through five years | 1,182,415 | 1,287,729 | |||||||||||||||||||
Due after five years through ten years | 1,380,537 | 1,437,151 | |||||||||||||||||||
Due after ten years | 1,933,824 | 2,035,434 | |||||||||||||||||||
Asset-backed securities | 254,286 | 263,307 | |||||||||||||||||||
Commercial mortgage-backed securities | 543,416 | 560,635 | |||||||||||||||||||
Residential mortgage-backed securities | 143,138 | 154,704 | |||||||||||||||||||
Total | $ | 5,739,004 | $ | 6,047,495 | |||||||||||||||||
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities | ' | ||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 78,591 | $ | 197,132 | $ | 118,477 | $ | 242,318 | |||||||||||||
Proceeds from maturities/repayments | 165,763 | 258,923 | 347,782 | 433,247 | |||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 5,147 | 5,766 | 6,826 | 39,154 | |||||||||||||||||
Gross investment losses from sales and maturities | -517 | -1,103 | -924 | -2,834 | |||||||||||||||||
Equity securities, available-for-sale | |||||||||||||||||||||
Proceeds from sales | $ | 5,210 | $ | - | $ | 5,210 | $ | 2,352 | |||||||||||||
Proceeds from maturities/repayments | - | 3 | - | 3 | |||||||||||||||||
Gross investment gains from sales | 145 | - | 145 | 854 | |||||||||||||||||
Fixed maturity and equity security impairments | |||||||||||||||||||||
Net writedowns for other-than-temporary impairment losses | |||||||||||||||||||||
on fixed maturities recognized in earnings (1) | $ | -127 | $ | -212 | $ | -127 | $ | -1,609 | |||||||||||||
Writedowns for impairments on equity securities | - | - | - | -56 | |||||||||||||||||
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | ' | ||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 10,173 | $ | 14,661 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -1,449 | -5,918 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | - | - | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | - | - | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 101 | 202 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -278 | -398 | |||||||||||||||||||
Balance, end of period | $ | 8,547 | $ | 8,547 | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, beginning of period | $ | 15,716 | $ | 27,702 | |||||||||||||||||
Credit loss impairments previously recognized on securities which matured, paid | |||||||||||||||||||||
down, prepaid or were sold during the period | -1,287 | -13,674 | |||||||||||||||||||
Credit loss impairment recognized in the current period on securities not previously | |||||||||||||||||||||
impaired | - | 14 | |||||||||||||||||||
Additional credit loss impairments recognized in the current period on securities | |||||||||||||||||||||
previously impaired | 212 | 709 | |||||||||||||||||||
Increases due to the passage of time on previously recorded credit losses | 219 | 441 | |||||||||||||||||||
Accretion of credit loss impairments previously recognized due to an increase in | |||||||||||||||||||||
cash flows expected to be collected | -20 | -352 | |||||||||||||||||||
Balance, end of period | $ | 14,840 | $ | 14,840 | |||||||||||||||||
Trading Account Assets Disclosure | ' | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 22,953 | $ | 26,276 | $ | 14,118 | $ | 16,162 | |||||||||||||
Equity securities | 687 | 1,462 | 1,388 | 2,730 | |||||||||||||||||
Total trading account assets | $ | 23,640 | $ | 27,738 | $ | 15,506 | $ | 18,892 | |||||||||||||
Commercial Mortgage and Other Loans | ' | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||||||
(in thousands) | Total | (in thousands) | Total | ||||||||||||||||||
Commercial and agricultural mortgage loans by property type: | |||||||||||||||||||||
Retail | $ | 452,212 | 28.6 | % | $ | 467,059 | 30.5 | % | |||||||||||||
Apartments/Multi-Family | 355,811 | 22.5 | 298,365 | 19.5 | |||||||||||||||||
Industrial | 265,393 | 16.8 | 272,239 | 17.7 | |||||||||||||||||
Office | 208,330 | 13.2 | 195,499 | 12.8 | |||||||||||||||||
Other | 108,985 | 6.8 | 102,294 | 6.6 | |||||||||||||||||
Hospitality | 89,096 | 5.5 | 90,085 | 5.9 | |||||||||||||||||
Total commercial mortgage loans | 1,479,827 | 93.4 | 1,425,541 | 93 | |||||||||||||||||
Agricultural property loans | 104,005 | 6.6 | 107,118 | 7 | |||||||||||||||||
Total commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,583,832 | 100 | % | 1,532,659 | 100 | % | |||||||||||||||
Valuation allowance | -6,625 | -8,904 | |||||||||||||||||||
Total net commercial and agricultural mortgage loans by property | |||||||||||||||||||||
type | 1,577,207 | 1,523,755 | |||||||||||||||||||
Other Loans | |||||||||||||||||||||
Uncollateralized loans | 8,410 | 8,410 | |||||||||||||||||||
Total other loans | 8,410 | 8,410 | |||||||||||||||||||
Total commercial mortgage and other loans | $ | 1,585,617 | $ | 1,532,165 | |||||||||||||||||
Allowance for Losses | ' | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for losses, beginning of year | $ | 8,904 | $ | 6,028 | |||||||||||||||||
Addition to / (release of) allowance of losses | 639 | 2,876 | |||||||||||||||||||
Charge-offs, net of recoveries | -2,918 | - | |||||||||||||||||||
Total ending balance (1) | $ | 6,625 | $ | 8,904 | |||||||||||||||||
_____________ | |||||||||||||||||||||
Agricultural loans represent $0.3 million of the ending allowance at both June 30, 2014 and December 31, 2013. | |||||||||||||||||||||
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | ' | ||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||
Ending balance: individually evaluated for impairment (1) | $ | 805 | $ | 3,084 | |||||||||||||||||
Ending balance: collectively evaluated for impairment (2) | 5,820 | 5,820 | |||||||||||||||||||
Total ending balance | $ | 6,625 | $ | 8,904 | |||||||||||||||||
Recorded Investment: (3) | |||||||||||||||||||||
Ending balance gross of reserves: individually evaluated for impairment (1) | $ | 15,695 | $ | 6,392 | |||||||||||||||||
Ending balance gross of reserves: collectively evaluated for impairment (2) | 1,576,547 | 1,534,677 | |||||||||||||||||||
Total ending balance, gross of reserves | $ | 1,592,242 | $ | 1,541,069 | |||||||||||||||||
_____________ | |||||||||||||||||||||
There were no agricultural or uncollateralized loans individually evaluated for impairments at June 30, 2014 and December 31, 2013. | |||||||||||||||||||||
Agricultural loans collectively evaluated for impairment had a recorded investment of $104 million and $107 million at June 30, 2014 and December 31, 2013, respectively, and a related allowance of $0.3 million for both periods. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both June 30, 2014 and December 31, 2013 and no related allowance for both periods. | |||||||||||||||||||||
Recorded investment reflects the balance sheet carrying value gross of related allowance. | |||||||||||||||||||||
Net Investment Income | ' | ||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 66,293 | $ | 71,368 | $ | 132,028 | $ | 139,877 | |||||||||||||
Equity securities, available-for-sale | 1 | - | 1 | 1 | |||||||||||||||||
Trading account assets | 201 | 176 | 397 | 309 | |||||||||||||||||
Commercial mortgage and other loans | 20,891 | 21,219 | 40,721 | 41,923 | |||||||||||||||||
Policy loans | 15,072 | 14,468 | 29,798 | 28,605 | |||||||||||||||||
Short-term investments and cash equivalents | 103 | 172 | 260 | 416 | |||||||||||||||||
Other long-term investments | 5,552 | 2,554 | 8,019 | 6,256 | |||||||||||||||||
Gross investment income | 108,113 | 109,957 | 211,224 | 217,387 | |||||||||||||||||
Less: investment expenses | -4,893 | -4,925 | -9,527 | -9,847 | |||||||||||||||||
Net investment income | $ | 103,220 | $ | 105,032 | $ | 201,697 | $ | 207,540 | |||||||||||||
Realized Gain (Loss) on Investments | ' | ||||||||||||||||||||
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. | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturities | $ | 4,503 | $ | 4,451 | $ | 5,775 | $ | 34,711 | |||||||||||||
Equity securities | 145 | - | 145 | 798 | |||||||||||||||||
Commercial mortgage and other loans | -431 | 242 | -304 | 690 | |||||||||||||||||
Joint ventures and limited partnerships | - | -6 | - | -57 | |||||||||||||||||
Derivatives | 27,443 | -44,315 | 111,565 | -29,063 | |||||||||||||||||
Other | 8 | 3 | 18 | 10 | |||||||||||||||||
Realized investment gains (losses), net | $ | 31,668 | $ | -39,625 | $ | 117,199 | $ | 7,089 | |||||||||||||
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, 2013 | $ | 403 | $ | 56,243 | $ | 56,646 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | -36 | 170,185 | 170,149 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -5,920 | -5,920 | ||||||||||||||||||
Income tax benefit (expense) | 13 | -57,493 | -57,480 | ||||||||||||||||||
Balance, June 30, 2014 | $ | 380 | $ | 163,015 | $ | 163,395 | |||||||||||||||
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, 2012 | $ | 258 | $ | 267,204 | $ | 267,461 | |||||||||||||||
Change in other comprehensive income | |||||||||||||||||||||
before reclassifications | -138 | -240,516 | -240,655 | ||||||||||||||||||
Amounts reclassified from AOCI | - | -35,509 | -35,509 | ||||||||||||||||||
Income tax benefit (expense) | 48 | 96,608 | 96,656 | ||||||||||||||||||
Balance, June 30, 2013 | $ | 168 | $ | 87,787 | $ | 87,954 | |||||||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges of ($7) million and ($5) million as of June 30, 2014 and December 31, 2013, respectively and $6 million and $0 million as of June 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
30-Jun-14 | 30-Jun-14 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Amounts reclassified from AOCI (1)(2): | |||||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||||
Cash flow hedges - Currency/Interest rate (3) | $ | -132 | $ | 50 | |||||||||||||||||
Net unrealized investment gains (losses) on available-for-sale securities (4) | 4,780 | 5,870 | |||||||||||||||||||
Total net unrealized investment gains (losses) | 4,648 | 5,920 | |||||||||||||||||||
Total reclassifications for the period | $ | 4,648 | $ | 5,920 | |||||||||||||||||
_____________ | |||||||||||||||||||||
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 5 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 Policyholders' Account Balances (1) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 4,498 | $ | -3,324 | $ | 1,819 | $ | -1,079 | $ | 1,914 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 1,410 | - | - | -494 | 916 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | 167 | - | - | -58 | 109 | ||||||||||||||||
Impact of net unrealized investment (gains) losses | |||||||||||||||||||||
on deferred policy acquisition costs and other costs | - | 454 | - | -159 | 295 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | -223 | 78 | -145 | ||||||||||||||||
Balance, June 30, 2014 | $ | 6,075 | $ | -2,870 | $ | 1,596 | $ | -1,712 | $ | 3,089 | |||||||||||
_____________ | |||||||||||||||||||||
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 Policyholders' Account Balances (2) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 123,153 | $ | -43,030 | $ | 3,293 | $ | -29,087 | $ | 54,329 | |||||||||||
Net investment gains (losses) on | |||||||||||||||||||||
investments arising during the period | 196,175 | - | - | -68,661 | 127,514 | ||||||||||||||||
Reclassification adjustment for (gains) | |||||||||||||||||||||
losses included in net income | -6,087 | - | - | 2,130 | -3,957 | ||||||||||||||||
Impact of net unrealized investment (gains) losses | |||||||||||||||||||||
on deferred policy acquisition costs and other costs | - | -65,487 | - | 22,920 | -42,567 | ||||||||||||||||
Impact of net unrealized investment (gains) | |||||||||||||||||||||
losses on future policy benefits | |||||||||||||||||||||
and policyholders' account balances | - | - | 37,855 | -13,249 | 24,606 | ||||||||||||||||
Balance, June 30, 2014 | $ | 313,241 | $ | -108,517 | $ | 41,148 | $ | -85,947 | $ | 159,925 | |||||||||||
_____________ | |||||||||||||||||||||
Includes cash flow hedges. See Note 5 for information on cash flow hedges. | |||||||||||||||||||||
Balances are net of reinsurance. | |||||||||||||||||||||
Unrealized Gains and (Losses) on Investments | ' | ||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fixed maturity securities on which an OTTI loss has been recognized | $ | 6,075 | $ | 4,498 | |||||||||||||||||
Fixed maturity securities, available-for-sale - all other | 302,415 | 107,970 | |||||||||||||||||||
Equity securities, available-for-sale | 1,816 | 204 | |||||||||||||||||||
Derivatives designated as cash flow hedges (1) | -7,093 | -4,701 | |||||||||||||||||||
Other investments | 16,103 | 19,680 | |||||||||||||||||||
Net unrealized gains (losses) on investments | $ | 319,316 | $ | 127,651 | |||||||||||||||||
_____________ | |||||||||||||||||||||
See Note 5 for more information on cash flow hedges. | |||||||||||||||||||||
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures | ' | ||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
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 | $ | 996 | $ | 1 | $ | 17,107 | $ | 345 | $ | 18,103 | $ | 346 | |||||||||
Obligations of U.S. states and their | |||||||||||||||||||||
political subdivisions | - | - | 22,874 | 706 | 22,874 | 706 | |||||||||||||||
Foreign government bonds | 10,556 | 138 | - | - | 10,556 | 138 | |||||||||||||||
Corporate securities | 176,677 | 2,015 | 652,027 | 26,506 | 828,704 | 28,521 | |||||||||||||||
Asset-backed securities | 29,549 | 158 | 44,201 | 347 | 73,750 | 505 | |||||||||||||||
Commercial mortgage-backed securities | 4,040 | 125 | 94,976 | 3,454 | 99,016 | 3,579 | |||||||||||||||
Residential mortgage-backed securities | - | - | 30,734 | 223 | 30,734 | 223 | |||||||||||||||
Total | $ | 221,818 | $ | 2,437 | $ | 861,919 | $ | 31,581 | $ | 1,083,737 | $ | 34,018 | |||||||||
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 | |||||||||
Duration Of Gross Unrealized Losses On Equity Securities | ' | ||||||||||||||||||||
Equity securities, available-for-sale | $ | 1 | $ | - | $ | 16 | $ | 1 | $ | 17 | $ | 1 | |||||||||
Equity securities, available-for-sale | $ | 44 | $ | 3 | $ | - | $ | - | $ | 44 | $ | 3 | |||||||||
Credit Quality Indicators [Text Block] | ' | ||||||||||||||||||||
Total commercial and agricultural mortgage loans | |||||||||||||||||||||
Debt Service Coverage Ratio - June 30, 2014 | |||||||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | ||||||||||||||||||
Loan-to-Value Ratio | (in thousands) | ||||||||||||||||||||
0%-59.99% | $ | 932,821 | $ | 13,362 | $ | 10,370 | $ | 956,553 | |||||||||||||
60%-69.99% | 374,216 | 12,442 | 27,444 | 414,102 | |||||||||||||||||
70%-79.99% | 131,861 | 14,817 | 13,993 | 160,671 | |||||||||||||||||
Greater than 80% | 30,101 | 20,927 | 1,478 | 52,506 | |||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 1,468,999 | $ | 61,548 | $ | 53,285 | $ | 1,583,832 | |||||||||||||
Total commercial and agricultural mortgage loans | |||||||||||||||||||||
Debt Service Coverage Ratio - December 31, 2013 | |||||||||||||||||||||
Greater than 1.2X | 1.0X to <1.2X | Less than 1.0X | Total | ||||||||||||||||||
Loan-to-Value Ratio | (in thousands) | ||||||||||||||||||||
0%-59.99% | $ | 894,897 | $ | 11,196 | $ | 9,323 | $ | 915,416 | |||||||||||||
60%-69.99% | 314,325 | 28,420 | 4,327 | 347,072 | |||||||||||||||||
70%-79.99% | 183,853 | 9,295 | 25,626 | 218,774 | |||||||||||||||||
Greater than 80% | 24,000 | 5,310 | 22,087 | 51,397 | |||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 1,417,075 | $ | 54,221 | $ | 61,363 | $ | 1,532,659 |
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (1) | Total | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | - | $ | 95,709 | $ | - | $ | - | $ | 95,709 | |||||||||||||||||||||||||||||||||||
Obligations of U.S. states and their political subdivisions | - | 127,223 | - | - | 127,223 | ||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | - | 31,735 | - | - | 31,735 | ||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 4,792,085 | 22,097 | - | 4,814,182 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 197,128 | 66,179 | - | 263,307 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | 560,635 | - | - | 560,635 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | - | 154,704 | - | - | 154,704 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 5,959,219 | 88,276 | - | 6,047,495 | ||||||||||||||||||||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 24,288 | - | - | 24,288 | ||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | - | 1,987 | - | - | 1,987 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Equity securities | - | - | 1,463 | - | 1,463 | ||||||||||||||||||||||||||||||||||||||||
Sub-total | - | 26,275 | 1,463 | - | 27,738 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available for sale | 143 | 36,729 | 546 | - | 37,418 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 33,585 | 75,943 | 18 | - | 109,546 | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents | 12,627 | 7,000 | - | - | 19,627 | ||||||||||||||||||||||||||||||||||||||||
Other long-term investments | - | 129,151 | 1,805 | -128,721 | 2,235 | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables | - | - | 1,713,132 | - | 1,713,132 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 163,539 | 23,817 | - | 187,356 | ||||||||||||||||||||||||||||||||||||||||
Sub-total excluding separate account assets | 46,355 | 6,397,856 | 1,829,057 | -128,721 | 8,144,547 | ||||||||||||||||||||||||||||||||||||||||
Separate account assets (2) | 918,593 | 106,003,695 | 285,811 | - | 107,208,099 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 964,948 | $ | 112,401,551 | $ | 2,114,868 | $ | -128,721 | $ | 115,352,646 | |||||||||||||||||||||||||||||||||||
Future policy benefits (4) | $ | - | $ | - | $ | 1,700,747 | $ | - | $ | 1,700,747 | |||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 131,327 | - | -129,978 | 1,349 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 131,327 | $ | 1,700,747 | $ | -129,978 | $ | 1,702,096 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
Payables to parents and affiliates | - | 218,467 | - | -73,051 | 145,416 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities (3) | - | - | 388,268 | - | 388,268 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 218,467 | $ | 39,869 | $ | -73,051 | $ | 185,285 | |||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | 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 | 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) | $ | 23,231 | $ | 106,081 | $ | 28,076 | $ | 2,802 | $ | 590 | $ | 18 | Fair Value, beginning of period assets/(liabilities) | $ | 18,293 | $ | 80,934 | $ | - | $ | 2,731 | $ | 569 | $ | 18 | ||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Included in earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 258 | 113 | - | - | - | - | Realized investment gains (losses), net | 256 | 113 | - | - | - | - | ||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 36 | - | - | Asset management fees and other income | - | - | - | 107 | - | - | ||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 48 | -28 | - | - | 20 | - | Included in other comprehensive income (loss) | 385 | 107 | -2 | - | 41 | - | ||||||||||||||||||||||||||||||||
Net investment income | 21 | 66 | - | - | - | - | Net investment income | 31 | 122 | - | - | - | - | ||||||||||||||||||||||||||||||||
Purchases | 4,615 | - | - | - | - | - | Purchases | 12,586 | - | 28,078 | - | - | - | ||||||||||||||||||||||||||||||||
Sales | -3,800 | - | - | - | -64 | - | Sales | -5,191 | - | - | - | -64 | - | ||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | Issuances | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Settlements | -1,033 | -30,305 | - | -1,375 | - | - | Settlements | -1,836 | -33,442 | - | -1,375 | - | - | ||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 2,231 | 1,746 | - | - | - | - | Transfers into Level 3 (2) | 2,231 | 31,153 | - | - | - | - | ||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -3,474 | -11,494 | -28,076 | - | - | - | Transfers out of Level 3 (2) | -4,658 | -12,808 | -28,076 | - | - | - | ||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 22,097 | $ | 66,179 | $ | - | $ | 1,463 | $ | 546 | $ | 18 | Fair Value, end of period assets/(liabilities) | $ | 22,097 | $ | 66,179 | $ | - | $ | 1,463 | $ | 546 | $ | 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 | $ | -101 | $ | - | $ | - | $ | - | $ | - | $ | - | Realized investment gains (losses), net | $ | -101 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 38 | $ | - | $ | - | Asset management fees and other income | $ | - | $ | - | $ | - | $ | 109 | $ | - | $ | - | ||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other Long-term Investments | Reinsurance Recoverables (4) | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | ||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,247 | $ | 1,018,443 | $ | 5,124 | $ | 278,638 | $ | -1,014,755 | Fair Value, beginning of period assets/(liabilities) | $ | 1,168 | $ | -376,868 | $ | 4,121 | $ | 279,842 | $ | 348,399 | ||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Total gains (losses) (realized/unrealized): | ||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Included in earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 91 | 548,605 | - | -284 | -525,399 | Realized investment gains (losses), net | 91 | 1,800,973 | - | 1,985 | -1,732,681 | ||||||||||||||||||||||||||||||||||
Asset management fees and other income | 17 | - | - | - | - | Asset management fees and other income | -5 | - | - | - | - | ||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 4,046 | - | Interest credited to policyholders' account balances | - | - | - | 6,722 | - | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | 3 | - | - | Included in other comprehensive income (loss) | - | - | 41 | - | - | ||||||||||||||||||||||||||||||||||
Net investment income | - | - | 41 | - | - | Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Purchases | 35 | 146,084 | 18,649 | 5,191 | - | Purchases | 136 | 289,027 | 18,649 | 39,769 | - | ||||||||||||||||||||||||||||||||||
Sales | - | - | - | -1,780 | - | Sales | - | - | - | -42,507 | - | ||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -160,593 | Issuances | - | - | - | - | -316,465 | ||||||||||||||||||||||||||||||||||
Settlements | -12 | - | - | - | - | Settlements | -12 | - | - | - | - | ||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 427 | - | - | - | - | Transfers into Level 3 (2) | 427 | - | 1,985 | - | - | ||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | Transfers out of Level 3 (2) | - | - | -979 | - | - | ||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,805 | $ | 1,713,132 | $ | 23,817 | $ | 285,811 | $ | -1,700,747 | Fair Value, end of period assets/(liabilities) | $ | 1,805 | $ | 1,713,132 | $ | 23,817 | $ | 285,811 | $ | -1,700,747 | ||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | 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 | $ | 91 | $ | 552,449 | $ | - | $ | - | $ | -529,822 | Realized investment gains (losses), net | $ | 91 | $ | 1,803,209 | $ | - | $ | - | $ | -1,735,757 | ||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | - | Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 4,046 | $ | - | Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 6,722 | $ | - | ||||||||||||||||||||||||
Three Months Ended June 30, 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 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 39,791 | $ | 119,053 | $ | - | $ | 3,737 | $ | 1,448 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 84 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 222 | 18 | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -856 | -155 | -3 | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 19 | 86 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 1,597 | 15,280 | 5,050 | - | - | ||||||||||||||||||||||||||||||||||||||||
Sales | -3 | -1 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | -15,736 | -4,388 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -6,293 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,603 | $ | 129,875 | $ | 5,047 | $ | 3,959 | $ | 1,466 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 222 | $ | - | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other Liabilities (4) | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 842 | $ | 3,000 | $ | 262,007 | $ | -575,595 | $ | 504,797 | |||||||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | -9 | - | 10 | 1,085,244 | -1,008,441 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 11 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 5,282 | - | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | -5 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 87 | -998 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | - | 2,651 | 8,515 | - | 133,155 | ||||||||||||||||||||||||||||||||||||||||
Sales | - | -1,000 | -4,638 | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | -143,338 | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 931 | $ | 3,648 | $ | 271,176 | $ | 366,311 | $ | -370,489 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 1,082,731 | $ | -1,006,152 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 10 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | 5,283 | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 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 | |||||||||||||||||||||||||||||||||||||||||
(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 | -696 | - | - | - | -56 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 682 | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | -940 | 164 | -3 | - | 33 | ||||||||||||||||||||||||||||||||||||||||
Net investment income | 58 | 174 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 11,724 | 33,078 | 8,484 | 380 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | -2,323 | -1 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | -19,908 | -12,267 | -3,434 | -380 | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -6,293 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 18,603 | $ | 129,875 | $ | 5,047 | $ | 3,959 | $ | 1,466 | |||||||||||||||||||||||||||||||||||
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 | $ | - | $ | - | $ | - | $ | 682 | $ | - | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other Liabilities (4) | |||||||||||||||||||||||||||||||||||||||||
(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 | - | 758 | 2,061,810 | -1,915,881 | ||||||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 88 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | 11,072 | - | - | ||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | 2 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Purchases | 87 | 2,651 | 36,496 | - | 258,235 | ||||||||||||||||||||||||||||||||||||||||
Sales | - | -1,000 | -25,405 | - | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | -277,608 | - | ||||||||||||||||||||||||||||||||||||||||
Settlements | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 931 | 3,648 | $ | 271,176 | $ | 366,311 | $ | -370,489 | ||||||||||||||||||||||||||||||||||||
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 | $ | - | - | $ | - | $ | 2,051,063 | $ | -1,906,147 | ||||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | 89 | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | - | $ | 11,072 | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Carrying Amount (1) | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage and other loans | $ | - | $ | 8,175 | $ | 1,684,155 | $ | 1,692,330 | $ | 1,585,617 | |||||||||||||||||||||||||||||||||||
Policy loans | - | - | 1,108,653 | 1,108,653 | 1,108,653 | ||||||||||||||||||||||||||||||||||||||||
Other long term investments | - | - | 6,569 | 6,569 | 5,616 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 103,128 | 22,772 | - | 125,900 | 125,900 | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income | - | 90,147 | - | 90,147 | 90,147 | ||||||||||||||||||||||||||||||||||||||||
Receivables from parents and affiliates | - | 86,153 | - | 86,153 | 85,894 | ||||||||||||||||||||||||||||||||||||||||
Other assets | - | 37,355 | - | 37,355 | 37,355 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 103,128 | $ | 244,602 | $ | 2,799,377 | $ | 3,147,107 | $ | 3,039,182 | |||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Policyholders' account balances - investment contracts | $ | - | $ | 895,949 | $ | 40,334 | $ | 936,283 | $ | 944,688 | |||||||||||||||||||||||||||||||||||
Cash collateral for loaned securities | - | 89,917 | - | 89,917 | 89,917 | ||||||||||||||||||||||||||||||||||||||||
Securities sold under agreement to repurchase | - | 4,400 | - | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||||||||
Short-term debt | - | 335,273 | - | 335,273 | 332,000 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | - | 1,511,447 | - | 1,511,447 | 1,463,000 | ||||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | - | 37,004 | - | 37,004 | 37,004 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | - | 241,478 | - | 241,478 | 241,478 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | - | $ | 3,115,468 | $ | 40,334 | $ | 3,155,802 | $ | 3,112,487 | |||||||||||||||||||||||||||||||||||
Fair Value Inputs Quantitative Information [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value (1) | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 16,939 | Discounted cash flow | Discount rate | 9.78% | 15.00% | 10.28% | Decrease | |||||||||||||||||||||||||||||||||||||
Market Comparables | EBITDA Multiples (2) | 5.0X | 6.2X | 5.87X | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - Living Benefits | $ | 1,501,856 | Fair values are determined in the same manner as future policy benefits. | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - No Lapse Guarantee | $ | 211,276 | Discounted cash flow | Lapse rate (3) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.02% | 1.03% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (5) | 0% | 23% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Premium Payment (6) | 1X | 3.75X | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (7) | $ | 1,700,747 | Discounted cash flow | Lapse rate (8) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.02% | 1.03% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (9) | 70% | 98% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (10) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (11) | 0% | 13% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Equity Volatility curve | 14% | 28% | Increase | ||||||||||||||||||||||||||||||||||||||||||
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 Comparable | EBITDA Multiples (2) | 5.0X | 7.0X | 5.91X | Increase | ||||||||||||||||||||||||||||||||||||||||
Liquidation | Liquidation value | 11.61% | 38.49% | 31.83% | Increase | ||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverables - No Lapse Guarantee | $ | 11,400 | See the Reinsurance Recoverable section above for an explanation of the fair value determination. | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits (7) | $ | -348,399 | Discounted cash flow | Lapse rate (8) | 0% | 11% | Decrease | ||||||||||||||||||||||||||||||||||||||
NPR spread (4) | 0.08% | 1.09% | Decrease | ||||||||||||||||||||||||||||||||||||||||||
Utilization rate (9) | 70% | 94% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Withdrawal rate (10) | 86% | 100% | Increase | ||||||||||||||||||||||||||||||||||||||||||
Mortality rate (11) | 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. | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Level Three Amounts By Pricing Source [Table Text Block] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | As of June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Available For Sale | Internal (1) | External (2) | Total | ||||||||||||||||||||||||||||||||||||||||||
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) | $ | 23,231 | $ | 106,081 | $ | 28,076 | $ | 2,802 | $ | 590 | $ | 18 | Corporate securities | $ | 16,939 | $ | 5,158 | $ | 22,097 | ||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Asset-backed securities | 262 | 65,917 | 66,179 | |||||||||||||||||||||||||||||||||||||||||
Included in earnings: | Short-term investments | 18 | - | 18 | |||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 258 | 113 | - | - | - | - | Equity securities | 546 | 1,463 | 2,009 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | - | - | - | 36 | - | - | Other long-term investments | 440 | 1,365 | 1,805 | |||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | 48 | -28 | - | - | 20 | - | Reinsurance recoverables | 1,713,132 | - | 1,713,132 | |||||||||||||||||||||||||||||||||||
Net investment income | 21 | 66 | - | - | - | - | Receivables from parents and affiliates | - | 23,817 | 23,817 | |||||||||||||||||||||||||||||||||||
Purchases | 4,615 | - | - | - | - | - | Subtotal excluding separate account assets | 1,731,337 | 97,720 | 1,829,057 | |||||||||||||||||||||||||||||||||||
Sales | -3,800 | - | - | - | -64 | - | |||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | - | - | Separate account assets | 82,312 | 203,499 | 285,811 | |||||||||||||||||||||||||||||||||||
Settlements | -1,033 | -30,305 | - | -1,375 | - | - | Total assets | $ | 1,813,649 | $ | 301,219 | $ | 2,114,868 | ||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 2,231 | 1,746 | - | - | - | - | Future policy benefits | $ | 1,700,747 | $ | - | $ | 1,700,747 | ||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | -3,474 | -11,494 | -28,076 | - | - | - | Total liabilities | $ | 1,700,747 | $ | - | $ | 1,700,747 | ||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 22,097 | $ | 66,179 | $ | - | $ | 1,463 | $ | 546 | $ | 18 | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | Internal (1) | External (2) | Total | ||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | -101 | $ | - | $ | - | $ | - | $ | - | $ | - | Corporate securities | $ | 15,100 | $ | 3,193 | $ | 18,293 | ||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | 38 | $ | - | $ | - | Asset-backed securities | 355 | 80,579 | 80,934 | |||||||||||||||||||||||||||||
Short-term investments | 18 | - | 18 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Equity securities | 569 | 2,731 | 3,300 | |||||||||||||||||||||||||||||||||||||||||
Other Long-term Investments | Reinsurance Recoverables | Receivables from Parents and Affiliates | Separate Account Assets (1) | Future Policy Benefits | Other long-term investments | - | 1,168 | 1,168 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Reinsurance recoverables | 11,400 | - | 11,400 | |||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period assets/(liabilities) | $ | 1,247 | $ | 1,018,443 | $ | 5,124 | $ | 278,638 | $ | -1,014,755 | Receivables from parents and affiliates | - | 4,121 | 4,121 | |||||||||||||||||||||||||||||||
Total gains (losses) (realized/unrealized): | Subtotal excluding separate account assets | 27,442 | 91,792 | 119,234 | |||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | 91 | 548,605 | - | -284 | -525,399 | Separate account assets | 81,795 | 198,047 | 279,842 | ||||||||||||||||||||||||||||||||||||
Asset management fees and other income | 17 | - | - | - | - | Total assets | $ | 109,237 | $ | 289,839 | $ | 399,076 | |||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | - | - | - | 4,046 | - | Future policy benefits | $ | -348,399 | $ | - | $ | -348,399 | |||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | - | - | 3 | - | - | Other liabilities | 388,268 | - | 388,268 | ||||||||||||||||||||||||||||||||||||
Net investment income | - | - | 41 | - | - | Total liabilities | $ | 39,869 | $ | - | $ | 39,869 | |||||||||||||||||||||||||||||||||
Purchases | 35 | 146,084 | 18,649 | 5,191 | - | ||||||||||||||||||||||||||||||||||||||||
Sales | - | - | - | -1,780 | - | ||||||||||||||||||||||||||||||||||||||||
Issuances | - | - | - | - | -160,593 | ||||||||||||||||||||||||||||||||||||||||
Settlements | -12 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (2) | 427 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (2) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Fair Value, end of period assets/(liabilities) | $ | 1,805 | $ | 1,713,132 | $ | 23,817 | $ | 285,811 | $ | -1,700,747 | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) for the period relating to those | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets that were still held at the end of the period (3): | |||||||||||||||||||||||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | $ | 91 | $ | 552,449 | $ | - | $ | - | $ | -529,822 | |||||||||||||||||||||||||||||||||||
Asset management fees and other income | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | $ | - | $ | - | $ | - | $ | 4,046 | $ | - |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||
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 | $ | 270,355 | $ | 6,292 | $ | -14,275 | $ | 249,601 | $ | 6,304 | $ | -11,583 | |||||||||||
Total Qualifying Hedges | $ | 270,355 | $ | 6,292 | $ | -14,275 | $ | 249,601 | $ | 6,304 | $ | -11,583 | |||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Interest Rate Swaps | $ | 2,334,400 | $ | 94,244 | $ | -96,407 | $ | 2,434,400 | $ | 47,475 | $ | -185,222 | |||||||||||
Interest Rate Options | 100,000 | 3,173 | - | - | - | - | |||||||||||||||||
Currency | |||||||||||||||||||||||
Forwards | 1,081 | 4 | -13 | 507 | 2 | - | |||||||||||||||||
Credit | |||||||||||||||||||||||
Credit Default Swaps | 13,275 | 11 | -768 | 14,275 | 15 | -862 | |||||||||||||||||
Currency/Interest Rate | |||||||||||||||||||||||
Currency Swaps | 67,963 | 333 | -3,068 | 69,450 | 211 | -3,325 | |||||||||||||||||
Equity | |||||||||||||||||||||||
Total Return Swaps | 406,402 | - | -2,264 | 332,000 | - | -8,057 | |||||||||||||||||
Equity Options | 56,309,359 | 25,612 | -14,533 | 40,739,168 | 19,639 | -9,418 | |||||||||||||||||
Total Non-Qualifying Hedges | 59,232,480 | 123,377 | -117,053 | 43,589,800 | 67,342 | -206,884 | |||||||||||||||||
Total Derivatives (1) | $ | 59,502,835 | $ | 129,669 | $ | -131,328 | $ | 43,839,401 | $ | 73,646 | $ | -218,467 | |||||||||||
Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a liability of $1,701 million and an asset of $348 million as of June 30, 2014 and December 31, 2013, respectively, included in “Future policy benefits.” The reinsurance embedded derivatives was an asset of $1,713 million as of June 30, 2014, included in “Reinsurance Recoverables” and a liability of $388 million and an asset of $11 million, as of December 31, 2013, included in “Other Liabilities” and "Reinsurance Recoverables." | |||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 264 | $ | -329 | $ | -2,500 | |||||||||||||||
Total cash flow hedges | - | 264 | -329 | -2,500 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | 70,929 | - | - | - | |||||||||||||||||||
Currency | -17 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | -273 | - | -18 | - | |||||||||||||||||||
Credit | -116 | - | - | - | |||||||||||||||||||
Equity | -26,232 | - | - | - | |||||||||||||||||||
Embedded Derivatives | -16,848 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | 27,443 | - | -18 | - | |||||||||||||||||||
Total | $ | 27,443 | $ | 264 | $ | -347 | $ | -2,500 | |||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 517 | $ | -400 | $ | -2,392 | |||||||||||||||
Total cash flow hedges | - | 517 | -400 | -2,392 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | 162,506 | - | - | - | |||||||||||||||||||
Currency | -14 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | 654 | - | -4 | - | |||||||||||||||||||
Credit | -158 | - | - | - | |||||||||||||||||||
Equity | -34,315 | - | - | - | |||||||||||||||||||
Embedded Derivatives | -17,108 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | 111,565 | - | -4 | - | |||||||||||||||||||
Total | $ | 111,565 | $ | 517 | $ | -404 | $ | -2,392 | |||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 240 | $ | 15 | $ | -489 | |||||||||||||||
Total cash flow hedges | - | 240 | 15 | -489 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | -85,427 | - | - | - | |||||||||||||||||||
Currency | -11 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | -296 | - | 24 | - | |||||||||||||||||||
Credit | -149 | - | - | - | |||||||||||||||||||
Equity | -11,115 | - | - | - | |||||||||||||||||||
Embedded Derivatives | 52,683 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | -44,315 | - | 24 | - | |||||||||||||||||||
Total | $ | -44,315 | $ | 240 | $ | 39 | $ | -489 | |||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Realized Investment Gains/(Losses) | Net Investment Income | Other Income | Accumulated Other Comprehensive Income (Loss)(1) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Currency/Interest Rate | $ | - | $ | 468 | $ | 70 | $ | 5,619 | |||||||||||||||
Total cash flow hedges | - | 468 | 70 | 5,619 | |||||||||||||||||||
Derivatives Not Qualifying as Hedging Instruments: | |||||||||||||||||||||||
Interest Rate | -119,795 | - | - | - | |||||||||||||||||||
Currency | 95 | - | - | - | |||||||||||||||||||
Currency/Interest Rate | 255 | - | 24 | - | |||||||||||||||||||
Credit | -670 | - | - | - | |||||||||||||||||||
Equity | -65,416 | - | - | - | |||||||||||||||||||
Embedded Derivatives | 156,468 | - | - | - | |||||||||||||||||||
Total non-qualifying hedges | -29,063 | - | 24 | - | |||||||||||||||||||
Total | $ | -29,063 | $ | 468 | $ | 94 | $ | 5,619 | |||||||||||||||
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, 2013 | -4,701 | ||||||||||||||||||||||
Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2014 | -2,342 | ||||||||||||||||||||||
Amount reclassified into current period earnings | -50 | ||||||||||||||||||||||
Balance, June 30, 2014 | $ | -7,093 | |||||||||||||||||||||
Offsetting Of Financial Assets And Liabilities | ' | ||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||
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 | $ | 129,151 | $ | -128,721 | $ | 429 | $ | -252 | $ | 177 | |||||||||||||
Securities purchased under agreement to resell | 22,772 | - | 22,772 | -22,772 | - | ||||||||||||||||||
Total Assets | $ | 151,923 | $ | -128,721 | $ | 23,201 | $ | -23,024 | $ | 177 | |||||||||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||||||
Derivatives | $ | 131,327 | $ | -129,978 | $ | 1,349 | $ | -5,852 | $ | -4,503 | |||||||||||||
Securities sold under agreement to repurchase | 4,400 | - | 4,400 | -4,400 | - | ||||||||||||||||||
Total Liabilities | $ | 135,727 | $ | -129,978 | $ | 5,749 | $ | -10,252 | $ | -4,503 | |||||||||||||
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 |
Related_Party_2_Tables
Related Party 2 (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Reinsurance [Abstract] | ' | ||||||||||||
Gross and Net Life Insurance in Force | ' | ||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
(in thousands) | |||||||||||||
Direct gross life insurance face amount in force | $ | 685,708,205 | $ | 639,234,213 | |||||||||
Assumed gross life insurance face amount in force | 45,005,228 | 41,449,226 | |||||||||||
Reinsurance ceded | -671,295,042 | -624,334,216 | |||||||||||
Net life insurance face amount in force | $ | 59,418,391 | $ | 56,349,223 | |||||||||
Related_Party_Tables
Related Party (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Reinsurance Table [Text Block] | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Reinsurance recoverable | $ | 16,317,710 | $ | 13,657,859 | |||||||||||||
Policy loans | -67,675 | -64,720 | |||||||||||||||
Deferred policy acquisition costs | -1,627,661 | -1,627,838 | |||||||||||||||
Policyholders' account balances | 4,839,907 | 4,681,356 | |||||||||||||||
Future policy benefits and other policyholder liabilities | 1,773,639 | 1,359,340 | |||||||||||||||
Other liabilities (reinsurance payables) (1) | 239,373 | 618,781 | |||||||||||||||
(1) December 31, 2013 includes $388 million reclassed from reinsurance recoverables to other liabilities. | |||||||||||||||||
The reinsurance recoverables by counterparty is broken out below. | |||||||||||||||||
Reinsurance Table By Affiliate [Text Block] | ' | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
UPARC | $ | 258,319 | $ | 44,835 | |||||||||||||
PAR U | 8,693,467 | 8,091,714 | |||||||||||||||
PURC | 1,047,009 | 940,218 | |||||||||||||||
PARCC | 2,459,261 | 2,411,157 | |||||||||||||||
PAR Term | 935,027 | 816,787 | |||||||||||||||
Term Re | 40,834 | - | |||||||||||||||
Prudential Insurance | 188,320 | 190,035 | |||||||||||||||
Pruco Re (1) | 1,502,525 | 642 | |||||||||||||||
Prudential of Taiwan | 1,189,432 | 1,157,639 | |||||||||||||||
Unaffiliated | 3,516 | 4,832 | |||||||||||||||
Total Reinsurance Recoverables | $ | 16,317,710 | $ | 13,657,859 | |||||||||||||
(1) December 31, 2013 excludes $388 million reclassed from reinsurance recoverable to other liabilities. | |||||||||||||||||
Reinsurance Impact On Income Statement [Text Block] | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Premiums: | |||||||||||||||||
Direct | $ | 352,491 | $ | 330,174 | $ | 692,059 | $ | 645,941 | |||||||||
Assumed | - | - | - | - | |||||||||||||
Ceded | -334,484 | -316,283 | -658,807 | -618,844 | |||||||||||||
Net Premiums | 18,007 | 13,891 | 33,252 | 27,097 | |||||||||||||
Policy charges and fee income: | |||||||||||||||||
Direct | 688,988 | 615,496 | 1,352,773 | 1,194,364 | |||||||||||||
Assumed | 135,518 | 109,717 | 226,349 | 159,752 | |||||||||||||
Ceded | -301,310 | -238,337 | -542,301 | -403,815 | |||||||||||||
Net policy charges and fee income: | 523,196 | 486,876 | 1,036,821 | 950,301 | |||||||||||||
Net investment income | |||||||||||||||||
Direct | 104,007 | 105,413 | 202,998 | 208,402 | |||||||||||||
Assumed | 340 | 295 | 678 | 610 | |||||||||||||
Ceded | -1,127 | -676 | -1,979 | -1,472 | |||||||||||||
Net investment income | 103,220 | 105,032 | 201,697 | 207,540 | |||||||||||||
Net other income: | |||||||||||||||||
Direct | 13,167 | 11,176 | 26,574 | 24,411 | |||||||||||||
Assumed & Ceded | - | - | - | -31,118 | |||||||||||||
Net other income | 13,167 | 11,176 | 26,574 | -6,707 | |||||||||||||
Interest credited to policyholders' account balances: | |||||||||||||||||
Direct | 105,230 | 41,048 | 206,123 | 81,770 | |||||||||||||
Assumed | 30,984 | 37,505 | 60,231 | 70,373 | |||||||||||||
Ceded | -52,438 | -52,105 | -102,775 | -98,727 | |||||||||||||
Net interest credited to policyholders' account balances | 83,776 | 26,448 | 163,579 | 53,416 | |||||||||||||
Policyholders' benefits (including change in reserves): | |||||||||||||||||
Direct | 466,514 | 343,326 | 963,994 | 749,731 | |||||||||||||
Assumed | 137,403 | -1,565 | 320,078 | 7,740 | |||||||||||||
Ceded | -531,786 | -276,871 | -1,126,906 | -630,175 | |||||||||||||
Net policyholders' benefits (including change in reserves) | 72,131 | 64,890 | 157,166 | 127,296 | |||||||||||||
Net reinsurance expense allowances, net of capitalization and amortization | -64,615 | -50,090 | -128,167 | -93,068 | |||||||||||||
Realized investment gains (losses) net: | |||||||||||||||||
Direct | -477,059 | 993,396 | -1,598,581 | 1,913,638 | |||||||||||||
Assumed | - | - | - | ||||||||||||||
Ceded | 508,727 | -1,033,021 | 1,715,780 | -1,906,549 | |||||||||||||
Realized investment gains (losses) net | $ | 31,668 | $ | -39,625 | $ | 117,199 | $ | 7,089 | |||||||||
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) | |||||||||||||||||
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 | 14-Mar | Purchased | Fixed Maturities | 13 | 13 | - | - | - | |||||||||
Debt Agreements [Text Block] | ' | ||||||||||||||||
Affiliate | Date Issued | Amount of Notes - June 30, 2014 | Amount of Notes - December 31, 2013 | Interest Rate | Date of Maturity | ||||||||||||
(in thousands) | |||||||||||||||||
Prudential Financial | 11/15/10 | $ | 66,000 | $ | 66,000 | 3.01% | 11/13/15 | ||||||||||
Prudential Financial | 6/20/11 | 100,000 | 150,000 | 2.17% - 3.17% | 6/2014 - 6/2016 | ||||||||||||
Prudential Financial | 12/15/11 | 159,000 | 159,000 | 2.99% - 3.61% | 12/2014 - 12/2016 | ||||||||||||
Prudential Financial | 12/16/11 | 33,000 | 33,000 | 2.99% - 3.61% | 12/2014 - 12/2016 | ||||||||||||
Prudential Financial | 12/20/12 | 88,000 | 88,000 | 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 | 237,000 | 316,000 | 2.06% - 3.02% | 6/2014 - 6/2017 | ||||||||||||
Washington Street Investment | 12/17/12 | 264,000 | 264,000 | 1.12% - 1.87% | 12/2014 - 12/2017 | ||||||||||||
Washington Street Investment | 12/17/12 | 52,000 | 52,000 | 1.21% - 1.87% | 12/2014 - 12/2017 | ||||||||||||
Prudential Financial | 11/15/13 | 9,000 | 9,000 | 2.24% | 12/15/18 | ||||||||||||
Prudential Financial | 11/15/13 | 23,000 | 23,000 | 3.19% | 12/15/20 | ||||||||||||
Prudential Insurance | 12/6/13 | 120,000 | 120,000 | 2.60% | 12/15/18 | ||||||||||||
Prudential Insurance | 12/6/13 | 130,000 | 130,000 | 4.39% | 12/15/23 | ||||||||||||
Prudential Insurance | 12/6/13 | 250,000 | 250,000 | 3.64% | 12/15/20 | ||||||||||||
Pru Funding, LLC | 12/31/13 | - | 2,900 | 0.23% | 1/7/14 | ||||||||||||
Pru Funding, LLC | 6/26/14 | 60,000 | - | 0.24% | 7/3/14 | ||||||||||||
Total Loans Payable to Affiliates | $ | 1,795,000 | $ | 1,866,900 |
Business_and_Basis_of_Presenta2
Business and Basis of Presentation (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Business and Basis of Presentation [Abstract] | ' |
Hartford Cash Consideration | $615,000,000 |
Hartford Amount In Force | 141,000,000,000 |
Guaranteed Universal Life Account Values | 4,000,000,000 |
GUL Amount In Force | $30,000,000,000 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities | ($200) | ($200) | $700,000 | $600,000 | ' |
Net investment income | 103,220,000 | 105,032,000 | 201,697,000 | 207,540,000 | ' |
Gross unrealized losses related to high or highest quality securities | 33,000,000 | ' | 33,000,000 | ' | 136,000,000 |
Gross unrealized losses related to other than high or highest quality securities | 1,000,000 | ' | 1,000,000 | ' | 4,000,000 |
Twelve months or more Unrealized Losses | 31,581,000 | ' | 31,581,000 | ' | 20,457,000 |
Fixed Maturities [Member] | ' | ' | ' | ' | ' |
Gross unrealized losses representing declines in value of greater than 20% | 0 | ' | 0 | ' | 0 |
Gross unrealized losses in a continuous loss position for less than six months | 0 | ' | 0 | ' | 0 |
Equity Securities [Member] | ' | ' | ' | ' | ' |
Gross unrealized losses representing declines in value of greater than 20% | 0 | ' | 0 | ' | 0 |
Gross unrealized losses in a continuous loss position for less than six months | $0 | ' | $0 | ' | $0 |
Investments_Fixed_Maturities_a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
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 | $5,739,004 | $5,538,933 | ||
Available For Sale Equity Securities Amortized Cost Basis | 35,602 | 567 | ||
Fair Value, Fixed maturities, available for sale | 6,047,495 | 5,651,401 | ||
Equity securities, available for sale | 37,418 | 771 | ||
Net unrealized gains on impaired securities relating to changes in value of securities subsequent to the impairment measurement date | 12 | 14 | ||
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 | 95,709 | 93,525 | ||
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 | 127,223 | 78,951 | ||
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 | 31,735 | 23,997 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 4,814,182 | 4,541,369 | ||
Asset-backed Securities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fair Value, Fixed maturities, available for sale | 263,307 | 222,091 | ||
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 | 560,635 | 522,008 | ||
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 | 154,704 | 169,460 | ||
Fixed Maturities [Member] | ' | ' | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ' | ' | ||
Fixed maturities, available for sale, amortized cost | 5,739,004 | 5,538,933 | ||
Gross Unrealized Gains | 342,509 | 252,087 | ||
Gross Unrealized Losses | 34,018 | 139,619 | ||
Fair Value, Fixed maturities, available for sale | 6,047,495 | 5,651,401 | ||
Other-than-temporary impairments in AOCI | 5,486 | [1] | 9,008 | [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 | 88,742 | 89,497 | ||
Gross Unrealized Gains | 7,313 | 5,910 | ||
Gross Unrealized Losses | 346 | 1,882 | ||
Fair Value, Fixed maturities, available for sale | 95,709 | 93,525 | ||
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 | 120,828 | 83,807 | ||
Gross Unrealized Gains | 7,101 | 1,518 | ||
Gross Unrealized Losses | 706 | 6,374 | ||
Fair Value, Fixed maturities, available for sale | 127,223 | 78,951 | ||
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 | 28,703 | 20,357 | ||
Gross Unrealized Gains | 3,170 | 3,640 | ||
Gross Unrealized Losses | 138 | 0 | ||
Fair Value, Fixed maturities, available for sale | 31,735 | 23,997 | ||
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 | 831,661 | 796,747 | ||
Gross Unrealized Gains | 60,332 | 32,303 | ||
Gross Unrealized Losses | 5,802 | 29,281 | ||
Fair Value, Fixed maturities, available for sale | 886,191 | 799,769 | ||
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 | 841 | 681 | ||
Gross Unrealized Gains | 156 | 126 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value, Fixed maturities, available for sale | 997 | 807 | ||
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 | 3,727,389 | 3,661,419 | ||
Gross Unrealized Gains | 222,324 | 168,717 | ||
Gross Unrealized Losses | 22,719 | 89,343 | ||
Fair Value, Fixed maturities, available for sale | 3,926,994 | 3,740,793 | ||
Other-than-temporary impairments in AOCI | 249 | [1] | 252 | [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 | 254,286 | [3] | 216,081 | [3] |
Gross Unrealized Gains | 9,526 | [3] | 8,687 | [3] |
Gross Unrealized Losses | 505 | [3] | 2,677 | [3] |
Fair Value, Fixed maturities, available for sale | 263,307 | [3] | 222,091 | [3] |
Other-than-temporary impairments in AOCI | 4,305 | [1],[3] | 7,783 | [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 | 543,416 | 510,255 | ||
Gross Unrealized Gains | 20,798 | 20,316 | ||
Gross Unrealized Losses | 3,579 | 8,563 | ||
Fair Value, Fixed maturities, available for sale | 560,635 | 522,008 | ||
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 | 143,138 | [4] | 160,089 | [4] |
Gross Unrealized Gains | 11,789 | [4] | 10,870 | [4] |
Gross Unrealized Losses | 223 | [4] | 1,499 | [4] |
Fair Value, Fixed maturities, available for sale | 154,704 | [4] | 169,460 | [4] |
Other-than-temporary impairments in AOCI | 932 | [1],[4] | 973 | [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 | 35,602 | 567 | ||
Gross Unrealized Gains | 1,817 | 207 | ||
Gross Unrealized Losses | 1 | 3 | ||
Equity securities, available for sale | 37,418 | 771 | ||
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 | 66 | 131 | ||
Gross Unrealized Gains | 57 | 29 | ||
Gross Unrealized Losses | 0 | 0 | ||
Equity securities, available for sale | 123 | 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 | 4 | ||
Gross Unrealized Gains | 16 | 12 | ||
Gross Unrealized Losses | 0 | 0 | ||
Equity securities, available for sale | 20 | 16 | ||
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 | 340 | 341 | ||
Gross Unrealized Gains | 206 | 163 | ||
Gross Unrealized Losses | 0 | 0 | ||
Equity securities, available for sale | 546 | 504 | ||
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 | 35,192 | 91 | ||
Gross Unrealized Gains | 1,538 | 3 | ||
Gross Unrealized Losses | 1 | 3 | ||
Equity securities, available for sale | $36,729 | $91 | ||
[1] | Represents the amount of other-than-temporary impairment losses in bAOCI,b which were not included in earnings. Amount excludes $12 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 bAOCI,b 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 | |||
[3] | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. | |||
[4] | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Investments_Amortized_Cost_and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available for Sale Amortized Cost | ' | ' |
Due in one year or less | $301,388 | ' |
Due after one year through five years | 1,182,415 | ' |
Due after five years through ten years | 1,380,537 | ' |
Due after ten years | 1,933,824 | ' |
Total | 5,739,004 | 5,538,933 |
Available for Sale Securities Fair Value | ' | ' |
Due in one year or less | 308,535 | ' |
Due after one year through five years | 1,287,729 | ' |
Due after five years through ten years | 1,437,151 | ' |
Due after ten years | 2,035,434 | ' |
Total | 6,047,495 | 5,651,401 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 143,138 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | 154,704 | ' |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 543,416 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | 560,635 | ' |
Asset-backed Securities [Member] | ' | ' |
Available for Sale Amortized Cost | ' | ' |
Debt Maturities, without single maturity date | 254,286 | ' |
Available for Sale Securities Fair Value | ' | ' |
Debt Maturities, without Single Maturity Date | $263,307 | ' |
Investments_Fixed_Maturities_P
Investments (Fixed Maturities Proceeds)(Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Fixed maturity and equity security impairments | ' | ' | ' | ' | |||
Writedowns for impairments on equity securities | ' | ' | ' | ($56) | |||
Equity Securities [Member] | ' | ' | ' | ' | |||
Available For Sale | ' | ' | ' | ' | |||
Proceeds from sales | 5,210 | 0 | 5,210 | 2,352 | |||
Proceeds from maturities/repayments | 0 | 3 | 0 | 3 | |||
Gross investment gains from sales | 145 | 0 | 145 | 854 | |||
Fixed maturity and equity security impairments | ' | ' | ' | ' | |||
Writedowns for impairments on equity securities | 0 | 0 | 0 | ' | |||
Fixed Maturities, Available For Sale [Member] | ' | ' | ' | ' | |||
Available For Sale | ' | ' | ' | ' | |||
Proceeds from sales | 78,591 | 197,132 | 118,477 | 242,318 | |||
Proceeds from maturities/repayments | 165,763 | 258,923 | 347,782 | 433,247 | |||
Gross investment gains from sales | 5,147 | 5,766 | 6,826 | 39,154 | |||
Available-for-sale Securities, Gross Realized Losses | 517 | 1,103 | 924 | 2,834 | |||
Fixed maturity and equity security impairments | ' | ' | ' | ' | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | ($127) | [1] | ($212) | [1] | ($127) | [1] | ($1,609) |
[1] | Excludes the portion of other-than-temporary impairments recorded in bOther comprehensive income (loss),b 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 $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Credit losses recognized in earnings on fixed maturity securities | ' | ' | ' | ' |
Credit Losses Recognized In Earnings, BOP | $10,173 | $15,716 | $14,661 | $27,702 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | -1,449 | -1,287 | -5,918 | -13,674 |
Credit loss impairment recognized in the current period on securities not previously impaired | 0 | 0 | 0 | 14 |
Additional credit loss impairments recognized in the current period on securities previously impaired | 0 | 212 | 0 | 709 |
Increases due to the passage of time on previously recorded credit losses | 101 | 219 | 202 | 441 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | -278 | -20 | -398 | -352 |
Credit Losses Recognized In Earnings, EOP | $8,547 | $14,840 | $8,547 | $14,840 |
Investments_Trading_Account_As
Investments (Trading Account Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | $23,640 | $15,506 |
Fair Value | 27,738 | 18,892 |
Corporate Debt Securities [Member] | ' | ' |
Fair Value | 24,288 | 14,183 |
Asset-backed Securities [Member] | ' | ' |
Fair Value | 1,987 | 1,978 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Fair Value | 0 | 0 |
Fixed Maturities [Member] | ' | ' |
Amortized Cost | 22,953 | 14,118 |
Fair Value | 26,276 | 16,162 |
Equity Securities [Member] | ' | ' |
Amortized Cost | 687 | 1,388 |
Fair Value | $1,462 | $2,730 |
Investments_Commercial_Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Commercial mortgage loans | $1,479,827 | $1,425,541 |
Commercial mortgage loans, Percentage | 93.40% | 93.00% |
Valuation allowance | -6,625 | -8,904 |
Total net commercial and agricultural mortgage loans by property type | 1,577,207 | 1,523,755 |
Total commercial mortgage and other loans | 1,585,617 | 1,532,165 |
Total Commercial Mortgage By Propterty Type | 1,583,832 | 1,532,659 |
Other Loans and Leases Receivable | 8,410 | 8,410 |
Uncollateralized Loans [Member] | ' | ' |
Other Loans and Leases Receivable | 8,410 | 8,410 |
Office buildings [Member] | ' | ' |
Commercial mortgage loans | 208,330 | 195,499 |
Commercial mortgage loans, Percentage | 13.20% | 12.80% |
Retail stores [Member] | ' | ' |
Commercial mortgage loans | 452,212 | 467,059 |
Commercial mortgage loans, Percentage | 28.60% | 30.50% |
Apartment Complexes [Member] | ' | ' |
Commercial mortgage loans | 355,811 | 298,365 |
Commercial mortgage loans, Percentage | 22.50% | 19.50% |
Industrial Buildings [Member] | ' | ' |
Commercial mortgage loans | 265,393 | 272,239 |
Commercial mortgage loans, Percentage | 16.80% | 17.70% |
Agricultural Properties [Member] | ' | ' |
Commercial mortgage loans | 104,005 | 107,118 |
Commercial mortgage loans, Percentage | 6.60% | 7.00% |
Hospitality [Member] | ' | ' |
Commercial mortgage loans | 89,096 | 90,085 |
Commercial mortgage loans, Percentage | 5.50% | 5.90% |
Other [Member] | ' | ' |
Commercial mortgage loans | $108,985 | $102,294 |
Commercial mortgage loans, Percentage | 6.80% | 6.60% |
California [Member] | ' | ' |
Commercial mortgage loans, Percentage | 21.00% | ' |
New Jersey [Member] | ' | ' |
Commercial mortgage loans, Percentage | 11.00% | ' |
Texas [Member] | ' | ' |
Commercial mortgage loans, Percentage | 12.00% | ' |
Investments_Allowance_for_Loss
Investments (Allowance for Losses) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ' | ' | ||
Allowance for Losses, Beginning Balance | $8,904 | [1] | $6,028 | |
Addition To / (Release of) Allowance For Losses | -639 | -2,876 | ||
Charge Off Net Of Recoveries | -2,918 | 0 | ||
Allowance for Losses, Ending Balance | $6,625 | [1] | $8,904 | [1] |
[1] | Agricultural loans represent $0.3 million of the ending allowance at both June 30, 2014 and December 31, 2013. |
Investments_Allowance_for_Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Allowance for Credit Losses: | ' | ' | ||
Ending Balance: Individually evaluated for impairment | ($805) | [1] | ($3,084) | [1] |
Ending Balance: collectively evaluated for impairment | 5,820 | [2] | 5,820 | [2] |
Total | 6,625 | 8,904 | ||
Recorded Investment: | ' | ' | ||
Ending balance gross of reserves: individually evaluated for impairment | 15,695 | [1],[3] | 6,392 | [1],[3] |
Ending balance gross of reserves: collectively evaluated for impairment | 1,576,547 | [2],[3] | 1,534,677 | [2],[3] |
Total | 1,592,242 | [3] | 1,541,069 | [3] |
Agricultural Property Loans [Member] | ' | ' | ||
Allowance for Credit Losses: | ' | ' | ||
Ending Balance: collectively evaluated for impairment | 300 | 300 | ||
Uncollateralized Loans [Member] | ' | ' | ||
Recorded Investment: | ' | ' | ||
Ending balance gross of reserves: collectively evaluated for impairment | $8,000 | $8,000 | ||
[1] | There were no agricultural or uncollateralized loans individually evaluated for impairments at June 30, 2014 and December 31, 2013. | |||
[2] | Agricultural loans collectively evaluated for impairment had a recorded investment of $104 million and $107 million at June 30, 2014 and December 31, 2013, respectively, and a related allowance of $0.3 million for both periods. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both June 30, 2014 and December 31, 2013 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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Recorded Investment | $15.70 | $6.40 |
Unpaid Principal Balance Principal Balance | 15.7 | 6.4 |
Related Allowance | 0.8 | 3.1 |
Interest Income Recognized | 0 | 0 |
Class Of Financing Receivable1 [Member] | Agricultural Loan [Member] | ' | ' |
Recorded Investment | $104 | $107 |
Investments_Credit_Quality_Ind
Investments (Credit Quality Indicators) (Details) (Commercial Mortgage and Agricultural Loans [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Service Coverage Ratio, Greater than One Point Two X [Member] | Loan To Value Ratio Less Than Fifty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | $932,821 | $894,897 |
Debt Service Coverage Ratio, Greater than One Point Two X [Member] | Loan-to-Value Ratio, Sixty Percent To Sixty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 374,216 | 314,325 |
Debt Service Coverage Ratio, Greater than One Point Two X [Member] | Loan-to-Value Ratio, Seventy Percent To Seventy Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 131,861 | 183,853 |
Debt Service Coverage Ratio, Greater than One Point Two X [Member] | Loan To Value Ratio, Greater Than Eighty Percent [Member] | ' | ' |
Financing Receivable | 30,101 | 24,000 |
Debt Service Coverage Ratio, Greater than One Point Two X [Member] | Loan To Value Ratio Total [Member] | ' | ' |
Financing Receivable | 1,468,999 | 1,417,075 |
Debt Service Coverage Ratio, One Point Zero X to Less Than One Point Two X [Member] | Loan To Value Ratio Less Than Fifty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 13,362 | 11,196 |
Debt Service Coverage Ratio, One Point Zero X to Less Than One Point Two X [Member] | Loan-to-Value Ratio, Sixty Percent To Sixty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 12,442 | 28,420 |
Debt Service Coverage Ratio, One Point Zero X to Less Than One Point Two X [Member] | Loan-to-Value Ratio, Seventy Percent To Seventy Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 14,817 | 9,295 |
Debt Service Coverage Ratio, One Point Zero X to Less Than One Point Two X [Member] | Loan To Value Ratio, Greater Than Eighty Percent [Member] | ' | ' |
Financing Receivable | 20,927 | 5,310 |
Debt Service Coverage Ratio, One Point Zero X to Less Than One Point Two X [Member] | Loan To Value Ratio Total [Member] | ' | ' |
Financing Receivable | 61,548 | 54,221 |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan To Value Ratio Less Than Fifty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 10,370 | 9,323 |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan-to-Value Ratio, Sixty Percent To Sixty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 27,444 | 4,327 |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan-to-Value Ratio, Seventy Percent To Seventy Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 13,993 | 25,626 |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan To Value Ratio, Greater Than Eighty Percent [Member] | ' | ' |
Financing Receivable | 1,478 | 22,087 |
Debt Service Coverage Ratio, Less Than One Point Zero X [Member] | Loan To Value Ratio Total [Member] | ' | ' |
Financing Receivable | 53,285 | 61,363 |
Debt Service Coverage Ratio Total [Member] | Loan To Value Ratio Less Than Fifty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 956,553 | 915,416 |
Debt Service Coverage Ratio Total [Member] | Loan-to-Value Ratio, Sixty Percent To Sixty Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 414,102 | 347,072 |
Debt Service Coverage Ratio Total [Member] | Loan-to-Value Ratio, Seventy Percent To Seventy Nine Point Nine Nine Percent [Member] | ' | ' |
Financing Receivable | 160,671 | 218,774 |
Debt Service Coverage Ratio Total [Member] | Loan To Value Ratio, Greater Than Eighty Percent [Member] | ' | ' |
Financing Receivable | 52,506 | 51,397 |
Debt Service Coverage Ratio Total [Member] | Loan To Value Ratio Total [Member] | ' | ' |
Financing Receivable | $1,583,832 | $1,532,659 |
Investments_Analysis_of_Past_D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Commercial Mortgage Loan [Member] | ' | ' |
Current | $1,600,000,000 | $1,500,000,000 |
Commercial Loan on Other [Member] | ' | ' |
Total Past Due | $0 | $6,400,000 |
Investments_Commercial_Mortgag1
Investments (Commercial Mortgage and Other Loans on Nonaccrual Status) (Details) (Commercial Loan on Hospitality [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | $0 | $6.40 |
Investments_Other_Long_Term_In
Investments (Other Long Term Investments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Long-Term Investments | $250,323 | $226,704 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | $108,113 | $109,957 | $211,224 | $217,387 |
Less: investment expenses | -4,893 | -4,925 | -9,527 | -9,847 |
Net Investment Income, Total | 103,220 | 105,032 | 201,697 | 207,540 |
Available For Sale Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 66,293 | 71,368 | 132,028 | 139,877 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 1 | 0 | 1 | 1 |
Trading Account Assets [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 201 | 176 | 397 | 309 |
Commercial Mortgage Loans [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 20,891 | 21,219 | 40,721 | 41,923 |
Policy Loans [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 15,072 | 14,468 | 29,798 | 28,605 |
Short-term Investments [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 103 | 172 | 260 | 416 |
Other Long-term Investments [Member] | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | $5,552 | $2,554 | $8,019 | $6,256 |
Investments_Realized_Investmen
Investments (Realized Investment Gains Losses Net) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | $31,668 | ($39,625) | $117,199 | $7,089 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | 4,503 | 4,451 | 5,775 | 34,711 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | 145 | 0 | 145 | 798 |
Commercial Mortgage Loans [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | -431 | 242 | -304 | 690 |
Equity Method Investments [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | 0 | -6 | 0 | -57 |
Derivative [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | 27,443 | -44,315 | 111,565 | -29,063 |
Other [Member] | ' | ' | ' | ' |
Schedule Of Gain Loss On Investments [Line Items] | ' | ' | ' | ' |
Realized investment gains (losses), net | $8 | $3 | $18 | $10 |
Investments_Net_Unrealized_Inv
Investments (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | Accumulated Net Unrealized Investment Gain (Loss) Pre Tax [Member] | Deferred Costs Policy Acquisition And Sales Inducements And Valuation Of Business Acquired, Pre Tax [Member] | Policyholders Account Balances Pre Tax [Member] | Deferred Income Tax Liability Benefit [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Securities Related to Other Than Temporary Impairments [Member] | Securities Related to Other Than Temporary Impairments [Member] | Securities Related to Other Than Temporary Impairments [Member] | Securities Related to Other Than Temporary Impairments [Member] | Securities Related to Other Than Temporary Impairments [Member] | ||||
Balance | $163,395 | $56,646 | $4,498 | ($3,324) | $1,819 | [1] | ($1,079) | $1,914 |
Net investment gains (losses) on investments arising during the period | ' | ' | 1,410 | 0 | 0 | [1] | -494 | 916 |
Reclassification adjustment for (gains) losses included in net income | ' | ' | 167 | 0 | 0 | [1] | -58 | 109 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | ' | ' | 0 | 454 | 0 | [1] | -159 | 295 |
Impact of net unrealized investment (gains) losses on policyholders' account balance | ' | ' | 0 | 0 | -223 | [1] | 78 | -145 |
Balance | $163,395 | $56,646 | $6,075 | ($2,870) | $1,596 | [1] | ($1,712) | $3,089 |
[1] | _____________ Balances are net of reinsurance. |
Investments_All_Other_Net_Unre
Investments (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||
In Thousands, unless otherwise specified | Other Net Unrealized Investment Gains and Losses [Member] | Other Net Unrealized Investment Gains and Losses [Member] | Other Net Unrealized Investment Gains and Losses [Member] | Other Net Unrealized Investment Gains and Losses [Member] | Other Net Unrealized Investment Gains and Losses [Member] | ||||
Accumulated Net Unrealized Investment Gain (Loss) Pre Tax [Member] | Deferred Costs Policy Acquisition And Sales Inducements And Valuation Of Business Acquired, Pre Tax [Member] | Policyholders Account Balances Pre Tax [Member] | Deferred Income Tax Liability Benefit [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Balance | $163,395 | $56,646 | $123,153 | [1] | ($43,030) | $3,293 | [2] | ($29,087) | $54,329 |
Net investment gains (losses) on investments arising during the period | ' | ' | 196,175 | [1] | 0 | 0 | [2] | -68,661 | 127,514 |
Reclassification adjustment for (gains) losses included in net income | ' | ' | -6,087 | [1] | 0 | 0 | [2] | 2,130 | -3,957 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs | ' | ' | 0 | [1] | -65,487 | 0 | [2] | 22,920 | -42,567 |
Impact of net unrealized investment (gains) losses on policyholders' account balance | ' | ' | 0 | [1] | 0 | 37,855 | [2] | -13,249 | 24,606 |
Balance | $163,395 | $56,646 | $313,241 | [1] | ($108,517) | $41,148 | [2] | ($85,947) | $159,925 |
[1] | _____________ Includes cash flow hedges. See Note 5 for information on cash flow hedges. | ||||||||
[2] | _____________ Balances are net of reinsurance. |
Investments_Net_Unrealized_Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Investment Type Categorization [Domain] | ' | ' | ||
Net unrealized gains (losses) on investments | $319,316 | $127,651 | ||
Investment Type Categorization [Domain] | Other Long-term Investments [Member] | ' | ' | ||
Net unrealized gains (losses) on investments | 16,103 | 19,680 | ||
Investment Type Categorization [Domain] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ' | ' | ||
Net unrealized gains (losses) on investments | 302,415 | 107,970 | ||
Investment Type Categorization [Domain] | Available-for-sale Securities [Member] | Equity Securities [Member] | ' | ' | ||
Net unrealized gains (losses) on investments | 1,816 | 204 | ||
Securities Related to Other Than Temporary Impairments [Member] | Available-for-sale Securities [Member] | Fixed Maturities [Member] | ' | ' | ||
Net unrealized gains (losses) on investments | 6,075 | 4,498 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Investment Type Categorization [Domain] | ' | ' | ||
Net unrealized gains (losses) on investments | ($7,093) | [1] | ($4,701) | [1] |
[1] | See Note 5 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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | $221,818 | $1,923,320 |
Less than 12 months Gross Unrealized Losses | 2,437 | 119,162 |
Twelve months or more Fair Value | 861,919 | 134,839 |
Twelve months or more Gross Unrealized Losses | 31,581 | 20,457 |
Total Fair Value | 1,083,737 | 2,058,159 |
Total Gross Unrealized Losses | 34,018 | 139,619 |
US Treasury And Government [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 996 | 24,123 |
Less than 12 months Gross Unrealized Losses | 1 | 1,882 |
Twelve months or more Fair Value | 17,107 | 0 |
Twelve months or more Gross Unrealized Losses | 345 | 0 |
Total Fair Value | 18,103 | 24,123 |
Total Gross Unrealized Losses | 346 | 1,882 |
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 | 0 | 51,216 |
Less than 12 months Gross Unrealized Losses | 0 | 5,904 |
Twelve months or more Fair Value | 22,874 | 2,496 |
Twelve months or more Gross Unrealized Losses | 706 | 470 |
Total Fair Value | 22,874 | 53,712 |
Total Gross Unrealized Losses | 706 | 6,374 |
Foreign Government Debt Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 10,556 | 0 |
Less than 12 months Gross Unrealized Losses | 138 | 0 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 10,556 | 0 |
Total Gross Unrealized Losses | 138 | 0 |
Corporate Debt Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 176,677 | 1,596,468 |
Less than 12 months Gross Unrealized Losses | 2,015 | 101,780 |
Twelve months or more Fair Value | 652,027 | 97,731 |
Twelve months or more Gross Unrealized Losses | 26,506 | 16,844 |
Total Fair Value | 828,704 | 1,694,199 |
Total Gross Unrealized Losses | 28,521 | 118,624 |
Asset-backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 29,549 | 93,021 |
Less than 12 months Gross Unrealized Losses | 158 | 1,418 |
Twelve months or more Fair Value | 44,201 | 11,782 |
Twelve months or more Gross Unrealized Losses | 347 | 1,259 |
Total Fair Value | 73,750 | 104,803 |
Total Gross Unrealized Losses | 505 | 2,677 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 4,040 | 116,371 |
Less than 12 months Gross Unrealized Losses | 125 | 6,706 |
Twelve months or more Fair Value | 94,976 | 19,605 |
Twelve months or more Gross Unrealized Losses | 3,454 | 1,857 |
Total Fair Value | 99,016 | 135,976 |
Total Gross Unrealized Losses | 3,579 | 8,563 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ' | ' |
Less than twelve months Fair Value | 0 | 42,121 |
Less than 12 months Gross Unrealized Losses | 0 | 1,472 |
Twelve months or more Fair Value | 30,734 | 3,225 |
Twelve months or more Gross Unrealized Losses | 223 | 27 |
Total Fair Value | 30,734 | 45,346 |
Total Gross Unrealized Losses | $223 | $1,499 |
Investments_Fair_Value_and_Los1
Investments (Fair Value and Losses by Length of Time in a Continuous Unrealized Loss Position) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Duration Of Unrealized Losses On Equity Securities [Line Items] | ' | ' |
Twelve months or more Gross Unrealized Losses | $32,000 | $20,000 |
Equity Securities [Member] | ' | ' |
Duration Of Unrealized Losses On Equity Securities [Line Items] | ' | ' |
Less than twelve months Fair Value | 1 | 44 |
Less than twelve months Gross Unrealized Losses | 0 | 3 |
Twelve months or more Fair Value | 16 | 0 |
Twelve months or more Gross Unrealized Losses | 1 | 0 |
Total Fair Value | 17 | 44 |
Total Gross Unrealized Losses | $1 | $3 |
Investments_Balance_of_and_Cha
Investments (Balance of and Changes in AOCI Components) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
Accumulated other comprehensive income | $163,395,000 | $163,395,000 | ' | $56,646,000 | ' | |||||
AccumulatedTranslationAdjustmentMember | ' | ' | ' | ' | ' | |||||
Accumulated other comprehensive income | 380,000 | 380,000 | 168,000 | 403,000 | 258,000 | |||||
Change in Other Comprehensive Income | ' | -36,000 | -138,000 | ' | ' | |||||
Amount Reclassified from AOCI | ' | 0 | 0 | ' | ' | |||||
Income Tax Benefit Expense | ' | 13,000 | 48,000 | ' | ' | |||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | |||||
Accumulated other comprehensive income | 163,015,000 | [1] | 163,015,000 | [1] | 87,787,000 | [1] | 56,243,000 | [1] | 267,204,000 | [1] |
Change in Other Comprehensive Income | ' | 170,185,000 | [1] | -240,516,000 | [1] | ' | ' | |||
Amount Reclassified from AOCI | -4,648,000 | [2],[3] | -5,920,000 | [1],[2],[3] | -35,509,000 | [1] | ' | ' | ||
Income Tax Benefit Expense | ' | -57,493,000 | [1] | 96,608,000 | [1] | ' | ' | |||
Cash Flow Hedge Gain Loss To AOCI | ' | 7,000,000 | [1] | 6,000,000 | [1] | 5,000,000 | 0 | |||
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ' | |||||
Accumulated other comprehensive income | 163,395,000 | 163,395,000 | 87,954,000 | 56,646,000 | 267,461,000 | |||||
Change in Other Comprehensive Income | ' | 170,149,000 | -240,655,000 | ' | ' | |||||
Amount Reclassified from AOCI | -4,648,000 | [2],[3] | -5,920,000 | [2],[3] | -35,509,000 | ' | ' | |||
Income Tax Benefit Expense | ' | ($57,480,000) | $96,656,000 | ' | ' | |||||
[1] | Includes cash flow hedges of ($7) million and ($5) million as of June 30, 2014 and December 31, 2013, respectively and $6 million and $0 million as of June 30, 2013 and December 31, 2012, respectively | |||||||||
[2] | _____________ All amounts are shown before tax. | |||||||||
[3] | Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. |
Investments_Reclassifications_
Investments (Reclassifications of AOCI) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |||
OCI Unrealized Gain Loss On Cash Flow Hedges Net Of Tax | ' | ' | ' | |||
Amount Reclassified from AOCI | ($132) | [1],[2],[3] | $50 | [1],[2],[3] | ' | |
OCI Unrealized Gain Loss On Available For Sale Securities Arising During Period Net Of Tax | ' | ' | ' | |||
Amount Reclassified from AOCI | 4,780 | [1],[3],[4] | 5,870 | [1],[3],[4] | ' | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | |||
Amount Reclassified from AOCI | -4,648 | [1],[3] | -5,920 | [1],[3],[5] | -35,509 | [5] |
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | |||
Amount Reclassified from AOCI | ($4,648) | [1],[3] | ($5,920) | [1],[3] | ($35,509) | |
[1] | _____________ All amounts are shown before tax. | |||||
[2] | See Note 5 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 policyholdersb account balances. | |||||
[5] | Includes cash flow hedges of ($7) million and ($5) million as of June 30, 2014 and December 31, 2013, respectively and $6 million and $0 million as of June 30, 2013 and December 31, 2012, respectively |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs (Rollforward) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DeferredPolicyAcquisitionCostsDisclosures[Abstract] | ' | ' |
Balance, beginning of year | $5,126,728 | $5,034,299 |
Balance, end of year | $5,126,728 | $5,034,299 |
Policyholders_Liabilities_Futu
Policyholders Liabilities (Future Policy Benefits) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future Policy Benefits [Line Items] | ' | ' |
Total future policy benefits | $9,841,487 | $6,916,669 |
Policyholders_Liabilities_Poli
Policyholders Liabilities (Policyholders Account Balances) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Policyholders' account balances, funding agreement | $14,762,216 | $14,303,330 |
Certain_Nontraditional_LongDur
Certain Nontraditional Long-Duration Contracts (Changes in Deferred Sales Inducements, Reported as "Interest credited to policyholders' account balances") (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DeferredSalesInducementsAbstract | ' | ' |
Beginning Balance | $935,062 | $989,889 |
Ending Balance | $935,062 | $989,889 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' | ' |
Total income tax expense (benefit) on continuing operations | $50,634 | $114,416 | $118,038 | $222,250 |
Income Tax Effects Allocated Directly to Equity [Abstract] | ' | ' | ' | ' |
Other comprehensive income (loss) | $25,594 | ($83,977) | $57,480 | ($96,656) |
Income_Taxes_Reconciliation_To
Income Taxes (Reconciliation To Effective Rate) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
IncomeTaxExpenseBenefitContinuingOperationsIncomeTaxReconciliationAbstract | ' | ' | ' | ' |
Total income tax expense (benefit) on continuing operations | $50,634 | $114,416 | $118,038 | $222,250 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Separate Account Assets [Member] | Separate Account Assets [Member] | Separate Account Assets [Member] | Separate Account Assets [Member] | High Range [Member] | High Range [Member] | Low Range [Member] | Low Range [Member] | Weighted Average Rate [Member] | Weighted Average Rate [Member] | |||
Separate Account assets transferred from Level 2 to Level 1 | ' | ' | $0 | $0 | $1,900,000 | $0 | ' | ' | ' | ' | ' | ' |
Total commercial mortgage and other loans | 1,585,617,000 | 1,532,165,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Long-Term Investments | 250,323,000 | 226,704,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | 576,016,000 | 964,740,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative Gross Asset | 838,000,000 | 1,228,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative Gross Liability | 2,539,000,000 | 880,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative Cumulative Decrease | 1,701,000,000 | 348,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalization Rates | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 5.00% | 5.00% | 6.27% | 6.82% |
Discount Rates | ' | ' | ' | ' | ' | ' | 10.50% | 11.00% | 6.75% | 6.75% | 7.22% | 7.90% |
Separate Account Assets Invested In Real Estate | 82,300,000 | 81,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative With Fair Value | 400,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variation Margin | 1,200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Embedded Derivative Net | -1,701,000,000 | 348,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UPARC Embedded Derivative | $211,300,000 | $11,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
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 | $6,047,495 | $5,651,401 | ||
Trading account assets, at fair value | 27,738 | 18,892 | ||
Equity securities, available for sale | 37,418 | 771 | ||
Short-term investments | 109,546 | 16,002 | ||
Cash equivalents | 19,627 | 205,787 | ||
Other long-term investments | 2,235 | 1,596 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 187,356 | 174,882 | ||
Subtotal excluding separate account assets | 8,144,547 | 6,080,731 | ||
Separate account assets | 107,208,099 | 100,402,349 | ||
Total assets | 115,352,646 | 106,483,080 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Payables To Parent And Affiliates | 1,349 | 145,416 | ||
Other liabilities | ' | 388,268 | [2] | |
Total liabilities | 1,702,096 | 185,285 | ||
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 | 95,709 | 93,525 | ||
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 | 127,223 | 78,951 | ||
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 | 31,735 | 23,997 | ||
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 | 4,814,182 | 4,541,369 | ||
Trading account assets, at fair value | 24,288 | 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 | 263,307 | 222,091 | ||
Trading account assets, at fair value | 1,987 | 1,978 | ||
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 | 560,635 | 522,008 | ||
Trading account assets, at fair value | 0 | 0 | ||
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 | 154,704 | 169,460 | ||
Equity Securities [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Trading account assets, at fair value | 1,463 | 2,731 | ||
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 | 143 | 112 | ||
Short-term investments | 33,585 | 9,216 | ||
Cash equivalents | 12,627 | 5,962 | ||
Other long-term investments | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Receivables from parents and affiliates | 0 | 0 | ||
Subtotal excluding separate account assets | 46,355 | 15,290 | ||
Separate account assets | 918,593 | 973,192 | ||
Total assets | 964,948 | 988,482 | ||
Future policy benefits | 0 | [1] | 0 | [1] |
Payables To Parent And Affiliates | 0 | 0 | ||
Other liabilities | ' | 0 | [2] | |
Total liabilities | 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 | 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 | 5,959,219 | 5,552,174 | ||
Trading account assets, at fair value | 26,275 | 16,161 | ||
Equity securities, available for sale | 36,729 | 90 | ||
Short-term investments | 75,943 | 6,768 | ||
Cash equivalents | 7,000 | 199,825 | ||
Other long-term investments | 129,151 | 73,647 | ||
Reinsurance recoverable | 0 | 0 | ||
Receivables from parents and affiliates | 163,539 | 170,761 | ||
Subtotal excluding separate account assets | 6,397,856 | 6,019,426 | ||
Separate account assets | 106,003,695 | 99,149,315 | ||
Total assets | 112,401,551 | 105,168,741 | ||
Future policy benefits | 0 | [1] | 0 | [1] |
Payables To Parent And Affiliates | 131,327 | 218,467 | ||
Other liabilities | ' | 0 | [2] | |
Total liabilities | 131,327 | 218,467 | ||
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 | 95,709 | 93,525 | ||
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 | 127,223 | 78,951 | ||
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 | 31,735 | 23,997 | ||
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 | 4,792,085 | 4,523,076 | ||
Trading account assets, at fair value | 24,288 | 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 | 197,128 | 141,157 | ||
Trading account assets, at fair value | 1,987 | 1,978 | ||
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 | 560,635 | 522,008 | ||
Trading account assets, at fair value | 0 | 0 | ||
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 | 154,704 | 169,460 | ||
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 | 88,276 | 99,227 | ||
Trading account assets, at fair value | 1,463 | 2,731 | ||
Equity securities, available for sale | 546 | 569 | ||
Short-term investments | 18 | 18 | ||
Cash equivalents | 0 | 0 | ||
Other long-term investments | 1,805 | 1,168 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 23,817 | 4,121 | ||
Subtotal excluding separate account assets | 1,829,057 | 119,234 | ||
Separate account assets | 285,811 | 279,842 | ||
Total assets | 2,114,868 | 399,076 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Payables To Parent And Affiliates | 0 | 0 | ||
Other liabilities | ' | 388,268 | [2] | |
Total liabilities | 1,700,747 | 39,869 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Other long-term investments | 1,805 | 1,168 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 23,817 | 4,121 | ||
Subtotal excluding separate account assets | 1,829,057 | 119,234 | ||
Total assets | 2,114,868 | 399,076 | ||
Future policy benefits | 1,700,747 | -348,399 | ||
Total liabilities | 1,700,747 | 39,869 | ||
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 | 22,097 | 18,293 | ||
Trading account assets, at fair value | 0 | 0 | ||
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 | 66,179 | 80,934 | ||
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 | 1,463 | 2,731 | ||
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 | -128,721 | [3] | -73,219 | [3] |
Reinsurance recoverable | 0 | 0 | ||
Receivables from parents and affiliates | 0 | 0 | ||
Subtotal excluding separate account assets | -128,721 | [3] | -73,219 | [3] |
Separate account assets | 0 | 0 | ||
Total assets | -128,721 | [3] | -73,219 | [3] |
Future policy benefits | 0 | [1] | 0 | |
Payables To Parent And Affiliates | -129,978 | [3] | -73,051 | [3] |
Other liabilities | ' | 0 | ||
Total liabilities | -129,978 | [3] | -73,051 | [3] |
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 | 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] | As of June 30, 2014, the net embedded derivative liability position of $1,701 million includes $838 million of embedded derivatives in an asset position and $2,539 million of embedded derivatives in a liability position. As of 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. | |||
[2] | Reinsurance of variable annuity living benefit features that were classified as "Other Liabilities" at December 31, 2013 were reclassified to "Reinsurance Recoverables" at June 30, 2014 as they were in a net asset position. | |||
[3] | "Netting" amounts represent cash collateral of $1.2 million and $0.2 million as of June 30, 2014 and December 31, 2013, 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 $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||
Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Short-term Investments [Member] | Short-term Investments [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Commercial Mortgage Loans [Member] | Commercial Mortgage Loans [Member] | Commercial Mortgage Loans [Member] | Commercial Mortgage Loans [Member] | Other Long-term Investments [Member] | Other Long-term Investments [Member] | Other Long-term Investments [Member] | Other Long-term Investments [Member] | Receivables From Parents And Affiliates [Member] | Receivables From Parents And Affiliates [Member] | Receivables From Parents And Affiliates [Member] | Receivables From Parents And Affiliates [Member] | Trading Asset [Member] | Trading Asset [Member] | Trading Asset [Member] | Trading Asset [Member] | Separate Accounts Asset [Member] | Separate Accounts Asset [Member] | Separate Accounts Asset [Member] | Separate Accounts Asset [Member] | Future Policy Benefits [Member] | Future Policy Benefits [Member] | Future Policy Benefits [Member] | Future Policy Benefits [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Reinsurance Recoverable [Member] | Reinsurance Recoverable [Member] | Reinsurance Recoverable [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Reclassified Balance [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value, beginning of period | ' | $590 | $1,448 | $569 | $1,489 | $18 | $18 | $23,231 | $39,791 | $18,293 | $36,981 | $106,081 | $119,053 | $80,934 | $108,727 | $28,076 | $0 | $0 | $0 | $1,247 | $842 | $1,168 | $988 | $5,124 | $3,000 | $4,121 | $1,995 | $2,802 | $3,737 | $2,731 | $3,277 | $278,638 | [1] | $262,007 | [1] | $279,842 | [1] | $248,255 | [1],[2] | ($1,014,755) | ($575,595) | $348,399 | ($1,417,891) | $504,797 | [3] | $1,287,157 | [3] | $1,018,443 | ' | ($376,868) | [3] | ||||||||||||||||||||||||||||||||||||
Included In Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | ' | 0 | 0 | 0 | -56 | 0 | 0 | 258 | 84 | 256 | -696 | 113 | 0 | 113 | 0 | 0 | 0 | 0 | 0 | 91 | -9 | 91 | -232 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -284 | [1] | 10 | [1] | 1,985 | [1] | 758 | [1] | -525,399 | 1,085,244 | -1,732,681 | 2,061,810 | -1,008,441 | [3] | -1,915,881 | [3] | 548,605 | 1,800,973 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Asset management fees and other income | ' | 0 | 18 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | 11 | -5 | 88 | 0 | 0 | 0 | 0 | 36 | 222 | 107 | 682 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Interest credited to policyholders' account balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | 4,046 | [1] | 5,282 | [1] | 6,722 | [1] | 11,072 | [1] | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | ' | 20 | 0 | 41 | 33 | 0 | 0 | 48 | -856 | 385 | -940 | -28 | -155 | 107 | 164 | 0 | -3 | -2 | -3 | 0 | 0 | 0 | 0 | 3 | -5 | 41 | 2 | 0 | 0 | 0 | 0 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Net Investment Income | ' | 0 | 0 | 0 | 0 | 0 | 0 | 21 | 19 | 31 | 58 | 66 | 86 | 122 | 174 | 0 | 0 | 0 | 0 | 0 | 87 | 0 | 0 | 41 | -998 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Purchases | ' | 0 | 0 | 0 | 0 | 0 | 0 | 4,615 | 1,597 | 12,586 | 11,724 | 0 | 15,280 | 0 | 33,078 | 0 | 5,050 | 28,078 | 8,484 | 35 | 0 | 136 | 87 | 18,649 | 2,651 | 18,649 | 2,651 | 0 | 0 | 0 | 380 | 5,191 | [1] | 8,515 | [1] | 39,769 | [1] | 36,496 | [1] | 0 | 0 | 0 | 0 | 133,155 | [3] | 258,235 | [3] | 146,084 | 289,027 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Sales | ' | -64 | 0 | -64 | 0 | 0 | 0 | -3,800 | -3 | -5,191 | -2,323 | 0 | -1 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1,000 | 0 | -1,000 | 0 | 0 | 0 | 0 | -1,780 | [1] | -4,638 | [1] | -42,507 | [1] | ' | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | |||||||||||||||||||||||||||||||||||||
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,405 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||
Issuances | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | -160,593 | -143,338 | -316,465 | ' | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Issuances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 277,608 | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Settlements | ' | 0 | 0 | 0 | 0 | 0 | 0 | -1,033 | -15,736 | -1,836 | -19,908 | -30,305 | -4,388 | -33,442 | -12,267 | 0 | 0 | 0 | -3,434 | -12 | 0 | -12 | 0 | 0 | 0 | 0 | 0 | -1,375 | 0 | -1,375 | -380 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | 0 | 0 | 0 | 0 | [3] | 0 | [3] | 0 | 0 | [3] | ' | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | ' | ' | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 2,231 | [4] | 0 | [4] | 2,231 | [4] | 0 | [4] | 1,746 | [4] | 0 | [4] | 31,153 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [2] | 427 | [4] | 0 | [4] | 427 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 1,985 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [3],[4] | 0 | [3],[4] | 0 | [4] | 0 | [3],[4] | ' | ||
Transfers out of Level 3 | ' | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | -3,474 | [4] | -6,293 | [4] | -4,658 | [4] | -6,293 | [4] | -11,494 | [4] | 0 | [4] | -12,808 | [4] | 0 | [4] | -28,076 | [4] | 0 | [4] | -28,076 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | -979 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [1],[4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [3],[4] | 0 | [3],[4] | 0 | [4] | 0 | [3],[4] | ' | |
Fair Value, end of period | ' | 546 | 1,466 | 546 | 1,466 | 18 | 18 | 22,097 | 18,603 | 22,097 | 18,603 | 66,179 | 129,875 | 66,179 | 129,875 | 0 | 5,047 | 0 | 5,047 | 1,805 | 931 | 1,805 | 931 | 23,817 | 3,648 | 23,817 | 3,648 | 1,463 | 3,959 | 1,463 | 3,959 | 285,811 | [1] | 271,176 | [1] | 285,811 | [1] | 271,176 | [1] | -1,700,747 | 366,311 | -1,700,747 | 366,311 | -370,489 | [3] | -370,489 | [3] | 1,713,132 | [3] | 1,713,132 | [3] | -376,868 | [3] | ||||||||||||||||||||||||||||||||||
Fair Value, End of Period | ' | ' | ' | ' | ' | -18 | -18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Included In Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Realized investment gains (losses), net | ' | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | -101 | [2] | 0 | [2] | -101 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 91 | [2] | 0 | [2] | 91 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | -529,822 | [2] | 1,082,731 | [2] | -1,735,757 | [2] | 2,051,063 | [2] | -1,006,152 | [2],[3] | -1,906,147 | [2],[3] | 552,449 | [2] | 1,803,209 | [2],[3] | ' | |
Asset management fees and other income | ' | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 10 | [2] | 0 | [2] | 89 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 38 | [2] | 222 | [2] | 109 | [2] | 682 | [2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2],[3] | 0 | [2],[3] | 0 | [2] | 0 | [2],[3] | ' | |
Interest credited to policyholders' account balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | ' | ' | ' | ' | $4,046 | [1],[2] | $5,283 | [1],[2] | $6,722 | [1],[2] | $11,072 | [1],[2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2],[3] | $0 | [2],[3] | $0 | [2] | $0 | [2],[3] | ' | |||||||||||||||||||||||
[1] | (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 Companybs Unaudited Interim Consolidated Statement of Financial Position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | (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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | B Reinsurance of variable annuity living benefit features that were classified as "Other Liabilities" at 2013 and were reclassified to "Reinsurance Recoverables" at 2014 as they were in a net asset position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | (2) Transfers into or out of Level 3 are reported as the value as of the beginning of the quarter in which the transfer occurs. |
Fair_Value_of_Assets_and_Liabi5
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Policy loans | $1,108,653 | $1,086,772 | ||
Other Long-Term Investments | 250,323 | 226,704 | ||
Accrued investment income | 90,147 | 89,465 | ||
Liabilities: | ' | ' | ||
Cash collateral for loaned securities | 89,917 | 84,867 | ||
Securities sold under agreements to repurchase | 4,400 | 0 | ||
Short-term debt | 332,000 | 274,900 | ||
Long-term debt | 1,463,000 | 1,592,000 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Other Long-Term Investments | 0 | 0 | ||
Cash | 103,128 | 45,317 | ||
Accrued investment income | 0 | 0 | ||
Receivables From Parents And Affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total Assets Financial Instruments Not Carried At Fair Value | 103,128 | 45,317 | ||
Liabilities: | ' | ' | ||
Investment contracts- policyholders' account balances | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | ' | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Payables To Parent And Affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total Financial Instrument Liabilities Not Carried At Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Commercial mortgage and other loans | 8,175 | 7,827 | ||
Policy loans | 0 | 0 | ||
Other Long-Term Investments | 0 | 0 | ||
Cash | 22,772 | 56,139 | ||
Accrued investment income | 90,147 | 89,465 | ||
Receivables From Parents And Affiliates | 86,153 | 87,849 | ||
Other assets | 37,355 | 34,060 | ||
Total Assets Financial Instruments Not Carried At Fair Value | 244,602 | 275,340 | ||
Liabilities: | ' | ' | ||
Investment contracts- policyholders' account balances | 895,949 | 851,607 | ||
Cash collateral for loaned securities | 89,917 | 84,867 | ||
Securities sold under agreements to repurchase | 4,400 | ' | ||
Short-term debt | 335,273 | 275,268 | ||
Long-term debt | 1,511,447 | 1,644,827 | ||
Payables To Parent And Affiliates | 37,004 | 45,649 | ||
Other liabilities | 241,478 | 270,339 | ||
Total Financial Instrument Liabilities Not Carried At Fair Value | 3,115,468 | 3,172,557 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Commercial mortgage and other loans | 1,684,155 | 1,604,247 | ||
Policy loans | 1,108,653 | 1,086,772 | ||
Other Long-Term Investments | 6,569 | 4,751 | ||
Cash | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Receivables From Parents And Affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total Assets Financial Instruments Not Carried At Fair Value | 2,799,377 | 2,695,770 | ||
Liabilities: | ' | ' | ||
Investment contracts- policyholders' account balances | 40,334 | 40,451 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | ' | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Payables To Parent And Affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total Financial Instrument Liabilities Not Carried At Fair Value | 40,334 | 40,451 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' | ||
Assets: | ' | ' | ||
Commercial mortgage and other loans | 1,585,617 | [1] | 1,532,165 | [1] |
Policy loans | 1,108,653 | [1] | 1,086,772 | [1] |
Other Long-Term Investments | 5,616 | [1] | 4,268 | [1] |
Cash | 125,900 | [1] | 101,456 | [1] |
Accrued investment income | 90,147 | [1] | 89,465 | [1] |
Receivables From Parents And Affiliates | 85,894 | [1] | 87,481 | [1] |
Other assets | 37,355 | [1] | 34,060 | [1] |
Total Assets Financial Instruments Not Carried At Fair Value | 3,039,182 | [1] | 2,935,667 | [1] |
Liabilities: | ' | ' | ||
Investment contracts- policyholders' account balances | 944,688 | [1] | 901,860 | [1] |
Cash collateral for loaned securities | 89,917 | [1] | 84,867 | [1] |
Securities sold under agreements to repurchase | 4,400 | [1] | ' | |
Short-term debt | 332,000 | [1] | 274,900 | [1] |
Long-term debt | 1,463,000 | [1] | 1,592,000 | [1] |
Payables To Parent And Affiliates | 37,004 | [1] | 45,649 | [1] |
Other liabilities | 241,478 | [1] | 270,339 | [1] |
Total Financial Instrument Liabilities Not Carried At Fair Value | 3,112,487 | [1] | 3,169,615 | [1] |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Assets: | ' | ' | ||
Commercial mortgage and other loans | 1,692,330 | 1,612,074 | ||
Policy loans | 1,108,653 | 1,086,772 | ||
Other Long-Term Investments | 6,569 | 4,751 | ||
Cash | 125,900 | 101,456 | ||
Accrued investment income | 90,147 | 89,465 | ||
Receivables From Parents And Affiliates | 86,153 | 87,849 | ||
Other assets | 37,355 | 34,060 | ||
Total Assets Financial Instruments Not Carried At Fair Value | 3,147,107 | 3,016,427 | ||
Liabilities: | ' | ' | ||
Investment contracts- policyholders' account balances | 936,283 | 892,058 | ||
Cash collateral for loaned securities | 89,917 | 84,867 | ||
Securities sold under agreements to repurchase | 4,400 | ' | ||
Short-term debt | 335,273 | 275,268 | ||
Long-term debt | 1,511,447 | 1,644,827 | ||
Payables To Parent And Affiliates | 37,004 | 45,649 | ||
Other liabilities | 241,478 | 270,339 | ||
Total Financial Instrument Liabilities Not Carried At Fair Value | $3,155,802 | $3,213,008 | ||
[1] | Carrying values presented herein differ from those in the Companybs Unaudited Interim 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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Other long-term investments | $2,235 | $1,596 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 187,356 | 174,882 | ||
Subtotal excluding separate account assets | 8,144,547 | 6,080,731 | ||
Separate account assets | 107,208,099 | 100,402,349 | ||
Total assets | 115,352,646 | 106,483,080 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Total liabilities | 1,702,096 | 185,285 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Other long-term investments | 1,805 | 1,168 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 23,817 | 4,121 | ||
Subtotal excluding separate account assets | 1,829,057 | 119,234 | ||
Separate account assets | 285,811 | 279,842 | ||
Total assets | 2,114,868 | 399,076 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Other Liabilities | ' | 388,268 | ||
Total liabilities | 1,700,747 | 39,869 | ||
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 | 2,009 | 3,300 | ||
Other long-term investments | 1,805 | 1,168 | ||
Reinsurance recoverable | 1,713,132 | 11,400 | ||
Receivables from parents and affiliates | 23,817 | 4,121 | ||
Subtotal excluding separate account assets | 1,829,057 | 119,234 | ||
Total assets | 2,114,868 | 399,076 | ||
Future policy benefits | 1,700,747 | -348,399 | ||
Other Liabilities | ' | 388,268 | ||
Total liabilities | 1,700,747 | 39,869 | ||
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 | 285,811 | 279,842 | ||
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 | 546 | [2] | 569 | [2] |
Other long-term investments | 440 | [2] | 0 | [2] |
Reinsurance recoverable | 1,713,132 | [2] | 11,400 | [2] |
Receivables from parents and affiliates | 0 | [2] | 0 | [2] |
Subtotal excluding separate account assets | 1,731,337 | [2] | 27,442 | [2] |
Total assets | 1,813,649 | [2] | 109,237 | [2] |
Future policy benefits | 1,700,747 | [2] | -348,399 | [2] |
Other Liabilities | ' | 388,268 | [2] | |
Total liabilities | 1,700,747 | [2] | 39,869 | [2] |
Short-term investments | 18 | [2] | 18 | [2] |
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 | 82,312 | [2] | 81,795 | [2] |
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 | 1,463 | [3] | 2,731 | [3] |
Other long-term investments | 1,365 | [3] | 1,168 | [3] |
Reinsurance recoverable | 0 | [3] | 0 | [3] |
Receivables from parents and affiliates | 23,817 | [3] | 4,121 | [3] |
Subtotal excluding separate account assets | 97,720 | [3] | 91,792 | [3] |
Total assets | 301,219 | [3] | 289,839 | [3] |
Future policy benefits | 0 | [3] | 0 | [3] |
Other Liabilities | ' | 0 | [3] | |
Total liabilities | 0 | [3] | 0 | [3] |
Short-term investments | 0 | [3] | 0 | [3] |
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 | 203,499 | [3] | 198,047 | [3] |
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 | 22,097 | 18,293 | ||
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 | 16,939 | [2] | 15,100 | [2] |
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 | 5,158 | [3] | 3,193 | [3] |
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 | 66,179 | 80,934 | ||
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 | 262 | [2] | 355 | [2] |
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 | 65,917 | [3] | 80,579 | [3] |
Fair Value, Inputs, Level 3 [Member] | Short-term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ||
Short-term investments | $18 | $18 | ||
[1] | As of June 30, 2014, the net embedded derivative liability position of $1,701 million includes $838 million of embedded derivatives in an asset position and $2,539 million of embedded derivatives in a liability position. As of 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. | |||
[2] | (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. | |||
[3] | (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 $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 6,047,495 | 5,651,401 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 88,276 | 99,227 | ||
Reinsurance Recoverables Living Benefits | 1,501,856 | ' | ||
Other Liabilities | ' | 388,268 | ||
Future policy benefits | 1,700,747 | [1] | -348,399 | [1] |
Fair Value, Inputs, Level 3 [Member] | No Lapse Guarantee [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Reinsurance Recoverables No Lapse Guarantee | 211,276 | 11,400 | ||
Maximum [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 15.00% | 15.00% | ||
EBITDA | 6.2 | [2] | 7 | [2] |
Volatility Curve | 28.00% | 28.00% | ||
Liquidation Value | ' | 38.49% | ||
Lapse Rate | 11.00% | [3] | 11.00% | [3] |
NPR Spread | 1.03% | 1.09% | ||
Utilization Rate | 98.00% | [4] | 94.00% | [4] |
Withdrawal Rate | 100.00% | [5] | 100.00% | [5] |
Mortality Rate | 13.00% | [6] | 13.00% | [6] |
Maximum [Member] | No Lapse Guarantee [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Lapse Rate | 13.00% | [7] | ' | |
NPR Spread | 1.03% | ' | ||
Mortality Rate | 23.00% | [8] | ' | |
Premium Payment | 3.75 | [9] | ' | |
Minimum [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 9.78% | 8.28% | ||
EBITDA | 5 | [2] | 5 | [2] |
Volatility Curve | 14.00% | 15.00% | ||
Liquidation Value | ' | 11.61% | ||
Lapse Rate | 0.00% | [3] | 0.00% | [3] |
NPR Spread | 0.02% | 0.08% | ||
Utilization Rate | 70.00% | [4] | 70.00% | [4] |
Withdrawal Rate | 86.00% | [5] | 86.00% | [5] |
Mortality Rate | 0.00% | [6] | 0.00% | [6] |
Minimum [Member] | No Lapse Guarantee [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Lapse Rate | 0.00% | [7] | ' | |
NPR Spread | 0.02% | ' | ||
Mortality Rate | 0.00% | [8] | ' | |
Premium Payment | 1 | [9] | ' | |
Weighted Average[ Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Discount Rate | 10.28% | 10.61% | ||
EBITDA | 5.87 | [2] | 5.91 | [2] |
Liquidation Value | ' | 31.83% | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Fixed maturities, available for sale, at fair value | 16,939 | 15,100 | ||
Future Policy Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value Quantiative Information [Line Items] | ' | ' | ||
Future policy benefits | 1,700,747 | -348,399 | ||
[1] | As of June 30, 2014, the net embedded derivative liability position of $1,701 million includes $838 million of embedded derivatives in an asset position and $2,539 million of embedded derivatives in a liability position. As of 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. | |||
[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. For universal life, lapse rates vary based on funding level and other factors. Rates are set to zero when the no lapse guarantee is fully funded and the cash value is zero. 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. The NPR spread reflects the financial strength ratings of the Company and its affiliates as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. Universal life mortality rates are adjusted based on underwriting information. A mortality improvement assumption is also incorporated into the projection. | |||
[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] | 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. | |||
[5] | 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%. | |||
[6] | 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. | |||
[7] | For universal life, lapse rates vary based on funding level and other factors. Rates are set to zero when the no lapse guarantee is fully funded and the cash value is zero. | |||
[8] | Universal life mortality rates are adjusted based on underwriting information. A mortality improvement assumption is also incorporated into the projection. | |||
[9] | For universal life, premium payment assumptions vary by funding level. Some policies are assumed to pay the minimum premium required to maintain the no lapse guarantee. Other policies are assumed to pay a multiple of commissionable target premium levels (shown above and indicated as bXb). Policyholders are assumed to stop premium payments once the no lapse guarantee is fully funded. |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Derivative Instruments | ' | ' |
Maximum length of time hedged in cash flow hedge (in years) | '19 years | ' |
Notional of credit derivative | $0 | $0 |
Fair value of credit derivative liability | 0 | 0 |
Pruco Re FV Of Embedded Derivatives Related To Reinsurance Recoverables | 1,502 | -388 |
FV Of Embedded Derivatives Included In Future Policy Benefits | -1,701 | 348 |
CreditProtectionPurchasedNotional Amounts | 13 | 14 |
Credit Derivative Protection Purchased Fair Value | -1 | -1 |
UPARC Embedded Derivative | $211.30 | $11.40 |
Derivative_Instruments_Gross_N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Total Derivatives | $59,502,835 | [1] | $43,839,401 | [1] |
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 129,669 | [1] | 73,646 | [1] |
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 131,328 | [1] | 218,467 | [1] |
Designated as Hedging Instrument [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Qualifying Hedge Relationships | 270,355 | 249,601 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 6,292 | 6,304 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 14,275 | 11,583 | ||
Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 59,232,480 | 43,589,800 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 123,377 | 67,342 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 117,053 | 206,884 | ||
Interest Rate Contract [Member] | Interest Rate Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 2,334,400 | 2,434,400 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 94,244 | 47,475 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 96,407 | 185,222 | ||
Interest Rate Contract [Member] | Interest Rate Swaption Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 100,000 | 0 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 3,173 | 0 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 0 | 0 | ||
Foreign Exchange Contract [Member] | Foreign Exchange Forward Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 1,081 | 507 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 4 | 2 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 13 | 0 | ||
Foreign Exchange Contract [Member] | Currency Swap Member | Designated as Hedging Instrument [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Qualifying Hedge Relationships | 270,355 | 249,601 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 6,292 | 6,304 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 14,275 | 11,583 | ||
Credit Risk Contract [Member] | Credit Default Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 13,275 | 14,275 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 11 | 15 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 768 | 862 | ||
Cross Currency Interest Rate Contract [Member] | Currency Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 67,963 | 69,450 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 333 | 211 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 3,068 | 3,325 | ||
Equity Contract [Member] | Equity Options [Member] | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 56,309,359 | 40,739,168 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 25,612 | 19,639 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | 14,533 | 9,418 | ||
Equity Contract [Member] | Total Return Swap Member | Nondesignated [Member] | ' | ' | ||
NotionalAmountOfDerivativesAbstract | ' | ' | ||
Non-Qualifying Hedge Relationships | 406,402 | 332,000 | ||
Fair Value Asset | ' | ' | ||
Derivative Fair Value Of Derivative Asset | 0 | 0 | ||
Fair Value Liability | ' | ' | ||
Derivative Fair Value Of Derivative Liability | $2,264 | $8,057 | ||
[1] | Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a liability of $1,701 million and an asset of $348 million as of June 30, 2014 and December 31, 2013, respectively, included in bFuture policy benefits.b The reinsurance embedded derivatives was an asset of $1,713 million as of June 30, 2014, included in bReinsurance Recoverablesb and a liability of $388 million and an asset of $11 million, as of December 31, 2013, included in bOther Liabilitiesb and "Reinsurance Recoverables." |
Derivative_Instruments_Gross_N1
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Parenthetical) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Embedded Derivative Net | ($1,701) | $348 |
Gross Asset Amount [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
FV Of Embedded Derivatives Included In Reinsurance Recoverable | 1,713 | 11 |
Gross Liability Amount [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
FV Of Embedded Derivatives Included In Reinsurance Recoverable | ' | $388 |
Derivative_Instruments_Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | ' | ' | ($2,342) | ' | ||||
Net Realized Investments Gain Loss [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 27,443 | -44,315 | 111,565 | -29,063 | ||||
Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 264 | 240 | 517 | 468 | ||||
Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -347 | 39 | -404 | 94 | ||||
Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -2,500 | [1] | -489 | [1] | -2,392 | [1] | 5,619 | [1] |
Cash Flow Hedging [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Cash Flow Hedging [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 264 | 240 | 517 | 468 | ||||
Cash Flow Hedging [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -329 | 15 | -400 | 70 | ||||
Cash Flow Hedging [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -2,500 | [1] | -489 | [1] | -2,392 | [1] | 5,619 | [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 | 0 | 0 | ||||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 264 | 240 | 517 | 468 | ||||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -329 | 15 | -400 | 70 | ||||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -2,500 | [1] | -489 | [1] | -2,392 | [1] | 5,619 | [1] |
Nondesignated [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 27,443 | -44,315 | 111,565 | -29,063 | ||||
Nondesignated [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -18 | 24 | -4 | 24 | ||||
Nondesignated [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 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 | 70,929 | -85,427 | 162,506 | -119,795 | ||||
Nondesignated [Member] | Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 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 | -17 | -11 | -14 | 95 | ||||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Foreign Exchange Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 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 | -273 | -296 | 654 | 255 | ||||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -18 | 24 | -4 | 24 | ||||
Nondesignated [Member] | Cross Currency Interest Rate Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 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 | -116 | -149 | -158 | -670 | ||||
Nondesignated [Member] | Credit Risk Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Credit Risk Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Credit Risk Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Equity Contract [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -26,232 | -11,115 | -34,315 | -65,416 | ||||
Nondesignated [Member] | Equity Contract [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Equity Contract [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Equity Contract [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Nondesignated [Member] | Embedded Derivative [Member] | Net Realized Investments Gain Loss [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | -16,848 | 52,683 | -17,108 | 156,468 | ||||
Nondesignated [Member] | Embedded Derivative [Member] | Net Investment Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Embedded Derivative [Member] | Other Income [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | 0 | 0 | 0 | 0 | ||||
Nondesignated [Member] | Embedded Derivative [Member] | Accumulated Other Comprehensive Income (loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
DerivativeGainLossOnDerivativeNet | $0 | [1] | $0 | [1] | $0 | [1] | $0 | [1] |
[1] | Amounts deferred in bAccumulated other comprehensive income (loss).b |
Derivative_Instruments_Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Derivative Instruments | ' |
Beginning Balance | ($4,701) |
Net deferred losses on cash flow hedges for the period | -2,342 |
Amount reclassified into current period earnings | -50 |
Ending Balance | ($7,093) |
Derivative_Instruments_Offsett
Derivative Instruments Offsetting Balance Sheet (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Assets [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | $151,923 | $129,358 |
Gross Amounts Offset In Statement Of Financial Position | -128,721 | -73,219 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 23,201 | 56,139 |
Financial Instruments And Collateral | -23,024 | -56,139 |
Net Amount | 177 | 0 |
Offsetting Assets [Member] | Derivative [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 129,151 | 73,219 |
Gross Amounts Offset In Statement Of Financial Position | -128,721 | -73,219 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 429 | 0 |
Financial Instruments And Collateral | -252 | 0 |
Net Amount | 177 | 0 |
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 | 22,772 | 56,139 |
Gross Amounts Offset In Statement Of Financial Position | 0 | 0 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 22,772 | 56,139 |
Financial Instruments And Collateral | -22,772 | -56,139 |
Net Amount | 0 | 0 |
Offsetting Liabilities [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 135,727 | 218,467 |
Gross Amounts Offset In Statement Of Financial Position | -129,978 | -73,051 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 5,749 | 145,416 |
Financial Instruments And Collateral | -10,252 | -136,593 |
Net Amount | -4,503 | 8,823 |
Offsetting Liabilities [Member] | Derivative [Member] | ' | ' |
Offsetting Of Financial Assets And Liabillities [Line Items] | ' | ' |
Gross Amounts Of Recognized Financial Instruments | 131,327 | 218,467 |
Gross Amounts Offset In Statement Of Financial Position | -129,978 | -73,051 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 1,349 | 145,416 |
Financial Instruments And Collateral | -5,852 | -136,593 |
Net Amount | -4,503 | 8,823 |
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 | 4,400 | 0 |
Gross Amounts Offset In Statement Of Financial Position | 0 | 0 |
Net Amounts Of Assets Presented In Statement Of Financial Position | 4,400 | 0 |
Financial Instruments And Collateral | -4,400 | 0 |
Net Amount | $0 | $0 |
Commitments_Contingent_Liabili1
Commitments, Contingent Liabilities And Litigation And Regulatory Matters (Narrative Excluding Litigation) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ' |
Purchase Obligation Commercial Mortgage Loan | $63 |
Purchase Obligation To Purchase Or Fund Investments | $7 |
Related_Party_Amounts_Included
Related Party (Amounts Included In IS) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reinsurance [Abstract] | ' | ' | ' | ' |
Premiums | $352,491 | $330,174 | $692,059 | $645,941 |
Premiums ceded | -334,484 | -316,283 | -658,807 | -618,844 |
Net Premiums | 18,007 | 13,891 | 33,252 | 27,097 |
Direct policy charges and fees | 688,988 | 615,496 | 1,352,773 | 1,194,364 |
Policy charges assumed | 135,518 | 109,717 | 226,349 | 159,752 |
Policy Charges ceded | -301,310 | -238,337 | -542,301 | -403,815 |
Net Policy charges and fee income | 523,196 | 486,876 | 1,036,821 | 950,301 |
Net Investment Income Direct | 104,007 | 105,413 | 202,998 | 208,402 |
Net Investment Income Assumed | 340 | 295 | 678 | 610 |
Net Investment Income Ceded | -1,127 | -676 | -1,979 | -1,472 |
Net Investment Income | 103,220 | 105,032 | 201,697 | 207,540 |
Other Income Direct | 13,167 | 11,176 | 26,574 | 24,411 |
Other Income Assumed And Ceded | 0 | 0 | 0 | -31,118 |
Other income net | 13,167 | 11,176 | 26,574 | -6,707 |
Interest Credited Direct | 105,230 | 41,048 | 206,123 | 81,770 |
Interest Credited Assumed | 30,984 | 37,505 | 60,231 | 70,373 |
Interest Credited Ceded | -52,438 | -52,105 | -102,775 | -98,727 |
Interest Credited to Policyholders Account Balances | 83,776 | 26,448 | 163,579 | 53,416 |
Policyholder's benefits direct | 466,514 | 343,326 | 963,994 | 749,731 |
Policyholders Benefits Assumed | 137,403 | -1,565 | 320,078 | 7,740 |
Policyholders benefits ceded | -531,786 | -276,871 | -1,126,906 | -630,175 |
Policyholders' benefits | 72,131 | 64,890 | 157,166 | 127,296 |
Reinsurance Expense Allowances Net Of Capitalization And Amortization Reinsurance | -64,615 | -50,090 | -128,167 | -93,068 |
Realized investment gains (losses) Direct | -477,059 | 993,396 | -1,598,581 | 1,913,638 |
Realized investment gains (losses) Ceded | 508,727 | -1,033,021 | 1,715,780 | -1,906,549 |
Realized investment gains (losses), net | $31,668 | ($39,625) | $117,199 | $7,089 |
Related_Party_Amounts_Included1
Related Party (Amounts Included In BS) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Reinsurance [Abstract] | ' | ' |
Reinsurance recoverables | $16,317,710,000 | $13,657,859,000 |
Reinsurance Recoverable Reclass Amount | ' | $388,000,000 |
Related_Party_Life_Insurance_I
Related Party (Life Insurance In Force) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Reinsurance [Abstract] | ' | ' |
Gross life insurance face amount in force | $685,708,205 | $639,234,213 |
Assumed life insurance face amount in force | 45,005,228 | 41,449,226 |
Reinsurance ceded | -671,295,042 | -624,334,216 |
Net life insurance face amount in force | $59,418,391 | $56,349,223 |
Related_Party_Expense_Charges_
Related Party (Expense Charges and Allocations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Stock or Unit Option Plan Expense | $1 | $1 | $1 | $1 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 2 | 2 | 4 | 3 |
Pension Expense | 5 | 5 | 9 | 11 |
Defined Contribution Plan Employer Matching Contribution Percent | ' | ' | 4.00% | ' |
Defined Contribution Plan, Cost Recognized | 2 | 2 | 4 | 4 |
Commissions Paid To PAD | $223 | $191 | $425 | $478 |
Related_Party_Corporate_Owned_
Related Party (Corporate Owned Life Insurance) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' | ' |
Life Insurance, Corporate or Bank Owned, Amount | $2,800 | $2,391 | $2,800 | $2,391 | ' |
Fees related to corporate owned life insurance | 10 | 9 | 21 | 18 | ' |
Maximum amount of mortality risk | ' | ' | ' | ' | $3.50 |
Related_Party_Reinsurance_With
Related Party (Reinsurance With Affiliates) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Related Party Transactions [Abstract] | ' | ' | |
Reinsurance Recoverables | $16,317,710 | $13,657,859 | |
Policy Loans | -67,675 | -64,720 | |
Deferred Policy Acquisition Costs | -1,627,661 | -1,627,838 | |
Policyholders account balance | 4,839,907 | 4,681,356 | |
Future policy benefits and other policyholder liabilities | 1,773,639 | 1,359,340 | |
Other liabilities reinsurance payables | $239,373 | $618,781 | [1] |
[1] | (1) December 31, 2013 includes $388 million reclassed from reinsurance recoverables to other liabilities. |
Related_Party_Reinsurance_Reco
Related Party (Reinsurance Recoverable Breakout By Affiliate) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | $16,317,710,000 | $13,657,859,000 | |
Reinsurance Recoverable Reclass Amount | ' | 388,000,000 | |
UPARC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 258,319,000 | 44,835,000 | |
PARU [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 8,693,467,000 | 8,091,714,000 | |
PURC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 1,047,009,000 | 940,218,000 | |
PARCC [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 2,459,261,000 | 2,411,157,000 | |
PAR Term [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 935,027,000 | 816,787,000 | |
Term Re [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 40,834,000 | 0 | |
Prudential Insurance [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 188,320,000 | 190,035,000 | |
Pruco Re [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 1,502,525,000 | 642,000 | [1] |
Reinsurance Recoverable Reclass Amount | ' | 388,000,000 | |
Prudential Of Taiwan [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | 1,189,432,000 | 1,157,639,000 | |
Unaffiliated [Member] | ' | ' | |
Related Party [Line Items] | ' | ' | |
Reinsurance Recoverables | $3,516,000 | $4,832,000 | |
[1] | (1) December 31, 2013 excludes $388 million reclassed from reinsurance recoverable to other liabilities. |
Related_Party_Income_Statement
Related Party (Income Statement Reinsurance Results) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Reinsurance Expense Allowances Net Of Capitalization And Amortization | ($64,615) | ($50,090) | ($128,167) | ($93,068) |
Related_Party_Reinsurance_With1
Related Party (Reinsurance With Affiliates UPARC) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Uparc Reinsurance End Date | 1-Jul-11 |
UPARC Reinsurance new effective date | 1-Jan-11 |
UPARC Recapture Premium Date | '2011-10-31 |
Related_Party_Reinsurance_With2
Related Party (Reinsurance With Affiliates PAR U) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
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 PARCC) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
PARCC Reinsurance Percentage | 90.00% |
Effective date of reinsured policies with PARCC | '2010-01-01 |
Related_Party_Reinsurance_With4
Related Party (Reinsurance With Affiliates PAR TERM) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
PAR TERM Reinsurance Percentage | 95.00% |
Effective Date Of Reinsured Policies With PAR TERM | '2010-01-01 |
Related_Party_Reinsurance_With5
Related Party (Reinsurance With Affiliates Prudential Insurance) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Prudential Insurance Recapture Effective Date | '2011-07-01 |
Prudential Insurance Policy Effective Date | '2011-01-02 |
Related_Party_Reinsurance_With6
Related Party (Reinsurance With Affiliates Pruco Re) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
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) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Taiwan Branch Start Date | '2001-01-31 |
Related_Party_Affiliated_Asset
Related Party (Affiliated Asset Administration Fee Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
AST Revenue Sharing Income | $90 | $76 | $176 | $147 |
PSF Revenue Sharing Income | $3 | $3 | $6 | $6 |
Related_Party_Affiliated_Inves
Related Party (Affiliated Investment Management Expenses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
PIM Mangement Expenses | $4 | $4 | $7 | $7 |
Related_Party_Affiliated_Asset1
Related Party (Affiliated Asset Transfers) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
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 5 [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 6 [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 7 [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 | '2014-03-27 |
Asset Transfer Fair Value | 13 |
Asset Transfer Amortizied Cost | 13 |
Asset Transfer Apic Change | 0 |
Asset Transfer Realized Gain Loss | 0 |
Asset Transfer Derivative Gain Loss | 0 |
PARU Asset Transfer 2 [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 3 [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 4 [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 |
UPARC Asset Transfer 1 [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 |
Related_Party_Debt_Agreements_
Related Party (Debt Agreements) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Related Party [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $2,200,000,000 | ' | $2,200,000,000 | ' | ' |
Interest Expense | 12,900,000 | 9,900,000 | 26,000,000 | 19,900,000 | ' |
Current Principle Amount | 1,795,000,000 | ' | 1,795,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 1,866,900,000 |
Prudential Financial Loan 1 [Member] | ' | ' | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' | ' | ' |
Borrowing Date | ' | ' | '2010-11-15 | ' | ' |
Current Principle Amount | 66,000,000 | ' | 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 | 100,000,000 | ' | 100,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 150,000,000 |
Interest Rate Near | ' | ' | 2.17% | ' | ' |
Interest Rate Far | ' | ' | 3.17% | ' | ' |
Maturity Date Near | ' | ' | '2014-06-19 | ' | ' |
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 | ' | 159,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 159,000,000 |
Interest Rate Near | ' | ' | 2.99% | ' | ' |
Interest Rate Far | ' | ' | 3.61% | ' | ' |
Maturity Date Near | ' | ' | '2014-12-15 | ' | ' |
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 | ' | 33,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 33,000,000 |
Interest Rate Near | ' | ' | 2.99% | ' | ' |
Interest Rate Far | ' | ' | 3.61% | ' | ' |
Maturity Date Near | ' | ' | '2014-12-16 | ' | ' |
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 | ' | 88,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 88,000,000 |
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 | ' | 9,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 9,000,000 |
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 | ' | 23,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 23,000,000 |
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 | ' | 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 | ' | 120,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 120,000,000 |
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 | ' | 130,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 130,000,000 |
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 | ' | 250,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 250,000,000 |
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 | 237,000,000 | ' | 237,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 316,000,000 |
Interest Rate Near | ' | ' | 2.06% | ' | ' |
Interest Rate Far | ' | ' | 3.02% | ' | ' |
Maturity Date Near | ' | ' | '2014-06-15 | ' | ' |
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 | ' | 264,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 264,000,000 |
Interest Rate Near | ' | ' | 1.12% | ' | ' |
Interest Rate Far | ' | ' | 1.87% | ' | ' |
Maturity Date Near | ' | ' | '2014-12-17 | ' | ' |
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 | ' | 52,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 52,000,000 |
Interest Rate Near | ' | ' | 1.21% | ' | ' |
Interest Rate Far | ' | ' | 1.87% | ' | ' |
Maturity Date Near | ' | ' | '2014-12-17 | ' | ' |
Maturity Date Far | ' | ' | '2017-12-17 | ' | ' |
Pru Funding Loan 1 [Member] | ' | ' | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' | ' | ' |
Borrowing Date | ' | ' | '2013-12-31 | ' | ' |
Current Principle Amount | 0 | ' | 0 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | 2,900,000 |
Interest Rate | ' | ' | 0.23% | ' | ' |
Maturity Date | ' | ' | '2014-01-07 | ' | ' |
Pru Funding Loan 2 [Member] | ' | ' | ' | ' | ' |
Related Party [Line Items] | ' | ' | ' | ' | ' |
Borrowing Date | ' | ' | '2014-06-26 | ' | ' |
Current Principle Amount | 60,000,000 | ' | 60,000,000 | ' | ' |
Opening Principle Amount | ' | ' | ' | ' | $0 |
Interest Rate | ' | ' | 0.24% | ' | ' |
Maturity Date | ' | ' | '2014-07-03 | ' | ' |
Related_Party_Contributed_Capi
Related Party (Contributed Capital and Dividend) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' |
Dividend | $338 | $268 | $155 |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
QuarterlyFinancialDataAbstract | ' | ' | ' | ' |
Total revenues | $782,985 | $656,314 | $1,598,694 | $1,346,647 |
Total benefits and expenses | 483,282 | 229,901 | 952,417 | 465,345 |
Income Loss From Continuing Operations Before Income Taxes And Operating Joint Ventures | 299,703 | 426,413 | 646,277 | 881,302 |
Net income | $249,069 | $311,997 | $528,239 | $659,052 |