Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Mar. 23, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT | |
Entity Central Index Key | 881,453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
Statements of Financial Positio
Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2016: $9,818,298; 2015: $2,433,626) | $ 9,362,763 | $ 2,524,272 |
Trading account assets, at fair value | 149,871 | 5,653 |
Equity securities, available-for-sale, at fair value (cost, 2016: $365; 2015: $14) | 18 | 17 |
Commercial mortgage and other loans | 1,231,893 | 438,172 |
Policy loans | 12,719 | 13,054 |
Short-term investments | 947,150 | 158,227 |
Other long-term investments | 551,931 | 182,157 |
Total investments | 12,256,345 | 3,321,552 |
Cash and cash equivalents | 1,848,039 | 536 |
Deferred policy acquisition costs | 4,344,361 | 749,302 |
Accrued investment income | 86,004 | 22,615 |
Reinsurance recoverables | 588,608 | 3,088,328 |
Income taxes | 1,978,607 | 0 |
Value of business acquired | 30,287 | 33,640 |
Deferred sales inducements | 978,823 | 452,752 |
Receivables from parent and affiliates | 111,703 | 212,696 |
Other assets | 169,649 | 123,158 |
Separate account assets | 37,429,739 | 39,250,159 |
TOTAL ASSETS | 59,822,165 | 47,254,738 |
LIABILITIES | ||
Future policy benefits | 8,686,196 | 3,578,662 |
Policyholders’ account balances | 4,736,889 | 2,416,125 |
Payables to parent and affiliates | 91,432 | 25,677 |
Cash collateral for loaned securities | 23,350 | 10,568 |
Income taxes | 0 | 274,951 |
Long-term debt | 971,899 | 0 |
Short-term debt | 28,101 | 1,000 |
Reinsurance payable | 275,822 | 250,277 |
Other liabilities | 489,007 | 100,401 |
Separate account liabilities | 37,429,739 | 39,250,159 |
Total Liabilities | 52,732,435 | 45,907,820 |
Commitments and Contingent Liabilities | ||
EQUITY | ||
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding | 2,500 | 2,500 |
Additional paid-in capital | 8,095,436 | 901,422 |
Retained earnings/(accumulated deficit) | (693,258) | 396,830 |
Accumulated other comprehensive income | (314,948) | 46,166 |
Total Equity | 7,089,730 | 1,346,918 |
TOTAL LIABILITIES AND EQUITY | $ 59,822,165 | $ 47,254,738 |
Statements of Financial Positi3
Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 9,818,298 | $ 2,433,626 |
Equity securities, available-for-sale, cost | $ 365 | $ 14 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 25,000 | 25,000 |
Common stock, shares outstanding | 25,000 | 25,000 |
Statements of Operations and Co
Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | |||
Premiums | $ 896,839 | $ 9,787 | $ 34,903 |
Policy charges and fee income | 1,755,224 | 740,823 | 806,327 |
Net investment income | 338,370 | 139,430 | 164,011 |
Asset administration fees and other income | 299,384 | 177,479 | 227,619 |
Realized investment gains (losses), net: | |||
Other-than-temporary impairments on fixed maturity securities | (7,853) | (44) | (10) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 1,354 | 24 | 10 |
Other realized investment gains (losses), net | (3,436,261) | 6,072 | 7,368 |
Total realized investment gains (losses), net | (3,442,760) | 6,052 | 7,368 |
Total revenues | (152,943) | 1,073,571 | 1,240,228 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | 604,057 | 60,461 | 137,135 |
Interest credited to policyholders’ account balances | 68,889 | 225,555 | 211,058 |
Amortization of deferred policy acquisition costs | (179,816) | 309,152 | 238,416 |
General, administrative and other expenses | 1,124,508 | 313,471 | 394,248 |
Total benefits and expenses | 1,617,638 | 908,639 | 980,857 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (1,770,581) | 164,932 | 259,371 |
Total income tax expense (benefit) | (680,493) | (8,285) | 8,604 |
NET INCOME (LOSS) | (1,090,088) | 173,217 | 250,767 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (20) | (54) | (63) |
Net unrealized investment gains (losses): | |||
Unrealized investment gains (losses) for the period | (469,356) | (54,279) | 35,931 |
Reclassification adjustment for gains included in net income | (86,184) | (4,831) | (14,706) |
Net unrealized investment gains (losses) | (555,540) | (59,110) | 21,225 |
Other comprehensive income (loss), before tax: | (555,560) | (59,164) | 21,162 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | |||
Foreign currency translation adjustments | (7) | (19) | (23) |
Net unrealized investment gains (losses) | (194,439) | (20,689) | 7,430 |
Total | (194,446) | (20,708) | 7,407 |
Other comprehensive income (loss), net of taxes | (361,114) | (38,456) | 13,755 |
COMPREHENSIVE INCOME (LOSS) | $ (1,451,202) | $ 134,761 | $ 264,522 |
Statements of Equity
Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Equity |
Beginning Balance at Dec. 31, 2013 | $ 2,500 | $ 901,422 | $ 764,846 | $ 70,867 | $ 1,739,635 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | $ 0 | 0 | 0 | |||
Dividend to parent | (342,000) | (342,000) | ||||
Comprehensive income: | ||||||
Net income (loss) | 250,767 | 250,767 | 250,767 | |||
Other comprehensive income (loss), net of tax | 13,755 | 13,755 | 13,755 | |||
Total comprehensive income (loss) | 264,522 | |||||
Ending Balance at Dec. 31, 2014 | 2,500 | 901,422 | 673,613 | 84,622 | 1,662,157 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | 0 | 0 | |||
Dividend to parent | (450,000) | (450,000) | ||||
Comprehensive income: | ||||||
Net income (loss) | 173,217 | 173,217 | 173,217 | |||
Other comprehensive income (loss), net of tax | (38,456) | (38,456) | (38,456) | |||
Total comprehensive income (loss) | 134,761 | |||||
Ending Balance at Dec. 31, 2015 | 2,500 | 901,422 | 396,830 | 46,166 | 1,346,918 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 860,573 | 8,421,955 | 8,421,955 | |||
Return of capital | (1,140,000) | (1,140,000) | ||||
Dividend to parent | 0 | 0 | ||||
Assets purchased/transferred from/to affiliates | (72,179) | (72,179) | ||||
Impact of Pruco Re and PALAC merger | (15,762) | (15,762) | ||||
Comprehensive income: | ||||||
Net income (loss) | (1,090,088) | (1,090,088) | (1,090,088) | |||
Other comprehensive income (loss), net of tax | $ (361,114) | (361,114) | (361,114) | |||
Total comprehensive income (loss) | (1,451,202) | |||||
Ending Balance at Dec. 31, 2016 | $ 2,500 | $ 8,095,436 | $ (693,258) | $ (314,948) | $ 7,089,730 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (1,090,088) | $ 173,217 | $ 250,767 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Policy charges and fee income | (245) | 907 | 3,491 |
Realized investment (gains) losses, net | 3,442,760 | (6,052) | (7,368) |
Depreciation and amortization | 10,737 | 37,530 | 1,402 |
Interest credited to policyholders’ account balances | 68,889 | 225,555 | 211,058 |
Change in: | |||
Future policy benefits | 759,604 | 238,052 | 324,284 |
Accrued investment income | (63,389) | 2,393 | 7,161 |
Net payable to/receivable from parent and affiliates | (55,984) | 61,252 | (26,936) |
Deferred sales inducements | (1,805) | 38,380 | (11,515) |
Deferred policy acquisition costs | (449,496) | 381,480 | 235,612 |
Income taxes | (712,423) | (3,426) | (67,163) |
Reinsurance recoverables | 199,107 | (270,868) | (273,480) |
Bonus reserve | 0 | (38,768) | (115,700) |
Derivatives, net | 2,605,415 | 21,581 | (415) |
Deferred loss on reinsurance | 305,464 | (118,028) | 0 |
Other, net | (54,819) | (3,508) | (1,804) |
Cash flows from (used in) operating activities | 4,963,727 | 739,697 | 529,394 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 4,072,242 | 486,648 | 996,083 |
Commercial mortgage and other loans | 122,086 | 89,344 | 20,988 |
Trading account assets | 7,489 | 3,765 | 4,900 |
Policy loans | 1,833 | 1,257 | 753 |
Other long-term investments | 9,587 | 3,764 | (1,650) |
Short-term investments | 1,799,219 | 2,318,219 | 2,637,788 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (5,535,732) | (336,954) | (494,947) |
Equity securities, available-for-sale | (351) | 0 | 0 |
Commercial mortgage and other loans | (353,692) | (106,185) | (43,859) |
Trading account assets | (7,810) | (3,681) | (4,312) |
Policy loans | (442) | (644) | (943) |
Other long-term investments | (111,838) | (3,994) | (14,691) |
Short-term investments | (2,561,044) | (2,419,261) | (2,576,786) |
Notes receivable from parent and affiliates, net | (4,923) | 3,110 | (12,524) |
Derivatives, net | (6,305) | (6,528) | 1,682 |
Other, net | (2,911) | 1,070 | (1,674) |
Cash flows from (used in) investing activities | (2,572,592) | 29,930 | 510,808 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash collateral for loaned securities | 12,782 | 5,283 | (42,612) |
Proceeds from the issuance of debt (maturities longer than 90 days) | 125,000 | 0 | 0 |
Repayments of debt (maturities longer than 90 days) | (268,000) | 0 | (200,000) |
Net increase (decrease) in short-term borrowing | (1,000) | (53,354) | 49,354 |
Drafts outstanding | 5,777 | (1,663) | (6,410) |
Distribution to parent | (1,140,000) | (450,000) | (342,000) |
Contributed capital | 860,573 | 0 | 0 |
Policyholders’ account deposits | 2,116,567 | 1,295,546 | 1,375,761 |
Ceded policyholders’ account deposits | (23,890) | (54,027) | 0 |
Policyholders’ account withdrawals | (2,259,445) | (1,511,470) | (1,875,118) |
Ceded policyholders' account withdrawals | 28,004 | 0 | 0 |
Cash flows from (used in) financing activities | (543,632) | (769,685) | (1,041,025) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | 1,847,503 | (58) | (823) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 536 | 594 | 1,417 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 1,848,039 | 536 | 594 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid/(received) | 31,931 | (4,858) | 75,745 |
Interest paid | $ 23,392 | $ 68 | $ 8,657 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Annuities Life Assurance Corporation (the “Company” or “PALAC”), with its principal offices in Shelton, Connecticut, is a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey corporation. The Company developed long-term savings and retirement products, which were distributed through its affiliated broker/dealer company, Prudential Annuities Distributors, Inc. (“PAD”). The Company issued variable and fixed deferred and immediate annuities for individuals and groups in the United States of America, District of Columbia and Puerto Rico. In addition, the Company has a relatively small in force block of variable life insurance policies. The Company no longer actively sells such products. Beginning in March 2010, the Company ceased offering its variable annuity products (and where offered, the companion market value adjustment option) to new investors upon the launch of a new product line by each of Pruco Life Insurance Company ("Pruco Life") and its wholly-owned subsidiary Pruco Life Insurance Company of New Jersey ("PLNJ") (which are affiliates of the Company). These initiatives were implemented to create operational and administrative efficiencies by offering a single product line of annuity products from a more limited group of legal entities. During 2012, the Company suspended additional customer deposits for variable annuities with certain living benefit guarantees. However, subject to applicable contract provisions and administrative rules, the Company continues to accept additional customer deposits on certain in force contracts. The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing long-term savings and retirement products, including insurance products, and individual and group annuities. On August 31, 2013, the Company redomesticated from Connecticut to Arizona. As a result of the redomestication, the Company is now an Arizona insurance company and its principal insurance regulatory authority is the Arizona Department of Insurance. The redomestication also resulted in the Company being domiciled in the same jurisdiction as the then primary reinsurer of the Company’s living benefit guarantees, Pruco Reinsurance, Ltd. (“Pruco Re”), which enabled the Company to claim statutory reserve credit for business ceded to Pruco Re without the need for Pruco Re to collateralize its obligations under the reinsurance agreement. As of April 1, 2016, the Company no longer reinsures its living benefit guarantees to Pruco Re. As disclosed in Note 1 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31 2015, the Company surrendered its New York license effective December 31, 2015, and reinsured the majority of its New York business to an affiliate, The Prudential Insurance Company of America (“Prudential Insurance”). The license surrender relieves the Company of the requirement to hold New York statutory reserves on its business in excess of the statutory reserves required by its domiciliary regulator, the Arizona Department of Insurance. For the small portion of New York business retained by the Company, a custodial account has been established to hold collateral assets in an amount equal to a percentage of the reserves associated with such business, as calculated in accordance with PALAC's New York Regulation 109 Plan approved by the New York Department of Financial Services. Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to its affiliated companies, Pruco Re and Prudential Insurance. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance, under a coinsurance and modified coinsurance agreement. This reinsurance agreement covers new and in force business and excludes business reinsured externally. The product risks related to the reinsured business are being managed in the Company. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within the Company. These series of transactions are collectively referred to as the "Variable Annuities Recapture". The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 3,343 $ 3,084 $ 10,624 $ 17,051 Cash and cash equivalents 106 11 1,024 1,141 Deferred policy acquisition costs 537 0 3,134 3,671 Reinsurance recoverables 3,776 (3,401 ) 320 695 Deferred sales inducements 327 0 500 827 Income tax receivable(2) 0 115 2,441 2,556 TOTAL ASSETS 46,694 (191 ) 18,043 64,546 LIABILITIES AND EQUITY LIABILITIES Policyholders' account balances $ 2,422 $ 0 $ 2,387 $ 4,809 Future policy benefits 4,295 0 6,972 11,267 Short-term and long-term debt(3) 0 0 1,268 1,268 Other liabilities 114 0 630 744 TOTAL LIABILITIES 45,472 0 11,257 56,729 EQUITY Additional paid-in capital(4) 901 0 8,422 9,323 Retained earnings 254 (191 ) (1,600 ) (1,537 ) Accumulated other comprehensive income 64 0 (36 ) 28 TOTAL EQUITY 1,222 (191 ) 6,786 7,817 TOTAL LIABILITIES AND EQUITY 46,694 (191 ) 18,043 64,546 Significant Non-Cash Transactions (1) The increase in total investments includes non-cash activities of $ 3.1 billion for assets received related to the recapture transaction with Pruco Re, $ 7.1 billion for assets received related to the reinsurance transaction with Pruco Life and $ 3.6 billion related to non-cash capital contributions from PAI. (2) Prudential Financial contributed current tax receivables through PAI of $ 1.5 billion to the Company as part of the Variable Annuities Recapture. (3) The Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. (4) The increase in additional paid-in capital ("APIC") includes non-cash capital contributions from PAI of $ 3.6 billion in invested assets, $ 1.5 billion of current tax receivables and $ 2.5 billion funding for the ceding commission for the reinsurance transaction with Pruco Life. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ 832 $ 832 Realized investment gains (losses), net (305 ) (2,561 ) (2,866 ) TOTAL REVENUES (305 ) (1,729 ) (2,034 ) BENEFITS AND EXPENSES Policyholders' benefits 0 522 522 General, administrative and other expenses 0 310 310 TOTAL BENEFITS AND EXPENSES 0 832 832 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (305 ) (2,561 ) (2,866 ) Income tax expense (benefit) (114 ) (961 ) (1,075 ) NET INCOME (LOSS) $ (191 ) $ (1,600 ) $ (1,791 ) As part of the Variable Annuities Recapture, the Company received invested assets of $ 3.1 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016, and unwound the associated reinsurance recoverable of $ 3.4 billion . As a result of the recapture transaction, the Company recognized a loss of $ 0.3 billion immediately. For the Variable Annuities Recapture, the Company received invested assets of $ 7.1 billion as consideration from Pruco Life and established reserves of $ 9.4 billion . In addition, the Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. Also, the Company established deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances, which were equivalent to the ceding commission incurred by the Company. For the reinsurance of the variable annuity base contracts, the Company recognized a benefit of $ 0.3 billion , which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a loss of $ 2.6 billion immediately since the reinsurance contract is accounted for as free-standing derivative. The Company also received a capital contribution of $ 8.4 billion from PAI. As a result of the Variable Annuities Recapture, Pruco Re no longer had any material active reinsurance with affiliates. On September 30, 2016, Pruco Re was merged with and into the Company. The following table summarizes the asset transfers related to Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/ (Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 3,084 $ 3,084 $ 0 $ 0 Pruco Life Apr - June 2016 Purchase Fixed Maturities, Trading Account Assets, Commercial Mortgages, Derivatives, JV/LP Investments and Short-Term Investments $ 6,994 $ 6,994 $ 0 $ 0 PAI Apr - June 2016 Contributed Capital Fixed Maturities, Trading Account Assets and Derivatives $ 3,517 $ 3,517 $ 3,517 $ 0 Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining DAC and related amortization; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. Revision to Prior Period Financial Statements The Company identified errors in the presentation of certain activity related to the Variable Annuities Recapture and other affiliated reinsurance transactions that impacted several line items within our previously issued Statements of Cash Flows for the interim periods ended March 31, 2016, June 30, 2016 and September 30, 2016. Management assessed the materiality of the misstatements on prior period financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior interim periods. Accordingly, prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised, as presented below: (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Reinsurance recoverables $ (69,025 ) $ 5,261 $ (63,764 ) Cash flows from (used in) operating activities 35,727 5,261 40,988 CASH FLOWS FROM FINANCING ACTIVITIES: Ceded policyholders’ account deposits 0 (16,249 ) (16,249 ) Ceded policyholders’ account withdrawals 0 10,988 10,988 Cash flows from (used in) financing activities (5,823 ) (5,261 ) (11,084 ) (UNAUDITED) Six Months Ended June 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ 248 $ (355 ) $ (107 ) Future policy benefits 122,101 193,147 315,248 Reinsurance recoverables (15,315 ) 279,718 264,403 Derivatives, net 10,192,618 (233,295 ) 9,959,323 Other, net 84,739 (279,768 ) (195,029 ) Cash flows from (used in) operating activities 10,936,664 (40,553 ) 10,896,111 CASH FLOWS FROM FINANCING ACTIVITIES: Policyholders’ account deposits 637,886 497,834 1,135,720 Ceded policyholders’ account deposits 0 (19,498 ) (19,498 ) Policyholders’ account withdrawals (736,708 ) (454,971 ) (1,191,679 ) Ceded policyholders’ account withdrawals 0 17,188 17,188 Cash flows from (used in) financing activities 534,651 40,553 575,204 (UNAUDITED) Nine Months Ended September 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ (803 ) $ 920 $ 117 Future policy benefits (5,224 ) 535,604 530,380 Net payable to/receivable from parent and affiliates 171,317 (226,317 ) (55,000 ) Reinsurance recoverables (213,844 ) 421,353 207,509 Other, net 650,903 (791,800 ) (140,897 ) Cash flows from (used in) operating activities 10,149,084 (60,241 ) 10,088,843 CASH FLOWS FROM FINANCING ACTIVITIES: Contributed capital 781,125 79,448 860,573 Policyholders’ account deposits 2,203,234 (678,706 ) 1,524,528 Ceded policyholders’ account deposits 0 (21,033 ) (21,033 ) Policyholders’ account withdrawals (2,346,701 ) 655,334 (1,691,367 ) Ceded policyholders’ account withdrawals 0 25,198 25,198 Cash flows from (used in) financing activities 508,274 60,241 568,515 Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Investments The Company’s principal investments are fixed maturities, equity securities, commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to "Net investment income" in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets , at fair value represents equity securities and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value is comprised of mutual fund shares and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, and future policy benefits that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in "Net investment income". Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans, as well as, loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios considers the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consists of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for other-than-temporary impairment), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net other-than-temporary impairments recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify other-than-temporary impairments in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment an other-than-temporary impairment is recognized. When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the other-than-temporary impairment recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For other-than-temporary impairments of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an other-than-temporary impairment recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities, are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 15 . Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 4 for additional information regarding DAC. Deferred Sales Inducements The Company offered various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 7 for additional information regarding sales inducements. Value of Business Acquired As a result of certain acquisitions and the application of purchase accounting, the Company reports a financial asset representing VOBA. VOBA represents an adjustment to the stated value of in force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which it was acquired. The Company has established a VOBA asset primarily for its acquisition of American Skandia Life Assurance Corporation. The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General, administrative, and other expenses.” See Note 5 for additional information regarding VOBA. Reinsurance recoverables and Reinsurance payables Reinsurance recoverables and reinsurance payables include corresponding receivables and payables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13 . Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders. “Separate account assets” are predominantly shares in Advanced Series Trust co-managed by AST Investment Services, Incorporated (“ASISI”) and Prudential Investments LLC, which utilizes various fund managers as sub-advisors. The remaining assets are shares in other mutual funds, which are managed by independent investment firms. The contractholder has the option of directing funds to a wide variety of investment options, most of which invest in mutual funds. The investment risk on the variable portion of a contract is borne by the contractholder, except to the extent of minimum guarantees by the Company, which are not separate account liabilities. See Note 7 to the Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees and other income.” Other Assets and Other Liabilities “Other assets” consist primarily of accruals for asset administration fees, deferred loss on reinsurance with an affiliate and receivables resulting from sales of securities that had not yet settled at the balance sheet date. “Other assets” also consist of state insurance licenses. Licenses to do business in all states have been capitalized. Based on changes in facts and circumstances, effective September 30, 2012, the capitalized state insurance licenses were considered to have a finite life and are amortized over their useful life, which was estimated to be 8 years . Amortization is recorded through “General, administrative and other expenses.” “Other liabilities” consist primarily of accrued expenses, technical overdrafts, deferred gain on reinsurance with an affiliate, and payables resulting from purchases of securities that had not yet settled at the balance sheet date. Other liabilities may also include derivative instruments for which fair values are determined as described below under “Derivative Financial Instruments”. Future Policy Benefits The Company’s liability for future policy benefits is primarily comprised of liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 7 . These reserves represent reserves for the guaranteed minimum death and optional living benefit features on the Company’s variable annuity products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 10 . The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. Securities repurchase and resale agreements and securities loaned transactions Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”; however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General, administrativ |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 4,998,652 $ 2,487 $ 536,114 $ 4,465,025 $ 0 Obligations of U.S. states and their political subdivisions 92,107 566 2,699 89,974 0 Foreign government bonds 64,352 5,404 370 69,386 0 Public utilities 448,349 13,155 10,348 451,156 0 Redeemable preferred stock 29,581 288 633 29,236 0 All other U.S. public corporate securities 1,619,814 73,819 10,153 1,683,480 (771 ) All other U.S. private corporate securities 951,324 27,234 13,810 964,748 (694 ) All other foreign public corporate securities 183,253 5,410 1,022 187,641 0 All other foreign private corporate securities 501,140 5,349 20,450 486,039 0 Asset-backed securities(1) 248,547 3,227 465 251,309 0 Commercial mortgage-backed securities 484,673 6,793 6,753 484,713 0 Residential mortgage-backed securities(2) 196,506 4,063 513 200,056 (5 ) Total fixed maturities, available-for-sale $ 9,818,298 $ 147,795 $ 603,330 $ 9,362,763 $ (1,470 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 351 $ 0 $ 351 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 365 $ 4 $ 351 $ 18 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 12,233 $ 28 $ 107 $ 12,154 $ 0 Obligations of U.S. states and their political subdivisions 20,116 474 378 20,212 0 Foreign government bonds 43,188 6,123 28 49,283 0 Public utilities 203,803 15,969 4,263 215,509 0 Redeemable preferred stock 0 0 0 0 0 All other U.S. public corporate securities 818,627 52,866 7,717 863,776 0 All other U.S. private corporate securities 494,640 30,996 4,407 521,229 0 All other foreign public corporate securities 132,414 3,781 608 135,587 0 All other foreign private corporate securities 219,009 2,487 15,842 205,654 0 Asset-backed securities(1) 149,196 2,786 692 151,290 (35 ) Commercial mortgage-backed securities 211,429 4,963 652 215,740 0 Residential mortgage-backed securities(2) 128,971 4,886 19 133,838 (7 ) Total fixed maturities, available-for-sale $ 2,433,626 $ 125,359 $ 34,713 $ 2,524,272 $ (42 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. The following tables show the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years indicated: 2016 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 4,254,477 $ 536,114 $ 0 $ 0 $ 4,254,477 $ 536,114 Obligations of U.S. states and their political subdivisions 73,885 2,699 0 0 73,885 2,699 Foreign government bonds 32,107 370 0 0 32,107 370 Public utilities 240,041 8,019 17,097 2,329 257,138 10,348 Redeemable preferred stock 12,948 633 0 0 12,948 633 All other U.S. public corporate securities 530,904 8,798 12,981 1,355 543,885 10,153 All other U.S. private corporate securities 453,976 13,632 12,304 178 466,280 13,810 All other foreign public corporate securities 89,962 1,016 9,994 6 99,956 1,022 All other foreign private corporate securities 247,111 11,661 58,214 8,789 305,325 20,450 Asset-backed securities 67,246 439 16,489 26 83,735 465 Commercial mortgage-backed securities 293,651 6,753 0 0 293,651 6,753 Residential mortgage-backed securities 68,283 513 0 0 68,283 513 Total fixed maturities, available-for-sale $ 6,364,591 $ 590,647 $ 127,079 $ 12,683 $ 6,491,670 $ 603,330 Equity securities, available-for-sale $ 0 $ 351 $ 0 $ 0 $ 0 $ 351 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 8,480 $ 107 $ 0 $ 0 $ 8,480 $ 107 Obligations of U.S. states and their political subdivisions 6,887 378 0 0 6,887 378 Foreign government bonds 13,616 28 0 0 13,616 28 Public utilities 49,104 1,421 14,217 2,842 63,321 4,263 Redeemable preferred stock 0 0 0 0 0 0 All other U.S. public corporate securities 207,578 6,297 29,828 1,420 237,406 7,717 All other U.S. private corporate securities 84,318 4,020 3,550 387 87,868 4,407 All other foreign public corporate securities 76,573 608 0 0 76,573 608 All other foreign private corporate securities 38,047 1,972 85,341 13,870 123,388 15,842 Asset-backed securities 50,195 430 26,359 262 76,554 692 Commercial mortgage-backed securities 55,065 642 833 10 55,898 652 Residential mortgage-backed securities 2,141 19 0 0 2,141 19 Total fixed maturities, available-for-sale $ 592,004 $ 15,922 $ 160,128 $ 18,791 $ 752,132 $ 34,713 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 The gross unrealized losses on fixed maturity securities at December 31, 2016 and 2015 , were composed of $594.9 million and $22.6 million , respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $8.4 million and $12.1 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2016 , the $12.7 million of gross unrealized losses of twelve months or more was concentrated in the consumer non-cyclical , finance and utility sectors of the Company’s corporate securities. At December 31, 2015 , the $18.8 million of gross unrealized losses of twelve months or more was concentrated in the consumer non-cyclical, capital goods, utility and finance sectors of the Company’s corporate securities. In accordance with its policy described in Note 2 , the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2016 or 2015 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses were primarily attributable to interest rate increases. At December 31, 2016 , the Company did not intend to sell these securities, and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. At December 31, 2016 , all of the gross unrealized losses on equity securities represented declines in value of greater than 20%, all of which had been in that position for less than six months. At December 31, 2015 , there were no gross unrealized losses on equity securities. In accordance with its policy described in Note 2 , the Company concluded that an adjustment to earnings for OTTI for these equity securities was not warranted at December 31, 2016 . The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 were as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 354,121 $ 355,252 Due after one year through five years 1,196,869 1,223,226 Due after five years through ten years 1,515,758 1,536,061 Due after ten years 5,821,824 5,312,146 Asset-backed securities 248,547 251,309 Commercial mortgage-backed securities 484,673 484,713 Residential mortgage-backed securities 196,506 200,056 Total $ 9,818,298 $ 9,362,763 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities, for the years indicated: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale Proceeds from sales(1) $ 3,577,346 $ 33,604 $ 308,458 Proceeds from maturities/repayments(1) 495,465 453,016 681,426 Gross investment gains from sales, prepayments and maturities 98,095 5,788 18,110 Gross investment losses from sales and maturities (5,412 ) (937 ) (3,404 ) Equity securities, available-for-sale Proceeds from sales $ 0 $ 0 $ 192 Gross investment gains from sales 0 0 1 Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(2) $ (6,499 ) $ (20 ) $ 0 Writedowns for impairments on equity securities 0 0 0 (1) Includes $0.6 million , $(0.0) million and $(6.2) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Excludes the portion of OTTI recorded in OCI representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. As discussed in Note 2 , a portion of certain OTTI losses on fixed maturity securities is recognized in OCI. For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in thousands) Balance, beginning of period $ 86 $ 93 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,170 ) (17 ) Additional credit loss impairments recognized in the current period on securities previously impaired 0 20 Credit loss impairments recognized in the current period on securities not previously impaired 1,791 0 Increases due to the passage of time on previously recorded credit losses 25 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (14 ) (10 ) Assets transferred to parent and affiliates 607 0 Balance, end of period $ 1,325 $ 86 Trading Account Assets The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Cost Fair Value Cost Fair Value (in thousands) Fixed maturities $ 147,057 $ 139,513 $ 0 $ 0 Equity securities 7,551 10,358 5,618 5,653 Total trading account assets $ 154,608 $ 149,871 $ 5,618 $ 5,653 The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Asset administration fees and other income,” was $(4.8) million , $(0.6) million and $(0.9) million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans were comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 277,296 22.5 % $ 136,190 31.2 % Industrial 263,705 21.4 58,621 13.5 Retail 223,252 18.1 67,358 15.5 Office 294,304 23.8 100,357 23.0 Other 87,465 7.1 18,660 4.3 Hospitality 3,925 0.3 4,963 1.1 Total commercial mortgage loans 1,149,947 93.2 386,149 88.6 Agricultural property loans 84,235 6.8 49,926 11.4 Total commercial mortgage and agricultural property loans by property type 1,234,182 100.0 % 436,075 100.0 % Valuation allowance (2,289 ) (643 ) Total net commercial mortgage and agricultural property loans by property type 1,231,893 435,432 Other loans: Uncollateralized loans 0 2,740 Valuation allowance 0 0 Total net other loans 0 2,740 Total commercial mortgage and other loans $ 1,231,893 $ 438,172 The commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California ( 27% ), Texas ( 13% ) and New Jersey ( 6% )) and included loans secured by properties in Europe and Australia at December 31, 2016 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, was as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 622 $ 21 $ 0 $ 643 Addition to (release of) allowance for losses 1,645 1 0 1,646 Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 2,267 $ 22 $ 0 $ 2,289 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 455 $ 27 $ 0 $ 482 Addition to (release of) allowance for losses 167 (6 ) 0 161 Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 622 $ 21 $ 0 $ 643 The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Uncollateralized Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,267 22 0 2,289 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 2,267 $ 22 $ 0 $ 2,289 Recorded Investment(1): Individually evaluated for impairment $ 1,715 $ 0 $ 0 $ 1,715 Collectively evaluated for impairment 1,148,232 84,235 0 1,232,467 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,149,947 $ 84,235 $ 0 $ 1,234,182 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 622 21 0 643 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 622 $ 21 $ 0 $ 643 Recorded Investment(1): Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 386,149 49,926 2,740 438,815 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 386,149 $ 49,926 $ 2,740 $ 438,815 (1) Recorded investment reflects the carrying value gross of related allowance. The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: Debt Service Coverage Ratio - December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,051 $ 16,921 $ 4,610 $ 688,582 60%-69.99% 406,728 0 3,817 410,545 70%-79.99% 108,770 15,493 0 124,263 80% or greater 9,725 0 1,067 10,792 Total commercial mortgage and agricultural property loans $ 1,192,274 $ 32,414 $ 9,494 $ 1,234,182 Debt Service Coverage Ratio - December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 303,215 $ 9,073 $ 992 $ 313,280 60%-69.99% 95,977 0 0 95,977 70%-79.99% 25,401 1,417 0 26,818 80% or greater 0 0 0 0 Total commercial mortgage and agricultural property loans $ 424,593 $ 10,490 $ 992 $ 436,075 The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,149,947 $ 0 $ 0 $ 0 $ 1,149,947 $ 0 Agricultural property loans 84,235 0 0 0 84,235 0 Other loans 0 0 0 0 0 0 Total commercial mortgage and other loans $ 1,234,182 $ 0 $ 0 $ 0 $ 1,234,182 $ 0 (1) There were no loans accruing interest. December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 386,149 $ 0 $ 0 $ 0 $ 386,149 $ 0 Agricultural property loans 49,926 0 0 0 49,926 0 Other loans 2,740 0 0 0 2,740 0 Total commercial mortgage and other loans $ 438,815 $ 0 $ 0 $ 0 $ 438,815 $ 0 (1) There were no loans accruing interest. See Note 2 for further discussion regarding non-accrual status loans. For the years ended December 31, 2016 and 2015 , there were no commercial mortgage or other loans acquired, other than those through direct origination, nor were there any commercial mortgage or other loans sold. For the year ended December 31, 2016 , the Company received $580 million of commercial mortgage and other loans from related parties. See Note 1 for additional information. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2016 and 2015 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. As of both December 31, 2016 and 2015 , there were no new troubled debt restructurings related to commercial mortgage or other loans and no payment defaults on commercial mortgage or other loans that were modified as a troubled debt restructuring within the twelve months preceding. See Note 2 for additional information relating to the accounting for troubled debt restructurings. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in thousands) Joint ventures and limited partnerships: Private equity $ 30,513 $ 22,535 Hedge funds 98,554 41,820 Real estate-related 109,043 2,535 Total joint ventures and limited partnerships 238,110 66,890 Derivatives 313,821 115,267 Total other long-term investments $ 551,931 $ 182,157 As of both December 31, 2016 and 2015 , the Company had no significant equity method investments. Net Investment Income The following table sets forth the net investment income by asset class for the years ended December 31: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 249,496 $ 115,998 $ 140,114 Trading account assets 3,473 349 325 Commercial mortgage and other loans 40,258 22,696 21,802 Policy loans 444 794 739 Short-term investments 26,831 396 281 Other long-term investments 29,160 4,638 6,492 Gross investment income 349,662 144,871 169,753 Less: investment expenses (11,292 ) (5,441 ) (5,742 ) Net investment income $ 338,370 $ 139,430 $ 164,011 The carrying value of non-income producing assets included $13 million in fixed maturities as of December 31, 2016 . Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2016 . Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2016 2015 2014 (in thousands) Fixed maturities $ 86,184 $ 4,831 $ 14,706 Equity securities 0 0 1 Commercial mortgage and other loans (2,326 ) (161 ) 774 Derivatives(1) (3,526,514 ) 1,381 (8,113 ) Other long-term investments (648 ) 1 0 Short-term investments and cash equivalents 544 0 0 Realized investment gains (losses), net $ (3,442,760 ) $ 6,052 $ 7,368 (1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of December 31 for the years indicated: 2016 2015 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ (1,261 ) $ 9 $ 1 Fixed maturity securities, available-for-sale - all other (454,274 ) 90,637 191,339 Equity securities, available-for-sale (347 ) 3 3 Affiliated notes 1,181 1,660 2,351 Derivatives designated as cash flow hedges(1) 11,745 14,847 4,839 Other investments (619 ) 304 390 Net unrealized gains (losses) on investments $ (443,575 ) $ 107,460 $ 198,923 (1) See Note 11 for more information on cash flow hedges. Sec urities Lending and Repurchase Agreements In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of December 31, 2016 , the Company had $23.3 million of securities lending transactions recorded as "Cash collateral for loaned securities," of which $12.6 million were corporate securities and $10.7 million were foreign government bonds. The remaining contractual maturities of all securities lending transactions were overnight and continuous. As of December 31, 2015 , the Company had $10.6 million of securities lending transactions recorded as "Cash collateral for loaned securities," all of which were corporate securities. The remaining contractual maturities of all securities lending transactions were overnight and continuous. As of both December 31, 2016 and 2015 , the Company had no repurchase transactions. Securities Pledged and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. As of December 31 for the years indicated in the table below, the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral as reported in the Statements of Financial Position included the following: 2016 2015 (in thousands) Collateral Pledged: Fixed maturity securities, available-for-sale $ 21,908 $ 10,218 Total securities pledged $ 21,908 $ 10,218 Liabilities Supported by Pledged Collateral: Cash collateral for loaned securities $ 23,350 $ 10,568 Total liabilities supported by pledged collateral $ 23,350 $ 10,568 In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral were securities purchased under agreements to resell. The fair value of this collateral was $255.0 million as of December 31, 2016 , and there was no such collateral as of December 31, 2015 . None of the aforementioned securities had either been sold or repledged. As of December 31, 2016 and 2015 , there were fixed maturities of $7.5 million and $8.0 million , respectively, on deposit with governmental authorities or trustees as required by certain insurance laws. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 749,302 $ 1,114,431 $ 1,345,504 Capitalization of commissions, sales and issue expenses 269,679 1,535 2,804 Amortization-Impact of assumption and experience unlocking and true-ups 226,204 33,113 91,895 Amortization-All other (46,388 ) (342,265 ) (330,311 ) Changes in unrealized investment gains and losses 18,772 16,352 4,539 Ceded DAC upon reinsurance agreement with Prudential Insurance(1)(2) (7,480 ) (73,864 ) 0 Assumed DAC upon reinsurance agreement with Pruco Life(1) 3,134,272 0 0 Balance, end of year $ 4,344,361 $ 749,302 $ 1,114,431 (1) See Note 1 and Note 13 for additional information. (2) Represents a $7.5 million true-up in 2016 to the ceded DAC upon reinsurance agreement with Prudential Insurance in 2015 . |
Value of Business Acquired
Value of Business Acquired | 12 Months Ended |
Dec. 31, 2016 | |
Present Value of Future Insurance Profits [Abstract] | |
Value of Business Acquired | VALUE OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 33,640 $ 39,738 $ 43,500 Amortization-Impact of assumption and experience unlocking and true-ups (1) 2,372 3,412 5,412 Amortization-All other (1) (8,176 ) (10,477 ) (11,181 ) Interest (2) 1,939 2,436 2,615 Change in unrealized investment gains and losses 512 1,163 (608 ) Ceded VOBA upon reinsurance agreement with Prudential Insurance (3) 0 (2,632 ) 0 Balance, end of year $ 30,287 $ 33,640 $ 39,738 (1) The weighted average remaining expected life of VOBA was approximately 5.13 years as of December 31, 2016 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 6.00% , 6.05% and 6.10% for the years ended December 31, 2016 , 2015 and 2014 . (3) See Note 1 for additional information. The following table provides estimated future amortization, net of interest, for the periods indicated: 2017 2018 2019 2020 2021 (in thousands) Estimated future VOBA amortization $ 5,464 $ 4,728 $ 3,972 $ 3,350 $ 2,817 |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31 were as follows: 2016 2015 (in thousands) Life insurance – domestic $ 964 $ 75 Individual and group annuities and supplementary contracts(2) 446,318 441,595 Other contract liabilities(2) 1,267,739 3,136,992 Individual and group annuities assumed upon reinsurance agreement with Pruco Life(1) 528,210 0 Other contract liabilities assumed upon reinsurance agreement with Pruco Life(1) 6,442,965 0 Total future policy benefits $ 8,686,196 $ 3,578,662 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Life insurance liabilities include reserves for death benefits. Individual and group annuities and supplementary contract liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned premiums and certain other reserves for annuities and individual life products. Future policy benefits for domestic individual non-participating traditional life insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 0.0% to 0.0% for setting domestic insurance reserves. Future policy benefits for individual and group annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values generally range from 0.0% to 8.3% , with approximately 0.1% of the reserves based on an interest rate in excess of 8.0% . The Company’s liability for future policy benefits are primarily liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in "Other contract liabilities" in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. The interest rates used in the determination of the present values range from 1.4% to 4.1% . See Note 7 for additional information regarding liabilities for guaranteed benefits related to certain long-duration contracts. Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves have been recorded for the individual annuity business, which consists of limited-payment, long-duration; and single premium immediate annuities with life contingencies. Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated were as follows: 2016 2015 (in thousands) Interest-sensitive life contracts $ 15,666 $ 15,832 Individual annuities(2) 1,441,126 1,337,876 Guaranteed interest accounts 893,419 1,062,417 Assumed policyholders' liabilities upon reinsurance agreement with Pruco Life(1) 2,386,678 0 Total policyholders’ account balances $ 4,736,889 $ 2,416,125 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Policyholders’ account balances represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Interest crediting rates range from 3.5% to 6.0% for interest-sensitive life contracts. Interest crediting rates for individual annuities range from 0.0% to 6.5% . Interest crediting rates for guaranteed interest accounts range from 0.0% to 5.8% . |
Certain Long-Duration Contracts
Certain Long-Duration Contracts With Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company has issued variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company has also issued variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract less any partial withdrawals (“return of net deposits”), (2) total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”), or (3) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company has issued annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed-rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are allocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company issued fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or "Realized investment gains (losses), net." For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits.” As of December 31, 2016 and 2015 , the Company had the following guarantees associated with its contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death At Annuitization/ Accumulation (1) Variable Annuity Contracts (in thousands) Return of net deposits Account value $ 110,194,439 N/A $ 34,305,352 N/A Net amount at risk $ 463,423 N/A $ 341,707 N/A Average attained age of contractholders 66 years N/A 66 years N/A Minimum return or contract value Account value $ 24,725,084 $ 120,237,955 $ 6,976,880 $ 34,565,409 Net amount at risk $ 3,098,018 $ 5,041,214 $ 1,194,988 $ 2,257,837 Average attained age of contractholders 69 years 66 years 68 years 66 years Average period remaining until expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits described herein. (2) Includes assumed reinsurance business from Pruco Life. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016(1) December 31, 2015 (in thousands) Equity funds $ 77,133,820 $ 24,639,438 Bond funds 44,025,867 12,264,741 Money market funds 9,099,337 2,081,684 Total $ 130,259,024 $ 38,985,863 (1) Amounts include assumed reinsurance business from Pruco Life. In addition to the above mentioned amounts invested in separate account investment options, $4.7 billion and $2.3 billion of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options as of December 31, 2016 and 2015 , respectively. The 2016 amount includes the impact of the Variable Annuities Recapture effective April 1, 2016, as described in Note 1. For the years ended December 31, 2016 , 2015 and 2014 , there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative are recorded in “Realized investment gains (losses), net.” See Note 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The liabilities for GMAB, GMWB and GMIWB are included in “Future policy benefits.” The Company and its reinsurance affiliates maintain a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. GMDB GMAB/GMWB/ GMIWB GMIB Totals Variable Annuity (in thousands) Balance as of December 31, 2013 $ 199,870 $ 778,226 $ 11,279 $ 989,375 Incurred guarantee benefits(1) 81,524 2,334,185 8,506 2,424,215 Paid guarantee benefits (25,909 ) 0 (724 ) (26,633 ) Changes in unrealized investment gains and losses 128 0 43 171 Balance as of December 31, 2014 255,613 3,112,411 19,104 3,387,128 Incurred guarantee benefits(1) 43,167 21,666 (4,616 ) 60,217 Paid guarantee benefits (29,240 ) 0 (511 ) (29,751 ) Changes in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) Balance as of December 31, 2015 265,877 3,134,077 13,864 3,413,818 Incurred guarantee benefits(1)(2) 43,185 (1,979,215 ) (3,683 ) (1,939,713 ) Paid guarantee benefits(2) (55,604 ) 0 (2,209 ) (57,813 ) Changes in unrealized investment gains and losses(2) (5,206 ) 0 (209 ) (5,415 ) Assumed guarantees upon reinsurance agreement with Pruco Life 389,067 6,552,471 30,130 6,971,668 Balance as of December 31, 2016 $ 637,319 $ 7,707,333 $ 37,893 $ 8,382,545 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserve as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as derivatives. (2) Amounts include assumed reinsurance business from Pruco Life. The GMDB liability is determined each period end by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the death benefits in excess of the account balance. The GMIB liability associated with variable annuities is determined each period by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the projected income benefits in excess of the account balance. The portion of assessments used is chosen such that, at issue the present value of expected death benefits or expected income benefits in excess of the projected account balance and the portion of the present value of total expected assessments over the lifetime of the contracts are equal. The Company regularly evaluates the estimates used and adjusts the GMDB and GMIB liability balances with an associated charge or credit to earnings, if actual experience or other evidence suggests that earlier estimates should be revised. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option (“GRO”) features, which include an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of account balance less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then-current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs) in general guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. As part of its risk management strategy, the Company limits its exposure to these risks through a combination of product design elements, such as an asset transfer feature, and affiliated reinsurance agreements. The asset transfer feature, included in the design of certain optional living benefits, transfers assets between certain variable investments selected by the annuity contractholder and, depending on the benefit feature, a fixed rate account in the general account or a bond portfolio within the separate accounts. The transfers are based on the static mathematical formula, used with the particular optional benefit, which considers a number of factors, including, but not limited to, the impact of investment performance on the contractholder total account value. In general, but not always, negative investment performance may result in transfers to a fixed-rate account in the general account or a bond portfolio within the separate accounts, and positive investment performance may result in transfers back to contractholder-selected variable investments. Other product design elements utilized for certain products to manage these risks include asset allocation restrictions and minimum issuance age requirements. For risk management purposes, the Company segregates the variable annuity living benefit features into those that include the asset transfer feature including certain GMIWB guarantees and certain GMAB guarantees that feature the GRO policyholder benefit, and those that do not include the asset transfer feature, including certain legacy GMIWB, GMWB, GMAB and GMIB guarantees. Living benefit guarantees that include the asset transfer feature also include GMDB guarantees, and as such, the GMDB risk in these guarantees also benefits from this feature. Liabilities for guaranteed benefits for GMAB, GMWB and GMIWB features include amounts assumed from an affiliate. See Note 13 for amounts recoverable from reinsurer relating to the ceding of certain embedded derivative liabilities associated with these guaranteed benefits, which are not reflected in the tables above. Sales Inducements The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Deferred sales inducements” in the Company’s Statements of Financial Position. The Company offered various types of sales inducements. These inducements included: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (2) additional credits after a certain number of years a contract is held. Changes in DSI, reported as “Interest credited to policyholders’account balances”, are as follows: Sales Inducements (in thousands) Balance as of December 31, 2013 $ 809,247 Capitalization 11,515 Amortization - Impact of assumption and experience unlocking and true-ups 45,417 Amortization - All other (204,563 ) Change in unrealized investment gains and losses 3,591 Balance as of December 31, 2014 665,207 Capitalization 873 Amortization - Impact of assumption and experience unlocking and true-ups 21,125 Amortization - All other (206,263 ) Change in unrealized investment gains and losses 11,063 Ceded DSI upon reinsurance agreement with Prudential Insurance(1) (39,253 ) Balance as of December 31, 2015 452,752 Capitalization 1,805 Amortization - Impact of assumption and experience unlocking and true-ups 101,424 Amortization - All other (81,603 ) Change in unrealized investment gains and losses 4,915 Assumed DSI upon reinsurance agreement with Pruco Life(1) 499,530 Balance as of December 31, 2016 $ 978,823 (1) See Note 1 for additional information. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | |
Statutory Net Income and Surplus and Dividend Restrictions | STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the State of Arizona Insurance Department. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes and certain assets on a different basis. Statutory net income (loss) of the Company amounted to $(2,018) million , $340 million and $393 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Statutory surplus of the Company amounted to $5,718 million and $482 million at December 31, 2016 and 2015 , respectively. For the year ended December 31, 2016, the Company's net loss from operations was $(159) million . The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC. The Company is subject to Arizona law, which limits the amount of dividends that insurance companies can pay to stockholders. The maximum dividend, which may be paid in any twelve month period without notification or approval, is limited to the lesser of 10% of statutory surplus, as of December 31 of the preceding year, or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, the Company is not permitted to pay a dividend in 2017 without prior notification. On December 21, 2016 the Company paid an extra-ordinary dividend of $1,140 million to its parent, PAI, which was recorded as a return of capital. On December 22, 2015 and June 29, 2015, the Company paid dividends of $180 million and $270 million , respectively, to PAI. On December 19, 2014 and June 27, 2014, the Company paid dividends of $75 million and $267 million , respectively, to PAI. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Current tax expense (benefit): U.S. federal $ 2,524,458 $ 76,175 $ (8,499 ) State and local 0 0 0 Total 2,524,458 76,175 (8,499 ) Deferred tax expense (benefit): U.S. federal (3,204,951 ) (84,460 ) 17,103 State and local 0 0 0 Total (3,204,951 ) (84,460 ) 17,103 Total income tax expense (benefit) (680,493 ) (8,285 ) 8,604 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (194,446 ) (20,708 ) 7,407 Additional paid-in capital (9,531 ) 0 0 Total income tax expense (benefit) $ (884,470 ) $ (28,993 ) $ 16,011 In July 2014, IRS issued guidance relating to the hedging of variable annuity guaranteed minimum benefits (“Hedging IDD”). The Hedging IDD provides an elective safe harbor tax accounting method for certain contracts which permits the current deduction of losses and the deferral of gains for hedging activities that can be applied to open years under IRS examination beginning with the earliest open year. The Company applied this tax accounting method for hedging gains and losses covered by the Hedging IDD beginning with 2013. As a result of applying such accounting method in 2014, the Company’s 2014 U.S. current tax includes a tax benefit of $59 million and a corresponding reduction of deferred tax assets. The Company’s actual income tax expense on continuing operations for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons: 2016 2015 2014 (in thousands) Expected federal income tax expense (benefit) $ (619,704 ) $ 57,727 $ 90,780 Non-taxable investment income (49,630 ) (56,614 ) (69,122 ) Tax credits (10,507 ) (9,389 ) (13,080 ) Other (652 ) (9 ) 26 Total income tax expense (benefit) $ (680,493 ) $ (8,285 ) $ 8,604 The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is the primary component of the non-taxable investment income shown in the table above, and as such, is a significant component of the difference between the Company’s effective tax rate and the federal statutory tax rate of 35% . The DRD for the current period was estimated using information from 2015 and current year results, and was adjusted to take into account the current year’s equity market performance. The actual current year DRD can vary from the estimate based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from mutual fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Additionally, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, the issues related to the calculation of the DRD. For the last several years, the revenue proposals included in the Obama Administration’s budgets included a proposal that would change the method used to determine the amount of the DRD. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through guidance or legislation, could increase actual tax expense and reduce the Company’s net income. Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2016 2015 (in thousands) Deferred tax assets Insurance reserves $ 3,369,384 $ 156,639 Investments 418,128 0 Net unrealized loss on securities 159,362 0 Other 440 833 Deferred tax assets 3,947,314 157,472 Deferred tax liabilities VOBA and deferred policy acquisition cost 1,506,010 247,825 Investments 0 4,467 Deferred sales inducements 342,588 158,463 Net unrealized gain on securities 0 32,414 Deferred tax liabilities 1,848,598 443,169 Net deferred tax asset (liability) $ 2,098,716 $ (285,697 ) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. The Company had no valuation allowance as of December 31, 2016 and 2015 . Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable. The Company’s income (loss) from operations before income taxes includes income (loss) from domestic operations of $(1,771) million , $165 million , and $259 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). As of December 31, 2016 , 2015 , and 2014 the Company recognized nothing in the Statements of Operations and recognized no liabilities in the Statements of Financial Position for tax-related interest and penalties. The Company had zero unrecognized tax benefits as of December 31, 2016 and 2015 . The Company does not anticipate any significant changes within the next 12 months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. At December 31, 2016 , the Company remains subject to examination in the U.S. for tax years 2009 through 2015 . The Company is participating in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolution programs are available to resolve the disagreements in a timely manner before the tax returns are filed. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents, short-term investments, equity securities and derivative contracts that trade on an active exchange market. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain short-term investments, certain cash equivalents and certain OTC derivatives. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain fixed maturities, certain equity securities, certain short-term investments, certain cash equivalents, certain highly structured OTC derivative contracts and embedded derivatives resulting from reinsurance or certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 4,465,025 $ 0 $ 0 $ 4,465,025 Obligations of U.S. states and their political subdivisions 0 89,974 0 0 89,974 Foreign government bonds 0 69,299 87 0 69,386 U.S. corporate public securities 0 1,909,440 15,598 0 1,925,038 U.S. corporate private securities 0 997,004 124,864 0 1,121,868 Foreign corporate public securities 0 217,363 0 0 217,363 Foreign corporate private securities 0 526,504 11,527 0 538,031 Asset-backed securities(5) 0 219,574 31,735 0 251,309 Commercial mortgage-backed securities 0 484,713 0 0 484,713 Residential mortgage-backed securities 0 200,056 0 0 200,056 Subtotal 0 9,178,952 183,811 0 9,362,763 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 116,184 0 0 116,184 Corporate securities 0 21,632 0 0 21,632 Asset-backed securities(5) 0 1,697 0 0 1,697 Equity securities 5,494 0 4,864 0 10,358 Subtotal 5,494 139,513 4,864 0 149,871 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 519,000 392,700 450 0 912,150 Cash equivalents 738,449 847,329 375 0 1,586,153 Other long-term investments 23,967 4,872,392 0 (4,582,540 ) 313,819 Reinsurance recoverables 0 0 240,091 0 240,091 Receivables from parent and affiliates 0 6,962 33,962 0 40,924 Subtotal excluding separate account assets 1,286,910 15,437,866 463,553 (4,582,540 ) 12,605,789 Separate account assets(2) 0 37,429,739 0 0 37,429,739 Total assets $ 1,286,910 $ 52,867,605 $ 463,553 $ (4,582,540 ) $ 50,035,528 Future policy benefits(3) $ 0 $ 0 $ 7,707,333 $ 0 $ 7,707,333 Payables to parent and affiliates 0 1,654,360 0 (1,654,360 ) 0 Other liabilities 5,051 0 0 0 5,051 Total liabilities $ 5,051 $ 1,654,360 $ 7,707,333 $ (1,654,360 ) $ 7,712,384 As of December 31, 2015 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 12,154 $ 0 $ 0 $ 12,154 Obligations of U.S. states and their political subdivisions 0 20,212 0 0 20,212 Foreign government bonds 0 49,283 0 0 49,283 U.S. corporate public securities 0 934,109 15,000 0 949,109 U.S. corporate private securities 0 523,298 107,777 0 631,075 Foreign corporate public securities 0 136,222 0 0 136,222 Foreign corporate private securities 0 220,818 4,531 0 225,349 Asset-backed securities(5) 0 104,797 46,493 0 151,290 Commercial mortgage-backed securities 0 215,740 0 0 215,740 Residential mortgage-backed securities 0 133,838 0 0 133,838 Subtotal 0 2,350,471 173,801 0 2,524,272 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 0 0 0 0 Corporate securities 0 0 0 0 0 Asset-backed securities 0 0 0 0 0 Equity securities 5,653 0 0 0 5,653 Subtotal 5,653 0 0 0 5,653 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 157,257 520 450 0 158,227 Cash equivalents 0 0 225 0 225 Other long-term investments(4) 0 135,209 1,565 (21,508 ) 115,266 Reinsurance recoverables 0 0 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 29,676 7,664 0 37,340 Subtotal excluding separate account assets 162,910 2,515,893 3,196,358 (21,508 ) 5,853,653 Separate account assets(2) 0 39,250,159 0 0 39,250,159 Total assets $ 162,910 $ 41,766,052 $ 3,196,358 $ (21,508 ) $ 45,103,812 Future policy benefits(3) $ 0 $ 0 $ 3,134,077 $ 0 $ 3,134,077 Payables to parent and affiliates 0 25,277 0 (25,277 ) 0 Total liabilities $ 0 $ 25,277 $ 3,134,077 $ (25,277 ) $ 3,134,077 (1) “Netting” amounts represent cash collateral of $2,928 million and $(3.8) million as of December 31, 2016 and 2015 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Statements of Financial Position. (3) As of December 31, 2016 , the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $3,134 million includes $34 million of embedded derivatives in an asset position and $3,168 million of embedded derivatives in a liability position. (4) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (5) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds and default rates. If the pricing information received from third party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally developed valuation. As of December 31, 2016 and 2015 overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing. The fair value of private fixed maturities, which are comprised of investments in private placement securities, originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly traded or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Trading Account Assets – Trading account assets consist primarily of fixed maturities and equity securities whose fair values are determined consistent with similar instruments described under "Fixed Maturities" and “Equity Securities.” Equity Securities – Equity securities consist principally of investments in common stock of publicly traded companies, 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. Derivative Instruments – Derivatives are recorded at fair value either as assets, within “Other long-term investments,” or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant positions, and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position. The Company's exchange-traded futures include treasury and equity futures. These futures are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors, and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques, that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. As of December 31, 2016 , there were no internally valued derivatives with the fair value classified within Level 3. As of December 31, 2015 there were $1.6 million internally valued derivatives with the fair value classified within Level 3, and all other derivatives were classified within Level 2. See Note 11 for more details on the fair value of derivative instruments by primary underlying. Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been revised to conform to the current period presentation. At December 31, 2016 and 2015 , the fair values of these investments were $ 0.4 million and $ 0.6 million , respectively, which had been previously classified in Level 3 at December 31, 2015 . Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are classified within Level 2 and Level 3. Level 2 instruments are generally fair valued based on market observable inputs. Level 3 instruments are internally valued based on internal asset manager valuations. Separate Account Assets – Separate account assets include fixed maturity securities, treasuries, equity securities and mutual funds for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”. Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. Reinsurance Recoverables – Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance Recoverables” or “Reinsurance Payables” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those described below in “Future Policy Benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantee. Future Policy Benefits – The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts, including GMAB, GMWB and GMIWB, accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to contractholders less the present value of future expected rider fees attributable to the living benefit feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management's judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual contractholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the contractholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve, adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations, and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Transfers between Levels 1 and 2 – Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. During the years ended December 31, 2016 and 2015, there were no transfers between Level 1 and Level 2. Level 3 Assets and Liabilities by Price Source – The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2016 Internal(1) External(2) Total (in thousands) Foreign government bonds $ 0 $ 87 $ 87 Corporate securities(3) 136,391 15,598 151,989 Asset-backed securities(4) 0 31,735 31,735 Equity securities 1,405 3,459 4,864 Short-term investments 450 0 450 Cash equivalents 375 0 375 Other long-term investments 0 0 0 Reinsurance recoverables 240,091 0 240,091 Receivables from parent and affiliates 0 33,962 33,962 Total assets $ 378,712 $ 84,841 $ 463,553 Future policy benefits $ 7,707,333 $ 0 $ 7,707,333 Total liabilities $ 7,707,333 $ 0 $ 7,707,333 As of December 31, 2015 Internal(1) External(2) Total (in thousands) Foreign government bonds $ 0 $ 0 $ 0 Corporate securities(3) 111,295 16,013 127,308 Asset-backed securities(4) 0 46,493 46,493 Equity securities 0 0 0 Short-term investments 450 0 450 Cash equivalents 225 0 225 Other long-term investments(5) 1,565 0 1,565 Reinsurance recoverables 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 7,664 7,664 Total assets $ 3,126,188 $ 70,170 $ 3,196,358 Future policy benefits $ 3,134,077 $ 0 $ 3,134,077 Total liabilities $ 3,134,077 $ 0 $ 3,134,077 (1) Represents valuations reflecting both internally-derived and market inputs as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing-services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities, available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 3,134,077 Discounted cash flow Lapse rate(3) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Utilization rate(5) 63 % 95 % Increase Withdrawal rate(6) 74 % 100 % Increase Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit, and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. 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 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, analysis of portfolio returns to corresponding benchmark returns, back-testing, review of bid/ask spreads to assess activity, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. For living benefit features of the Company’s variable annuity products, the actuarial valuation unit periodically tests contract input data, and actuarial assumptions are reviewed at least annually and updated based upon emerging e |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also uses swaptions, interest rate caps and interest rate floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions and interest rate caps and floors are included in interest rate options. In exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the values of underlying referenced investments, and posts variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange. Equity Contracts Equity index options and futures 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 derivatives to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. Foreign Exchange Contracts Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. These earnings hedges do not qualify for hedge accounting. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty for payments made in the same currency at each due date. Credit Contracts Credit derivatives are used by the Company to enhance the return on the Company’s investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. With credit default derivatives, this premium or credit spread generally corresponds to the difference between the yield on the referenced name’s public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name, as defined by the agreement, then the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the referenced defaulted security or similar security or pay the referenced amount less the auction recovery rate. See "Credit Derivatives" below for a discussion of guarantees related to credit derivatives written. In addition to selling credit protection, the Company may purchase credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company sold variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. Related to these embedded derivatives, the Company has entered into reinsurance agreements to transfer the risk associated with certain benefit features to an affiliate, Prudential Insurance. Additionally, the Company assumed variable annuities living benefit guarantees from Pruco Life, excluding PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives accounted for in the same manner as embedded derivatives. See Note 1 for additional information on the change to the reinsurance agreements effective April 1, 2016. These derivatives are carried at fair value and are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 10 . The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host and related reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and non-performance risk. December 31, 2016 December 31, 2015 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 472,701 $ 38,249 $ (2,776 ) $ 115,358 $ 15,910 $ (206 ) Total Qualifying Hedges $ 472,701 $ 38,249 $ (2,776 ) $ 115,358 $ 15,910 $ (206 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 2,474,000 $ 23,967 $ 0 $ 0 $ 0 $ 0 Interest Rate Swaps 81,872,695 4,439,270 (1,163,388 ) 1,872,750 84,817 (13,452 ) Interest Rate Options 10,825,000 278,763 (135,554 ) 100,000 9,431 0 Interest Rate Forwards 498,311 0 (25,082 ) 0 0 0 Foreign Currency Foreign Currency Forwards 1,491 6 0 2,752 23 0 Currency/Interest Rate Foreign Currency Swaps 130,470 16,627 (635 ) 77,729 11,220 0 Equity Equity Futures 1,269,044 0 (5,051 ) 0 0 0 Total Return Swaps 12,784,166 69,827 (281,193 ) 217,999 320 (3,626 ) Equity Options 4,610,001 29,650 (45,732 ) 18,286,800 15,054 (7,993 ) Total Non-Qualifying Hedges $ 114,465,178 $ 4,858,110 $ (1,656,635 ) $ 20,558,030 $ 120,865 $ (25,071 ) Total Derivatives (1) $ 114,937,879 $ 4,896,359 $ (1,659,411 ) $ 20,673,388 $ 136,775 $ (25,277 ) (1) Excludes embedded derivatives and the related reinsurance recoverables which contain multiple underlyings. The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $7,707 million and $3,134 million as of December 31, 2016 and 2015 , respectively. The fair value of the related reinsurance recoverables was an asset of $231 million and $3,013 million as of December 31, 2016 and 2015 , respectively, included in "Reinsurance recoverables". See Note 13 for additional information on these reinsurance agreements. The fair value of the embedded derivatives pertaining to the variable annuity products with a market value adjustment option assumed from Pruco Life as part of the Variable Annuities Recapture, included in "Reinsurance payables", was a net asset of $10 million as of December 31, 2016 . Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 15 . 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 policies for securities repurchase and resale agreements, see Note 2 to the Financial Statements. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 3,006 $ 9,648 $ (3,102 ) Total cash flow hedges 0 3,006 9,648 (3,102 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,219,894 ) 0 0 0 Currency 361 0 0 0 Currency/Interest Rate 11,642 0 516 0 Credit 0 0 0 0 Equity (1,755,946 ) 0 0 0 Embedded Derivatives 437,323 0 0 0 Total non-qualifying hedges (3,526,514 ) 0 516 0 Total $ (3,526,514 ) $ 3,006 $ 10,164 $ (3,102 ) Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 608 $ 1,116 $ 10,008 Total cash flow hedges 0 608 1,116 10,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 20,536 0 0 0 Currency 115 0 0 0 Currency/Interest Rate 8,337 0 202 0 Credit (3 ) 0 0 0 Equity (3,233 ) 0 0 0 Embedded Derivatives (24,371 ) 0 0 0 Total non-qualifying hedges 1,381 0 202 0 Total $ 1,381 $ 608 $ 1,318 $ 10,008 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 14 $ 134 $ 8,492 Total cash flow hedges 0 14 134 8,492 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 123,327 0 0 0 Currency 0 0 0 0 Currency/Interest Rate 5,934 0 143 0 Credit (14 ) 0 0 0 Equity (23,811 ) 0 0 0 Embedded Derivatives (113,549 ) 0 0 0 Total non-qualifying hedges (8,113 ) 0 143 0 Total $ (8,113 ) $ 14 $ 277 $ 8,492 (1) Amounts deferred in AOCI. For the years ended December 31, 2016 , 2015 and 2014 , the ineffective portion of derivatives accounted for using hedge accounting was not material to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Presented below is a rollforward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2013 $ (3,653 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 8,640 Amount reclassified into current period earnings (148 ) Balance, December 31, 2014 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amount reclassified into current period earnings (2,070 ) Balance, December 31, 2015 14,847 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 9,698 Amounts reclassified into current period earnings (12,800 ) Balance, December 31, 2016 $ 11,745 Using December 31, 2016 values, it is estimated that a pre-tax gain of approximately $5 million will be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2017, offset by amounts pertaining to the hedged item. As of December 31, 2016 , the Company did not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 19 years . Income amounts deferred in AOCI as a result of cash flow hedges are included in "Net unrealized investment gains (losses)" within OCI in the Statements of Operations and Comprehensive Income (Loss). Credit Derivatives The Company has no exposure from credit derivative positions where it has written or purchased credit protection as of December 31, 2016 and 2015 . Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its counterparty to financial derivative transactions. The Company has credit risk exposure to an affiliate, Prudential Global Funding, LLC (“PGF”), related to its OTC derivative transactions. PGF manages credit risk with external counterparties by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral, such as cash and securities, when appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review. Under fair value measurements, the Company incorporates the market’s perception of its own and the counterparty’s non-performance risk in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company’s own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company’s counterparty’s credit spread is applied to OTC derivative net asset positions. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments The Company had made commitments to fund $9 million and $5 million of commercial loans as of December 31, 2016 and 2015, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $121 million and $53 million as of December 31, 2016 and 2015, respectively. 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 cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed, including matters discussed below. The Company estimates that as of December 31, 2016 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $150 million . This estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. Escheatment Audit and Claims Settlement Practices Market Conduct Exam In January 2012, a Global Resolution Agreement entered into by the Company and a third-party auditor became effective upon its acceptance by the unclaimed property departments of 20 states and jurisdictions. Under the terms of the Global Resolution Agreement, the third-party auditor acting on behalf of the signatory states will compare expanded matching criteria to the Social Security Master Death File (“SSMDF”) to identify deceased insureds and contractholders where a valid claim has not been made. In February 2012, a Regulatory Settlement Agreement entered into by the Company to resolve a multi-state market conduct examination regarding its adherence to state claim settlement practices became effective upon its acceptance by the insurance departments of 20 states and jurisdictions. The Regulatory Settlement Agreement applies prospectively and requires the Company to adopt and implement additional procedures comparing its records to the SSMDF to identify unclaimed death benefits and prescribes procedures for identifying and locating beneficiaries once deaths are identified. Substantially all other jurisdictions that are not signatories to the Global Resolution Agreement or the Regulatory Settlement Agreement have entered into similar agreements with the Company. The New York Attorney General has subpoenaed the Company, along with other companies, regarding its unclaimed property procedures and may ultimately seek remediation and other relief, including damages. Additionally, the New York Office of Unclaimed Funds is conducting an audit of the Company’s compliance with New York’s unclaimed property laws. Securities Lending Matter In 2016, Prudential Financial self-reported to the United States Securities and Exchange Commission (“SEC"), and notified other regulators, that in some cases it failed to maximize securities lending income due to a long-standing restriction benefiting the Prudential Financial that limited the availability of loanable securities for certain separate account investments. Prudential Financial has removed the restriction and substantially implemented a remediation plan for the benefit of customers. Prudential Financial intends to complete the remediation process. The remediation plan remains subject to regulatory review and the Company is cooperating with regulators in their review of this matter. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company uses reinsurance as part of its risk management and capital management strategies for certain of its living benefit features and variable annuity base contracts. Through March 31, 2016 , the Company reinsured its living benefit guarantees on certain variable annuity products to Pruco Re and Prudential Insurance, which are the legal entities in which the Company previously executed its living benefit hedging program. Effective April 1, 2016 the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance, as discussed further in Note 1 . In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance. This reinsurance covers new and in force business and excludes business reinsured externally. In the fourth quarter of 2015 , the Company surrendered its New York license. The Company recaptured the New York living benefits previously ceded to Pruco Re, and reinsured the majority of its New York business, both the living benefit guarantees and base contracts, to Prudential Insurance. See Note 1 for additional information. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to assume living benefit guarantees from Pruco Life, excluding PLNJ business which was reinsured to Prudential Insurance. See Note 1 for additional information on the change to the reinsurance agreements effective April 1, 2016 . These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through "Realized investment gains (losses), net". See Note 11 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company's Statements of Financial Position as of December 31, were as follows: 2016 2015 (in thousands) Reinsurance recoverables $ 588,608 $ 3,088,328 Deferred policy acquisition costs 3,557,248 (73,864 ) Deferred sales inducements 520,182 (39,253 ) Value of business acquired (2,357 ) (2,632 ) Other assets 112,802 0 Policyholders’ account balances 2,576,357 0 Future policy benefits 5,130,753 0 Reinsurance payables(1) 275,822 250,277 Other liabilities 335,713 0 (1) "Reinsurance payables" includes $0.1 million and $0.2 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. The reinsurance recoverables by counterparty are broken out below: December 31, 2016 December 31, 2015 (in thousands) Prudential Insurance $ 306,191 $ 323,363 Pruco Life 282,326 0 Pruco Re 0 2,764,927 Unaffiliated 91 38 Total reinsurance recoverables $ 588,608 $ 3,088,328 Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Premiums: Direct $ 39,326 $ 33,250 $ 34,903 Assumed 860,831 0 0 Ceded (3,318 ) (23,463 ) 0 Net premiums 896,839 9,787 34,903 Policy charges and fee income: Direct 647,226 743,956 809,072 Assumed 1,153,752 0 0 Ceded(1) (45,754 ) (3,133 ) (2,745 ) Net policy charges and fee income 1,755,224 740,823 806,327 Asset administration fees and other income: Direct 103,892 177,479 227,619 Assumed 205,221 0 0 Ceded (9,729 ) 0 0 Net asset administration fees and other income 299,384 177,479 227,619 Realized investment gains (losses), net: Direct (3,612,578 ) 247,525 (1,967,588 ) Assumed (81,510 ) 0 0 Ceded 251,328 (241,473 ) 1,974,956 Realized investment gains (losses), net (3,442,760 ) 6,052 7,368 Policyholders' benefits (including change in reserves): Direct(3) 74,438 81,719 137,502 Assumed 553,280 0 0 Ceded (2)(3) (23,661 ) (21,258 ) (367 ) Net policyholders' benefits (including change in reserves) 604,057 60,461 137,135 Interest credited to policyholders’ account balances: Direct 74,389 225,555 211,058 Assumed (1,551 ) 0 0 Ceded (3,949 ) 0 0 Net interest credited to policyholders’ account balances 68,889 225,555 211,058 Net reinsurance expense allowances, net of capitalization and amortization(3) 563,027 (6,054 ) (3,874 ) (1) "Policy charges and fee income ceded" includes $(2) million , $(3) million and $(3) million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) "Policyholders' benefits (including change in reserves) ceded" includes $(0.3) million , $(0.1) million and $(0.4) million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Prior period amounts are presented on a basis consistent with the current period presentation. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of "Accumulated other comprehensive income (loss)” for the years ended December 31, 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 $ 10 $ 70,857 $ 70,867 Change in other comprehensive income before reclassifications (63 ) 35,931 35,868 Amounts reclassified from AOCI 0 (14,706 ) (14,706 ) Income tax benefit (expense) 23 (7,430 ) (7,407 ) Balance, December 31, 2014 (30 ) 84,652 84,622 Change in other comprehensive income before reclassifications (54 ) (54,279 ) (54,333 ) Amounts reclassified from AOCI 0 (4,831 ) (4,831 ) Income tax benefit (expense) 19 20,689 20,708 Balance, December 31, 2015 (65 ) 46,231 46,166 Change in other comprehensive income before reclassifications (20 ) (469,356 ) (469,376 ) Amounts reclassified from AOCI 0 (86,184 ) (86,184 ) Income tax benefit (expense) 7 194,439 194,446 Balance, December 31, 2016 $ (78 ) $ (314,870 ) $ (314,948 ) (1) Includes cash flow hedges of $12 million , $15 million and $5 million as of December 31, 2016 , 2015 , and 2014 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 12,800 $ 2,070 $ 148 Net unrealized investment gains (losses) on available-for-sale securities 73,384 2,761 14,558 Total net unrealized investment gains (losses)(4) 86,184 4,831 14,706 Total reclassifications for the period $ 86,184 $ 4,831 $ 14,706 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 11 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs and future policy benefits. Net Unrealized Investment Gains (Losses) Net unrealized investment gains and losses on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows: Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2013 $ 323 $ (116 ) $ (14 ) $ (51 ) $ 142 Net investment gains (losses) on investments arising during the period (11 ) 0 0 4 (7 ) Reclassification adjustment for (gains) losses included in net income (311 ) 0 0 109 (202 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 116 0 (41 ) 75 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 14 (5 ) 9 Balance, December 31, 2014 1 0 0 16 17 Net investment gains (losses) on investments arising during the period (9 ) 0 0 3 (6 ) Reclassification adjustment for (gains) losses included in net income 17 0 0 (6 ) 11 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (3 ) 0 1 (2 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 0 0 0 Balance, December 31, 2015 9 (3 ) 0 14 20 Net investment gains (losses) on investments arising during the period 378 0 0 (132 ) 246 Reclassification adjustment for (gains) losses included in net income 556 0 0 (195 ) 361 Reclassification adjustment for (gains) losses excluded from net income(1) (2,204 ) 0 0 771 (1,433 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (2,130 ) 0 746 (1,384 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (522 ) 183 (339 ) Balance, December 31, 2016 $ (1,261 ) $ (2,133 ) $ (522 ) $ 1,387 $ (2,529 ) (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. 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 Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2013 $ 184,727 $ (66,452 ) $ (8,187 ) $ (39,363 ) $ 70,725 Net investment gains (losses) on investments arising during the period 28,590 0 0 (10,013 ) 18,577 Reclassification adjustment for (gains) losses included in net income (14,395 ) 0 0 5,036 (9,359 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 7,407 0 (2,594 ) 4,813 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (185 ) 64 (121 ) Balance, December 31, 2014 198,922 (59,045 ) (8,372 ) (46,870 ) 84,635 Net investment gains (losses) on investments arising during the period (86,623 ) 0 0 30,319 (56,304 ) Reclassification adjustment for (gains) losses included in net income (4,848 ) 0 0 1,697 (3,151 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 28,580 0 (10,003 ) 18,577 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 3,776 (1,322 ) 2,454 Balance, December 31, 2015 107,451 (30,465 ) (4,596 ) (26,179 ) 46,211 Net investment gains (losses) on investments arising during the period (637,597 ) 0 0 223,159 (414,438 ) Reclassification adjustment for (gains) losses included in net income 85,628 0 0 (29,970 ) 55,658 Reclassification adjustment for (gains) losses excluded from net income(2) 2,204 0 0 (771 ) 1,433 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (786 ) 0 275 (511 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (1,068 ) 374 (694 ) Balance, December 31, 2016 $ (442,314 ) $ (31,251 ) $ (5,664 ) $ 166,888 $ (312,341 ) (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock option program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock option program was $0.1 million for each of the years ended December 31, 2016 , 2015 and 2014 . The expense charged to the Company for the deferred compensation program was $0.8 million , $0.6 million and $1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $1 million for each of the years ended December 31, 2016 , 2015 and 2014 . The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $2 million , $2 million and $3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $0.5 million , $0.5 million and $0.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company pays commissions and certain other fees to 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 $108 million , $143 million and $177 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Certain operating costs, including rental of office space, furniture, and equipment, have been charged to the Company at cost by Prudential Annuities Information Services and Technology Corporation (“PAIST”), an affiliated company. The Company signed a written service agreement with PAIST for these services executed and approved by the Connecticut Insurance Department in 1995. This agreement automatically continues in effect from year to year and may be terminated by either party upon 30 days written notice. Allocated lease expense was $4 million for each of the years ended December 31, 2016 , 2015 and 2014 . Sub-lease rental income, recorded as a reduction to lease expense, was $0.0 million , $0.0 million and $1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Assuming that the written service agreement between PALAC and PAIST continues indefinitely, PALAC's allocated future minimum lease payments and sub-lease receipts per year and in aggregate as of December 31, 2016 are as follows: Lease Sub-Lease (in thousands) 2017 $ 3,055 $ 0 2018 2,992 0 2019 2,742 0 2020 2,992 0 2021 2,992 0 2022 and thereafter 2,992 0 Total $ 17,765 $ 0 Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $11 million , $5 million and $6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These expenses are recorded as “Net investment income” in the Statements of Operations and Comprehensive Income. Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 11 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other long-term investments" includes $102 million and $45 million as of December 31, 2016 and 2015 , respectively. "Net investment income" related to these ventures includes a gain of $5 million , $0.1 million and $2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. (“ASTISI”) and Prudential Investments LLC (“Prudential Investments”) whereby the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust and the Prudential Series Fund. Income received from ASTISI and Prudential Investments related to this agreement was $112 million , $173 million and $221 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These revenues are recorded as “Asset administration fees and other income” in the Statements of Operations and Comprehensive Income. Affiliated Notes Receivable Affiliated notes receivable included in "Other assets" at December 31, were as follows: Maturity Dates Interest Rates 2016 2015 (in thousands) U.S. Dollar floating rate notes 2025 - 2026 1.36% - 1.77 % $ 0 $ 24,203 U.S. Dollar fixed rate notes 2027 - 2028 2.31% - 14.85 % 40,925 10,423 Euro-denominated fixed rate notes 2025 2.30 % 0 2,714 Total long-term notes receivable - affiliated (1) $ 40,925 $ 37,340 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above include those classified as loans, and carried at unpaid principal balance, net of any allowance for losses and those classified as available-for-sale securities and other trading account assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.1 million as of both December 31, 2016 and 2015 , and is included in “Other assets”. Revenues related to these loans were $0.9 million , $1 million and $1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, and are included in “Asset administration fees and other income”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the years ended December 31, 2016 and 2015 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Gibraltar Life Insurance Co Ltd August 2016 Sale Fixed Maturity $ 11,559 $ 11,485 $ 0 $ 48 Prudential Insurance September 2016 Sale Fixed Maturity $ 47,066 $ 36,639 $ 0 $ 6,777 Pruco Re September 2016 Transfer in Fixed Maturity $ 91,586 $ 80,732 $ (7,055 ) $ 0 Debt Agreements The Company is authorized to borrow funds up to $9 billion from Prudential Financial and its affiliates to meet its capital and other funding needs. During the second quarter of 2016 , the Company was assigned the below debt from an affiliate as part of the Variable Annuities Recapture. See Note 1 for additional information on the reassignment as part of the Variable Annuities Recapture. The following table provides the breakout of the Company's short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - December 31, 2016 Amount of Notes - December 31, 2015 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 28,102 $ 0 1.89 % 6/20/2017 Prudential Insurance 4/20/2016 18,734 0 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 25,000 0 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 46,835 0 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 18,734 0 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 37,468 0 3.64 % 12/6/2020 Prudential Insurance 4/20/2016 93,671 0 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 103,038 0 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 93,671 0 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 93,671 0 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 28,102 0 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 37,468 0 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 93,671 0 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 46,835 0 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 30,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 50,000 0 3.87 % 6/28/2026 Prudential Insurance 6/28/2016 25,000 0 3.49 % 6/28/2026 Prudential Insurance 6/28/2016 26,000 0 2.59 % 6/28/2021 Prudential Insurance 6/28/2016 25,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 20,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 25,000 0 3.49 % 6/28/2026 Prudential Retirement Insurance & Annuity 6/28/2016 34,000 0 3.09 % 6/28/2023 Prudential Funding 12/30/2015 0 1,000 5.05 % 1/4/2016 Total Loans Payable to Affiliates $ 1,000,000 $ 1,000 Total interest expense to the Company related to loans payable to affiliates was $53 million , $0.0 million and $0.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Contributed Capital and Dividends In June of 2016 , the Company received a capital contribution in the amount of $8,422 million from PAI, related to the Variable Annuities Recapture, as discussed in Note 1 . For the years ended December 31, 2015 and 2014 , the Company did not receive any capital contributions. In December of 2016 , there was a $1,140 million return of capital to PAI. In June and December of 2015 , the Company paid dividends in the amounts of $270 million and $180 million , respectively, to Prudential Financial. In June and December of 2014 , the Company paid dividends in the amounts of $75 million and $267 million , respectively, to PAI. Reinsurance with affiliates As discussed in Note 13 , the Company participates in reinsurance transactions with certain affiliates. |
Contract Withdrawal Provisions
Contract Withdrawal Provisions | 12 Months Ended |
Dec. 31, 2016 | |
Contract Withdrawal Provisions [Abstract] | |
Contract Withdrawal Provisions | CONTRACT WITHDRAWAL PROVISIONS Most of the Company’s separate account liabilities are subject to discretionary withdrawal by contractholders at market value or with market value adjustment. Separate account assets, which are carried at fair value, are adequate to pay such withdrawals, which are generally subject to surrender charges ranging from 9% to 1% for contracts held less than 10 years. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 2016 (in thousands) Total revenues $ 201,095 $ (892,563 ) $ 719,985 $ (181,460 ) Total benefits and expenses 429,590 1,215,062 (149,250 ) 122,236 Income (loss) from operations before income taxes (228,495 ) (2,107,625 ) 869,235 (303,696 ) Net income (loss) $ (142,665 ) $ (1,316,230 ) $ 569,649 $ (200,842 ) 2015 Total revenues $ 305,682 $ 279,135 $ 268,802 $ 219,952 Total benefits and expenses 331,751 122,886 388,581 65,421 Income (loss) from operations before income taxes (26,069 ) 156,249 (119,779 ) 154,531 Net income (loss) $ (21,302 ) $ 131,914 $ (104,826 ) $ 167,431 The variability in the quarterly results for 2016 was primarily due to the Variable Annuities Recapture. See Note 1 for additional information. |
Significant Accounting Polici24
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining DAC and related amortization; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments in Debt, Equity Securities, and Commercial Mortgage and Other Loans | Investments The Company’s principal investments are fixed maturities, equity securities, commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to "Net investment income" in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets , at fair value represents equity securities and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value is comprised of mutual fund shares and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, and future policy benefits that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in "Net investment income". Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans, as well as, loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios considers the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consists of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for other-than-temporary impairment), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net other-than-temporary impairments recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify other-than-temporary impairments in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment an other-than-temporary impairment is recognized. When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the other-than-temporary impairment recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For other-than-temporary impairments of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an other-than-temporary impairment recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities, are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 15 . Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 4 for additional information regarding DAC. |
Deferred Sales Inducements | Deferred Sales Inducements The Company offered various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 7 for additional information regarding sales inducements. |
Value of Business Acquired | Value of Business Acquired As a result of certain acquisitions and the application of purchase accounting, the Company reports a financial asset representing VOBA. VOBA represents an adjustment to the stated value of in force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which it was acquired. The Company has established a VOBA asset primarily for its acquisition of American Skandia Life Assurance Corporation. The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General, administrative, and other expenses.” See Note 5 for additional information regarding VOBA. |
Reinsurance Recoverables | Reinsurance recoverables and Reinsurance payables Reinsurance recoverables and reinsurance payables include corresponding receivables and payables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13 . |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders. “Separate account assets” are predominantly shares in Advanced Series Trust co-managed by AST Investment Services, Incorporated (“ASISI”) and Prudential Investments LLC, which utilizes various fund managers as sub-advisors. The remaining assets are shares in other mutual funds, which are managed by independent investment firms. The contractholder has the option of directing funds to a wide variety of investment options, most of which invest in mutual funds. The investment risk on the variable portion of a contract is borne by the contractholder, except to the extent of minimum guarantees by the Company, which are not separate account liabilities. See Note 7 to the Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees and other income.” |
Other Assets and Other Liabilities | Other Assets and Other Liabilities “Other assets” consist primarily of accruals for asset administration fees, deferred loss on reinsurance with an affiliate and receivables resulting from sales of securities that had not yet settled at the balance sheet date. “Other assets” also consist of state insurance licenses. Licenses to do business in all states have been capitalized. Based on changes in facts and circumstances, effective September 30, 2012, the capitalized state insurance licenses were considered to have a finite life and are amortized over their useful life, which was estimated to be 8 years . Amortization is recorded through “General, administrative and other expenses.” “Other liabilities” consist primarily of accrued expenses, technical overdrafts, deferred gain on reinsurance with an affiliate, and payables resulting from purchases of securities that had not yet settled at the balance sheet date. Other liabilities may also include derivative instruments for which fair values are determined as described below under “Derivative Financial Instruments”. |
Future Policy Benefits | Future Policy Benefits The Company’s liability for future policy benefits is primarily comprised of liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 7 . These reserves represent reserves for the guaranteed minimum death and optional living benefit features on the Company’s variable annuity products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 10 . The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. |
Policyholders Account Balances | Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. |
Securities Repurchase and Resale Agreements | Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”; however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General, administrative and other expenses”). |
Securities Loaned Transactions | Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned transactions are with large brokerage firms and large banks. Income and expenses associated with securities loaned transactions used to earn spread income are reported as “Net investment income;” however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General, administrative and other expenses”). |
Contingent Liabilities | Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These items are recorded within “Other liabilities.” |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Revenues for variable deferred annuity contracts consist of charges against contractholder account values or separate accounts for mortality and expense risks, administration fees, surrender charges and an annual maintenance fee per contract. Revenues for mortality and expense risk charges and administration fees are recognized as assessed against the contractholder. Surrender charge revenue is recognized when the surrender charge is assessed against the contractholder at the time of surrender. Liabilities for the variable investment options on annuity contracts represent the account value of the contracts and are included in “Separate account liabilities.” Revenues for variable immediate annuity and supplementary contracts with life contingencies consist of certain charges against contractholder account values including mortality and expense risks and administration fees. These charges and fees are recognized as revenue when assessed against the contractholder. Liabilities for variable immediate annuity contracts represent the account value of the contracts and are included in “Separate account liabilities.” Revenues for fixed immediate annuity and fixed supplementary contracts with and without life contingencies consist of net investment income. In addition, revenues for fixed immediate annuity contracts with life contingencies also consist of single premium payments recognized as annuity considerations when received. Reserves for contracts without life contingencies are included in “Policyholders’ account balances” while reserves for contracts with life contingencies are included in “Future policy benefits.” Assumed interest rates ranged from 0.00% to 8.25% at December 31, 2016 and 2015 . Revenues for variable life insurance contracts consist of charges against contractholder account values or separate accounts for expense charges, administration fees, cost of insurance charges and surrender charges. Certain contracts also include charges against premium to pay state premium taxes. All of these charges are recognized as revenue when assessed against the contractholder. Liabilities for variable life insurance contracts represent the account value of the contracts and are included in “Separate account liabilities.” Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts and are discussed in further detail in Note 7 . The Company also provides contracts with certain optional living benefits which are considered embedded derivatives. These contracts are discussed in further detail in Note 7 . Amounts received as payment for variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investments in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI. |
Asset Administration Fee | Asset Administration Fees The Company receives asset administration fee income on contractholders’ account balances invested in the Advanced Series Trust, and the Prudential Series Fund (see Note 15 ), which are a portfolio of mutual fund investments related to the Company’s separate account products. In addition, the Company receives fees on contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter ("OTC") market. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 11 , all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of the effective portion of cash flow hedges. Cash flows from derivatives are reported in the operating, investing, or financing activities sections in the Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within “Other long-term investments,” or as liabilities, within “Payables to parent and affiliates,” except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge. Under such circumstances, the ineffective portion is recorded in “Realized investment gains (losses), net.” The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Statements of Operations line item associated with the hedged item. If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” The component of AOCI related to discontinued cash flow hedges is reclassified to the Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net.” Gains and losses that were in AOCI pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net.” If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to classify the entire instrument as a trading account asset and report it within “Trading account assets, at fair value.” The Company sold variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. The Company had reinsurance agreements to transfer the risks related to certain of these benefit features to affiliates, Pruco Re and Prudential Insurance through March 31, 2016. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity optional living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance, under a coinsurance and modified coinsurance agreement. See Note 1 and 13 for additional information. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits” and “Reinsurance recoverables,” respectively. Changes in the fair value are determined using valuation models as described in Note 10 , and are recorded in “Realized investment gains (losses), net.” |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General, administrative and other expenses” in the Company’s Statements of Operations. Interest expense may also be reported within “Net investment income” for certain activity, as prescribed by specialized industry guidance. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items the Company intends to refinance on a long-term basis in the near term. See Note 15 for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members with losses record tax benefits to the extent such losses are recognized in the consolidated federal tax provision. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 9 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process, the first step being recognition. The Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 9 for additional information regarding income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. There have been no ASU adopted during the current year ended December 31, 2016 . ASU issued but not yet adopted as of the reporting date December 31, 2016 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments are explicitly scoped out of the standard. January 1, 2018 using one of two retrospective application methods (early adoption permitted beginning January 1, 2017). The Company plans to adopt the standard on January 1, 2018 using the modified retrospective application. Given that insurance contracts and financial instruments are explicitly scoped out of the standard, the Company does not expect the adoption of the ASU to have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. ASU 2016-01, The ASU revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method. The amendments are to be applied prospectively as they relate to equity investments without readily determinable fair value. The Company’s equity investments, except for those accounted for using the equity method, will generally be carried on the Statements of Financial Position at fair value with changes in fair value reported in current earnings. The Company is continuing to assess additional impacts of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. ASU 2016-02 , This ASU ensures that assets and liabilities from all outstanding lease contracts are recognized on the balance sheet (with limited exception). The ASU substantially changes a Lessee’s accounting for leases and requires the recording on balance sheet of a right-of-use asset and liability to make lease payments for most leases. A Lessee will continue to recognize expense in its income statement in a manner similar to the requirements under the current lease accounting standard. For Lessors, the standard modifies classification criteria and accounting for sales-type and direct financing leases and requires a Lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a Lessee and record a lease receivable and residual asset (receivable and residual approach). The standard also eliminates the real estate specific provisions of the current standard (i.e., sale-leaseback). January 1, 2019 using the modified retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method, however prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. ASU 2016-15 , This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. Update 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements |
Business and Basis of Present25
Business and Basis of Presentation Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Cash Flow Statement [Table Text Block] | Accordingly, prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised, as presented below: (UNAUDITED) Three Months Ended March 31, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Reinsurance recoverables $ (69,025 ) $ 5,261 $ (63,764 ) Cash flows from (used in) operating activities 35,727 5,261 40,988 CASH FLOWS FROM FINANCING ACTIVITIES: Ceded policyholders’ account deposits 0 (16,249 ) (16,249 ) Ceded policyholders’ account withdrawals 0 10,988 10,988 Cash flows from (used in) financing activities (5,823 ) (5,261 ) (11,084 ) (UNAUDITED) Six Months Ended June 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ 248 $ (355 ) $ (107 ) Future policy benefits 122,101 193,147 315,248 Reinsurance recoverables (15,315 ) 279,718 264,403 Derivatives, net 10,192,618 (233,295 ) 9,959,323 Other, net 84,739 (279,768 ) (195,029 ) Cash flows from (used in) operating activities 10,936,664 (40,553 ) 10,896,111 CASH FLOWS FROM FINANCING ACTIVITIES: Policyholders’ account deposits 637,886 497,834 1,135,720 Ceded policyholders’ account deposits 0 (19,498 ) (19,498 ) Policyholders’ account withdrawals (736,708 ) (454,971 ) (1,191,679 ) Ceded policyholders’ account withdrawals 0 17,188 17,188 Cash flows from (used in) financing activities 534,651 40,553 575,204 (UNAUDITED) Nine Months Ended September 30, 2016 As Previously Reported Revision As Revised (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Policy charges and fee income $ (803 ) $ 920 $ 117 Future policy benefits (5,224 ) 535,604 530,380 Net payable to/receivable from parent and affiliates 171,317 (226,317 ) (55,000 ) Reinsurance recoverables (213,844 ) 421,353 207,509 Other, net 650,903 (791,800 ) (140,897 ) Cash flows from (used in) operating activities 10,149,084 (60,241 ) 10,088,843 CASH FLOWS FROM FINANCING ACTIVITIES: Contributed capital 781,125 79,448 860,573 Policyholders’ account deposits 2,203,234 (678,706 ) 1,524,528 Ceded policyholders’ account deposits 0 (21,033 ) (21,033 ) Policyholders’ account withdrawals (2,346,701 ) 655,334 (1,691,367 ) Ceded policyholders’ account withdrawals 0 25,198 25,198 Cash flows from (used in) financing activities 508,274 60,241 568,515 |
Effects of Reinsurance | The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 3,343 $ 3,084 $ 10,624 $ 17,051 Cash and cash equivalents 106 11 1,024 1,141 Deferred policy acquisition costs 537 0 3,134 3,671 Reinsurance recoverables 3,776 (3,401 ) 320 695 Deferred sales inducements 327 0 500 827 Income tax receivable(2) 0 115 2,441 2,556 TOTAL ASSETS 46,694 (191 ) 18,043 64,546 LIABILITIES AND EQUITY LIABILITIES Policyholders' account balances $ 2,422 $ 0 $ 2,387 $ 4,809 Future policy benefits 4,295 0 6,972 11,267 Short-term and long-term debt(3) 0 0 1,268 1,268 Other liabilities 114 0 630 744 TOTAL LIABILITIES 45,472 0 11,257 56,729 EQUITY Additional paid-in capital(4) 901 0 8,422 9,323 Retained earnings 254 (191 ) (1,600 ) (1,537 ) Accumulated other comprehensive income 64 0 (36 ) 28 TOTAL EQUITY 1,222 (191 ) 6,786 7,817 TOTAL LIABILITIES AND EQUITY 46,694 (191 ) 18,043 64,546 Significant Non-Cash Transactions (1) The increase in total investments includes non-cash activities of $ 3.1 billion for assets received related to the recapture transaction with Pruco Re, $ 7.1 billion for assets received related to the reinsurance transaction with Pruco Life and $ 3.6 billion related to non-cash capital contributions from PAI. (2) Prudential Financial contributed current tax receivables through PAI of $ 1.5 billion to the Company as part of the Variable Annuities Recapture. (3) The Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. (4) The increase in additional paid-in capital ("APIC") includes non-cash capital contributions from PAI of $ 3.6 billion in invested assets, $ 1.5 billion of current tax receivables and $ 2.5 billion funding for the ceding commission for the reinsurance transaction with Pruco Life. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ 832 $ 832 Realized investment gains (losses), net (305 ) (2,561 ) (2,866 ) TOTAL REVENUES (305 ) (1,729 ) (2,034 ) BENEFITS AND EXPENSES Policyholders' benefits 0 522 522 General, administrative and other expenses 0 310 310 TOTAL BENEFITS AND EXPENSES 0 832 832 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (305 ) (2,561 ) (2,866 ) Income tax expense (benefit) (114 ) (961 ) (1,075 ) NET INCOME (LOSS) $ (191 ) $ (1,600 ) $ (1,791 ) As part of the Variable Annuities Recapture, the Company received invested assets of $ 3.1 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016, and unwound the associated reinsurance recoverable of $ 3.4 billion . As a result of the recapture transaction, the Company recognized a loss of $ 0.3 billion immediately. For the Variable Annuities Recapture, the Company received invested assets of $ 7.1 billion as consideration from Pruco Life and established reserves of $ 9.4 billion . In addition, the Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. Also, the Company established deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances, which were equivalent to the ceding commission incurred by the Company. For the reinsurance of the variable annuity base contracts, the Company recognized a benefit of $ 0.3 billion , which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a loss of $ 2.6 billion immediately since the reinsurance contract is accounted for as free-standing derivative. The Company also received a capital contribution of $ 8.4 billion from PAI. As a result of the Variable Annuities Recapture, Pruco Re no longer had any material active reinsurance with affiliates. On September 30, 2016, Pruco Re was merged with and into the Company. The following table summarizes the asset transfers related to Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/ (Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 3,084 $ 3,084 $ 0 $ 0 Pruco Life Apr - June 2016 Purchase Fixed Maturities, Trading Account Assets, Commercial Mortgages, Derivatives, JV/LP Investments and Short-Term Investments $ 6,994 $ 6,994 $ 0 $ 0 PAI Apr - June 2016 Contributed Capital Fixed Maturities, Trading Account Assets and Derivatives $ 3,517 $ 3,517 $ 3,517 $ 0 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Fixed Maturities and Equity Securities, Available-for-sale Securities | The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 4,998,652 $ 2,487 $ 536,114 $ 4,465,025 $ 0 Obligations of U.S. states and their political subdivisions 92,107 566 2,699 89,974 0 Foreign government bonds 64,352 5,404 370 69,386 0 Public utilities 448,349 13,155 10,348 451,156 0 Redeemable preferred stock 29,581 288 633 29,236 0 All other U.S. public corporate securities 1,619,814 73,819 10,153 1,683,480 (771 ) All other U.S. private corporate securities 951,324 27,234 13,810 964,748 (694 ) All other foreign public corporate securities 183,253 5,410 1,022 187,641 0 All other foreign private corporate securities 501,140 5,349 20,450 486,039 0 Asset-backed securities(1) 248,547 3,227 465 251,309 0 Commercial mortgage-backed securities 484,673 6,793 6,753 484,713 0 Residential mortgage-backed securities(2) 196,506 4,063 513 200,056 (5 ) Total fixed maturities, available-for-sale $ 9,818,298 $ 147,795 $ 603,330 $ 9,362,763 $ (1,470 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 351 $ 0 $ 351 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 365 $ 4 $ 351 $ 18 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 12,233 $ 28 $ 107 $ 12,154 $ 0 Obligations of U.S. states and their political subdivisions 20,116 474 378 20,212 0 Foreign government bonds 43,188 6,123 28 49,283 0 Public utilities 203,803 15,969 4,263 215,509 0 Redeemable preferred stock 0 0 0 0 0 All other U.S. public corporate securities 818,627 52,866 7,717 863,776 0 All other U.S. private corporate securities 494,640 30,996 4,407 521,229 0 All other foreign public corporate securities 132,414 3,781 608 135,587 0 All other foreign private corporate securities 219,009 2,487 15,842 205,654 0 Asset-backed securities(1) 149,196 2,786 692 151,290 (35 ) Commercial mortgage-backed securities 211,429 4,963 652 215,740 0 Residential mortgage-backed securities(2) 128,971 4,886 19 133,838 (7 ) Total fixed maturities, available-for-sale $ 2,433,626 $ 125,359 $ 34,713 $ 2,524,272 $ (42 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 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. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables show the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years indicated: 2016 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 4,254,477 $ 536,114 $ 0 $ 0 $ 4,254,477 $ 536,114 Obligations of U.S. states and their political subdivisions 73,885 2,699 0 0 73,885 2,699 Foreign government bonds 32,107 370 0 0 32,107 370 Public utilities 240,041 8,019 17,097 2,329 257,138 10,348 Redeemable preferred stock 12,948 633 0 0 12,948 633 All other U.S. public corporate securities 530,904 8,798 12,981 1,355 543,885 10,153 All other U.S. private corporate securities 453,976 13,632 12,304 178 466,280 13,810 All other foreign public corporate securities 89,962 1,016 9,994 6 99,956 1,022 All other foreign private corporate securities 247,111 11,661 58,214 8,789 305,325 20,450 Asset-backed securities 67,246 439 16,489 26 83,735 465 Commercial mortgage-backed securities 293,651 6,753 0 0 293,651 6,753 Residential mortgage-backed securities 68,283 513 0 0 68,283 513 Total fixed maturities, available-for-sale $ 6,364,591 $ 590,647 $ 127,079 $ 12,683 $ 6,491,670 $ 603,330 Equity securities, available-for-sale $ 0 $ 351 $ 0 $ 0 $ 0 $ 351 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 8,480 $ 107 $ 0 $ 0 $ 8,480 $ 107 Obligations of U.S. states and their political subdivisions 6,887 378 0 0 6,887 378 Foreign government bonds 13,616 28 0 0 13,616 28 Public utilities 49,104 1,421 14,217 2,842 63,321 4,263 Redeemable preferred stock 0 0 0 0 0 0 All other U.S. public corporate securities 207,578 6,297 29,828 1,420 237,406 7,717 All other U.S. private corporate securities 84,318 4,020 3,550 387 87,868 4,407 All other foreign public corporate securities 76,573 608 0 0 76,573 608 All other foreign private corporate securities 38,047 1,972 85,341 13,870 123,388 15,842 Asset-backed securities 50,195 430 26,359 262 76,554 692 Commercial mortgage-backed securities 55,065 642 833 10 55,898 652 Residential mortgage-backed securities 2,141 19 0 0 2,141 19 Total fixed maturities, available-for-sale $ 592,004 $ 15,922 $ 160,128 $ 18,791 $ 752,132 $ 34,713 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 were as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 354,121 $ 355,252 Due after one year through five years 1,196,869 1,223,226 Due after five years through ten years 1,515,758 1,536,061 Due after ten years 5,821,824 5,312,146 Asset-backed securities 248,547 251,309 Commercial mortgage-backed securities 484,673 484,713 Residential mortgage-backed securities 196,506 200,056 Total $ 9,818,298 $ 9,362,763 |
Sources of Fixed Maturity and Equity Security Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities, for the years indicated: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale Proceeds from sales(1) $ 3,577,346 $ 33,604 $ 308,458 Proceeds from maturities/repayments(1) 495,465 453,016 681,426 Gross investment gains from sales, prepayments and maturities 98,095 5,788 18,110 Gross investment losses from sales and maturities (5,412 ) (937 ) (3,404 ) Equity securities, available-for-sale Proceeds from sales $ 0 $ 0 $ 192 Gross investment gains from sales 0 0 1 Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(2) $ (6,499 ) $ (20 ) $ 0 Writedowns for impairments on equity securities 0 0 0 (1) Includes $0.6 million , $(0.0) million and $(6.2) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Excludes the portion of OTTI recorded in OCI representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in thousands) Balance, beginning of period $ 86 $ 93 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (1,170 ) (17 ) Additional credit loss impairments recognized in the current period on securities previously impaired 0 20 Credit loss impairments recognized in the current period on securities not previously impaired 1,791 0 Increases due to the passage of time on previously recorded credit losses 25 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (14 ) (10 ) Assets transferred to parent and affiliates 607 0 Balance, end of period $ 1,325 $ 86 |
Trading Account Assets Disclosure | The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Cost Fair Value Cost Fair Value (in thousands) Fixed maturities $ 147,057 $ 139,513 $ 0 $ 0 Equity securities 7,551 10,358 5,618 5,653 Total trading account assets $ 154,608 $ 149,871 $ 5,618 $ 5,653 |
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans were comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 277,296 22.5 % $ 136,190 31.2 % Industrial 263,705 21.4 58,621 13.5 Retail 223,252 18.1 67,358 15.5 Office 294,304 23.8 100,357 23.0 Other 87,465 7.1 18,660 4.3 Hospitality 3,925 0.3 4,963 1.1 Total commercial mortgage loans 1,149,947 93.2 386,149 88.6 Agricultural property loans 84,235 6.8 49,926 11.4 Total commercial mortgage and agricultural property loans by property type 1,234,182 100.0 % 436,075 100.0 % Valuation allowance (2,289 ) (643 ) Total net commercial mortgage and agricultural property loans by property type 1,231,893 435,432 Other loans: Uncollateralized loans 0 2,740 Valuation allowance 0 0 Total net other loans 0 2,740 Total commercial mortgage and other loans $ 1,231,893 $ 438,172 |
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, was as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 622 $ 21 $ 0 $ 643 Addition to (release of) allowance for losses 1,645 1 0 1,646 Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 2,267 $ 22 $ 0 $ 2,289 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for credit losses, beginning of year $ 455 $ 27 $ 0 $ 482 Addition to (release of) allowance for losses 167 (6 ) 0 161 Charge-offs, net of recoveries 0 0 0 0 Total ending balance $ 622 $ 21 $ 0 $ 643 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Uncollateralized Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,267 22 0 2,289 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 2,267 $ 22 $ 0 $ 2,289 Recorded Investment(1): Individually evaluated for impairment $ 1,715 $ 0 $ 0 $ 1,715 Collectively evaluated for impairment 1,148,232 84,235 0 1,232,467 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 1,149,947 $ 84,235 $ 0 $ 1,234,182 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Other Loans Total (in thousands) Allowance for Credit Losses: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 622 21 0 643 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 622 $ 21 $ 0 $ 643 Recorded Investment(1): Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 Collectively evaluated for impairment 386,149 49,926 2,740 438,815 Loans acquired with deteriorated credit quality 0 0 0 0 Total ending balance $ 386,149 $ 49,926 $ 2,740 $ 438,815 (1) Recorded investment reflects the carrying value gross of related allowance. |
Credit Quality Indicators | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: Debt Service Coverage Ratio - December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,051 $ 16,921 $ 4,610 $ 688,582 60%-69.99% 406,728 0 3,817 410,545 70%-79.99% 108,770 15,493 0 124,263 80% or greater 9,725 0 1,067 10,792 Total commercial mortgage and agricultural property loans $ 1,192,274 $ 32,414 $ 9,494 $ 1,234,182 Debt Service Coverage Ratio - December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 303,215 $ 9,073 $ 992 $ 313,280 60%-69.99% 95,977 0 0 95,977 70%-79.99% 25,401 1,417 0 26,818 80% or greater 0 0 0 0 Total commercial mortgage and agricultural property loans $ 424,593 $ 10,490 $ 992 $ 436,075 |
Past Due Financing Receivables | The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 1,149,947 $ 0 $ 0 $ 0 $ 1,149,947 $ 0 Agricultural property loans 84,235 0 0 0 84,235 0 Other loans 0 0 0 0 0 0 Total commercial mortgage and other loans $ 1,234,182 $ 0 $ 0 $ 0 $ 1,234,182 $ 0 (1) There were no loans accruing interest. December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status (in thousands) Commercial mortgage loans $ 386,149 $ 0 $ 0 $ 0 $ 386,149 $ 0 Agricultural property loans 49,926 0 0 0 49,926 0 Other loans 2,740 0 0 0 2,740 0 Total commercial mortgage and other loans $ 438,815 $ 0 $ 0 $ 0 $ 438,815 $ 0 (1) There were no loans accruing interest. |
Schedule Of Other Long Term Investments | The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in thousands) Joint ventures and limited partnerships: Private equity $ 30,513 $ 22,535 Hedge funds 98,554 41,820 Real estate-related 109,043 2,535 Total joint ventures and limited partnerships 238,110 66,890 Derivatives 313,821 115,267 Total other long-term investments $ 551,931 $ 182,157 |
Net Investment Income | The following table sets forth the net investment income by asset class for the years ended December 31: 2016 2015 2014 (in thousands) Fixed maturities, available-for-sale $ 249,496 $ 115,998 $ 140,114 Trading account assets 3,473 349 325 Commercial mortgage and other loans 40,258 22,696 21,802 Policy loans 444 794 739 Short-term investments 26,831 396 281 Other long-term investments 29,160 4,638 6,492 Gross investment income 349,662 144,871 169,753 Less: investment expenses (11,292 ) (5,441 ) (5,742 ) Net investment income $ 338,370 $ 139,430 $ 164,011 |
Realized Gain (Loss) on Investments | Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2016 2015 2014 (in thousands) Fixed maturities $ 86,184 $ 4,831 $ 14,706 Equity securities 0 0 1 Commercial mortgage and other loans (2,326 ) (161 ) 774 Derivatives(1) (3,526,514 ) 1,381 (8,113 ) Other long-term investments (648 ) 1 0 Short-term investments and cash equivalents 544 0 0 Realized investment gains (losses), net $ (3,442,760 ) $ 6,052 $ 7,368 (1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. |
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class as of December 31 for the years indicated: 2016 2015 2014 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ (1,261 ) $ 9 $ 1 Fixed maturity securities, available-for-sale - all other (454,274 ) 90,637 191,339 Equity securities, available-for-sale (347 ) 3 3 Affiliated notes 1,181 1,660 2,351 Derivatives designated as cash flow hedges(1) 11,745 14,847 4,839 Other investments (619 ) 304 390 Net unrealized gains (losses) on investments $ (443,575 ) $ 107,460 $ 198,923 (1) See Note 11 for more information on cash flow hedges. |
Securities Pledged | As of December 31 for the years indicated in the table below, the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral as reported in the Statements of Financial Position included the following: 2016 2015 (in thousands) Collateral Pledged: Fixed maturity securities, available-for-sale $ 21,908 $ 10,218 Total securities pledged $ 21,908 $ 10,218 Liabilities Supported by Pledged Collateral: Cash collateral for loaned securities $ 23,350 $ 10,568 Total liabilities supported by pledged collateral $ 23,350 $ 10,568 |
Deferred Policy Acquisition C27
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Acquisition Costs Table | The balances of and changes in DAC as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 749,302 $ 1,114,431 $ 1,345,504 Capitalization of commissions, sales and issue expenses 269,679 1,535 2,804 Amortization-Impact of assumption and experience unlocking and true-ups 226,204 33,113 91,895 Amortization-All other (46,388 ) (342,265 ) (330,311 ) Changes in unrealized investment gains and losses 18,772 16,352 4,539 Ceded DAC upon reinsurance agreement with Prudential Insurance(1)(2) (7,480 ) (73,864 ) 0 Assumed DAC upon reinsurance agreement with Pruco Life(1) 3,134,272 0 0 Balance, end of year $ 4,344,361 $ 749,302 $ 1,114,431 (1) See Note 1 and Note 13 for additional information. (2) Represents a $7.5 million true-up in 2016 to the ceded DAC upon reinsurance agreement with Prudential Insurance in 2015 . |
Value of Business Acquired (Tab
Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Present Value of Future Insurance Profits [Abstract] | |
Schedule Of Present Value Of Future Insurance Profits | The balances of and changes in VOBA as of and for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Balance, beginning of year $ 33,640 $ 39,738 $ 43,500 Amortization-Impact of assumption and experience unlocking and true-ups (1) 2,372 3,412 5,412 Amortization-All other (1) (8,176 ) (10,477 ) (11,181 ) Interest (2) 1,939 2,436 2,615 Change in unrealized investment gains and losses 512 1,163 (608 ) Ceded VOBA upon reinsurance agreement with Prudential Insurance (3) 0 (2,632 ) 0 Balance, end of year $ 30,287 $ 33,640 $ 39,738 (1) The weighted average remaining expected life of VOBA was approximately 5.13 years as of December 31, 2016 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 6.00% , 6.05% and 6.10% for the years ended December 31, 2016 , 2015 and 2014 . (3) See Note 1 for additional information. |
Expected Amortization Expense of Ending Value of Future Insurance Profits | The following table provides estimated future amortization, net of interest, for the periods indicated: 2017 2018 2019 2020 2021 (in thousands) Estimated future VOBA amortization $ 5,464 $ 4,728 $ 3,972 $ 3,350 $ 2,817 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits [Abstract] | |
Schedule of Liability for Future Policy Benefits and Policyholders' Account Balances | Policyholders’ account balances at December 31 for the years indicated were as follows: 2016 2015 (in thousands) Interest-sensitive life contracts $ 15,666 $ 15,832 Individual annuities(2) 1,441,126 1,337,876 Guaranteed interest accounts 893,419 1,062,417 Assumed policyholders' liabilities upon reinsurance agreement with Pruco Life(1) 2,386,678 0 Total policyholders’ account balances $ 4,736,889 $ 2,416,125 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Future policy benefits at December 31 were as follows: 2016 2015 (in thousands) Life insurance – domestic $ 964 $ 75 Individual and group annuities and supplementary contracts(2) 446,318 441,595 Other contract liabilities(2) 1,267,739 3,136,992 Individual and group annuities assumed upon reinsurance agreement with Pruco Life(1) 528,210 0 Other contract liabilities assumed upon reinsurance agreement with Pruco Life(1) 6,442,965 0 Total future policy benefits $ 8,686,196 $ 3,578,662 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. |
Certain Long-Duration Contrac30
Certain Long-Duration Contracts With Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2016 and 2015 , the Company had the following guarantees associated with its contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death At Annuitization/ Accumulation (1) Variable Annuity Contracts (in thousands) Return of net deposits Account value $ 110,194,439 N/A $ 34,305,352 N/A Net amount at risk $ 463,423 N/A $ 341,707 N/A Average attained age of contractholders 66 years N/A 66 years N/A Minimum return or contract value Account value $ 24,725,084 $ 120,237,955 $ 6,976,880 $ 34,565,409 Net amount at risk $ 3,098,018 $ 5,041,214 $ 1,194,988 $ 2,257,837 Average attained age of contractholders 69 years 66 years 68 years 66 years Average period remaining until expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits described herein. (2) Includes assumed reinsurance business from Pruco Life. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016(1) December 31, 2015 (in thousands) Equity funds $ 77,133,820 $ 24,639,438 Bond funds 44,025,867 12,264,741 Money market funds 9,099,337 2,081,684 Total $ 130,259,024 $ 38,985,863 (1) Amounts include assumed reinsurance business from Pruco Life. |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative are recorded in “Realized investment gains (losses), net.” See Note 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The liabilities for GMAB, GMWB and GMIWB are included in “Future policy benefits.” The Company and its reinsurance affiliates maintain a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. GMDB GMAB/GMWB/ GMIWB GMIB Totals Variable Annuity (in thousands) Balance as of December 31, 2013 $ 199,870 $ 778,226 $ 11,279 $ 989,375 Incurred guarantee benefits(1) 81,524 2,334,185 8,506 2,424,215 Paid guarantee benefits (25,909 ) 0 (724 ) (26,633 ) Changes in unrealized investment gains and losses 128 0 43 171 Balance as of December 31, 2014 255,613 3,112,411 19,104 3,387,128 Incurred guarantee benefits(1) 43,167 21,666 (4,616 ) 60,217 Paid guarantee benefits (29,240 ) 0 (511 ) (29,751 ) Changes in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) Balance as of December 31, 2015 265,877 3,134,077 13,864 3,413,818 Incurred guarantee benefits(1)(2) 43,185 (1,979,215 ) (3,683 ) (1,939,713 ) Paid guarantee benefits(2) (55,604 ) 0 (2,209 ) (57,813 ) Changes in unrealized investment gains and losses(2) (5,206 ) 0 (209 ) (5,415 ) Assumed guarantees upon reinsurance agreement with Pruco Life 389,067 6,552,471 30,130 6,971,668 Balance as of December 31, 2016 $ 637,319 $ 7,707,333 $ 37,893 $ 8,382,545 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserve as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as derivatives. (2) Amounts include assumed reinsurance business from Pruco Life. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’account balances”, are as follows: Sales Inducements (in thousands) Balance as of December 31, 2013 $ 809,247 Capitalization 11,515 Amortization - Impact of assumption and experience unlocking and true-ups 45,417 Amortization - All other (204,563 ) Change in unrealized investment gains and losses 3,591 Balance as of December 31, 2014 665,207 Capitalization 873 Amortization - Impact of assumption and experience unlocking and true-ups 21,125 Amortization - All other (206,263 ) Change in unrealized investment gains and losses 11,063 Ceded DSI upon reinsurance agreement with Prudential Insurance(1) (39,253 ) Balance as of December 31, 2015 452,752 Capitalization 1,805 Amortization - Impact of assumption and experience unlocking and true-ups 101,424 Amortization - All other (81,603 ) Change in unrealized investment gains and losses 4,915 Assumed DSI upon reinsurance agreement with Pruco Life(1) 499,530 Balance as of December 31, 2016 $ 978,823 (1) See Note 1 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Current tax expense (benefit): U.S. federal $ 2,524,458 $ 76,175 $ (8,499 ) State and local 0 0 0 Total 2,524,458 76,175 (8,499 ) Deferred tax expense (benefit): U.S. federal (3,204,951 ) (84,460 ) 17,103 State and local 0 0 0 Total (3,204,951 ) (84,460 ) 17,103 Total income tax expense (benefit) (680,493 ) (8,285 ) 8,604 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (194,446 ) (20,708 ) 7,407 Additional paid-in capital (9,531 ) 0 0 Total income tax expense (benefit) $ (884,470 ) $ (28,993 ) $ 16,011 |
Schedule of Income Before Income Tax, Domestic and Foreign | The Company’s actual income tax expense on continuing operations for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from operations before income taxes for the following reasons: 2016 2015 2014 (in thousands) Expected federal income tax expense (benefit) $ (619,704 ) $ 57,727 $ 90,780 Non-taxable investment income (49,630 ) (56,614 ) (69,122 ) Tax credits (10,507 ) (9,389 ) (13,080 ) Other (652 ) (9 ) 26 Total income tax expense (benefit) $ (680,493 ) $ (8,285 ) $ 8,604 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2016 2015 (in thousands) Deferred tax assets Insurance reserves $ 3,369,384 $ 156,639 Investments 418,128 0 Net unrealized loss on securities 159,362 0 Other 440 833 Deferred tax assets 3,947,314 157,472 Deferred tax liabilities VOBA and deferred policy acquisition cost 1,506,010 247,825 Investments 0 4,467 Deferred sales inducements 342,588 158,463 Net unrealized gain on securities 0 32,414 Deferred tax liabilities 1,848,598 443,169 Net deferred tax asset (liability) $ 2,098,716 $ (285,697 ) |
Fair Value of Assets and Liab32
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 4,465,025 $ 0 $ 0 $ 4,465,025 Obligations of U.S. states and their political subdivisions 0 89,974 0 0 89,974 Foreign government bonds 0 69,299 87 0 69,386 U.S. corporate public securities 0 1,909,440 15,598 0 1,925,038 U.S. corporate private securities 0 997,004 124,864 0 1,121,868 Foreign corporate public securities 0 217,363 0 0 217,363 Foreign corporate private securities 0 526,504 11,527 0 538,031 Asset-backed securities(5) 0 219,574 31,735 0 251,309 Commercial mortgage-backed securities 0 484,713 0 0 484,713 Residential mortgage-backed securities 0 200,056 0 0 200,056 Subtotal 0 9,178,952 183,811 0 9,362,763 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 116,184 0 0 116,184 Corporate securities 0 21,632 0 0 21,632 Asset-backed securities(5) 0 1,697 0 0 1,697 Equity securities 5,494 0 4,864 0 10,358 Subtotal 5,494 139,513 4,864 0 149,871 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 519,000 392,700 450 0 912,150 Cash equivalents 738,449 847,329 375 0 1,586,153 Other long-term investments 23,967 4,872,392 0 (4,582,540 ) 313,819 Reinsurance recoverables 0 0 240,091 0 240,091 Receivables from parent and affiliates 0 6,962 33,962 0 40,924 Subtotal excluding separate account assets 1,286,910 15,437,866 463,553 (4,582,540 ) 12,605,789 Separate account assets(2) 0 37,429,739 0 0 37,429,739 Total assets $ 1,286,910 $ 52,867,605 $ 463,553 $ (4,582,540 ) $ 50,035,528 Future policy benefits(3) $ 0 $ 0 $ 7,707,333 $ 0 $ 7,707,333 Payables to parent and affiliates 0 1,654,360 0 (1,654,360 ) 0 Other liabilities 5,051 0 0 0 5,051 Total liabilities $ 5,051 $ 1,654,360 $ 7,707,333 $ (1,654,360 ) $ 7,712,384 As of December 31, 2015 Level 1 Level 2 Level 3 Netting (1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 12,154 $ 0 $ 0 $ 12,154 Obligations of U.S. states and their political subdivisions 0 20,212 0 0 20,212 Foreign government bonds 0 49,283 0 0 49,283 U.S. corporate public securities 0 934,109 15,000 0 949,109 U.S. corporate private securities 0 523,298 107,777 0 631,075 Foreign corporate public securities 0 136,222 0 0 136,222 Foreign corporate private securities 0 220,818 4,531 0 225,349 Asset-backed securities(5) 0 104,797 46,493 0 151,290 Commercial mortgage-backed securities 0 215,740 0 0 215,740 Residential mortgage-backed securities 0 133,838 0 0 133,838 Subtotal 0 2,350,471 173,801 0 2,524,272 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 0 0 0 0 Corporate securities 0 0 0 0 0 Asset-backed securities 0 0 0 0 0 Equity securities 5,653 0 0 0 5,653 Subtotal 5,653 0 0 0 5,653 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 157,257 520 450 0 158,227 Cash equivalents 0 0 225 0 225 Other long-term investments(4) 0 135,209 1,565 (21,508 ) 115,266 Reinsurance recoverables 0 0 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 29,676 7,664 0 37,340 Subtotal excluding separate account assets 162,910 2,515,893 3,196,358 (21,508 ) 5,853,653 Separate account assets(2) 0 39,250,159 0 0 39,250,159 Total assets $ 162,910 $ 41,766,052 $ 3,196,358 $ (21,508 ) $ 45,103,812 Future policy benefits(3) $ 0 $ 0 $ 3,134,077 $ 0 $ 3,134,077 Payables to parent and affiliates 0 25,277 0 (25,277 ) 0 Total liabilities $ 0 $ 25,277 $ 3,134,077 $ (25,277 ) $ 3,134,077 (1) “Netting” amounts represent cash collateral of $2,928 million and $(3.8) million as of December 31, 2016 and 2015 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Statements of Financial Position. (3) As of December 31, 2016 , the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $3,134 million includes $34 million of embedded derivatives in an asset position and $3,168 million of embedded derivatives in a liability position. (4) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (5) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
Fair Value Level Three Amounts By Pricing Source | The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2016 Internal(1) External(2) Total (in thousands) Foreign government bonds $ 0 $ 87 $ 87 Corporate securities(3) 136,391 15,598 151,989 Asset-backed securities(4) 0 31,735 31,735 Equity securities 1,405 3,459 4,864 Short-term investments 450 0 450 Cash equivalents 375 0 375 Other long-term investments 0 0 0 Reinsurance recoverables 240,091 0 240,091 Receivables from parent and affiliates 0 33,962 33,962 Total assets $ 378,712 $ 84,841 $ 463,553 Future policy benefits $ 7,707,333 $ 0 $ 7,707,333 Total liabilities $ 7,707,333 $ 0 $ 7,707,333 As of December 31, 2015 Internal(1) External(2) Total (in thousands) Foreign government bonds $ 0 $ 0 $ 0 Corporate securities(3) 111,295 16,013 127,308 Asset-backed securities(4) 0 46,493 46,493 Equity securities 0 0 0 Short-term investments 450 0 450 Cash equivalents 225 0 225 Other long-term investments(5) 1,565 0 1,565 Reinsurance recoverables 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 7,664 7,664 Total assets $ 3,126,188 $ 70,170 $ 3,196,358 Future policy benefits $ 3,134,077 $ 0 $ 3,134,077 Total liabilities $ 3,134,077 $ 0 $ 3,134,077 (1) Represents valuations reflecting both internally-derived and market inputs as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing-services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities, available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
Fair Value Inputs, Assets, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 3,134,077 Discounted cash flow Lapse rate(3) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Utilization rate(5) 63 % 95 % Increase Withdrawal rate(6) 74 % 100 % Increase Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit, and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value Inputs, Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2016 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease NPR spread(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase As of December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 3,134,077 Discounted cash flow Lapse rate(3) 0 % 14 % Decrease NPR spread(4) 0.06 % 1.76 % Decrease Utilization rate(5) 63 % 95 % Increase Withdrawal rate(6) 74 % 100 % Increase Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit, and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal assumption rate is 78% and the maximum withdrawal assumption rate may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide summaries of the changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. Year Ended December 31, 2016 Fixed Maturities Available-For-Sale Foreign Government Bonds U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities(5) Commercial Mortgage-Backed Securities (in thousands) Fair value, beginning of period $ 0 $ 15,000 $ 107,777 $ 0 $ 4,531 $ 46,493 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (4,865 ) 0 877 (26 ) 0 Asset management fees and other income 0 0 0 0 0 0 0 Included in other comprehensive income (loss) (8 ) 0 1,380 1 932 161 0 Net investment income 0 6 5,651 (1 ) 179 139 0 Purchases 0 0 14,224 0 8,647 72,939 0 Sales 0 0 (105 ) 0 0 (6,739 ) 0 Issuances 0 0 0 0 0 0 0 Settlements 0 (111 ) (1,845 ) 0 (7,129 ) (540 ) 0 Transfers into Level 3(1) 95 703 10,176 129 8,686 34,984 0 Transfers out of Level 3(1) 0 0 (7,529 ) (129 ) (5,196 ) (115,676 ) 0 Other(3) 0 0 0 0 0 0 0 Fair Value, end of period $ 87 $ 15,598 $ 124,864 $ 0 $ 11,527 $ 31,735 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (4,917 ) $ 0 $ 0 $ (26 ) $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2016 Trading Account Assets - Asset Backed Securities Trading Account Assets - Equity Securities Equity Securities, Available- for-Sale Short-term Investments Cash Equivalents (in thousands) Fair value, beginning of period $ 0 $ 0 $ 0 $ 450 $ 225 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Asset management fees and other income (161 ) (123 ) 0 0 0 Included in other comprehensive income (loss) 0 0 (351 ) 0 0 Net investment income 0 0 0 0 0 Purchases 0 3,422 351 0 150 Sales 0 0 0 0 0 Issuances 0 0 0 0 0 Settlements (2,634 ) 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 0 Transfers out of Level 3(1) 0 0 0 0 0 Other(3) 2,795 1,565 0 0 0 Fair Value, end of period $ 0 $ 4,864 $ 0 $ 450 $ 375 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ (123 ) $ 0 $ 0 $ 0 Year Ended December 31, 2016 Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair value, beginning of period $ 1,565 $ 3,012,653 $ 7,664 $ (3,134,077 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) 0 (2,852,588 ) (13 ) (3,791,759 ) Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 50 0 Net investment income 0 0 0 0 Purchases 0 70,448 34,000 0 Sales 0 0 (1,987 ) 0 Issuances 0 0 0 (781,497 ) Settlements 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 Transfers out of Level 3(1) 0 0 (2,957 ) 0 Other(3) (1,565 ) 9,578 (2,795 ) 0 Fair value, end of period $ 0 $ 240,091 $ 33,962 $ (7,707,333 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 59,501 $ 0 $ (3,740,535 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2015(4) Fixed Maturities Available-For-Sale Foreign Government Bonds U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities(5) Commercial Mortgage- Backed Securities (in thousands) Fair value, beginning of period $ 0 $ 16,860 $ 98,544 $ 0 $ 666 $ 40,524 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (16 ) 0 62 9 0 Asset management fees and other income 0 0 0 0 0 0 0 Included in other comprehensive income (loss) 0 (23 ) (2,992 ) 0 (24 ) (170 ) 0 Net investment income 0 9 5,264 0 1 49 0 Purchases 0 0 6,233 0 0 20,053 1,565 Sales 0 0 (1,548 ) 0 0 (15,878 ) 0 Issuances 0 0 0 0 0 0 0 Settlements 0 (119 ) (1,863 ) 0 (678 ) (3,704 ) 0 Transfers into Level 3(1) 0 0 4,155 0 4,504 34,921 0 Transfers out of Level 3(1) 0 (1,727 ) 0 0 0 (29,311 ) (1,565 ) Other 0 0 0 0 0 0 0 Fair value, end of period $ 0 $ 15,000 $ 107,777 $ 0 $ 4,531 $ 46,493 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2015(4) Trading Account Assets - Asset Backed Securities Trading Account Assets Equity Securities Equity Securities, Available-For-Sale Short-Term Investments Cash Equivalents (in thousands) Fair value, beginning of period $ 0 $ 0 $ 0 $ 0 $ 225 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Asset management fees and other income 0 0 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 0 0 450 0 Sales 0 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 0 Transfers out of Level 3(1) 0 0 0 0 0 Other 0 0 0 0 0 Fair value, end of period $ 0 $ 0 $ 0 $ 450 $ 225 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 Year ended December 31, 2015(4) Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair value, beginning of period $ 0 $ 2,996,154 $ 22,320 $ (3,112,411 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1,405 (212,035 ) 0 217,101 Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 (264 ) 0 Net investment income 0 0 1 0 Purchases 160 228,534 0 0 Sales 0 0 0 0 Issuances 0 0 0 (238,767 ) Settlements 0 0 0 0 Transfers into Level 3(1) 0 0 6,941 0 Transfers out of Level 3(1) 0 0 (21,334 ) 0 Other 0 0 0 0 Fair value, end of period $ 1,565 $ 3,012,653 $ 7,664 $ (3,134,077 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 1,405 $ (117,840 ) $ 0 $ 119,609 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and other comprehensive income for the year ended December 31, 2014, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2014. Year Ended December 31, 2014(4) Fixed Maturities Available-For-Sale Foreign Government Bonds U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed Securities(5) Commercial Mortgage-Backed Securities (in thousands) Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 1,423 $ 0 $ 169 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ (42 ) $ (763 ) $ 0 $ (41 ) $ 196 $ (83 ) Net investment income $ 0 $ 37 $ 4,953 $ 0 $ 34 $ 120 $ 0 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2014(4) Trading Account Assets - Asset Backed Securities Trading Account Assets - Equity Securities Equity Securities, Available-For-Sale Short-term Investments Cash Equivalents (in thousands) Total gains or (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 15 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 Net investment income $ 0 $ 0 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 15 $ 0 $ 0 $ 0 Year ended December 31, 2014 (4) Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Total gains(losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 2,013,931 $ 0 $ (2,088,505 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ 0 $ (420 ) $ 0 Net investment income $ 0 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 2,040,238 $ 0 $ (2,115,680 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 (1) Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter. (2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (3) Primarily related to private warrants reclassified from derivatives to trading securities. (4) Prior period amounts have been reclassified to conform to current period presentation, including the adoption of ASU 2015-07. (5) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (6) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represents the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2016 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,235,842 $ 1,235,842 $ 1,231,893 Policy loans 0 0 12,719 12,719 12,719 Short-term investments 0 35,000 0 35,000 35,000 Cash and cash equivalents 6,886 255,000 0 261,886 261,886 Accrued investment income 0 86,004 0 86,004 86,004 Reinsurance recoverables 0 0 63,775 63,775 63,775 Receivables from parent and affiliates 0 70,779 0 70,779 70,779 Other assets 0 53,858 0 53,858 53,858 Total assets $ 6,886 $ 500,641 $ 1,312,336 $ 1,819,863 $ 1,815,914 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 247,986 $ 247,986 $ 250,493 Cash collateral for loaned securities 0 23,350 0 23,350 23,350 Short-term debt 0 28,146 0 28,146 28,101 Long-term debt 0 994,198 0 994,198 971,899 Reinsurance Payables 0 0 63,775 63,775 63,775 Payables to parent and affiliates 0 91,432 0 91,432 91,432 Other liabilities 0 189,366 0 189,366 189,366 Separate account liabilities - investment contracts 0 187 0 187 187 Total liabilities $ 0 $ 1,326,679 $ 311,761 $ 1,638,440 $ 1,618,603 December 31, 2015(2) Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 2,793 $ 448,349 $ 451,142 $ 438,172 Policy loans 0 0 13,054 13,054 13,054 Short-term investments 0 0 0 0 0 Cash and cash equivalents 311 0 0 311 311 Accrued investment income 0 22,615 0 22,615 22,615 Reinsurance recoverables 0 0 0 0 0 Receivables from parent and affiliates 0 14,868 0 14,868 14,868 Other assets 0 1,085 0 1,085 1,085 Total assets $ 311 $ 41,361 $ 461,403 $ 503,075 $ 490,105 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 102,438 $ 102,438 $ 103,003 Cash collateral for loaned securities 0 10,568 0 10,568 10,568 Short-term debt 0 1,000 0 1,000 1,000 Long-term debt 0 0 0 0 0 Reinsurance payables 0 0 0 0 0 Payables to parent and affiliates 0 25,677 0 25,677 25,677 Other liabilities 0 83,464 0 83,464 83,464 Separate account liabilities - investment contracts 0 293 0 293 293 Total liabilities $ 0 $ 121,002 $ 102,438 $ 223,440 $ 224,005 (1) Carrying values presented herein differ from those in the Company’s Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments. (2) Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been conformed to the current period presentation. At December 31, 2016 and December 31, 2015, the fair values of these cost method investments were $3.4 million and $3.3 million , respectively, which had been previously classified in Level 3 at December 31, 2015. The carrying values of these investments were $3.1 million and $3.1 million as of December 31, 2016 and December 31, 2015, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host and related reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and non-performance risk. December 31, 2016 December 31, 2015 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 472,701 $ 38,249 $ (2,776 ) $ 115,358 $ 15,910 $ (206 ) Total Qualifying Hedges $ 472,701 $ 38,249 $ (2,776 ) $ 115,358 $ 15,910 $ (206 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 2,474,000 $ 23,967 $ 0 $ 0 $ 0 $ 0 Interest Rate Swaps 81,872,695 4,439,270 (1,163,388 ) 1,872,750 84,817 (13,452 ) Interest Rate Options 10,825,000 278,763 (135,554 ) 100,000 9,431 0 Interest Rate Forwards 498,311 0 (25,082 ) 0 0 0 Foreign Currency Foreign Currency Forwards 1,491 6 0 2,752 23 0 Currency/Interest Rate Foreign Currency Swaps 130,470 16,627 (635 ) 77,729 11,220 0 Equity Equity Futures 1,269,044 0 (5,051 ) 0 0 0 Total Return Swaps 12,784,166 69,827 (281,193 ) 217,999 320 (3,626 ) Equity Options 4,610,001 29,650 (45,732 ) 18,286,800 15,054 (7,993 ) Total Non-Qualifying Hedges $ 114,465,178 $ 4,858,110 $ (1,656,635 ) $ 20,558,030 $ 120,865 $ (25,071 ) Total Derivatives (1) $ 114,937,879 $ 4,896,359 $ (1,659,411 ) $ 20,673,388 $ 136,775 $ (25,277 ) (1) Excludes embedded derivatives and the related reinsurance recoverables which contain multiple underlyings. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 3,006 $ 9,648 $ (3,102 ) Total cash flow hedges 0 3,006 9,648 (3,102 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,219,894 ) 0 0 0 Currency 361 0 0 0 Currency/Interest Rate 11,642 0 516 0 Credit 0 0 0 0 Equity (1,755,946 ) 0 0 0 Embedded Derivatives 437,323 0 0 0 Total non-qualifying hedges (3,526,514 ) 0 516 0 Total $ (3,526,514 ) $ 3,006 $ 10,164 $ (3,102 ) Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 608 $ 1,116 $ 10,008 Total cash flow hedges 0 608 1,116 10,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 20,536 0 0 0 Currency 115 0 0 0 Currency/Interest Rate 8,337 0 202 0 Credit (3 ) 0 0 0 Equity (3,233 ) 0 0 0 Embedded Derivatives (24,371 ) 0 0 0 Total non-qualifying hedges 1,381 0 202 0 Total $ 1,381 $ 608 $ 1,318 $ 10,008 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 14 $ 134 $ 8,492 Total cash flow hedges 0 14 134 8,492 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 123,327 0 0 0 Currency 0 0 0 0 Currency/Interest Rate 5,934 0 143 0 Credit (14 ) 0 0 0 Equity (23,811 ) 0 0 0 Embedded Derivatives (113,549 ) 0 0 0 Total non-qualifying hedges (8,113 ) 0 143 0 Total $ (8,113 ) $ 14 $ 277 $ 8,492 (1) Amounts deferred in AOCI. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2013 $ (3,653 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 8,640 Amount reclassified into current period earnings (148 ) Balance, December 31, 2014 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amount reclassified into current period earnings (2,070 ) Balance, December 31, 2015 14,847 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 9,698 Amounts reclassified into current period earnings (12,800 ) Balance, December 31, 2016 $ 11,745 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact On Balance Sheet | Reinsurance amounts included in the Company's Statements of Financial Position as of December 31, were as follows: 2016 2015 (in thousands) Reinsurance recoverables $ 588,608 $ 3,088,328 Deferred policy acquisition costs 3,557,248 (73,864 ) Deferred sales inducements 520,182 (39,253 ) Value of business acquired (2,357 ) (2,632 ) Other assets 112,802 0 Policyholders’ account balances 2,576,357 0 Future policy benefits 5,130,753 0 Reinsurance payables(1) 275,822 250,277 Other liabilities 335,713 0 (1) "Reinsurance payables" includes $0.1 million and $0.2 million of unaffiliated activity as of December 31, 2016 and 2015 , respectively. |
Reinsurance Table By Affiliate | The reinsurance recoverables by counterparty are broken out below: December 31, 2016 December 31, 2015 (in thousands) Prudential Insurance $ 306,191 $ 323,363 Pruco Life 282,326 0 Pruco Re 0 2,764,927 Unaffiliated 91 38 Total reinsurance recoverables $ 588,608 $ 3,088,328 |
Reinsurance Impact On Income Statement | Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2016 2015 2014 (in thousands) Premiums: Direct $ 39,326 $ 33,250 $ 34,903 Assumed 860,831 0 0 Ceded (3,318 ) (23,463 ) 0 Net premiums 896,839 9,787 34,903 Policy charges and fee income: Direct 647,226 743,956 809,072 Assumed 1,153,752 0 0 Ceded(1) (45,754 ) (3,133 ) (2,745 ) Net policy charges and fee income 1,755,224 740,823 806,327 Asset administration fees and other income: Direct 103,892 177,479 227,619 Assumed 205,221 0 0 Ceded (9,729 ) 0 0 Net asset administration fees and other income 299,384 177,479 227,619 Realized investment gains (losses), net: Direct (3,612,578 ) 247,525 (1,967,588 ) Assumed (81,510 ) 0 0 Ceded 251,328 (241,473 ) 1,974,956 Realized investment gains (losses), net (3,442,760 ) 6,052 7,368 Policyholders' benefits (including change in reserves): Direct(3) 74,438 81,719 137,502 Assumed 553,280 0 0 Ceded (2)(3) (23,661 ) (21,258 ) (367 ) Net policyholders' benefits (including change in reserves) 604,057 60,461 137,135 Interest credited to policyholders’ account balances: Direct 74,389 225,555 211,058 Assumed (1,551 ) 0 0 Ceded (3,949 ) 0 0 Net interest credited to policyholders’ account balances 68,889 225,555 211,058 Net reinsurance expense allowances, net of capitalization and amortization(3) 563,027 (6,054 ) (3,874 ) (1) "Policy charges and fee income ceded" includes $(2) million , $(3) million and $(3) million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) "Policyholders' benefits (including change in reserves) ceded" includes $(0.3) million , $(0.1) million and $(0.4) million of unaffiliated activity for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Prior period amounts are presented on a basis consistent with the current period presentation. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of "Accumulated other comprehensive income (loss)” for the years ended December 31, 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 $ 10 $ 70,857 $ 70,867 Change in other comprehensive income before reclassifications (63 ) 35,931 35,868 Amounts reclassified from AOCI 0 (14,706 ) (14,706 ) Income tax benefit (expense) 23 (7,430 ) (7,407 ) Balance, December 31, 2014 (30 ) 84,652 84,622 Change in other comprehensive income before reclassifications (54 ) (54,279 ) (54,333 ) Amounts reclassified from AOCI 0 (4,831 ) (4,831 ) Income tax benefit (expense) 19 20,689 20,708 Balance, December 31, 2015 (65 ) 46,231 46,166 Change in other comprehensive income before reclassifications (20 ) (469,356 ) (469,376 ) Amounts reclassified from AOCI 0 (86,184 ) (86,184 ) Income tax benefit (expense) 7 194,439 194,446 Balance, December 31, 2016 $ (78 ) $ (314,870 ) $ (314,948 ) (1) Includes cash flow hedges of $12 million , $15 million and $5 million as of December 31, 2016 , 2015 , and 2014 , respectively. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 12,800 $ 2,070 $ 148 Net unrealized investment gains (losses) on available-for-sale securities 73,384 2,761 14,558 Total net unrealized investment gains (losses)(4) 86,184 4,831 14,706 Total reclassifications for the period $ 86,184 $ 4,831 $ 14,706 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 11 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs and future policy benefits. |
Net Unrealized Investment Gains (Losses) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains and losses, are as follows: Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2013 $ 323 $ (116 ) $ (14 ) $ (51 ) $ 142 Net investment gains (losses) on investments arising during the period (11 ) 0 0 4 (7 ) Reclassification adjustment for (gains) losses included in net income (311 ) 0 0 109 (202 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 116 0 (41 ) 75 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 14 (5 ) 9 Balance, December 31, 2014 1 0 0 16 17 Net investment gains (losses) on investments arising during the period (9 ) 0 0 3 (6 ) Reclassification adjustment for (gains) losses included in net income 17 0 0 (6 ) 11 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (3 ) 0 1 (2 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 0 0 0 Balance, December 31, 2015 9 (3 ) 0 14 20 Net investment gains (losses) on investments arising during the period 378 0 0 (132 ) 246 Reclassification adjustment for (gains) losses included in net income 556 0 0 (195 ) 361 Reclassification adjustment for (gains) losses excluded from net income(1) (2,204 ) 0 0 771 (1,433 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (2,130 ) 0 746 (1,384 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (522 ) 183 (339 ) Balance, December 31, 2016 $ (1,261 ) $ (2,133 ) $ (522 ) $ 1,387 $ (2,529 ) (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward | All Other Net Unrealized Investment Gains and Losses in AOCI Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2013 $ 184,727 $ (66,452 ) $ (8,187 ) $ (39,363 ) $ 70,725 Net investment gains (losses) on investments arising during the period 28,590 0 0 (10,013 ) 18,577 Reclassification adjustment for (gains) losses included in net income (14,395 ) 0 0 5,036 (9,359 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 7,407 0 (2,594 ) 4,813 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (185 ) 64 (121 ) Balance, December 31, 2014 198,922 (59,045 ) (8,372 ) (46,870 ) 84,635 Net investment gains (losses) on investments arising during the period (86,623 ) 0 0 30,319 (56,304 ) Reclassification adjustment for (gains) losses included in net income (4,848 ) 0 0 1,697 (3,151 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 28,580 0 (10,003 ) 18,577 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 3,776 (1,322 ) 2,454 Balance, December 31, 2015 107,451 (30,465 ) (4,596 ) (26,179 ) 46,211 Net investment gains (losses) on investments arising during the period (637,597 ) 0 0 223,159 (414,438 ) Reclassification adjustment for (gains) losses included in net income 85,628 0 0 (29,970 ) 55,658 Reclassification adjustment for (gains) losses excluded from net income(2) 2,204 0 0 (771 ) 1,433 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (786 ) 0 275 (511 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (1,068 ) 374 (694 ) Balance, December 31, 2016 $ (442,314 ) $ (31,251 ) $ (5,664 ) $ 166,888 $ (312,341 ) (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Operating Leases of Lessee Disclosure | Assuming that the written service agreement between PALAC and PAIST continues indefinitely, PALAC's allocated future minimum lease payments and sub-lease receipts per year and in aggregate as of December 31, 2016 are as follows: Lease Sub-Lease (in thousands) 2017 $ 3,055 $ 0 2018 2,992 0 2019 2,742 0 2020 2,992 0 2021 2,992 0 2022 and thereafter 2,992 0 Total $ 17,765 $ 0 |
Affiliated Notes Receivable | Affiliated notes receivable included in "Other assets" at December 31, were as follows: Maturity Dates Interest Rates 2016 2015 (in thousands) U.S. Dollar floating rate notes 2025 - 2026 1.36% - 1.77 % $ 0 $ 24,203 U.S. Dollar fixed rate notes 2027 - 2028 2.31% - 14.85 % 40,925 10,423 Euro-denominated fixed rate notes 2025 2.30 % 0 2,714 Total long-term notes receivable - affiliated (1) $ 40,925 $ 37,340 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the years ended December 31, 2016 and 2015 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value Additional Paid-in Capital, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Gibraltar Life Insurance Co Ltd August 2016 Sale Fixed Maturity $ 11,559 $ 11,485 $ 0 $ 48 Prudential Insurance September 2016 Sale Fixed Maturity $ 47,066 $ 36,639 $ 0 $ 6,777 Pruco Re September 2016 Transfer in Fixed Maturity $ 91,586 $ 80,732 $ (7,055 ) $ 0 |
Debt Agreements | The following table provides the breakout of the Company's short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - December 31, 2016 Amount of Notes - December 31, 2015 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 28,102 $ 0 1.89 % 6/20/2017 Prudential Insurance 4/20/2016 18,734 0 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 25,000 0 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 46,835 0 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 18,734 0 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 37,468 0 3.64 % 12/6/2020 Prudential Insurance 4/20/2016 93,671 0 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 103,038 0 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 93,671 0 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 93,671 0 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 28,102 0 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 37,468 0 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 93,671 0 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 46,835 0 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 30,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 50,000 0 3.87 % 6/28/2026 Prudential Insurance 6/28/2016 25,000 0 3.49 % 6/28/2026 Prudential Insurance 6/28/2016 26,000 0 2.59 % 6/28/2021 Prudential Insurance 6/28/2016 25,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 20,000 0 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 25,000 0 3.49 % 6/28/2026 Prudential Retirement Insurance & Annuity 6/28/2016 34,000 0 3.09 % 6/28/2023 Prudential Funding 12/30/2015 0 1,000 5.05 % 1/4/2016 Total Loans Payable to Affiliates $ 1,000,000 $ 1,000 |
Quarterly Results of Operatio37
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 2016 (in thousands) Total revenues $ 201,095 $ (892,563 ) $ 719,985 $ (181,460 ) Total benefits and expenses 429,590 1,215,062 (149,250 ) 122,236 Income (loss) from operations before income taxes (228,495 ) (2,107,625 ) 869,235 (303,696 ) Net income (loss) $ (142,665 ) $ (1,316,230 ) $ 569,649 $ (200,842 ) 2015 Total revenues $ 305,682 $ 279,135 $ 268,802 $ 219,952 Total benefits and expenses 331,751 122,886 388,581 65,421 Income (loss) from operations before income taxes (26,069 ) 156,249 (119,779 ) 154,531 Net income (loss) $ (21,302 ) $ 131,914 $ (104,826 ) $ 167,431 |
Business and Basis of Present38
Business and Basis of Presentation Business and Basis of Presentation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ASSETS | |||||||||||||||
Total Investments | $ 12,256,345 | $ 3,321,552 | $ 12,256,345 | $ 3,321,552 | |||||||||||
Cash and Cash Equivalents | 1,848,039 | 536 | 1,848,039 | 536 | $ 594 | $ 1,417 | |||||||||
Deferred policy acquisition costs | 4,344,361 | 749,302 | 4,344,361 | 749,302 | 1,114,431 | 1,345,504 | |||||||||
Reinsurance recoverables | 588,608 | 3,088,328 | 588,608 | 3,088,328 | |||||||||||
Deferred sales inducements | 978,823 | 452,752 | 978,823 | 452,752 | 665,207 | $ 809,247 | |||||||||
TOTAL ASSETS | 59,822,165 | 47,254,738 | 59,822,165 | 47,254,738 | |||||||||||
Increase (decrease) in Cash and cash equivalent | 1,847,503 | (58) | (823) | ||||||||||||
Increase (decrease) in Deferred Policy Acquisition Costs | 449,496 | (381,480) | (235,612) | ||||||||||||
Increase (decrease) in Reinsurance Recoverable | $ 63,764 | $ (264,403) | $ (207,509) | (199,107) | 270,868 | 273,480 | |||||||||
Increase (decrease) in Deferred Sales Inducements | 1,805 | (38,380) | 11,515 | ||||||||||||
Liabilities: | |||||||||||||||
Policyholders’ account balances | 4,736,889 | 2,416,125 | 4,736,889 | 2,416,125 | |||||||||||
Future policy benefits | 8,686,196 | 3,578,662 | 8,686,196 | 3,578,662 | |||||||||||
Other liabilities | 489,007 | 100,401 | 489,007 | 100,401 | |||||||||||
TOTAL LIABILITIES | 52,732,435 | 45,907,820 | 52,732,435 | 45,907,820 | |||||||||||
Future policy benefits | 315,248 | 530,380 | 759,604 | 238,052 | 324,284 | ||||||||||
EQUITY | |||||||||||||||
Additional paid-in capital | 8,095,436 | 901,422 | 8,095,436 | 901,422 | |||||||||||
Retained earnings/(accumulated deficit) | (693,258) | 396,830 | (693,258) | 396,830 | |||||||||||
Accumulated other comprehensive income | (314,948) | 46,166 | (314,948) | 46,166 | |||||||||||
TOTAL EQUITY | 7,089,730 | 1,346,918 | 7,089,730 | 1,346,918 | |||||||||||
TOTAL LIABILITIES AND EQUITY | 59,822,165 | 47,254,738 | 59,822,165 | 47,254,738 | |||||||||||
REVENUES | |||||||||||||||
Premiums | 896,839 | 9,787 | 34,903 | ||||||||||||
Realized investment gains (losses), net | (3,442,760) | 6,052 | 7,368 | ||||||||||||
Total revenues | (181,460) | $ 719,985 | $ (892,563) | 201,095 | 219,952 | $ 268,802 | $ 279,135 | $ 305,682 | (152,943) | 1,073,571 | 1,240,228 | ||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders’ benefits | (604,057) | (60,461) | (137,135) | ||||||||||||
Total benefits and expenses | (122,236) | 149,250 | (1,215,062) | (429,590) | (65,421) | (388,581) | (122,886) | (331,751) | (1,617,638) | (908,639) | (980,857) | ||||
Total income tax expense (benefit) | (680,493) | (8,285) | 8,604 | ||||||||||||
Net income (loss) | (200,842) | $ 569,649 | (1,316,230) | (142,665) | 167,431 | $ (104,826) | $ 131,914 | $ (21,302) | (1,090,088) | 173,217 | 250,767 | ||||
Contributed capital | $ 860,573 | 860,573 | 0 | $ 0 | |||||||||||
Prudential Financial | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Contributed capital | 8,400,000 | ||||||||||||||
Reinsurance | |||||||||||||||
ASSETS | |||||||||||||||
Deferred policy acquisition costs | 3,557,248 | (73,864) | 3,557,248 | (73,864) | |||||||||||
Deferred sales inducements | 520,182 | (39,253) | 520,182 | (39,253) | |||||||||||
Liabilities: | |||||||||||||||
Policyholders’ account balances | 2,576,357 | 0 | 2,576,357 | 0 | |||||||||||
Future policy benefits | 5,130,753 | 0 | 5,130,753 | 0 | |||||||||||
Other liabilities | $ 335,713 | $ 0 | 335,713 | $ 0 | |||||||||||
Variable Annuity | Items Effected By Recapture And Reinsurance Transactions [Member] | |||||||||||||||
ASSETS | |||||||||||||||
Total Investments | $ 17,051,000 | 3,343,000 | |||||||||||||
Cash and Cash Equivalents | 1,141,000 | 106,000 | |||||||||||||
Deferred policy acquisition costs | 3,671,000 | 537,000 | |||||||||||||
Reinsurance recoverables | 695,000 | 3,776,000 | |||||||||||||
Deferred sales inducements | 827,000 | 327,000 | |||||||||||||
Income Taxes | 2,556,000 | 0 | |||||||||||||
TOTAL ASSETS | 64,546,000 | 46,694,000 | |||||||||||||
Liabilities: | |||||||||||||||
Policyholders’ account balances | 4,809,000 | 2,422,000 | |||||||||||||
Future policy benefits | 11,267,000 | 4,295,000 | |||||||||||||
Debt | 1,268,000 | 0 | |||||||||||||
Other liabilities | 744,000 | 114,000 | |||||||||||||
TOTAL LIABILITIES | 56,729,000 | 45,472,000 | |||||||||||||
EQUITY | |||||||||||||||
Additional paid-in capital | 9,323,000 | 901,000 | |||||||||||||
Retained earnings/(accumulated deficit) | (1,537,000) | 254,000 | |||||||||||||
Accumulated other comprehensive income | 28,000 | 64,000 | |||||||||||||
TOTAL EQUITY | 7,817,000 | 1,222,000 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | 64,546,000 | $ 46,694,000 | |||||||||||||
REVENUES | |||||||||||||||
Premiums | 832,000 | ||||||||||||||
Realized investment gains (losses), net | (2,866,000) | ||||||||||||||
Total revenues | (2,034,000) | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders’ benefits | 522,000 | ||||||||||||||
General, administrative and other expenses | 310,000 | ||||||||||||||
Total benefits and expenses | 832,000 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,866,000) | ||||||||||||||
Total income tax expense (benefit) | (1,075,000) | ||||||||||||||
Net income (loss) | (1,791,000) | ||||||||||||||
Variable Annuity | Items Effected By Recapture And Reinsurance Transactions [Member] | Pruco Re Purchase | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | 3,084,000 | 3,084,000 | |||||||||||||
Book Value | 3,100,000 | 3,084,000 | 3,084,000 | ||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 | 0 | |||||||||||||
Realized Investment Gain/ (Loss), Net of Tax | 0 | ||||||||||||||
Variable Annuity | Items Effected By Recapture And Reinsurance Transactions [Member] | Pruco Life Purchase | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | 6,994,000 | 6,994,000 | |||||||||||||
Book Value | 6,994,000 | 6,994,000 | |||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 | 0 | |||||||||||||
Realized Investment Gain/ (Loss), Net of Tax | 0 | ||||||||||||||
Variable Annuity | Items Effected By Recapture And Reinsurance Transactions [Member] | Prudential Financial Capital Contribution | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Fair Value | 3,517,000 | 3,517,000 | |||||||||||||
Book Value | 3,517,000 | 3,517,000 | |||||||||||||
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 3,517,000 | $ 3,517,000 | |||||||||||||
Realized Investment Gain/ (Loss), Net of Tax | 0 | ||||||||||||||
Variable Annuity | Recapture | |||||||||||||||
ASSETS | |||||||||||||||
Increase (decrease) in Total Investments | 3,084,000 | 3,100,000 | |||||||||||||
Increase (decrease) in Cash and cash equivalent | 11,000 | ||||||||||||||
Increase (decrease) in Deferred Policy Acquisition Costs | 0 | ||||||||||||||
Increase (decrease) in Reinsurance Recoverable | (3,401,000) | ||||||||||||||
Increase (decrease) in Deferred Sales Inducements | 0 | ||||||||||||||
Increase (decrease) in Income taxes | 115,000 | ||||||||||||||
Increase (decrease) in TOTAL ASSETS | (191,000) | ||||||||||||||
Liabilities: | |||||||||||||||
Increase (decrease) in Policyholders' account balances | 0 | ||||||||||||||
Future policy benefits | 0 | ||||||||||||||
Increase (decrease) in Debt | 0 | ||||||||||||||
Increase (Decrease) in Other liabilities | 0 | ||||||||||||||
Increase (decrease) in LIABILITIES | 0 | ||||||||||||||
EQUITY | |||||||||||||||
Increase (decrease) in Additional paid in capital | 0 | ||||||||||||||
Increase (decrease) in Retained earnings | (191,000) | ||||||||||||||
Increase (decrease) In Accumulated Other Comprehensive Income | 0 | ||||||||||||||
Increase (decrease) in TOTAL EQUITY | (191,000) | ||||||||||||||
Increase (decrease) in TOTAL LIABILITIES AND EQUITY | (191,000) | ||||||||||||||
Insurance Commissions | 3,600,000 | ||||||||||||||
REVENUES | |||||||||||||||
Premiums | 0 | ||||||||||||||
Realized investment gains (losses), net | (305,000) | ||||||||||||||
Total revenues | (305,000) | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders’ benefits | 0 | ||||||||||||||
General, administrative and other expenses | 0 | ||||||||||||||
Total benefits and expenses | 0 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (305,000) | ||||||||||||||
Total income tax expense (benefit) | (114,000) | ||||||||||||||
Net income (loss) | (191,000) | ||||||||||||||
Variable Annuity | Recapture | Pruco Life | |||||||||||||||
EQUITY | |||||||||||||||
Repayments of Debt | 1,100,000 | ||||||||||||||
Variable Annuity | Recapture | Pruco Re | |||||||||||||||
ASSETS | |||||||||||||||
Increase (decrease) in Reinsurance Recoverable | 3,400,000 | ||||||||||||||
Variable Annuity | Reinsurance | |||||||||||||||
ASSETS | |||||||||||||||
Increase (decrease) in Total Investments | 10,624,000 | ||||||||||||||
Increase (decrease) in Cash and cash equivalent | 1,024,000 | ||||||||||||||
Increase (decrease) in Deferred Policy Acquisition Costs | 3,134,000 | ||||||||||||||
Increase (decrease) in Reinsurance Recoverable | 320,000 | ||||||||||||||
Increase (decrease) in Deferred Sales Inducements | 500,000 | ||||||||||||||
Increase (decrease) in Income taxes | 2,441,000 | ||||||||||||||
Increase (decrease) in TOTAL ASSETS | 18,043,000 | ||||||||||||||
Liabilities: | |||||||||||||||
Increase (decrease) in Policyholders' account balances | 2,387,000 | ||||||||||||||
Future policy benefits | 6,972,000 | ||||||||||||||
Increase (decrease) in Debt | 1,268,000 | ||||||||||||||
Increase (Decrease) in Other liabilities | 630,000 | ||||||||||||||
Increase (decrease) in LIABILITIES | 11,257,000 | ||||||||||||||
EQUITY | |||||||||||||||
Increase (decrease) in Additional paid in capital | 8,422,000 | ||||||||||||||
Increase (decrease) in Retained earnings | (1,600,000) | ||||||||||||||
Increase (decrease) In Accumulated Other Comprehensive Income | (36,000) | ||||||||||||||
Increase (decrease) in TOTAL EQUITY | 6,786,000 | ||||||||||||||
Increase (decrease) in TOTAL LIABILITIES AND EQUITY | 18,043,000 | ||||||||||||||
REVENUES | |||||||||||||||
Premiums | 832,000 | ||||||||||||||
Realized investment gains (losses), net | (2,561,000) | ||||||||||||||
Total revenues | (1,729,000) | ||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Policyholders’ benefits | 522,000 | ||||||||||||||
General, administrative and other expenses | 310,000 | ||||||||||||||
Total benefits and expenses | 832,000 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,561,000) | ||||||||||||||
Total income tax expense (benefit) | (961,000) | ||||||||||||||
Net income (loss) | $ (1,600,000) | ||||||||||||||
Variable Annuity | Reinsurance | Pruco Life Purchase | |||||||||||||||
BENEFITS AND EXPENSES | |||||||||||||||
Book Value | $ 7,100,000 | ||||||||||||||
Variable Annuity | Reinsurance | Pruco Life | |||||||||||||||
ASSETS | |||||||||||||||
Increase (decrease) in Total Investments | 7,100,000 | ||||||||||||||
Increase (decrease) in Reinsurance Recoverable | 9,400,000 | ||||||||||||||
EQUITY | |||||||||||||||
Increase (decrease) in Income Taxes Receivable | 1,500,000 | ||||||||||||||
Fees and Commissions | 2,500,000 | ||||||||||||||
Variable Annuity | Reinsurance | Prudential Financial | |||||||||||||||
EQUITY | |||||||||||||||
Increase (decrease) in Income Taxes Receivable | 1,500,000 | ||||||||||||||
Variable Annuity | Reinsurance | PAI | |||||||||||||||
ASSETS | |||||||||||||||
Increase (decrease) in Total Investments | 3,600,000 | ||||||||||||||
EQUITY | |||||||||||||||
Increase (decrease) in Additional paid in capital | $ 3,600,000 |
Business and Basis of Present39
Business and Basis of Presentation - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Policy charges and fee income | $ (107) | $ 117 | $ (245) | $ 907 | $ 3,491 | |
Future policy benefits | 315,248 | 530,380 | 759,604 | 238,052 | 324,284 | |
Increase (Decrease) Due from Affiliates | (55,000) | 55,984 | (61,252) | 26,936 | ||
Reinsurance recoverables | $ (63,764) | 264,403 | 207,509 | 199,107 | (270,868) | (273,480) |
Derivatives, net | 9,959,323 | 2,605,415 | 21,581 | (415) | ||
Increase (Decrease) in Deferred Charges | (305,464) | 118,028 | 0 | |||
Other, net | (195,029) | (140,897) | (54,819) | (3,508) | (1,804) | |
Cash flows from (used in) operating activities | 40,988 | 10,896,111 | 10,088,843 | 4,963,727 | 739,697 | 529,394 |
Contributed capital | 860,573 | 860,573 | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Policyholders’ account deposits | 1,135,720 | 1,524,528 | 2,116,567 | 1,295,546 | 1,375,761 | |
Ceded policyholders’ account deposits | (16,249) | (19,498) | (21,033) | (23,890) | (54,027) | 0 |
Policyholders’ account withdrawals | (1,191,679) | (1,691,367) | (2,259,445) | (1,511,470) | (1,875,118) | |
Ceded policyholders' account withdrawals | 10,988 | 17,188 | 25,198 | 28,004 | 0 | 0 |
Cash flows from (used in) financing activities | (11,084) | 575,204 | 568,515 | $ (543,632) | $ (769,685) | $ (1,041,025) |
As Previously Reported | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Policy charges and fee income | 248 | (803) | ||||
Future policy benefits | 122,101 | (5,224) | ||||
Increase (Decrease) Due from Affiliates | 171,317 | |||||
Reinsurance recoverables | (69,025) | (15,315) | (213,844) | |||
Derivatives, net | 10,192,618 | |||||
Other, net | 84,739 | 650,903 | ||||
Cash flows from (used in) operating activities | 35,727 | 10,936,664 | 10,149,084 | |||
Contributed capital | 781,125 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Policyholders’ account deposits | 637,886 | 2,203,234 | ||||
Ceded policyholders’ account deposits | 0 | 0 | 0 | |||
Policyholders’ account withdrawals | (736,708) | (2,346,701) | ||||
Ceded policyholders' account withdrawals | 0 | 0 | 0 | |||
Cash flows from (used in) financing activities | (5,823) | 534,651 | 508,274 | |||
Revision | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Policy charges and fee income | (355) | 920 | ||||
Future policy benefits | 193,147 | 535,604 | ||||
Increase (Decrease) Due from Affiliates | (226,317) | |||||
Reinsurance recoverables | 5,261 | 279,718 | 421,353 | |||
Derivatives, net | (233,295) | |||||
Other, net | (279,768) | (791,800) | ||||
Cash flows from (used in) operating activities | 5,261 | (40,553) | (60,241) | |||
Contributed capital | 79,448 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Policyholders’ account deposits | 497,834 | (678,706) | ||||
Ceded policyholders’ account deposits | (16,249) | (19,498) | (21,033) | |||
Policyholders’ account withdrawals | (454,971) | 655,334 | ||||
Ceded policyholders' account withdrawals | 10,988 | 17,188 | 25,198 | |||
Cash flows from (used in) financing activities | $ (5,261) | $ 40,553 | $ 60,241 |
Significant Accounting Polici40
Significant Accounting Policies and Pronouncements (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | ||
Intangible asset useful life | 8 years | |
Loan-to- value ratios (greater than) | 100.00% | |
Loan-to-value ratios (less than) | 100.00% | |
Debt service coverage ratios (less than) | 1 | |
Debt service coverage ratios (greater than) | 1 | |
Partnership Interest (less than) | 3.00% | |
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102.00% | |
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105.00% | |
Assumed Interest Rate - Minimum | 0.00% | 0.00% |
Assumed Interest Rate - Maximum | 8.25% | 8.25% |
Uncertain tax positions measurement percentage | 50.00% | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% | |
Investee Financial Information, Lag Period | 1 month | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Investee Financial Information, Lag Period | 3 months |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | $ 9,818,298 | $ 2,433,626 |
Fair Value | 9,362,763 | 2,524,272 |
Amortized Cost | 365 | 14 |
Fair Value | 18 | 17 |
Asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 251,309 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 248,547 | |
Commercial mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 484,713 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 484,673 | |
Residential mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 200,056 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 196,506 | |
Fixed maturities, available-for-sale | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 9,818,298 | 2,433,626 |
Gross Unrealized Gains | 147,795 | 125,359 |
Gross Unrealized Losses | 603,330 | 34,713 |
Fair Value | 9,362,763 | 2,524,272 |
OTTI in AOCI | (1,470) | (42) |
Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 4,998,652 | 12,233 |
Gross Unrealized Gains | 2,487 | 28 |
Gross Unrealized Losses | 536,114 | 107 |
Fair Value | 4,465,025 | 12,154 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Obligations of U.S. states and their political subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 92,107 | 20,116 |
Gross Unrealized Gains | 566 | 474 |
Gross Unrealized Losses | 2,699 | 378 |
Fair Value | 89,974 | 20,212 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Foreign government bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 64,352 | 43,188 |
Gross Unrealized Gains | 5,404 | 6,123 |
Gross Unrealized Losses | 370 | 28 |
Fair Value | 69,386 | 49,283 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 448,349 | 203,803 |
Gross Unrealized Gains | 13,155 | 15,969 |
Gross Unrealized Losses | 10,348 | 4,263 |
Fair Value | 451,156 | 215,509 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Redeemable Preferred Stock | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 29,581 | 0 |
Gross Unrealized Gains | 288 | 0 |
Gross Unrealized Losses | 633 | 0 |
Fair Value | 29,236 | 0 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other U.S. public corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 1,619,814 | 818,627 |
Gross Unrealized Gains | 73,819 | 52,866 |
Gross Unrealized Losses | 10,153 | 7,717 |
Fair Value | 1,683,480 | 863,776 |
OTTI in AOCI | (771) | 0 |
Fixed maturities, available-for-sale | All other U.S. private corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 951,324 | 494,640 |
Gross Unrealized Gains | 27,234 | 30,996 |
Gross Unrealized Losses | 13,810 | 4,407 |
Fair Value | 964,748 | 521,229 |
OTTI in AOCI | (694) | 0 |
Fixed maturities, available-for-sale | All other foreign public corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 183,253 | 132,414 |
Gross Unrealized Gains | 5,410 | 3,781 |
Gross Unrealized Losses | 1,022 | 608 |
Fair Value | 187,641 | 135,587 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other foreign private corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 501,140 | 219,009 |
Gross Unrealized Gains | 5,349 | 2,487 |
Gross Unrealized Losses | 20,450 | 15,842 |
Fair Value | 486,039 | 205,654 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 149,196 | |
Gross Unrealized Gains | 3,227 | 2,786 |
Gross Unrealized Losses | 465 | 692 |
Fair Value | 151,290 | |
OTTI in AOCI | 0 | (35) |
Fixed maturities, available-for-sale | Commercial mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 211,429 | |
Gross Unrealized Gains | 6,793 | 4,963 |
Gross Unrealized Losses | 6,753 | 652 |
Fair Value | 215,740 | |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Residential mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 128,971 | |
Gross Unrealized Gains | 4,063 | 4,886 |
Gross Unrealized Losses | 513 | 19 |
Fair Value | 133,838 | |
OTTI in AOCI | (5) | (7) |
Equity securities, available-for-sale | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 365 | 14 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | 351 | 0 |
Fair Value | 18 | 17 |
Equity securities, available-for-sale | Mutual funds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 14 | 14 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18 | 17 |
Equity securities, available-for-sale | Industrial, Miscellaneous, and All Others [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 351 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 351 | 0 |
Fair Value | $ 0 | $ 0 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 6,364,591 | $ 592,004 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 590,647 | 15,922 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 127,079 | 160,128 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 12,683 | 18,791 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,491,670 | 752,132 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 603,330 | 34,713 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,254,477 | 8,480 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 536,114 | 107 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,254,477 | 8,480 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 536,114 | 107 |
Obligations of U.S. states and their political subdivisions | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 73,885 | 6,887 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 2,699 | 378 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 73,885 | 6,887 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2,699 | 378 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 32,107 | 13,616 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 370 | 28 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 32,107 | 13,616 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 370 | 28 |
Public utilities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 240,041 | 49,104 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 8,019 | 1,421 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 17,097 | 14,217 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 2,329 | 2,842 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 257,138 | 63,321 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 10,348 | 4,263 |
Redeemable Preferred Stock | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 12,948 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 633 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 12,948 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 633 | 0 |
All other U.S. public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 530,904 | 207,578 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 8,798 | 6,297 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12,981 | 29,828 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 1,355 | 1,420 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 543,885 | 237,406 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 10,153 | 7,717 |
All other U.S. private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 453,976 | 84,318 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 13,632 | 4,020 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12,304 | 3,550 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 178 | 387 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 466,280 | 87,868 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 13,810 | 4,407 |
All other foreign public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 89,962 | 76,573 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 1,016 | 608 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 9,994 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 6 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 99,956 | 76,573 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1,022 | 608 |
All other foreign private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 247,111 | 38,047 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 11,661 | 1,972 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 58,214 | 85,341 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 8,789 | 13,870 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 305,325 | 123,388 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 20,450 | 15,842 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 67,246 | 50,195 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 439 | 430 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,489 | 26,359 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 26 | 262 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 83,735 | 76,554 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 465 | 692 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 293,651 | 55,065 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 6,753 | 642 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 833 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 293,651 | 55,898 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 6,753 | 652 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 68,283 | 2,141 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 513 | 19 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 68,283 | 2,141 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 513 | 19 |
Equity securities, available-for-sale | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Accumulated Loss | 351 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 351 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Equity Method Investments | $ 0 | ||
Commercial mortgage loans, transferred from affiliates | 580,000,000 | ||
Accumulated Other Comprehensive Income Loss Unrealized Gains And Losses On Other Than Temporarily Impaired Securities Net Of Tax | 200,000 | $ 100,000 | |
Net change in unrealized gains (losses) from other trading account assets | $ (4,800,000) | $ (600,000) | $ (900,000) |
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Non Income Producing Assets, Fixed Maturities | $ 13,000,000 | ||
Gross unrealized losses related to high or highest quality securities | 594,900,000 | $ 22,600,000 | |
Gross unrealized losses related to other than high or highest quality securities | 8,400,000 | 12,100,000 | |
Twelve months or more Unrealized Losses | 12,700,000 | 18,800,000 | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 23,300,000 | 10,600,000 | |
Securities Sold under Agreements to Repurchase | 0 | ||
Fixed maturities | |||
Investment [Line Items] | |||
Assets Deposited With Governmental Authorities | $ 7,500,000 | 8,000,000 | |
California | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 27.00% | ||
Texas | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 13.00% | ||
New Jersey | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 6.00% | ||
Fixed maturities, available-for-sale | |||
Investment [Line Items] | |||
Other Noncash Income (Expense) | $ 600,000 | 0 | $ (6,200,000) |
Corporate securities | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 12,600,000 | ||
Foreign government bonds | |||
Investment [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 10,700,000 | ||
Offsetting Securities Purchased under Agreements to Resell | |||
Investment [Line Items] | |||
Financial Instruments Owned and Pledged as Collateral, Associated Liabilities | $ 255,000,000 | $ 0 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for Sale Amortized Cost | ||
Due in one year or less | $ 354,121 | |
Due after one year through five years | 1,196,869 | |
Due after five years through ten years | 1,515,758 | |
Due after ten years | 5,821,824 | |
Amortized Cost | 9,818,298 | $ 2,433,626 |
Available for Sale Securities Fair Value | ||
Due in one year or less | 355,252 | |
Due after one year through five years | 1,223,226 | |
Due after five years through ten years | 1,536,061 | |
Due after ten years | 5,312,146 | |
Fair Value | 9,362,763 | $ 2,524,272 |
Asset-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 248,547 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 251,309 | |
Commercial mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 484,673 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 484,713 | |
Residential mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 196,506 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 200,056 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Security Proceeds)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed maturities, available-for-sale | |||
Available For Sale | |||
Proceeds from sales(1) | $ 3,577,346 | $ 33,604 | $ 308,458 |
Proceeds from maturities/repayments(1) | 495,465 | 453,016 | 681,426 |
Gross investment gains | 98,095 | 5,788 | 18,110 |
Gross investment losses | (5,412) | (937) | (3,404) |
Fixed maturity and equity security impairments | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | (6,499) | (20) | 0 |
Equity securities, available-for-sale | |||
Available For Sale | |||
Proceeds from Sales | 0 | 0 | 192 |
Gross investment gains | 0 | 0 | 1 |
Fixed maturity and equity security impairments | |||
Writedowns for impairments on equity securities | $ 0 | $ 0 | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity and Equity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 1,325 | $ 86 | $ 93 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (1,170) | (17) | |
Additional credit loss impairments recognized in the current period on securities previously impaired | 0 | 20 | |
Credit loss impairments recognized in the current period on securities not previously impaired | 1,791 | 0 | |
Increases due to the passage of time on previously recorded credit losses | 25 | 0 | |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (14) | (10) | |
Assets Transferred to Parent and Affiliates | $ 607 | $ 0 |
Investments (Trading Account As
Investments (Trading Account Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Trading Securities, Cost | $ 154,608 | $ 5,618 |
Trading Securities, Fair Value | 149,871 | 5,653 |
Equity securities, available-for-sale | ||
Investment [Line Items] | ||
Equity Securities, Cost | 7,551 | 5,618 |
Equity Securities, Fair Value | 10,358 | 5,653 |
Fixed maturities | ||
Investment [Line Items] | ||
Fixed Maturities, Cost | 147,057 | 0 |
Fixed Maturities, Fair Value | $ 139,513 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 1,234,182 | $ 436,075 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Valuation Allowance | $ (2,289) | $ (643) |
Total net commercial mortgage and agricultural property loans by property type | 1,231,893 | 435,432 |
Allowance for Loan and Lease Losses, Uncollateralized Loans | 0 | 0 |
Total net other loans | 0 | 2,740 |
Total commercial mortgage and other loans | 1,231,893 | 438,172 |
Retail Site | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 277,296 | $ 136,190 |
Commercial mortgage loans, Percentage | 22.50% | 31.20% |
Apartment Building | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 263,705 | $ 58,621 |
Commercial mortgage loans, Percentage | 21.40% | 13.50% |
Industrial Property | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 223,252 | $ 67,358 |
Commercial mortgage loans, Percentage | 18.10% | 15.50% |
Office Building | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 294,304 | $ 100,357 |
Commercial mortgage loans, Percentage | 23.80% | 23.00% |
Other Property | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 87,465 | $ 18,660 |
Commercial mortgage loans, Percentage | 7.10% | 4.30% |
Hospitality | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 3,925 | $ 4,963 |
Commercial mortgage loans, Percentage | 0.30% | 1.10% |
Total commercial mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 1,149,947 | $ 386,149 |
Commercial mortgage loans, Percentage | 93.20% | 88.60% |
Agricultural property loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 84,235 | $ 49,926 |
Commercial mortgage loans, Percentage | 6.80% | 11.40% |
Uncollateralized loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Uncollateralized Loans | $ 0 | $ 2,740 |
Investments (Allowance for Loss
Investments (Allowance for Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ||
Allowance for credit losses, beginning of year | $ 643 | $ 482 |
Addition to (release of) allowance for losses | 1,646 | 161 |
Charge Off Net Of Recoveries | 0 | 0 |
Allowance for credit losses, end of year | 2,289 | 643 |
Commercial mortgage and other loans | ||
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ||
Allowance for credit losses, beginning of year | 622 | 455 |
Addition to (release of) allowance for losses | 1,645 | 167 |
Charge Off Net Of Recoveries | 0 | 0 |
Allowance for credit losses, end of year | 2,267 | 622 |
Agricultural Property Loans | ||
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ||
Allowance for credit losses, beginning of year | 21 | 27 |
Addition to (release of) allowance for losses | 1 | (6) |
Charge Off Net Of Recoveries | 0 | 0 |
Allowance for credit losses, end of year | 22 | 21 |
Uncollateralized loans | ||
Allowance For Losses On Commermcial Mortgage And Other Loans [Line Items] | ||
Allowance for credit losses, beginning of year | 0 | 0 |
Addition to (release of) allowance for losses | 0 | 0 |
Charge Off Net Of Recoveries | 0 | 0 |
Allowance for credit losses, end of year | $ 0 | $ 0 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Collectively evaluated for impairment | 2,289 | 643 |
Total Allowance for Credit Losses | 2,289 | 643 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 1,715 | 0 |
Gross of reserves: collectively evaluated for impairment | 1,232,467 | 438,815 |
Gross of Reserves | 1,234,182 | 438,815 |
Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for Credit Losses: | ||
Total Allowance for Credit Losses | 0 | 0 |
Recorded Investment: | ||
Gross of Reserves | 0 | 0 |
Commercial mortgage and other loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,267 | 622 |
Total Allowance for Credit Losses | 2,267 | 622 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 1,715 | 0 |
Gross of reserves: collectively evaluated for impairment | 1,148,232 | 386,149 |
Gross of Reserves | 1,149,947 | 386,149 |
Commercial mortgage and other loans | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for Credit Losses: | ||
Total Allowance for Credit Losses | 0 | 0 |
Recorded Investment: | ||
Gross of Reserves | 0 | 0 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 22 | 21 |
Total Allowance for Credit Losses | 22 | 21 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 84,235 | 49,926 |
Gross of Reserves | 84,235 | 49,926 |
Agricultural Property Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for Credit Losses: | ||
Total Allowance for Credit Losses | 0 | 0 |
Recorded Investment: | ||
Gross of Reserves | 0 | 0 |
Uncollateralized loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total Allowance for Credit Losses | 0 | 0 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 0 | 2,740 |
Gross of Reserves | 0 | 2,740 |
Uncollateralized loans | Receivables Acquired with Deteriorated Credit Quality | ||
Allowance for Credit Losses: | ||
Total Allowance for Credit Losses | 0 | 0 |
Recorded Investment: | ||
Gross of Reserves | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial and agricultural mortgage loans - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | $ 1,234,182 | $ 436,075 |
LTV, 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 688,582 | 313,280 |
LTV, 60% to 69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 410,545 | 95,977 |
LTV, 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 124,263 | 26,818 |
LTV, Greater than or Equal to 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 10,792 | 0 |
DSCR, Greater than or Equal to 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 1,192,274 | 424,593 |
DSCR, Greater than or Equal to 1.2X | LTV, 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 667,051 | 303,215 |
DSCR, Greater than or Equal to 1.2X | LTV, 60% to 69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 406,728 | 95,977 |
DSCR, Greater than or Equal to 1.2X | LTV, 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 108,770 | 25,401 |
DSCR, Greater than or Equal to 1.2X | LTV, Greater than or Equal to 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 9,725 | 0 |
DSCR, 1.0X to 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 32,414 | 10,490 |
DSCR, 1.0X to 1.2X | LTV, 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 16,921 | 9,073 |
DSCR, 1.0X to 1.2X | LTV, 60% to 69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 0 |
DSCR, 1.0X to 1.2X | LTV, 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 15,493 | 1,417 |
DSCR, 1.0X to 1.2X | LTV, Greater than or Equal to 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 0 |
DSCR, Less Than 1.0X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 9,494 | 992 |
DSCR, Less Than 1.0X | LTV, 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 4,610 | 992 |
DSCR, Less Than 1.0X | LTV, 60% to 69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 3,817 | 0 |
DSCR, Less Than 1.0X | LTV, 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | 0 | 0 |
DSCR, Less Than 1.0X | LTV, Greater than or Equal to 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable, Gross | $ 1,067 | $ 0 |
Investments Investments (Analys
Investments Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | $ 1,234,182 | $ 438,815 |
Financing Receivable, Total Recorded Investment | 1,234,182 | 438,815 |
Financing Receivable, Recorded Investment, Non-Accrual Status | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 1,149,947 | 386,149 |
Financing Receivable, Total Recorded Investment | 1,149,947 | 386,149 |
Financing Receivable, Recorded Investment, Non-Accrual Status | 0 | 0 |
Commercial mortgage and other loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Commercial mortgage and other loans | Financing Receivables, Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 84,235 | 49,926 |
Financing Receivable, Total Recorded Investment | 84,235 | 49,926 |
Financing Receivable, Recorded Investment, Non-Accrual Status | 0 | 0 |
Agricultural Property Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Agricultural Property Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Agricultural Property Loans | Financing Receivables, Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 0 | 2,740 |
Financing Receivable, Total Recorded Investment | 0 | 2,740 |
Financing Receivable, Recorded Investment, Non-Accrual Status | 0 | 0 |
Uncollateralized loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Uncollateralized loans | Financing Receivables, Greater than or Equal to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Long Term Investments [Line Items] | ||
Other long-term investments | $ 551,931 | $ 182,157 |
Private Equity Funds | ||
Other Long Term Investments [Line Items] | ||
Other long-term investments | 30,513 | 22,535 |
Hedge Funds | ||
Other Long Term Investments [Line Items] | ||
Other long-term investments | 98,554 | 41,820 |
Real Estate Properties | ||
Other Long Term Investments [Line Items] | ||
Other long-term investments | 109,043 | 2,535 |
Joint Ventures And Limited Partnerships | ||
Other Long Term Investments [Line Items] | ||
Other long-term investments | 238,110 | 66,890 |
Derivatives | ||
Other Long Term Investments [Line Items] | ||
Other long-term investments | $ 313,821 | $ 115,267 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 349,662 | $ 144,871 | $ 169,753 |
Less: investment expenses | (11,292) | (5,441) | (5,742) |
Net investment income | 338,370 | 139,430 | 164,011 |
Fixed maturities, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 249,496 | 115,998 | 140,114 |
Trading account assets | |||
Net Investment Income [Line Items] | |||
Gross investment income | 3,473 | 349 | 325 |
Commercial mortgage and other loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 40,258 | 22,696 | 21,802 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 444 | 794 | 739 |
Short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 26,831 | 396 | 281 |
Other long-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 29,160 | $ 4,638 | $ 6,492 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ (3,442,760) | $ 6,052 | $ 7,368 |
Fixed maturities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 86,184 | 4,831 | 14,706 |
Equity securities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 0 | 0 | 1 |
Commercial mortgage and other loans | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (2,326) | (161) | 774 |
Derivatives | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (3,526,514) | 1,381 | (8,113) |
Other long-term investments | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (648) | 1 | 0 |
Short-term investments | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 544 | $ 0 | $ 0 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ (443,575) | $ 107,460 | $ 198,923 |
Securities related to other than temporary impairments | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | (1,261) | 9 | 1 |
Fixed maturities | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | (454,274) | 90,637 | 191,339 |
Equity securities, available-for-sale | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | (347) | 3 | 3 |
Affiliated notes | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 1,181 | 1,660 | 2,351 |
Derivatives designated as cash flow hedges | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 11,745 | 14,847 | 4,839 |
Other investments | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ (619) | $ 304 | $ 390 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | $ 21,908 | $ 10,218 |
Liabilities supported by pledged collateral | 23,350 | 10,568 |
Fixed maturities, available-for-sale | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | 21,908 | 10,218 |
Cash Collateral For Loaned Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Liabilities supported by pledged collateral | $ 23,350 | $ 10,568 |
Deferred Policy Acquisition C58
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 749,302 | $ 1,114,431 | $ 1,345,504 |
Capitalization of commissions, sales and issue expenses | 269,679 | 1,535 | 2,804 |
Amortization-Impact of assumption and experience unlocking and true-ups | 226,204 | 33,113 | 91,895 |
Amortization-All other | (46,388) | (342,265) | (330,311) |
Changes in unrealized investment gains and losses | 18,772 | 16,352 | 4,539 |
Ceded DAC upon Reinsurance Treaty with Prudential Insurance | (7,480) | (73,864) | 0 |
Assumed DAC upon Reinsurance Treaty with Pruco Life | 3,134,272 | 0 | 0 |
Balance, end of year | 4,344,361 | $ 749,302 | $ 1,114,431 |
True-up to the ceded DAC upon reinsurance agreement with Prudential Insurance | $ 7,500 |
Value of Business Acquired (Bal
Value of Business Acquired (Balance of and Changes in VOBA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, beginning of year | $ 33,640 | $ 39,738 | $ 43,500 |
Amortization-Impact of assumption and experience unlocking and true-ups | 2,372 | 3,412 | 5,412 |
Amortization-All other | (8,176) | (10,477) | (11,181) |
Interest | 1,939 | 2,436 | 2,615 |
Change in unrealized investment gains and losses | 512 | 1,163 | 608 |
Ceded VOBA upon Reinsurance Treaty with Prudential Insurance | 0 | (2,632) | 0 |
Balance, end of year | $ 30,287 | $ 33,640 | $ 39,738 |
Weighted Average Useful Life | 5 years 1 month 17 days | ||
Interest accrual rates | 6.00% | 6.05% | 6.10% |
Value of Business Acquired (Est
Value of Business Acquired (Estimated Future Amortization, Net of Interest) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Present Value of Future Insurance Profits [Abstract] | |
Estimated future VOBA amortization - 2017 | $ 5,464 |
Estimated future VOBA amortization - 2018 | 4,728 |
Estimated future VOBA amortization - 2019 | 3,972 |
Estimated future VOBA amortization - 2020 | 3,350 |
Estimated future VOBA amortization - 2021 | $ 2,817 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance – domestic | $ 964 | $ 75 |
Individual and group annuities and supplementary contracts | 446,318 | 441,595 |
Other contract liabilities | 1,267,739 | 3,136,992 |
Total future policy benefits | 8,686,196 | 3,578,662 |
Assumed | Pruco Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Individual and group annuities and supplementary contracts | 528,210 | 0 |
Other contract liabilities | $ 6,442,965 | $ 0 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholder Account Balances | $ 4,736,889 | $ 2,416,125 |
Domestic individual non-participating life insurance | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 0.00% | |
Domestic individual non-participating life insurance | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 0.00% | |
Individual and group annuities and supplementary contracts | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Percentage Of Reserves Based On Interest Rates In Excess Of 8 Percent | 0.10% | |
Individual and group annuities and supplementary contracts | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 0.00% | |
Individual and group annuities and supplementary contracts | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 8.30% | |
Other contract liabilities | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 1.40% | |
Other contract liabilities | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Future Policy Benefits, Interest Rate | 4.10% | |
Interest-sensitive life contracts | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholder Account Balances | $ 15,666 | 15,832 |
Interest-sensitive life contracts | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 3.50% | |
Interest-sensitive life contracts | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 6.00% | |
Individual annuities | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholder Account Balances | $ 1,441,126 | 1,337,876 |
Individual annuities | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 0.00% | |
Individual annuities | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 6.50% | |
Guaranteed interest accounts | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Policyholder Account Balances | $ 893,419 | $ 1,062,417 |
Guaranteed interest accounts | Minimum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 0.00% | |
Guaranteed interest accounts | Maximum | ||
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | ||
Liability for Policyholders Account Balances, Interest rate | 5.80% |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 4,736,889 | $ 2,416,125 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 15,666 | 15,832 |
Individual annuities | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 1,441,126 | 1,337,876 |
Guaranteed interest accounts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 893,419 | 1,062,417 |
Assumed | Pruco Life | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 2,386,678 | $ 0 |
Certain Long-Duration Contrac64
Certain Long-Duration Contracts with Guarantees (Variable Annuity Contracts) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Return of net deposits | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 110,194,439 | $ 34,305,352 |
Net amount at risk | $ 463,423 | $ 341,707 |
Average attained age of contractholders | 66 years | 66 years |
Minimum return or contract value | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 24,725,084 | $ 6,976,880 |
Net amount at risk | $ 3,098,018 | $ 1,194,988 |
Average attained age of contractholders | 69 years | 68 years |
Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 120,237,955 | $ 34,565,409 |
Net amount at risk | $ 5,041,214 | $ 2,257,837 |
Average attained age of contractholders | 66 years | 66 years |
Average period remaining until expected annuitization | 0 years | 0 years |
Certain Long-Duration Contrac65
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 130,259,024 | $ 38,985,863 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 77,133,820 | 24,639,438 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 44,025,867 | 12,264,741 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 9,099,337 | $ 2,081,684 |
Certain Long-Duration Contrac66
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 4.7 | $ 2.3 |
Certain Long-Duration Contrac67
Certain Long-Duration Contracts with Guarantees Liabilities for Guarantee Benefits (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 3,413,818 | $ 3,387,128 | $ 989,375 |
Incurred guarantee benefits | (1,939,713) | 60,217 | 2,424,215 |
Paid guarantee benefits | (57,813) | (29,751) | (26,633) |
Changes in unrealized investment gains and losses | (5,415) | (3,776) | 171 |
Assumed guarantees upon reinsurance agreement with Pruco Life | 6,971,668 | ||
Ending balance | 8,382,545 | 3,413,818 | 3,387,128 |
GMDB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 265,877 | 255,613 | 199,870 |
Incurred guarantee benefits | 43,185 | 43,167 | 81,524 |
Paid guarantee benefits | (55,604) | (29,240) | (25,909) |
Changes in unrealized investment gains and losses | (5,206) | (3,663) | 128 |
Assumed guarantees upon reinsurance agreement with Pruco Life | 389,067 | ||
Ending balance | 637,319 | 265,877 | 255,613 |
GMAB/GMWB/ GMIWB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 3,134,077 | 3,112,411 | 778,226 |
Incurred guarantee benefits | (1,979,215) | 21,666 | 2,334,185 |
Paid guarantee benefits | 0 | 0 | 0 |
Changes in unrealized investment gains and losses | 0 | 0 | 0 |
Assumed guarantees upon reinsurance agreement with Pruco Life | 6,552,471 | ||
Ending balance | 7,707,333 | 3,134,077 | 3,112,411 |
GMIB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 13,864 | 19,104 | 11,279 |
Incurred guarantee benefits | (3,683) | (4,616) | 8,506 |
Paid guarantee benefits | (2,209) | (511) | (724) |
Changes in unrealized investment gains and losses | (209) | (113) | 43 |
Assumed guarantees upon reinsurance agreement with Pruco Life | 30,130 | ||
Ending balance | $ 37,893 | $ 13,864 | $ 19,104 |
Certain Long-Duration Contrac68
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Beginning balance | $ 452,752 | $ 665,207 | $ 809,247 |
Capitalization | 1,805 | 873 | 11,515 |
Amortization - Impact of assumption and experience unlocking and true-ups | 101,424 | 21,125 | 45,417 |
Amortization - All other | (81,603) | (206,263) | (204,563) |
Change in unrealized investment gains and losses | 4,915 | 11,063 | 3,591 |
Ceded DSI upon Reinsurance Treaty with Prudential Insurance | (39,253) | ||
Assumed DSI upon Reinsurance Treaty with Pruco Life Insurance Company | 499,530 | ||
Ending balance | $ 978,823 | $ 452,752 | $ 665,207 |
Statutory Net Income and Surp69
Statutory Net Income and Surplus and Dividend Restrictions (Details) - USD ($) $ in Millions | Dec. 21, 2016 | Dec. 22, 2015 | Jun. 29, 2015 | Dec. 19, 2014 | Jun. 27, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | ||||||||
Statutory net income | $ (2,018) | $ 340 | $ 393 | |||||
Statutory surplus balance | 5,718 | $ 482 | ||||||
Distribution to parent | $ 1,140 | $ 180 | $ 270 | $ 75 | $ 267 | |||
Net Gains from Operations | $ (159) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense (benefit): | |||
U.S. federal | $ 2,524,458 | $ 76,175 | $ (8,499) |
State and local | 0 | 0 | 0 |
Total | 2,524,458 | 76,175 | (8,499) |
Deferred tax expense (benefit): | |||
U.S. federal | (3,204,951) | (84,460) | 17,103 |
State and local | 0 | 0 | 0 |
Total | (3,204,951) | (84,460) | 17,103 |
Total income tax expense (benefit) | (680,493) | (8,285) | 8,604 |
Total income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income (loss) | (194,446) | (20,708) | 7,407 |
Additional paid-in capital | (9,531) | 0 | 0 |
Total income tax expense (benefit) | $ (884,470) | $ (28,993) | $ 16,011 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (59,000,000) | ||
Federal Statutory Income Tax Rate, Percent | 35.00% | ||
Income (Loss) from Continuing Operations Before Income Taxes, Domestic | $ (1,771,000,000) | $ 165,000,000 | $ 259,000,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 0 | 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Expected federal income tax expense (benefit) | $ (619,704) | $ 57,727 | $ 90,780 |
Non-taxable investment income | (49,630) | (56,614) | (69,122) |
Tax credits | (10,507) | (9,389) | (13,080) |
Other | (652) | (9) | 26 |
Total income tax expense (benefit) | $ (680,493) | $ (8,285) | $ 8,604 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Insurance reserves | $ 3,369,384 | $ 156,639 |
Investments | 418,128 | 0 |
Net unrealized loss on securities | 159,362 | 0 |
Other | 440 | 833 |
Deferred tax assets | 3,947,314 | 157,472 |
Deferred tax liabilities | ||
DeferredTaxLiabilitiesVOBAandDAC | 1,506,010 | 247,825 |
Investments | 0 | 4,467 |
Deferred sales inducements | 342,588 | 158,463 |
Net unrealized gain on securities | 0 | 32,414 |
Deferred tax liabilities | 1,848,598 | 443,169 |
Deferred Tax Assets, Net | $ 2,098,716 | |
Net deferred tax asset (liability) | $ (285,697) |
Fair Value of Assets and Liab74
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | $ 9,362,763 | $ 2,524,272 |
Trading account assets | 149,871 | 5,653 |
Equity securities, available-for-sale | 18 | 17 |
Short-term investments | 947,150 | 158,227 |
Other long-term investments | 551,931 | 182,157 |
Receivables from parent and affiliates | 111,703 | 212,696 |
Separate account assets | 37,429,739 | 39,250,159 |
Future policy benefits | 8,686,196 | 3,578,662 |
Netting | 2,928,000 | (3,800) |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 7,707,000 | 3,134,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 1,060,000 | 34,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 8,767,000 | 3,168,000 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 10,358 | 5,653 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 9,362,763 | 2,524,272 |
Trading account assets | 149,871 | 5,653 |
Equity securities, available-for-sale | 18 | 17 |
Short-term investments | 912,150 | 158,227 |
Cash equivalents | 1,586,153 | 225 |
Other long-term investments | 313,819 | 115,266 |
Reinsurance recoverables | 240,091 | 3,012,653 |
Receivables from parent and affiliates | 40,924 | 37,340 |
Subtotal excluding separate account assets | 12,605,789 | 5,853,653 |
Separate account assets | 37,429,739 | 39,250,159 |
Total assets | 50,035,528 | 45,103,812 |
Future policy benefits | 7,707,333 | 3,134,077 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 5,051 | |
Total liabilities | 7,712,384 | 3,134,077 |
Asset Netting | (4,582,540) | (21,508) |
Liability Netting | (1,654,360) | (25,277) |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Netting | (4,582,540) | (21,508) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Netting | (1,654,360) | (25,277) |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,465,025 | 12,154 |
Trading account assets, debt | 116,184 | 0 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 89,974 | 20,212 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 69,386 | 49,283 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,925,038 | 949,109 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,121,868 | 631,075 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 217,363 | 136,222 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 538,031 | 225,349 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 21,632 | 0 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 251,309 | 151,290 |
Trading account assets, debt | 1,697 | 0 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 484,713 | 215,740 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 200,056 | 133,838 |
Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 10,358 | 5,653 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets | 5,494 | 5,653 |
Equity securities, available-for-sale | 0 | 0 |
Short-term investments | 519,000 | 157,257 |
Cash equivalents | 738,449 | 0 |
Other long-term investments | 23,967 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 1,286,910 | 162,910 |
Separate account assets | 0 | 0 |
Total assets | 1,286,910 | 162,910 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 5,051 | |
Total liabilities | 5,051 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 5,494 | 5,653 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 9,178,952 | 2,350,471 |
Trading account assets | 139,513 | 0 |
Equity securities, available-for-sale | 18 | 17 |
Short-term investments | 392,700 | 520 |
Cash equivalents | 847,329 | 0 |
Other long-term investments | 4,872,392 | 135,209 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 6,962 | 29,676 |
Subtotal excluding separate account assets | 15,437,866 | 2,515,893 |
Separate account assets | 37,429,739 | 39,250,159 |
Total assets | 52,867,605 | 41,766,052 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 1,654,360 | 25,277 |
Other liabilities | 0 | |
Total liabilities | 1,654,360 | 25,277 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,465,025 | 12,154 |
Trading account assets, debt | 116,184 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 89,974 | 20,212 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 69,299 | 49,283 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,909,440 | 934,109 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 997,004 | 523,298 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 217,363 | 136,222 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 526,504 | 220,818 |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 21,632 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 219,574 | 104,797 |
Trading account assets, debt | 1,697 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 484,713 | 215,740 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 200,056 | 133,838 |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 183,811 | 173,801 |
Trading account assets | 4,864 | 0 |
Equity securities, available-for-sale | 0 | 0 |
Short-term investments | 450 | 450 |
Cash equivalents | 375 | 225 |
Other long-term investments | 0 | 1,565 |
Reinsurance recoverables | 240,091 | 3,012,653 |
Receivables from parent and affiliates | 33,962 | 7,664 |
Subtotal excluding separate account assets | 463,553 | 3,196,358 |
Separate account assets | 0 | 0 |
Total assets | 463,553 | 3,196,358 |
Future policy benefits | 7,707,333 | 3,134,077 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | |
Total liabilities | 7,707,333 | 3,134,077 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 87 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 15,598 | 15,000 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 124,864 | 107,777 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 11,527 | 4,531 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 31,735 | 46,493 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | $ 4,864 | $ 0 |
Fair Value of Assets and Liab75
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of Level 3 Derivatives | $ 0 | $ 1,600,000 |
Transfers Between Level 1 and Level 2 | 0 | 0 |
Accounting Standards Update 2015-07 | Other long-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 400,000 | $ 600,000 |
Fair Value of Assets and Liab76
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 947,150 | $ 158,227 |
Other long-term investments | 551,931 | 182,157 |
Receivables from parent and affiliates | 111,703 | 212,696 |
Future policy benefits | 8,686,196 | 3,578,662 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 912,150 | 158,227 |
Cash equivalents | 1,586,153 | 225 |
Other long-term investments | 313,819 | 115,266 |
Reinsurance recoverables | 240,091 | 3,012,653 |
Receivables from parent and affiliates | 40,924 | 37,340 |
Total assets | 50,035,528 | 45,103,812 |
Future policy benefits | 7,707,333 | 3,134,077 |
Total liabilities | 7,712,384 | 3,134,077 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 4,864 | 0 |
Short-term investments | 450 | 450 |
Cash equivalents | 375 | 225 |
Other long-term investments | 0 | 1,565 |
Reinsurance recoverables | 240,091 | 3,012,653 |
Receivables from parent and affiliates | 33,962 | 7,664 |
Total assets | 463,553 | 3,196,358 |
Future policy benefits | 7,707,333 | 3,134,077 |
Total liabilities | 7,707,333 | 3,134,077 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 87 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 151,989 | 127,308 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 31,735 | 46,493 |
Fair Value, Measurements, Recurring | Level 3 | Internal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1,405 | 0 |
Short-term investments | 450 | 450 |
Cash equivalents | 375 | 225 |
Other long-term investments | 0 | 1,565 |
Reinsurance recoverables | 240,091 | 3,012,653 |
Receivables from parent and affiliates | 0 | 0 |
Total assets | 378,712 | 3,126,188 |
Future policy benefits | 7,707,333 | 3,134,077 |
Total liabilities | 7,707,333 | 3,134,077 |
Fair Value, Measurements, Recurring | Level 3 | Internal | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Internal | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 136,391 | 111,295 |
Fair Value, Measurements, Recurring | Level 3 | Internal | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | External | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,459 | 0 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Other long-term investments | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 33,962 | 7,664 |
Total assets | 84,841 | 70,170 |
Future policy benefits | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | External | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 87 | 0 |
Fair Value, Measurements, Recurring | Level 3 | External | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 15,598 | 16,013 |
Fair Value, Measurements, Recurring | Level 3 | External | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 31,735 | $ 46,493 |
Fair Value of Assets and Liab77
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 8,686,196 | $ 3,578,662 |
Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables | 240,091 | 3,012,653 |
Future policy benefits | $ 7,707,333 | $ 3,134,077 |
Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Discounted cash flow | Corporate securities | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 3.24% | 3.71% |
Liquidation Value | 98.21% | |
Level 3 | Discounted cash flow | Corporate securities | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 17.12% | 17.95% |
Liquidation Value | 98.68% | |
Level 3 | Discounted cash flow | Corporate securities | Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 4.71% | 4.43% |
Liquidation Value | 98.64% | |
Level 3 | Discounted cash flow | Future Policy Benefits | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.25% | 0.06% |
Utilization rate | 52.00% | 63.00% |
Withdrawal rate (greater than maximum range for current year) | 78.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 16.00% | 17.00% |
Level 3 | Discounted cash flow | Future Policy Benefits | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 13.00% | 14.00% |
NPR spread | 1.50% | 1.76% |
Utilization rate | 96.00% | 95.00% |
Withdrawal rate (greater than maximum range for current year) | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 25.00% | 28.00% |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables | $ 240,091 | $ 3,012,653 |
Future policy benefits | 7,707,333 | 3,134,077 |
Level 3 | Fair Value, Measurements, Recurring | Internal | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables | 240,091 | 3,012,653 |
Future policy benefits | 7,707,333 | 3,134,077 |
Corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | 151,989 | 127,308 |
Corporate securities | Level 3 | Fair Value, Measurements, Recurring | Internal | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | $ 136,391 | $ 111,295 |
Fair Value of Assets and Liab78
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | $ 0 | $ 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | $ 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (351) | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 351 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 450 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 450 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 450 | 450 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign government bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (8) | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 95 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 87 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. corporate public securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 15,000 | 16,860 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | (23) | (42) |
Net investment income | 6 | 9 | 37 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (111) | (119) | |
Transfers into Level 3 | 703 | 0 | |
Transfers out of Level 3 | 0 | (1,727) | |
Other | 0 | 0 | |
Fair Value, end of period | 15,598 | 15,000 | 16,860 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | U.S. corporate private securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 107,777 | 98,544 | |
Included in earnings: | |||
Realized investment gains (losses), net | (4,865) | (16) | 1,423 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 1,380 | (2,992) | (763) |
Net investment income | 5,651 | 5,264 | 4,953 |
Purchases | 14,224 | 6,233 | |
Sales | (105) | (1,548) | |
Issuances | 0 | 0 | |
Settlements | (1,845) | (1,863) | |
Transfers into Level 3 | 10,176 | 4,155 | |
Transfers out of Level 3 | (7,529) | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 124,864 | 107,777 | 98,544 |
Included in earnings: | |||
Realized investment gains (losses), net | (4,917) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign corporate public securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 1 | 0 | 0 |
Net investment income | (1) | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 129 | 0 | |
Transfers out of Level 3 | (129) | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign corporate private securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 4,531 | 666 | |
Included in earnings: | |||
Realized investment gains (losses), net | 877 | 62 | 169 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 932 | (24) | (41) |
Net investment income | 179 | 1 | 34 |
Purchases | 8,647 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (7,129) | (678) | |
Transfers into Level 3 | 8,686 | 4,504 | |
Transfers out of Level 3 | (5,196) | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 11,527 | 4,531 | 666 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Asset-Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 46,493 | 40,524 | |
Included in earnings: | |||
Realized investment gains (losses), net | (26) | 9 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 161 | (170) | 196 |
Net investment income | 139 | 49 | 120 |
Purchases | 72,939 | 20,053 | |
Sales | (6,739) | (15,878) | |
Issuances | 0 | 0 | |
Settlements | (540) | (3,704) | |
Transfers into Level 3 | 34,984 | 34,921 | |
Transfers out of Level 3 | (115,676) | (29,311) | |
Other | 0 | 0 | |
Fair Value, end of period | 31,735 | 46,493 | 40,524 |
Included in earnings: | |||
Realized investment gains (losses), net | (26) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Commercial Mortgage-Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | (83) |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 1,565 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (1,565) | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Trading account assets | Asset-Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | (161) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (2,634) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 2,795 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Trading account assets | Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | (123) | 0 | 15 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 3,422 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 1,565 | 0 | |
Fair Value, end of period | 4,864 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | (123) | 0 | 15 |
Cash Equivalents | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 225 | 225 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 150 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 375 | 225 | 225 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Other Long-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 1,565 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 1,405 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 160 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | (1,565) | 0 | |
Fair Value, end of period | 0 | 1,565 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 1,405 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Reinsurance Recoverables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 3,012,653 | 2,996,154 | |
Included in earnings: | |||
Realized investment gains (losses), net | (2,852,588) | (212,035) | 2,013,931 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 70,448 | 228,534 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 9,578 | 0 | |
Fair Value, end of period | 240,091 | 3,012,653 | 2,996,154 |
Included in earnings: | |||
Realized investment gains (losses), net | 59,501 | (117,840) | 2,040,238 |
Asset management fees and other income | 0 | 0 | 0 |
Receivables from Parent and Affiliates | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 7,664 | 22,320 | |
Included in earnings: | |||
Realized investment gains (losses), net | (13) | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 50 | (264) | (420) |
Net investment income | 0 | 1 | 0 |
Purchases | 34,000 | 0 | |
Sales | (1,987) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 6,941 | |
Transfers out of Level 3 | (2,957) | (21,334) | |
Other | (2,795) | 0 | |
Fair Value, end of period | 33,962 | 7,664 | 22,320 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Future Policy Benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | (3,134,077) | (3,112,411) | |
Included in earnings: | |||
Realized investment gains (losses), net | (3,791,759) | 217,101 | (2,088,505) |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (781,497) | (238,767) | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | (7,707,333) | (3,134,077) | (3,112,411) |
Included in earnings: | |||
Realized investment gains (losses), net | (3,740,535) | 119,609 | (2,115,680) |
Asset management fees and other income | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab79
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Policy loans | $ 12,719 | $ 13,054 |
Accrued investment income | 86,004 | 22,615 |
Receivables from parent and affiliates | 111,703 | 212,696 |
Liabilities: | ||
Cash collateral for loaned securities | 23,350 | 10,568 |
Short-term debt | 28,101 | 1,000 |
Reinsurance payable | 275,822 | 250,277 |
Payables to parent and affiliates | 91,432 | 25,677 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 1,235,842 | 451,142 |
Policy loans | 12,719 | 13,054 |
Short-term investments | 35,000 | 0 |
Cash and cash equivalents | 261,886 | 311 |
Accrued investment income | 86,004 | 22,615 |
Reinsurance recoverables | 63,775 | 0 |
Receivables from parent and affiliates | 70,779 | 14,868 |
Other assets | 53,858 | 1,085 |
Total assets | 1,819,863 | 503,075 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 247,986 | 102,438 |
Cash collateral for loaned securities | 23,350 | 10,568 |
Short-term debt | 28,146 | 1,000 |
Long-term debt | 994,198 | 0 |
Reinsurance payable | 63,775 | 0 |
Payables to parent and affiliates | 91,432 | 25,677 |
Other liabilities | 189,366 | 83,464 |
Separate account liabilities - investment contracts | 187 | 293 |
Total liabilities | 1,638,440 | 223,440 |
Fair Value | Accounting Standards Update 2015-07 | ||
Liabilities: | ||
Cost Method Investments, Fair Value Disclosure | 3,400 | 3,300 |
Fair Value | Level 1 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term investments | 0 | 0 |
Cash and cash equivalents | 6,886 | 311 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 6,886 | 311 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Reinsurance payable | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities - investment contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 2,793 |
Policy loans | 0 | 0 |
Short-term investments | 35,000 | 0 |
Cash and cash equivalents | 255,000 | 0 |
Accrued investment income | 86,004 | 22,615 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 70,779 | 14,868 |
Other assets | 53,858 | 1,085 |
Total assets | 500,641 | 41,361 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 23,350 | 10,568 |
Short-term debt | 28,146 | 1,000 |
Long-term debt | 994,198 | 0 |
Reinsurance payable | 0 | 0 |
Payables to parent and affiliates | 91,432 | 25,677 |
Other liabilities | 189,366 | 83,464 |
Separate account liabilities - investment contracts | 187 | 293 |
Total liabilities | 1,326,679 | 121,002 |
Fair Value | Level 3 | ||
Assets: | ||
Commercial mortgage and other loans | 1,235,842 | 448,349 |
Policy loans | 12,719 | 13,054 |
Short-term investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 63,775 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 1,312,336 | 461,403 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 247,986 | 102,438 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Reinsurance payable | 63,775 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities - investment contracts | 0 | 0 |
Total liabilities | 311,761 | 102,438 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 1,231,893 | 438,172 |
Policy loans | 12,719 | 13,054 |
Short-term investments | 35,000 | 0 |
Cash and cash equivalents | 261,886 | 311 |
Accrued investment income | 86,004 | 22,615 |
Reinsurance recoverables | 63,775 | 0 |
Receivables from parent and affiliates | 70,779 | 14,868 |
Other assets | 53,858 | 1,085 |
Total assets | 1,815,914 | 490,105 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 250,493 | 103,003 |
Cash collateral for loaned securities | 23,350 | 10,568 |
Short-term debt | 28,101 | 1,000 |
Long-term debt | 971,899 | 0 |
Reinsurance payable | 63,775 | 0 |
Payables to parent and affiliates | 91,432 | 25,677 |
Other liabilities | 189,366 | 83,464 |
Separate account liabilities - investment contracts | 187 | 293 |
Total liabilities | 1,618,603 | 224,005 |
Carrying Amount | Accounting Standards Update 2015-07 | ||
Liabilities: | ||
Cost Method Investments, Fair Value Disclosure | $ 3,100 | $ 3,100 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (7,707) | $ (3,134) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 5 | |
Maximum length of time hedged in cash flow hedge (in years) | 19 years | |
Future Policy Benefits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (7,707) | (3,134) |
Reinsurance Recoverables | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 231 | $ 3,013 |
Reinsurance Payables [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ 10 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional | $ 114,937,879 | $ 20,673,388 |
Assets | 4,896,359 | 136,775 |
Liabilities | (1,659,411) | (25,277) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 472,701 | 115,358 |
Assets | 38,249 | 15,910 |
Liabilities | (2,776) | (206) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 114,465,178 | 20,558,030 |
Assets | 4,858,110 | 120,865 |
Liabilities | (1,656,635) | (25,071) |
Interest Rate Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 81,872,695 | 1,872,750 |
Assets | 4,439,270 | 84,817 |
Liabilities | (1,163,388) | (13,452) |
Interest Rate Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 10,825,000 | 100,000 |
Assets | 278,763 | 9,431 |
Liabilities | (135,554) | 0 |
Interest Rate Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 498,311 | 0 |
Assets | 0 | 0 |
Liabilities | (25,082) | 0 |
Foreign Currency Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,491 | 2,752 |
Assets | 6 | 23 |
Liabilities | 0 | 0 |
Foreign Currency Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 472,701 | 115,358 |
Assets | 38,249 | 15,910 |
Liabilities | (2,776) | (206) |
Foreign Currency Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 130,470 | 77,729 |
Assets | 16,627 | 11,220 |
Liabilities | (635) | 0 |
Interest Rate Futures | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 2,474,000 | 0 |
Assets | 23,967 | 0 |
Liabilities | 0 | 0 |
Equity Future [Member] | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,269,044 | 0 |
Assets | 0 | 0 |
Liabilities | (5,051) | 0 |
Total Return Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 12,784,166 | 217,999 |
Assets | 69,827 | 320 |
Liabilities | (281,193) | (3,626) |
Equity Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 4,610,001 | 18,286,800 |
Assets | 29,650 | 15,054 |
Liabilities | $ (45,732) | $ (7,993) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Balance Sheet (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 4,896,359,000 | $ 136,775,000 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 255,000,000 | |
Gross Amounts Offset in the Statements of Financial Position | 0 | |
Net Amounts Presented in the Statements of Financial Position | 255,000,000 | |
Financial Instruments/Collateral | (255,000,000) | |
Net Amount | 0 | |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 5,127,392,000 | |
Gross Amounts Offset in the Statements of Financial Position | (4,582,540,000) | |
Net Amounts Presented in the Statements of Financial Position | 544,852,000 | |
Financial Instruments/Collateral | (255,000,000) | |
Net Amount | 289,852,000 | |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 1,659,411,000 | 25,277,000 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | |
Gross Amounts Offset in the Statements of Financial Position | 0 | |
Net Amounts Presented in the Statements of Financial Position | 0 | |
Financial Instruments/Collateral | 0 | |
Net Amount | 0 | |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 1,654,360,000 | |
Gross Amounts Offset in the Statements of Financial Position | (1,654,360,000) | |
Net Amounts Presented in the Statements of Financial Position | 0 | |
Financial Instruments/Collateral | 0 | |
Net Amount | 0 | |
Counterparty A Member [Member] | ||
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 4,872,392,000 | 135,210,000 |
Gross Amounts Offset in the Statements of Financial Position | (4,582,540,000) | (21,508,000) |
Net Amounts Presented in the Statements of Financial Position | 289,852,000 | 113,702,000 |
Financial Instruments/Collateral | 0 | (101,288,000) |
Net Amount | 289,852,000 | 12,414,000 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 1,654,360,000 | 25,277,000 |
Gross Amounts Offset in the Statements of Financial Position | (1,654,360,000) | (25,277,000) |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (3,526,514) | $ 1,381 | $ (8,113) |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3,006 | 608 | 14 |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10,164 | 1,318 | 277 |
Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,102) | 10,008 | 8,492 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3,006 | 608 | 14 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 9,648 | 1,116 | 134 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,102) | 10,008 | 8,492 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3,006 | 608 | 14 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 9,648 | 1,116 | 134 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,102) | 10,008 | 8,492 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,526,514) | 1,381 | (8,113) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 516 | 202 | 143 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2,219,894) | 20,536 | 123,327 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 361 | 115 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 11,642 | 8,337 | 5,934 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 516 | 202 | 143 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (3) | (14) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,755,946) | (3,233) | (23,811) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 437,323 | (24,371) | (113,549) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | $ 14,847 | $ 4,839 | $ (3,653) |
Net deferred gains (losses) on cash flow hedges for the period | 9,698 | 12,078 | 8,640 |
Amount reclassified into current period earnings | (12,800) | (2,070) | (148) |
Ending Balance | $ 11,745 | $ 14,847 | $ 4,839 |
Commitments, Contingent Liabi85
Commitments, Contingent Liabilities and Litigation and Regulatory Matters (Narrative) (Details) $ in Millions | 1 Months Ended | |||
Feb. 29, 2012state | Jan. 31, 2012state | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ||||
Commitments to fund commercial loans | $ 9 | $ 5 | ||
Commitments to fund investments | 121 | $ 53 | ||
Number of States Needed for Agreement to Become Effective | state | 20 | 20 | ||
Maximum | ||||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | ||||
Estimate of possible losses in excess of accruals | $ 150 |
Reinsurance (Balance Sheet Rein
Reinsurance (Balance Sheet Reinsurance Results) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | $ 588,608 | $ 3,088,328 | ||
Deferred policy acquisition costs | 4,344,361 | 749,302 | $ 1,114,431 | $ 1,345,504 |
Deferred sales inducements | 978,823 | 452,752 | 665,207 | 809,247 |
Value of business acquired | 30,287 | 33,640 | $ 39,738 | $ 43,500 |
Other assets | 169,649 | 123,158 | ||
Policyholders’ account balances | 4,736,889 | 2,416,125 | ||
Future policy benefits | 8,686,196 | 3,578,662 | ||
Reinsurance payable | 275,822 | 250,277 | ||
Other liabilities | 489,007 | 100,401 | ||
Impacts of Reinsurance | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | 588,608 | 3,088,328 | ||
Deferred policy acquisition costs | 3,557,248 | (73,864) | ||
Deferred sales inducements | 520,182 | (39,253) | ||
Value of business acquired | (2,357) | (2,632) | ||
Other assets | 112,802 | 0 | ||
Policyholders’ account balances | 2,576,357 | 0 | ||
Future policy benefits | 5,130,753 | 0 | ||
Reinsurance payable | 275,822 | 250,277 | ||
Other liabilities | 335,713 | 0 | ||
Unaffiliated activity | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance payable | $ 100 | $ 200 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 588,608 | $ 3,088,328 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 306,191 | 323,363 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 282,326 | 0 |
Pruco Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 0 | 2,764,927 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 91 | $ 38 |
Reinsurance (Income Statement R
Reinsurance (Income Statement Reinsurance Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premiums: | |||
Direct | $ 39,326 | $ 33,250 | $ 34,903 |
Assumed | 860,831 | 0 | 0 |
Ceded | (3,318) | (23,463) | 0 |
Net premiums | 896,839 | 9,787 | 34,903 |
Policy charges and fee income: | |||
Direct | 647,226 | 743,956 | 809,072 |
Assumed | 1,153,752 | 0 | 0 |
Ceded | (45,754) | (3,133) | (2,745) |
Net policy charges and fee income | 1,755,224 | 740,823 | 806,327 |
Asset administration fees and other income: | |||
Direct | 103,892 | 177,479 | 227,619 |
Assumed | 205,221 | 0 | 0 |
Ceded | (9,729) | 0 | 0 |
Net asset administration fees and other income | 299,384 | 177,479 | 227,619 |
Realized investment gains (losses), net: | |||
Direct | (3,612,578) | 247,525 | (1,967,588) |
Assumed | (81,510) | 0 | 0 |
Ceded | 251,328 | (241,473) | 1,974,956 |
Total realized investment gains (losses), net | (3,442,760) | 6,052 | 7,368 |
Policyholders' benefits (including change in reserves): | |||
Direct | 74,438 | 81,719 | 137,502 |
Assumed | 553,280 | 0 | 0 |
Ceded | (23,661) | (21,258) | (367) |
Net policyholders' benefits (including change in reserves) | 604,057 | 60,461 | 137,135 |
Interest credited to policyholders’ account balances: | |||
Direct | 74,389 | 225,555 | 211,058 |
Assumed | (1,551) | 0 | 0 |
Ceded | (3,949) | 0 | 0 |
Net interest credited to policyholders’ account balances | 68,889 | 225,555 | 211,058 |
Net reinsurance expense allowances, net of capitalization and amortization(3) | 563,027 | (6,054) | (3,874) |
Unaffiliated activity | |||
Policy charges and fee income: | |||
Ceded | (2,000) | (3,000) | (3,000) |
Policyholders' benefits (including change in reserves): | |||
Ceded | $ (300) | $ (100) | $ (400) |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | $ 46,166 | ||
Income tax benefit (expense) | 680,493 | $ 8,285 | $ (8,604) |
Ending Balance | (314,948) | 46,166 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | (65) | (30) | 10 |
Change in other comprehensive income before reclassifications | (20) | (54) | (63) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Income tax benefit (expense) | 7 | 19 | 23 |
Ending Balance | (78) | (65) | (30) |
Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | 46,231 | 84,652 | 70,857 |
Change in other comprehensive income before reclassifications | (469,356) | (54,279) | 35,931 |
Amounts reclassified from AOCI | (86,184) | (4,831) | (14,706) |
Income tax benefit (expense) | 194,439 | 20,689 | (7,430) |
Ending Balance | (314,870) | 46,231 | 84,652 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | 46,166 | 84,622 | 70,867 |
Change in other comprehensive income before reclassifications | (469,376) | (54,333) | 35,868 |
Amounts reclassified from AOCI | (86,184) | (4,831) | (14,706) |
Income tax benefit (expense) | 194,446 | 20,708 | (7,407) |
Ending Balance | (314,948) | 46,166 | 84,622 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | 15,000 | 5,000 | |
Ending Balance | $ 12,000 | $ 15,000 | $ 5,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ 86,184 | $ 4,831 | $ 14,706 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 86,184 | 4,831 | 14,706 |
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges - Currency/Interest rate | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net unrealized investment gains (losses) | 12,800 | 2,070 | 148 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net unrealized investment gains (losses) | 73,384 | 2,761 | 14,558 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 86,184 | 4,831 | 14,706 |
Reclassification out of Accumulated Other Comprehensive Income | Total Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ 86,184 | $ 4,831 | $ 14,706 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 46,166 | ||
Ending Balance | (314,948) | $ 46,166 | |
OTTI | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 9 | 1 | $ 323 |
Net investment gains (losses) on investments arising during the period | 378 | (9) | (11) |
Reclassification adjustment for (gains) losses included in net income | 556 | 17 | (311) |
Reclassification adjustment for (gains) losses excluded from net income | (2,204) | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (1,261) | 9 | 1 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (3) | 0 | (116) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses excluded from net income | 0 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (2,130) | (3) | 116 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (2,133) | (3) | 0 |
OTTI | Future Policy Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0 | 0 | (14) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses excluded from net income | 0 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | (522) | 0 | 14 |
Ending Balance | (522) | 0 | 0 |
OTTI | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 14 | 16 | (51) |
Net investment gains (losses) on investments arising during the period | (132) | 3 | 4 |
Reclassification adjustment for (gains) losses included in net income | (195) | (6) | 109 |
Reclassification adjustment for (gains) losses excluded from net income | 771 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 746 | 1 | (41) |
Impact of net unrealized investment (gains) losses on future policy benefits | 183 | 0 | (5) |
Ending Balance | 1,387 | 14 | 16 |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 20 | 17 | 142 |
Net investment gains (losses) on investments arising during the period | 246 | (6) | (7) |
Reclassification adjustment for (gains) losses included in net income | 361 | 11 | (202) |
Reclassification adjustment for (gains) losses excluded from net income | (1,433) | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (1,384) | (2) | 75 |
Impact of net unrealized investment (gains) losses on future policy benefits | (339) | 0 | 9 |
Ending Balance | $ (2,529) | $ 20 | $ 17 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 46,166 | ||
Ending Balance | (314,948) | $ 46,166 | |
All Other | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 107,451 | 198,922 | $ 184,727 |
Net investment gains (losses) on investments arising during the period | (637,597) | (86,623) | 28,590 |
Reclassification adjustment for (gains) losses included in net income | 85,628 | (4,848) | (14,395) |
Reclassification adjustment for (gains) losses excluded from net income | 2,204 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (442,314) | 107,451 | 198,922 |
All Other | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (30,465) | (59,045) | (66,452) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses excluded from net income | 0 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (786) | 28,580 | 7,407 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (31,251) | (30,465) | (59,045) |
All Other | Future Policy Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (4,596) | (8,372) | (8,187) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses excluded from net income | 0 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | (1,068) | 3,776 | (185) |
Ending Balance | (5,664) | (4,596) | (8,372) |
All Other | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (26,179) | (46,870) | (39,363) |
Net investment gains (losses) on investments arising during the period | 223,159 | 30,319 | (10,013) |
Reclassification adjustment for (gains) losses included in net income | (29,970) | 1,697 | 5,036 |
Reclassification adjustment for (gains) losses excluded from net income | (771) | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 275 | (10,003) | (2,594) |
Impact of net unrealized investment (gains) losses on future policy benefits | 374 | (1,322) | 64 |
Ending Balance | 166,888 | (26,179) | (46,870) |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 46,211 | 84,635 | 70,725 |
Net investment gains (losses) on investments arising during the period | (414,438) | (56,304) | 18,577 |
Reclassification adjustment for (gains) losses included in net income | 55,658 | (3,151) | (9,359) |
Reclassification adjustment for (gains) losses excluded from net income | 1,433 | ||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (511) | 18,577 | 4,813 |
Impact of net unrealized investment (gains) losses on future policy benefits | (694) | 2,454 | (121) |
Ending Balance | $ (312,341) | $ 46,211 | $ 84,635 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||||||
Other long-term investments | $ 551,931,000 | $ 182,157,000 | $ 551,931,000 | $ 182,157,000 | ||||||
Net investment income | 338,370,000 | 139,430,000 | $ 164,011,000 | |||||||
Contributed capital | $ 860,573,000 | 860,573,000 | 0 | 0 | ||||||
Prudential Insurance | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Stock option program plan expense | 100,000 | 100,000 | 100,000 | |||||||
Deferred compensation program expense | 800,000 | 600,000 | 1,000,000 | |||||||
Pension plan expense | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Welfare plan expense | $ 2,000,000 | 2,000,000 | 3,000,000 | |||||||
Defined contribution plan employer matching contribution percent | 4.00% | |||||||||
Defined contribution plan, cost recognized | $ 500,000 | 500,000 | 700,000 | |||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accrued interest receivable related to long-term notes | 100,000 | 100,000 | 100,000 | 100,000 | ||||||
Revenue related to long-tern notes receivable | 900,000 | 1,000,000 | 1,000,000 | |||||||
Interest expense related to loans payable | 53,000,000 | 0 | 0 | |||||||
Affiliated Entity | PAIST | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Allocated lease expense | 4,000,000 | 4,000,000 | 4,000,000 | |||||||
Allocated sub-lease rental income | 0 | 0 | 1,000,000 | |||||||
Affiliated Entity | PAD | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Commissions and fees | 108,000,000 | 143,000,000 | 177,000,000 | |||||||
Affiliated Entity | ASTISI and Prudential Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue administrative sharing agreement | 112,000,000 | 173,000,000 | 221,000,000 | |||||||
Affiliated Entity | PGIM | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 11,000,000 | 5,000,000 | 6,000,000 | |||||||
Prudential Financial Joint Ventures | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other long-term investments | 102,000,000 | 45,000,000 | 102,000,000 | 45,000,000 | ||||||
Net investment income | 5,000,000 | 100,000 | 2,000,000 | |||||||
Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 9,000,000,000 | 9,000,000,000 | ||||||||
PAI | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contributed capital | $ 8,422,000,000 | 0 | 0 | |||||||
Return of capital | $ 1,140,000,000 | |||||||||
Dividends | $ 267,000,000 | $ 75,000,000 | ||||||||
Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contributed capital | 8,421,955,000 | $ 0 | $ 0 | |||||||
Return of capital | $ (1,140,000,000) | |||||||||
Dividends | $ 180,000,000 | $ 270,000,000 |
Related Party Transactions (Lea
Related Party Transactions (Leases) (Details) - Affiliated Entity - PAIST $ in Thousands | Dec. 31, 2016USD ($) |
Lease | |
2,017 | $ 3,055 |
2,018 | 2,992 |
2,019 | 2,742 |
2,020 | 2,992 |
2,021 | 2,992 |
2022 and thereafter | 2,992 |
Total | 17,765 |
Sub-Lease | |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and thereafter | 0 |
Total | $ 0 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 40,925 | $ 37,340 |
U.S. Dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 0 | 24,203 |
U.S. Dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.36% | |
U.S. Dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 1.77% | |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 40,925 | 10,423 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.31% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% | |
Euro-denominated fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.30% | |
Total long-term notes receivable - affiliated | $ 0 | $ 2,714 |
Related Party Transactions (A96
Related Party Transactions (Affiliated Asset Transfers) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Gibraltar Life Insurance Co Ltd August-16 Sale | |
Related Party Transaction [Line Items] | |
Fair Value | $ 11,559 |
Book Value | 11,485 |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 |
Realized Investment Gain/ (Loss), Net of Tax | 48 |
Prudential Insurance September-16 Sale | |
Related Party Transaction [Line Items] | |
Fair Value | 47,066 |
Book Value | 36,639 |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | 0 |
Realized Investment Gain/ (Loss), Net of Tax | 6,777 |
Pruco Re September-16 Transfer in | |
Related Party Transaction [Line Items] | |
Fair Value | 91,586 |
Book Value | 80,732 |
Additional Paid-in Capital, Net of Tax Increase/ (Decrease) | (7,055) |
Realized Investment Gain/ (Loss), Net of Tax | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 1,000,000 | $ 1,000 |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 28,102 | 0 |
Interest Rates | 1.89% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 18,734 | 0 |
Interest Rates | 2.60% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 0 |
Interest Rates | 2.60% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 0 |
Interest Rates | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 18,734 | 0 |
Interest Rates | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 0 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 0 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 103,038 | 0 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 0 |
Interest Rates | 3.47% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 0 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 28,102 | 0 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 0 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 0 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 0 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 30,000 | 0 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 50,000 | 0 |
Interest Rates | 3.87% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 0 |
Interest Rates | 3.49% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 26,000 | 0 |
Interest Rates | 2.59% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 0 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 20,000 | 0 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 0 |
Interest Rates | 3.49% | |
Prudential Retirement Insurance & Annuity Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 34,000 | 0 |
Interest Rates | 3.09% | |
Prudential Funding Loan Issued 12/30/2015 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 1,000 |
Interest Rates | 5.05% |
Contract Withdrawal Provisions
Contract Withdrawal Provisions (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Surrender Charges [Line Items] | |
Surrender charge period in years (less than) | 10 years |
Maximum | |
Surrender Charges [Line Items] | |
Annuities surrender charge percentage | 9.00% |
Minimum | |
Surrender Charges [Line Items] | |
Annuities surrender charge percentage | 1.00% |
Quarterly Results of Operatio99
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ (181,460) | $ 719,985 | $ (892,563) | $ 201,095 | $ 219,952 | $ 268,802 | $ 279,135 | $ 305,682 | $ (152,943) | $ 1,073,571 | $ 1,240,228 |
Total benefits and expenses | 122,236 | (149,250) | 1,215,062 | 429,590 | 65,421 | 388,581 | 122,886 | 331,751 | 1,617,638 | 908,639 | 980,857 |
Income (loss) from operations before income taxes | (303,696) | 869,235 | (2,107,625) | (228,495) | 154,531 | (119,779) | 156,249 | (26,069) | (1,770,581) | 164,932 | 259,371 |
Net income (loss) | $ (200,842) | $ 569,649 | $ (1,316,230) | $ (142,665) | $ 167,431 | $ (104,826) | $ 131,914 | $ (21,302) | $ (1,090,088) | $ 173,217 | $ 250,767 |