Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions

Related Party Transactions

2.  Related Party Transactions

Effective September 30, 2012, Lincoln Benefit Life Company, a consolidated subsidiary of ALIC, entered into a coinsurance reinsurance agreement with Lincoln Benefit Reinsurance Company (“LB Re”), an unconsolidated affiliate of the Company, to cede certain interest-sensitive life insurance policies to LB Re.  In connection with the agreement, the Company recorded reinsurance recoverables of $2 million and payable to affiliates of $3 million.  The $1 million loss on the transaction was recorded as a decrease to retained income since the transaction was between affiliates under common control.

In the first quarter of 2012, Road Bay Investments, LLC (“RBI”), a consolidated subsidiary of ALIC, repaid $1 million and $3 million of principal on the 7.00% Note due 2017 and the 5.80% Note due 2018, respectively, to American Heritage Life Insurance Company (“AHL”), an unconsolidated affiliate of the Company.