Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2015

Included in the consolidated balance sheets are the following amounts related to reinsurance ceded to and assumed from related parties:



	December 31,
	2015		2014
Reinsurance receivable	$	530,213	$	529,921
Future policy benefits	1,724,797		1,812,077

Included in the consolidated statements of income are the following related party amounts:



	Year Ended December 31,
	2015			2014			2013
Premium income, net of related party premiums ceded of $15,731, $13,901, and $(30,114)	$	68,722		$	71,453		$	137,785
Life and other policy benefits, net of reinsurance recoveries of $6,494, $4,594, and $(536)	193,215			209,102			216,809
Decrease in future policy benefits	(52,842		)	(46,915		)	(2,556		)

Schedule of revenue, expenses incurred and expense reimbursement from related parties for services provided

The following table presents revenue, expenses incurred and expense reimbursement from related parties for services provided and/or received pursuant to these service agreements. These amounts, in accordance with the terms of the contracts, are based upon market price, estimated costs incurred or resources expended as determined by number of policies, number of participants, certificates in-force, administered assets, or other similar drivers.



		Year Ended December 31,									Financial statement line
Description	Related party	2015			2014			2013			Financial statement line
Provides corporate support service	The Canada Life Assurance Company (“CLAC”)⁽¹⁾, Great-West Life Assurance Company (“Great-West Life”)⁽¹⁾, MAM Holding Inc. ⁽¹⁾, and Putnam⁽²⁾	$	(4,115	)	$	(2,055	)	$	(1,971	)	General insurance expense
Receives corporate support services	CLAC⁽¹⁾, Great-West Life⁽¹⁾, Great West Global⁽¹⁾, and Putnam⁽²⁾	12,609			4,053			2,556			General insurance expense
Provides investment advisory and administrative services to U.S. branches of Lifeco insurance subsidiaries	CLAC⁽¹⁾and Great-West Life⁽¹⁾	1,710			1,803			2,586			Net investment income
Provides investment advisory and administrative services to Canadian subsidiaries of Lifeco	CLAC⁽¹⁾, Great-West Life⁽¹⁾, and London Life Financial Corporation (“London Life”)⁽¹⁾	3,882			3,912			4,487			Fee income
Provides record-keeping services	CLAC⁽¹⁾ and Putnam⁽²⁾	377			13,956			10,625			Fee income
Provides U.S. tax services	London Life⁽¹⁾, LRG (US) Inc.⁽¹⁾, Putnam⁽²⁾, Thomas H. Lee Partners L.P.⁽¹⁾, and CLAC⁽¹⁾	(533		)	(402		)	(361		)	General insurance expense
Provides shareholder services	Putnam⁽²⁾	5,531			—			—			Fee income
Receives reimbursement from tax sharing indemnification related to state and local tax liabilities	Putnam⁽²⁾	13,563			7,506			—			Other revenue
	Putnam⁽²⁾	—			—			8,114			Fee income
Received internally developed internal use software	Putnam⁽²⁾	2,226			1,008			—			Other assets

⁽¹⁾ An indirect wholly-owned subsidiary of Lifeco

⁽²⁾ A wholly-owned subsidiary of Lifeco U.S.

Schedule of amounts due from parent and affiliates

The following table summarizes amounts due from parent and affiliates:



			December 31,
Related party	Indebtedness	Due date	2015		2014
GWL&A Financial	On account	On demand	$	38,864	$	32,572
Lifeco U.S.	On account	On demand	11,783		13,369
Putnam	On account	On demand	9,547		—
Other related party receivables	On account	On demand	2,402		1,252
Total			$	62,596	$	47,193

Schedule of amounts due to parent and affiliates

The following table summarizes amounts due to parent and affiliates:



			December 31,
Related party	Indebtedness	Due date	2015		2014
GWL&A Financial ⁽¹⁾	Surplus note	November 2034	$	194,474	$	194,446
GWL&A Financial ⁽²⁾	Surplus note	May 2046	333,400		333,400
GWL&A Financial	Note interest	May 2016	4,701		4,701
Putnam	On account	On demand	—		7,257
CLAC	On account	On demand	4,021		3,986
Great-West Life	On account	On demand	1,936		1,739
London Life	On account	On demand	1,778		1,737
Total			$	540,310	$	547,266

⁽¹⁾ A note payable to GWL&A Financial was issued as a surplus note on November 15, 2004, with a face amount of $195,000 and carrying amounts of $194,474 and $194,446 at December 31, 2015, and 2014, respectively. The surplus note bears interest at the rate of 6.675% per annum, payable in arrears each May and November. The note matures on November 14, 2034.

⁽²⁾ A note payable to GWL&A Financial was issued as a surplus note on May 19, 2006, with a face amount and carrying amount of $333,400. The surplus note bears interest initially at the rate of 7.203% per annum, payable in arrears each May and November until May 16, 2016. After May 16, 2016, the surplus note bears an interest rate of 2.588% plus the then-current three-month London Interbank Offering Rate (“LIBOR”). The surplus note is redeemable by the Company at the principal amount plus any accrued and unpaid interest after May 16, 2016. The note matures on May 16, 2046.

The Company recorded the following on January 1, 2013, in its consolidated statement of income in connection with the termination of the reinsurance agreement:



Premium income	$	42,297
Other revenue	7,355
Total	49,652

Increase in future policy benefits	41,297
Dividends to policyholders	1,000
Total	42,297

Participating policyholders’ net income before income taxes	7,355
Income tax expense	2,574
Participating policyholders’ income	4,781

Provision for policyholders’ share of earnings on participating business	4,781
Net income available to shareholder	$	—