Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2015

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2015 and December 31, 2014 were as follows:



	June 30, 2015			December 31, 2014
	(in thousands)
Reinsurance recoverable	$	19,642,472		$	20,594,371
Policy loans	(72,935		)	(69,501		)
Deferred policy acquisition costs	(1,963,446		)	(1,709,625		)
Other assets	37,745			39,458
Policyholders’ account balances	5,007,077			4,827,071
Future policy benefits and other policyholder liabilities	2,168,000			2,193,735
Other liabilities (reinsurance payables)	436,048			433,627

Reinsurance Table By Affiliate

The reinsurance recoverables by counterparty is broken out below.



	June 30, 2015		December 31, 2014
	(in thousands)
UPARC	$	275,209	$	407,209
PAR U	9,444,368		9,147,870
PURC	1,877,750		1,564,913
PARCC	2,537,573		2,499,567
PAR Term	1,120,484		1,001,181
Term Re	192,281		97,099
Prudential Insurance	188,872		188,466
Pruco Re	2,779,245		4,522,665
Prudential of Taiwan	1,213,912		1,157,881
Unaffiliated	12,778		7,520
Total Reinsurance Recoverables	$	19,642,472	$	20,594,371

Reinsurance Impact On Income Statement

Reinsurance amounts, excluding investment gains (losses) on affiliated asset transfers, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Premiums:
Direct	$	383,312		$	352,491		$	749,555		$	692,059
Assumed	—			—			—			—
Ceded	(359,830		)	(334,484		)	(710,436		)	(658,807		)
Net Premiums	23,482			18,007			39,119			33,252
Policy charges and fee income:
Direct	694,126			688,988			1,426,691			1,352,773
Assumed	(13,919		)	135,518			155,292			226,349
Ceded	(150,174		)	(301,310		)	(511,185		)	(542,301		)
Net policy charges and fee income	530,033			523,196			1,070,798			1,036,821
Net investment income:
Direct	102,306			104,007			206,354			202,998
Assumed	364			340			693			678
Ceded	(1,184		)	(1,127		)	(2,141		)	(1,979		)
Net investment income	101,486			103,220			204,906			201,697
Net other income:
Direct	12,841			13,167			25,152			26,574
Assumed & Ceded	2,172			—			7,078			—
Net other income	15,013			13,167			32,230			26,574
Interest credited to policyholders’ account balances:
Direct	73,790			105,230			216,195			206,123
Assumed	32,790			30,984			61,615			60,231
Ceded	(58,337		)	(52,438		)	(112,090		)	(102,775		)
Net interest credited to policyholders’ account balances	48,243			83,776			165,720			163,579
Policyholders’ benefits (including change in reserves):
Direct	466,298			466,514			952,425			963,994
Assumed	(12,799		)	137,403			223,085			320,078
Ceded	(396,233		)	(531,786		)	(1,059,843		)	(1,126,906		)
Net policyholders’ benefits (including change in reserves)	57,266			72,131			115,667			157,166
Net reinsurance expense allowances, net of capitalization and amortization	(17,371		)	(64,615		)	(87,083		)	(128,167		)
Realized investment gains (losses), net:
Direct	2,834,402			(477,059		)	2,167,967			(1,598,581		)
Assumed	—			—			—			—
Ceded	(3,005,058		)	508,727			(2,279,598		)	1,715,780
Realized investment gains (losses), net	$	(170,656	)	$	31,668		$	(111,631	)	$	117,199

Gross and Net Life Insurance in Force

The gross and net amounts of life insurance face amount in force as of June 30, 2015 and 2014 were as follows:



	June 30, 2015			June 30, 2014
	(in thousands)
Direct gross life insurance face amount in force	$	739,363,094		$	685,708,205
Assumed gross life insurance face amount in force	44,015,996			45,005,228
Reinsurance ceded	(722,711,390		)	(671,295,042		)
Net life insurance face amount in force	$	60,667,700		$	59,418,391

Affiliated Asset Transfer

The table below shows affiliated asset trades as of December 31, 2014 and June 30, 2015.



Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Additional Paid-in Capital, Net of Tax Increase/(Decrease)			Realized Investment Gain/(Loss), Net			Derivative Gain/(Loss)
				(in millions)
Prudential Insurance	March-14	Purchase	Fixed Maturities	$	13	$	13	$	—		$	—		$	—
Prudential Financial	September-14	Transfer In	Fixed Maturities & Private Equity	81		77		3			—			—
Prudential Financial	September-14	Transfer Out	Fixed Maturities	142		136		(4		)	—			—
PURC	September-14	Transfer Out	Fixed Maturities, Commercial Mortgages, & Private Equity	178		172		—			6			(8		)
Prudential Annuities Life Assurance Corporation	October-14	Purchase	Fixed Maturities	10		9		—			(1		)	—
Prudential Insurance	December-14	Purchase	Fixed Maturities, Commercial Mortgages, & Private Equity	122		102		(13		)	—			—
PURC	December-14	Purchase	JV/LP Investment	3		3		—			—			—
Prudential Insurance	March-15	Purchase	Fixed Maturities & Trading Account Assets	92		74		(12		)	—			—
Prudential Insurance	June-15	Purchase	Fixed Maturities	11		10		(1		)	—			—

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 - June 30, 2015		Amount of Notes - December 31, 2014		Interest Rate					Date of Maturity
		(in thousands)
Prudential Financial	6/20/2011	$	—	$	50,000	2.64				%	6/21/2015
Prudential Financial	12/15/2011	11,000		11,000		3.61				%	12/15/2016
Prudential Financial	12/16/2011	22,000		22,000		3.32	%	-	3.61	%	12/16/2015	-	12/16/2016
Prudential Insurance	12/20/2010	204,000		204,000		3.47				%	12/21/2015
Washington Street Investment	6/20/2012	158,000		237,000		2.44	%	-	3.02	%	6/15/2015	-	6/15/2017
Washington Street Investment	12/17/2012	198,000		198,000		1.33	%	-	1.87	%	12/17/2015	-	12/17/2017
Washington Street Investment	12/17/2012	39,000		39,000		1.33	%	-	1.87	%	12/17/2015	-	12/17/2017
Prudential Financial	11/15/2013	9,000		9,000		2.24				%	12/15/2018
Prudential Financial	11/15/2013	23,000		23,000		3.19				%	12/15/2020
Prudential Insurance	12/6/2013	120,000		120,000		2.60				%	12/15/2018
Prudential Insurance	12/6/2013	130,000		130,000		4.39				%	12/15/2023
Prudential Insurance	12/6/2013	250,000		250,000		3.64				%	12/15/2020
Prudential Insurance	9/25/2014	30,000		30,000		1.89				%	6/20/2017
Prudential Insurance	9/25/2014	40,000		40,000		3.95				%	6/20/2024
Prudential Insurance	9/25/2014	20,000		20,000		2.80				%	6/20/2019
Prudential Insurance	9/25/2014	50,000		50,000		3.95				%	6/20/2024
Prudential Insurance	9/25/2014	50,000		50,000		2.80				%	6/20/2019
Prudential Insurance	9/25/2014	100,000		100,000		3.47				%	6/20/2021
Prudential Insurance	9/25/2014	100,000		100,000		3.95				%	6/20/2024
Prudential Financial	12/15/2014	5,000		5,000		2.57				%	12/15/2019
Prudential Financial	12/15/2014	23,000		23,000		3.14				%	12/15/2021
Prudential Financial	6/15/2015	66,000		—		3.52				%	6/15/2022
Prudential Financial	6/15/2015	6,000		—		2.86				%	6/15/2020
Total Loans Payable to Affiliates		$	1,654,000	$	1,711,000