Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2015

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



	September 30, 2015			December 31, 2014
	(in thousands)
Reinsurance recoverable	$	22,390,247		$	20,594,371
Policy loans	(75,329		)	(69,501		)
Deferred policy acquisition costs	(2,007,717		)	(1,709,625		)
Other assets	36,478			39,458
Policyholders’ account balances	4,958,236			4,827,071
Future policy benefits and other policyholder liabilities	2,355,624			2,193,735
Other liabilities (reinsurance payables)	436,170			433,627

Reinsurance Table By Affiliate

The reinsurance recoverables by counterparty is broken out below.



	September 30, 2015		December 31, 2014
	(in thousands)
UPARC	$	351,142	$	407,209
PAR U	9,622,194		9,147,870
PURC	2,007,832		1,564,913
PARCC	2,522,752		2,499,567
PAR Term	1,174,462		1,001,181
Term Re	238,601		97,099
Prudential Insurance	220,580		188,466
Pruco Re	5,055,044		4,522,665
Prudential of Taiwan	1,151,669		1,157,881
Unaffiliated	45,971		7,520
Total Reinsurance Recoverables	$	22,390,247	$	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 nine months ended September 30, 2015 and 2014 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Premiums:
Direct	$	379,576		$	351,605		$	1,129,131		$	1,043,664
Assumed	—			—			—			—
Ceded	(359,255		)	(339,985		)	(1,069,691		)	(998,792		)
Net Premiums	20,321			11,620			59,440			44,872
Policy charges and fee income:
Direct	761,722			673,238			2,188,413			2,026,012
Assumed	179,717			98,177			336,672			279,553
Ceded	(394,035		)	(269,420		)	(906,883		)	(766,749		)
Net policy charges and fee income	547,404			501,995			1,618,202			1,538,816
Net investment income:
Direct	102,847			101,603			309,201			304,601
Assumed	354			325			1,047			1,003
Ceded	(986		)	(974		)	(3,127		)	(2,953		)
Net investment income	102,215			100,954			307,121			302,651
Net other income:
Direct	8,138			11,644			33,289			38,217
Assumed & Ceded	3,576			3,747			10,655			3,748
Net other income	11,714			15,391			43,944			41,965
Interest credited to policyholders’ account balances:
Direct	182,788			114,506			398,983			320,629
Assumed	31,541			26,004			93,155			86,236
Ceded	(57,843		)	(50,384		)	(169,932		)	(153,160		)
Net interest credited to policyholders’ account balances	156,486			90,126			322,206			253,705
Policyholders’ benefits (including change in reserves):
Direct	538,619			450,192			1,491,043			1,414,187
Assumed	208,099			175,517			431,184			495,595
Ceded	(634,270		)	(535,030		)	(1,694,112		)	(1,661,937		)
Net policyholders’ benefits (including change in reserves)	112,448			90,679			228,115			247,845
Net reinsurance expense allowances, net of capitalization and amortization	(64,380		)	(60,309		)	(151,463		)	(188,476		)
Realized investment gains (losses), net:
Direct	(2,149,496		)	(1,031,777		)	18,471			(2,630,358		)
Assumed	—			—			—			—
Ceded	2,146,512			993,819			(133,086		)	2,709,599
Realized investment gains (losses), net	$	(2,984	)	$	(37,958	)	$	(114,615	)	$	79,241

Gross and Net Life Insurance in Force

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



	September 30, 2015			September 30, 2014
	(in thousands)
Direct gross life insurance face amount in force	$	753,935,518		$	695,841,721
Assumed gross life insurance face amount in force	43,795,607			44,761,141
Reinsurance ceded	(736,832,258		)	(681,742,655		)
Net life insurance face amount in force	$	60,898,867		$	58,860,207

Affiliated Asset Transfer

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



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 - September 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	—		237,000		2.44	%	-	3.02	%	6/15/2015	-	6/15/2017
Washington Street Investment	12/17/2012	—		198,000		1.33	%	-	1.87	%	12/17/2015	-	12/17/2017
Washington Street Investment	12/17/2012	—		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
Prudential Financial	9/21/2015	158,000		—		1.09	%	-	1.63	%	6/15/2016	-	6/15/2017
Prudential Financial	9/21/2015	132,000		—		1.40	%	-	1.93	%	12/17/2016	-	12/17/2017
Prudential Financial	9/21/2015	26,000		—		1.40	%	-	1.93	%	12/17/2016	-	12/17/2017
Total Loans Payable to Affiliates		$	1,575,000	$	1,711,000