Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2015

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:

	2015			2014			2013
	(in thousands)
Balance, beginning of year	$	5,066,855		$	5,034,299		$	3,679,061
Capitalization of commissions, sales and issue expenses	616,002			626,718			822,075
Amortization-Impact of assumption and experience unlocking and true-ups	108,563			272,385			(9,167		)
Amortization-All other	(771,207		)	(708,554		)	533,478
Change in unrealized investment gains and losses	91,160			(67,056		)	167,880
Ceded DAC upon Coinsurance Treaty with PAR U and PURC (See Note 12)	—			(90,937		)	(159,028		)
Balance, end of year	$	5,111,373		$	5,066,855		$	5,034,299

DAC include reductions in capitalization and amortization related to reinsurance expense allowances resulting from the coinsurance treaties with PARCC, PAR Term, Term Re, PAR U and PURC, reductions for the initial balance transferred to PAR U and PURC at inception of the coinsurance agreements and the pass through of the GUL business related to the acquisition of The Hartford Life business assumed from Prudential Insurance and subsequently retroceded to PAR U as discussed in Note 12.

Capitalization balances related to reinsurance amounted to $435 million, $337 million and $285 million in 2015, 2014 and 2013, respectively. Amortization balances related to reinsurance amounted to $150 million, $204 million and $89 million in 2015, 2014 and 2013, respectively. Reinsurance impacts to the change in unrealized gains/(losses) resulted in decreases in the deferred acquisition cost asset of $127 million and $161 million in 2015 and 2013, respectively, and an increase in the deferred acquisition cost asset of $142 million in 2014.