XML 30 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
Reinsurance Table
Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2016 and December 31, 2015 were as follows:
 
June 30, 2016
 
December 31, 2015
 
(in thousands)
Reinsurance recoverables
$
30,853,161

 
$
22,546,361

Policy loans
(80,616
)
 
(75,697
)
Deferred policy acquisition costs
(5,680,833
)
 
(2,122,349
)
Other assets
(288,337
)
 
35,616

Policyholders’ account balances
4,929,689

 
5,020,230

Future policy benefits and other policyholder liabilities
2,947,810

 
2,380,215

Other liabilities
330,835

 
494,660
Reinsurance Table By Affiliate
The reinsurance recoverable by counterparty is broken out below.
 
June 30, 2016
 
December 31, 2015
 
(in thousands)
UPARC
$
519,245

 
$
376,660

PAR U
10,207,953

 
9,797,733

PURC
2,410,583

 
2,251,692

PARCC
2,574,933

 
2,560,798

PAR Term
1,310,695

 
1,226,761

Term Re
457,306

 
298,002

Prudential Insurance
1,265,759

 
226,926

Pruco Re
—

 
4,594,412

Prudential of Taiwan
1,219,785

 
1,169,664

PALAC
10,802,564

 
—

Unaffiliated
84,338

 
43,713

Total reinsurance recoverables
$
30,853,161

 
$
22,546,361
Reinsurance Impact On Income Statement
Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2016 and 2015 were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
408,518

 
$
383,312

 
$
799,698

 
$
749,555

Assumed
1

 
—

 
149

 
—

Ceded
(1,260,611
)
 
(359,830
)
 
(1,634,024
)
 
(710,436
)
Net premiums
(852,092
)
 
23,482

 
(834,177
)
 
39,119

Policy charges and fee income:
 
 
 
 
 
 
 
Direct
509,535

 
694,126

 
1,244,512

 
1,426,691

Assumed
109,910

 
(13,919
)
 
304,223

 
155,292

Ceded
(577,597
)
 
(150,174
)
 
(979,480
)
 
(511,185
)
Net policy charges and fee income
41,848

 
530,033

 
569,255

 
1,070,798

Net investment income:
 
 
 
 
 
 
 
Direct
79,518

 
102,306

 
185,656

 
206,354

Assumed
351

 
364

 
695

 
693

Ceded
(1,250
)
 
(1,184
)
 
(2,280
)
 
(2,141
)
Net investment income
78,619

 
101,486

 
184,071

 
204,906

Other income:
 
 
 
 
 
 
 
Direct
12,077

 
12,841

 
23,772

 
25,152

Assumed & Ceded
(20,676
)
 
2,172

 
(18,849
)
 
7,078

Net other income
(8,599
)
 
15,013

 
4,923

 
32,230

Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
105,629

 
73,790

 
319,111

 
216,195

Assumed
31,583

 
32,790

 
65,418

 
61,615

Ceded
(109,236
)
 
(58,337
)
 
(170,122
)
 
(112,090
)
Net interest credited to policyholders’ account balances
27,976

 
48,243

 
214,407

 
165,720

Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
342,039

 
466,298

 
951,674

 
952,425

Assumed
211,698

 
(12,799
)
 
472,575

 
223,085

Ceded
(984,174
)
 
(396,233
)
 
(1,756,158
)
 
(1,059,843
)
Net policyholders’ benefits (including change in reserves)
(430,437
)
 
57,266

 
(331,909
)
 
115,667

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
(1,228,076
)
 
2,834,402

 
(2,762,428
)
 
2,167,967

Assumed
39

 
—

 
—

 
—

Ceded
2,088,499

 
(3,005,058
)
 
3,678,041

 
(2,279,598
)
Realized investment gains (losses), net
860,462

 
(170,656
)
 
915,613

 
(111,631
)
Net reinsurance expense allowances, net of capitalization and amortization
(443,316
)
 
(17,371
)
 
(537,245
)
 
(87,083
)
Gross and Net Life Insurance in Force
The gross and net amounts of life insurance face amount in force as of June 30, 2016 and 2015 were as follows:
 
June 30, 2016
 
June 30, 2015
 
(in thousands)
Direct gross life insurance face amount in force
$
799,112,347

 
$
739,363,094

Assumed gross life insurance face amount in force
43,205,999

 
44,015,996

Reinsurance ceded
(779,268,303
)
 
(722,711,390
)
Net life insurance face amount in force
$
63,050,043

 
$
60,667,700
Affiliated Asset Transfer
The table below shows affiliated asset trades for the six months ended June 30, 2016 and for the year ended December 31, 2015, excluding those related to the Variable Annuities Recapture effective April 1, 2016, as described in Note 1.
Affiliate
 
Date
 
Transaction  
 
Security Type  
 
Fair Value  
 
Book Value  
 
APIC, Net of Tax Increase/(Decrease)
 
Realized
Investment
Gain/(Loss), Net
 
Derivative
Gain/(Loss)
 
 
 
 
 
 
 
 
(in millions)
Prudential Insurance
 
March-15
 
Purchase
 
Fixed Maturities & Trading Account Assets
 
$
92

 
$
74

 
$
(12
)
 
$
0

 
$
0

Prudential Insurance
 
June-15
 
Purchase
 
Fixed Maturities
 
$
11

 
$
10

 
$
(1
)
 
$
0

 
$
0

Prudential Insurance
 
March-16
 
Sale
 
Fixed Maturities & Short-Term Investments
 
$
89

 
$
89

 
$
(1
)
 
$
0

 
$
0
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, 2016
 
Amount of Notes - December 31, 2015
 
Interest Rate  
 
Date of Maturity  
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Prudential Financial
 
12/15/2011
 
$
0

 
$
11,000

 
 
 
3.61
%
 
 
 
12/15/2016
Prudential Financial
 
12/16/2011
 
0

 
11,000

 
 
 
3.61
%
 
 
 
12/16/2016
Prudential Financial
 
11/15/2013
 
0

 
9,000

 
 
 
2.24
%
 
 
 
12/15/2018
Prudential Financial
 
11/15/2013
 
0

 
23,000

 
 
 
3.19
%
 
 
 
12/15/2020
Prudential Insurance
 
12/6/2013
 
0

 
120,000

 
 
 
2.60
%
 
 
 
12/15/2018
Prudential Insurance
 
12/6/2013
 
0

 
130,000

 
 
 
4.39
%
 
 
 
12/15/2023
Prudential Insurance
 
12/6/2013
 
0

 
250,000

 
 
 
3.64
%
 
 
 
12/15/2020
Prudential Insurance
 
9/25/2014
 
0

 
30,000

 
 
 
1.89
%
 
 
 
6/20/2017
Prudential Insurance
 
9/25/2014
 
0

 
40,000

 
 
 
3.95
%
 
 
 
6/20/2024
Prudential Insurance
 
9/25/2014
 
0

 
20,000

 
 
 
2.80
%
 
 
 
6/20/2019
Prudential Insurance
 
9/25/2014
 
0

 
50,000

 
 
 
3.95
%
 
 
 
6/20/2024
Prudential Insurance
 
9/25/2014
 
0

 
50,000

 
 
 
2.80
%
 
 
 
6/20/2019
Prudential Insurance
 
9/25/2014
 
0

 
100,000

 
 
 
3.47
%
 
 
 
6/20/2021
Prudential Insurance
 
9/25/2014
 
0

 
100,000

 
 
 
3.95
%
 
 
 
6/20/2024
Prudential Financial
 
12/15/2014
 
0

 
5,000

 
 
 
2.57
%
 
 
 
12/15/2019
Prudential Financial
 
12/15/2014
 
0

 
23,000

 
 
 
3.14
%
 
 
 
12/15/2021
Prudential Financial
 
6/15/2015
 
0

 
66,000

 
 
 
3.52
%
 
 
 
6/15/2022
Prudential Financial
 
6/15/2015
 
0

 
6,000

 
 
 
2.86
%
 
 
 
6/15/2020
Prudential Financial
 
9/21/2015
 
0

 
158,000

 
1.09
%
-
1.63
%
 
6/15/2016
-
6/15/2017
Prudential Financial
 
9/21/2015
 
0

 
132,000

 
1.40
%
-
1.93
%
 
12/17/2016
-
12/17/2017
Prudential Financial
 
9/21/2015
 
0

 
26,000

 
1.40
%
-
1.93
%
 
12/17/2016
-
12/17/2017
Prudential Financial
 
12/16/2015
 
0

 
5,000

 
 
 
2.85
%
 
 
 
12/16/2020
Prudential Financial
 
12/16/2015
 
0

 
1,000

 
 
 
2.85
%
 
 
 
12/16/2020
Prudential Financial
 
12/16/2015
 
0

 
18,000

 
 
 
3.37
%
 
 
 
12/16/2022
Total Loans Payable to Affiliates
 
 
 
$
0

 
$
1,384,000