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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2016
Reinsurance Disclosures [Abstract]  
Reinsurance Impact on Balance Sheet
Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of September 30, 2016 and December 31, 2015 were as follows:
 
September 30, 2016
 
December 31, 2015
 
(in thousands)
Reinsurance recoverables
$
31,785,676

 
$
22,691,491

Policy loans
(82,497
)
 
(75,697
)
Deferred policy acquisition costs
(5,931,554
)
 
(2,158,121
)
Deferred sales inducements
(579,020
)
 
0

Other assets
217,222

 
35,616

Policyholders’ account balances
4,950,899

 
5,020,230

Future policy benefits
3,086,284

 
2,380,215

Other liabilities (1)
362,415

 
516,525



(1)
“Other liabilities” includes $18 million and $22 million of unaffiliated activity as of September 30, 2016 and December 31, 2015, respectively.
Reinsurance Table By Affiliate
The reinsurance recoverable by counterparty is broken out below.
 
September 30, 2016
 
December 31, 2015
 
(in thousands)
PALAC
$
10,697,284

 
$
0

PAR U
10,604,627

 
9,867,902

PURC
2,807,832

 
2,324,163

PARCC
2,586,898

 
2,563,300

PAR Term
1,399,771

 
1,226,749

Prudential of Taiwan
1,266,956

 
1,169,664

Prudential Insurance
1,262,242

 
226,926

UPARC
570,617

 
376,660

Term Re
512,044

 
298,002

Pruco Re
0

 
4,594,412

Unaffiliated
77,405

 
43,713

Total reinsurance recoverables
$
31,785,676

 
$
22,691,491
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 nine months ended September 30, 2016 and 2015 were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
403,893

 
$
379,576

 
$
1,203,591

 
$
1,129,131

Assumed (1)
142

 
0

 
291

 
0

Ceded
(375,020
)
 
(359,255
)
 
(2,009,044
)
 
(1,069,691
)
Net premiums
29,015

 
20,321

 
(805,162
)
 
59,440

Policy charges and fee income:
 
 
 
 
 
 
 
Direct
753,980

 
759,102

 
2,038,611

 
2,182,915

Assumed
112,825

 
179,717

 
417,048

 
336,672

Ceded (2)
(778,326
)
 
(392,475
)
 
(1,781,686
)
 
(903,610
)
Net policy charges and fee income
88,479

 
546,344

 
673,973

 
1,615,977

Net investment income:
 
 
 
 
 
 
 
Direct
104,448

 
102,847

 
290,104

 
309,201

Assumed
356

 
354

 
1,051

 
1,047

Ceded
(1,061
)
 
(986
)
 
(3,341
)
 
(3,127
)
Net investment income
103,743

 
102,215

 
287,814

 
307,121

Asset administration fees:
 
 
 
 
 
 
 
Direct
80,474

 
84,814

 
229,865

 
285,866

Assumed
0

 
0

 
0

 
0

Ceded
(76,470
)
 
0

 
(149,466
)
 
0

Net asset administration fees
4,004

 
84,814

 
80,399

 
285,866

Other income:
 
 
 
 
 
 
 
Direct
15,572

 
8,138

 
39,344

 
33,289

Assumed (3)
(168
)
 
0

 
216

 
0

Ceded
32

 
0

 
27

 
0

Amortization of reinsurance income
0

 
3,576

 
(19,228
)
 
10,655

Net other income
15,436

 
11,714

 
20,359

 
43,944

Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
41,888

 
182,788

 
360,999

 
398,983

Assumed
33,662

 
31,541

 
99,080

 
93,155

Ceded
(33,469
)
 
(57,843
)
 
(203,591
)
 
(169,932
)
Net interest credited to policyholders’ account balances
42,081

 
156,486

 
256,488

 
322,206

Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
1,009,176

 
549,194

 
1,805,942

 
1,513,593

Assumed (4)
181,318

 
208,099

 
653,892

 
431,184

Ceded (5)
(1,135,998
)
 
(642,107
)
 
(2,777,218
)
 
(1,710,827
)
Net policyholders’ benefits (including change in reserves)
54,496

 
115,186

 
(317,384
)
 
233,950

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
383,846

 
(2,149,496
)
 
(2,378,582
)
 
18,471

Assumed
0

 
0

 
0

 
0

Ceded (6)
(393,514
)
 
2,146,512

 
3,284,527

 
(133,086
)
Realized investment gains (losses), net
(9,668
)
 
(2,984
)
 
905,945

 
(114,615
)
Net reinsurance expense allowances, net of capitalization and amortization
(109,108
)
 
(62,043
)
 
(682,124
)
 
(146,561
)

(1)
"Premiums assumed" includes $0.1 million and $0.3 million of unaffiliated activity for the three and nine months ended September 30, 2016, respectively.
(2)
"Policy charges and fee income ceded" includes $(4) million of unaffiliated activity for both the three and nine months ended September 30, 2016 and 2015.
(3)
"Other income assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended September 30, 2016 and 2015, respectively, and $0.2 million and $(0.1) million for the nine months ended September 30, 2016 and 2015, respectively.
(4)
"Policyholders' benefits (including change in reserves) assumed" includes $(0.2) million of unaffiliated activity for the three months ended September 30, 2016.
(5)
"Policyholders' benefits (including change in reserves) ceded" includes $(2) million and $(19) million of unaffiliated activity for the three months ended September 30, 2016 and 2015, respectively, and $4 million and $(15) million for the nine months ended September 30, 2016 and 2015, respectively.
(6)
“Realized investment gains (losses), net ceded” includes $(5) million and $12 million of unaffiliated activity for the three months ended September 30, 2016 and 2015, respectively, and $41 million and $12 million for the nine months ended September 30, 2016 and 2015, respectively.
Gross and Net Life Insurance in Force
The gross and net amounts of life insurance face amount in force as of September 30, 2016 and 2015 were as follows:
 
September 30, 2016
 
September 30, 2015
 
(in thousands)
Direct gross life insurance face amount in force
$
813,797,417

 
$
753,935,518

Assumed gross life insurance face amount in force
42,991,987

 
43,795,607

Reinsurance ceded
(792,883,439
)
 
(736,832,258
)
Net life insurance face amount in force
$
63,905,965

 
$
60,898,867