10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 ________________________

FORM 10-Q

________________________

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from              to             

Commission file number 033-37587        

_____________________________________ 

Pruco Life Insurance Company

(Exact name of Registrant as specified in its charter)

Arizona	22-1944557
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

213 Washington Street

Newark, New Jersey 07102

(973) 802-6000

(Address and Telephone Number of Registrant's Principal Executive Offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of the Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer", "accelerated filer", "smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	(Do not check if a smaller reporting company)
		Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ¨    No  x

As of May 10, 2018, 250,000 shares of the registrant’s Common Stock (par value $10) were outstanding. As of such date, The Prudential Insurance Company of America, a New Jersey corporation, owned all of the Registrant’s Common Stock.

Pruco Life Insurance Company meets the conditions set

forth in General Instruction (H) (1) (a) and (b) on Form 10-Q and

is therefore filing this Form 10-Q in the reduced disclosure format.

TABLE OF CONTENTS

		Page Number
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017	4
	Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2018 and 2017	5
	Unaudited Interim Consolidated Statements of Equity for the three months ended March 31, 2018 and 2017	6
	Unaudited Interim Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017	7
	Notes to Unaudited Interim Consolidated Financial Statements	8
	1.    Business and Basis of Presentation	8
	2.    Significant Accounting Policies and Pronouncements	9
	3.    Investments	14
	4.    Derivative Instruments	24
	5.    Fair Value of Assets and Liabilities	28
	6.    Income Taxes	41
	7.    Reinsurance	41
	8.    Equity	46
	9.    Related Party Transactions	49
	10.    Commitments and Contingent Liabilities	52
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
PART II—OTHER INFORMATION		63
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 6.	Exhibits	64
SIGNATURES		65

2

FORWARD LOOKING STATEMENTS

Certain of the statements included in this Quarterly Report on Form 10-Q, including but not limited to those in Management’s Discussion and Analysis of Financial Condition and Results of Operations, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Pruco Life Insurance Company and its subsidiaries. There can be no assurance that future developments affecting Pruco Life Insurance Company and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; (2) losses on insurance products due to mortality experience or policyholder behavior experience that differs significantly from our expectations when we price our products; (3) changes in interest rates and equity prices that may (a) adversely impact the profitability of our products, the value of separate accounts supporting these products or the value of assets we manage, (b) result in losses on derivatives we use to hedge risk or increase collateral posting requirements and (c) limit opportunities to invest at appropriate returns; (4) guarantees within certain of our products, in particular our variable annuities, which are market sensitive and may decrease our earnings or increase the volatility of our results of operations or financial position; (5) liquidity needs resulting from (a) derivative collateral market exposure, (b) asset/liability mismatches, (c) the lack of available funding in the financial markets or (d) unexpected cash demands due to severe mortality calamity or lapse events; (6) financial or customer losses, or regulatory and legal actions, due to inadequate or failed processes or systems, human error or misconduct, and external events, such as (a) disruption of our systems and data, (b) an information security breach, (c) a failure to protect the privacy of sensitive data or (d) reliance on third-parties, including to distribute our products; (7) changes in the regulatory landscape, including related to (a) regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (b) changes in tax laws, (c) the U.S. Department of Labor’s fiduciary rules and other fiduciary rule developments, (d) state insurance laws and developments regarding group-wide supervision, capital and reserves, and (e) privacy and cybersecurity regulation; (8) technological changes which may adversely impact companies in our investment portfolio or cause insurance experience to deviate from our assumptions; (9) ratings downgrades; (10) market conditions that may adversely affect the sales or persistency of our products; (11) competition; and (12) reputational damage. Pruco Life Insurance Company does not intend, and is under no obligation, to update any particular forward-looking statement included in this document. See “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2017 for discussion of certain risks relating to our business and investment in our securities.

3

PART I—FINANCIAL INFORMATION

ITEM 1. Financial Statements

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Financial Position

March 31, 2018 and December 31, 2017 (in thousands, except share amounts)

	March 31, 2018		December 31, 2017
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2018 – $5,107,015; 2017 – $4,941,944)	$	5,258,693	$	5,223,302
Fixed maturities, trading, at fair value (amortized cost: 2018 – $38,279; 2017 – $38,279)(1)	39,650		38,793
Equity securities, at fair value (cost: 2018 – $37,689; 2017 – $32,694)(1)	44,419		40,610
Policy loans	1,169,847		1,161,101
Short-term investments	1,194		1,339
Commercial mortgage and other loans	1,137,366		1,083,419
Other invested assets (includes $62,117 and $726 measured at fair value at March 31, 2018 and December 31, 2017, respectively)(1)	304,417		263,074
Total investments	7,955,586		7,811,638
Cash and cash equivalents	81,186		212,569
Deferred policy acquisition costs	1,432,029		1,376,211
Accrued investment income	83,878		82,341
Reinsurance recoverables	31,696,534		32,555,500
Receivables from parent and affiliates	280,118		300,116
Other assets	433,592		465,467
Separate account assets	127,433,522		129,655,734
TOTAL ASSETS	$	169,396,445	$	172,459,576
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances	$	20,535,072	$	20,036,134
Future policy benefits	17,431,953		18,593,130
Cash collateral for loaned securities	13,576		33,169
Income taxes	786		32,440
Short-term debt to affiliates	80		0
Payables to parent and affiliates	240,129		228,210
Other liabilities	1,013,952		1,060,123
Separate account liabilities	127,433,522		129,655,734
TOTAL LIABILITIES	166,669,070		169,638,940
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10)
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding)	2,500		2,500
Additional paid-in capital	1,146,592		1,141,092
Retained earnings	1,499,351		1,511,698
Accumulated other comprehensive income	78,932		165,346
TOTAL EQUITY	2,727,375		2,820,636
TOTAL LIABILITIES AND EQUITY	$	169,396,445	$	172,459,576

(1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details.

See Notes to Unaudited Interim Consolidated Financial Statements

4

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months EndedMarch 31, 2018 and 2017 (in thousands)

	Three Months Ended March 31,
	2018			2017
REVENUES
Premiums	$	7,915		$	5,757
Policy charges and fee income	125,896			128,002
Net investment income	77,915			89,615
Asset administration fees	3,473			4,187
Other income	19,296			15,977
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(594		)	(4,412		)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income	0			8
Other realized investment gains (losses), net	(48,448		)	(28,175		)
Total realized investment gains (losses), net	(49,042		)	(32,579		)
TOTAL REVENUES	185,453			210,959
BENEFITS AND EXPENSES
Policyholders’ benefits	48,955			71,487
Interest credited to policyholders’ account balances	40,798			44,760
Amortization of deferred policy acquisition costs	26,604			16,272
General, administrative and other expenses	60,790			56,819
TOTAL BENEFITS AND EXPENSES	177,147			189,338
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306			21,621
Income tax expense (benefit)	(2,448		)	(18,451		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754			40,072
Equity in earnings of operating joint venture, net of taxes	(638		)	0
NET INCOME (LOSS)	$	10,116		$	40,072
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(923		)	23
Net unrealized investment gains (losses)	(145,051		)	27,203
Total	(145,974		)	27,226
Less: Income tax expense (benefit) related to other comprehensive income (loss)	(30,700		)	9,529
Other comprehensive income (loss), net of tax	(115,274		)	17,697
COMPREHENSIVE INCOME (LOSS)	$	(105,158	)	$	57,769

See Notes to Unaudited Interim Consolidated Financial Statements

5

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Equity

Three Months EndedMarch 31, 2018 and 2017 (in thousands)

	Common   Stock		Additional   Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive   Income (Loss)			Total Equity
Balance, December 31, 2017	$	2,500	$	1,141,092	$	1,511,698		$	165,346		$	2,820,636
Cumulative effect of adoption of ASU 2016-01					7,936			(1,539		)	6,397
Cumulative effect of adoption of ASU 2018-02					(30,399		)	30,399			0
Contributed capital			5,500								5,500
Comprehensive income (loss):
Net income (loss)					10,116						10,116
Other comprehensive income (loss), net of tax								(115,274		)	(115,274		)
Total comprehensive income (loss)											(105,158		)
Balance, March 31, 2018	$	2,500	$	1,146,592	$	1,499,351		$	78,932		$	2,727,375

	Common   Stock		Additional   Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive   Income (Loss)		Total Equity
Balance, December 31, 2016	$	2,500	$	986,062	$	1,437,266	$	70,975	$	2,496,803
Contributed capital			5,000						5,000
Comprehensive income (loss):
Net income (loss)					40,072				40,072
Other comprehensive income (loss), net of tax							17,697		17,697
Total comprehensive income (loss)									57,769
Balance, March 31, 2017	$	2,500	$	991,062	$	1,477,338	$	88,672	$	2,559,572

See Notes to Unaudited Interim Consolidated Financial Statements

6

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Cash Flows

Three Months EndedMarch 31, 2018 and 2017 (in thousands)

	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	10,116		$	40,072
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income	(24,173		)	(5,861		)
Interest credited to policyholders’ account balances	40,798			44,760
Realized investment (gains) losses, net	49,042			32,579
Amortization and other non-cash items	(9,397		)	(13,524		)
Change in:
Future policy benefits	511,380			636,570
Reinsurance recoverables	(430,215		)	(573,224		)
Accrued investment income	(1,537		)	(1,375		)
Net payables to/receivables from parent and affiliates	29,615			51,947
Deferred policy acquisition costs	(45,184		)	(42,083		)
Income taxes	(2,651		)	(18,545		)
Derivatives, net	(41,944		)	4,288
Other, net	(93,619		)	(101,520		)
Cash flows from (used in) operating activities	(7,769		)	54,084
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	69,410			364,657
Equity securities(1)	6			896
Policy loans	39,271			37,016
Ceded policy loans	(5,192		)	(2,980		)
Short-term investments	3,513			26,651
Commercial mortgage and other loans	16,369			8,775
Other invested assets(1)	2,502			4,089
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(188,613		)	(454,404		)
Equity securities(1)	(5,000		)	(5,386		)
Policy loans	(35,689		)	(26,120		)
Ceded policy loans	4,957			3,272
Short-term investments	(3,400		)	(16,979		)
Commercial mortgage and other loans	(69,717		)	(76,114		)
Other invested assets(1)	(30,358		)	(8,028		)
Notes receivable from parent and affiliates, net	3,853			4,718
Derivatives, net	(776		)	151
Other, net	(1,465		)	(606		)
Cash flows from (used in) investing activities	(200,329		)	(140,392		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	1,119,440			1,055,826
Ceded policyholders’ account deposits	(757,139		)	(734,147		)
Policyholders’ account withdrawals	(694,382		)	(656,190		)
Ceded policyholders’ account withdrawals	437,445			375,116
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities	(19,593		)	(44,961		)
Net change in financing arrangements (maturities 90 days or less)	80			108,100
Drafts outstanding	(9,136		)	19,797
Cash flows from (used in) financing activities	76,715			123,541
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(131,383		)	37,233
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	212,569			96,157
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	81,186		$	133,390

(1) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

Significant Non-Cash Transactions

There were no significant non-cash transactions for the three months ended March 31, 2018 and 2017.

See Notes to Unaudited Interim Consolidated Financial Statements

7

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements

1.    BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors.

Pruco Life has two subsidiaries, including one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and one indirect subsidiary formed in 2009 for the purpose of holding certain commercial loan and other investments. Pruco Life and its subsidiaries are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only.

Variable Annuities Recapture

Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to an affiliated reinsurance company, Pruco Reinsurance, Ltd. ("Pruco Re"). Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, to Prudential Annuities Life Assurance Corporation ("PALAC"), excluding the PLNJ business, which was reinsured to Prudential Insurance, in each case under a coinsurance and modified coinsurance agreement. These reinsurance agreements cover new and in force business and exclude business reinsured externally. The product risks related to the reinsured business are being managed in PALAC and Prudential Insurance, as applicable. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within PALAC and Prudential Insurance, as applicable. These series of transactions are collectively referred to as the "Variable Annuities Recapture".

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

8

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

2.    SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

Adoption of ASU 2016-01

Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income”.

The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

(1) Changes to the presentation within the Consolidated Statements of Financial Position

Because of the fundamental accounting changes as described in section "(3) Changes to Accounting Policies" below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification.

	December 31, 2017
	As previously reported		Reclassifications									As currently reported
Consolidated Statements of Financial Position Line Items			(1)			(2)			(3)
	(in thousands)
Fixed maturities, available for sale, at fair value	$	5,223,302										$	5,223,302
*Fixed maturities, trading, at fair value	0					38,793						38,793
Equity securities, available for sale, at fair value	23,122		(23,122		)							0
*Equity securities, at fair value	0		23,122			17,488						40,610
Trading account assets, at fair value	56,281					(56,281		)				0
Policy loans	1,161,101											1,161,101
Short-term investments	1,339											1,339
Commercial mortgage and other loans	1,083,419											1,083,419
Other long-term investments	263,074								(263,074		)	0
*Other invested assets	0								263,074			263,074
Total investments	$	7,811,638	$	0		$	0		$	0		$	7,811,638

9

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

* - New line item effective January 1, 2018.

Strikethrough - Eliminated line item effective January 1, 2018.

(1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale.

(2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item.

(3) Retitled “Other long-term investments” to “Other invested assets”.

(2) Cumulative-effect Adjustment Upon Adoption

The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018.

Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement
of Financial Position upon Adoption on January 1, 2018
(in thousands)
	Increase / (Decrease)
Other invested assets	$	8,097
Total assets	$	8,097
Income taxes	$	1,700
Total liabilities	1,700
Accumulated other comprehensive income (loss)	(1,539		)
Retained earnings	7,936
Total equity	6,397
Total liabilities and equity	$	8,097

(3) Changes to Accounting Policies

This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above.

ASSETS

Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Trading account assets, at fair value”. Realized and unrealized gains and losses on these investments are reported in “Other income”, and interest and dividend income from these investments is reported in “Net investment income”.

Equity securities, at fairvalue is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value”. As a result of the adoption of the standard, equity securities previously reported in “Trading account assets, at fair value” were reclassified to “Equity securities, at fair value”. The retitled financial statement line is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity investments reported in the financial statement line formerly titled “Equity securities, available for sale, at fair value” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings.

10

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Other invested assets is the new title of the financial statement line formerly titled “Other long-term investments”. Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets”. The retitled financial statement line consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs")(other than operating joint ventures) and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”.

REVENUES AND BENEFITS AND EXPENSES

Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading”, “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value.

Other ASU adopted during the three months ended March 31, 2018.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard.	January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have an impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)	This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows.	January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

11

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash	In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows.	January 1, 2018 using the retrospective method (with early adoption permitted).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017.	January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized.	The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $30.4 million.

12

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

ASU issued but not yet adopted as of March 31, 2018

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

13

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

3.    INVESTMENTS

Fixed Maturity Securities

The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	92,948	$	2,953	$	10	$	95,891	$	0
Obligations of U.S. states and their political subdivisions	597,016		21,248		492		617,772		0
Foreign government bonds	177,188		3,427		3,895		176,720		0
Public utilities	688,996		42,907		4,398		727,505		0
Redeemable preferred stock	4,074		773		0		4,847		0
All other U.S. public corporate securities	1,282,335		62,496		14,836		1,329,995		(215		)
All other U.S. private corporate securities	694,522		11,121		5,904		699,739		0
All other foreign public corporate securities	227,906		7,573		3,473		232,006		0
All other foreign private corporate securities	780,001		43,614		10,350		813,265		0
Asset-backed securities(1)	179,037		2,684		111		181,610		(132		)
Commercial mortgage-backed securities	316,110		2,339		7,097		311,352		0
Residential mortgage-backed securities(2)	66,882		2,020		911		67,991		(203		)
Total fixed maturities, available-for-sale	$	5,107,015	$	203,155	$	51,477	$	5,258,693	$	(550	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $1.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

14

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	95,851	$	3,964	$	0	$	99,815	$	0
Obligations of U.S. states and their political subdivisions	597,254		38,204		0		635,458		0
Foreign government bonds	128,058		7,536		496		135,098		0
Public utilities	677,702		61,588		1,058		738,232		0
Redeemable preferred stock	4,053		957		0		5,010		0
All other U.S. public corporate securities	1,254,140		105,524		2,580		1,357,084		(215		)
All other U.S. private corporate securities	710,424		18,306		1,644		727,086		0
All other foreign public corporate securities	168,399		12,522		732		180,189		0
All other foreign private corporate securities	737,037		41,405		9,598		768,844		0
Asset-backed securities(1)	179,935		2,519		26		182,428		(138		)
Commercial mortgage-backed securities	320,223		5,148		2,539		322,832		0
Residential mortgage-backed securities(2)	68,868		2,527		169		71,226		(220		)
Total fixed maturities, available-for-sale	$	4,941,944	$	300,200	$	18,842	$	5,223,302	$	(573	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $2.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

15

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	624	$	10	$	0	$	0	$	624	$	10
Obligations of U.S. states and their political subdivisions	60,950		492		0		0		60,950		492
Foreign government bonds	108,388		3,083		11,398		812		119,786		3,895
Public utilities	135,788		3,081		17,852		1,317		153,640		4,398
All other U.S. public corporate securities	382,978		9,187		90,933		5,649		473,911		14,836
All other U.S. private corporate securities	332,751		4,299		31,181		1,605		363,932		5,904
All other foreign public corporate securities	101,487		2,748		6,782		725		108,269		3,473
All other foreign private corporate securities	151,956		2,372		64,751		7,978		216,707		10,350
Asset-backed securities	13,376		107		308		4		13,684		111
Commercial mortgage-backed securities	101,300		2,114		90,648		4,983		191,948		7,097
Residential mortgage-backed securities	29,802		643		5,811		268		35,613		911
Total fixed maturities, available-for-sale	$	1,419,400	$	28,136	$	319,664	$	23,341	$	1,739,064	$	51,477

	December 31, 2017
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		0		0		0		0
Foreign government bonds	16,522		210		11,959		286		28,481		496
Public utilities	26,466		380		27,354		678		53,820		1,058
All other U.S. public corporate securities	36,100		304		102,490		2,276		138,590		2,580
All other U.S. private corporate securities	79,495		781		36,642		863		116,137		1,644
All other foreign public corporate securities	27,078		190		8,390		542		35,468		732
All other foreign private corporate securities	48,109		472		133,055		9,126		181,164		9,598
Asset-backed securities	6,351		22		317		4		6,668		26
Commercial mortgage-backed securities	49,823		285		93,403		2,254		143,226		2,539
Residential mortgage-backed securities	8,030		28		6,160		141		14,190		169
Total fixed maturities, available-for-sale	$	297,974	$	2,672	$	419,770	$	16,170	$	717,744	$	18,842

16

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

As of March 31, 2018 and December 31, 2017, the gross unrealized losses on fixed maturity securities were composed of $44.7 million and $13.9 million, respectively, related to "1" highest quality or "2" high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $6.8 million and $4.9 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2018, the $23.3 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage-backed securities and in the Company's corporate securities within the energy, finance and consumer non-cyclical sectors. As of December 31, 2017, the $16.2 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage backed securities and in the Company's corporate securities within the energy and finance sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either March 31, 2018 or December 31, 2017. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of March 31, 2018, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2018
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	188,789	$	191,560
Due after one year through five years	738,939		747,181
Due after five years through ten years	1,035,613		1,064,058
Due after ten years	2,581,645		2,694,941
Asset-backed securities	179,037		181,610
Commercial mortgage-backed securities	316,110		311,352
Residential mortgage-backed securities	66,882		67,991
Total fixed maturities, available-for-sale	$	5,107,015	$	5,258,693

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	16,852		$	287,708
Proceeds from maturities/prepayments	54,310			114,846
Gross investment gains from sales and maturities	144			3,197
Gross investment losses from sales and maturities	(359		)	(2,823		)
OTTI recognized in earnings(2)	(594		)	(4,404		)

(1) Includes $1.8 million and $37.9 million of non-cash related proceeds due to the timing of trade settlements for the three months endedMarch 31, 2018 and 2017, respectively.

(2) Excludes the portion of OTTI amounts remaining in “Other comprehensive income (loss)” ("OCI"), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

17

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	4,374		$	5,520
New credit loss impairments	0			0
Additional credit loss impairments on securities previously impaired	0			0
Increases due to the passage of time on previously recorded credit losses	37			27
Reductions for securities which matured, paid down, prepaid or were sold during the period	(42		)	(118		)
Reductions for securities impaired to fair value during the period(1)	0			0
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(25		)	(72		)
Assets transferred to parent and affiliates	0			0
Balance, end of period	$	4,344		$	5,357

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(1.2) million and $1.4 million during the three months ended March 31, 2018 and 2017, respectively.

Commercial Mortgage and Other Loans

The following table sets forth the composition of "Commercial mortgage and other loans," as of the dates indicated:

	March 31, 2018					December 31, 2017
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	358,405		31.5	%	$	356,694		32.9	%
Hospitality	16,419			1.4		16,529			1.5
Industrial	230,050			20.2		180,619			16.7
Office	169,762			14.9		159,646			14.7
Other	93,195			8.2		99,119			9.1
Retail	204,271			17.9		205,367			18.9
Total commercial mortgage loans	1,072,102			94.1		1,017,974			93.8
Agricultural property loans	66,927			5.9		67,239			6.2
Total commercial mortgage and agricultural property loans by property type	1,139,029			100.0	%	1,085,213			100.0	%
Valuation allowance	(1,663		)			(1,794		)
Total commercial mortgage and other loans	$	1,137,366				$	1,083,419

As of March 31, 2018, the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California (23%), Texas (14%) and New York (6%)) and included loans secured by properties in Europe (5%), Australia (4%) and Mexico (2%).

18

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans			Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,728		$	66	$	1,794
Addition to (release of) allowance for losses	(131		)	0		(131		)
Charge-offs, net of recoveries	0			0		0
Total ending balance	$	1,597		$	66	$	1,663

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,513	$	45	$	1,558
Addition to (release of) allowance for losses	215		21		236
Charge-offs, net of recoveries	0		0		0
Total ending balance	$	1,728	$	66	$	1,794

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,597		66		1,663
Total ending balance(1)	$	1,597	$	66	$	1,663
Recorded investment(2):
Individually evaluated for impairment	$	0	$	842	$	842
Collectively evaluated for impairment	1,072,102		66,085		1,138,187
Total ending balance(1)	$	1,072,102	$	66,927	$	1,139,029

(1) As of March 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

19

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,728		66		1,794
Total ending balance(1)	$	1,728	$	66	$	1,794
Recorded investment(2):
Individually evaluated for impairment	$	2,316	$	1,153	$	3,469
Collectively evaluated for impairment	1,015,658		66,086		1,081,744
Total ending balance(1)	$	1,017,974	$	67,239	$	1,085,213

(1) As of December 31, 2017, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	593,048	$	22,787	$	692	$	616,527
60%-69.99%	347,468		21,689		1,993		371,150
70%-79.99%	123,607		27,513		0		151,120
80% or greater	0		232		0		232
Total loans	$	1,064,123	$	72,221	$	2,685	$	1,139,029

	December 31, 2017
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	606,846	$	21,709	$	705	$	629,260
60%-69.99%	333,185		9,594		2,010		344,789
70%-79.99%	84,492		26,439		0		110,931
80% or greater	0		0		233		233
Total loans	$	1,024,523	$	57,742	$	2,948	$	1,085,213

20

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables set forth an aging of past due commercial mortgage and other loans, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,072,102	$	0	$	0	$	0	$	1,072,102	$	0
Agricultural property loans	66,927		0		0		0		66,927		0
Total	$	1,139,029	$	0	$	0	$	0	$	1,139,029	$	0

(1) As of March 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,017,974	$	0	$	0	$	0	$	1,017,974	$	0
Agricultural property loans	67,239		0		0		0		67,239		0
Total	$	1,085,213	$	0	$	0	$	0	$	1,085,213	$	0

(1) As of December 31, 2017, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

For the three months ended March 31, 2018 and 2017, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold.

The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. For the three months ended March 31, 2018 and 2017, there were no new troubled debt restructurings related to commercial mortgage and other loans with payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the twelve months preceding. As of both March 31, 2018 and December 31, 2017, the Company had no significant commitments to provide additional funds to borrowers that had been involved in a troubled debt restructuring. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

21

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2018		December 31, 2017
	(in thousands)
Company's investment in separate accounts	$	38,918	$	37,404
LPs/LLCs:
Equity method:
Private equity	138,775		123,957
Hedge funds	53,480		53,066
Real estate-related	10,679		7,040
Subtotal equity method	202,934		184,063
Fair value:
Private equity	54,836		35,686
Hedge funds	778		726
Real estate-related	6,503		5,186
Subtotal fair value(1)	62,117		41,598
Total LPs/LLCs	265,051		225,661
Derivative instruments	448		9
Total other invested assets(2)	$	304,417	$	263,074

(1) As of December 31, 2017, $40.9 million was accounted for under the cost method.

(2) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2.

Net Investment Income

The following table sets forth "Net investment income" by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale	$	53,260		$	59,067
Fixed maturities, trading	266			179
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,405			13,116
Policy loans	15,904			15,628
Short-term investments and cash equivalents	323			187
Other invested assets	115			6,379
Gross investment income	82,494			94,777
Less: investment expenses	(4,579		)	(5,162		)
Net investment income(1)	$	77,915		$	89,615

(1) Prior period amounts have been reclassified to conform to current period presentation.

22

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Realized Investment Gains (Losses), Net

The following table sets forth "Realized investment gains (losses), net," by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities(1)	$	(809	)	$	(4,030	)
Equity securities(2)	0			(114		)
Commercial mortgage and other loans	131			(139		)
LPs/LLCs	847			(73		)
Derivatives(3)	(49,193		)	(28,217		)
Short-term investments and cash equivalents	(18		)	(6		)
Realized investment gains (losses), net	$	(49,042	)	$	(32,579	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

(2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within "Other income".

(3) Includes the hedged items offset in qualifying fair value hedge accounting relationships.

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2018			December 31, 2017
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	697		$	1,609
Fixed maturity securities, available-for-sale—all other	150,981			279,749
Equity securities, available-for-sale(1)	0			2,368
Derivatives designated as cash flow hedges(2)	(40,540		)	(17,678		)
Affiliated notes	1,844			4,782
Other investments	2,738			3,588
Net unrealized gains (losses) on investments	$	115,720		$	274,418

(1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within "Other income."

(2) For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of March 31, 2018 and December 31, 2017, the Company had no repurchase agreements.

The following table sets forth the composition of "Cash collateral for loaned securities," which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

23

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	March 31, 2018						December 31, 2017
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	4,887	$	0	$	4,887	$	0	$	22,460	$	22,460
Foreign government bonds	3,003		0		3,003		6,157		0		6,157
U.S. public corporate securities	5,237		0		5,237		4,074		0		4,074
U.S. private corporate securities	0		0		0		0		0		0
Foreign public corporate securities	449		0		449		478		0		478
Total cash collateral for loaned securities(1)	$	13,576	$	0	$	13,576	$	10,709	$	22,460	$	33,169

(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

4.    DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate contracts: futures, swaps, options, swaptions, caps and floors

•Equity contracts: futures, options and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

•Other contracts: embedded derivatives

For detailed information on these contracts and the related strategies, see Note 10 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Primary Risks Managed by Derivatives

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risk, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and non-performance risk ("NPR").

24

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	March 31, 2018							December 31, 2017
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Total Qualifying Hedges	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,926	$	16,660	$	(2,888	)	$	246,925	$	23,032	$	0
Foreign Currency
Foreign Currency Forwards	19,565		10		(177		)	16,320		0		(376		)
Credit
Credit Default Swaps	756		0		(37		)	1,594		0		(96		)
Currency/Interest Rate
Foreign Currency Swaps	81,493		2,722		(7,205		)	95,145		4,347		(5,600		)
Equity
Equity Options	1,441,893		53,854		(15,143		)	1,277,102		69,472		(23,500		)
Total Non-Qualifying Hedges	$	1,790,633	$	73,246	$	(25,450	)	$	1,637,086	$	96,851	$	(29,572	)
Total Derivatives (1)	$	2,484,180	$	87,991	$	(91,132	)	$	2,286,991	$	115,094	$	(74,378	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $4,191 million and $5,453 million as of March 31, 2018 and December 31, 2017, respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables" or "Other liabilities," was a net asset of $4,198 million and $5,458 million as of March 31, 2018 and December 31, 2017, respectively. Of these reinsurance recoverables, the fair value related to the living benefits guarantee from PALAC and Prudential Insurance was a net asset of $4,214 million and $5,445 million and the fair value related to the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income ("HDI") v.3.0 from Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty, was a net liability of $16 million and a net asset of $13 million as of March 31, 2018 and December 31, 2017, respectively. See Note 7 for additional information on these reinsurance agreements.

The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $40 million and $47 million as of March 31, 2018 and December 31, 2017, respectively. There was no related reinsurance recoverables at each respective period.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

25

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	March 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	87,981	$	(87,981	)	$	0	$	0		$	0
Securities purchased under agreements to resell	28,500		0			28,500		(28,500		)	0
Total Assets	$	116,481	$	(87,981	)	$	28,500	$	(28,500	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0

	December 31, 2017
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	115,086	$	(115,086	)	$	0	$	0		$	0
Securities purchased under agreements to resell	148,000		0			148,000		(148,000		)	0
Total Assets	$	263,086	$	(115,086	)	$	148,000	$	(148,000	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Cash Flow Hedges

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships.

26

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2018
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,538	$	(664	)	$	(22,862	)
Total qualifying hedges	0			1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,851		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total non-qualifying hedges	(49,193		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

	Three Months Ended March 31, 2017
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,188	$	(2,421	)	$	(10,261	)
Total qualifying hedges	0			1,188		(2,421		)	(10,261		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	501			0		0			0
Currency	(128		)	0		0			0
Currency/Interest Rate	2,127			0		3			0
Credit	(31		)	0		0			0
Equity	5,921			0		0			0
Embedded Derivatives	(36,607		)	0		0			0
Total non-qualifying hedges	(28,217		)	0		3			0
Total	$	(28,217	)	$	1,188	$	(2,418	)	$	(10,261	)

(1) Amounts deferred in AOCI.

27

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

For the three months ended March 31, 2018 and 2017, the ineffective portion of derivatives accounted for using hedge accounting were de minimis to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2017	$	(17,678	)
Net deferred gains/(losses) on cash flow hedges from January 1 to March 31, 2018	(22,543		)
Amounts reclassified into current period earnings	(319		)
Balance, March 31, 2018	$	(40,540	)

The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2018 values, it is estimated that a pre-tax gain of $6 million will be reclassified from AOCI to earnings during the subsequent twelve months ending March 31,2019, offset by amounts pertaining to the hedged items.

As of March 31, 2018, the Company did not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 40 years.

Credit Derivatives

The company has no exposure from credit derivative positions where it has written credit protection as of March 31, 2018 and December 31, 2017.

The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $1 million and $2 million reported at fair value as a liability of $0.0 million and $0.1 million as of March 31, 2018 and December 31, 2017, respectively.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement as applicable; (ii) trading through a central clearing and OTC; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

5.    FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

28

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

29

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Assets and Liabilities by Hierarchy Level– The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	74,322	$	21,569	$	0		$	95,891
Obligations of U.S. states and their political subdivisions	0		617,772		0		0			617,772
Foreign government bonds	0		176,554		166		0			176,720
U.S. corporate public securities	0		1,748,392		677		0			1,749,069
U.S. corporate private securities	0		871,184		57,706		0			928,890
Foreign corporate public securities	0		234,224		0		0			234,224
Foreign corporate private securities	0		880,942		14,232		0			895,174
Asset-backed securities(2)	0		87,126		94,484		0			181,610
Commercial mortgage-backed securities	0		311,159		193		0			311,352
Residential mortgage-backed securities	0		67,795		196		0			67,991
Subtotal	0		5,069,470		189,223		0			5,258,693
Fixed maturities, trading	0		39,650		0		0			39,650
Equity securities	101		27,279		17,039		0			44,419
Short-term investments	0		0		1,194		0			1,194
Other invested assets(3)	0		87,981		10		(87,981		)	10
Reinsurance recoverables	0		0		4,214,114		0			4,214,114
Receivables from parent and affiliates	0		122,827		6,531		0			129,358
Subtotal excluding separate account assets	101		5,347,207		4,428,111		(87,981		)	9,687,438
Separate account assets(4)(5)	0		123,324,538		0		0			123,324,538
Total assets	$	101	$	128,671,745	$	4,428,111	$	(87,981	)	$	133,011,976
Future policy benefits(6)	$	0	$	0	$	4,191,373	$	0		$	4,191,373
Policyholders' account balances	0		0		39,516		0			39,516
Payables to parent and affiliates	0		91,132		0		(87,763		)	3,369
Other liabilities	0		0		15,955		0			15,955
Total liabilities	$	0	$	91,132	$	4,246,844	$	(87,763	)	$	4,250,213

30

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	As of December 31, 2017
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	80,611	$	19,204	$	0		$	99,815
Obligations of U.S. states and their political subdivisions	0		635,458		0		0			635,458
Foreign government bonds	0		134,924		174		0			135,098
U.S. corporate public securities	0		1,779,935		1,154		0			1,781,089
U.S. corporate private securities	0		901,080		60,158		0			961,238
Foreign corporate public securities	0		182,243		209		0			182,452
Foreign corporate private securities	0		837,766		13,900		0			851,666
Asset-backed securities(2)	0		71,400		111,028		0			182,428
Commercial mortgage-backed securities	0		322,832		0		0			322,832
Residential mortgage-backed securities	0		71,226		0		0			71,226
Subtotal	0		5,017,475		205,827		0			5,223,302
Fixed maturities, trading(7)	0		38,793		0		0			38,793
Equity securities(7)	94		22,991		17,525		0			40,610
Short-term investments	0		0		1,339		0			1,339
Cash equivalents	0		28,007		0		0			28,007
Other invested assets(3)(7)	0		115,094		0		(115,086		)	8
Reinsurance recoverables	0		0		5,457,649		0			5,457,649
Receivables from parent and affiliates	0		132,571		0		0			132,571
Subtotal excluding separate account assets	94		5,354,931		5,682,340		(115,086		)	10,922,279
Separate account assets	0		125,543,035		0		0			125,543,035
Total assets	$	94	$	130,897,966	$	5,682,340	$	(115,086	)	$	136,465,314
Future policy benefits(6)	$	0	$	0	$	5,452,583	$	0		$	5,452,583
Policyholders' account balances	0		0		46,651		0			46,651
Payables to parent and affiliates	0		74,378		0		(69,718		)	4,660
Other liabilities	0		0		0		0			0
Total liabilities	$	0	$	74,378	$	5,499,234	$	(69,718	)	$	5,503,894

(1) “Netting” amounts represent cash collateral of $0.2 million and $45.4 million as of March 31, 2018 and December 31, 2017, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2018 and December 31, 2017, the fair values of such investments were $62.1 million and $0.7 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate net asset value per share ("NAV") (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, for which fair value is measured at net asset value per share (or its equivalent). At March 31, 2018 and December 31, 2017, the fair values of such investments were $4,109 million and $4,113 million, respectively.

(6) As of March 31, 2018, the net embedded derivative liability position of $4,191 million includes $931 million of embedded derivatives in an asset position and $5,122 million of embedded derivatives in a liability position. As of December 31, 2017, the net embedded derivative liability position of $5,453 million includes $823 million of embedded derivatives in an asset position and $6,276 million of embedded derivatives in a liability position.

(7) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

31

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Transfers between Levels 1 and 2 – Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate account. The fair value of foreign common stock held in the Company's Separate account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During both the three months ended March 31, 2018 and 2017, there were no transfers between Level 1 and Level 2.

Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities– The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	37,491	Discounted cash flow	Discount rate	5.75	%	20	%	8.14	%	Decrease
			Liquidation	Liquidation value	13	%	13	%	13	%	Increase
Reinsurance recoverables	$	4,214,114	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	4,191,373	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.24	%	1.21	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	16	%	24	%			Increase

32

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	As of December 31, 2017
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	36,966	Discounted cash flow	Discount rate	5.06	%	22.23	%	7.33	%	Decrease
			Liquidation	Liquidation value	25	%	25	%	25	%	Increase
Reinsurance recoverables	$	5,457,649	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	5,452,583	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.10	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2018 and December 31, 2017, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs– In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

33

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Changes in Level 3 Assets and Liabilities– The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.  

	Three Months Ended March 31, 2018
	Fixed Maturities, Available-for-Sale
	U. S. Government		Foreign Government Bonds			Corporate Securities(1)			Structured Securities(2)
	(in thousands)
Fair Value, beginning of period	$	19,204	$	0		$	75,421		$	111,028
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			68			0
Asset administration fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		(8		)	817			105
Net investment income	0		0			51			26
Purchases	2,365		0			1,022			190
Sales	0		0			0			0
Issuances	0		0			0			0
Settlements	0		0			(4,570		)	(3,195		)
Transfers into Level 3(4)	0		0			0			13,513
Transfers out of Level 3(4)	0		0			(209		)	(26,794		)
Other(5)	0		174			15			0
Fair Value, end of period	$	21,569	$	166		$	72,615		$	94,873
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(26	)	$	0
Asset administration fees and other income	$	0	$	0		$	0		$	0

34

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2018
	Equity Securities			Short-term Investments			Other Invested Assets		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	17,525		$	1,339		$	0	$	5,457,649
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			(18		)	1		(1,462,992		)
Asset administration fees and other income	(486		)	0			0		0
Included in other comprehensive income (loss)	0			0			0		0
Net investment income	0			0			0		0
Purchases	0			3,400			0		219,457
Sales	0			0			0		0
Issuances	0			0			0		0
Settlements	0			(3,513		)	0		0
Transfers into Level 3(4)	0			0			9		0
Transfers out of Level 3(4)	0			0			0		0
Other(5)	0			(14		)	0		0
Fair Value, end of period	$	17,039		$	1,194		$	10	$	4,214,114
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	(18	)	$	2	$	(1,409,320	)
Asset administration fees and other income	$	(486	)	$	0		$	0	$	0

35

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2018
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	0		$	(5,452,583	)	$	(46,651	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			1,487,555			5,013			(24,780		)
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	(20		)	0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			8,825
Sales	0			0			0			0
Issuances	0			(226,345		)	0			0
Settlements	0			0			2,122			0
Transfers into Level 3(4)	6,551			0			0			0
Transfers out of Level 3(4)	0			0			0			0
Other	0			0			0			0
Fair Value, end of period	$	6,531		$	(4,191,373	)	$	(39,516	)	$	(15,955	)
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	1,433,872		$	5,013		$	(24,780	)
Asset administration fees and other income	$	0		$	0		$	0		$	0

36

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2017
	Fixed Maturities, Available-for-Sale
	U. S. Government		Corporate Securities(1)			Structured Securities(2)(3)
	(in thousands)
Fair Value, beginning of period	$	0	$	102,556		$	19,856
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		352			0
Asset administration fees and other income	0		0			0
Included in other comprehensive income (loss)	0		453			73
Net investment income	0		3			36
Purchases	25		5,958			4,000
Sales	0		(51,430		)	0
Issuances	0		0			0
Settlements	0		(5,518		)	(129		)
Transfers into Level 3(4)	0		1,814			64,507
Transfers out of Level 3(4)	0		(1,802		)	0
Other(5)	3,570		(3,570		)	0
Fair Value, end of period	$	3,595	$	48,816		$	88,343
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(62	)	$	0
Asset administration fees and other income	$	0	$	0		$	0

37

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2017
	Equity Securities(3)		Other Invested Assets(3)		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	15,845	$	0	$	5,474,263
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0		11		(610,479		)
Asset administration fees and other income	1,420		0		0
Included in other comprehensive income (loss)	7		0		0
Net investment income	0		0		0
Purchases	0		0		216,595
Sales	0		0		0
Issuances	0		0		0
Settlements	0		0		0
Transfers into Level 3(4)	0		8		0
Transfers out of Level 3(4)	0		0		0
Other	0		0		0
Fair Value, end of period	$	17,272	$	19	$	5,080,379
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	(574,024	)
Asset administration fees and other income	$	1,420	$	0	$	0

38

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2017
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	6,493		$	(5,041,007	)	$	(20,337	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			623,193			(6,007		)	0
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			0
Sales	0			0			0			0
Issuances	0			(214,741		)	0			0
Settlements	0			0			1,477			0
Transfers into Level 3(4)	0			0			0			0
Transfers out of Level 3(4)	(6,493		)	0			0			0
Other	0			0			0			0
Fair Value, end of period	$	0		$	(4,632,555	)	$	(24,867	)	$	0
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	586,992		$	(6,007	)	$	0
Asset administration fees and other income	$	0		$	0		$	0		$	0

(1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation.

(2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation.

(3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

(4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter.

(5) Other, primarily represents reclassifications of certain assets and liabilities between reporting categories.

(6) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(7) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

39

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2018
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,150,210	$	1,150,210	$	1,137,366
Policy loans	0		0		1,169,847		1,169,847		1,169,847
Cash and cash equivalents	52,686		28,500		0		81,186		81,186
Accrued investment income	0		83,878		0		83,878		83,878
Receivables from parent and affiliates	0		150,760		0		150,760		150,760
Other assets	0		43,638		0		43,638		43,638
Total assets	$	52,686	$	306,776	$	2,320,057	$	2,679,519	$	2,666,675
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,198,114	$	275,384	$	1,473,498	$	1,480,611
Cash collateral for loaned securities	0		13,576		0		13,576		13,576
Short-term debt to affiliates	0		80		0		80		80
Payables to parent and affiliates	0		236,760		0		236,760		236,760
Other liabilities	0		353,291		0		353,291		353,291
Total liabilities	$	0	$	1,801,821	$	275,384	$	2,077,205	$	2,084,318

	December 31, 2017(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,111,625	$	1,111,625	$	1,083,419
Policy loans	0		0		1,161,101		1,161,101		1,161,101
Cash and cash equivalents	36,562		148,000		0		184,562		184,562
Accrued investment income	0		82,341		0		82,341		82,341
Receivables from parent and affiliates	0		167,545		0		167,545		167,545
Other assets	0		50,407		0		50,407		50,407
Total assets	$	36,562	$	448,293	$	2,272,726	$	2,757,581	$	2,729,375
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,178,583	$	276,435	$	1,455,018	$	1,458,599
Cash collateral for loaned securities	0		33,169		0		33,169		33,169
Payables to parent and affiliates	0		223,550		0		223,550		223,550
Other liabilities	0		362,592		0		362,592		362,592
Total liabilities	$	0	$	1,797,894	$	276,435	$	2,074,329	$	2,077,910

40

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) The information presented as of December 31, 2017, excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $49 million and $41 million, respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of March 31, 2018, these assets are excluded from this table but are reported in the fair value recurring measurement table.

(2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

6.    INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Total income tax expense” divided by projected “Income from operations before income taxes”. 

The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $2.4 million, or (29.5)% of income from operations before income taxes in the first three months of 2018, compared to a benefit of $18.5 million, or (85.3)% of income from operations before income taxes in the first three months of 2017. The Company’s current effective tax rate differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income and tax credits. The Company's prior effective tax rate differed from the U.S. statutory rate of 35% primarily due to non-taxable investment income, tax credits, and domestic production activities deduction. The Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017") modified the methodology for determining the dividend received deduction and will likely reduce the tax benefit of non-taxable investment income in periods starting after December 31, 2017.

On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $17.6 million tax benefit in “Total income tax expense (benefit)” in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, the Company recorded the effects of the Tax Act of 2017 as reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. The Company has not fully completed its accounting for the tax effects of the Tax Act of 2017. As the Company completes the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interprets any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, the Company may make adjustments to these provisional amounts. These adjustments may materially impact the Company’s provision for income taxes in the period in which the adjustments are made. During the first quarter of 2018, the Company did not recognize additional refinements of our provisional estimates.

The cumulative financial statement impact related to the Tax Act of 2017 as of March 31, 2018 was $17.6 million tax benefit, unchanged from the balance as of December 31, 2017.

7.    REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re"), Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties, and participated in reinsurance with its affiliate Pruco Re through March 31, 2016 and its affiliate Universal Prudential Arizona Reinsurance Company ("UPARC") through June 30, 2017. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, facilitate the Company's capital market hedging program, and align accounting methodology for the assets and liabilities of living benefit guarantees contained in annuities contracts. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

41

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Reserves related to reinsured long duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for universal life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Through June 30, 2017, the Company had an agreement with UPARC to reinsure a portion of the no-lapse guarantee provision on certain universal life products. See below for additional information on the change effective July 1, 2017 related to the recapture of the no-lapse guarantee risks that were previously reinsured to UPARC. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. For additional information related to the accounting for embedded derivatives, see Note 10 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Reinsurance recoverables	$	31,696,534		$	32,555,500
Policy loans	(125,587		)	(124,843		)
Deferred policy acquisition costs	(6,968,267		)	(6,832,729		)
Deferred sales inducements	(616,795		)	(638,065		)
Other assets(1)	193,113			205,430
Policyholders’ account balances	5,004,098			5,004,885
Future policy benefits	3,219,983			3,301,841
Other liabilities(2)	587,909			626,306

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2018 and December 31, 2017.

(2) “Other liabilities” includes $42 million and $73 million of unaffiliated activity as of March 31, 2018 and December 31, 2017, respectively.

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2018		December 31, 2017
	(in thousands)
PAR U	$	11,096,056	$	11,111,272
PALAC	7,343,099		8,388,988
PURC	3,700,711		3,577,962
PARCC	2,535,700		2,546,673
GUL Re	1,845,549		1,772,950
PAR Term	1,583,047		1,559,618
Prudential of Taiwan	1,451,312		1,406,686
Term Re	1,053,052		966,509
Prudential Insurance	1,039,039		1,152,241
DART	36,658		0
Unaffiliated	12,311		72,601
Total reinsurance recoverables	$	31,696,534	$	32,555,500

42

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2018			2017
	(in thousands)
Premiums:
Direct		$	441,955		$	417,993
Assumed(1)		60			66
Ceded		(434,100		)	(412,302		)
Net premiums		7,915			5,757
Policy charges and fee income:
Direct		846,723			781,561
Assumed		121,709			116,339
Ceded(2)		(842,536		)	(769,898		)
Net policy charges and fee income		125,896			128,002
Net investment income:
Direct		79,149			90,401
Assumed		373			360
Ceded		(1,607		)	(1,146		)
Net investment income		77,915			89,615
Asset administration fees:
Direct		87,033			80,999
Assumed		0			0
Ceded		(83,560		)	(76,812		)
Net asset administration fees		3,473			4,187
Other income:
Direct		17,253			15,438
Assumed(3)		(90		)	551
Ceded		(52		)	(12		)
Amortization of reinsurance income		2,185			0
Net other income		19,296			15,977
Realized investment gains (losses), net:
Direct		1,474,762			622,126
Assumed		0			0
Ceded(4)		(1,523,804		)	(654,705		)
Realized investment gains (losses), net		(49,042		)	(32,579		)
Policyholders’ benefits (including change in reserves):
Direct		654,638			685,495
Assumed(5)		112,802			129,137
Ceded(6)		(718,485		)	(743,145		)
Net policyholders’ benefits (including change in reserves)		48,955			71,487
Interest credited to policyholders’ account balances:
Direct		124,734			98,917
Assumed		36,517			33,934
Ceded		(120,453		)	(88,091		)
Net interest credited to policyholders’ account balances		40,798			44,760
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(433,912		)	(362,236		)

43

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months endedMarch 31, 2018 and 2017.

(2) "Policy charges and fee income ceded" includes $(2) million and $(0.7) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(3) "Other income assumed" includes $(0.1) million and $0.6 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(4) “Realized investment gains (losses), net ceded” includes $(38) million and $(8) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(5) "Policyholders' benefits (including change in reserves) assumed" includes $(0.1) million and $0.4 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(6) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million and $3 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

The gross and net amounts of life insurance face amount in force as of March 31, 2018 and 2017 were as follows:

	2018			2017
	(in thousands)
Direct gross life insurance face amount in force	$	893,787,108		$	840,190,324
Assumed gross life insurance face amount in force	41,584,568			42,499,716
Reinsurance ceded	(864,942,222		)	(817,213,475		)
Net life insurance face amount in force	$	70,429,454		$	65,476,565

Information regarding significant affiliated reinsurance agreements is described below.

PAR U

Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011.

Effective July 1, 2011, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving.

On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.

PALAC

Effective April 1, 2016, the Company entered into a reinsurance agreement with PALAC, to reinsure its variable annuity base contracts, along with the living benefit guarantees, excluding business reinsured externally and the PLNJ business, which was reinsured to Prudential Insurance. See Note 1 for additional information related to the Variable Annuities Recapture.

PURC

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

PARCC

The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC.

44

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

GUL Re

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017, excluding those policies that are subject to principles-based reserving.

Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014.

PAR Term

The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term.

Prudential of Taiwan

On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwan branch, including its Taiwan insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life.

The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re. 

Prudential Insurance

The Company, has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. Effective July 1, 2017, the Company will reinsure a portion of the mortality risk directly to third-party reinsurers and retain all of the non-reinsured portion of the mortality risk.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In December 2017, Hartford Financial announced a definitive agreement to sell a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control.

The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. See Note 1 for additional information related to the Variable Annuities Recapture.

45

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018.

UPARC

Through June 30, 2017, Pruco Life reinsured Universal Protector policies having no-lapse guarantees with effective dates through December 31, 2013 with UPARC. UPARC reinsured an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies.

Effective July 1, 2017, Pruco Life recaptured the risks related to the no-lapse guarantees that were previously reinsured to UPARC and subsequently included these risks as part of the business ceded to GUL Re under the amended coinsurance agreement on that date. As part of the recapture, the Company received invested assets of $557 million as consideration from UPARC and unwound the associated reinsurance recoverable of $760 million. As a result, the Company recognized a loss of $203 million immediately.

Pruco Re

Through March 31, 2016, the Company, including its wholly-owned subsidiary PLNJ, entered into various automatic coinsurance agreements with Pruco Re to reinsure its living benefit guarantees sold on certain of its annuities. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture.

Information regarding significant third party reinsurance arrangements is described below.

Union Hamilton

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiaries, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier Retirement Variable Annuity, to Union Hamilton. During that time period, the Company ceded approximately $2.9 billion of new rider premiums to Union Hamilton under this agreement. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of March 31, 2018, $3.2 billion of HDI v.3.0 account values are reinsured to Union Hamilton.

8. EQUITY

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the three months endedMarch 31, 2018 and 2017, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	0		$	165,346
Change in OCI before reclassifications	(923		)	(145,519		)	(22		)	(146,464		)
Amounts reclassified from AOCI	0			490			0			490
Income tax benefit (expense)	194			30,501			5			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	0			(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			0			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,962		$	(17	)	$	78,932

46

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2016	$	(402	)	$	71,377		$	0	$	70,975
Change in OCI before reclassifications	23			23,059			0		23,082
Amounts reclassified from AOCI	0			4,144			0		4,144
Income tax benefit (expense)	(8		)	(9,521		)	0		(9,529		)
Balance, March 31, 2017	$	(387	)	$	89,059		$	0	$	88,672

(1) Includes cash flow hedges of $(41) million and $(18) million as of March 31, 2018 and December 31, 2017, respectively, and $31 million and $41 million as of March 31, 2017 and December 31, 2016, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	319		$	3,133
Net unrealized investment gains (losses) on available-for-sale securities(4)	(809		)	(7,277		)
Total net unrealized investment gains (losses)	(490		)	(4,144		)
Total reclassifications for the period	$	(490	)	$	(4,144	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits and policyholders’ account balances. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale, certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from "Other comprehensive income (loss)" those items that are included as part of “Net income” for a period that had been part of "Other comprehensive income (loss)" in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

47

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	1,609		$	(99	)	$	22		$	(682	)	$	850
Net investment gains (losses) on investments arising during the period	(776		)	0			0			163			(613		)
Reclassification adjustment for (gains) losses included in net income	(136		)	0			0			29			(107		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			6			0			(1		)	5
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			(13		)	3			(10		)
Balance, March 31, 2018	$	697		$	(93	)	$	9		$	(488	)	$	125

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(1)			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	272,809		$	1,832		$	(28,998	)	$	(80,913	)	$	164,730
Net investment gains (losses) on investments arising during the period	(156,044		)	0			0			32,818			(123,226		)
Reclassification adjustment for (gains) losses included in net income	626			0			0			(132		)	494
Reclassification adjustment for OTTI (gains) losses excluded from net income(2)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			(29,720		)	0			6,250			(23,470		)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			41,028			(8,629		)	32,399
Cumulative effect of adoption of ASU 2016-01	(2,368		)	0			0			829			(1,539		)
Cumulative effect of adoption of ASU 2018-02	0			0			0			30,449			30,449
Balance, March 31, 2018	$	115,023		$	(27,888	)	$	12,030		$	(19,328	)	$	79,837

48

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

9.    RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.2 million and $0.1 million for the three months ended March 31, 2018 and 2017, respectively. The expense charged to the Company for the deferred compensation program was $2 million and $3 million for the three months ended March 31, 2018 and 2017, respectively.

The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $6 million for both the three months ended March 31, 2018 and 2017.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $7 million for both the three months ended March 31, 2018 and 2017.

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $3 million for both the three months ended March 31, 2018 and 2017.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $175 million and $155 million for the three months ended March 31, 2018 and 2017, respectively.

The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity.  The Company’s share of corporate expenses was $18 million and $17 million for the three months ended March 31, 2018 and 2017, respectively.

Corporate Owned Life Insurance

The Company has sold five Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $3,739 million at March 31, 2018 and $3,688 million at December 31, 2017. Fees related to these COLI policies were $12 million for both the three months ended

49

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

March 31, 2018 and 2017. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million for both the three months ended March 31, 2018 and 2017. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $81 million and $79 million as of March 31, 2018 and December 31, 2017, respectively. "Net investment income" related to these ventures includes a gain of $0.1 million and $4 million for the three months ended March 31, 2018 and 2017, respectively.

Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $84 million and $77 million for the three months ended March 31, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $2 million and $3 million for the three months ended March 31, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2018 and December 31, 2017 were as follows:

	Maturity Dates			Interest Rates				March 31, 2018		December 31, 2017
								(in thousands)
U.S. Dollar floating rate notes			2028	3.13%	-	3.74	%	$	6,531	$	6,551
U.S. Dollar fixed rate notes	2022	-	2027	0.00%	-	14.85	%	122,828		126,020
Total long-term notes receivable - affiliated(1)								$	129,359	$	132,571

(1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above include those classified as loans, and carried at unpaid principal balance, net of any allowance for losses and those classified as available-for-sale securities and other trading account assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

50

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Accrued interest receivable related to these loans was $0.7 million and $1 million at March 31, 2018 and December 31, 2017, respectively, and is included in “Other assets”. Revenues related to these loans were $1 million for both the three months ended March 31, 2018 and 2017, and are included in “Other income”.

Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)		Realized Investment Gain/(Loss)
				(in thousands)
PALAC	January 2017	Purchase	Fixed Maturities & Short-Term Investments	$	29	$	29	$	0	$	0
Prudential Insurance	June 2017	Sale	Fixed Maturities & Short-Term Investments	$	16,965	$	16,515	$	293	$	0
Prudential Insurance	June 2017	Sale	Commercial Mortgages	$	43,198	$	42,301	$	584	$	0
UPARC	September 2017	Transfer In	Other Invested Assets	$	37,354	$	37,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Other Invested Assets	$	72,354	$	72,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	1,254,457	$	1,195,697	$	0	$	58,760
Prudential Financial	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
Prudential Financial	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
UPARC	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	417,067	$	385,459	$	0	$	31,608
UPARC	September 2017	Transfer In	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
GUL Re	September 2017	Transfer Out	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
UPARC	September 2017	Purchase	Other Invested Assets - Derivatives	$	20,685	$	20,685	$	0	$	0
UPARC	November 2017	Purchase	Fixed Maturities & Short-Term Investments	$	41,250	$	34,332	$	0	$	6,919
Prudential Insurance	December 2017	Sale	Commercial Mortgages	$	106,199	$	105,191	$	655	$	0
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0	$	0

51

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Debt Agreements

The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short-term and long-term debt with affiliates for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date Issued	Amount of Notes - March 31, 2018		Amount of Notes - December 31, 2017		Interest Rate		Date of Maturity
		(in thousands)
Prudential Funding, LLC	3/29/2018	$	80	$	0	1.77	%	4/2/2018
Total Loans Payable to Affiliates		$	80	$	0

The total interest expense to the Company related to loans payable to affiliates was $0.1 million and $0.2 million for the three months ended March 31, 2018 and 2017, respectively.

Contributed Capital and Dividends

In March 2018, the Company received a capital contribution in the amount of $6 million from Prudential Insurance. In March 2017 and July 2017, the Company received capital contributions in the amounts of $5 million and $149 million, respectively, from Prudential Insurance.

Through March 31, 2018, the Company did not pay any dividends. In December of 2017, the Company paid a dividend in the amount of $250 million to Prudential Insurance.

Reinsurance with Affiliates

As discussed in Note 7, the Company participates in reinsurance transactions with certain affiliates.

10.    COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial loans. As of March 31, 2018 and December 31, 2017, the outstanding balances on these commitments were $3 million and $15 million, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of March 31, 2018 and December 31, 2017, $185 million and $196 million, respectively, of these commitments were outstanding.

Guarantees

In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that set out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

Contingent Liabilities

On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

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PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of March 31, 2018, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $30 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

For a discussion of the Company's litigation and regulatory matters, see Note 11 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

There are no material developments in previously reported matters disclosed as of December 31, 2017.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) addresses the consolidated financial condition of Pruco Life Insurance Company, or the “Company,” as of March 31, 2018, compared with December 31, 2017, and its consolidated results of operations for the three months ended March 31, 2018 and 2017. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the MD&A, the “Risk Factors” section, and the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as well as the statements under “Forward-Looking Statements” and the Unaudited Interim Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

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Overview

The Company sells variable and fixed annuities, universal life insurance, variable life insurance and term life insurance primarily through affiliated and unaffiliated distributors in the United States.

In July 2017, the Company announced the formation of a joint venture with CT Corp to provide life insurance solutions in Indonesia. CT Corp controls one of Indonesia’s largest and most prominent business groups with primary areas of focus in the financial services, media, retail, property, lifestyle and entertainment sectors. The joint venture, in which the Company owns a 49% interest, is expected to take a multi-product and multi-channel distribution approach and will leverage CT Corp’s existing businesses and strategic partnerships to offer insurance products to customers. While this transaction is expected to provide long-term growth potential, it is not currently significant to the operating results of the Company.

Regulatory Developments

Fiduciary Rules

In March 2018, the Fifth Circuit Court of Appeals vacated the fiduciary rules adopted by the U.S. Department of Labor (“DOL”) in April 2016. The decision became effective on May 7, 2018. We cannot predict how the decision will impact our business, including in view of other pending regulatory developments regarding enhanced standards of care.

In April 2018, the Securities and Exchange Commission (the “SEC”) proposed a package of rulemakings and interpretative guidance that would, among other things, require broker-dealers to act in the best interest of retail customers when recommending securities transactions or investment strategies to them. The proposals would also clarify the SEC’s views of the fiduciary duty that investment advisers owe to their clients. If enacted in their current form, we believe the primary impact of the proposals would be to sales of certain of our products and to our Prudential Advisors distribution system. Given the uncertainty of the ultimate outcome of these proposals, we cannot predict the timing of any final rules or interpretations or their expected effects on our businesses.

For additional information on the potential impacts of regulation on the Company see “Business—Regulation” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017.

Impact of a Low Interest Rate Environment

As a global financial services company, market interest rates are a key driver of our results of operations and financial condition. Changes in interest rates can affect our results of operations and/or our financial condition in several ways, including favorable or adverse impacts to:

• investment-related activity, including: investment income returns, net interest margins, net investment spread

results, new money rates, mortgage loan prepayments and bond redemptions;

• insurance reserve levels, market experience true-ups, and amortization of deferred policy acquisition costs (“DAC”);

• customer account values, including their impact on fee income;

• product offerings, design features, crediting rates and sales mix; and

• policyholder behavior, including surrender or withdrawal activity.

For more information on interest rate risks, see “Risk Factors—Market Risk” included in our Annual Report on Form 10-K for the year ended December 31, 2017.

Revenues and Expenses

The Company earns revenues principally from insurance premiums, mortality and expense fees, asset administration fees from insurance and investment products, and from net investment income on the investment of general account and other funds. The Company earns premiums primarily from the sale of individual life insurance and annuity products. The Company earns mortality and expense fees and asset administration fees primarily from the sale and servicing of universal life insurance and separate account products including variable life insurance and variable annuities. The Company’s operating expenses principally consist of insurance benefits provided and reserves established for anticipated future insurance benefits, general business expenses, reinsurance premiums, commissions and other costs of selling and servicing the various products sold and interest credited on general account liabilities.

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Profitability

The Company’s profitability depends principally on its ability to price our insurance and annuity products at a level that enables us to earn a margin over the costs associated with providing benefits and administering those products. Profitability also depends on, among other items, our actuarial and policyholder behavior experience on insurance and annuity products, our ability to attract and retain customer assets, generate and maintain favorable investment results, and manage expenses.

See “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 for a discussion of risks that have materially affected and may affect in the future the Company’s business, results of operations or financial condition, or cause the Company’s actual results to differ materially from those expected or those expressed in any forward looking statements made by or on behalf of the Company.

Products

Individual Annuities

The Company offers a wide array of annuities, including variable annuities with (1) fixed interest rate allocation options, subject to a market value adjustment, that are registered with the SEC and (2) fixed-rate allocation options not subject to a market value adjustment and not registered with the SEC. The Company also offers fixed annuitization options during the payout phase of its variable annuities.

We offer certain variable annuities that provide our contractholders with tax-deferred asset accumulation together with a base death benefit, an optional enhanced death benefit and a suite of optional guaranteed living benefits (including versions with enhanced guaranteed minimum death benefits) and annuitization options. The majority of our currently sold variable annuity contracts include an optional guaranteed living benefit which provides, among other features, the ability to make withdrawals based on the highest daily contract value plus a specified return, credited for a period of time. This contract value is a notional amount that forms the basis for determining periodic withdrawals for the life of the contractholder, and cannot be accessed as a lump-sum surrender value. Certain optional living benefits can also be purchased with a companion optional death benefit, also based on a highest daily contract value. Our results are impacted by the fee rates we assess on our products. Some of our historical in force products have fee tiers that decline throughout the life of the contract while our newer products generally have lower fee rates.

The Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income (“HDI”) offers lifetime income based on the highest daily account value plus a compounded deferral credit. HDI v.3.0 is the most current version of our “highest daily” guaranteed living benefits. An optional enhanced death benefit called Legacy Protection Plus is available only at time of purchase and not in combination with any other benefit options. Under the Legacy Protection Plus benefit, we maintain a separate death benefit amount based on the contract holder's purchase payments subject to annual roll-up increases at a preset rate until certain events occur.

The Prudential Defined Income (“PDI”) Variable Annuity complements other variable annuity products we offer with the highest daily lifetime income benefit. PDI provides for guaranteed lifetime withdrawal payments, but restricts contractholder investment to a single bond fund sub-account within the separate accounts. PDI includes a living benefit guarantee which provides for a specified lifetime income withdrawal rate applied to purchase payments paid, subject to annual roll-up increases until lifetime withdrawals commence, but does not have the highest daily feature.

We also offer variable annuities without guaranteed living benefits. The Prudential Premier® Investment Variable Annuity ("PPI") offers tax-deferred asset accumulation, annuitization options and an optional death benefit that guarantees the contractholder’s beneficiary a return of total purchase payments made to the contract, adjusted for any partial withdrawals, upon death.

Excluding our PDI product, the majority of our variable annuities generally provide our contractholders with the opportunity to allocate purchase payments to sub-accounts that invest in underlying proprietary and/or non-proprietary mutual funds, frequently under asset allocation programs. Certain products also allow or require allocation to fixed-rate accounts that are invested in the general account and are credited with interest at rates we determine, subject to certain minimums. We also offer fixed annuities that provide a guarantee of principal and interest credited at rates we determine, subject to certain contractual minimums. For certain products, we have the ability to reset the crediting rates at our discretion subject to certain contract terms establishing guaranteed minimum interest crediting rates. Certain allocations made in the fixed-rate accounts of our variable annuities and certain fixed annuities impose a market value adjustment if the invested amount is not held to maturity.

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In addition, most contracts also guarantee the contractholder's beneficiary a return of total purchase payments made to the contract, adjusted for any partial withdrawals, upon death. Certain in force contracts include guaranteed benefits which are not currently offered with new sales, such as annuitization benefits based on a guaranteed notional amount and benefits payable at specified dates after the accumulation period.

The Company's in force business includes both variable and fixed annuities that may include optional living benefits guarantees (e.g., guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”), and guaranteed minimum income and withdrawal benefits (“GMIWB”)), and/or guaranteed minimum death benefits (“GMDB”).

The reserves for GMDB and GMIB are calculated based on best estimates applying our actuarial and capital markets return assumptions in accordance with an insurance fulfillment accounting framework whereby a liability is established over time representing the portion of fees collected that is expected to be used to satisfy the obligation to pay benefits in future periods.

In contrast, certain of our guaranteed living benefits (e.g., GMAB, GMWB and GMIWB) are accounted for in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") as embedded derivatives and reported using a fair value accounting framework. These benefit features are carried at fair value based on estimates of assumptions a market participant would use in valuing these embedded derivatives and the change in fair value during each reporting period is recorded within “Realized investment gains (losses), net”.

As mentioned below, in addition to our asset transfer feature, we manage certain risks associated with our variable annuity products through affiliated and unaffiliated reinsurance agreements. Through March 31, 2016, we reinsured the majority of our variable annuity living benefit guarantees to an affiliated reinsurance company, Pruco Re. The living benefits hedging program was primarily executed within Pruco Re to manage capital markets risk associated with the reinsured living benefit guarantees. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, to PALAC, excluding PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements cover new and in force business and exclude business reinsured externally. The product risks related to the business reinsured to PALAC are being managed in PALAC and the product risks related to the business reinsured to Prudential Insurance are being managed in Prudential Insurance. In addition, the living benefits hedging program related to the reinsured living benefit guarantees is being managed within PALAC or Prudential Insurance, as applicable.

Term Life Insurance

The Company offers a variety of term life insurance products, which represent 67% of our net individual life insurance in force at March 31, 2018, that provide coverage for a specified time period. Most term products include a conversion feature that allows the policyholder to convert the policy into permanent life insurance coverage. The Company also offers term life insurance that provides for a return of premium if the insured is alive at the end of the level premium period. There continues to be significant demand for term life insurance protection.

Variable Life Insurance

The Company offers a number of individual variable life insurance products, which represent 18% of our net individual life insurance in force at March 31, 2018, that give the policyholder the flexibility to change both the death benefit and premium payments, and provide the potential to earn returns based on an underlying investment portfolio that the policyholder selects. The policyholder generally can make deposits for investments in a fixed-rate option which is part of our general account or in separate account investment options consisting of equity and fixed income funds. Funds invested in the fixed-rate option provide a guarantee of principal and are credited with interest at rates that we determine, subject to certain contractual minimums. In the separate accounts, the policyholder bears the fund performance risk. The Company also offers a variable life product that has an optional flexible guarantee against lapse where policyholders can select the guarantee period. While variable life insurance continues to be an important product, marketplace demand continues to favor term and universal life insurance. A meaningful portion of the Company's individual life insurance profits, however, is associated with our large in force block of variable life insurance policies.

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Universal Life Insurance

The Company offers universal life insurance products that feature flexible premiums and a crediting rate that we determine, subject to certain contractual minimums. Guaranteed universal life products, which represent 12% of our net individual life insurance in force at March 31, 2018, provide a guarantee of death benefits to remain in force when a policy would otherwise lapse due to insufficient cash value. The Company also offers other universal life insurance products, which represent 3% of our net individual life insurance in force at March 31, 2018. These include products that allow the policyholders to allocate all or a portion of their account balance into an index account. The index account provides interest or an interest component linked to, but not an investment in, S&P 500 index performance over the following year, subject to certain participation rates and contractual minimums and maximums. Mortality and expense margins and net interest spread impact profits from universal life insurance.

Accounting Policies & Pronouncements

Application of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Management reviews estimates and assumptions used in the preparation of financial statements on an ongoing basis. If management determines that modifications in assumptions and estimates are appropriate given current facts and circumstances, the Company’s results of operations and financial position as reported in the Unaudited Interim Consolidated Financial Statements could change significantly.

Management believes the accounting policies relating to the following areas are most dependent on the application of estimates and assumptions and require management’s most difficult, subjective, or complex judgments:

• DAC and other costs, including deferred sales inducements (“DSI”);

• Policyholder liabilities;

• Valuation of investments, including derivatives, and the recognition of other-than-temporary impairments ("OTTI");

• Reinsurance recoverables;

• Taxes on income; and

• Reserves for contingencies, including reserves for losses in connection with unresolved legal matters.

DAC and Other Costs

The near-term future equity rate of return assumptions used in evaluating DAC and other costs for our domestic variable annuity and variable life insurance products are derived using a reversion to the mean approach, a common industry practice. Under this approach, we consider historical equity returns and adjust projected equity returns over an initial future period of five years (the “near-term”) so that equity returns converge to the long-term expected rate of return. If the near-term projected future rate of return is greater than our near-term maximum future rate of return of 15%, we use our maximum future rate of return. As of March 31, 2018, our variable annuities and variable life insurance businesses assume an 8% long-term equity expected rate of return and a 4.3% near-term mean reversion equity expected rate of return.

The weighted average rate of return assumptions consider many factors specific to each business, including asset durations, asset allocations and other factors. We generally update the near-term equity rates of return and our estimate of total gross profits each quarter to reflect the result of the reversion to the mean approach. We generally update the future interest rates used to project fixed income returns annually and in any quarter when interest rates vary significantly from these assumptions. As a result of our 2017 annual reviews and update of assumptions and other refinements, we reduced our long-term expectation of the 10-year U.S. Treasury rate by 25 basis points and now grade to 3.75% over ten years. These market performance related adjustments to our estimate of total gross profits result in cumulative adjustments to prior amortization, reflecting the application of the new required rate of amortization to all prior periods’ gross profits.

Adoption of New Accounting Pronouncements

See Note 2 to our Unaudited Interim Consolidated Financial Statements for a discussion of newly adopted accounting pronouncements and accounting pronouncements issued but not yet adopted.

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Changes in Financial Position

March 31, 2018 versus December 31, 2017

Total assets decreased $3.1 billion, from $172.5 billion at December 31, 2017 to $169.4 billion at March 31, 2018. Significant components were:

• Separate account assets decreased $2.2 billion, primarily driven by unfavorable market performance, policy charges and net outflows.

• Reinsurance recoverables decreased $0.9 billion. The decrease was primarily driven by a decrease in the reinsured variable annuity living benefit liabilities of $1.2 billion as a result of credit spread widening and a rise in interest rates, partially offset by an increase of $0.3 billion in universal and term life recoverables driven by business growth.

Total liabilities decreased $2.9 billion, from $169.6 billion at December 31, 2017 to $166.7 billion at March 31, 2018. Significant components were:

• Separate account liabilities decreased $2.2 billion, corresponding to the decrease in separate account assets described above.

• Future policy benefits decreased $0.9 billion, primarily due to a decrease in the reinsured variable annuity living benefit liabilities partially offset by term and universal life business growth, as discussed above.

• Policyholders’ account balances increased $0.5 billion, primarily driven by universal life business growth.

Total equity decreased $0.1 billion, from $2.8 billion at December 31, 2017 to $2.7 billion at March 31, 2018, primarily driven by unrealized investment losses due to a rise in interest rates.

Results of Operations

Income (loss) from Operations before Income Taxes

2018 to 2017 Three Months Comparison

Income (loss) from operations before income taxes decreased $13.3 million from $21.6 million in the first quarter of 2017 to $8.3 million in the first quarter of 2018. This was primarily driven by higher realized investment losses of $16.5 million driven by losses on interest rate swaps as a result of rising interest rates in the current quarter.

Revenues, Benefits and Expenses

2018 to 2017 Three Months Comparison

Revenues decreased $25.5 million from $211.0 million in the first quarter of 2017 to $185.5 million in the first quarter of 2018, primarily driven by an unfavorable variance in realized investment gains (losses) of $16.5 million driven by interest rate swaps, as described above. Net investment income decreased $11.7 million primarily driven by lower average assets in the current quarter as a result of the reinsurance of risks related to the no-lapse guarantees for Universal Life products in the third quarter of 2017.

Benefits and expenses decreased $12.2 million from $189.3 million in the first quarter of 2017 to $177.1 million in the first quarter of 2018, primarily driven by a decrease in guaranteed universal life reserves as a result of an increase in future reinsurance recoveries pertaining to no lapse guarantees as a result of our Cost of Reinsurance accounting change implemented in the second quarter of 2017, partially offset by an increase in DAC amortization.

Variable Annuity Risks and Risk Mitigants

The following is a summary of: (i) certain risks associated with Individual Annuities’ products; (ii) certain strategies in mitigating those risks, including any updates to those strategies since the previous year end; and (iii) the related financial results. For a more detailed description of these items and their related accounting treatment, refer to the complete descriptions provided in our Annual Report on Form 10-K for the year ended December 31, 2017.

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The primary risk exposures of our variable annuity contracts relate to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including capital markets assumptions such as equity market returns, interest rates and market volatility, along with actuarial assumptions such as contractholder mortality, the timing and amount of annuitization and withdrawals, and contract lapses. For these risk exposures, achievement of our expected earnings and profitability is subject to the risk that actual experience will differ from the assumptions used in the original pricing of these products. We currently manage our exposure to certain risks driven by capital markets fluctuations primarily through a combination of product design features, an Asset Liability Management ("ALM") Strategy and External Reinsurance.

Product Design Features

A portion of the variable annuity contracts that we offer include an asset transfer feature. This feature is implemented at the contract level, and transfers assets between certain variable investment sub-accounts selected by the annuity contractholder and, depending on the benefit feature, a fixed-rate account in the general account or a bond fund sub-account within the separate accounts. The objective of the asset transfer feature is to help reduce our exposure to equity market risk and market volatility. The asset transfer feature associated with currently-sold highest daily benefit products uses a designated bond fund sub-account within the separate accounts. The transfers are based on a static mathematical formula used with the particular benefit which considers a number of factors, including, but not limited to, the impact of investment performance on the contractholder’s total account value. Other product design features we utilize include, among others, asset allocation restrictions, minimum issuance age requirements and certain limitations on the amount of contractholder deposits, as well as a required minimum allocation to our general account for certain of our products. We have also introduced products that diversify our risk profile and have incorporated provisions in product design allowing frequent revisions of key pricing elements. In addition, there is diversity in our fee arrangements, as certain fees are primarily based on the benefit guarantee amount, the contractholder account value and/or premiums, which helps preserve certain revenue streams when market fluctuations cause account values to decline.

External Reinsurance

As of March 31, 2018, $3.2 billion of HDI v3.0 account values are reinsured to Union Hamilton Reinsurance Ltd., an external counterparty, pursuant to a quota share agreement that covered approximately 50% of new HDI v3.0 business issued between April 1, 2015 and December 31, 2016. HDI v3.0 is the current version of our “highest daily” living benefits guarantee that is available with our Prudential Premier® Retirement Variable Annuity. New sales of HDI v3.0 optional living benefits subsequent to December 31, 2016 are not covered by this external reinsurance agreement.

Asset Liability Management Strategy (including fixed income instruments and derivatives)

Under Prudential Financial's historical hedging program to manage certain capital market risks associated with certain variable annuity living benefit guarantees, the Company utilized the U.S. GAAP valuation, with certain modifications, to derive a hedge target that was more reflective of the Company's best estimate of future benefit payments, net of fees collected. Derivative positions were entered into that sought to offset the change in value of the hedge target.

During the third quarter of 2016, PALAC and Prudential Insurance implemented a new ALM strategy that utilizes a combination of both traditional fixed income instruments and derivatives to help defray potential claims associated with the variable annuity living benefit guarantees. Under the revised strategy, expected living benefit claims under less severe market conditions are managed through the accumulation of fixed income instruments and potential living benefit claims resulting from more severe market conditions are hedged using derivative instruments. PALAC and Prudential Insurance expect the revised strategy to result in more efficient management of its capital and liquidity associated with these products while continuing to mitigate fluctuations in net income due to capital market movements. Since the ALM strategy is conducted in PALAC and Prudential Insurance, the results of the strategy do not directly impact the Company's results of operations or financial condition.

The change in hedge strategy had no impact on how we value or account for the living benefit guarantees under U.S. GAAP.

Capital Hedge Program

During 2017, we commenced a capital hedge program within PALAC to further hedge equity market impacts. The program is intended to protect a portion of the overall capital position of the variable annuities business against its exposure to the equity markets. The capital hedge program is conducted using equity derivatives which include equity call and put options, total return swaps and futures contracts. Since the capital hedge program is conducted in PALAC, the results of the strategy do not directly impact the Company's results of operations or financial condition.

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Income Taxes

For information regarding income taxes, see Note 6 to the Unaudited Interim Consolidated Financial Statements.

Liquidity and Capital Resources

This section supplements and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” included in our Annual Report on Form 10-K for the year ended December 31, 2017.

Overview

Liquidity refers to the ability to generate sufficient cash resources to meet the payment obligations of the Company. Capital refers to the long-term financial resources available to support the operations of our businesses, fund business growth, and provide a cushion to withstand adverse circumstances. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our businesses, general economic conditions, our ability to borrow from affiliates and our access to the capital markets through affiliates as described herein.

Effective and prudent liquidity and capital management is a priority across the organization. Management monitors the liquidity of Prudential Financial, Prudential Insurance and the Company on a daily basis and projects borrowing and capital needs over a multi-year time horizon through our periodic planning process. We believe that cash flows from available sources of funds are sufficient to satisfy the current liquidity requirements of Prudential Insurance, Prudential Financial and the Company, including under reasonably foreseeable stress scenarios. Prudential Financial has a capital management framework in place that governs the allocation of capital and approval of capital uses. Prudential Financial and the Company also employ a “Capital Protection Framework” to ensure the availability of capital resources to maintain adequate capitalization and competitive risk-based capital ("RBC") ratios under various stress scenarios.

Prudential Financial is a Designated Financial Company under Dodd-Frank. As a Designated Financial Company, Prudential Financial is subject to supervision and examination by the Federal Reserve Bank of Boston and to stricter prudential regulatory standards, which include or will include requirements and limitations (many of which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, resolution and recovery plans, credit exposure reporting, early remediation, management interlocks and credit concentration. They may also include standards regarding enhanced public disclosure, short-term debt limits and other related subjects. In addition, the Financial Stability Board has identified Prudential Financial as a global systemically important insurer ("G-SII"). For information on these regulatory initiatives and their potential impact on us, see "Business-Regulation” and “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2017.

Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to an affiliated company, Pruco Re, in order to facilitate the capital markets hedging program for these living benefit guarantees. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and reinsured the variable annuity base contracts, along with the living benefit guarantees, to PALAC, excluding the PLNJ business which was reinsured to Prudential Insurance.

Capital

Our capital management framework is primarily based on statutory RBC measures. The RBC ratio is a primary measure of the capital adequacy of the Company. RBC is calculated based on statutory financial statements and risk formulas consistent with the practices of the National Association of Insurance Commissioners ("NAIC"). RBC considers, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer’s products and liabilities, interest rate risks and general business risks. RBC ratio calculations are intended to assist insurance regulators in measuring an insurer’s solvency and ability to pay future claims. The reporting of RBC measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities, but is available to the public. The RBC ratio is an annual calculation; however, as of March 31, 2018 we estimate that the Company’s RBC ratio exceeds the minimum level required by applicable insurance regulations.

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The NAIC is evaluating changes to RBC factors as a result of the Tax Act of 2017, including the impact of the reduction of the corporate tax rate from 35% to 21%. This tax rate reduction has the effect of increasing an insurer’s required capital on an after-tax basis. This general principle impacts a number of RBC factors resulting in an overall decrease in insurers’ RBC ratios. While the impact and timing of any changes will not be fully known until the final updated RBC requirements are formally issued and adopted, the Company expects to have the necessary resources to maintain its “AA” ratings targets.

The regulatory capital level of the Company can be materially impacted by interest rate and equity market fluctuations, changes in the values of derivatives, the level of impairments recorded, credit quality migration of the investment portfolio, and business growth, among other items. In addition, the reinsurance of business or the recapture of business subject to reinsurance arrangements could negatively impact regulatory capital levels. The Company’s regulatory capital level is also affected by statutory accounting rules, which are subject to change by each applicable insurance regulator.

Capital Protection Framework

Prudential Financial and the Company employ a "Capital Protection Framework" (the "Framework”) to ensure that sufficient capital resources are available to maintain adequate capitalization and competitive RBC ratios and solvency margins under various stress scenarios. The Framework incorporates the potential impacts from market related stresses, including equity markets, real estate, interest rates, and credit losses.

The Framework accommodates periodic volatility within ranges that are deemed acceptable, while also providing for potential sources of capital, including on-balance sheet capital, derivatives, and contingent sources of capital. We believe we currently have access to sufficient resources, either directly, or indirectly through Prudential Financial, to maintain adequate capitalization and a competitive RBC ratio under a range of potential stress scenarios.

Liquidity

Our liquidity is managed to ensure stable, reliable and cost-effective sources of cash flows to meet all of our obligations. Liquidity is provided by a variety of sources, as described more fully below, including portfolios of liquid assets. Our investment portfolios are integral to the overall liquidity of the Company. We use a projection process for cash flows from operations to ensure sufficient liquidity to meet projected cash outflows, including claims. The impact of Prudential Funding, LLC’s, or Prudential Funding, a wholly-owned subsidiary of Prudential Insurance, financing capacity on liquidity (as described below) is considered in the internal liquidity measures of the Company.

Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support. We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures to evaluate our liquidity under various stress scenarios, including company-specific and market-wide events. We continue to believe that cash generated by ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios.

Cash Flow

The principal sources of the Company’s liquidity are premiums and certain annuity considerations, investment and fee income, investment maturities and sales as well as internal borrowings. The principal uses of that liquidity include benefits, claims, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity. Other uses of liquidity may include commissions, general and administrative expenses, purchases of investments, the payment of dividends to the parent company, hedging and reinsurance activity and payments in connection with financing activities.

Liquid Assets

Liquid assets include cash and cash equivalents, short-term investments, fixed maturities that are not designated as held-to-maturity and public equity securities. As of March 31, 2018 and December 31, 2017 the Company had liquid assets of $5,425 million and $5,517 million, respectively. The portion of liquid assets comprised of cash and cash equivalents and short-term investments was $82 million and $214 million as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, $4,823 million, or 92%, of the fixed maturity investments in Company general account portfolios were rated high or highest quality based on NAIC or equivalent rating.

61

Affiliated captive reinsurance companies are used to finance the portion of the statutory reserves required to be held under Regulation XXX and Guideline AXXX that is considered non-economic. The financing arrangements involve term and universal life business we reinsure to our affiliated captive reinsurers. The surplus notes issued by those affiliated captives are treated as capital for statutory purposes. These surplus notes are subordinated to policyholder obligations, and the payment of principal on the surplus notes may only be made with prior insurance regulatory approval.

Our affiliated captive reinsurance companies have entered into agreements with external counterparties providing for the issuance of surplus notes in return for the receipt of credit-linked notes ("Credit-Linked Note Structures"). Under the agreements the affiliated captive receives, in exchange for the surplus notes, one or more credit-linked notes issued by a special-purpose affiliate of the Company with an aggregate principal amount equal to the surplus notes outstanding. The affiliated captive holds the credit-linked notes as assets supporting Regulation XXX or Guideline AXXX non-economic reserves, as applicable. As of March 31, 2018, our affiliated captive reinsurance companies had Credit-Linked Note Structures with an aggregate issuance capacity of $12,700 million, of which $9,799 million was outstanding, as compared to an aggregate issuance capacity of $11,100 million, of which $9,487 million was outstanding, as of December 31, 2017. For more information on our Credit-Linked Note Structures, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Financing Activities” in our Annual Report on Form 10-K for the year ended December 31, 2017.

As of March 31, 2018, our affiliated captive reinsurance companies also had outstanding an aggregate of $3.2 billion of debt issued for the purpose of financing Regulation XXX and Guideline AXXX non-economic reserves, of which approximately $0.6 billion relates to Regulation XXX reserves and approximately $2.6 billion relates to Guideline AXXX reserves, all of which was issued by Prudential Financial. In addition, as of March 31, 2018, for purposes of financing Guideline AXXX reserves, our affiliated captives had outstanding approximately $4.0 billion of surplus notes that were issued to Prudential Financial in exchange for promissory notes of affiliates guaranteed by Prudential Financial.

The NAIC’s actuarial guideline known as “AG 48” requires us to hold cash and rated securities in greater amounts than we previously held to support economic reserves for certain of our term and universal life policies reinsured to a captive. The total additional asset requirement from the inception of AG 48 through December 31, 2017, was approximately $1.8 billion, which we funded using a combination of existing assets and newly purchased assets sourced from affiliated financing. We believe our affiliated captive reinsurance companies have sufficient internal and affiliated resources to satisfy the additional asset requirement through 2018.

The Company adopted principles-based reserving for its guaranteed universal life products and introduced updated versions of these products in 2017. The updated products are expected to support the principles-based statutory reserve level without the need for financing through captive reinsurance. The Company is continuing to assess the impact of principles-based reserving on projected statutory reserve levels and product pricing for its remaining portfolio of individual life product offerings.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of fluctuations in the value of financial instruments as a result of absolute or relative changes in interest rates, foreign currency exchange rates, equity prices or commodity prices. To varying degrees, our products and services, and the investment activities supporting them, generate exposure to market risk. The market risk incurred, and our strategies for managing this risk, vary by product. As of March 31, 2018, there have been no material changes in our economic exposure to market risk from December 31, 2017, a description of which may be found in our Annual Report on Form 10-K for the year ended December 31, 2017, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” filed with the SEC. See Item 1A, “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2017, for a discussion of how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.

Item 4.  Controls and Procedures

In order to ensure that the information we must disclose in our filings with the SEC is recorded, processed, summarized, and reported on a timely basis, the Company’s management, including our Chief Executive Officer and Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Securities Exchange Act of 1934, as amended (“Exchange Act”) Rule 13a-15(e), as of March 31, 2018. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2018, our disclosure controls and procedures were effective. No change in our internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f), occurred during the quarter ended March 31, 2018, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

62

PART II—OTHER INFORMATION

Item 1.  Legal Proceedings

See Note 10 to the Unaudited Interim Consolidated Financial Statements under “—Litigation and Regulatory Matters” for a description of certain pending litigation and regulatory matters affecting us, and certain risks to our businesses presented by such matters, which is incorporated herein by reference.

Item 1A. Risk Factors

You should carefully consider the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017. These risks could materially affect our business, results of operations or financial condition or cause our actual results to differ materially from those expected or those expressed in any forward looking statements made by or on behalf of the Company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” above and the risks of our businesses described elsewhere in this Quarterly Report on Form 10-Q.

63

Item 6. Exhibits

EXHIBIT INDEX

31.1 Section 302 Certification of the Chief Executive Officer

31.2 Section 302 Certification of the Chief Financial Officer

32.1 Section 906 Certification of the Chief Executive Officer

32.2 Section 906 Certification of the Chief Financial Officer

101.INS - XBRL Instance Document

101.SCH - XBRL Taxonomy Extension Schema Document.

101.CAL - XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB - XBRL Taxonomy Extension Label Linkbase Document

101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF - XBRL Taxonomy Extension Definition Linkbase Document

64

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pruco Life Insurance Company
By:	/s/    John Chieffo
Name:	John Chieffo
	Vice President and Chief Financial Officer
	(Authorized Signatory and Principal Financial Officer)

Date: May 10, 2018

65

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I,  Kent D. Sluyter, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Pruco Life Insurance Company;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2018

/s/ Kent D. Sluyter

Kent D. Sluyter

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I,  John Chieffo, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Pruco Life Insurance Company;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2018

/s/ John Chieffo

John Chieffo

Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. § 1350, I, Kent D. Sluyter, President and Chief Executive Officer of Pruco Life Insurance Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 10, 2018

/s/ Kent D. Sluyter

Kent D. Sluyter

President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350, I, John Chieffo, Vice President and Chief Financial Officer of Pruco Life Insurance Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 10, 2018

/s/ John Chieffo

John Chieffo

Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 10, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Entity Registrant Name	PRUCO LIFE INSURANCE CO
Entity Central Index Key	0000777917
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		250,000

XML

Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2018 – $5,107,015; 2017 – $4,941,944)		$ 5,258,693	$ 5,223,302
Fixed maturities, trading, at fair value (amortized cost: 2018 – $38,279; 2017 – $38,279)	[1]	39,650	38,793
Equity securities, at fair value (cost: 2018 – $37,689; 2017 – $32,694)	[1]	44,419	40,610
Policy loans		1,169,847	1,161,101
Short-term investments		1,194	1,339
Commercial mortgage and other loans		1,137,366	1,083,419
Other invested assets (includes $62,117 and $726 measured at fair value under the fair value option at March 31, 2018 and December 31, 2017, respectively)	[1]	304,417	263,074
Total investments		7,955,586	7,811,638
Cash and cash equivalents		81,186	212,569
Deferred policy acquisition costs		1,432,029	1,376,211
Accrued investment income		83,878	82,341
Reinsurance recoverables		31,696,534	32,555,500
Receivables from parent and affiliates		280,118	300,116
Other assets		433,592	465,467
Separate account assets		127,433,522	129,655,734
TOTAL ASSETS		169,396,445	172,459,576
LIABILITIES
Policyholders’ account balances		20,535,072	20,036,134
Future policy benefits		17,431,953	18,593,130
Cash collateral for loaned securities		13,576	33,169
Income taxes		786	32,440
Short-term debt to affiliates		80	0
Payables to parent and affiliates		240,129	228,210
Other liabilities		1,013,952	1,060,123
Separate account liabilities		127,433,522	129,655,734
TOTAL LIABILITIES		166,669,070	169,638,940
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding)		2,500	2,500
Additional paid-in capital		1,146,592	1,141,092
Retained earnings		1,499,351	1,511,698
Accumulated other comprehensive income		78,932	165,346
TOTAL EQUITY		2,727,375	2,820,636
TOTAL LIABILITIES AND EQUITY		$ 169,396,445	$ 172,459,576

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

XML

Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Fixed maturities, available for sale, amortized cost	$ 5,107,015	$ 4,941,944
Fixed maturities, trading, amortized cost	38,279	38,279
Equity securities, at fair value	37,689	32,694
Other invested assets, at fair value	$ 62,117	$ 726
Common stock, par value (in dollars per share)	$ 10	$ 10
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	250,000	250,000
Common stock, shares outstanding	250,000	250,000

XML

Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUES
Premiums	$ 7,915	$ 5,757
Policy charges and fee income	125,896	128,002
Net investment income	77,915	89,615
Asset administration fees	3,473	4,187
Other income	19,296	15,977
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(594)	(4,412)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income	0	8
Other realized investment gains (losses), net	(48,448)	(28,175)
Total realized investment gains (losses), net	(49,042)	(32,579)
TOTAL REVENUES	185,453	210,959
BENEFITS AND EXPENSES
Policyholders’ benefits	48,955	71,487
Interest credited to policyholders’ account balances	40,798	44,760
Amortization of deferred policy acquisition costs	26,604	16,272
General, administrative and other expenses	60,790	56,819
TOTAL BENEFITS AND EXPENSES	177,147	189,338
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306	21,621
Income tax expense (benefit)	(2,448)	(18,451)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754	40,072
Equity in earnings of operating joint venture, net of taxes	(638)	0
NET INCOME (LOSS)	10,116	40,072
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(923)	23
Net unrealized investment gains (losses)	(145,051)	27,203
Total	(145,974)	27,226
Less: Income tax expense (benefit) related to other comprehensive income (loss)	(30,700)	9,529
Other comprehensive income (loss), net of tax	(115,274)	17,697
COMPREHENSIVE INCOME (LOSS)	$ (105,158)	$ 57,769

XML

Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Equity
Beginning Balance at Dec. 31, 2016		$ 2,500	$ 986,062	$ 1,437,266	$ 70,975	$ 2,496,803
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributed capital			5,000			5,000
Comprehensive income (loss):
Net income (loss)	$ 40,072			40,072		40,072
Other comprehensive income (loss), net of tax	17,697				17,697	17,697
Total comprehensive income (loss)						57,769
Ending Balance at Mar. 31, 2017		2,500	991,062	1,477,338	88,672	2,559,572
Beginning Balance at Dec. 31, 2017		2,500	1,141,092	1,511,698	165,346	2,820,636
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption | ASU 2016-01				7,936	(1,539)	6,397
Cumulative effect of adoption | ASU 2018-02				(30,399)	30,399	0
Contributed capital			5,500			5,500
Comprehensive income (loss):
Net income (loss)	10,116			10,116		10,116
Other comprehensive income (loss), net of tax	$ (115,274)				(115,274)	(115,274)
Total comprehensive income (loss)						(105,158)
Ending Balance at Mar. 31, 2018		$ 2,500	$ 1,146,592	$ 1,499,351	$ 78,932	$ 2,727,375

XML

Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ 10,116	$ 40,072
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income		(24,173)	(5,861)
Interest credited to policyholders’ account balances		40,798	44,760
Realized investment (gains) losses, net		49,042	32,579
Amortization and other non-cash items		(9,397)	(13,524)
Change in:
Future policy benefits		511,380	636,570
Reinsurance recoverables		(430,215)	(573,224)
Accrued investment income		(1,537)	(1,375)
Net payables to/receivables from parent and affiliates		29,615	51,947
Deferred policy acquisition costs		(45,184)	(42,083)
Income taxes		(2,651)	(18,545)
Derivatives, net		(41,944)	4,288
Other, net		(93,619)	(101,520)
Cash flows from (used in) operating activities		(7,769)	54,084
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale		69,410	364,657
Equity securities	[1]	6	896
Policy loans		39,271	37,016
Ceded policy loans		(5,192)	(2,980)
Short-term investments		3,513	26,651
Commercial mortgage and other loans		16,369	8,775
Other invested assets	[1]	2,502	4,089
Payments for the purchase/origination of:
Fixed maturities, available-for-sale		(188,613)	(454,404)
Equity securities	[1]	(5,000)	(5,386)
Policy loans		(35,689)	(26,120)
Ceded policy loans		4,957	3,272
Short-term investments		(3,400)	(16,979)
Commercial mortgage and other loans		(69,717)	(76,114)
Other invested assets	[1]	(30,358)	(8,028)
Notes receivable from parent and affiliates, net		3,853	4,718
Derivatives, net		(776)	151
Other, net		(1,465)	(606)
Cash flows from (used in) investing activities		(200,329)	(140,392)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits		1,119,440	1,055,826
Ceded policyholders’ account deposits		(757,139)	(734,147)
Policyholders’ account withdrawals		(694,382)	(656,190)
Ceded policyholders’ account withdrawals		437,445	375,116
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities		(19,593)	(44,961)
Net change in financing arrangements (maturities 90 days or less)		80	108,100
Drafts outstanding		9,136	(19,797)
Cash flows from (used in) financing activities		76,715	123,541
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(131,383)	37,233
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		212,569	96,157
CASH AND CASH EQUIVALENTS, END OF PERIOD		$ 81,186	$ 133,390

[1] Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

XML

Business and Basis of Presentation

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all States except New York, and sells such products primarily through affiliated and unaffiliated distributors.

Pruco Life has two subsidiaries, including one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and one indirect subsidiary formed in 2009 for the purpose of holding certain commercial loan and other investments. Pruco Life and its subsidiaries are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only.

Variable Annuities Recapture

Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to an affiliated reinsurance company, Pruco Reinsurance, Ltd. ("Pruco Re"). Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, to Prudential Annuities Life Assurance Corporation ("PALAC"), excluding the PLNJ business, which was reinsured to Prudential Insurance, in each case under a coinsurance and modified coinsurance agreement. These reinsurance agreements cover new and in force business and exclude business reinsured externally. The product risks related to the reinsured business are being managed in PALAC and Prudential Insurance, as applicable. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within PALAC and Prudential Insurance, as applicable. These series of transactions are collectively referred to as the "Variable Annuities Recapture".

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

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Significant Accounting Policies and Pronouncements

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies and Pronouncements

SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

Adoption of ASU 2016-01

Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income”.

The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

(1) Changes to the presentation within the Consolidated Statements of Financial Position

Because of the fundamental accounting changes as described in section "(3) Changes to Accounting Policies" below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification.

	December 31, 2017
	As previously reported		Reclassifications									As currently reported
Consolidated Statements of Financial Position Line Items			(1)			(2)			(3)
	(in thousands)
Fixed maturities, available for sale, at fair value	$	5,223,302										$	5,223,302
*Fixed maturities, trading, at fair value	0					38,793						38,793
Equity securities, available for sale, at fair value	23,122		(23,122		)							0
*Equity securities, at fair value	0		23,122			17,488						40,610
Trading account assets, at fair value	56,281					(56,281		)				0
Policy loans	1,161,101											1,161,101
Short-term investments	1,339											1,339
Commercial mortgage and other loans	1,083,419											1,083,419
Other long-term investments	263,074								(263,074		)	0
*Other invested assets	0								263,074			263,074
Total investments	$	7,811,638	$	0		$	0		$	0		$	7,811,638

* - New line item effective January 1, 2018.

Strikethrough - Eliminated line item effective January 1, 2018.

(1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale.

(2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item.

(3) Retitled “Other long-term investments” to “Other invested assets”.

(2) Cumulative-effect Adjustment Upon Adoption

The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018.

Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement
of Financial Position upon Adoption on January 1, 2018
(in thousands)
	Increase / (Decrease)
Other invested assets	$	8,097
Total assets	$	8,097
Income taxes	$	1,700
Total liabilities	1,700
Accumulated other comprehensive income (loss)	(1,539		)
Retained earnings	7,936
Total equity	6,397
Total liabilities and equity	$	8,097

(3) Changes to Accounting Policies

This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above.

ASSETS

Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Trading account assets, at fair value”. Realized and unrealized gains and losses on these investments are reported in “Other income”, and interest and dividend income from these investments is reported in “Net investment income”.

Equity securities, at fairvalue is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value”. As a result of the adoption of the standard, equity securities previously reported in “Trading account assets, at fair value” were reclassified to “Equity securities, at fair value”. The retitled financial statement line is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity investments reported in the financial statement line formerly titled “Equity securities, available for sale, at fair value” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings.

Other invested assets is the new title of the financial statement line formerly titled “Other long-term investments”. Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets”. The retitled financial statement line consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs")(other than operating joint ventures) and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”.

REVENUES AND BENEFITS AND EXPENSES

Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading”, “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value.

Other ASU adopted during the three months ended March 31, 2018.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard.	January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have an impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)	This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows.	January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash	In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows.	January 1, 2018 using the retrospective method (with early adoption permitted).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017.	January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized.	The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $30.4 million.

ASU issued but not yet adopted as of March 31, 2018

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

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Investments

3 Months Ended

Mar. 31, 2018

Investments [Abstract]

Investments

INVESTMENTS

Fixed Maturity Securities

The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	92,948	$	2,953	$	10	$	95,891	$	0
Obligations of U.S. states and their political subdivisions	597,016		21,248		492		617,772		0
Foreign government bonds	177,188		3,427		3,895		176,720		0
Public utilities	688,996		42,907		4,398		727,505		0
Redeemable preferred stock	4,074		773		0		4,847		0
All other U.S. public corporate securities	1,282,335		62,496		14,836		1,329,995		(215		)
All other U.S. private corporate securities	694,522		11,121		5,904		699,739		0
All other foreign public corporate securities	227,906		7,573		3,473		232,006		0
All other foreign private corporate securities	780,001		43,614		10,350		813,265		0
Asset-backed securities(1)	179,037		2,684		111		181,610		(132		)
Commercial mortgage-backed securities	316,110		2,339		7,097		311,352		0
Residential mortgage-backed securities(2)	66,882		2,020		911		67,991		(203		)
Total fixed maturities, available-for-sale	$	5,107,015	$	203,155	$	51,477	$	5,258,693	$	(550	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $1.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	95,851	$	3,964	$	0	$	99,815	$	0
Obligations of U.S. states and their political subdivisions	597,254		38,204		0		635,458		0
Foreign government bonds	128,058		7,536		496		135,098		0
Public utilities	677,702		61,588		1,058		738,232		0
Redeemable preferred stock	4,053		957		0		5,010		0
All other U.S. public corporate securities	1,254,140		105,524		2,580		1,357,084		(215		)
All other U.S. private corporate securities	710,424		18,306		1,644		727,086		0
All other foreign public corporate securities	168,399		12,522		732		180,189		0
All other foreign private corporate securities	737,037		41,405		9,598		768,844		0
Asset-backed securities(1)	179,935		2,519		26		182,428		(138		)
Commercial mortgage-backed securities	320,223		5,148		2,539		322,832		0
Residential mortgage-backed securities(2)	68,868		2,527		169		71,226		(220		)
Total fixed maturities, available-for-sale	$	4,941,944	$	300,200	$	18,842	$	5,223,302	$	(573	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $2.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	624	$	10	$	0	$	0	$	624	$	10
Obligations of U.S. states and their political subdivisions	60,950		492		0		0		60,950		492
Foreign government bonds	108,388		3,083		11,398		812		119,786		3,895
Public utilities	135,788		3,081		17,852		1,317		153,640		4,398
All other U.S. public corporate securities	382,978		9,187		90,933		5,649		473,911		14,836
All other U.S. private corporate securities	332,751		4,299		31,181		1,605		363,932		5,904
All other foreign public corporate securities	101,487		2,748		6,782		725		108,269		3,473
All other foreign private corporate securities	151,956		2,372		64,751		7,978		216,707		10,350
Asset-backed securities	13,376		107		308		4		13,684		111
Commercial mortgage-backed securities	101,300		2,114		90,648		4,983		191,948		7,097
Residential mortgage-backed securities	29,802		643		5,811		268		35,613		911
Total fixed maturities, available-for-sale	$	1,419,400	$	28,136	$	319,664	$	23,341	$	1,739,064	$	51,477

	December 31, 2017
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		0		0		0		0
Foreign government bonds	16,522		210		11,959		286		28,481		496
Public utilities	26,466		380		27,354		678		53,820		1,058
All other U.S. public corporate securities	36,100		304		102,490		2,276		138,590		2,580
All other U.S. private corporate securities	79,495		781		36,642		863		116,137		1,644
All other foreign public corporate securities	27,078		190		8,390		542		35,468		732
All other foreign private corporate securities	48,109		472		133,055		9,126		181,164		9,598
Asset-backed securities	6,351		22		317		4		6,668		26
Commercial mortgage-backed securities	49,823		285		93,403		2,254		143,226		2,539
Residential mortgage-backed securities	8,030		28		6,160		141		14,190		169
Total fixed maturities, available-for-sale	$	297,974	$	2,672	$	419,770	$	16,170	$	717,744	$	18,842

As of March 31, 2018 and December 31, 2017, the gross unrealized losses on fixed maturity securities were composed of $44.7 million and $13.9 million, respectively, related to "1" highest quality or "2" high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $6.8 million and $4.9 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2018, the $23.3 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage-backed securities and in the Company's corporate securities within the energy, finance and consumer non-cyclical sectors. As of December 31, 2017, the $16.2 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage backed securities and in the Company's corporate securities within the energy and finance sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either March 31, 2018 or December 31, 2017. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of March 31, 2018, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2018
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	188,789	$	191,560
Due after one year through five years	738,939		747,181
Due after five years through ten years	1,035,613		1,064,058
Due after ten years	2,581,645		2,694,941
Asset-backed securities	179,037		181,610
Commercial mortgage-backed securities	316,110		311,352
Residential mortgage-backed securities	66,882		67,991
Total fixed maturities, available-for-sale	$	5,107,015	$	5,258,693

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	16,852		$	287,708
Proceeds from maturities/prepayments	54,310			114,846
Gross investment gains from sales and maturities	144			3,197
Gross investment losses from sales and maturities	(359		)	(2,823		)
OTTI recognized in earnings(2)	(594		)	(4,404		)

(1) Includes $1.8 million and $37.9 million of non-cash related proceeds due to the timing of trade settlements for the three months endedMarch 31, 2018 and 2017, respectively.

(2) Excludes the portion of OTTI amounts remaining in “Other comprehensive income (loss)” ("OCI"), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	4,374		$	5,520
New credit loss impairments	0			0
Additional credit loss impairments on securities previously impaired	0			0
Increases due to the passage of time on previously recorded credit losses	37			27
Reductions for securities which matured, paid down, prepaid or were sold during the period	(42		)	(118		)
Reductions for securities impaired to fair value during the period(1)	0			0
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(25		)	(72		)
Assets transferred to parent and affiliates	0			0
Balance, end of period	$	4,344		$	5,357

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(1.2) million and $1.4 million during the three months ended March 31, 2018 and 2017, respectively.

Commercial Mortgage and Other Loans

The following table sets forth the composition of "Commercial mortgage and other loans," as of the dates indicated:

	March 31, 2018					December 31, 2017
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	358,405		31.5	%	$	356,694		32.9	%
Hospitality	16,419			1.4		16,529			1.5
Industrial	230,050			20.2		180,619			16.7
Office	169,762			14.9		159,646			14.7
Other	93,195			8.2		99,119			9.1
Retail	204,271			17.9		205,367			18.9
Total commercial mortgage loans	1,072,102			94.1		1,017,974			93.8
Agricultural property loans	66,927			5.9		67,239			6.2
Total commercial mortgage and agricultural property loans by property type	1,139,029			100.0	%	1,085,213			100.0	%
Valuation allowance	(1,663		)			(1,794		)
Total commercial mortgage and other loans	$	1,137,366				$	1,083,419

As of March 31, 2018, the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California (23%), Texas (14%) and New York (6%)) and included loans secured by properties in Europe (5%), Australia (4%) and Mexico (2%).

The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans			Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,728		$	66	$	1,794
Addition to (release of) allowance for losses	(131		)	0		(131		)
Charge-offs, net of recoveries	0			0		0
Total ending balance	$	1,597		$	66	$	1,663

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,513	$	45	$	1,558
Addition to (release of) allowance for losses	215		21		236
Charge-offs, net of recoveries	0		0		0
Total ending balance	$	1,728	$	66	$	1,794

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,597		66		1,663
Total ending balance(1)	$	1,597	$	66	$	1,663
Recorded investment(2):
Individually evaluated for impairment	$	0	$	842	$	842
Collectively evaluated for impairment	1,072,102		66,085		1,138,187
Total ending balance(1)	$	1,072,102	$	66,927	$	1,139,029

(1) As of March 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,728		66		1,794
Total ending balance(1)	$	1,728	$	66	$	1,794
Recorded investment(2):
Individually evaluated for impairment	$	2,316	$	1,153	$	3,469
Collectively evaluated for impairment	1,015,658		66,086		1,081,744
Total ending balance(1)	$	1,017,974	$	67,239	$	1,085,213

(1) As of December 31, 2017, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	593,048	$	22,787	$	692	$	616,527
60%-69.99%	347,468		21,689		1,993		371,150
70%-79.99%	123,607		27,513		0		151,120
80% or greater	0		232		0		232
Total loans	$	1,064,123	$	72,221	$	2,685	$	1,139,029

	December 31, 2017
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	606,846	$	21,709	$	705	$	629,260
60%-69.99%	333,185		9,594		2,010		344,789
70%-79.99%	84,492		26,439		0		110,931
80% or greater	0		0		233		233
Total loans	$	1,024,523	$	57,742	$	2,948	$	1,085,213

The following tables set forth an aging of past due commercial mortgage and other loans, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,072,102	$	0	$	0	$	0	$	1,072,102	$	0
Agricultural property loans	66,927		0		0		0		66,927		0
Total	$	1,139,029	$	0	$	0	$	0	$	1,139,029	$	0

(1) As of March 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,017,974	$	0	$	0	$	0	$	1,017,974	$	0
Agricultural property loans	67,239		0		0		0		67,239		0
Total	$	1,085,213	$	0	$	0	$	0	$	1,085,213	$	0

(1) As of December 31, 2017, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

For the three months ended March 31, 2018 and 2017, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold.

The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. For the three months ended March 31, 2018 and 2017, there were no new troubled debt restructurings related to commercial mortgage and other loans with payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the twelve months preceding. As of both March 31, 2018 and December 31, 2017, the Company had no significant commitments to provide additional funds to borrowers that had been involved in a troubled debt restructuring. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2018		December 31, 2017
	(in thousands)
Company's investment in separate accounts	$	38,918	$	37,404
LPs/LLCs:
Equity method:
Private equity	138,775		123,957
Hedge funds	53,480		53,066
Real estate-related	10,679		7,040
Subtotal equity method	202,934		184,063
Fair value:
Private equity	54,836		35,686
Hedge funds	778		726
Real estate-related	6,503		5,186
Subtotal fair value(1)	62,117		41,598
Total LPs/LLCs	265,051		225,661
Derivative instruments	448		9
Total other invested assets(2)	$	304,417	$	263,074

(1) As of December 31, 2017, $40.9 million was accounted for under the cost method.

(2) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2.

Net Investment Income

The following table sets forth "Net investment income" by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale	$	53,260		$	59,067
Fixed maturities, trading	266			179
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,405			13,116
Policy loans	15,904			15,628
Short-term investments and cash equivalents	323			187
Other invested assets	115			6,379
Gross investment income	82,494			94,777
Less: investment expenses	(4,579		)	(5,162		)
Net investment income(1)	$	77,915		$	89,615

(1) Prior period amounts have been reclassified to conform to current period presentation.

Realized Investment Gains (Losses), Net

The following table sets forth "Realized investment gains (losses), net," by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities(1)	$	(809	)	$	(4,030	)
Equity securities(2)	0			(114		)
Commercial mortgage and other loans	131			(139		)
LPs/LLCs	847			(73		)
Derivatives(3)	(49,193		)	(28,217		)
Short-term investments and cash equivalents	(18		)	(6		)
Realized investment gains (losses), net	$	(49,042	)	$	(32,579	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

(2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within "Other income".

(3) Includes the hedged items offset in qualifying fair value hedge accounting relationships.

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2018			December 31, 2017
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	697		$	1,609
Fixed maturity securities, available-for-sale—all other	150,981			279,749
Equity securities, available-for-sale(1)	0			2,368
Derivatives designated as cash flow hedges(2)	(40,540		)	(17,678		)
Affiliated notes	1,844			4,782
Other investments	2,738			3,588
Net unrealized gains (losses) on investments	$	115,720		$	274,418

(1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within "Other income."

(2) For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of March 31, 2018 and December 31, 2017, the Company had no repurchase agreements.

The following table sets forth the composition of "Cash collateral for loaned securities," which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	March 31, 2018						December 31, 2017
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	4,887	$	0	$	4,887	$	0	$	22,460	$	22,460
Foreign government bonds	3,003		0		3,003		6,157		0		6,157
U.S. public corporate securities	5,237		0		5,237		4,074		0		4,074
U.S. private corporate securities	0		0		0		0		0		0
Foreign public corporate securities	449		0		449		478		0		478
Total cash collateral for loaned securities(1)	$	13,576	$	0	$	13,576	$	10,709	$	22,460	$	33,169

(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

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Derivative Instruments

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to:

•Interest rate contracts: futures, swaps, options, swaptions, caps and floors

•Equity contracts: futures, options and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

•Other contracts: embedded derivatives

For detailed information on these contracts and the related strategies, see Note 10 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Primary Risks Managed by Derivatives

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risk, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and non-performance risk ("NPR").

	March 31, 2018							December 31, 2017
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Total Qualifying Hedges	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,926	$	16,660	$	(2,888	)	$	246,925	$	23,032	$	0
Foreign Currency
Foreign Currency Forwards	19,565		10		(177		)	16,320		0		(376		)
Credit
Credit Default Swaps	756		0		(37		)	1,594		0		(96		)
Currency/Interest Rate
Foreign Currency Swaps	81,493		2,722		(7,205		)	95,145		4,347		(5,600		)
Equity
Equity Options	1,441,893		53,854		(15,143		)	1,277,102		69,472		(23,500		)
Total Non-Qualifying Hedges	$	1,790,633	$	73,246	$	(25,450	)	$	1,637,086	$	96,851	$	(29,572	)
Total Derivatives (1)	$	2,484,180	$	87,991	$	(91,132	)	$	2,286,991	$	115,094	$	(74,378	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $4,191 million and $5,453 million as of March 31, 2018 and December 31, 2017, respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables" or "Other liabilities," was a net asset of $4,198 million and $5,458 million as of March 31, 2018 and December 31, 2017, respectively. Of these reinsurance recoverables, the fair value related to the living benefits guarantee from PALAC and Prudential Insurance was a net asset of $4,214 million and $5,445 million and the fair value related to the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income ("HDI") v.3.0 from Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty, was a net liability of $16 million and a net asset of $13 million as of March 31, 2018 and December 31, 2017, respectively. See Note 7 for additional information on these reinsurance agreements.

The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $40 million and $47 million as of March 31, 2018 and December 31, 2017, respectively. There was no related reinsurance recoverables at each respective period.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	87,981	$	(87,981	)	$	0	$	0		$	0
Securities purchased under agreements to resell	28,500		0			28,500		(28,500		)	0
Total Assets	$	116,481	$	(87,981	)	$	28,500	$	(28,500	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0

	December 31, 2017
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	115,086	$	(115,086	)	$	0	$	0		$	0
Securities purchased under agreements to resell	148,000		0			148,000		(148,000		)	0
Total Assets	$	263,086	$	(115,086	)	$	148,000	$	(148,000	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Cash Flow Hedges

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships.

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2018
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,538	$	(664	)	$	(22,862	)
Total qualifying hedges	0			1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,851		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total non-qualifying hedges	(49,193		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

	Three Months Ended March 31, 2017
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,188	$	(2,421	)	$	(10,261	)
Total qualifying hedges	0			1,188		(2,421		)	(10,261		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	501			0		0			0
Currency	(128		)	0		0			0
Currency/Interest Rate	2,127			0		3			0
Credit	(31		)	0		0			0
Equity	5,921			0		0			0
Embedded Derivatives	(36,607		)	0		0			0
Total non-qualifying hedges	(28,217		)	0		3			0
Total	$	(28,217	)	$	1,188	$	(2,418	)	$	(10,261	)

(1) Amounts deferred in AOCI.

For the three months ended March 31, 2018 and 2017, the ineffective portion of derivatives accounted for using hedge accounting were de minimis to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2017	$	(17,678	)
Net deferred gains/(losses) on cash flow hedges from January 1 to March 31, 2018	(22,543		)
Amounts reclassified into current period earnings	(319		)
Balance, March 31, 2018	$	(40,540	)

The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2018 values, it is estimated that a pre-tax gain of $6 million will be reclassified from AOCI to earnings during the subsequent twelve months ending March 31,2019, offset by amounts pertaining to the hedged items.

As of March 31, 2018, the Company did not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 40 years.

Credit Derivatives

The company has no exposure from credit derivative positions where it has written credit protection as of March 31, 2018 and December 31, 2017.

The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $1 million and $2 million reported at fair value as a liability of $0.0 million and $0.1 million as of March 31, 2018 and December 31, 2017, respectively.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement as applicable; (ii) trading through a central clearing and OTC; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

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Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Assets and Liabilities by Hierarchy Level– The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	74,322	$	21,569	$	0		$	95,891
Obligations of U.S. states and their political subdivisions	0		617,772		0		0			617,772
Foreign government bonds	0		176,554		166		0			176,720
U.S. corporate public securities	0		1,748,392		677		0			1,749,069
U.S. corporate private securities	0		871,184		57,706		0			928,890
Foreign corporate public securities	0		234,224		0		0			234,224
Foreign corporate private securities	0		880,942		14,232		0			895,174
Asset-backed securities(2)	0		87,126		94,484		0			181,610
Commercial mortgage-backed securities	0		311,159		193		0			311,352
Residential mortgage-backed securities	0		67,795		196		0			67,991
Subtotal	0		5,069,470		189,223		0			5,258,693
Fixed maturities, trading	0		39,650		0		0			39,650
Equity securities	101		27,279		17,039		0			44,419
Short-term investments	0		0		1,194		0			1,194
Other invested assets(3)	0		87,981		10		(87,981		)	10
Reinsurance recoverables	0		0		4,214,114		0			4,214,114
Receivables from parent and affiliates	0		122,827		6,531		0			129,358
Subtotal excluding separate account assets	101		5,347,207		4,428,111		(87,981		)	9,687,438
Separate account assets(4)(5)	0		123,324,538		0		0			123,324,538
Total assets	$	101	$	128,671,745	$	4,428,111	$	(87,981	)	$	133,011,976
Future policy benefits(6)	$	0	$	0	$	4,191,373	$	0		$	4,191,373
Policyholders' account balances	0		0		39,516		0			39,516
Payables to parent and affiliates	0		91,132		0		(87,763		)	3,369
Other liabilities	0		0		15,955		0			15,955
Total liabilities	$	0	$	91,132	$	4,246,844	$	(87,763	)	$	4,250,213

	As of December 31, 2017
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	80,611	$	19,204	$	0		$	99,815
Obligations of U.S. states and their political subdivisions	0		635,458		0		0			635,458
Foreign government bonds	0		134,924		174		0			135,098
U.S. corporate public securities	0		1,779,935		1,154		0			1,781,089
U.S. corporate private securities	0		901,080		60,158		0			961,238
Foreign corporate public securities	0		182,243		209		0			182,452
Foreign corporate private securities	0		837,766		13,900		0			851,666
Asset-backed securities(2)	0		71,400		111,028		0			182,428
Commercial mortgage-backed securities	0		322,832		0		0			322,832
Residential mortgage-backed securities	0		71,226		0		0			71,226
Subtotal	0		5,017,475		205,827		0			5,223,302
Fixed maturities, trading(7)	0		38,793		0		0			38,793
Equity securities(7)	94		22,991		17,525		0			40,610
Short-term investments	0		0		1,339		0			1,339
Cash equivalents	0		28,007		0		0			28,007
Other invested assets(3)(7)	0		115,094		0		(115,086		)	8
Reinsurance recoverables	0		0		5,457,649		0			5,457,649
Receivables from parent and affiliates	0		132,571		0		0			132,571
Subtotal excluding separate account assets	94		5,354,931		5,682,340		(115,086		)	10,922,279
Separate account assets	0		125,543,035		0		0			125,543,035
Total assets	$	94	$	130,897,966	$	5,682,340	$	(115,086	)	$	136,465,314
Future policy benefits(6)	$	0	$	0	$	5,452,583	$	0		$	5,452,583
Policyholders' account balances	0		0		46,651		0			46,651
Payables to parent and affiliates	0		74,378		0		(69,718		)	4,660
Other liabilities	0		0		0		0			0
Total liabilities	$	0	$	74,378	$	5,499,234	$	(69,718	)	$	5,503,894

(1) “Netting” amounts represent cash collateral of $0.2 million and $45.4 million as of March 31, 2018 and December 31, 2017, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2018 and December 31, 2017, the fair values of such investments were $62.1 million and $0.7 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate net asset value per share ("NAV") (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, for which fair value is measured at net asset value per share (or its equivalent). At March 31, 2018 and December 31, 2017, the fair values of such investments were $4,109 million and $4,113 million, respectively.

(6) As of March 31, 2018, the net embedded derivative liability position of $4,191 million includes $931 million of embedded derivatives in an asset position and $5,122 million of embedded derivatives in a liability position. As of December 31, 2017, the net embedded derivative liability position of $5,453 million includes $823 million of embedded derivatives in an asset position and $6,276 million of embedded derivatives in a liability position.

(7) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

Transfers between Levels 1 and 2 – Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate account. The fair value of foreign common stock held in the Company's Separate account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During both the three months ended March 31, 2018 and 2017, there were no transfers between Level 1 and Level 2.

Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities– The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	37,491	Discounted cash flow	Discount rate	5.75	%	20	%	8.14	%	Decrease
			Liquidation	Liquidation value	13	%	13	%	13	%	Increase
Reinsurance recoverables	$	4,214,114	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	4,191,373	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.24	%	1.21	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	16	%	24	%			Increase

	As of December 31, 2017
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	36,966	Discounted cash flow	Discount rate	5.06	%	22.23	%	7.33	%	Decrease
			Liquidation	Liquidation value	25	%	25	%	25	%	Increase
Reinsurance recoverables	$	5,457,649	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	5,452,583	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.10	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2018 and December 31, 2017, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs– In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Changes in Level 3 Assets and Liabilities– The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.  

	Three Months Ended March 31, 2018
	Fixed Maturities, Available-for-Sale
	U. S. Government		Foreign Government Bonds			Corporate Securities(1)			Structured Securities(2)
	(in thousands)
Fair Value, beginning of period	$	19,204	$	0		$	75,421		$	111,028
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			68			0
Asset administration fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		(8		)	817			105
Net investment income	0		0			51			26
Purchases	2,365		0			1,022			190
Sales	0		0			0			0
Issuances	0		0			0			0
Settlements	0		0			(4,570		)	(3,195		)
Transfers into Level 3(4)	0		0			0			13,513
Transfers out of Level 3(4)	0		0			(209		)	(26,794		)
Other(5)	0		174			15			0
Fair Value, end of period	$	21,569	$	166		$	72,615		$	94,873
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(26	)	$	0
Asset administration fees and other income	$	0	$	0		$	0		$	0

	Three Months Ended March 31, 2018
	Equity Securities			Short-term Investments			Other Invested Assets		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	17,525		$	1,339		$	0	$	5,457,649
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			(18		)	1		(1,462,992		)
Asset administration fees and other income	(486		)	0			0		0
Included in other comprehensive income (loss)	0			0			0		0
Net investment income	0			0			0		0
Purchases	0			3,400			0		219,457
Sales	0			0			0		0
Issuances	0			0			0		0
Settlements	0			(3,513		)	0		0
Transfers into Level 3(4)	0			0			9		0
Transfers out of Level 3(4)	0			0			0		0
Other(5)	0			(14		)	0		0
Fair Value, end of period	$	17,039		$	1,194		$	10	$	4,214,114
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	(18	)	$	2	$	(1,409,320	)
Asset administration fees and other income	$	(486	)	$	0		$	0	$	0

	Three Months Ended March 31, 2018
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	0		$	(5,452,583	)	$	(46,651	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			1,487,555			5,013			(24,780		)
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	(20		)	0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			8,825
Sales	0			0			0			0
Issuances	0			(226,345		)	0			0
Settlements	0			0			2,122			0
Transfers into Level 3(4)	6,551			0			0			0
Transfers out of Level 3(4)	0			0			0			0
Other	0			0			0			0
Fair Value, end of period	$	6,531		$	(4,191,373	)	$	(39,516	)	$	(15,955	)
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	1,433,872		$	5,013		$	(24,780	)
Asset administration fees and other income	$	0		$	0		$	0		$	0

	Three Months Ended March 31, 2017
	Fixed Maturities, Available-for-Sale
	U. S. Government		Corporate Securities(1)			Structured Securities(2)(3)
	(in thousands)
Fair Value, beginning of period	$	0	$	102,556		$	19,856
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		352			0
Asset administration fees and other income	0		0			0
Included in other comprehensive income (loss)	0		453			73
Net investment income	0		3			36
Purchases	25		5,958			4,000
Sales	0		(51,430		)	0
Issuances	0		0			0
Settlements	0		(5,518		)	(129		)
Transfers into Level 3(4)	0		1,814			64,507
Transfers out of Level 3(4)	0		(1,802		)	0
Other(5)	3,570		(3,570		)	0
Fair Value, end of period	$	3,595	$	48,816		$	88,343
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(62	)	$	0
Asset administration fees and other income	$	0	$	0		$	0

	Three Months Ended March 31, 2017
	Equity Securities(3)		Other Invested Assets(3)		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	15,845	$	0	$	5,474,263
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0		11		(610,479		)
Asset administration fees and other income	1,420		0		0
Included in other comprehensive income (loss)	7		0		0
Net investment income	0		0		0
Purchases	0		0		216,595
Sales	0		0		0
Issuances	0		0		0
Settlements	0		0		0
Transfers into Level 3(4)	0		8		0
Transfers out of Level 3(4)	0		0		0
Other	0		0		0
Fair Value, end of period	$	17,272	$	19	$	5,080,379
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	(574,024	)
Asset administration fees and other income	$	1,420	$	0	$	0

	Three Months Ended March 31, 2017
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	6,493		$	(5,041,007	)	$	(20,337	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			623,193			(6,007		)	0
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			0
Sales	0			0			0			0
Issuances	0			(214,741		)	0			0
Settlements	0			0			1,477			0
Transfers into Level 3(4)	0			0			0			0
Transfers out of Level 3(4)	(6,493		)	0			0			0
Other	0			0			0			0
Fair Value, end of period	$	0		$	(4,632,555	)	$	(24,867	)	$	0
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	586,992		$	(6,007	)	$	0
Asset administration fees and other income	$	0		$	0		$	0		$	0

(1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation.

(2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation.

(3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

(4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter.

(5) Other, primarily represents reclassifications of certain assets and liabilities between reporting categories.

(6) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(7) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2018
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,150,210	$	1,150,210	$	1,137,366
Policy loans	0		0		1,169,847		1,169,847		1,169,847
Cash and cash equivalents	52,686		28,500		0		81,186		81,186
Accrued investment income	0		83,878		0		83,878		83,878
Receivables from parent and affiliates	0		150,760		0		150,760		150,760
Other assets	0		43,638		0		43,638		43,638
Total assets	$	52,686	$	306,776	$	2,320,057	$	2,679,519	$	2,666,675
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,198,114	$	275,384	$	1,473,498	$	1,480,611
Cash collateral for loaned securities	0		13,576		0		13,576		13,576
Short-term debt to affiliates	0		80		0		80		80
Payables to parent and affiliates	0		236,760		0		236,760		236,760
Other liabilities	0		353,291		0		353,291		353,291
Total liabilities	$	0	$	1,801,821	$	275,384	$	2,077,205	$	2,084,318

	December 31, 2017(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,111,625	$	1,111,625	$	1,083,419
Policy loans	0		0		1,161,101		1,161,101		1,161,101
Cash and cash equivalents	36,562		148,000		0		184,562		184,562
Accrued investment income	0		82,341		0		82,341		82,341
Receivables from parent and affiliates	0		167,545		0		167,545		167,545
Other assets	0		50,407		0		50,407		50,407
Total assets	$	36,562	$	448,293	$	2,272,726	$	2,757,581	$	2,729,375
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,178,583	$	276,435	$	1,455,018	$	1,458,599
Cash collateral for loaned securities	0		33,169		0		33,169		33,169
Payables to parent and affiliates	0		223,550		0		223,550		223,550
Other liabilities	0		362,592		0		362,592		362,592
Total liabilities	$	0	$	1,797,894	$	276,435	$	2,074,329	$	2,077,910

(1) The information presented as of December 31, 2017, excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $49 million and $41 million, respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of March 31, 2018, these assets are excluded from this table but are reported in the fair value recurring measurement table.

(2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Total income tax expense” divided by projected “Income from operations before income taxes”. 

The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $2.4 million, or (29.5)% of income from operations before income taxes in the first three months of 2018, compared to a benefit of $18.5 million, or (85.3)% of income from operations before income taxes in the first three months of 2017. The Company’s current effective tax rate differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income and tax credits. The Company's prior effective tax rate differed from the U.S. statutory rate of 35% primarily due to non-taxable investment income, tax credits, and domestic production activities deduction. The Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017") modified the methodology for determining the dividend received deduction and will likely reduce the tax benefit of non-taxable investment income in periods starting after December 31, 2017.

On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $17.6 million tax benefit in “Total income tax expense (benefit)” in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, the Company recorded the effects of the Tax Act of 2017 as reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. The Company has not fully completed its accounting for the tax effects of the Tax Act of 2017. As the Company completes the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interprets any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, the Company may make adjustments to these provisional amounts. These adjustments may materially impact the Company’s provision for income taxes in the period in which the adjustments are made. During the first quarter of 2018, the Company did not recognize additional refinements of our provisional estimates.

The cumulative financial statement impact related to the Tax Act of 2017 as of March 31, 2018 was $17.6 million tax benefit, unchanged from the balance as of December 31, 2017.

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Reinsurance

3 Months Ended

Mar. 31, 2018

Reinsurance Disclosures [Abstract]

Reinsurance

REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re"), Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties, and participated in reinsurance with its affiliate Pruco Re through March 31, 2016 and its affiliate Universal Prudential Arizona Reinsurance Company ("UPARC") through June 30, 2017. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, facilitate the Company's capital market hedging program, and align accounting methodology for the assets and liabilities of living benefit guarantees contained in annuities contracts. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

Reserves related to reinsured long duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for universal life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Through June 30, 2017, the Company had an agreement with UPARC to reinsure a portion of the no-lapse guarantee provision on certain universal life products. See below for additional information on the change effective July 1, 2017 related to the recapture of the no-lapse guarantee risks that were previously reinsured to UPARC. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. For additional information related to the accounting for embedded derivatives, see Note 10 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Reinsurance recoverables	$	31,696,534		$	32,555,500
Policy loans	(125,587		)	(124,843		)
Deferred policy acquisition costs	(6,968,267		)	(6,832,729		)
Deferred sales inducements	(616,795		)	(638,065		)
Other assets(1)	193,113			205,430
Policyholders’ account balances	5,004,098			5,004,885
Future policy benefits	3,219,983			3,301,841
Other liabilities(2)	587,909			626,306

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2018 and December 31, 2017.

(2) “Other liabilities” includes $42 million and $73 million of unaffiliated activity as of March 31, 2018 and December 31, 2017, respectively.

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2018		December 31, 2017
	(in thousands)
PAR U	$	11,096,056	$	11,111,272
PALAC	7,343,099		8,388,988
PURC	3,700,711		3,577,962
PARCC	2,535,700		2,546,673
GUL Re	1,845,549		1,772,950
PAR Term	1,583,047		1,559,618
Prudential of Taiwan	1,451,312		1,406,686
Term Re	1,053,052		966,509
Prudential Insurance	1,039,039		1,152,241
DART	36,658		0
Unaffiliated	12,311		72,601
Total reinsurance recoverables	$	31,696,534	$	32,555,500

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2018			2017
	(in thousands)
Premiums:
Direct		$	441,955		$	417,993
Assumed(1)		60			66
Ceded		(434,100		)	(412,302		)
Net premiums		7,915			5,757
Policy charges and fee income:
Direct		846,723			781,561
Assumed		121,709			116,339
Ceded(2)		(842,536		)	(769,898		)
Net policy charges and fee income		125,896			128,002
Net investment income:
Direct		79,149			90,401
Assumed		373			360
Ceded		(1,607		)	(1,146		)
Net investment income		77,915			89,615
Asset administration fees:
Direct		87,033			80,999
Assumed		0			0
Ceded		(83,560		)	(76,812		)
Net asset administration fees		3,473			4,187
Other income:
Direct		17,253			15,438
Assumed(3)		(90		)	551
Ceded		(52		)	(12		)
Amortization of reinsurance income		2,185			0
Net other income		19,296			15,977
Realized investment gains (losses), net:
Direct		1,474,762			622,126
Assumed		0			0
Ceded(4)		(1,523,804		)	(654,705		)
Realized investment gains (losses), net		(49,042		)	(32,579		)
Policyholders’ benefits (including change in reserves):
Direct		654,638			685,495
Assumed(5)		112,802			129,137
Ceded(6)		(718,485		)	(743,145		)
Net policyholders’ benefits (including change in reserves)		48,955			71,487
Interest credited to policyholders’ account balances:
Direct		124,734			98,917
Assumed		36,517			33,934
Ceded		(120,453		)	(88,091		)
Net interest credited to policyholders’ account balances		40,798			44,760
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(433,912		)	(362,236		)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months endedMarch 31, 2018 and 2017.

(2) "Policy charges and fee income ceded" includes $(2) million and $(0.7) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(3) "Other income assumed" includes $(0.1) million and $0.6 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(4) “Realized investment gains (losses), net ceded” includes $(38) million and $(8) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(5) "Policyholders' benefits (including change in reserves) assumed" includes $(0.1) million and $0.4 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(6) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million and $3 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

The gross and net amounts of life insurance face amount in force as of March 31, 2018 and 2017 were as follows:

	2018			2017
	(in thousands)
Direct gross life insurance face amount in force	$	893,787,108		$	840,190,324
Assumed gross life insurance face amount in force	41,584,568			42,499,716
Reinsurance ceded	(864,942,222		)	(817,213,475		)
Net life insurance face amount in force	$	70,429,454		$	65,476,565

Information regarding significant affiliated reinsurance agreements is described below.

PAR U

Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011.

Effective July 1, 2011, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving.

On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.

PALAC

Effective April 1, 2016, the Company entered into a reinsurance agreement with PALAC, to reinsure its variable annuity base contracts, along with the living benefit guarantees, excluding business reinsured externally and the PLNJ business, which was reinsured to Prudential Insurance. See Note 1 for additional information related to the Variable Annuities Recapture.

PURC

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

PARCC

The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC.

GUL Re

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017, excluding those policies that are subject to principles-based reserving.

Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014.

PAR Term

The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term.

Prudential of Taiwan

On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwan branch, including its Taiwan insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life.

The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re. 

Prudential Insurance

The Company, has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. Effective July 1, 2017, the Company will reinsure a portion of the mortality risk directly to third-party reinsurers and retain all of the non-reinsured portion of the mortality risk.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In December 2017, Hartford Financial announced a definitive agreement to sell a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control.

The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. See Note 1 for additional information related to the Variable Annuities Recapture.

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018.

UPARC

Through June 30, 2017, Pruco Life reinsured Universal Protector policies having no-lapse guarantees with effective dates through December 31, 2013 with UPARC. UPARC reinsured an amount equal to 27% of the net amount at risk related to the first $1 million in face amount plus 30% of the net amount at risk related to the face amount in excess of $1 million as well as 30% of the risk of uncollectible policy charges and fees associated with the no-lapse guarantee provision of these policies.

Effective July 1, 2017, Pruco Life recaptured the risks related to the no-lapse guarantees that were previously reinsured to UPARC and subsequently included these risks as part of the business ceded to GUL Re under the amended coinsurance agreement on that date. As part of the recapture, the Company received invested assets of $557 million as consideration from UPARC and unwound the associated reinsurance recoverable of $760 million. As a result, the Company recognized a loss of $203 million immediately.

Pruco Re

Through March 31, 2016, the Company, including its wholly-owned subsidiary PLNJ, entered into various automatic coinsurance agreements with Pruco Re to reinsure its living benefit guarantees sold on certain of its annuities. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture.

Information regarding significant third party reinsurance arrangements is described below.

Union Hamilton

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiaries, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier Retirement Variable Annuity, to Union Hamilton. During that time period, the Company ceded approximately $2.9 billion of new rider premiums to Union Hamilton under this agreement. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of March 31, 2018, $3.2 billion of HDI v.3.0 account values are reinsured to Union Hamilton.

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Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Equity

EQUITY

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the three months endedMarch 31, 2018 and 2017, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	0		$	165,346
Change in OCI before reclassifications	(923		)	(145,519		)	(22		)	(146,464		)
Amounts reclassified from AOCI	0			490			0			490
Income tax benefit (expense)	194			30,501			5			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	0			(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			0			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,962		$	(17	)	$	78,932

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2016	$	(402	)	$	71,377		$	0	$	70,975
Change in OCI before reclassifications	23			23,059			0		23,082
Amounts reclassified from AOCI	0			4,144			0		4,144
Income tax benefit (expense)	(8		)	(9,521		)	0		(9,529		)
Balance, March 31, 2017	$	(387	)	$	89,059		$	0	$	88,672

(1) Includes cash flow hedges of $(41) million and $(18) million as of March 31, 2018 and December 31, 2017, respectively, and $31 million and $41 million as of March 31, 2017 and December 31, 2016, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	319		$	3,133
Net unrealized investment gains (losses) on available-for-sale securities(4)	(809		)	(7,277		)
Total net unrealized investment gains (losses)	(490		)	(4,144		)
Total reclassifications for the period	$	(490	)	$	(4,144	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits and policyholders’ account balances. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale, certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from "Other comprehensive income (loss)" those items that are included as part of “Net income” for a period that had been part of "Other comprehensive income (loss)" in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	1,609		$	(99	)	$	22		$	(682	)	$	850
Net investment gains (losses) on investments arising during the period	(776		)	0			0			163			(613		)
Reclassification adjustment for (gains) losses included in net income	(136		)	0			0			29			(107		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			6			0			(1		)	5
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			(13		)	3			(10		)
Balance, March 31, 2018	$	697		$	(93	)	$	9		$	(488	)	$	125

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(1)			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	272,809		$	1,832		$	(28,998	)	$	(80,913	)	$	164,730
Net investment gains (losses) on investments arising during the period	(156,044		)	0			0			32,818			(123,226		)
Reclassification adjustment for (gains) losses included in net income	626			0			0			(132		)	494
Reclassification adjustment for OTTI (gains) losses excluded from net income(2)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			(29,720		)	0			6,250			(23,470		)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			41,028			(8,629		)	32,399
Cumulative effect of adoption of ASU 2016-01	(2,368		)	0			0			829			(1,539		)
Cumulative effect of adoption of ASU 2018-02	0			0			0			30,449			30,449
Balance, March 31, 2018	$	115,023		$	(27,888	)	$	12,030		$	(19,328	)	$	79,837

(1) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

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Related Party Transactions

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.2 million and $0.1 million for the three months ended March 31, 2018 and 2017, respectively. The expense charged to the Company for the deferred compensation program was $2 million and $3 million for the three months ended March 31, 2018 and 2017, respectively.

The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $6 million for both the three months ended March 31, 2018 and 2017.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $7 million for both the three months ended March 31, 2018 and 2017.

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $3 million for both the three months ended March 31, 2018 and 2017.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $175 million and $155 million for the three months ended March 31, 2018 and 2017, respectively.

The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity.  The Company’s share of corporate expenses was $18 million and $17 million for the three months ended March 31, 2018 and 2017, respectively.

Corporate Owned Life Insurance

The Company has sold five Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $3,739 million at March 31, 2018 and $3,688 million at December 31, 2017. Fees related to these COLI policies were $12 million for both the three months ended March 31, 2018 and 2017. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million for both the three months ended March 31, 2018 and 2017. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $81 million and $79 million as of March 31, 2018 and December 31, 2017, respectively. "Net investment income" related to these ventures includes a gain of $0.1 million and $4 million for the three months ended March 31, 2018 and 2017, respectively.

Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $84 million and $77 million for the three months ended March 31, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $2 million and $3 million for the three months ended March 31, 2018 and 2017, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2018 and December 31, 2017 were as follows:

	Maturity Dates			Interest Rates				March 31, 2018		December 31, 2017
								(in thousands)
U.S. Dollar floating rate notes			2028	3.13%	-	3.74	%	$	6,531	$	6,551
U.S. Dollar fixed rate notes	2022	-	2027	0.00%	-	14.85	%	122,828		126,020
Total long-term notes receivable - affiliated(1)								$	129,359	$	132,571

(1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above include those classified as loans, and carried at unpaid principal balance, net of any allowance for losses and those classified as available-for-sale securities and other trading account assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

Accrued interest receivable related to these loans was $0.7 million and $1 million at March 31, 2018 and December 31, 2017, respectively, and is included in “Other assets”. Revenues related to these loans were $1 million for both the three months ended March 31, 2018 and 2017, and are included in “Other income”.

Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)		Realized Investment Gain/(Loss)
				(in thousands)
PALAC	January 2017	Purchase	Fixed Maturities & Short-Term Investments	$	29	$	29	$	0	$	0
Prudential Insurance	June 2017	Sale	Fixed Maturities & Short-Term Investments	$	16,965	$	16,515	$	293	$	0
Prudential Insurance	June 2017	Sale	Commercial Mortgages	$	43,198	$	42,301	$	584	$	0
UPARC	September 2017	Transfer In	Other Invested Assets	$	37,354	$	37,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Other Invested Assets	$	72,354	$	72,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	1,254,457	$	1,195,697	$	0	$	58,760
Prudential Financial	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
Prudential Financial	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
UPARC	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	417,067	$	385,459	$	0	$	31,608
UPARC	September 2017	Transfer In	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
GUL Re	September 2017	Transfer Out	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
UPARC	September 2017	Purchase	Other Invested Assets - Derivatives	$	20,685	$	20,685	$	0	$	0
UPARC	November 2017	Purchase	Fixed Maturities & Short-Term Investments	$	41,250	$	34,332	$	0	$	6,919
Prudential Insurance	December 2017	Sale	Commercial Mortgages	$	106,199	$	105,191	$	655	$	0
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0	$	0

Debt Agreements

The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short-term and long-term debt with affiliates for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date Issued	Amount of Notes - March 31, 2018		Amount of Notes - December 31, 2017		Interest Rate		Date of Maturity
		(in thousands)
Prudential Funding, LLC	3/29/2018	$	80	$	0	1.77	%	4/2/2018
Total Loans Payable to Affiliates		$	80	$	0

The total interest expense to the Company related to loans payable to affiliates was $0.1 million and $0.2 million for the three months ended March 31, 2018 and 2017, respectively.

Contributed Capital and Dividends

In March 2018, the Company received a capital contribution in the amount of $6 million from Prudential Insurance. In March 2017 and July 2017, the Company received capital contributions in the amounts of $5 million and $149 million, respectively, from Prudential Insurance.

Through March 31, 2018, the Company did not pay any dividends. In December of 2017, the Company paid a dividend in the amount of $250 million to Prudential Insurance.

Reinsurance with Affiliates

As discussed in Note 7, the Company participates in reinsurance transactions with certain affiliates.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial loans. As of March 31, 2018 and December 31, 2017, the outstanding balances on these commitments were $3 million and $15 million, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of March 31, 2018 and December 31, 2017, $185 million and $196 million, respectively, of these commitments were outstanding.

Guarantees

In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that set out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

Contingent Liabilities

On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of March 31, 2018, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $30 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

For a discussion of the Company's litigation and regulatory matters, see Note 11 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

There are no material developments in previously reported matters disclosed as of December 31, 2017.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.

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Significant Accounting Policies and Pronouncements (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Reclassifications

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

Investment and Investment-Related Liabilities

Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Trading account assets, at fair value”. Realized and unrealized gains and losses on these investments are reported in “Other income”, and interest and dividend income from these investments is reported in “Net investment income”.

Equity securities, at fairvalue is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value”. As a result of the adoption of the standard, equity securities previously reported in “Trading account assets, at fair value” were reclassified to “Equity securities, at fair value”. The retitled financial statement line is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity investments reported in the financial statement line formerly titled “Equity securities, available for sale, at fair value” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings.

Other invested assets is the new title of the financial statement line formerly titled “Other long-term investments”. Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets”. The retitled financial statement line consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs")(other than operating joint ventures) and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”.

Other income

Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading”, “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value.

Adoption of New Accounting Pronouncements

Other ASU adopted during the three months ended March 31, 2018.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard.	January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have an impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)	This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows.	January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash	In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows.	January 1, 2018 using the retrospective method (with early adoption permitted).	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017.	January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized.	The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $30.4 million.

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

Adoption of ASU 2016-01

Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income”.

The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

(1) Changes to the presentation within the Consolidated Statements of Financial Position

Because of the fundamental accounting changes as described in section "(3) Changes to Accounting Policies" below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification.

	December 31, 2017
	As previously reported		Reclassifications									As currently reported
Consolidated Statements of Financial Position Line Items			(1)			(2)			(3)
	(in thousands)
Fixed maturities, available for sale, at fair value	$	5,223,302										$	5,223,302
*Fixed maturities, trading, at fair value	0					38,793						38,793
Equity securities, available for sale, at fair value	23,122		(23,122		)							0
*Equity securities, at fair value	0		23,122			17,488						40,610
Trading account assets, at fair value	56,281					(56,281		)				0
Policy loans	1,161,101											1,161,101
Short-term investments	1,339											1,339
Commercial mortgage and other loans	1,083,419											1,083,419
Other long-term investments	263,074								(263,074		)	0
*Other invested assets	0								263,074			263,074
Total investments	$	7,811,638	$	0		$	0		$	0		$	7,811,638

* - New line item effective January 1, 2018.

Strikethrough - Eliminated line item effective January 1, 2018.

(1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale.

(2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item.

(3) Retitled “Other long-term investments” to “Other invested assets”.

(2) Cumulative-effect Adjustment Upon Adoption

The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018.

Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement
of Financial Position upon Adoption on January 1, 2018
(in thousands)
	Increase / (Decrease)
Other invested assets	$	8,097
Total assets	$	8,097
Income taxes	$	1,700
Total liabilities	1,700
Accumulated other comprehensive income (loss)	(1,539		)
Retained earnings	7,936
Total equity	6,397
Total liabilities and equity	$	8,097

(3) Changes to Accounting Policies

This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above.

Future Adoption Of New Accounting Pronouncements

ASU issued but not yet adopted as of March 31, 2018

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting.	January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

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Significant Accounting Policies and Pronouncements (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Adoption of ASU 2016-01

The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018.

Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement
of Financial Position upon Adoption on January 1, 2018
(in thousands)
	Increase / (Decrease)
Other invested assets	$	8,097
Total assets	$	8,097
Income taxes	$	1,700
Total liabilities	1,700
Accumulated other comprehensive income (loss)	(1,539		)
Retained earnings	7,936
Total equity	6,397
Total liabilities and equity	$	8,097

The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification.

	December 31, 2017
	As previously reported		Reclassifications									As currently reported
Consolidated Statements of Financial Position Line Items			(1)			(2)			(3)
	(in thousands)
Fixed maturities, available for sale, at fair value	$	5,223,302										$	5,223,302
*Fixed maturities, trading, at fair value	0					38,793						38,793
Equity securities, available for sale, at fair value	23,122		(23,122		)							0
*Equity securities, at fair value	0		23,122			17,488						40,610
Trading account assets, at fair value	56,281					(56,281		)				0
Policy loans	1,161,101											1,161,101
Short-term investments	1,339											1,339
Commercial mortgage and other loans	1,083,419											1,083,419
Other long-term investments	263,074								(263,074		)	0
*Other invested assets	0								263,074			263,074
Total investments	$	7,811,638	$	0		$	0		$	0		$	7,811,638

* - New line item effective January 1, 2018.

Strikethrough - Eliminated line item effective January 1, 2018.

(1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale.

(2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item.

(3) Retitled “Other long-term investments” to “Other invested assets”.

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Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments [Abstract]

Fixed Maturities Securities, Available-for-sale Securities

The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	92,948	$	2,953	$	10	$	95,891	$	0
Obligations of U.S. states and their political subdivisions	597,016		21,248		492		617,772		0
Foreign government bonds	177,188		3,427		3,895		176,720		0
Public utilities	688,996		42,907		4,398		727,505		0
Redeemable preferred stock	4,074		773		0		4,847		0
All other U.S. public corporate securities	1,282,335		62,496		14,836		1,329,995		(215		)
All other U.S. private corporate securities	694,522		11,121		5,904		699,739		0
All other foreign public corporate securities	227,906		7,573		3,473		232,006		0
All other foreign private corporate securities	780,001		43,614		10,350		813,265		0
Asset-backed securities(1)	179,037		2,684		111		181,610		(132		)
Commercial mortgage-backed securities	316,110		2,339		7,097		311,352		0
Residential mortgage-backed securities(2)	66,882		2,020		911		67,991		(203		)
Total fixed maturities, available-for-sale	$	5,107,015	$	203,155	$	51,477	$	5,258,693	$	(550	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $1.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	95,851	$	3,964	$	0	$	99,815	$	0
Obligations of U.S. states and their political subdivisions	597,254		38,204		0		635,458		0
Foreign government bonds	128,058		7,536		496		135,098		0
Public utilities	677,702		61,588		1,058		738,232		0
Redeemable preferred stock	4,053		957		0		5,010		0
All other U.S. public corporate securities	1,254,140		105,524		2,580		1,357,084		(215		)
All other U.S. private corporate securities	710,424		18,306		1,644		727,086		0
All other foreign public corporate securities	168,399		12,522		732		180,189		0
All other foreign private corporate securities	737,037		41,405		9,598		768,844		0
Asset-backed securities(1)	179,935		2,519		26		182,428		(138		)
Commercial mortgage-backed securities	320,223		5,148		2,539		322,832		0
Residential mortgage-backed securities(2)	68,868		2,527		169		71,226		(220		)
Total fixed maturities, available-for-sale	$	4,941,944	$	300,200	$	18,842	$	5,223,302	$	(573	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $2.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	624	$	10	$	0	$	0	$	624	$	10
Obligations of U.S. states and their political subdivisions	60,950		492		0		0		60,950		492
Foreign government bonds	108,388		3,083		11,398		812		119,786		3,895
Public utilities	135,788		3,081		17,852		1,317		153,640		4,398
All other U.S. public corporate securities	382,978		9,187		90,933		5,649		473,911		14,836
All other U.S. private corporate securities	332,751		4,299		31,181		1,605		363,932		5,904
All other foreign public corporate securities	101,487		2,748		6,782		725		108,269		3,473
All other foreign private corporate securities	151,956		2,372		64,751		7,978		216,707		10,350
Asset-backed securities	13,376		107		308		4		13,684		111
Commercial mortgage-backed securities	101,300		2,114		90,648		4,983		191,948		7,097
Residential mortgage-backed securities	29,802		643		5,811		268		35,613		911
Total fixed maturities, available-for-sale	$	1,419,400	$	28,136	$	319,664	$	23,341	$	1,739,064	$	51,477

	December 31, 2017
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		0		0		0		0
Foreign government bonds	16,522		210		11,959		286		28,481		496
Public utilities	26,466		380		27,354		678		53,820		1,058
All other U.S. public corporate securities	36,100		304		102,490		2,276		138,590		2,580
All other U.S. private corporate securities	79,495		781		36,642		863		116,137		1,644
All other foreign public corporate securities	27,078		190		8,390		542		35,468		732
All other foreign private corporate securities	48,109		472		133,055		9,126		181,164		9,598
Asset-backed securities	6,351		22		317		4		6,668		26
Commercial mortgage-backed securities	49,823		285		93,403		2,254		143,226		2,539
Residential mortgage-backed securities	8,030		28		6,160		141		14,190		169
Total fixed maturities, available-for-sale	$	297,974	$	2,672	$	419,770	$	16,170	$	717,744	$	18,842

Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2018
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	188,789	$	191,560
Due after one year through five years	738,939		747,181
Due after five years through ten years	1,035,613		1,064,058
Due after ten years	2,581,645		2,694,941
Asset-backed securities	179,037		181,610
Commercial mortgage-backed securities	316,110		311,352
Residential mortgage-backed securities	66,882		67,991
Total fixed maturities, available-for-sale	$	5,107,015	$	5,258,693

Sources of Fixed Maturity Proceeds and Related Investment Gains (Losses) as well as Losses on Impairments

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	16,852		$	287,708
Proceeds from maturities/prepayments	54,310			114,846
Gross investment gains from sales and maturities	144			3,197
Gross investment losses from sales and maturities	(359		)	(2,823		)
OTTI recognized in earnings(2)	(594		)	(4,404		)

(1) Includes $1.8 million and $37.9 million of non-cash related proceeds due to the timing of trade settlements for the three months endedMarch 31, 2018 and 2017, respectively.

(2) Excludes the portion of OTTI amounts remaining in “Other comprehensive income (loss)” ("OCI"), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	4,374		$	5,520
New credit loss impairments	0			0
Additional credit loss impairments on securities previously impaired	0			0
Increases due to the passage of time on previously recorded credit losses	37			27
Reductions for securities which matured, paid down, prepaid or were sold during the period	(42		)	(118		)
Reductions for securities impaired to fair value during the period(1)	0			0
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(25		)	(72		)
Assets transferred to parent and affiliates	0			0
Balance, end of period	$	4,344		$	5,357

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost.

Commercial Mortgage and Other Loans

The following table sets forth the composition of "Commercial mortgage and other loans," as of the dates indicated:

	March 31, 2018					December 31, 2017
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	358,405		31.5	%	$	356,694		32.9	%
Hospitality	16,419			1.4		16,529			1.5
Industrial	230,050			20.2		180,619			16.7
Office	169,762			14.9		159,646			14.7
Other	93,195			8.2		99,119			9.1
Retail	204,271			17.9		205,367			18.9
Total commercial mortgage loans	1,072,102			94.1		1,017,974			93.8
Agricultural property loans	66,927			5.9		67,239			6.2
Total commercial mortgage and agricultural property loans by property type	1,139,029			100.0	%	1,085,213			100.0	%
Valuation allowance	(1,663		)			(1,794		)
Total commercial mortgage and other loans	$	1,137,366				$	1,083,419

Allowance for Losses

The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans			Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,728		$	66	$	1,794
Addition to (release of) allowance for losses	(131		)	0		(131		)
Charge-offs, net of recoveries	0			0		0
Total ending balance	$	1,597		$	66	$	1,663

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Balance, beginning of year	$	1,513	$	45	$	1,558
Addition to (release of) allowance for losses	215		21		236
Charge-offs, net of recoveries	0		0		0
Total ending balance	$	1,728	$	66	$	1,794

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,597		66		1,663
Total ending balance(1)	$	1,597	$	66	$	1,663
Recorded investment(2):
Individually evaluated for impairment	$	0	$	842	$	842
Collectively evaluated for impairment	1,072,102		66,085		1,138,187
Total ending balance(1)	$	1,072,102	$	66,927	$	1,139,029

(1) As of March 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2017
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,728		66		1,794
Total ending balance(1)	$	1,728	$	66	$	1,794
Recorded investment(2):
Individually evaluated for impairment	$	2,316	$	1,153	$	3,469
Collectively evaluated for impairment	1,015,658		66,086		1,081,744
Total ending balance(1)	$	1,017,974	$	67,239	$	1,085,213

(1) As of December 31, 2017, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

Financing Receivable Credit Quality Indicators

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	593,048	$	22,787	$	692	$	616,527
60%-69.99%	347,468		21,689		1,993		371,150
70%-79.99%	123,607		27,513		0		151,120
80% or greater	0		232		0		232
Total loans	$	1,064,123	$	72,221	$	2,685	$	1,139,029

	December 31, 2017
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total Loans
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	606,846	$	21,709	$	705	$	629,260
60%-69.99%	333,185		9,594		2,010		344,789
70%-79.99%	84,492		26,439		0		110,931
80% or greater	0		0		233		233
Total loans	$	1,024,523	$	57,742	$	2,948	$	1,085,213

Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status

The following tables set forth an aging of past due commercial mortgage and other loans, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,072,102	$	0	$	0	$	0	$	1,072,102	$	0
Agricultural property loans	66,927		0		0		0		66,927		0
Total	$	1,139,029	$	0	$	0	$	0	$	1,139,029	$	0

(1) As of March 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,017,974	$	0	$	0	$	0	$	1,017,974	$	0
Agricultural property loans	67,239		0		0		0		67,239		0
Total	$	1,085,213	$	0	$	0	$	0	$	1,085,213	$	0

(1) As of December 31, 2017, there were no loans in this category accruing interest.

(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2018		December 31, 2017
	(in thousands)
Company's investment in separate accounts	$	38,918	$	37,404
LPs/LLCs:
Equity method:
Private equity	138,775		123,957
Hedge funds	53,480		53,066
Real estate-related	10,679		7,040
Subtotal equity method	202,934		184,063
Fair value:
Private equity	54,836		35,686
Hedge funds	778		726
Real estate-related	6,503		5,186
Subtotal fair value(1)	62,117		41,598
Total LPs/LLCs	265,051		225,661
Derivative instruments	448		9
Total other invested assets(2)	$	304,417	$	263,074

(1) As of December 31, 2017, $40.9 million was accounted for under the cost method.

(2) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2.

Net Investment Income

The following table sets forth "Net investment income" by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities, available-for-sale	$	53,260		$	59,067
Fixed maturities, trading	266			179
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,405			13,116
Policy loans	15,904			15,628
Short-term investments and cash equivalents	323			187
Other invested assets	115			6,379
Gross investment income	82,494			94,777
Less: investment expenses	(4,579		)	(5,162		)
Net investment income(1)	$	77,915		$	89,615

(1) Prior period amounts have been reclassified to conform to current period presentation.

Realized Investment Gains (Losses), Net

The following table sets forth "Realized investment gains (losses), net," by investment type, for the periods indicated:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Fixed maturities(1)	$	(809	)	$	(4,030	)
Equity securities(2)	0			(114		)
Commercial mortgage and other loans	131			(139		)
LPs/LLCs	847			(73		)
Derivatives(3)	(49,193		)	(28,217		)
Short-term investments and cash equivalents	(18		)	(6		)
Realized investment gains (losses), net	$	(49,042	)	$	(32,579	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

(2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within "Other income".

(3) Includes the hedged items offset in qualifying fair value hedge accounting relationships.

Unrealized Gains and (Losses) on Investments

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2018			December 31, 2017
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	697		$	1,609
Fixed maturity securities, available-for-sale—all other	150,981			279,749
Equity securities, available-for-sale(1)	0			2,368
Derivatives designated as cash flow hedges(2)	(40,540		)	(17,678		)
Affiliated notes	1,844			4,782
Other investments	2,738			3,588
Net unrealized gains (losses) on investments	$	115,720		$	274,418

(1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within "Other income."

(2) For more information on cash flow hedges, see Note 4.

Schedule of Securities Financing Transactions

The following table sets forth the composition of "Cash collateral for loaned securities," which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	March 31, 2018						December 31, 2017
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	4,887	$	0	$	4,887	$	0	$	22,460	$	22,460
Foreign government bonds	3,003		0		3,003		6,157		0		6,157
U.S. public corporate securities	5,237		0		5,237		4,074		0		4,074
U.S. private corporate securities	0		0		0		0		0		0
Foreign public corporate securities	449		0		449		478		0		478
Total cash collateral for loaned securities(1)	$	13,576	$	0	$	13,576	$	10,709	$	22,460	$	33,169

(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risk, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and non-performance risk ("NPR").

	March 31, 2018							December 31, 2017
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Total Qualifying Hedges	$	693,547	$	14,745	$	(65,682	)	$	649,905	$	18,243	$	(44,806	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,926	$	16,660	$	(2,888	)	$	246,925	$	23,032	$	0
Foreign Currency
Foreign Currency Forwards	19,565		10		(177		)	16,320		0		(376		)
Credit
Credit Default Swaps	756		0		(37		)	1,594		0		(96		)
Currency/Interest Rate
Foreign Currency Swaps	81,493		2,722		(7,205		)	95,145		4,347		(5,600		)
Equity
Equity Options	1,441,893		53,854		(15,143		)	1,277,102		69,472		(23,500		)
Total Non-Qualifying Hedges	$	1,790,633	$	73,246	$	(25,450	)	$	1,637,086	$	96,851	$	(29,572	)
Total Derivatives (1)	$	2,484,180	$	87,991	$	(91,132	)	$	2,286,991	$	115,094	$	(74,378	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

Offsetting Of Financial Assets

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	87,981	$	(87,981	)	$	0	$	0		$	0
Securities purchased under agreements to resell	28,500		0			28,500		(28,500		)	0
Total Assets	$	116,481	$	(87,981	)	$	28,500	$	(28,500	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0

	December 31, 2017
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	115,086	$	(115,086	)	$	0	$	0		$	0
Securities purchased under agreements to resell	148,000		0			148,000		(148,000		)	0
Total Assets	$	263,086	$	(115,086	)	$	148,000	$	(148,000	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Offsetting Of Financial Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	87,981	$	(87,981	)	$	0	$	0		$	0
Securities purchased under agreements to resell	28,500		0			28,500		(28,500		)	0
Total Assets	$	116,481	$	(87,981	)	$	28,500	$	(28,500	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	91,132	$	(87,763	)	$	3,369	$	(3,369	)	$	0

	December 31, 2017
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives (1)	$	115,086	$	(115,086	)	$	0	$	0		$	0
Securities purchased under agreements to resell	148,000		0			148,000		(148,000		)	0
Total Assets	$	263,086	$	(115,086	)	$	148,000	$	(148,000	)	$	0
Offsetting of Financial Liabilities:
Derivatives (1)	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	74,378	$	(69,718	)	$	4,660	$	(245	)	$	4,415

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2018
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,538	$	(664	)	$	(22,862	)
Total qualifying hedges	0			1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,851		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total non-qualifying hedges	(49,193		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

	Three Months Ended March 31, 2017
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI (1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	0		$	1,188	$	(2,421	)	$	(10,261	)
Total qualifying hedges	0			1,188		(2,421		)	(10,261		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	501			0		0			0
Currency	(128		)	0		0			0
Currency/Interest Rate	2,127			0		3			0
Credit	(31		)	0		0			0
Equity	5,921			0		0			0
Embedded Derivatives	(36,607		)	0		0			0
Total non-qualifying hedges	(28,217		)	0		3			0
Total	$	(28,217	)	$	1,188	$	(2,418	)	$	(10,261	)

(1) Amounts deferred in AOCI.

Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2017	$	(17,678	)
Net deferred gains/(losses) on cash flow hedges from January 1 to March 31, 2018	(22,543		)
Amounts reclassified into current period earnings	(319		)
Balance, March 31, 2018	$	(40,540	)

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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	74,322	$	21,569	$	0		$	95,891
Obligations of U.S. states and their political subdivisions	0		617,772		0		0			617,772
Foreign government bonds	0		176,554		166		0			176,720
U.S. corporate public securities	0		1,748,392		677		0			1,749,069
U.S. corporate private securities	0		871,184		57,706		0			928,890
Foreign corporate public securities	0		234,224		0		0			234,224
Foreign corporate private securities	0		880,942		14,232		0			895,174
Asset-backed securities(2)	0		87,126		94,484		0			181,610
Commercial mortgage-backed securities	0		311,159		193		0			311,352
Residential mortgage-backed securities	0		67,795		196		0			67,991
Subtotal	0		5,069,470		189,223		0			5,258,693
Fixed maturities, trading	0		39,650		0		0			39,650
Equity securities	101		27,279		17,039		0			44,419
Short-term investments	0		0		1,194		0			1,194
Other invested assets(3)	0		87,981		10		(87,981		)	10
Reinsurance recoverables	0		0		4,214,114		0			4,214,114
Receivables from parent and affiliates	0		122,827		6,531		0			129,358
Subtotal excluding separate account assets	101		5,347,207		4,428,111		(87,981		)	9,687,438
Separate account assets(4)(5)	0		123,324,538		0		0			123,324,538
Total assets	$	101	$	128,671,745	$	4,428,111	$	(87,981	)	$	133,011,976
Future policy benefits(6)	$	0	$	0	$	4,191,373	$	0		$	4,191,373
Policyholders' account balances	0		0		39,516		0			39,516
Payables to parent and affiliates	0		91,132		0		(87,763		)	3,369
Other liabilities	0		0		15,955		0			15,955
Total liabilities	$	0	$	91,132	$	4,246,844	$	(87,763	)	$	4,250,213

	As of December 31, 2017
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	80,611	$	19,204	$	0		$	99,815
Obligations of U.S. states and their political subdivisions	0		635,458		0		0			635,458
Foreign government bonds	0		134,924		174		0			135,098
U.S. corporate public securities	0		1,779,935		1,154		0			1,781,089
U.S. corporate private securities	0		901,080		60,158		0			961,238
Foreign corporate public securities	0		182,243		209		0			182,452
Foreign corporate private securities	0		837,766		13,900		0			851,666
Asset-backed securities(2)	0		71,400		111,028		0			182,428
Commercial mortgage-backed securities	0		322,832		0		0			322,832
Residential mortgage-backed securities	0		71,226		0		0			71,226
Subtotal	0		5,017,475		205,827		0			5,223,302
Fixed maturities, trading(7)	0		38,793		0		0			38,793
Equity securities(7)	94		22,991		17,525		0			40,610
Short-term investments	0		0		1,339		0			1,339
Cash equivalents	0		28,007		0		0			28,007
Other invested assets(3)(7)	0		115,094		0		(115,086		)	8
Reinsurance recoverables	0		0		5,457,649		0			5,457,649
Receivables from parent and affiliates	0		132,571		0		0			132,571
Subtotal excluding separate account assets	94		5,354,931		5,682,340		(115,086		)	10,922,279
Separate account assets	0		125,543,035		0		0			125,543,035
Total assets	$	94	$	130,897,966	$	5,682,340	$	(115,086	)	$	136,465,314
Future policy benefits(6)	$	0	$	0	$	5,452,583	$	0		$	5,452,583
Policyholders' account balances	0		0		46,651		0			46,651
Payables to parent and affiliates	0		74,378		0		(69,718		)	4,660
Other liabilities	0		0		0		0			0
Total liabilities	$	0	$	74,378	$	5,499,234	$	(69,718	)	$	5,503,894

(1) “Netting” amounts represent cash collateral of $0.2 million and $45.4 million as of March 31, 2018 and December 31, 2017, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2018 and December 31, 2017, the fair values of such investments were $62.1 million and $0.7 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate net asset value per share ("NAV") (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, for which fair value is measured at net asset value per share (or its equivalent). At March 31, 2018 and December 31, 2017, the fair values of such investments were $4,109 million and $4,113 million, respectively.

(6) As of March 31, 2018, the net embedded derivative liability position of $4,191 million includes $931 million of embedded derivatives in an asset position and $5,122 million of embedded derivatives in a liability position. As of December 31, 2017, the net embedded derivative liability position of $5,453 million includes $823 million of embedded derivatives in an asset position and $6,276 million of embedded derivatives in a liability position.

(7) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

Fair Value Inputs, Assets, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	37,491	Discounted cash flow	Discount rate	5.75	%	20	%	8.14	%	Decrease
			Liquidation	Liquidation value	13	%	13	%	13	%	Increase
Reinsurance recoverables	$	4,214,114	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	4,191,373	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.24	%	1.21	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	16	%	24	%			Increase

	As of December 31, 2017
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	36,966	Discounted cash flow	Discount rate	5.06	%	22.23	%	7.33	%	Decrease
			Liquidation	Liquidation value	25	%	25	%	25	%	Increase
Reinsurance recoverables	$	5,457,649	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	5,452,583	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.10	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2018 and December 31, 2017, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value Inputs, Liabilities, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	37,491	Discounted cash flow	Discount rate	5.75	%	20	%	8.14	%	Decrease
			Liquidation	Liquidation value	13	%	13	%	13	%	Increase
Reinsurance recoverables	$	4,214,114	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	4,191,373	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.24	%	1.21	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	16	%	24	%			Increase

	As of December 31, 2017
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	36,966	Discounted cash flow	Discount rate	5.06	%	22.23	%	7.33	%	Decrease
			Liquidation	Liquidation value	25	%	25	%	25	%	Increase
Reinsurance recoverables	$	5,457,649	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(3)	$	5,452,583	Discounted cash flow	Lapse rate(4)	1	%	12	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.10	%			Decrease
				Utilization rate(6)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2018 and December 31, 2017, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.  

	Three Months Ended March 31, 2018
	Fixed Maturities, Available-for-Sale
	U. S. Government		Foreign Government Bonds			Corporate Securities(1)			Structured Securities(2)
	(in thousands)
Fair Value, beginning of period	$	19,204	$	0		$	75,421		$	111,028
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			68			0
Asset administration fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		(8		)	817			105
Net investment income	0		0			51			26
Purchases	2,365		0			1,022			190
Sales	0		0			0			0
Issuances	0		0			0			0
Settlements	0		0			(4,570		)	(3,195		)
Transfers into Level 3(4)	0		0			0			13,513
Transfers out of Level 3(4)	0		0			(209		)	(26,794		)
Other(5)	0		174			15			0
Fair Value, end of period	$	21,569	$	166		$	72,615		$	94,873
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(26	)	$	0
Asset administration fees and other income	$	0	$	0		$	0		$	0

	Three Months Ended March 31, 2018
	Equity Securities			Short-term Investments			Other Invested Assets		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	17,525		$	1,339		$	0	$	5,457,649
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			(18		)	1		(1,462,992		)
Asset administration fees and other income	(486		)	0			0		0
Included in other comprehensive income (loss)	0			0			0		0
Net investment income	0			0			0		0
Purchases	0			3,400			0		219,457
Sales	0			0			0		0
Issuances	0			0			0		0
Settlements	0			(3,513		)	0		0
Transfers into Level 3(4)	0			0			9		0
Transfers out of Level 3(4)	0			0			0		0
Other(5)	0			(14		)	0		0
Fair Value, end of period	$	17,039		$	1,194		$	10	$	4,214,114
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	(18	)	$	2	$	(1,409,320	)
Asset administration fees and other income	$	(486	)	$	0		$	0	$	0

	Three Months Ended March 31, 2018
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	0		$	(5,452,583	)	$	(46,651	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			1,487,555			5,013			(24,780		)
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	(20		)	0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			8,825
Sales	0			0			0			0
Issuances	0			(226,345		)	0			0
Settlements	0			0			2,122			0
Transfers into Level 3(4)	6,551			0			0			0
Transfers out of Level 3(4)	0			0			0			0
Other	0			0			0			0
Fair Value, end of period	$	6,531		$	(4,191,373	)	$	(39,516	)	$	(15,955	)
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	1,433,872		$	5,013		$	(24,780	)
Asset administration fees and other income	$	0		$	0		$	0		$	0

	Three Months Ended March 31, 2017
	Fixed Maturities, Available-for-Sale
	U. S. Government		Corporate Securities(1)			Structured Securities(2)(3)
	(in thousands)
Fair Value, beginning of period	$	0	$	102,556		$	19,856
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		352			0
Asset administration fees and other income	0		0			0
Included in other comprehensive income (loss)	0		453			73
Net investment income	0		3			36
Purchases	25		5,958			4,000
Sales	0		(51,430		)	0
Issuances	0		0			0
Settlements	0		(5,518		)	(129		)
Transfers into Level 3(4)	0		1,814			64,507
Transfers out of Level 3(4)	0		(1,802		)	0
Other(5)	3,570		(3,570		)	0
Fair Value, end of period	$	3,595	$	48,816		$	88,343
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(62	)	$	0
Asset administration fees and other income	$	0	$	0		$	0

	Three Months Ended March 31, 2017
	Equity Securities(3)		Other Invested Assets(3)		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	15,845	$	0	$	5,474,263
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0		11		(610,479		)
Asset administration fees and other income	1,420		0		0
Included in other comprehensive income (loss)	7		0		0
Net investment income	0		0		0
Purchases	0		0		216,595
Sales	0		0		0
Issuances	0		0		0
Settlements	0		0		0
Transfers into Level 3(4)	0		8		0
Transfers out of Level 3(4)	0		0		0
Other	0		0		0
Fair Value, end of period	$	17,272	$	19	$	5,080,379
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	(574,024	)
Asset administration fees and other income	$	1,420	$	0	$	0

	Three Months Ended March 31, 2017
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	6,493		$	(5,041,007	)	$	(20,337	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			623,193			(6,007		)	0
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			0
Sales	0			0			0			0
Issuances	0			(214,741		)	0			0
Settlements	0			0			1,477			0
Transfers into Level 3(4)	0			0			0			0
Transfers out of Level 3(4)	(6,493		)	0			0			0
Other	0			0			0			0
Fair Value, end of period	$	0		$	(4,632,555	)	$	(24,867	)	$	0
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	586,992		$	(6,007	)	$	0
Asset administration fees and other income	$	0		$	0		$	0		$	0

(1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation.

(2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation.

(3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

(4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter.

(5) Other, primarily represents reclassifications of certain assets and liabilities between reporting categories.

(6) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(7) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.  

	Three Months Ended March 31, 2018
	Fixed Maturities, Available-for-Sale
	U. S. Government		Foreign Government Bonds			Corporate Securities(1)			Structured Securities(2)
	(in thousands)
Fair Value, beginning of period	$	19,204	$	0		$	75,421		$	111,028
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			68			0
Asset administration fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		(8		)	817			105
Net investment income	0		0			51			26
Purchases	2,365		0			1,022			190
Sales	0		0			0			0
Issuances	0		0			0			0
Settlements	0		0			(4,570		)	(3,195		)
Transfers into Level 3(4)	0		0			0			13,513
Transfers out of Level 3(4)	0		0			(209		)	(26,794		)
Other(5)	0		174			15			0
Fair Value, end of period	$	21,569	$	166		$	72,615		$	94,873
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(26	)	$	0
Asset administration fees and other income	$	0	$	0		$	0		$	0

	Three Months Ended March 31, 2018
	Equity Securities			Short-term Investments			Other Invested Assets		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	17,525		$	1,339		$	0	$	5,457,649
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			(18		)	1		(1,462,992		)
Asset administration fees and other income	(486		)	0			0		0
Included in other comprehensive income (loss)	0			0			0		0
Net investment income	0			0			0		0
Purchases	0			3,400			0		219,457
Sales	0			0			0		0
Issuances	0			0			0		0
Settlements	0			(3,513		)	0		0
Transfers into Level 3(4)	0			0			9		0
Transfers out of Level 3(4)	0			0			0		0
Other(5)	0			(14		)	0		0
Fair Value, end of period	$	17,039		$	1,194		$	10	$	4,214,114
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	(18	)	$	2	$	(1,409,320	)
Asset administration fees and other income	$	(486	)	$	0		$	0	$	0

	Three Months Ended March 31, 2018
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	0		$	(5,452,583	)	$	(46,651	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			1,487,555			5,013			(24,780		)
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	(20		)	0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			8,825
Sales	0			0			0			0
Issuances	0			(226,345		)	0			0
Settlements	0			0			2,122			0
Transfers into Level 3(4)	6,551			0			0			0
Transfers out of Level 3(4)	0			0			0			0
Other	0			0			0			0
Fair Value, end of period	$	6,531		$	(4,191,373	)	$	(39,516	)	$	(15,955	)
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	1,433,872		$	5,013		$	(24,780	)
Asset administration fees and other income	$	0		$	0		$	0		$	0

	Three Months Ended March 31, 2017
	Fixed Maturities, Available-for-Sale
	U. S. Government		Corporate Securities(1)			Structured Securities(2)(3)
	(in thousands)
Fair Value, beginning of period	$	0	$	102,556		$	19,856
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		352			0
Asset administration fees and other income	0		0			0
Included in other comprehensive income (loss)	0		453			73
Net investment income	0		3			36
Purchases	25		5,958			4,000
Sales	0		(51,430		)	0
Issuances	0		0			0
Settlements	0		(5,518		)	(129		)
Transfers into Level 3(4)	0		1,814			64,507
Transfers out of Level 3(4)	0		(1,802		)	0
Other(5)	3,570		(3,570		)	0
Fair Value, end of period	$	3,595	$	48,816		$	88,343
Unrealized gains (losses) for assets still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	(62	)	$	0
Asset administration fees and other income	$	0	$	0		$	0

	Three Months Ended March 31, 2017
	Equity Securities(3)		Other Invested Assets(3)		Reinsurance Recoverable
	(in thousands)
Fair Value, beginning of period	$	15,845	$	0	$	5,474,263
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0		11		(610,479		)
Asset administration fees and other income	1,420		0		0
Included in other comprehensive income (loss)	7		0		0
Net investment income	0		0		0
Purchases	0		0		216,595
Sales	0		0		0
Issuances	0		0		0
Settlements	0		0		0
Transfers into Level 3(4)	0		8		0
Transfers out of Level 3(4)	0		0		0
Other	0		0		0
Fair Value, end of period	$	17,272	$	19	$	5,080,379
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	(574,024	)
Asset administration fees and other income	$	1,420	$	0	$	0

	Three Months Ended March 31, 2017
	Receivables from parent and affiliates			Future Policy Benefits			Policyholders' Account Balances			Other Liabilities
	(in thousands)
Fair Value, beginning of period	$	6,493		$	(5,041,007	)	$	(20,337	)	$	0
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(7)	0			623,193			(6,007		)	0
Asset administration fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			0			0
Net investment income	0			0			0			0
Purchases	0			0			0			0
Sales	0			0			0			0
Issuances	0			(214,741		)	0			0
Settlements	0			0			1,477			0
Transfers into Level 3(4)	0			0			0			0
Transfers out of Level 3(4)	(6,493		)	0			0			0
Other	0			0			0			0
Fair Value, end of period	$	0		$	(4,632,555	)	$	(24,867	)	$	0
Unrealized gains (losses) for assets/liabilities still held(6):
Included in earnings:
Realized investment gains (losses), net	$	0		$	586,992		$	(6,007	)	$	0
Asset administration fees and other income	$	0		$	0		$	0		$	0

(1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation.

(2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation.

(3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details.

(4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter.

(5) Other, primarily represents reclassifications of certain assets and liabilities between reporting categories.

(6) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(7) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2018
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,150,210	$	1,150,210	$	1,137,366
Policy loans	0		0		1,169,847		1,169,847		1,169,847
Cash and cash equivalents	52,686		28,500		0		81,186		81,186
Accrued investment income	0		83,878		0		83,878		83,878
Receivables from parent and affiliates	0		150,760		0		150,760		150,760
Other assets	0		43,638		0		43,638		43,638
Total assets	$	52,686	$	306,776	$	2,320,057	$	2,679,519	$	2,666,675
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,198,114	$	275,384	$	1,473,498	$	1,480,611
Cash collateral for loaned securities	0		13,576		0		13,576		13,576
Short-term debt to affiliates	0		80		0		80		80
Payables to parent and affiliates	0		236,760		0		236,760		236,760
Other liabilities	0		353,291		0		353,291		353,291
Total liabilities	$	0	$	1,801,821	$	275,384	$	2,077,205	$	2,084,318

	December 31, 2017(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,111,625	$	1,111,625	$	1,083,419
Policy loans	0		0		1,161,101		1,161,101		1,161,101
Cash and cash equivalents	36,562		148,000		0		184,562		184,562
Accrued investment income	0		82,341		0		82,341		82,341
Receivables from parent and affiliates	0		167,545		0		167,545		167,545
Other assets	0		50,407		0		50,407		50,407
Total assets	$	36,562	$	448,293	$	2,272,726	$	2,757,581	$	2,729,375
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,178,583	$	276,435	$	1,455,018	$	1,458,599
Cash collateral for loaned securities	0		33,169		0		33,169		33,169
Payables to parent and affiliates	0		223,550		0		223,550		223,550
Other liabilities	0		362,592		0		362,592		362,592
Total liabilities	$	0	$	1,797,894	$	276,435	$	2,074,329	$	2,077,910

(1) The information presented as of December 31, 2017, excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $49 million and $41 million, respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of March 31, 2018, these assets are excluded from this table but are reported in the fair value recurring measurement table.

(2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2018

Reinsurance Disclosures [Abstract]

Reinsurance Impact on Statements of Financial Position

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Reinsurance recoverables	$	31,696,534		$	32,555,500
Policy loans	(125,587		)	(124,843		)
Deferred policy acquisition costs	(6,968,267		)	(6,832,729		)
Deferred sales inducements	(616,795		)	(638,065		)
Other assets(1)	193,113			205,430
Policyholders’ account balances	5,004,098			5,004,885
Future policy benefits	3,219,983			3,301,841
Other liabilities(2)	587,909			626,306

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2018 and December 31, 2017.

(2) “Other liabilities” includes $42 million and $73 million of unaffiliated activity as of March 31, 2018 and December 31, 2017, respectively.

Reinsurance Recoverable by Counterparty

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2018		December 31, 2017
	(in thousands)
PAR U	$	11,096,056	$	11,111,272
PALAC	7,343,099		8,388,988
PURC	3,700,711		3,577,962
PARCC	2,535,700		2,546,673
GUL Re	1,845,549		1,772,950
PAR Term	1,583,047		1,559,618
Prudential of Taiwan	1,451,312		1,406,686
Term Re	1,053,052		966,509
Prudential Insurance	1,039,039		1,152,241
DART	36,658		0
Unaffiliated	12,311		72,601
Total reinsurance recoverables	$	31,696,534	$	32,555,500

Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss)

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2018			2017
	(in thousands)
Premiums:
Direct		$	441,955		$	417,993
Assumed(1)		60			66
Ceded		(434,100		)	(412,302		)
Net premiums		7,915			5,757
Policy charges and fee income:
Direct		846,723			781,561
Assumed		121,709			116,339
Ceded(2)		(842,536		)	(769,898		)
Net policy charges and fee income		125,896			128,002
Net investment income:
Direct		79,149			90,401
Assumed		373			360
Ceded		(1,607		)	(1,146		)
Net investment income		77,915			89,615
Asset administration fees:
Direct		87,033			80,999
Assumed		0			0
Ceded		(83,560		)	(76,812		)
Net asset administration fees		3,473			4,187
Other income:
Direct		17,253			15,438
Assumed(3)		(90		)	551
Ceded		(52		)	(12		)
Amortization of reinsurance income		2,185			0
Net other income		19,296			15,977
Realized investment gains (losses), net:
Direct		1,474,762			622,126
Assumed		0			0
Ceded(4)		(1,523,804		)	(654,705		)
Realized investment gains (losses), net		(49,042		)	(32,579		)
Policyholders’ benefits (including change in reserves):
Direct		654,638			685,495
Assumed(5)		112,802			129,137
Ceded(6)		(718,485		)	(743,145		)
Net policyholders’ benefits (including change in reserves)		48,955			71,487
Interest credited to policyholders’ account balances:
Direct		124,734			98,917
Assumed		36,517			33,934
Ceded		(120,453		)	(88,091		)
Net interest credited to policyholders’ account balances		40,798			44,760
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(433,912		)	(362,236		)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months endedMarch 31, 2018 and 2017.

(2) "Policy charges and fee income ceded" includes $(2) million and $(0.7) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(3) "Other income assumed" includes $(0.1) million and $0.6 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(4) “Realized investment gains (losses), net ceded” includes $(38) million and $(8) million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(5) "Policyholders' benefits (including change in reserves) assumed" includes $(0.1) million and $0.4 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

(6) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million and $3 million of unaffiliated activity for the three months endedMarch 31, 2018 and 2017, respectively.

Gross and Net Life Insurance in Force

The gross and net amounts of life insurance face amount in force as of March 31, 2018 and 2017 were as follows:

	2018			2017
	(in thousands)
Direct gross life insurance face amount in force	$	893,787,108		$	840,190,324
Assumed gross life insurance face amount in force	41,584,568			42,499,716
Reinsurance ceded	(864,942,222		)	(817,213,475		)
Net life insurance face amount in force	$	70,429,454		$	65,476,565

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Equity (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the three months endedMarch 31, 2018 and 2017, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	0		$	165,346
Change in OCI before reclassifications	(923		)	(145,519		)	(22		)	(146,464		)
Amounts reclassified from AOCI	0			490			0			490
Income tax benefit (expense)	194			30,501			5			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	0			(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			0			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,962		$	(17	)	$	78,932

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustments			Net Unrealized Investment Gains (Losses)(1)			Pension Unrecognized Net Periodic Benefit (Cost)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2016	$	(402	)	$	71,377		$	0	$	70,975
Change in OCI before reclassifications	23			23,059			0		23,082
Amounts reclassified from AOCI	0			4,144			0		4,144
Income tax benefit (expense)	(8		)	(9,521		)	0		(9,529		)
Balance, March 31, 2017	$	(387	)	$	89,059		$	0	$	88,672

(1) Includes cash flow hedges of $(41) million and $(18) million as of March 31, 2018 and December 31, 2017, respectively, and $31 million and $41 million as of March 31, 2017 and December 31, 2016, respectively.

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	319		$	3,133
Net unrealized investment gains (losses) on available-for-sale securities(4)	(809		)	(7,277		)
Total net unrealized investment gains (losses)	(490		)	(4,144		)
Total reclassifications for the period	$	(490	)	$	(4,144	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits and policyholders’ account balances. 

OTTI Net Unrealized Investment Gains (Losses) AOCI Rollforward

The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	1,609		$	(99	)	$	22		$	(682	)	$	850
Net investment gains (losses) on investments arising during the period	(776		)	0			0			163			(613		)
Reclassification adjustment for (gains) losses included in net income	(136		)	0			0			29			(107		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			6			0			(1		)	5
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			(13		)	3			(10		)
Balance, March 31, 2018	$	697		$	(93	)	$	9		$	(488	)	$	125

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(1)			Deferred Policy Acquisition Costs and Other Costs			Future Policy Benefits and Policyholders' Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2017	$	272,809		$	1,832		$	(28,998	)	$	(80,913	)	$	164,730
Net investment gains (losses) on investments arising during the period	(156,044		)	0			0			32,818			(123,226		)
Reclassification adjustment for (gains) losses included in net income	626			0			0			(132		)	494
Reclassification adjustment for OTTI (gains) losses excluded from net income(2)	0			0			0			0			0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			(29,720		)	0			6,250			(23,470		)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0			0			41,028			(8,629		)	32,399
Cumulative effect of adoption of ASU 2016-01	(2,368		)	0			0			829			(1,539		)
Cumulative effect of adoption of ASU 2018-02	0			0			0			30,449			30,449
Balance, March 31, 2018	$	115,023		$	(27,888	)	$	12,030		$	(19,328	)	$	79,837

(1) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2018 and December 31, 2017 were as follows:

	Maturity Dates			Interest Rates				March 31, 2018		December 31, 2017
								(in thousands)
U.S. Dollar floating rate notes			2028	3.13%	-	3.74	%	$	6,531	$	6,551
U.S. Dollar fixed rate notes	2022	-	2027	0.00%	-	14.85	%	122,828		126,020
Total long-term notes receivable - affiliated(1)								$	129,359	$	132,571

(1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

Affiliated Asset Transfers

The table below shows affiliated asset trades for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)		Realized Investment Gain/(Loss)
				(in thousands)
PALAC	January 2017	Purchase	Fixed Maturities & Short-Term Investments	$	29	$	29	$	0	$	0
Prudential Insurance	June 2017	Sale	Fixed Maturities & Short-Term Investments	$	16,965	$	16,515	$	293	$	0
Prudential Insurance	June 2017	Sale	Commercial Mortgages	$	43,198	$	42,301	$	584	$	0
UPARC	September 2017	Transfer In	Other Invested Assets	$	37,354	$	37,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Other Invested Assets	$	72,354	$	72,354	$	0	$	0
GUL Re	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	1,254,457	$	1,195,697	$	0	$	58,760
Prudential Financial	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
Prudential Financial	September 2017	Transfer Out	Fixed Maturities & Short-Term Investments	$	415,271	$	376,412	$	25,259	$	0
UPARC	September 2017	Transfer In	Fixed Maturities & Short-Term Investments	$	417,067	$	385,459	$	0	$	31,608
UPARC	September 2017	Transfer In	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
GUL Re	September 2017	Transfer Out	Trading Account Assets	$	6,225	$	5,002	$	0	$	1,223
UPARC	September 2017	Purchase	Other Invested Assets - Derivatives	$	20,685	$	20,685	$	0	$	0
UPARC	November 2017	Purchase	Fixed Maturities & Short-Term Investments	$	41,250	$	34,332	$	0	$	6,919
Prudential Insurance	December 2017	Sale	Commercial Mortgages	$	106,199	$	105,191	$	655	$	0
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0	$	0

Debt Agreements

The following table provides the breakout of the Company's short-term and long-term debt with affiliates for the three months ended March 31, 2018 and for the year ended December 31, 2017.

Affiliate	Date Issued	Amount of Notes - March 31, 2018		Amount of Notes - December 31, 2017		Interest Rate		Date of Maturity
		(in thousands)
Prudential Funding, LLC	3/29/2018	$	80	$	0	1.77	%	4/2/2018
Total Loans Payable to Affiliates		$	80	$	0

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Business and Basis of Presentation (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018 subsidiary
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of subsidiaries	2

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Significant Accounting Policies and Pronouncements (Changes to the presentation within the Consolidated Statement of Financial Position) (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fixed maturities, available-for-sale		$ 5,258,693		$ 5,223,302
Fixed maturities, trading, at fair value	[1]	39,650		38,793
Equity securities, available for sale, at fair value				0
Equity securities, at fair value				40,610
Trading account assets, at fair value				0
Policy loans		1,169,847		1,161,101
Short-term investments		1,194		1,339
Commercial mortgage and other loans		1,137,366		1,083,419
Other Long-term Investments				0
Other invested assets	[1]	304,417		263,074
Total investments		$ 7,955,586		7,811,638
As previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fixed maturities, available-for-sale				5,223,302
Fixed maturities, trading, at fair value				0
Equity securities, available for sale, at fair value				23,122
Equity securities, at fair value				0
Trading account assets, at fair value				56,281
Policy loans				1,161,101
Short-term investments				1,339
Commercial mortgage and other loans				1,083,419
Other Long-term Investments				263,074
Other invested assets				0
Total investments				7,811,638
Reclassification (1) | ASU 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities, available for sale, at fair value				(23,122)
Equity securities, at fair value				23,122
Other invested assets			$ 8,097
Total investments				0
Reclassification (2) | ASU 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fixed maturities, trading, at fair value				38,793
Equity securities, at fair value				17,488
Trading account assets, at fair value				(56,281)
Total investments				0
Reclassification (3) | ASU 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Long-term Investments				(263,074)
Other invested assets				263,074
Total investments				$ 0

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

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Significant Accounting Policies and Pronouncements (Cumulative-effect Adjustment Upon Adoption) (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other invested assets	[1]	$ 304,417		$ 263,074
Total assets		169,396,445		172,459,576
Income taxes		786		32,440
Total liabilities		166,669,070		169,638,940
Accumulated other comprehensive income (loss)		78,932		165,346
Retained earnings		1,499,351		1,511,698
Total liabilities and equity		$ 169,396,445		$ 172,459,576
ASU 2016-01 | Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other invested assets			$ 8,097
Total assets			8,097
Income taxes			1,700
Total liabilities			1,700
Accumulated other comprehensive income (loss)			(1,539)
Retained earnings			7,936
Total equity			6,397
Total liabilities and equity			$ 8,097

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

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Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive income	$ 78,932	$ 165,346
ASU 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive income	30,400
Retained earnings	$ (30,400)

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Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 5,107,015	$ 4,941,944
Fair Value	5,258,693	5,223,302
Fixed maturities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,107,015	4,941,944
Gross Unrealized Gains	203,155	300,200
Gross Unrealized Losses	51,477	18,842
Fair Value	5,258,693	5,223,302
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	92,948	95,851
Gross Unrealized Gains	2,953	3,964
Gross Unrealized Losses	10	0
Fair Value	95,891	99,815
Fixed maturities | Obligations of U.S. states and their political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	597,016	597,254
Gross Unrealized Gains	21,248	38,204
Gross Unrealized Losses	492	0
Fair Value	617,772	635,458
Fixed maturities | Foreign government bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	177,188	128,058
Gross Unrealized Gains	3,427	7,536
Gross Unrealized Losses	3,895	496
Fair Value	176,720	135,098
Fixed maturities | Public utilities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	688,996	677,702
Gross Unrealized Gains	42,907	61,588
Gross Unrealized Losses	4,398	1,058
Fair Value	727,505	738,232
Fixed maturities | Redeemable preferred stock
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,074	4,053
Gross Unrealized Gains	773	957
Gross Unrealized Losses	0	0
Fair Value	4,847	5,010
Fixed maturities | All other U.S. public corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,282,335	1,254,140
Gross Unrealized Gains	62,496	105,524
Gross Unrealized Losses	14,836	2,580
Fair Value	1,329,995	1,357,084
Fixed maturities | All other U.S. private corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	694,522	710,424
Gross Unrealized Gains	11,121	18,306
Gross Unrealized Losses	5,904	1,644
Fair Value	699,739	727,086
Fixed maturities | All other foreign public corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	227,906	168,399
Gross Unrealized Gains	7,573	12,522
Gross Unrealized Losses	3,473	732
Fair Value	232,006	180,189
Fixed maturities | All other foreign private corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	780,001	737,037
Gross Unrealized Gains	43,614	41,405
Gross Unrealized Losses	10,350	9,598
Fair Value	813,265	768,844
Fixed maturities | Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	179,037	179,935
Gross Unrealized Gains	2,684	2,519
Gross Unrealized Losses	111	26
Fair Value	181,610	182,428
Fixed maturities | Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	316,110	320,223
Gross Unrealized Gains	2,339	5,148
Gross Unrealized Losses	7,097	2,539
Fair Value	311,352	322,832
Fixed maturities | Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	66,882	68,868
Gross Unrealized Gains	2,020	2,527
Gross Unrealized Losses	911	169
Fair Value	67,991	71,226
OTTI | Fixed maturities
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	1,200	2,200
OTTI in AOCI, available-for-sale	(550)	(573)
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Foreign government bonds
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Public utilities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Redeemable preferred stock
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | All other U.S. public corporate securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	(215)	(215)
OTTI | Fixed maturities | All other U.S. private corporate securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | All other foreign public corporate securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | All other foreign private corporate securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	(132)	(138)
OTTI | Fixed maturities | Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	0	0
OTTI | Fixed maturities | Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
OTTI in AOCI, available-for-sale	$ (203)	$ (220)

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Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	$ 1,419,400	$ 297,974
Less than twelve Months, Gross Unrealized Losses	28,136	2,672
Twelve months or more, Fair Value	319,664	419,770
Twelve months or more, Gross Unrealized Losses	23,341	16,170
Total, Fair Value	1,739,064	717,744
Total, Gross Unrealized Losses	51,477	18,842
US Treasury securities and obligations of U.S. government authorities and agencies
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	624	0
Less than twelve Months, Gross Unrealized Losses	10	0
Twelve months or more, Fair Value	0	0
Twelve months or more, Gross Unrealized Losses	0	0
Total, Fair Value	624	0
Total, Gross Unrealized Losses	10	0
Obligations of U.S. states and their political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	60,950	0
Less than twelve Months, Gross Unrealized Losses	492	0
Twelve months or more, Fair Value	0	0
Twelve months or more, Gross Unrealized Losses	0	0
Total, Fair Value	60,950	0
Total, Gross Unrealized Losses	492	0
Foreign government bonds
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	108,388	16,522
Less than twelve Months, Gross Unrealized Losses	3,083	210
Twelve months or more, Fair Value	11,398	11,959
Twelve months or more, Gross Unrealized Losses	812	286
Total, Fair Value	119,786	28,481
Total, Gross Unrealized Losses	3,895	496
Public utilities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	135,788	26,466
Less than twelve Months, Gross Unrealized Losses	3,081	380
Twelve months or more, Fair Value	17,852	27,354
Twelve months or more, Gross Unrealized Losses	1,317	678
Total, Fair Value	153,640	53,820
Total, Gross Unrealized Losses	4,398	1,058
All other U.S. public corporate securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	382,978	36,100
Less than twelve Months, Gross Unrealized Losses	9,187	304
Twelve months or more, Fair Value	90,933	102,490
Twelve months or more, Gross Unrealized Losses	5,649	2,276
Total, Fair Value	473,911	138,590
Total, Gross Unrealized Losses	14,836	2,580
All other U.S. private corporate securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	332,751	79,495
Less than twelve Months, Gross Unrealized Losses	4,299	781
Twelve months or more, Fair Value	31,181	36,642
Twelve months or more, Gross Unrealized Losses	1,605	863
Total, Fair Value	363,932	116,137
Total, Gross Unrealized Losses	5,904	1,644
All other foreign public corporate securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	101,487	27,078
Less than twelve Months, Gross Unrealized Losses	2,748	190
Twelve months or more, Fair Value	6,782	8,390
Twelve months or more, Gross Unrealized Losses	725	542
Total, Fair Value	108,269	35,468
Total, Gross Unrealized Losses	3,473	732
All other foreign private corporate securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	151,956	48,109
Less than twelve Months, Gross Unrealized Losses	2,372	472
Twelve months or more, Fair Value	64,751	133,055
Twelve months or more, Gross Unrealized Losses	7,978	9,126
Total, Fair Value	216,707	181,164
Total, Gross Unrealized Losses	10,350	9,598
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	13,376	6,351
Less than twelve Months, Gross Unrealized Losses	107	22
Twelve months or more, Fair Value	308	317
Twelve months or more, Gross Unrealized Losses	4	4
Total, Fair Value	13,684	6,668
Total, Gross Unrealized Losses	111	26
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	101,300	49,823
Less than twelve Months, Gross Unrealized Losses	2,114	285
Twelve months or more, Fair Value	90,648	93,403
Twelve months or more, Gross Unrealized Losses	4,983	2,254
Total, Fair Value	191,948	143,226
Total, Gross Unrealized Losses	7,097	2,539
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than twelve months, Fair Value	29,802	8,030
Less than twelve Months, Gross Unrealized Losses	643	28
Twelve months or more, Fair Value	5,811	6,160
Twelve months or more, Gross Unrealized Losses	268	141
Total, Fair Value	35,613	14,190
Total, Gross Unrealized Losses	$ 911	$ 169

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Investments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investment [Line Items]
Securities sold under agreements to repurchase	$ 0		$ 0
Commercial mortgage loans, Percentage	100.00%		100.00%
Commercial mortgage and other loans, Acquired	$ 0	$ 0
Commercial mortgage and other loans, Sold	0	0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	0	0
Troubled debt restructuring, Commitment to borrowers	0		$ 0
Corporate securities
Investment [Line Items]
Gross unrealized losses of twelve months or more concentrated in various sectors	$ 23,300,000		16,200,000
California
Investment [Line Items]
Commercial mortgage loans, Percentage	23.00%
Texas
Investment [Line Items]
Commercial mortgage loans, Percentage	14.00%
New York
Investment [Line Items]
Commercial mortgage loans, Percentage	6.00%
Europe
Investment [Line Items]
Commercial mortgage loans, Percentage	5.00%
Australia
Investment [Line Items]
Commercial mortgage loans, Percentage	4.00%
Mexico
Investment [Line Items]
Commercial mortgage loans, Percentage	2.00%
Fixed maturities
Investment [Line Items]
Gross unrealized losses	$ 51,477,000		18,842,000
Gross unrealized losses of twelve months or more concentrated in various sectors	23,341,000		16,170,000
Fixed maturities | NAIC high or highest quality rating
Investment [Line Items]
Gross unrealized losses	44,700,000		13,900,000
Fixed maturities | NAIC other than high or highest quality rating
Investment [Line Items]
Gross unrealized losses	6,800,000		$ 4,900,000
Other Income | Equity securities
Investment [Line Items]
Unrealized Gain (Loss) on Investments	$ (1,200,000)	$ 1,400,000

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Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amortized Cost
Due in one year or less	$ 188,789
Due after one year through five years	738,939
Due after five years through ten years	1,035,613
Due after ten years	2,581,645
Amortized Cost	5,107,015	$ 4,941,944
Fair Value
Due in one year or less	191,560
Due after one year through five years	747,181
Due after five years through ten years	1,064,058
Due after ten years	2,694,941
Fair Value	5,258,693	$ 5,223,302
Asset-backed securities
Amortized Cost
Debt Maturities, without single maturity date	179,037
Fair Value
Debt Maturities, without Single Maturity Date	181,610
Commercial mortgage-backed securities
Amortized Cost
Debt Maturities, without single maturity date	316,110
Fair Value
Debt Maturities, without Single Maturity Date	311,352
Residential mortgage-backed securities
Amortized Cost
Debt Maturities, without single maturity date	66,882
Fair Value
Debt Maturities, without Single Maturity Date	$ 67,991

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Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Proceeds from maturities/prepayments	$ 69,410	$ 364,657
Fixed maturities | Available-for-sale
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales	16,852	287,708
Proceeds from maturities/prepayments	54,310	114,846
Gross investment gains from sales and maturities	144	3,197
Gross investment losses from sales and maturities	(359)	(2,823)
OTTI recognized in earnings	(594)	(4,404)
Other Noncash Income (Expense)	$ 1,800	$ 37,900

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Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	$ 4,374	$ 5,520
New credit loss impairments	0	0
Additional credit losses on securities previously impaired	0	0
Increases due to the passage of time on previously recorded credit losses	37	27
Reductions for securities which matured, paid down, prepaid, or were sold	(42)	(118)
Reductions for securities impaired to fair value during the period	0	0
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(25)	(72)
Assets transferred to parent and affiliates	0	0
Balance, end of period	$ 4,344	$ 5,357

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Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 1,139,029	$ 1,085,213
% of Total	100.00%	100.00%
Valuation allowance	$ (1,663)	$ (1,794)
Total commercial mortgage and other loans	1,137,366	1,083,419
Apartments and multi-family
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 358,405	$ 356,694
% of Total	31.50%	32.90%
Hospitality
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 16,419	$ 16,529
% of Total	1.40%	1.50%
Industrial
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 230,050	$ 180,619
% of Total	20.20%	16.70%
Office
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 169,762	$ 159,646
% of Total	14.90%	14.70%
Other
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 93,195	$ 99,119
% of Total	8.20%	9.10%
Retail
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 204,271
% of Total	17.90%	18.90%
Commercial mortgage loans
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 1,072,102	$ 1,017,974
% of Total	94.10%	93.80%
Agricultural property loans
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 66,927	$ 67,239
% of Total	5.90%	6.20%

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Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	$ 1,794	$ 1,558
Addition to (release of) allowance for losses	(131)	236
Charge-offs, net of recoveries	0	0
Total ending balance	1,663	1,794
Commercial Mortgage Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	1,728	1,513
Addition to (release of) allowance for losses	(131)	215
Charge-offs, net of recoveries	0	0
Total ending balance	1,597	1,728
Agricultural Property Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	66	45
Addition to (release of) allowance for losses	0	21
Charge-offs, net of recoveries	0	0
Total ending balance	$ 66	$ 66

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Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for credit losses:
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	1,663	1,794
Total ending balance	1,663	1,794	$ 1,558
Recorded investment:
Individually evaluated for impairment	842	3,469
Collectively evaluated for impairment	1,138,187	1,081,744
Total ending balance	1,139,029	1,085,213
Commercial Mortgage Loans
Allowance for credit losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,597	1,728
Total ending balance	1,597	1,728	1,513
Recorded investment:
Individually evaluated for impairment	0	2,316
Collectively evaluated for impairment	1,072,102	1,015,658
Total ending balance	1,072,102	1,017,974
Agricultural Property Loans
Allowance for credit losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	66	66
Total ending balance	66	66	$ 45
Recorded investment:
Individually evaluated for impairment	842	1,153
Collectively evaluated for impairment	66,085	66,086
Total ending balance	66,927	67,239
Receivables Acquired with Deteriorated Credit Quality [Member]
Recorded investment:
Financing Receivable Total	$ 0	$ 0

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Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	$ 1,139,029	$ 1,085,213
0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	616,527	629,260
60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	371,150	344,789
70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	151,120	110,931
80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	232	233
≥ 1.2X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	1,064,123	1,024,523
≥ 1.2X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	593,048	606,846
≥ 1.2X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	347,468	333,185
≥ 1.2X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	123,607	84,492
≥ 1.2X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	0
1.0X to 1.2X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	72,221	57,742
1.0X to 1.2X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	22,787	21,709
1.0X to 1.2X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	21,689	9,594
1.0X to 1.2X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	27,513	26,439
1.0X to 1.2X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	232	0
Less than 1.0X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	2,685	2,948
Less than 1.0X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	692	705
Less than 1.0X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	1,993	2,010
Less than 1.0X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	0
Less than 1.0X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	$ 0	$ 233

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Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,139,029	$ 1,085,213
Total Loans	1,139,029	1,085,213
Non-Accrual Status	0	0
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,072,102	1,017,974
Total Loans	1,072,102	1,017,974
Non-Accrual Status	0	0
Commercial mortgage loans | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans | 90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	66,927	67,239
Total Loans	66,927	67,239
Non-Accrual Status	0	0
Agricultural property loans | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans | 90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	$ 0	$ 0

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Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Other Invested Assets [Line Items]
Other invested assets	[1]	$ 304,417	$ 263,074
Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		265,051	225,661
Company's investment in separate accounts
Other Invested Assets [Line Items]
Other invested assets		38,918	37,404
Derivatives
Other Invested Assets [Line Items]
Other invested assets		448	9
Equity Method Investments | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		202,934	184,063
Equity Method Investments | Private equity | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		138,775	123,957
Equity Method Investments | Hedge funds | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		53,480	53,066
Equity Method Investments | Real estate-related | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		10,679	7,040
Cost-method Investments
Other Invested Assets [Line Items]
Other invested assets			40,900
Fair Value | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		62,117	41,598
Fair Value | Private equity | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		54,836	35,686
Fair Value | Hedge funds | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		778	726
Fair Value | Real estate-related | Total LPS/LLCS
Other Invested Assets [Line Items]
Other invested assets		$ 6,503	$ 5,186

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

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Investments (Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 82,494	$ 94,777
Less: investment expenses	(4,579)	(5,162)
Net investment income	77,915	89,615
Equity securities, at fair value
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	221	221
Commercial mortgage and other loans
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	12,405	13,116
Policy loans
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	15,904	15,628
Short-term investments and cash equivalents
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	323	187
Other invested assets
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	115	6,379
Available-for-sale | Fixed maturities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	53,260	59,067
Trading | Fixed maturities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 266	$ 179

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Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	$ (49,042)	$ (32,579)
Fixed maturities
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	(809)	(4,030)
Equity securities
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	0	(114)
Commercial mortgage and other loans
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	131	(139)
LPS/LLCS
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	847	(73)
Derivatives
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	(49,193)	(28,217)
Short-term investments and cash equivalents
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	$ (18)	$ (6)

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Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	$ 115,720	$ 274,418
Fixed maturities | Available-for-sale | OTTI
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	697	1,609
Fixed maturities | Available-for-sale | All other
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	150,981	279,749
Equity securities | Available-for-sale
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	0	2,368
Derivatives designated as cash flow hedges
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	(40,540)	(17,678)
Affiliated notes
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	1,844	4,782
Other investments
Gain (Loss) on Investments [Line Items]
Net Unrealized Gains (Losses) on Investments	$ 2,738	$ 3,588

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Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	$ 13,576	$ 33,169
30 days or greater
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	13,576	10,709
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	22,460
US Treasury securities and obligations of U.S. government authorities and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	4,887	22,460
US Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	4,887	0
US Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	22,460
Foreign government bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	3,003	6,157
Foreign government bonds | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	3,003	6,157
Foreign government bonds | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
U.S. corporate public securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	5,237	4,074
U.S. corporate public securities | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	5,237	4,074
U.S. corporate public securities | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
US private corporate securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
US private corporate securities | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
US private corporate securities | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
Foreign corporate public securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	449	478
Foreign corporate public securities | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	449	478
Foreign corporate public securities | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	$ 0	$ 0

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Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Notional	$ 2,484,180	$ 2,286,991
Assets	87,991	115,094
Liabilities	(91,132)	(74,378)
Derivatives Designated as Hedge Accounting Instruments:
Derivative [Line Items]
Notional	693,547	649,905
Assets	14,745	18,243
Liabilities	(65,682)	(44,806)
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps
Derivative [Line Items]
Notional	693,547	649,905
Assets	14,745	18,243
Liabilities	(65,682)	(44,806)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Derivative [Line Items]
Notional	1,790,633	1,637,086
Assets	73,246	96,851
Liabilities	(25,450)	(29,572)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps
Derivative [Line Items]
Notional	246,926	246,925
Assets	16,660	23,032
Liabilities	(2,888)	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards
Derivative [Line Items]
Notional	19,565	16,320
Assets	10	0
Liabilities	(177)	(376)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps
Derivative [Line Items]
Notional	756	1,594
Assets	0	0
Liabilities	(37)	(96)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps
Derivative [Line Items]
Notional	81,493	95,145
Assets	2,722	4,347
Liabilities	(7,205)	(5,600)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options
Derivative [Line Items]
Notional	1,441,893	1,277,102
Assets	53,854	69,472
Liabilities	$ (15,143)	$ (23,500)

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Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivatives Assets
Gross Amounts of Recognized Financial Instruments	$ 87,981	$ 115,086
Gross Amounts Offset in the Consolidated Statement of Financial Position	(87,981)	(115,086)
Net Amounts Presented in the Consolidated Statement of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	0	0
Securities Purchased under Agreements to Resell
Gross Amounts of Recognized Financial Instruments	28,500	148,000
Gross Amounts Offset in the Consolidated Statement of Financial Position	0	0
Net Amounts Presented in the Consolidated Statement of Financial Position	28,500	148,000
Financial Instruments/Collateral	(28,500)	(148,000)
Net Amount	0	0
Total Assets
Gross Amounts of Recognized Financial Instruments	116,481	263,086
Gross Amounts Offset in the Consolidated Statement of Financial Position	(87,981)	(115,086)
Net Amounts Presented in the Consolidated Statement of Financial Position	28,500	148,000
Financial Instruments/Collateral	(28,500)	(148,000)
Net Amount	0	0
Derivatives Liabilities
Gross Amounts of Recognized Financial Instruments	91,132	74,378
Gross Amounts Offset in the Consolidated Statement of Financial Position	(87,763)	(69,718)
Net Amounts Presented in the Consolidated Statement of Financial Position	3,369	4,660
Financial Instruments/Collateral	(3,369)	(245)
Net Amount	0	4,415
Securities Sold under Agreements to Repurchase
Gross Amounts of Recognized Financial Instruments	0	0
Gross Amounts Offset in the Consolidated Statement of Financial Position	0	0
Net Amounts Presented in the Consolidated Statement of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	0	0
Total Liabilities
Gross Amounts of Recognized Financial Instruments	91,132	74,378
Gross Amounts Offset in the Consolidated Statement of Financial Position	(87,763)	(69,718)
Net Amounts Presented in the Consolidated Statement of Financial Position	3,369	4,660
Financial Instruments/Collateral	(3,369)	(245)
Net Amount	$ 0	$ 4,415

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Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	$ (49,193)	$ (28,217)
Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1,538	1,188
Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(687)	(2,418)
AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(22,862)	(10,261)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1,538	1,188
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(664)	(2,421)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(22,862)	(10,261)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1,538	1,188
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(664)	(2,421)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(22,862)	(10,261)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(49,193)	(28,217)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(23)	3
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(9,401)	501
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(556)	(128)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(3,851)	2,127
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(23)	3
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(1)	(31)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(4,757)	5,921
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(30,627)	(36,607)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	$ 0	$ 0

XML

Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - Cash flow hedgers in AOCI $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Balance, beginning	$ (17,678)
Net deferred gains/(losses) on cash flow hedges from January 1 to March 31, 2018	(22,543)
Amounts reclassified into current period earnings	(319)
Balance, ending	$ (40,540)

XML

Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ 6.0
Maximum length of time hedged in cash flow hedge	40 years
Credit Protection Purchased Notional Amounts	$ 1.0	$ 2.0
Credit Derivative Protection Purchased Fair Value Asset (Liability)	0.0	(0.1)
Future Policy Benefits
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	(4,191.0)	(5,453.0)
Reinsurance Recoverables
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	4,198.0	5,458.0
Reinsurance Recoverables | PALAC and Prudential Insurance
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	4,214.0	5,445.0
Reinsurance Recoverables | Union Hamilton Reinsurance, Ltd.
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	(16.0)	13.0
Policyholders' account balances
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	$ (40.0)	$ (47.0)

XML

Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		$ 5,258,693	$ 5,223,302
Fixed maturities, trading, at fair value	[1]	39,650	38,793
Equity securities, at fair value	[1]	44,419	40,610
Other invested assets	[1]	304,417	263,074
Reinsurance recoverables		31,696,534	32,555,500
Receivables from parent and affiliates		280,118	300,116
Separate account assets		127,433,522	129,655,734
TOTAL ASSETS		169,396,445	172,459,576
Future policy benefits		17,431,953	18,593,130
Payables to parent and affiliates		240,129	228,210
Other Liabilities		1,013,952	1,060,123
TOTAL LIABILITIES		166,669,070	169,638,940
Future Policy Benefits
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability		4,191,000	5,453,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset		931,000	823,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability		5,122,000	6,276,000
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		5,258,693	5,223,302
Fixed maturities, trading, at fair value		39,650	38,793
Equity securities, at fair value		44,419	40,610
Short-term investments		1,194	1,339
Cash equivalents			28,007
Other invested assets		10	8
Reinsurance recoverables		4,214,114	5,457,649
Receivables from parent and affiliates		129,358	132,571
Subtotal excluding separate account assets		9,687,438	10,922,279
Separate account assets		123,324,538	125,543,035
TOTAL ASSETS		133,011,976	136,465,314
Future policy benefits		4,191,373	5,452,583
Policyholders’ account balances		39,516	46,651
Payables to parent and affiliates		3,369	4,660
Other Liabilities		15,955	0
TOTAL LIABILITIES		4,250,213	5,503,894
Asset Netting		(87,981)	(115,086)
Liability Netting		(87,763)	(69,718)
Netting		200	45,400
Fair Value, Measurements, Recurring | Other invested assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset Netting		(87,981)	(115,086)
Fair Value, Measurements, Recurring | Payables to parent and affiliates
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liability Netting		(87,763)	(69,718)
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		95,891	99,815
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		617,772	635,458
Fair Value, Measurements, Recurring | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		176,720	135,098
Fair Value, Measurements, Recurring | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		1,749,069	1,781,089
Fair Value, Measurements, Recurring | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		928,890	961,238
Fair Value, Measurements, Recurring | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		234,224	182,452
Fair Value, Measurements, Recurring | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		895,174	851,666
Fair Value, Measurements, Recurring | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		181,610	182,428
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		311,352	322,832
Fair Value, Measurements, Recurring | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		67,991	71,226
Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fixed maturities, trading, at fair value		0	0
Equity securities, at fair value		101	94
Short-term investments		0	0
Cash equivalents			0
Other invested assets		0	0
Reinsurance recoverables		0	0
Receivables from parent and affiliates		0	0
Subtotal excluding separate account assets		101	94
Separate account assets		0	0
TOTAL ASSETS		101	94
Future policy benefits		0	0
Policyholders’ account balances		0	0
Payables to parent and affiliates		0	0
Other Liabilities		0	0
TOTAL LIABILITIES		0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		5,069,470	5,017,475
Fixed maturities, trading, at fair value		39,650	38,793
Equity securities, at fair value		27,279	22,991
Short-term investments		0	0
Cash equivalents			28,007
Other invested assets		87,981	115,094
Reinsurance recoverables		0	0
Receivables from parent and affiliates		122,827	132,571
Subtotal excluding separate account assets		5,347,207	5,354,931
Separate account assets		123,324,538	125,543,035
TOTAL ASSETS		128,671,745	130,897,966
Future policy benefits		0	0
Policyholders’ account balances		0	0
Payables to parent and affiliates		91,132	74,378
Other Liabilities		0	0
TOTAL LIABILITIES		91,132	74,378
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		74,322	80,611
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		617,772	635,458
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		176,554	134,924
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		1,748,392	1,779,935
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		871,184	901,080
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		234,224	182,243
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		880,942	837,766
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		87,126	71,400
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		311,159	322,832
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		67,795	71,226
Fair Value, Measurements, Recurring | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		189,223	205,827
Fixed maturities, trading, at fair value		0	0
Equity securities, at fair value		17,039	17,525
Short-term investments		1,194	1,339
Cash equivalents			0
Other invested assets		10	0
Reinsurance recoverables		4,214,114	5,457,649
Receivables from parent and affiliates		6,531	0
Subtotal excluding separate account assets		4,428,111	5,682,340
Separate account assets		0	0
TOTAL ASSETS		4,428,111	5,682,340
Future policy benefits		4,191,373	5,452,583
Policyholders’ account balances		39,516	46,651
Payables to parent and affiliates		0	0
Other Liabilities		15,955	0
TOTAL LIABILITIES		4,246,844	5,499,234
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		21,569	19,204
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	0
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		166	174
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		677	1,154
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		57,706	60,158
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		0	209
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		14,232	13,900
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		94,484	111,028
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		193	0
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale		196	0
Other invested assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value investment measured at NAV per share		62,100	700
Separate Account Assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value investment measured at NAV per share		$ 4,109,000	$ 4,113,000

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

XML

Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Transfers Between Level 1 and Level 2	$ 0	$ 0

XML

Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 17,431,953	$ 18,593,130
Fair Value, Measurements, Recurring
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 4,191,373	5,452,583
Level 3 | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Policyholder Age	35 years
Level 3 | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Policyholder Age	90 years
Level 3 | Fair Value, Measurements, Recurring
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 4,191,373	$ 5,452,583
Level 3 | Internal | Minimum | Discounted cash flow | Future Policy Benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Lapse rate	1.00%	1.00%
Spread over LIBOR	0.24%	0.12%
Utilization rate	52.00%	52.00%
Withdrawal rate (greater than maximum range)	78.00%	78.00%
Mortality rate	0.00%	0.00%
Equity volatility curve	16.00%	13.00%
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount rate	5.75%	5.06%
Level 3 | Internal | Minimum | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.00%	25.00%
Level 3 | Internal | Maximum | Discounted cash flow | Future Policy Benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Lapse rate	12.00%	12.00%
Spread over LIBOR	1.21%	1.10%
Utilization rate	97.00%	97.00%
Withdrawal rate (greater than maximum range)	100.00%	100.00%
Mortality rate	14.00%	14.00%
Equity volatility curve	24.00%	24.00%
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount rate	20.00%	22.23%
Level 3 | Internal | Maximum | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.00%	25.00%
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount rate	8.14%	7.33%
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.00%	25.00%
Level 3 | Internal | Fair Value, Measurements, Recurring | Future Policy Benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 4,191,373	$ 5,452,583
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Corporate securities	37,491	36,966
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance Recoverables
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Reinsurance recoverables	$ 4,214,114	$ 5,457,649

XML

Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	$ 17,525	$ 15,845
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	7
Net investment income	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	17,039	17,272
Equity securities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Equity securities | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	(486)	1,420
Net unrealized investment gains (losses):
Included in earnings	(486)	1,420
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	1,339
Total gains (losses) (realized/unrealized):
Net investment income	0
Purchases	3,400
Sales	0
Issuances	0
Settlements	(3,513)
Transfers into Level 3	0
Transfers out of Level 3	0
Other	(14)
Fair Value, end of period	1,194
Short-term Investments | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(18)
Net unrealized investment gains (losses):
Included in earnings	(18)
Short-term Investments | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0
Included in other comprehensive income (loss)	0
Net unrealized investment gains (losses):
Included in earnings	0
Other invested assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0	0
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	9	8
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	10	19
Other invested assets | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	1	11
Net unrealized investment gains (losses):
Included in earnings	2	0
Other invested assets | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Reinsurance Recoverables
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	5,457,649	5,474,263
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	219,457	216,595
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	4,214,114	5,080,379
Reinsurance Recoverables | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(1,462,992)	(610,479)
Net unrealized investment gains (losses):
Included in earnings	(1,409,320)	(574,024)
Reinsurance Recoverables | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Receivables from parents and affiliates
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0	6,493
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	(20)	0
Net investment income	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	6,551	0
Transfers out of Level 3	0	(6,493)
Other	0	0
Fair Value, end of period	6,531	0
Receivables from parents and affiliates | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Receivables from parents and affiliates | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Future policy benefits
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	(5,452,583)	(5,041,007)
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	0	0
Sales	0	0
Issuances	(226,345)	(214,741)
Settlements	0	0
Transfers Into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	(4,191,373)	(4,632,555)
Future policy benefits | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	1,487,555	623,193
Net unrealized investment gains (losses):
Included in earnings	1,433,872	586,992
Future policy benefits | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Policyholders' account balances
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	(46,651)	(20,337)
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	2,122	1,477
Transfers Into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	(39,516)	(24,867)
Policyholders' account balances | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	5,013	(6,007)
Net unrealized investment gains (losses):
Included in earnings	5,013	(6,007)
Policyholders' account balances | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Other liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0	0
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	8,825	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers Into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	0
Fair Value, end of period	(15,955)	0
Other liabilities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(24,780)	0
Net unrealized investment gains (losses):
Included in earnings	(24,780)	0
Other liabilities | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Available-for-sale | Fixed maturities | US government
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	19,204	0
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	0	0
Net investment income	0	0
Purchases	2,365	25
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Other	0	3,570
Fair Value, end of period	21,569	3,595
Available-for-sale | Fixed maturities | US government | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Available-for-sale | Fixed maturities | US government | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Available-for-sale | Fixed maturities | Foreign government bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	(8)
Net investment income	0
Purchases	0
Sales	0
Issuances	0
Settlements	0
Transfers into Level 3	0
Transfers out of Level 3	0
Other	174
Fair Value, end of period	166
Available-for-sale | Fixed maturities | Foreign government bonds | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0
Net unrealized investment gains (losses):
Included in earnings	0
Available-for-sale | Fixed maturities | Foreign government bonds | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0
Net unrealized investment gains (losses):
Included in earnings	0
Available-for-sale | Fixed maturities | Corporate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	75,421	102,556
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	817	453
Net investment income	51	3
Purchases	1,022	5,958
Sales	0	(51,430)
Issuances	0	0
Settlements	(4,570)	(5,518)
Transfers into Level 3	0	1,814
Transfers out of Level 3	(209)	(1,802)
Other	15	(3,570)
Fair Value, end of period	72,615	48,816
Available-for-sale | Fixed maturities | Corporate securities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	68	352
Net unrealized investment gains (losses):
Included in earnings	(26)	(62)
Available-for-sale | Fixed maturities | Corporate securities | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Available-for-sale | Fixed maturities | Structured securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	111,028	19,856
Total gains (losses) (realized/unrealized):
Included in other comprehensive income (loss)	105	73
Net investment income	26	36
Purchases	190	4,000
Sales	0	0
Issuances	0	0
Settlements	(3,195)	(129)
Transfers into Level 3	13,513	64,507
Transfers out of Level 3	(26,794)	0
Other	0	0
Fair Value, end of period	94,873	88,343
Available-for-sale | Fixed maturities | Structured securities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	0	0
Available-for-sale | Fixed maturities | Structured securities | Asset management fees and other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Net unrealized investment gains (losses):
Included in earnings	$ 0	$ 0

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Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Assets:
Policy loans	$ 1,169,847	$ 1,161,101
Cash and cash equivalents	81,186	212,569	$ 133,390	$ 96,157
Accrued investment income	83,878	82,341
Receivables from parent and affiliates	280,118	300,116
Liabilities:
Cash collateral for loaned securities	13,576	33,169
Fair Value
Assets:
Commercial mortgage and other loans	1,150,210	1,111,625
Policy loans	1,169,847	1,161,101
Cash and cash equivalents	81,186	184,562
Accrued investment income	83,878	82,341
Receivables from parent and affiliates	150,760	167,545
Other assets	43,638	50,407
Total assets	2,679,519	2,757,581
Liabilities:
Policyholders’ account balances - investment contracts	1,473,498	1,455,018
Cash collateral for loaned securities	13,576	33,169
Debt, Current	80
Payables to parent and affiliates	236,760	223,550
Other liabilities	353,291	362,592
Total liabilities	2,077,205	2,074,329
Carrying Amount
Assets:
Commercial mortgage and other loans	1,137,366	1,083,419
Policy loans	1,169,847	1,161,101
Cash and cash equivalents	81,186	184,562
Accrued investment income	83,878	82,341
Receivables from parent and affiliates	150,760	167,545
Other assets	43,638	50,407
Total assets	2,666,675	2,729,375
Liabilities:
Policyholders’ account balances - investment contracts	1,480,611	1,458,599
Cash collateral for loaned securities	13,576	33,169
Debt, Current	80
Payables to parent and affiliates	236,760	223,550
Other liabilities	353,291	362,592
Total liabilities	2,084,318	2,077,910
Level 1 | Fair Value
Assets:
Commercial mortgage and other loans	0	0
Policy loans	0	0
Cash and cash equivalents	52,686	36,562
Accrued investment income	0	0
Receivables from parent and affiliates	0	0
Other assets	0	0
Total assets	52,686	36,562
Liabilities:
Policyholders’ account balances - investment contracts	0	0
Cash collateral for loaned securities	0	0
Debt, Current	0
Payables to parent and affiliates	0	0
Other liabilities	0	0
Total liabilities	0	0
Level 2 | Fair Value
Assets:
Commercial mortgage and other loans	0	0
Policy loans	0	0
Cash and cash equivalents	28,500	148,000
Accrued investment income	83,878	82,341
Receivables from parent and affiliates	150,760	167,545
Other assets	43,638	50,407
Total assets	306,776	448,293
Liabilities:
Policyholders’ account balances - investment contracts	1,198,114	1,178,583
Cash collateral for loaned securities	13,576	33,169
Debt, Current	80
Payables to parent and affiliates	236,760	223,550
Other liabilities	353,291	362,592
Total liabilities	1,801,821	1,797,894
Level 3 | Fair Value
Assets:
Commercial mortgage and other loans	1,150,210	1,111,625
Policy loans	1,169,847	1,161,101
Cash and cash equivalents	0	0
Accrued investment income	0	0
Receivables from parent and affiliates	0	0
Other assets	0	0
Total assets	2,320,057	2,272,726
Liabilities:
Policyholders’ account balances - investment contracts	275,384	276,435
Cash collateral for loaned securities	0	0
Debt, Current	0
Payables to parent and affiliates	0	0
Other liabilities	0	0
Total liabilities	$ 275,384	276,435
Other invested assets | Fair Value | Measurement at NAV per share
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost Method Investments, Fair Value Disclosure		49,000
Other invested assets | Carrying Amount | Measurement at NAV per share
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost Method Investments, Fair Value Disclosure		$ 41,000

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (2,448)	$ (18,451)
Effective income tax rate, percent	(29.47%)	(85.34%)
Federal Statutory income tax rate, percent	21.00%	35.00%
Total provision for income tax expense (benefit)	$ 17,600		$ 17,600

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Reinsurance (amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Effects of Reinsurance [Line Items]
Reinsurance recoverables	$ 31,696,534	$ 32,555,500
Policy loans	(1,169,847)	(1,161,101)
Deferred policy acquisition costs	(1,432,029)	(1,376,211)
Other assets	433,592	465,467
Future policy benefits	17,431,953	18,593,130
Other liabilities	1,013,952	1,060,123
Impacts of Reinsurance
Effects of Reinsurance [Line Items]
Reinsurance recoverables	31,696,534	32,555,500
Policy loans	(125,587)	(124,843)
Deferred policy acquisition costs	(6,968,267)	(6,832,729)
Deferred sales inducements	(616,795)	(638,065)
Other assets	193,113	205,430
Policyholders’ account balances	5,004,098	5,004,885
Future policy benefits	3,219,983	3,301,841
Other liabilities	587,909	626,306
Unaffiliated activity
Effects of Reinsurance [Line Items]
Other assets	100	100
Other liabilities	$ 42,000	$ 73,000

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Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	$ 31,696,534	$ 32,555,500
PAR U
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	11,096,056	11,111,272
PALAC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	7,343,099	8,388,988
PURC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	3,700,711	3,577,962
PARCC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	2,535,700	2,546,673
GUL Re
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,845,549	1,772,950
PAR Term
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,583,047	1,559,618
Prudential of Taiwan
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,451,312	1,406,686
Term Re
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,053,052	966,509
Prudential Insurance
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,039,039	1,152,241
DART
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	36,658	0
Unaffiliated
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	$ 12,311	$ 72,601

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Reinsurance (Income Statement and Comprehensive Income (Loss) Reinsurance Results) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Premiums:
Direct	$ 441,955	$ 417,993
Assumed	60	66
Ceded	(434,100)	(412,302)
Net premiums	7,915	5,757
Policy charges and fee income:
Direct	846,723	781,561
Assumed	121,709	116,339
Ceded	(842,536)	(769,898)
Net policy charges and fee income	125,896	128,002
Net investment income:
Direct	79,149	90,401
Assumed	373	360
Ceded	(1,607)	(1,146)
Net investment income	77,915	89,615
Asset administration fees:
Direct	87,033	80,999
Assumed	0	0
Ceded	(83,560)	(76,812)
Net asset administration fees	3,473	4,187
Other income:
Direct	17,253	15,438
Assumed	(90)	551
Ceded	(52)	(12)
Amortization of reinsurance income	2,185	0
Net other income	19,296	15,977
Realized investment gains (losses), net:
Direct	1,474,762	622,126
Assumed	0	0
Ceded	(1,523,804)	(654,705)
Realized investment gains (losses), net	(49,042)	(32,579)
Policyholders’ benefits (including change in reserves):
Direct	654,638	685,495
Assumed	112,802	129,137
Ceded	(718,485)	(743,145)
Net policyholders’ benefits (including change in reserves)	48,955	71,487
Interest credited to policyholders’ account balances:
Direct	124,734	98,917
Assumed	36,517	33,934
Ceded	(120,453)	(88,091)
Net interest credited to policyholders’ account balances	40,798	44,760
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(433,912)	(362,236)
Unaffiliated activity
Premiums:
Assumed	100	100
Policy charges and fee income:
Ceded	(2,000)	(700)
Other income:
Assumed	(100)	600
Realized investment gains (losses), net:
Ceded	(38,000)	(8,000)
Policyholders’ benefits (including change in reserves):
Assumed	(100)	400
Ceded	$ (2,000)	$ 3,000

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Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Reinsurance Disclosures [Abstract]
Direct gross life insurance face amount in force	$ 893,787,108	$ 840,190,324
Assumed gross life insurance face amount in force	41,584,568	42,499,716
Reinsurance ceded	(864,942,222)	(817,213,475)
Net life insurance face amount in force	$ 70,429,454	$ 65,476,565

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Reinsurance (Narrative) (Details) - USD ($) $ in Thousands										3 Months Ended		21 Months Ended	36 Months Ended		48 Months Ended
	Jan. 01, 2018	Jul. 01, 2017	Jun. 30, 2017	Jan. 01, 2017	Dec. 31, 2013	Jul. 01, 2011	Dec. 31, 2010	Dec. 31, 2009	Jan. 31, 2001	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2013	Dec. 31, 2017	Dec. 31, 2013
Effects of Reinsurance [Line Items]
Realized investment gains (losses)										$ (49,042)	$ (32,579)
Reinsurance recoverables										31,696,534					$ 32,555,500
PAR U
Effects of Reinsurance [Line Items]
Reinsurance recoverables										11,096,056					11,111,272
PURC
Effects of Reinsurance [Line Items]
Reinsurance recoverables										3,700,711					3,577,962
PARCC
Effects of Reinsurance [Line Items]
Reinsurance recoverables										2,535,700					2,546,673
GUL Re
Effects of Reinsurance [Line Items]
Reinsurance recoverables										1,845,549					1,772,950
PAR Term
Effects of Reinsurance [Line Items]
Reinsurance recoverables										1,583,047					1,559,618
Prudential of Taiwan
Effects of Reinsurance [Line Items]
Reinsurance recoverables										1,451,312					1,406,686
Term Re
Effects of Reinsurance [Line Items]
Reinsurance recoverables										1,053,052					966,509
Prudential Insurance
Effects of Reinsurance [Line Items]
Reinsurance recoverables										1,039,039					1,152,241
DART
Effects of Reinsurance [Line Items]
Reinsurance recoverables										36,658					$ 0
Union Hamilton Reinsurance, Ltd.
Effects of Reinsurance [Line Items]
Reinsurance recoverables										$ 3,200,000
Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Amount Retained												$ 2,900,000
Reinsurance Retention Policy, Reinsured Risk, Percentage												50.00%
Affiliated Entity | PAR U
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage						95.00%	70.00%
Affiliated Entity | PURC
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage													95.00%	70.00%
Affiliated Entity | PARCC
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage								90.00%
Affiliated Entity | GUL Re
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage				95.00%	30.00%
Affiliated Entity | PAR Term
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage																95.00%
Affiliated Entity | Prudential of Taiwan
Effects of Reinsurance [Line Items]
Related Party Transaction, Term									2 years
Affiliated Entity | Term Re
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage															95.00%
Affiliated Entity | Prudential Insurance
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage										100.00%
Affiliated Entity | DART
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage	95.00%
Affiliated Entity | UPARC
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Excess Retention, Percentage			30.00%
Reinsurance Retention Policy, Amount Retained			$ 1,000
Reinsurance Retention Policy, Reinsured Risk, Percentage			27.00%
Reinsurance Retention Policy, Uncollected Charges And Fees Risk, Percentage			30.00%
Affiliated Entity | UPARC | Impacts of Recapture
Effects of Reinsurance [Line Items]
Invested assets received		$ 557,000
Reinsurance recoverable		(760,000)
Realized investment gains (losses)		$ (203,000)

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Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 165,346
Ending Balance	78,932
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(234)	$ (402)
Change in OCI before reclassifications	(923)	23
Amounts reclassified from AOCI	0	0
Income tax benefit (expense)	194	(8)
Ending Balance	(1,013)	(387)
Net unrealized investment gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	165,580	71,377
Change in OCI before reclassifications	(145,519)	23,059
Amounts reclassified from AOCI	490	4,144
Income tax benefit (expense)	30,501	(9,521)
Ending Balance	79,962	89,059
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	0	0
Change in OCI before reclassifications	(22)	0
Amounts reclassified from AOCI	0	0
Income tax benefit (expense)	5	0
Ending Balance	(17)	0
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	165,346	70,975
Change in OCI before reclassifications	(146,464)	23,082
Amounts reclassified from AOCI	490	4,144
Income tax benefit (expense)	30,700	(9,529)
Ending Balance	78,932	88,672
Cash flow hedges | Net unrealized investment gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(18,000)	41,000
Ending Balance	(41,000)	$ 31,000
ASU 2016-01 | Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2016-01 | Net unrealized investment gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(1,539)
ASU 2016-01 | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(1,539)
ASU 2018-02
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ending Balance	30,400
ASU 2018-02 | Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(50)
ASU 2018-02 | Net unrealized investment gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	30,449
ASU 2018-02 | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	$ 30,399

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Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net unrealized investment gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	$ 490	$ 4,144
Total reclassifications for the period
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	490	4,144
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	(490)	(4,144)
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications for the period
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	(490)	(4,144)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net unrealized investment gains (losses)	(809)	(7,277)
Reclassification out of Accumulated Other Comprehensive Income | Currency/Interest rate | Cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net unrealized investment gains (losses)	$ 319	$ 3,133

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Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 165,346
Ending Balance	78,932
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	165,580
Ending Balance	79,962
OTTI | Net Unrealized Gains (Losses) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,609
Net investment gains (losses) on investments arising during the period	(776)
Reclassification adjustment for (gains) losses included in net income	(136)
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	697
OTTI | Deferred Policy Acquisition Costs and Other Costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(99)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	6
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	(93)
OTTI | Future Policy Benefits and Policyholders’ Account Balances
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	22
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(13)
Ending Balance	9
OTTI | Deferred Income Tax (Liability) Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(682)
Net investment gains (losses) on investments arising during the period	163
Reclassification adjustment for (gains) losses included in net income	29
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	(1)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	3
Ending Balance	(488)
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	850
Net investment gains (losses) on investments arising during the period	(613)
Reclassification adjustment for (gains) losses included in net income	(107)
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	5
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(10)
Ending Balance	$ 125

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Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 165,346
Ending Balance	78,932
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	165,580
Ending Balance	79,962
All Other | Net Unrealized Gains (Losses) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	272,809
Net investment gains (losses) on investments arising during the period	(156,044)
Reclassification adjustment for (gains) losses included in net income	626
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	115,023
All Other | Deferred Policy Acquisition Costs and Other Costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,832
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	(29,720)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	(27,888)
All Other | Future Policy Benefits and Policyholders’ Account Balances
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(28,998)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	41,028
Ending Balance	12,030
All Other | Deferred Income Tax (Liability) Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(80,913)
Net investment gains (losses) on investments arising during the period	32,818
Reclassification adjustment for (gains) losses included in net income	(132)
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	6,250
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(8,629)
Ending Balance	(19,328)
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	164,730
Net investment gains (losses) on investments arising during the period	(123,226)
Reclassification adjustment for (gains) losses included in net income	494
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	(23,470)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	32,399
Ending Balance	79,837
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(1,539)
ASU 2016-01 | All Other | Net Unrealized Gains (Losses) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(2,368)
ASU 2016-01 | All Other | Deferred Policy Acquisition Costs and Other Costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2016-01 | All Other | Future Policy Benefits and Policyholders’ Account Balances
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2016-01 | All Other | Deferred Income Tax (Liability) Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	829
ASU 2016-01 | All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	(1,539)
ASU 2018-02
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ending Balance	30,400
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	30,449
ASU 2018-02 | All Other | Net Unrealized Gains (Losses) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2018-02 | All Other | Deferred Policy Acquisition Costs and Other Costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2018-02 | All Other | Future Policy Benefits and Policyholders’ Account Balances
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	0
ASU 2018-02 | All Other | Deferred Income Tax (Liability) Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	30,449
ASU 2018-02 | All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect of adoption	$ 30,449

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Related Party Transactions (Narrative) (Details)		3 Months Ended
		Mar. 31, 2018 USD ($) policy	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Related Party Transaction [Line Items]
Other invested assets	[1]	$ 304,417,000	$ 263,074,000
Net investment income		77,915,000			$ 89,615,000
Prudential Insurance
Related Party Transaction [Line Items]
Proceeds from Contributions from Affiliates		6,000,000		$ 149,000,000	5,000,000
Dividends		0	250,000,000
Prudential Insurance
Related Party Transaction [Line Items]
Stock option program plan expense		200,000			100,000
Deferred compensation program expense		2,000,000			3,000,000
Pension plan expense		6,000,000			6,000,000
Welfare plan expense		$ 7,000,000			7,000,000
Defined contribution plan, employer matching contribution, percent (up to)		4.00%
Defined contribution plan, cost recognized		$ 3,000,000			3,000,000
Number of Corporate Owned Life Insurance policies sold | policy		5
Prudential Insurance and Prudential Financial
Related Party Transaction [Line Items]
Life Insurance, Corporate or Bank Owned, amount		$ 3,739,000,000	3,688,000,000
Fees related to Life Insurance, Corporate or Bank Owned, amount		12,000,000			12,000,000
Maximum amount of mortality risk		3,500,000
Prudential Financial
Related Party Transaction [Line Items]
Company's share of corporate expenses		$ 18,000,000			17,000,000
Number of Corporate Owned Life Insurance policies sold | policy		1
Affiliated Entity
Related Party Transaction [Line Items]
Accrued interest receivable related to long-tern notes receivable		$ 700,000	1,000,000
Revenues related to long-term notes receivable		1,000,000			1,000,000
Line of credit facility, maximum borrowing capacity		2,200,000,000.0
Interest expense related to loans payable		100,000			200,000
Affiliated Entity | PAD
Related Party Transaction [Line Items]
Commissions and fees		175,000,000			155,000,000
Affiliated Entity | ASTISI and PGIM Investments
Related Party Transaction [Line Items]
Fee income from revenue sharing agreement		84,000,000			77,000,000
Affiliated Entity | PGIM Investments
Related Party Transaction [Line Items]
Fee income from revenue sharing agreement		2,000,000			3,000,000
Affiliated Entity | PGIM
Related Party Transaction [Line Items]
Net investment income		3,000,000			3,000,000
Prudential Financial Joint Ventures
Related Party Transaction [Line Items]
Other invested assets		81,000,000	$ 79,000,000
Net investment income		$ 100,000			$ 4,000,000

[1] Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details

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Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Total long-term notes receivable - affiliated	$ 129,359	$ 132,571
U.S. Dollar floating rate notes
Related Party Transaction [Line Items]
Total long-term notes receivable - affiliated	$ 6,531	6,551
U.S. Dollar floating rate notes | Minimum
Related Party Transaction [Line Items]
Interest Rates	3.13%
U.S. Dollar floating rate notes | Maximum
Related Party Transaction [Line Items]
Interest Rates	3.74%
U.S. Dollar fixed rate notes
Related Party Transaction [Line Items]
Total long-term notes receivable - affiliated	$ 122,828	$ 126,020
U.S. Dollar fixed rate notes | Minimum
Related Party Transaction [Line Items]
Interest Rates	0.00%
U.S. Dollar fixed rate notes | Maximum
Related Party Transaction [Line Items]
Interest Rates	14.85%

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Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Related Party Transaction [Line Items]
Realized investment gains (losses)	$ (49,042)	$ (32,579)
Affiliated Entity | PALAC January 17 Purchase
Related Party Transaction [Line Items]
Fair Value	29
Book Value	29
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | Prudential Insurance June 2017 Sale
Related Party Transaction [Line Items]
Fair Value	16,965
Book Value	16,515
APIC, Net of Tax Increase/(Decrease)	293
Realized investment gains (losses)	0
Affiliated Entity | Prudential Insurance June 2017 Sale
Related Party Transaction [Line Items]
Fair Value	43,198
Book Value	42,301
APIC, Net of Tax Increase/(Decrease)	584
Realized investment gains (losses)	0
Affiliated Entity | UPARC September 2017 Transfer In
Related Party Transaction [Line Items]
Fair Value	37,354
Book Value	37,354
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | GUL Re September 2017 Transfer Out
Related Party Transaction [Line Items]
Fair Value	72,354
Book Value	72,354
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | GUL Re September 2017 Transfer Out
Related Party Transaction [Line Items]
Fair Value	1,254,457
Book Value	1,195,697
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	58,760
Affiliated Entity | Prudential Financial September 2017 Transfer In
Related Party Transaction [Line Items]
Fair Value	415,271
Book Value	376,412
APIC, Net of Tax Increase/(Decrease)	25,259
Realized investment gains (losses)	0
Affiliated Entity | Prudential Financial September 2017 Transfer Out
Related Party Transaction [Line Items]
Fair Value	415,271
Book Value	376,412
APIC, Net of Tax Increase/(Decrease)	25,259
Realized investment gains (losses)	0
Affiliated Entity | UPARC September 2017 Transfer In
Related Party Transaction [Line Items]
Fair Value	417,067
Book Value	385,459
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	31,608
Affiliated Entity | UPARC September 2017 Transfer In
Related Party Transaction [Line Items]
Fair Value	6,225
Book Value	5,002
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	1,223
Affiliated Entity | GUL Re September 2017 Transfer Out
Related Party Transaction [Line Items]
Fair Value	6,225
Book Value	5,002
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	1,223
Affiliated Entity | UPARC September 2017 Purchase
Related Party Transaction [Line Items]
Fair Value	20,685
Book Value	20,685
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | UPARC November 2017 Purchase
Related Party Transaction [Line Items]
Fair Value	41,250
Book Value	34,332
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	6,919
Affiliated Entity | Prudential Insurance December 2017 Sale
Related Party Transaction [Line Items]
Fair Value	106,199
Book Value	105,191
APIC, Net of Tax Increase/(Decrease)	655
Realized investment gains (losses)	0
Affiliated Entity | DART January 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	21,457
Book Value	21,457
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	$ 0

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Related Party Transactions Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Short-term and Long-term debt	$ 80	$ 0
Prudential Funding, LLC
Related Party Transaction [Line Items]
Short-term and Long-term debt	$ 80	$ 0
Interest Rates	1.77%

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Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Jul. 31, 2017
Commitments and Contingent Liabilities [Line Items]
Loss contingency, range of possible loss, maximum (less than)	$ 30
Indonesia
Commitments and Contingent Liabilities [Line Items]
Joint Venture with CT Corp, Ownership Percentage			49.00%
Commitments | Mortgage Loans
Commitments and Contingent Liabilities [Line Items]
Commitments to fund commercial mortgage loan	3	$ 15
Commitments | Investments
Commitments and Contingent Liabilities [Line Items]
Commitments to purchase or fund investments	$ 185	$ 196