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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2018 and December 31, 2017 were as follows:
 
September 30, 2018
 
December 31, 2017
 
(in thousands)
Reinsurance recoverables(1)
$
31,430,148

 
$
32,521,264

Policy loans
(129,636
)
 
(124,843
)
Deferred policy acquisition costs
(7,175,536
)
 
(6,832,729
)
Deferred sales inducements
(570,514
)
 
(638,065
)
Other assets(2)
168,397

 
205,430

Policyholders’ account balances
4,997,598

 
5,004,885

Future policy benefits
3,277,715

 
3,301,841

Other liabilities(1)(3)
628,105

 
605,155



(1)
Prior period amounts in the table above have been revised to correct previously reported numbers. These prior periods revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.
(2)
“Other assets” includes $0.1 million of unaffiliated activity as of both September 30, 2018 and December 31, 2017.
(3)
“Other liabilities” includes $73 million of unaffiliated activity as of both September 30, 2018 and December 31, 2017.
Reinsurance Recoverable by Counterparty
The reinsurance recoverables by counterparty are broken out below:
 
September 30, 2018
 
December 31, 2017
 
(in thousands)
PAR U
$
11,292,102

 
$
11,111,272

PALAC
6,351,987

 
8,388,988

PURC
3,980,335

 
3,577,962

PARCC
2,503,689

 
2,546,673

GUL Re
1,975,365

 
1,772,950

PAR Term
1,700,457

 
1,559,618

Prudential of Taiwan
1,411,997

 
1,406,686

Term Re
1,187,127

 
966,509

Prudential Insurance(1)
922,025

 
1,118,004

DART
79,061

 
0

Unaffiliated
26,003

 
72,602

Total reinsurance recoverables
$
31,430,148

 
$
32,521,264


(1)
Prior period amounts in the table above have been revised to correct previously reported numbers. These prior periods revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.
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 and nine months ended September 30, were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017(8)
 
2018
 
2017(8)
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
451,790

 
$
428,684

 
$
1,343,358

 
$
1,280,293

Assumed(1)
57

 
63

 
175

 
194

Ceded(2)
(437,696
)
 
(413,623
)
 
(1,306,564
)
 
(1,242,529
)
Net premiums
14,151

 
15,124

 
36,969

 
37,958

Policy charges and fee income:
 
 
 
 
 
 
 
Direct
843,551

 
816,191

 
2,407,062

 
2,593,583

Assumed
125,079

 
127,493

 
369,483

 
351,464

Ceded(3)
(861,704
)
 
(814,579
)
 
(2,371,460
)
 
(2,804,107
)
Net policy charges and fee income
106,926

 
129,105

 
405,085

 
140,940

Net investment income:
 
 
 
 
 
 
 
Direct
87,260

 
87,605

 
249,366

 
269,999

Assumed
404

 
376

 
1,162

 
1,104

Ceded
(1,478
)
 
(1,459
)
 
(4,778
)
 
(3,925
)
Net investment income
86,186

 
86,522

 
245,750

 
267,178

Asset administration fees:
 
 
 
 
 
 
 
Direct
88,721

 
86,716

 
262,449

 
251,709

Assumed
0

 
0

 
0

 
0

Ceded
(84,994
)
 
(82,161
)
 
(251,705
)
 
(238,577
)
Net asset administration fees
3,727

 
4,555

 
10,744

 
13,132

Other income:
 
 
 
 
 
 
 
Direct
20,432

 
16,678

 
49,778

 
46,617

Assumed(4)
57

 
(25
)
 
(133
)
 
184

Ceded
(219
)
 
19

 
(46
)
 
(4
)
Amortization of reinsurance income
1,493

 
1,348

 
7,538

 
1,348

Net other income
21,763

 
18,020

 
57,137

 
48,145

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
1,234,853

 
1,390,083

 
3,213,137

 
442,408

Assumed
0

 
0

 
0

 
0

Ceded(5)
(1,284,276
)
 
(1,665,269
)
 
(3,348,492
)
 
(473,583
)
Realized investment gains (losses), net
(49,423
)
 
(275,186
)
 
(135,355
)
 
(31,175
)
Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
636,021

 
560,252

 
1,932,194

 
1,787,338

Assumed(6)
122,727

 
154,389

 
381,934

 
402,025

Ceded(7)
(748,925
)
 
(659,697
)
 
(2,212,128
)
 
(2,247,598
)
Net policyholders’ benefits (including change in reserves)
9,823

 
54,944

 
102,000

 
(58,235
)
Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
137,309

 
139,715

 
383,521

 
249,063

Assumed
34,414

 
33,858

 
105,780

 
101,687

Ceded
(127,014
)
 
(135,377
)
 
(361,239
)
 
(221,827
)
Net interest credited to policyholders’ account balances
44,709

 
38,196

 
128,062

 
128,923

Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization
(420,813
)
 
(502,172
)
 
(1,200,005
)
 
(968,627
)

(1)
"Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months ended September 30, 2018 and 2017, and $0.2 million of unaffiliated activity for both the nine months ended September 30, 2018 and 2017.
(2)
"Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for both the three and nine months ended September 30, 2018 and 2017, respectively.
(3)
"Policy charges and fee income ceded" includes $(8) million and $(4) million of unaffiliated activity for the three months ended September 30, 2018 and 2017, respectively, and $(14) million and $(5) million for the nine months ended September 30, 2018 and 2017, respectively.
(4)
"Other income assumed" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended September 30, 2018 and 2017, respectively, and $(0.1) million and $0.2 million for the nine months ended September 30, 2018 and 2017, respectively.
(5)
“Realized investment gains (losses), net ceded” includes $(33) million and $(49) million of unaffiliated activity for the three months ended September 30, 2018 and 2017, respectively, and $(81) million and $(26) million for the nine months ended September 30, 2018 and 2017, respectively.
(6)
"Policyholders' benefits (including change in reserves) assumed" includes $0.1 million and $0 million of unaffiliated activity for the three months ended September 30, 2018 and 2017, respectively, and $0 million and $0.4 million for the nine months ended September 30, 2018 and 2017, respectively.
(7)
"Policyholders' benefits (including change in reserves) ceded" includes $(4) million and $(1) million of unaffiliated activity for the three months ended September 30, 2018 and 2017, respectively, and $(8) million and $5 million for the nine months ended September 30, 2018 and 2017, respectively.
(8)
Prior period amounts in the table above have been revised to correct previously reported numbers. These prior periods revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.
Gross and Net Life Insurance in Force
The gross and net amounts of life insurance face amount in force as of September 30, 2018 and 2017 were as follows:
 
2018
 
2017
 
(in thousands)
Direct gross life insurance face amount in force
$
922,386,427

 
$
868,069,034

Assumed gross life insurance face amount in force
41,088,914

 
42,061,830

Reinsurance ceded
(889,021,800
)
 
(844,683,670
)
Net life insurance face amount in force
$
74,453,541

 
$
65,447,194