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Related Party Transactions
 6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions
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 $78 million and $94 million for the three months ended June 30, 2022 and 2021, respectively, and $163 million and $185 million for the six months ended June 30, 2022 and 2021, 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 $9 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $19 million and $7 million for the six months ended June 30, 2022 and 2021, 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 June 30, 2022 and December 31, 2021 were as follows:
Maturity DatesInterest RatesJune 30, 2022December 31, 2021
(in thousands)
U.S. dollar fixed rate notes2022-20270.00%-14.85 %$150,946 $162,045 
Total notes receivable - affiliated(1)$150,946 $162,045 

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

The affiliated notes receivable shown above are classified as available-for-sale securities and other trading 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 $1 million at both June 30, 2022 and December 31, 2021, and is included in “Other assets”. Revenues related to these loans were $1 million for both the three months ended June 30, 2022 and 2021, and $2 million for both the six months ended June 30, 2022 and 2021, and are included in “Other income (loss)”.

Affiliated Commercial Mortgage Loan

The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at June 30, 2022 and December 31, 2021 were as follows:
Maturity DateInterest RateJune 30, 2022December 31, 2021
(in thousands)
Affiliated Commercial Mortgage Loan20255.62%$72,818 $73,412 

This affiliated commercial mortgage loan was transferred from PALAC as part of the 2021 Variable Annuities Recapture. See Note 1 for details.

The commercial mortgage loan shown above is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage on an on-going basis.

Accrued interest receivable related to the loan was $0.3 million at June 30, 2022 and is included in "Accrued investment income". Revenues were $1 million for the three months ended June 30, 2022 and $1 million for the six months ended June 30, 2022, and are included in "Net investment 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 six months ended June 30, 2022 and for the year ended December 31, 2021, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
AffiliateDateTransaction Security Type  Fair Value  Book Value  APIC, Net of Tax Increase/(Decrease)Realized
Investment
Gain (Loss)
 (in thousands)
PALACJune 2021PurchaseEquities$40,284 $40,284 $0 $0 
Prudential InsuranceSeptember 2021PurchaseFixed Maturities$64,374 $59,642 $(3,739)$0 
Prudential InsuranceSeptember 2021SaleFixed Maturities$37,887 $35,264 $2,073 $0 
Hirakata LLCSeptember 2021PurchaseFixed Maturities$13,944 $13,944 $0 $0 
Prudential Retirement Insurance & Annuity CoSeptember 2021PurchaseFixed Maturities$120,256 $120,256 $0 $0 
Prudential Retirement Insurance & Annuity CoSeptember 2021SaleFixed Maturities$173,590 $166,427 $0 $7,163 
Prudential InsuranceSeptember 2021PurchaseCommercial Mortgage and Other Loans$45,358 $42,127 $(2,553)$0 
Prudential InsuranceSeptember 2021SaleCommercial Mortgage and Other Loans$22,796 $21,780 $802 $0 
AffiliateDateTransaction Security Type  Fair Value  Book Value  APIC, Net of Tax Increase/(Decrease)Realized
Investment
Gain (Loss)
 (in thousands)
Prudential Retirement Insurance & Annuity CoSeptember 2021PurchaseCommercial Mortgage and Other Loans$29,483 $29,483 $0 $0 
Prudential Retirement Insurance & Annuity CoSeptember 2021SaleCommercial Mortgage and Other Loans$51,005 $47,020 $0 $3,985 
Prudential InsuranceSeptember 2021PurchaseDerivatives$600 $494 $(84)$0 
Prudential InsuranceSeptember 2021SaleDerivatives$335 $175 $127 $0 
Prudential Retirement Insurance & Annuity CoSeptember 2021PurchaseDerivatives$(1,243)$(1,243)$0 $0 
Prudential Retirement Insurance & Annuity CoSeptember 2021SaleDerivatives$2,846 $770 $0 $2,076 
PAR UNovember 2021PurchaseFixed Maturities$41,021 $41,021 $0 $0 
PALACNovember 2021PurchaseDerivatives$1,112 $1,112 $0 $0 
PALACDecember 2021Transfer InFixed Maturities$2,037,320 $2,037,320 $0 $0 
PURCDecember 2021PurchaseFixed Maturities$48,041 $48,041 $0 $0 
PALACDecember 2021PurchaseFixed Maturities$57,087 $57,087 $0 $0 
PALACDecember 2021Transfer InCommercial Mortgage and Other Loans$517,309 $517,309 $0 $0 
Prudential InsuranceDecember 2021Contributed CapitalFixed Maturities$166,676 $166,676 $0 $0 
Prudential Retirement Insurance & Annuity CoDecember 2021SaleDerivatives$31,567 $0 $0 $31,567 
Prudential Retirement Insurance & Annuity CoDecember 2021PurchaseDerivatives$73,572 $73,572 $0 $0 
PALACDecember 2021PurchaseDerivatives$8,455 $8,455 $0 $0 
PALACJanuary 2022PurchaseFixed Maturities$4,432 $4,432 $0 $0 
PALACJanuary 2022PurchaseDerivatives$404 $404 $0 $0 
PALACFebruary 2022PurchaseFixed Maturities$128,909 $128,909 $0 $0 
AffiliateDateTransaction Security Type  Fair Value  Book Value  APIC, Net of Tax Increase/(Decrease)Realized
Investment
Gain (Loss)
 (in thousands)
PAR UApril 2022PurchaseFixed Maturities$48,970 $48,970 $0 $0 
Prudential InsuranceMay 2022PurchaseFixed Maturities$233,426 $241,128 $6,085 $0 
Prudential InsuranceJune 2022PurchaseFixed Maturities$88,754 $81,216 $(5,955)$0 
Prudential InsuranceJune 2022Transfer InFixed Maturities$52,089 $45,031 $(5,577)$0 
Prudential InsuranceJune 2022Transfer OutFixed Maturities$48,786 $58,984 $(8,057)$0 
PAR UJune 2022PurchaseCommercial Mortgage and Other Loans$6,492 $6,492 $0 $0 
PAR UJune 2022SaleCommercial Mortgage and Other Loans$14,853 $15,725 $0 $(872)
GUL ReJune 2022PurchaseCommercial Mortgage and Other Loans$13,551 $13,551 $0 $0 
GUL ReJune 2022SaleCommercial Mortgage and Other Loans$8,692 $9,033 $0 $(341)
PURCJune 2022PurchaseCommercial Mortgage and Other Loans$4,403 $4,403 $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 long-term debt to affiliates as of June 30, 2022 and December 31, 2021:
AffiliateDate
Issued		Amount of Notes - June 30, 2022Amount of Notes - December 31, 2021Interest Rate  Date of Maturity  
  (in thousands)  
Prudential Insurance8/13/2021$98,222 $99,770 4.39 %12/15/2023
Prudential Insurance8/13/202129,466 29,931 4.39 %12/15/2023
Prudential Insurance8/13/202199,010 100,348 3.95 %6/20/2024
Prudential Insurance8/13/202139,604 40,139 3.95 %6/20/2024
Prudential Insurance8/13/202149,505 50,174 3.95 %6/20/2024
Total Loans Payable to Affiliates$315,807 $320,362 

Effective August 2021, the affiliated long-term debt was transferred to the Company from PALAC based on the market value of $324 million. The Company recorded a premium of $24 million which is amortized into earnings over the life of the loans.

The total interest expense to the Company related to affiliated loans and cash collateral with PGF was $(5) million and $0 million for the three months ended June 30, 2022 and 2021, respectively, and $(5) million and $0 million for the six months ended June 30, 2022 and 2021, respectively.

Contributed Capital and Dividends

In March and June 2022, the Company received a capital contribution in the amount of $8 million and $3 million, respectively, from Prudential Insurance. In January, July and December of 2021, the Company received capital contributions in the amount of $106 million, $3,813 million and $457 million, respectively, from Prudential Insurance. The December 2021 capital contribution includes $167 million of invested assets related to the Reinsurance Agreement with PALAC.

In June 2021, there was a $34 million return of capital to Prudential Insurance associated with the financial guarantee related to the sale of Prudential of Taiwan.

Through June 2022 and December 2021, the Company did not pay any dividends to Prudential Insurance.

Reinsurance with Affiliates

As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates.