Reinsurance (Tables)

6 Months Ended

Jun. 30, 2024

Reinsurance Impact on Statements of Financial Position

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position were as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
Reinsurance recoverables	$	40,693,991	$	38,709,651
Policy loans	(1,098,752)		(1,082,584)
Deferred policy acquisition costs	(3,154,068)		(3,195,161)
Deferred sales inducements	(33,943)		(35,313)
Market risk benefit assets	1,131,482		1,165,378
Other assets	2,413,087		1,897,410
Policyholders’ account balances	5,746,173		5,977,108
Future policy benefits	7,197,282		7,026,209
Market risk benefit liabilities	287,741		249,538
Other liabilities	7,830,608		4,397,862

Unaffiliated reinsurance amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Financial Position were as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
Deferred policy acquisition costs	$	65,299	$	71,315
Market risk benefit assets	780,056		745,662
Other assets	2,313,943		1,795,422
Policyholders’ account balances	1,726,686		1,830,579
Future policy benefits	185		453
Market risk benefit liabilities	146,676		131,594
Other liabilities	2,352,382		1,915,205

Reinsurance Recoverable by Counterparty

Reinsurance recoverables by counterparty are as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
PAR U	$	18,630,892	$	15,722,061
PURC	0		7,565,968
PARCC	2,123,485		2,304,270
GUL Re	0		3,211,899
PAR Term	1,987,253		2,101,004
Prudential Insurance	4,164,836		1,311,525
Term Re	1,980,014		2,080,564
Lotus Re	2,077,391		2,051,831
DART	765,376		744,043
PURE	7,383,771		0
Unaffiliated	1,580,973		1,616,486
Total reinsurance recoverables	$	40,693,991	$	38,709,651

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 six months ended June 30, were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in thousands)
Premiums:
Direct	$	462,458	$	476,472	$	922,086	$	938,539
Assumed	30		34		63		(122)
Ceded	(367,567)		(386,541)		(735,046)		(771,796)
Net premiums	94,921		89,965		187,103		166,621
Policy charges and fee income:
Direct	785,299		749,037		1,556,488		1,484,975
Assumed	239,838		148,479		498,608		301,079
Ceded	(636,303)		(533,980)		1,242,943		(1,036,027)
Net policy charges and fee income	388,834		363,536		3,298,039		750,027
Net investment income:
Direct	592,448		402,761		1,111,500		753,084
Assumed	333		343		663		686
Ceded	(12,788)		(10,029)		(26,850)		(11,245)
Net investment income(1)	579,993		393,075		1,085,313		742,525
Asset administration fees:
Direct	79,776		80,952		162,464		161,308
Assumed	0		0		0		0
Ceded	(24,663)		(24,164)		(50,719)		(40,318)
Net asset administration fees	55,113		56,788		111,745		120,990
Other income (loss):
Direct	84,931		79,657		129,747		305,391
Assumed	24		(56)		349		(349)
Ceded	52,734		25,857		221,078		45,263

Net other income (loss)(1)	137,689		105,458		351,174		350,305


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Realized investment gains (losses), net:
Direct	765,146	(88,715)	777,502	(334,638)
Assumed	72,351	82,278	63,184	220,944
Ceded	1,385	14,131	21,196	709
Realized investment gains (losses), net(1)	838,882	7,694	861,882	(112,985)
Change in value of market risk benefits, net of related hedging gain (loss):
Direct	(298,559)	174,084	15,327	207,204
Assumed	1,072	2,774	606	(3,443)
Ceded	15,304	(215,745)	(206,525)	(222,446)
Net change in value of market risk benefits, net of related hedging gain (loss)	(282,183)	(38,887)	(190,592)	(18,685)
Policyholders’ benefits (including change in reserves):
Direct	909,374	848,495	1,910,820	1,727,280
Assumed	245,810	332,048	533,221	649,335
Ceded	(1,019,305)	(1,033,582)	1,798,246	(2,124,472)
Net policyholders’ benefits (including change in reserves)(1)	135,879	146,961	4,242,287	252,143
Change in estimates of liability for future policy benefits:
Direct	72,870	31,146	212,456	(17,355)
Assumed	74,378	23,844	64,868	25,651
Ceded	(153,422)	(56,123)	(295,503)	(13,831)
Net change in estimates of liability for future policy benefits	(6,174)	(1,133)	(18,179)	(5,535)
Interest credited to policyholders’ account balances:
Direct	297,194	215,973	575,584	438,548
Assumed	36,344	27,957	82,492	66,463
Ceded	(107,314)	(100,114)	(207,302)	(200,973)
Net interest credited to policyholders’ account balances	226,224	143,816	450,774	304,038
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(116,030)	(105,195)	(506,173)	(223,025)

(1)Amounts include reinsurance agreements using the deposit method of accounting.

Unaffiliated reinsurance assumed and ceded amounts included in the table above and in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023(1)		2024		2023
	(in thousands)
Premiums:
Assumed	$	30	$	34	$	60	$	(132)
Ceded	(26,827)		(16,802)		(51,979)		(33,377)

Policy charges and fee income:
Assumed	356		383		628		923
Ceded	(44,958)		(38,338)		(86,970)		(62,276)

Net investment income(1):
Ceded	0		1,993		0		12,913

Asset administration fees:
Ceded	(7,007)		(7,740)		(14,323)		(7,740)

Other income (loss)(1):
Assumed	24		55		453		(238)
Ceded	26,002		8,031		47,806		9,653

Realized investment gains (losses), net(1):
Assumed	72,351		82,278		63,184		220,944
Ceded	21,774		13,952		46,999		(629)

Change in value of market risk benefits, net of related hedging gain (loss):
Assumed	1,072		2,774		606		(3,443)
Ceded	34,461		(75,325)		(63,547)		(80,098)

Policyholders’ benefits (including change in reserves)(1):
Assumed	28		189		361		280
Ceded	(64,243)		(36,118)		(211,071)		(63,820)

Change in estimates of liability for future policy benefits:
Ceded	29		(416)		91,902		(416)

Interest credited to policyholders’ account balances:
Assumed	7,657		(2,370)		25,116		5,099
Ceded	(1)		(85)		(1)		(85)

(1)Amounts include reinsurance agreements using the deposit method of accounting.

Gross and Net Life Insurance in Force

The gross and net amounts of life insurance face amount in force as of June 30, 2024 and 2023 were as follows:


	2024		2023
	(in thousands)
Direct gross life insurance face amount in force	$	1,147,562,454	$	1,107,571,392
Assumed gross life insurance face amount in force	35,029,437		36,059,164
Reinsurance ceded	(1,041,974,560)		(1,015,213,859)
Net life insurance face amount in force	$	140,617,331	$	128,416,697