Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Mar. 10, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT | |
Entity Central Index Key | 881,453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 25,000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
Statements of Financial Positio
Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | $ 2,524,272 | $ 2,800,593 |
Trading account assets, at fair value | 5,653 | 6,131 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 17 | 17 |
Commercial mortgage and other loans | 438,172 | 422,563 |
Policy loans | 13,054 | 13,355 |
Short-term investments | 158,227 | 57,185 |
Other long-term investments | 182,157 | 162,783 |
Total investments | 3,321,552 | 3,462,627 |
Cash and cash equivalents | 536 | 594 |
Deferred policy acquisition costs | 749,302 | 1,114,431 |
Accrued investment income | 22,615 | 25,008 |
Reinsurance recoverables | 3,088,328 | 2,996,845 |
Value of business acquired | 33,640 | 39,738 |
Deferred sales inducements | 452,752 | 665,207 |
Receivables from parent and affiliates | 212,696 | 60,490 |
Other assets | 123,158 | 6,193 |
Separate account assets | 39,250,159 | 44,101,699 |
TOTAL ASSETS | 47,254,738 | 52,472,832 |
LIABILITIES | ||
Policyholders’ account balances | 2,416,125 | 2,633,085 |
Future policy benefits and other policyholder liabilities | 3,578,662 | 3,539,521 |
Payables to parent and affiliates | 275,737 | 71,675 |
Cash collateral for loaned securities | 10,568 | 5,285 |
Income taxes | 274,951 | 299,084 |
Short-term debt | 1,000 | 54,354 |
Other liabilities | 100,618 | 105,972 |
Separate account liabilities | 39,250,159 | 44,101,699 |
Total Liabilities | $ 45,907,820 | $ 50,810,675 |
Commitments and Contingent Liabilities | ||
EQUITY | ||
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding | $ 2,500 | $ 2,500 |
Additional paid-in capital | 901,422 | 901,422 |
Retained earnings | 396,830 | 673,613 |
Accumulated other comprehensive income | 46,166 | 84,622 |
Total Equity | 1,346,918 | 1,662,157 |
TOTAL LIABILITIES AND EQUITY | $ 47,254,738 | $ 52,472,832 |
Statements of Financial Positi3
Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed securities amortized cost basis | $ 2,433,626 | $ 2,609,253 |
Available-for-sale equity securities amortized cost basis | $ 14 | $ 14 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 25,000 | 25,000 |
Common stock, shares outstanding | 25,000 | 25,000 |
Statements of Operations and Co
Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | |||
Premiums | $ 9,787 | $ 34,903 | $ 28,019 |
Policy charges and fee income | 740,823 | 806,327 | 809,242 |
Net investment income | 139,430 | 164,011 | 217,883 |
Asset administration fees and other income | 177,479 | 227,619 | 239,489 |
Realized investment gains (losses), net: | |||
Other-than-temporary impairments on fixed maturity securities | (44) | (10) | 0 |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 24 | 10 | 0 |
Other realized investment gains (losses), net | 6,072 | 7,368 | (184,351) |
Total realized investment gains (losses), net | 6,052 | 7,368 | (184,351) |
Total revenues | 1,073,571 | 1,240,228 | 1,110,282 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | 60,461 | 137,135 | 29,727 |
Interest credited to policyholders’ account balances | 225,555 | 211,058 | (117,027) |
Amortization of deferred policy acquisition costs | 309,152 | 238,416 | (385,561) |
General, administrative and other expenses | 313,471 | 394,248 | 402,679 |
Total benefits and expenses | 908,639 | 980,857 | (70,182) |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 164,932 | 259,371 | 1,180,464 |
Total income tax expense (benefit) | (8,285) | 8,604 | 332,372 |
NET INCOME | 173,217 | 250,767 | 848,092 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (54) | (63) | 5 |
Net unrealized investment gains (losses): | |||
Unrealized investment gains (losses) for the period | (54,279) | 35,931 | (108,769) |
Reclassification adjustment for gains included in net income | (4,831) | (14,706) | (8,805) |
Net unrealized investment gains (losses) | (59,110) | 21,225 | (117,574) |
Other comprehensive income (loss), before tax: | (59,164) | 21,162 | (117,569) |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | |||
Foreign currency translation adjustments | (19) | (23) | 2 |
Net unrealized investment gains (losses) | (20,689) | 7,430 | (41,151) |
Total | (20,708) | 7,407 | (41,149) |
Other comprehensive income (loss), net of taxes | (38,456) | 13,755 | (76,420) |
COMPREHENSIVE INCOME | $ 134,761 | $ 264,522 | $ 771,672 |
Statements of Equity
Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Equity |
Balance at Dec. 31, 2012 | $ 2,500 | $ 893,336 | $ 200,754 | $ 147,287 | $ 1,243,877 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 8,086 | 8,086 | ||||
Dividend to parent | (284,000) | (284,000) | ||||
Comprehensive income: | ||||||
Net income | $ 848,092 | 848,092 | 848,092 | |||
Other comprehensive income (loss), net of taxes | (76,420) | (76,420) | (76,420) | |||
Total comprehensive income | 771,672 | |||||
Balance at Dec. 31, 2013 | 2,500 | 901,422 | 764,846 | 70,867 | 1,739,635 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to parent | (342,000) | (342,000) | ||||
Comprehensive income: | ||||||
Net income | 250,767 | 250,767 | 250,767 | |||
Other comprehensive income (loss), net of taxes | 13,755 | 13,755 | 13,755 | |||
Total comprehensive income | 264,522 | |||||
Balance at Dec. 31, 2014 | 2,500 | 901,422 | 673,613 | 84,622 | 1,662,157 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to parent | (450,000) | (450,000) | ||||
Comprehensive income: | ||||||
Net income | 173,217 | 173,217 | 173,217 | |||
Other comprehensive income (loss), net of taxes | $ (38,456) | (38,456) | (38,456) | |||
Total comprehensive income | 134,761 | |||||
Balance at Dec. 31, 2015 | $ 2,500 | $ 901,422 | $ 396,830 | $ 46,166 | $ 1,346,918 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 173,217 | $ 250,767 | $ 848,092 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Policy charges and fee income | 907 | 3,491 | 10,678 |
Realized investment (gains) losses, net | (6,052) | (7,368) | 184,351 |
Depreciation and amortization | 37,530 | 1,402 | 11,032 |
Interest credited to policyholders’ account balances | 225,555 | 211,058 | (117,027) |
Change in: | |||
Future policy benefits and other policyholder liabilities | 238,052 | 324,284 | 218,861 |
Accrued investment income | 2,393 | 7,161 | 12,487 |
Net payable to/receivable from parent and affiliates | 61,252 | (26,936) | (40,051) |
Deferred sales inducements | 38,380 | (11,515) | (31,370) |
Deferred policy acquisition costs | 381,480 | 235,612 | (389,611) |
Income taxes | (3,426) | (67,163) | 330,049 |
Reinsurance recoverables | (270,868) | (273,480) | (275,321) |
Bonus reserve | (38,768) | (115,700) | (27,593) |
Derivatives, net | 21,581 | (415) | (37,654) |
Deferred loss on reinsurance | (118,028) | 0 | 0 |
Other, net | (3,508) | (1,804) | (17,627) |
Cash flows from operating activities | 739,697 | 529,394 | 679,296 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 486,648 | 996,083 | 1,484,339 |
Commercial mortgage and other loans | 89,344 | 20,988 | 109,242 |
Trading account assets | 3,765 | 4,900 | 7,690 |
Policy loans | 1,257 | 753 | 752 |
Other long-term investments | 3,764 | (1,650) | 1,973 |
Short-term investments | 2,318,219 | 2,637,788 | 3,220,082 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (336,954) | (494,947) | (743,854) |
Commercial mortgage and other loans | (106,185) | (43,859) | (80,319) |
Trading account assets | (3,681) | (4,312) | (5,469) |
Policy loans | (644) | (943) | (538) |
Other long-term investments | (3,994) | (14,691) | (12,969) |
Short-term investments | (2,419,261) | (2,576,786) | (3,234,508) |
Notes payable to/receivable from parent and affiliates, net | 3,110 | (12,524) | (2,224) |
Derivatives, net | (6,528) | 1,682 | 6,068 |
Other, net | 1,070 | (1,674) | (6,258) |
Cash flows from investing activities | 29,930 | 510,808 | 744,007 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Cash collateral for loaned securities | 5,283 | (42,612) | 8,920 |
Repayments of debt (maturities longer than 90 days) | 0 | (200,000) | (200,000) |
Net increase (decrease) in short-term borrowing | (53,354) | 49,354 | 5,000 |
Drafts outstanding | (1,663) | (6,410) | 1,577 |
Distribution to parent | (450,000) | (342,000) | (284,000) |
Contributed capital | 0 | 0 | 12,439 |
Policyholders’ account deposits | 1,295,546 | 1,375,761 | 1,102,020 |
Policyholders’ account withdrawals | (1,511,470) | (1,875,118) | (2,068,108) |
Policyholders’ account ceded | (54,027) | 0 | 0 |
Cash flows used in financing activities | (769,685) | (1,041,025) | (1,422,152) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (58) | (823) | 1,151 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 594 | 1,417 | 266 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 536 | 594 | 1,417 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid, net of refunds | (4,858) | 75,745 | 2,325 |
Interest paid | $ 68 | $ 8,657 | $ 16,955 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Annuities Life Assurance Corporation (the “Company” or “PALAC”), with its principal offices in Shelton, Connecticut, is an indirect wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), a New Jersey corporation. The Company is a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial. The Company developed long-term savings and retirement products, which were distributed through its affiliated broker/dealer company, Prudential Annuities Distributors, Incorporated (“PAD”). The Company issued variable deferred and immediate annuities for individuals and groups in the United States of America, District of Columbia and Puerto Rico. In addition, the Company has a relatively small in force block of variable life insurance policies. The Company no longer actively sells such products. Beginning in March 2010, the Company ceased offering its variable annuity products (and where offered, the companion market value adjustment option) to new investors upon the launch of a new product line by each of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (which are affiliates of the Company). These initiatives were implemented to create operational and administrative efficiencies by offering a single product line of annuity products from a more limited group of legal entities. During 2012, the Company suspended additional customer deposits for variable annuities with certain optional living benefit riders. However, subject to applicable contract provisions and administrative rules, the Company continues to accept additional customer deposits on certain in force contracts. The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing long-term savings and retirement products, including insurance products, and individual and group annuities. On August 31, 2013, the Company redomesticated from Connecticut to Arizona. As a result of the redomestication, the Company is now an Arizona insurance company and its principal insurance regulatory authority is the Arizona Department of Insurance. Additionally, the Company is now domiciled in the same jurisdiction as the primary reinsurer of the Company’s living benefits, Pruco Reinsurance, Ltd. (“Pruco Re”), which is also regulated by the Arizona Department of Insurance. This change enables the Company to claim statutory reserve credit for business ceded to Pruco Re without the need for Pruco Re to collateralize its obligations under the reinsurance agreement. In the fourth quarter of 2015, the Company surrendered its New York license. The Company recaptured the New York living benefits previously ceded to Pruco Re, and reinsured the majority of its New York business, both the living benefit and base contract, to an affiliate, The Prudential Insurance Company of America (“Prudential Insurance”). The license surrender relieves the Company of the requirement to hold additional New York statutory reserves mandated by the fourth quarter of 2014 agreement with the New York State Department of Financial Services (“NY DFS”). For the small portion of New York business retained by the Company, a custodial account has been established to hold collateral assets in an amount equal to the reserves associated with such business, as calculated in accordance with the reserve methodologies of the NY DFS. Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). 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; value of business acquired and its 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 matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Investments and Investment Related Liabilities The Company’s principal investments are fixed maturities, equity securities, commercial mortgage and other loans, policy loans, other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate, and short-term investments. Investments and investment-related liabilities also include securities repurchase and resale agreements and securities lending transactions. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, as well as the related amortization of premium and accretion of discount is included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the security are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, and the effect on deferred policy acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), and future policy benefits that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets , at fair value represents equity securities and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value are comprised of mutual fund shares and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, and future policy benefits that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are recognized in “Net investment income” when earned. Commercial mortgage and other loans consist of commercial mortgage loans, agricultural loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, as well as prepayment fees and the amortization of the related premiums or discounts, related to commercial mortgage and other loans, are included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans, as well as, loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of three categories. Loans are placed on “early warning” status in cases where, based on the Company’s analysis of the loan’s collateral, the financial situation of the borrower or tenants or other market factors, it is believed a loss of principal or interest could occur. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A smaller loan-to-value ratio indicates a greater excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A larger debt service coverage ratio indicates a greater excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural loan portfolio, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios considers the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed each quarter and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down to the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consist of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are either accounted for using the equity method of accounting or under the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investment 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 or the cost method (including assessment for other-than-temporary impairment), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sale of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net other-than-temporary impairments recognized in earnings. Realized investment gains and losses are also generated from prepayment premiums received on private fixed maturity securities, allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify other-than-temporary impairments in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (a) has the intent to sell the debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment an other-than-temporary impairment is recognized. When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the other-than-temporary impairment recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For other-than-temporary impairments of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. For debt securities, the split between the amount of an other-than-temporary impairment recognized in other comprehensive income and the net amount recognized in earnings is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities, are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 13. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. Deferred Sales Inducements The Company offered various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 7 for additional information regarding sales inducements. Value of Business Acquired As a result of certain acquisitions and the application of purchase accounting, the Company reports a financial asset representing VOBA. VOBA represents an adjustment to the stated value of in force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which it was acquired. The Company has established a VOBA asset primarily for its acquisition of American Skandia Life Assurance Corporation. For acquired annuity contracts, VOBA is amortized in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. See Note 5 for additional information regarding VOBA. Reinsurance recoverables Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13. Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders. “Separate account assets” are predominantly shares in Advanced Series Trust co-managed by AST Investment Services, Incorporated (“ASISI”) and Prudential Investments LLC, which utilizes various fund managers as sub-advisors. The remaining assets are shares in other mutual funds, which are managed by independent investment firms. The contractholder has the option of directing funds to a wide variety of investment options, most of which invest in mutual funds. The investment risk on the variable portion of a contract is borne by the contractholder, except to the extent of minimum guarantees by the Company, which are not separate account liabilities. See Note 7 to the Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees and other income.” Other Assets and Other Liabilities “Other assets” consist primarily of accruals for asset administration fees and deferral of a loss on reinsurance with an affiliate. “Other assets” also consist of state insurance licenses. Licenses to do business in all states have been capitalized. Based on changes in facts and circumstances, effective September 30, 2012, the capitalized state insurance licenses were considered to have a finite life and are amortized over their useful life, which was estimated to be 8 years . Amortization is recorded through “General, administrative and other expenses.” “Other liabilities” consist primarily of accrued expenses and technical overdrafts. Other liabilities may also include derivative instruments for which fair values are determined as described above under “Derivative Financial Instruments”. Future Policy Benefits The Company’s liability for future policy benefits is primarily comprised of liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 7. These reserves represent reserves for the guaranteed minimum death and optional living benefit features on the Company’s variable annuity products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 10. The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. Securities repurchase and resale agreements and securities loaned transactions Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2015 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 $ 12,233 $ 28 $ 107 $ 12,154 $ 0 Obligations of U.S. states and their political subdivisions 20,116 474 378 20,212 0 Foreign government bonds 43,188 6,123 28 49,283 0 Public utilities 203,803 15,969 4,263 215,509 0 All other U.S. public corporate securities 818,627 52,866 7,717 863,776 0 All other U.S. private corporate securities 494,640 30,996 4,407 521,229 0 All other foreign public corporate securities 132,414 3,781 608 135,587 0 All other foreign private corporate securities 219,009 2,487 15,842 205,654 0 Asset-backed securities (1) 149,196 2,786 692 151,290 (35 ) Commercial mortgage-backed securities 211,429 4,963 652 215,740 0 Residential mortgage-backed securities (2) 128,971 4,886 19 133,838 (7 ) Total fixed maturities, available-for-sale $ 2,433,626 $ 125,359 $ 34,713 $ 2,524,272 $ (42 ) Equity securities, available-for-sale Common stocks: Public utilities $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 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, 2014 (4) 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 $ 6,324 $ 22 $ 10 $ 6,336 $ 0 Obligations of U.S. states and their political subdivisions 69,486 1,323 20 70,789 0 Foreign government bonds 29,738 7,621 4 37,355 0 Public utilities 198,277 19,909 1,593 216,593 0 All other U.S. public corporate securities 918,368 81,539 1,944 997,963 0 All other U.S. private corporate securities 512,793 48,451 528 560,716 0 All other foreign public corporate securities 110,909 8,438 35 119,312 0 All other foreign private corporate securities 201,040 8,444 2,384 207,100 0 Asset-backed securities (1) 144,324 5,078 391 149,011 (39 ) Commercial mortgage-backed securities 291,868 10,523 206 302,185 (10 ) Residential mortgage-backed securities (2) 126,126 7,113 6 133,233 (36 ) Total fixed maturities, available-for-sale $ 2,609,253 $ 198,461 $ 7,121 $ 2,800,593 $ (85 ) Equity securities, available-for-sale Common stocks: Public utilities $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 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. (4) Prior period amounts are presented on a basis consistent with the current period presentation. The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2015 , are as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 206,605 $ 201,762 Due after one year through five years 812,798 840,843 Due after five years through ten years 524,967 548,689 Due after ten years 399,660 432,110 Asset-backed securities 149,196 151,290 Commercial mortgage-backed securities 211,429 215,740 Residential mortgage-backed securities 128,971 133,838 Total $ 2,433,626 $ 2,524,272 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 are not due at a single maturity date. The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: 2015 2014 2013 (in thousands) Fixed maturities, available-for-sale Proceeds from sales $ 33,604 $ 308,458 $ 314,415 Proceeds from maturities/repayments 453,016 681,426 1,175,680 Gross investment gains from sales, prepayments and maturities 5,788 18,110 18,619 Gross investment losses from sales and maturities (937 ) (3,404 ) (9,824 ) Equity securities, available-for-sale Proceeds from sales $ 0 $ 192 $ 14 Gross investment gains from sales 0 1 10 Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings (1) $ (20 ) $ 0 $ 0 Writedowns for impairments on equity securities 0 0 0 (1) Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” 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. As discussed in Note 2, a portion of certain OTTI losses on fixed maturity securities is recognized in “Other comprehensive income (loss)" (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts. Year Ended December 31, 2015 2014 (in thousands) Balance, beginning of period $ 93 $ 1,800 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (17 ) (1,682 ) Additional credit loss impairments recognized in the current period on securities previously impaired 20 0 Increases due to the passage of time on previously recorded credit losses 0 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (10 ) (25 ) Balance, end of period $ 86 $ 93 Trading Account Assets The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2015 December 31, 2014 Cost Fair Value Cost Fair Value (in thousands) Total trading account assets - Equity securities $ 5,618 $ 5,653 $ 5,471 $ 6,131 The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Asset administration fees and other income,” was $(0.6) million , $(0.9) million , and $0.8 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: December 31, 2015 December 31, 2014 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 136,190 31.2 % $ 143,057 34.0 % Industrial 58,621 13.5 87,088 20.7 Retail 67,358 15.5 72,226 17.2 Office 100,357 23.0 44,621 10.6 Other 18,660 4.3 14,119 3.4 Hospitality 4,963 1.1 5,081 1.2 Total commercial mortgage loans 386,149 88.6 366,192 87.1 Agricultural property loans 49,926 11.4 54,113 12.9 Total commercial mortgage and agricultural property loans by property type 436,075 100.0 % 420,305 100.0 % Valuation allowance (643 ) (482 ) Total net commercial mortgage and agricultural property loans by property type 435,432 419,823 Other loans Uncollateralized loans 2,740 2,740 Valuation allowance 0 0 Total net other loans 2,740 2,740 Total commercial mortgage and other loans $ 438,172 $ 422,563 The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States (with the largest concentrations in California ( 22% ) and New York ( 12% )) and include loans secured by properties in Europe and Australia at December 31, 2015 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: December 31, 2015 December 31, 2014 December 31, 2013 (in thousands) Allowance for credit losses, beginning of year $ 482 $ 1,256 $ 2,177 Addition to (release of) allowance for losses 161 (774 ) (921 ) Total ending balance (1) $ 643 $ 482 $ 1,256 (1) Agricultural loans represent less than $0.1 million of the ending allowance as of December 31, 2015 , 2014 and 2013 . 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: December 31, 2015 December 31, 2014 (in thousands) Allowance for Credit Losses: Individually evaluated for impairment (1) $ 0 $ 0 Collectively evaluated for impairment (2) 643 482 Total ending balance $ 643 $ 482 Recorded Investment (3): Gross of reserves: individually evaluated for impairment (1) $ 0 $ 0 Gross of reserves: collectively evaluated for impairment (2) 438,815 423,045 Total ending balance, gross of reserves $ 438,815 $ 423,045 (1) There were no loans individually evaluated for impairment at both December 31, 2015 and 2014 . (2) Agricultural loans collectively evaluated for impairment had a recorded investment of $50 million and $54 million as of December 31, 2015 and 2014 , respectively, and a related allowance of less than $0.1 million at both period ends. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $3 million at both December 31, 2015 and 2014 and no related allowance at both period ends. (3) Recorded investment reflects the balance sheet carrying value gross of related allowance. Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. There were no impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses and no related allowance for losses at both December 31, 2015 and 2014 . Impaired commercial mortgage and other loans with no allowance for losses are loans in which the fair value of the collateral or the net present value of the loans’ expected future cash flows equals or exceeds the recorded investment. The Company had no such loans at both December 31, 2015 and 2014 . See Note 2 for information regarding the Company’s accounting policies for non-performing loans. The following tables set forth certain key credit quality indicators as of December 31, 2015 and 2014, based upon the recorded investment gross of allowance for credit losses. Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio - December 31, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 303,215 $ 9,073 $ 992 $ 313,280 60%-69.99% 95,977 0 0 95,977 70%-79.99% 25,401 1,417 0 26,818 Greater than 80% 0 0 0 0 Total commercial mortgage and agricultural property loans $ 424,593 $ 10,490 $ 992 $ 436,075 Debt Service Coverage Ratio - December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 262,853 $ 4,295 $ 10,489 $ 277,637 60%-69.99% 115,708 468 0 116,176 70%-79.99% 25,034 1,458 0 26,492 Greater than 80% 0 0 0 0 Total commercial mortgage and agricultural property loans $ 403,595 $ 6,221 $ 10,489 $ 420,305 As of both December 31, 2015 and 2014 , all commercial mortgage and other loans were in current status. The Company defines current in its aging of past due commercial mortgage and other loans as less than 30 days past due. Based upon the recorded investment gross of allowance for credit losses, there were no commercial mortgage and other loans in nonaccrual status as of both December 31, 2015 and 2014 . Nonaccrual loans are those on which the accrual of interest has been suspended after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability and loans for which a loan-specific reserve has been established. See Note 2 for further discussion regarding nonaccrual status loans. For the years ended December 31, 2015 and 2014 , there were no commercial mortgage and other loans acquired, other than those through direct origination, nor were there any commercial mortgage and other loans sold. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2015 and 2014 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. As of both December 31, 2015 and 2014 , there were no new troubled debt restructurings related to commercial mortgage and other loans, and no payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the twelve months preceding. See Note 2 for additional information relating to the accounting for troubled debt restructurings. As of both December 31, 2015 and 2014 , the Company did not have any foreclosed residential real estate property. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments” at December 31, for the years indicated. 2015 2014 (in thousands) Joint ventures and limited partnerships $ 66,890 $ 68,225 Derivatives 115,267 94,558 Total other long-term investments $ 182,157 $ 162,783 As of both December 31, 2015 and 2014 , the Company had no significant equity method investments. Net Investment Income Net investment income for the years ended December 31, was from the following sources: 2015 2014 2013 (in thousands) Fixed maturities, available-for-sale $ 115,998 $ 140,114 $ 191,043 Equity securities, available-for-sale 0 0 0 Trading account assets 349 325 342 Commercial mortgage and other loans 22,696 21,802 28,463 Policy loans 794 739 675 Short-term investments 396 281 323 Other long-term investments 4,638 6,492 3,601 Gross investment income 144,871 169,753 224,447 Less: investment expenses (5,441 ) (5,742 ) (6,564 ) Net investment income $ 139,430 $ 164,011 $ 217,883 There were no non-income producing assets as of December 31, 2015 . Non-income producing assets represent investments that have not produced income for the twelve months preceding December 31, 2015 . As of both December 31, 2015 and 2014 , the Company had no low income housing tax credit investments. Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2015 2014 2013 (in thousands) Fixed maturities $ 4,831 $ 14,706 $ 8,795 Equity securities 0 1 10 Commercial mortgage and other loans (161 ) 774 933 Derivatives 1,381 (8,113 ) (194,055 ) Other 1 0 (34 ) Realized investment gains (losses), net $ 6,052 $ 7,368 $ (184,351 ) Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of "Accumulated other comprehensive income (loss)” for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at, December 31, 2012 $ 7 $ 147,280 $ 147,287 Change in component during period (2) 3 (76,423 ) (76,420 ) Balance at, December 31, 2013 $ 10 $ 70,857 $ 70,867 Change in component during period (2) (40 ) 13,795 13,755 Balance at, December 31, 2014 $ (30 ) $ 84,652 $ 84,622 Change in other comprehensive income before reclassifications (54 ) (54,279 ) (54,333 ) Amounts reclassified from AOCI 0 (4,831 ) (4,831 ) Income tax benefit (expense) 19 20,689 20,708 Balance at, December 31, 2015 $ (65 ) $ 46,231 $ 46,166 (1) Includes cash flow hedges of $14.8 million , $5.0 million , and $(4.0) million as of December 31, 2015 , 2014 , and 2013 , respectively. (2) Net of taxes. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate (3) $ 2,070 $ 148 $ (95 ) Net unrealized investment gains (losses) on available-for-sale securities 2,761 14,558 8,900 Total net unrealized investment gains (losses) (4) 4,831 14,706 8,805 Total reclassifications for the period $ 4,831 $ 14,706 $ 8,805 (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 11 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 and other costs and future policy benefits. Net Unrealized Investment Gains (Losses) Net unrealized investment gains and losses on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s 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 and losses, are as follows: Net Unrealized Investment Gains and 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 Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2012 $ 545 $ (214 ) $ 0 $ (100 ) $ 231 Net investment gains (losses) on investments arising during the period 483 0 0 (168 ) 315 Reclassification adjustment for (gains) losses included in net income (705 ) 0 0 247 (458 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 98 0 (35 ) 63 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (14 ) 5 (9 ) Balance, December 31, 2013 $ 323 $ (116 ) $ (14 ) $ (51 ) $ 142 Net investment gains (losses) on investments arising during the period (11 ) 0 0 4 (7 ) Reclassification adjustment for (gains) losses included in net income (311 ) 0 0 109 (202 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 116 0 (41 ) 75 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 14 (5 ) 9 Balance, December 31, 2014 $ 1 $ 0 $ 0 $ 16 $ 17 Net investment gains (losses) on investments arising during the period (9 ) 0 0 3 (6 ) Reclassification adjustment for (gains) losses included in net income 17 0 0 (6 ) 11 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (3 ) 0 1 (2 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 0 0 0 Balance, December 31, 2015 $ 9 $ (3 ) $ 0 $ 14 $ 20 All Other Net Unrealized Investment Gains and Losses in AOCI Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2012 $ 376,777 $ (147,089 ) $ (2,164 ) $ (80,468 ) $ 147,056 Net investment gains (losses) on investments arising during the period (183,950 ) 0 0 64,383 (119,567 ) Reclassification adjustment for (gains) losses included in net income (8,100 ) 0 0 2,835 (5,265 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 80,637 0 (28,222 ) 52,415 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (6,023 ) 2,109 (3,914 ) Balance, December 31, 2013 $ 184,727 $ (66,452 ) $ (8,187 ) $ (39,363 ) $ 70,725 Net investment gains (losses) on investments arising during the period 28,590 0 0 (10,013 ) 18,577 Reclassification adjustment for (gains) losses included in net income (14,395 ) 0 0 5,036 (9,359 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 7,407 0 (2,594 ) 4,813 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (185 ) 64 (121 ) Balance, December 31, 2014 $ 198,922 $ (59,045 ) $ (8,372 ) $ (46,870 ) $ 84,635 Net investment gains (losses) on investments arising during the period (86,623 ) 0 0 30,319 (56,304 ) Reclassification adjustment for (gains) losses included in net income (4,848 ) 0 0 1,697 (3,151 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 28,580 0 (10,003 ) 18,577 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 3,776 (1,322 ) 2,454 Balance, December 31, 2015 $ 107,451 $ (30,465 ) $ (4,596 ) $ (26,179 ) $ 46,211 (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: 2015 2014 2013 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 9 $ 1 $ 323 Fixed maturity securities, available-for-sale - all other 90,637 191,339 184,891 Equity securities, available-for-sale 3 3 2 Affiliated notes 1,660 2,351 3,113 Derivatives designated as cash flow hedges (1) 14,847 4,839 (3,653 ) Other investments 304 390 374 Net unrealized gains (losses) on investments $ 107,460 $ 198,923 $ 185,050 (1) See Note 11 for more information on cash flow hedges. Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31, for the years indicated: 2015 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 $ 8,480 $ 107 $ 0 $ 0 $ 8,480 $ 107 Obligations of U.S. states and their political subdivisions 6,887 378 0 0 6,887 378 Foreign government bonds 13,616 28 0 0 13,616 28 Public utilities 49,104 1,421 14,217 2,842 63,321 4,263 All other U.S. public corporate securities 207,578 6,297 29,828 1,420 237,406 7,717 All other U.S. private corporate securities 84,318 4,020 3,550 387 87,868 4,407 All other foreign public corporate securities 76,573 608 0 0 76,573 608 All other foreign private corporate securities 38,047 1,972 85,341 13,870 123,388 15,842 Asset-backed securities 50,195 430 26,359 262 76,554 692 Commercial mortgage-backed securities 55,065 642 833 10 55,898 652 Residential mortgage-backed securities 2,141 19 0 0 2,141 19 Total $ 592,004 $ 15,922 $ 160,128 $ 18,791 $ 752,132 $ 34,713 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 2014 (1) 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 $ 2,676 $ 10 $ 0 $ 0 $ 2,676 $ 10 Obligations of U.S. states and their political subdivisions 0 0 7,305 20 7,305 20 Foreign government bonds 4,632 4 0 0 4,632 4 Public utilities 18,222 1,321 2,174 272 20,396 1,593 All other U.S. public corporate securities 144,106 1,525 6,569 419 150,675 1,944 All other U.S. private corporate securities 44,014 518 2,834 10 46,848 528 All other foreign public corporate securities 26,193 35 0 0 26,193 35 All other foreign private corporate securities 46,101 2,384 0 0 46,101 2,384 Asset-backed securities 31,756 58 32,732 333 64,488 391 Commercial mortgage-backed securities 4,309 108 7,377 98 11,686 206 Residential mortgage-backed securities 342 6 0 0 342 6 Total $ 322,351 $ 5,969 $ 58,991 $ 1,152 $ 381,342 $ 7,121 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 (1) Prior period amounts are presented on a basis consistent with the current period presentation. The gross unrealized losses on fixed maturity securities at December 31, 2015 and 2014 , are composed of $22.6 million and $4.0 million , respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $12.1 million and $3.1 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2015 , the $18.8 million of gross unrealized losses of twelve months or more were concentrated in consumer non-cyclical, capital goods, utility and finance sectors of the Company’s corporate securities. At December 31, 2014 , the $1.2 million of gross unrealized losses of twelve months or more were concentrated in asset-backed securities and the energy and utility sectors of the Company’s corporate securities. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at December 31, 2015 or 2014 . These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to general credit spread widening and foreign currency exchange rate movements. At December 31, 2015 , the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of its remaining amortized cost basis. Sec urities Lending and Repurchase Agreements In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of December 31, 2015 , the Company had $11 million of securities lending transactions recorded as "Cash collateral loaned for securities," all of which were corporate securities. The remaining contractual maturity of all securities lending transactions is overnight and continuous. As of December 31, 2015 , the Company had no repurchase transactions. Securities Pledged and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. At December 31, the carrying value of investments pledged to third parties as reported in the Statements of Financial Position included the following: 2015 2014 (in thousands) Fixed maturity securities, available-for-sale $ 10,218 $ 5,098 Trading account assets 0 0 Total securities pledged $ 10,218 $ 5,098 As of December 31, 2015 and 2014 , the carrying amount of the associated liabilities supported by the pledged collateral was $11 million and $5 million , respectively, all of which was “Cash collateral for loaned securities.” In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. There was no such collateral as of December 31, 2015 and 2014 . Fixed maturities of $8 million and $7 million at December 31, 2015 and 2014 , respectively, were on deposit with governmental authorities or trustees as required by certain insurance laws. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2015 2014 2013 (in thousands) Balance, beginning of year $ 1,114,431 $ 1,345,504 $ 906,814 Capitalization of commissions, sales and issue expenses 1,535 2,804 4,050 Amortization-Impact of assumption and experience unlocking and true-ups 33,113 91,895 31,666 Amortization-All other (342,265 ) (330,311 ) 353,895 Changes in unrealized investment gains and losses 16,352 4,539 49,079 Ceded DAC upon Reinsurance Treaty with Prudential Insurance (1) (73,864 ) 0 0 Balance, end of year $ 749,302 $ 1,114,431 $ 1,345,504 (1) See Note 1 for further details. |
Value of Business Acquired
Value of Business Acquired | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Value of Business Acquired | VALUE OF BUSINESS ACQUIRED Details of VOBA and related interest and gross amortization for the years ended December 31, are as follows: 2015 2014 2013 (in thousands) Balance, beginning of year $ 39,738 $ 43,500 $ 43,090 Amortization-Impact of assumption and experience unlocking and true-ups (1) 3,412 5,412 6,376 Amortization-All other (1) (10,477 ) (11,181 ) (11,593 ) Interest (2) 2,436 2,615 2,762 Change in unrealized investment gains and losses 1,163 (608 ) 2,865 Ceded VOBA upon Reinsurance Treaty with Prudential Insurance (3) (2,632 ) 0 0 Balance, end of year $ 33,640 $ 39,738 $ 43,500 (1) The weighted average remaining expected life of VOBA was approximately 5.22 years as of December 31, 2015 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 6.05% , 6.1% and 6.14% for the years ended December 31, 2015 , 2014 and 2013 . (3) See Note 1 for further details. The following table provides estimated future amortization, net of interest, for the periods indicated (in thousands): 2016 2017 2018 2019 2020 (in thousands) Estimated future VOBA amortization $ 5,570 $ 4,797 $ 4,171 $ 3,510 $ 2,956 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company utilizes both affiliated and unaffiliated reinsurance arrangements. On its unaffiliated arrangements, the Company uses primarily modified coinsurance reinsurance arrangements whereby the reinsurer shares in the experience of a specified book of business. These reinsurance transactions result in the Company receiving from the reinsurer an upfront ceding commission on the book of business ceded in exchange for the reinsurer receiving in the future, a percentage of the future fees and benefits generated from that book of business. Such transfer does not relieve the Company of its primary liability and, as such, failure of reinsurers to honor their obligation could result in losses to the Company. The Company reduces this risk by evaluating the financial condition and credit worthiness of reinsurers. On its affiliated arrangements, the Company uses automatic and modified coinsurance reinsurance arrangements. These agreements cover all significant risks under features of the policies reinsured. The Company is not relieved of its primary obligation to the policyholder as a result of these reinsurance transactions. These affiliated agreements include the reinsurance of the Company’s guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) features. These features are accounted for as embedded derivatives, and changes in the fair value of the embedded derivative are recognized through “Realized investment gains (losses), net.” Please see Note 13 for further details around the affiliated reinsurance agreements. The effect of reinsurance for the years ended December 31, 2015 , 2014 and 2013 , was as follows: Gross Unaffiliated Ceded Affiliated Ceded Net (in thousands) 2015 Policy charges and fee income - Life (1) $ 3,416 $ (1,701 ) $ 0 $ 1,715 Policy charges and fee income - Annuity 740,540 (1,432 ) 0 739,108 Realized investment gains (losses), net 247,525 0 (241,473 ) 6,052 Policyholders’ benefits 60,535 (74 ) 0 60,461 General, administrative and other expenses $ 317,928 $ (682 ) $ (3,775 ) $ 313,471 2014 Policy charges and fee income - Life (1) $ 3,522 $ (856 ) $ 0 $ 2,666 Policy charges and fee income - Annuity 805,550 (1,889 ) 0 803,661 Realized investment gains (losses), net (1,967,588 ) 0 1,974,956 7,368 Policyholders’ benefits 137,502 (367 ) 0 137,135 General, administrative and other expenses $ 398,960 $ (838 ) $ (3,874 ) $ 394,248 2013 Policy charges and fee income - Life (1) $ 3,472 $ (1,231 ) $ 0 $ 2,241 Policy charges and fee income - Annuity 809,549 (2,548 ) 0 807,001 Realized investment gains (losses), net 1,076,184 0 (1,260,535 ) (184,351 ) Policyholders’ benefits 29,874 (147 ) 0 29,727 General, administrative and other expenses $ 407,365 $ (776 ) $ (3,910 ) $ 402,679 (1) Life insurance in force face amounts at December 31, 2015 , 2014 and 2013 was $113 million , $ 121 million and $128 million , respectively. The Company’s Statements of Financial Position also included reinsurance recoverables from Pruco Re and Prudential Insurance of $3,088 million at December 31, 2015 and $ 2,997 million at December 31, 2014 . See Note 1 for a discussion of the of the fourth quarter 2015 reinsurance treaty related to the Company's New York license surrender. |
Certain Long-Duration Contracts
Certain Long-Duration Contracts With Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company has issued variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company has also issued variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract less any partial withdrawals (“return of net deposits”), (2) total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”), or (3) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company has issued annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed-rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are allocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company issued fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or "Realized investment gains (losses), net." For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits and other policyholder liabilities.” As of December 31, 2015 and 2014 , the Company had the following guarantees associated with its contracts, by product and guarantee type: December 31, 2015 December 31, 2014 In the Event of Death At Annuitization/ Accumulation (1) In the Event of Death At Annuitization/ Accumulation (1) Variable Annuity Contracts (in thousands) Return of net deposits Account value $ 34,305,352 N/A $ 38,410,155 N/A Net amount at risk $ 341,707 N/A $ 353,902 N/A Average attained age of contractholders 66 years N/A 65 years N/A Minimum return or contract value Account value $ 6,976,880 $ 34,565,409 $ 7,886,833 $ 38,471,465 Net amount at risk $ 1,194,988 $ 2,257,837 $ 916,016 $ 1,358,023 Average attained age of contractholders 68 years 66 years 67 years 64 years Average period remaining until expected annuitization N/A 0.0 years N/A 0.1 years (1) Includes income and withdrawal benefits described herein. December 31, 2015 December 31, 2014 Unadjusted Value Adjusted Value Unadjusted Value Adjusted Value Variable Annuity Contracts (in thousands) Market value adjusted annuities Account value $ 1,056,235 $ 1,053,952 $ 1,244,131 $ 1,251,084 Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2015 December 31, 2014 (in thousands) Equity funds $ 24,639,438 $ 28,191,315 Bond funds 12,264,741 12,844,788 Money market funds 2,081,684 2,783,023 Total $ 38,985,863 $ 43,819,126 In addition to the above mentioned amounts invested in separate account investment options, $2.3 billion and $2.5 billion of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options as of December 31, 2015 and 2014 , respectively. For the years ended December 31, 2015 , 2014 and 2013 , there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits and other policyholder liabilities” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative are recorded in “Realized investment gains (losses), net.” See Note 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The liabilities for GMAB, GMWB and GMIWB are included in “Future policy benefits and other policyholder liabilities.” The Company and its reinsurance affiliates maintain a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. GMDB GMAB/GMWB/ GMIWB GMIB Totals Variable Annuity (in thousands) Balance as of December 31, 2012 $ 222,527 $ 1,793,135 $ 23,516 $ 2,039,178 Incurred guarantee benefits (1) (3,191 ) (1,014,909 ) (11,650 ) (1,029,750 ) Paid guarantee benefits (27,507 ) 0 (747 ) (28,254 ) Changes in unrealized investment gains and losses 8,041 0 160 8,201 December 31, 2013 199,870 778,226 11,279 989,375 Incurred guarantee benefits (1) 81,524 2,334,185 8,506 2,424,215 Paid guarantee benefits (25,909 ) 0 (724 ) (26,633 ) Changes in unrealized investment gains and losses 128 0 43 171 December 31, 2014 255,613 3,112,411 19,104 3,387,128 Incurred guarantee benefits (1) 43,167 21,666 (4,616 ) 60,217 Paid guarantee benefits (29,240 ) 0 (511 ) (29,751 ) Changes in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) December 31, 2015 $ 265,877 $ 3,134,077 $ 13,864 $ 3,413,818 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserve as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as derivatives. The GMDB liability is determined each period end by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the death benefits in excess of the account balance. The GMIB liability associated with variable annuities is determined each period by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the projected income benefits in excess of the account balance. The portion of assessments used is chosen such that, at issue the present value of expected death benefits or expected income benefits in excess of the projected account balance and the portion of the present value of total expected assessments over the lifetime of the contracts are equal. The Company regularly evaluates the estimates used and adjusts the GMDB and GMIB liability balances with an associated charge or credit to earnings, if actual experience or other evidence suggests that earlier estimates should be revised. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option (“GRO”) features, which include an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of account balance less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then-current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs) in general guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an asset transfer feature that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. As part of its risk management strategy, the Company limits its exposure to these risks through a combination of product design elements, such as an asset transfer feature, and affiliated reinsurance agreements. The asset transfer feature, included in the design of certain optional living benefits, transfers assets between certain variable investments selected by the annuity contractholder and, depending on the benefit feature, a fixed rate account in the general account or a bond portfolio within the separate accounts. The transfers are based on the static mathematical formula, used with the particular optional benefit, which considers a number of factors, including, but not limited to, the impact of investment performance of the contractholder total account value. In general, but not always, negative investment performance may result in transfers to a fixed-rate account in the general account or a bond portfolio within the separate accounts, and positive investment performance may result in transfers back to contractholder-selected variable investments. Other product design elements utilized for certain products to manage these risks include asset allocation restrictions and minimum issuance age requirements. For risk management purposes, the Company segregates the variable annuity living benefit features into those that include the asset transfer feature including certain GMIWB riders and certain GMAB riders that feature the GRO policyholder benefits, and those that do not include the asset transfer feature, including certain legacy GMIWB, GMWB, GMAB and GMIB riders. Living benefit riders that include the asset transfer feature also include GMDB riders, and as such, the GMDB risk in these riders also benefits from this feature. Sales Inducements The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Deferred sales inducements” in the Company’s Statements of Financial Position. The Company offered various types of sales inducements. These inducements include: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (2) additional credits after a certain number of years a contract is held. Changes in DSI, reported as “Interest credited to policyholders’ account balances”, are as follows: Sales Inducements (in thousands) Balance as of December 31, 2012 $ 556,830 Capitalization 31,370 Amortization - Impact of assumption and experience unlocking and true-ups 13,038 Amortization - All other 179,219 Change in unrealized investment gains and losses 28,790 Balance as of December 31, 2013 809,247 Capitalization 11,515 Amortization - Impact of assumption and experience unlocking and true-ups 45,417 Amortization - All other (204,563 ) Change in unrealized investment gains and losses 3,591 Balance as of December 31, 2014 665,207 Capitalization 873 Amortization - Impact of assumption and experience unlocking and true-ups 21,125 Amortization - All other (206,263 ) Change in unrealized investment gains and losses 11,063 Ceded DSI upon Reinsurance Treaty with Prudential Insurance (1) (39,253 ) Balance as of December 31, 2015 $ 452,752 (1) See Note 1 for further details. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | |
Statutory Net Income and Surplus and Dividend Restrictions | STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the State of Arizona Insurance Department. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes and certain assets on a different basis. Statutory net income of the Company amounted to $340 million , $393 million and $406 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Statutory surplus of the Company amounted to $482 million and $606 million at December 31, 2015 and 2014 , respectively. The Company is subject to Arizona law which limits the amount of dividends that insurance companies can pay to its stockholder. The maximum dividend, which may be paid in any twelve month period without notification or approval, is limited to the lesser of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, there is a capacity to pay a dividend of $48 million after December 22, 2015, without prior approval. On December 22, 2015 and June 29, 2015, the Company paid dividends of $180 million and $270 million , respectively, to its parent, PAI. On December 19, 2014 and June 27, 2014, the Company paid dividends of $75 million and $267 million , respectively, to PAI. On December 16, 2013 and June 26, 2013, the Company paid dividends of $100 million and $184 million , respectively, to PAI. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, were as follows: 2015 2014 2013 (in thousands) Current tax expense (benefit): U.S. federal $ 76,175 $ (8,499 ) $ 36,759 State and local 0 0 0 Total 76,175 (8,499 ) 36,759 Deferred tax expense (benefit): U.S. federal (84,460 ) 17,103 295,613 State and local 0 0 0 Total (84,460 ) 17,103 295,613 Total income tax expense (benefit) (8,285 ) 8,604 332,372 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (20,708 ) 7,407 (41,149 ) Additional paid-in capital 0 0 4,354 Total income tax expense (benefit) $ (28,993 ) $ 16,011 $ 295,577 In July 2014, IRS issued guidance relating to the hedging of variable annuity guaranteed minimum benefits (“Hedging IDD”). The Hedging IDD provides an elective safe harbor tax accounting method for certain contracts which permits the current deduction of losses and the deferral of gains for hedging activities that can be applied to open years under IRS examination beginning with the earliest open year. The Company will apply this tax accounting method for hedging gains and losses covered by the Hedging IDD beginning with 2013. As a result of applying such accounting method in 2014, the Company’s 2014 U.S. current tax includes a tax benefit of $59 million and a corresponding reduction of deferred tax assets. The Company’s actual income tax expense on continuing operations for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes for the following reasons: 2015 2014 2013 (in thousands) Expected federal income tax expense (benefit) $ 57,727 $ 90,780 $ 413,162 Non taxable investment income (56,614 ) (69,122 ) (69,665 ) Tax credits (9,389 ) (13,080 ) (10,595 ) Other (9 ) 26 (529 ) Total income tax expense (benefit) $ (8,285 ) $ 8,604 $ 332,372 The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is the primary component of the non-taxable investment income shown in the table above, and, as such, is a significant component of the difference between the Company’s effective tax rate and the federal statutory tax rate of 35% . The DRD for the current period was estimated using information from 2014 and current year results, and was adjusted to take into account the current year’s equity market performance. The actual current year DRD can vary from the estimate based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from mutual fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. In August 2007, the IRS released Revenue Ruling 2007-54, which included, among other items, guidance on the methodology to be followed in calculating the DRD related to variable life insurance and annuity contracts. In September 2007, the IRS released Revenue Ruling 2007-61. Revenue Ruling 2007-61 suspended Revenue Ruling 2007-54 and informed taxpayers that the U.S. Treasury Department and the IRS intend to address through new guidance the issues considered in Revenue Ruling 2007-54, including the methodology to be followed in determining the DRD related to variable life insurance and annuity contracts. In May 2010, the IRS issued an Industry Director Directive (“IDD”) confirming that the methodology for calculating the DRD set forth in Revenue Ruling 2007-54 should not be followed. The IDD also confirmed that the IRS guidance issued before Revenue Ruling 2007-54, which guidance the Company relied upon in calculating its DRD, should be used to determine the DRD. In February 2014, the IRS released Revenue Ruling 2014-7, which modified and superseded Revenue Ruling 2007-54, by removing the provisions of Revenue Ruling 2007-54 related to the methodology to be followed in calculating the DRD and making Revenue Ruling 2007-61 obsolete. These activities had no impact on the Company’s 2013 , 2014 or 2015 results. However, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, the issues related to the calculation of the DRD. For the last several years, the revenue proposals included in the Obama Administration’s budgets included a proposal that would change the method used to determine the amount of the DRD. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through guidance or legislation, could increase actual tax expense and reduce the Company’s net income. Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2015 2014 (in thousands) Deferred tax assets Insurance reserves $ 156,639 $ 267,536 Investments 0 13,270 Compensation reserves 0 1,760 Other 833 0 Deferred tax assets 157,472 282,566 Deferred tax liabilities VOBA and deferred policy acquisition cost 247,825 370,548 Investments 4,467 0 Deferred sales inducements 158,463 232,822 Net unrealized gain on securities 32,414 68,819 Other 0 1,239 Deferred tax liabilities 443,169 673,428 Net deferred tax asset (liability) $ (285,697 ) $ (390,863 ) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. The Company had no valuation allowance as of December 31, 2015 , and 2014 . Management believes that based on its historical pattern of taxable income, the Company will produce sufficient income in the future to realize its deferred tax assets. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable. The Company’s income (loss) from continuing operations before income taxes includes income (loss) from domestic operations of $165 million , $259 million and $1,180 million , and no income from foreign operations for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). As of December 31, 2015 , 2014 , and 2013 the Company recognized nothing in the Consolidated Statement of Operations and recognized no liabilities in the Statement of Financial Position for tax-related interest and penalties. The Company had zero unrecognized tax benefits as of December 31, 2015 and 2014 . The Company does not anticipate any significant changes within the next 12 months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. At December 31, 2015 , the Company remains subject to examination in the U.S. for tax years 2009 through 2015. For tax years 2009 through 2016, the Company is participating in the IRS’s Compliance Assurance Program (“CAP”). Under CAP, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner before the tax returns are filed. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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. The Company’s Level 1 assets and liabilities primarily include short-term investments and equity securities that trade on an active exchange market. 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. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not actively trade and are priced based on a net asset value ("NAV")), short-term investments and certain over-the-counter ("OTC") derivatives. 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. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities, certain manually priced public fixed maturities, short-term investments, certain highly structured OTC derivative contracts and embedded derivatives resulting from certain products with guaranteed benefits. 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 December 31, 2015 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 $ 12,154 $ 0 $ 0 $ 12,154 Obligations of U.S. states and their political subdivisions 0 20,212 0 0 20,212 Foreign government bonds 0 49,283 0 0 49,283 U.S. corporate public securities 0 934,109 15,000 0 949,109 U.S. corporate private securities 0 523,298 107,777 0 631,075 Foreign corporate public securities 0 136,222 0 0 136,222 Foreign corporate private securities 0 220,818 4,531 0 225,349 Asset-backed securities (4) 0 104,797 46,493 0 151,290 Commercial mortgage-backed securities 0 215,740 0 0 215,740 Residential mortgage-backed securities 0 133,838 0 0 133,838 Subtotal 0 2,350,471 173,801 0 2,524,272 Trading account assets: Equity securities 5,653 0 0 0 5,653 Subtotal 5,653 0 0 0 5,653 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 157,257 520 450 0 158,227 Cash equivalents 0 0 225 0 225 Other long-term investments 0 135,209 2,119 (21,508 ) 115,820 Reinsurance recoverables 0 0 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 29,676 7,664 0 37,340 Subtotal excluding separate account assets 162,910 2,515,893 3,196,912 (21,508 ) 5,854,207 Separate account assets (2) 0 39,250,159 0 0 39,250,159 Total assets $ 162,910 $ 41,766,052 $ 3,196,912 $ (21,508 ) $ 45,104,366 Future policy benefits (3) $ 0 $ 0 $ 3,134,077 $ 0 $ 3,134,077 Payables to parent and affiliates 0 25,277 0 (25,277 ) 0 Total liabilities $ 0 $ 25,277 $ 3,134,077 $ (25,277 ) $ 3,134,077 As of December 31, 2014 (5) 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 $ 6,336 $ 0 $ 0 $ 6,336 Obligations of U.S. states and their political subdivisions 0 70,789 0 0 70,789 Foreign government securities 0 37,355 0 0 37,355 U.S. corporate public securities 0 1,072,258 16,860 0 1,089,118 U.S. corporate private securities 0 560,113 98,544 0 658,657 Foreign corporate public securities 0 123,860 0 0 123,860 Foreign corporate private securities 0 229,383 666 0 230,049 Asset-backed securities (4) 0 108,487 40,524 0 149,011 Commercial mortgage-backed securities 0 302,185 0 0 302,185 Residential mortgage-backed securities 0 133,233 0 0 133,233 Subtotal 0 2,643,999 156,594 0 2,800,593 Trading account assets: Equity securities 6,131 0 0 0 6,131 Subtotal 6,131 0 0 0 6,131 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 57,185 0 0 0 57,185 Cash equivalents 0 0 225 0 225 Other long-term investments 0 118,846 633 (24,288 ) 95,191 Reinsurance recoverables 0 0 2,996,154 0 2,996,154 Receivables from parent and affiliates 0 18,748 22,320 0 41,068 Subtotal excluding separate account assets 63,316 2,781,610 3,175,926 (24,288 ) 5,996,564 Separate account assets (2) 0 44,101,699 0 0 44,101,699 Total assets $ 63,316 $ 46,883,309 $ 3,175,926 $ (24,288 ) $ 50,098,263 Future policy benefits (3) 0 0 3,112,411 0 3,112,411 Payables to parent and affiliates 0 21,249 0 (21,249 ) 0 Total liabilities $ 0 $ 21,249 $ 3,112,411 $ (21,249 ) $ 3,112,411 (1) “Netting” amounts represent cash collateral of $(3.8) million and $3.0 million as of December 31, 2015 and December 31, 2014 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) 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 Statements of Financial Position. (3) As of December 31, 2015 , the net embedded derivative liability position of $3,134 million includes $34 million of embedded derivatives in an asset position and $3,168 million of embedded derivatives in a liability position. As of December 31, 2014 , the net embedded derivative liability position of $3,112 million includes $55 million of embedded derivatives in an asset position and $3,167 million of embedded derivatives in a liability position. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally developed valuation. As of December 31, 2015 and 2014 overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing. The fair value of private fixed maturities, which are comprised of investments in private placement securities, originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly traded or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Trading Account Assets – Trading account assets consist primarily of equity securities whose fair values are determined consistent with similar instruments described below under “Equity Securities.” Equity Securities – Equity securities consist principally of investments in common stock of publicly traded companies, as well as mutual fund shares. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. Derivative Instruments – Derivatives are recorded at fair value either as assets, within “Other long-term investments,” or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant positions, and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position. The majority of the Company’s derivative positions are traded in the over-the counter ("OTC") derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross currency swaps, currency forward contracts and single name credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors, and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. The vast majority of the Company's derivative agreements are with highly rated major international financial institutions. To reflect the market’s perception of its own and the counterparty’s NPR, the Company incorporates additional spreads over London Interbank Offered Rates ("LIBOR") into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. Derivatives classified as Level 3 include structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques, that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. As of December 31, 2015, there was $ 1.6 million in internally valued derivatives with the fair value classified within Level 3. As of December 31, 2014 there were no internally valued derivatives with the fair value classified within Level 3, and all derivatives were classified within Level 2. See Note 11 for more details on the fair value of derivative instruments by primary underlying. Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are classified within Level 2 and Level 3. Level 2 instruments are generally fair valued based on market observable inputs. Level 3 instruments are internally valued based on internal asset manager valuations. Separate Account Assets – Separate account assets include fixed maturity securities, treasuries, equity securities and mutual funds for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”. Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity whose fair values are determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. Reinsurance Recoverables – Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain of its variable annuity contracts. These guarantees are accounted for as embedded derivatives and are described below in “Future Policy Benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantees. Future Policy Benefits – The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable-annuity contracts offered by the Company, including guaranteed minimum accumulation benefits ("GMAB"), guaranteed minimum withdrawal benefits ("GMWB") and guaranteed minimum income and withdrawal benefits ("GMIWB"), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to contractholders less the present value of future expected rider fees attributable to the optional living benefit feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management's judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets, and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve, adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations, and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long term trend is observed in an interim period. Transfers between Levels 1 and 2 – Overall, 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 as 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. During the year ended December 31, 2015 , there were no transfers between Level 1 and Level 2. During the year ended December 31, 2014 , $963 million was transferred from Level 1 to Level 2. Level 3 Assets and Liabilities by Price Source – The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2015 Internal (1) External (2) Total (in thousands) Corporate securities (3) $ 111,295 $ 16,013 $ 127,308 Asset-backed securities (4) 0 46,493 46,493 Short-term investments 450 0 450 Cash equivalents 225 0 225 Other long-term investments 1,565 554 2,119 Reinsurance recoverables 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 7,664 7,664 Total assets $ 3,126,188 $ 70,724 $ 3,196,912 Future policy benefits $ 3,134,077 $ 0 $ 3,134,077 Total liabilities $ 3,134,077 $ 0 $ 3,134,077 As of December 31, 2014 Internal (1) External (2) Total (in thousands) Corporate securities (3) $ 99,209 $ 16,861 $ 116,070 Asset-backed securities (4) 0 40,524 40,524 Cash equivalents 225 0 225 Other long-term investments 0 633 633 Reinsurance recoverables 2,996,154 0 2,996,154 Receivables from parent and affiliates 0 22,320 22,320 Total assets $ 3,095,588 $ 80,338 $ 3,175,926 Future policy benefits $ 3,112,411 $ 0 $ 3,112,411 Total liabilities $ 3,112,411 $ 0 $ 3,112,411 (1) Represents valuations reflecting both internally-derived and market inputs as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing-services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. 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 December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,134,077 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0.06 % 1.76 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase As of December 31, 2014 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 99,209 Discounted cash flow Discount rate 3.55 % 11.75 % 3.96 % Decrease Reinsurance recoverables $ 2,996,154 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,112,411 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0 % 1.30 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) 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. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) 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. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder, age, tax status, and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% . (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 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. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Valuation Process for Fair Value Measurements Categorized within Level 3 – The Company has established an internal control infrastructure over the valuation of financial instruments that requires ongoing oversight by its various business groups. These management control functions are segregated from the trading and investing functions. For invested assets, the Company has established oversight teams, often in the form of pricing committees within each asset management group. The teams, which typically include representation from investment, accounting, operations, legal and other disciplines are responsible for overseeing and monitoring the pricing of the Company’s investments and performing periodic due diligence reviews of independent pricing services. An actuarial valuation team oversees the valuation of living benefit features of the Company’s variable annuity contracts. The Company has also established policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies. These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes. These controls include appropriate review and analysis of investment prices against market activity or indicators of reasonableness, analysis of portfolio returns to corresponding benchmark returns, back-testing, review of bid/ask spreads to assess activity, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. For living benefit features of the Company’s variable annuity products, the actuarial valuation unit periodically tests contract input data and actuarial assumptions are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. The valuation policies and guidelines are reviewed and updated as appropriate. Within the trading and investing functions, the Company has established policies and procedures that relate to the approval of all new transaction types, transaction pricing sources and fair value hierarchy coding within the financial reporting system. For variable annuity product changes or new launches of living benefit features, the actuarial valuation unit validates input logic and new product features and agrees new input data directly to source documents. Changes in Level 3 assets and liabilities – The following tables provide summaries of the 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. Year Ended December 31, 2015 Fixed Maturities Available-For-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Private Securities Asset- Backed Securities (4) Commercial Mortgage-Backed Securities (in thousands) Fair Value, beginning of period $ 16,860 $ 98,544 $ 666 $ 40,524 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (16 ) 62 9 0 Asset management fees and other income 0 0 0 0 0 Included in other comprehensive income (loss) (23 ) (2,992 ) (24 ) (170 ) 0 Net investment income 9 5,264 1 49 0 Purchases 0 6,233 0 20,053 1,565 Sales 0 (1,548 ) 0 (15,878 ) 0 Issuances 0 0 0 0 0 Settlements (119 ) (1,863 ) (678 ) (3,704 ) 0 Transfers into Level 3 (1) 0 4,155 4,504 34,921 0 Transfers out of Level 3 (1) (1,727 ) 0 0 (29,311 ) (1,565 ) Fair Value, end of period $ 15,000 $ 107,777 $ 4,531 $ 46,493 $ 0 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2015 Short-term Investments Cash Equivalents Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Bene |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. Equity Contracts Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. Foreign Exchange Contracts Currency derivatives, including currency swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty for payments made in the same currency at each due date. Credit Contracts Credit derivatives are used by the Company to enhance the return on the Company’s investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. With credit default derivatives, this premium or credit spread generally corresponds to the difference between the yield on the referenced name’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. If there is an event of default by the referenced name, as defined by the agreement, then the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the referenced defaulted security or similar security or pay the referenced amount less the auction recovery rate. See the credit derivatives section for a discussion of guarantees related to credit derivatives written. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company sells variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. The Company has reinsurance agreements to transfer the risk related to certain of these benefit features to affiliates, Pruco Re and Prudential Insurance. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 10. The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host. Many derivative instruments contain multiple underlyings. 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 held with the same counterparty, and non-performance risk. December 31, 2015 December 31, 2014 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 115,358 $ 15,910 $ (206 ) $ 83,412 $ 5,555 $ (654 ) Total Qualifying Hedges $ 115,358 $ 15,910 $ (206 ) $ 83,412 $ 5,555 $ (654 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,872,750 $ 84,817 $ (13,452 ) $ 1,902,750 $ 92,507 $ (18,480 ) Interest Rate Options 100,000 9,431 0 100,000 10,736 0 Foreign Currency Foreign Currency Forwards 2,752 23 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 77,729 11,220 0 57,011 4,363 (5 ) Credit Credit Default Swaps 0 0 0 1,200 0 (43 ) Equity Total Return Swaps 217,999 320 (3,626 ) 220,986 1,937 0 Equity Options 18,286,800 15,054 (7,993 ) 6,842,242 3,748 (2,067 ) Total Non-Qualifying Hedges $ 20,558,030 $ 120,865 $ (25,071 ) $ 9,124,189 $ 113,291 $ (20,595 ) Total Derivatives (1) $ 20,673,388 $ 136,775 $ (25,277 ) $ 9,207,601 $ 118,846 $ (21,249 ) (1) Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $3,134 million and $3,112 million as of December 31, 2015 and 2014 , respectively, included in “Future policy benefits.” The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re and Prudential Insurance included in “Reinsurance recoverables” was an asset of $3,013 million and $2,996 million as of December 31, 2015 and 2014 , respectively. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables) that are offset in the 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 Statements of Financial Position. December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 118,846 $ (24,288 ) $ 94,558 $ (82,602 ) $ 11,956 Offsetting of Financial Liabilities: Derivatives $ 21,249 $ (21,249 ) $ 0 $ 0 $ 0 (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. 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: Year Ended December 31, 2015 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 $ 608 $ 1,116 $ 10,008 Total cash flow hedges 0 608 1,116 10,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 20,536 0 0 0 Currency 115 0 0 0 Currency/Interest Rate 8,337 0 202 0 Credit (3 ) 0 0 0 Equity (3,233 ) 0 0 0 Embedded Derivatives (24,371 ) 0 0 0 Total non-qualifying hedges 1,381 0 202 0 Total $ 1,381 $ 608 $ 1,318 $ 10,008 Year Ended December 31, 2014 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 $ 14 $ 134 $ 8,492 Total cash flow hedges 0 14 134 8,492 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 123,327 0 0 0 Currency 0 0 0 0 Currency/Interest Rate 5,934 0 143 0 Credit (14 ) 0 0 0 Equity (23,811 ) 0 0 0 Embedded Derivatives (113,549 ) 0 0 0 Total non-qualifying hedges (8,113 ) 0 143 0 Total $ (8,113 ) $ 14 $ 277 $ 8,492 Year Ended December 31, 2013 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 $ (89 ) $ (7 ) $ (585 ) Total cash flow hedges 0 (89 ) (7 ) (585 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (116,025 ) 0 0 0 Currency 0 0 0 0 Currency/Interest Rate (204 ) 0 24 0 Credit (103 ) 0 0 0 Equity (79,498 ) 0 0 0 Embedded Derivatives 1,775 0 0 0 Total non-qualifying hedges (194,055 ) 0 24 0 Total $ (194,055 ) $ (89 ) $ 17 $ (585 ) (1) Amounts deferred in AOCI. For the years ended December 31, 2015 , 2014 and 2013 , the ineffective portion of derivatives accounted for using hedge accounting was not material 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 “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2012 $ (3,068 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013 (680 ) Amount reclassified into current period earnings 95 Balance, December 31, 2013 (3,653 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 8,640 Amount reclassified into current period earnings (148 ) Balance, December 31, 2014 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amounts reclassified into current period earnings (2,070 ) Balance, December 31, 2015 $ 14,847 Using December 31, 2015 values, it is estimated that a pre-tax gain of approximately $1 million will be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2016, offset by amounts pertaining to the hedged items. As of December 31, 2015 and 2014 , 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 18 years . Income amounts deferred in AOCI as a result of cash flow hedges are included in "Net unrealized investment gains (losses)" within OCI in the Statements of Operations and Comprehensive Income. Credit Derivatives The Company has no exposure from credit derivatives where it has written credit protection as of December 31, 2015 and 2014 . As of December 31, 2015 , the Company had no open positions where it has purchased credit protection using credit derivatives in order to hedge specific credit in the Company’s investment portfolio. As of December 31, 2014 , the Company had $1 million of outstanding notional amounts reported at fair value as a liability of less than $1 million . Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its counterparty to financial derivative transactions. The Company has credit risk exposure to an affiliate, Prudential Global Funding, LLC (“PGF”), related to its OTC derivative transactions. PGF manages credit risk with external counterparties by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral, such as cash and securities, when appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review. Under fair value measurements, the Company incorporates the market’s perception of its own and the counterparty’s non-performance risk in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company’s own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company’s counterparty’s credit spread is applied to OTC derivative net asset positions. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments The Company had made commitments to fund $5 million and $1 million of commercial loans as of December 31, 2015 and 2014, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $36 million and $22 million as of December 31, 2015 and 2014, respectively. 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, based 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, including matters discussed below. The Company estimates that as of December 31, 2015 , 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 $0 to approximately $3 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. Escheatment Audit and Claims Settlement Practices Market Conduct Exam In January 2012, a Global Resolution Agreement entered into by the Company and a third-party auditor became effective upon its acceptance by the unclaimed property departments of 20 states and jurisdictions. Under the terms of the Global Resolution Agreement, the third-party auditor acting on behalf of the signatory states will compare expanded matching criteria to the Social Security Master Death File (“SSMDF”) to identify deceased insureds and contractholders where a valid claim has not been made. In February 2012, a Regulatory Settlement Agreement entered into by the Company to resolve a multi-state market conduct examination regarding its adherence to state claim settlement practices became effective upon its acceptance by the insurance departments of 20 states and jurisdictions. The Regulatory Settlement Agreement applies prospectively and requires the Company to adopt and implement additional procedures comparing its records to the SSMDF to identify unclaimed death benefits and prescribes procedures for identifying and locating beneficiaries once deaths are identified. Substantially all other jurisdictions that are not signatories to the Global Resolution Agreement or the Regulatory Settlement Agreement have entered into similar agreements with the Company. The New York Attorney General has subpoenaed the Company, along with other companies, regarding its unclaimed property procedures and may ultimately seek remediation and other relief, including damages. Additionally, the New York Office of Unclaimed Funds is conducting an audit of the Company’s compliance with New York’s unclaimed property laws. Securities Lending Matter In February 2016, Prudential Financial self-reported to the SEC, and notified other regulators, that in some cases it failed to maximize securities lending income due to a long-standing restriction benefitting the Company and Prudential Financial that limited the availability of loanable securities for certain of the Company's separate account investments. The restriction has been removed and Prudential Financial intends to implement a remediation plan for the benefit of customers. Prudential Financial intends to fully cooperate with regulators in this matter. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 also include allocations of stock compensation expenses related to a stock option program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock option program and deferred compensation program was less than $1 million , $1 million and $2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company is charged for its share of employee benefits 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 earnings and length of service. Other benefits are based on an account balance, which takes into consideration age, service and earnings during career. The Company’s share of net expense for the pension plans was $1 million , $1 million and $3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Prudential Insurance sponsors voluntary savings plans for the Company’s employees (“401(k) plans”). The 401(k) plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The expense charged to the Company for the matching contribution to the 401(k) plans was $1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Affiliated Asset Administration Fee Income In accordance with revenue sharing agreements with AST Investment Services, Inc. and Prudential Investments LLC, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust and The Prudential Series Fund. Income received from AST Investment Services, Inc. and Prudential Investments LLC related to the agreements was $173 million , $221 million and $227 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These revenues are recorded as “Asset administration fees and other income” in the Statements of Operations and Comprehensive Income. Affiliated Investment Management Expenses In accordance with an agreement with Prudential Investment Management, Inc. (“PIMI”, renamed PGIM, Inc. beginning January 1, 2016), the Company pays investment management expenses to PIMI who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PIMI related to this agreement were $5 million , $6 million and $ 7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These expenses are recorded as “Net investment income” in the Statements of Operations and Comprehensive Income. Cost Allocation Agreements with Affiliates Certain operating costs (including rental of office space, furniture and equipment) have been charged to the Company at cost by Prudential Annuities Information Services and Technology Corporation (“PAIST”), an affiliated company. PALAC signed a written service agreement with PAIST for these services executed and approved by the Connecticut Insurance Department in 1995. This agreement automatically continues in effect from year to year and may be terminated by either party upon 30 days written notice. Allocated lease expense was $4 million , $4 million and $ 10 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Allocated sub-lease rental income, recorded as a reduction to lease expense was less than $1 million , $1 million and $ 4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Assuming that the written service agreement between PALAC and PAIST continues indefinitely, PALAC’s allocated future minimum lease payments and sub-lease receipts per year and in aggregate as of December 31, 2015 are as follows: Lease Sub-Lease (in thousands) 2016 $ 3,279 0 2017 3,279 0 2018 3,279 0 2019 3,006 0 2020 0 0 2021 and thereafter 0 0 Total $ 12,843 0 The Company pays commissions and certain other fees to PAD in consideration for PAD’s marketing and underwriting of the Company’s products. Commissions and fees are paid by PAD to broker-dealers who sold and service the Company’s products. Commissions and fees paid by the Company to PAD were $ 143 million , $ 177 million and $172 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Debt Agreements Short-term and Long-term Debt The Company is authorized to borrow funds up to $2 billion from Prudential Financial and its affiliates to meet its capital and other funding needs. The Company had debt of $1 million and $54 million outstanding with Prudential Funding, LLC as of December 31, 2015 and 2014 , respectively. Total interest expense on debt with Prudential Funding, LLC was less than $1 million for the years ended December 31, 2015 , 2014 and 2013 . The Company had debt of $0 million outstanding with Prudential Financial as of December 31, 2015 and 2014 , respectively. The Company had a loan with Prudential Financial that had a fixed interest rate of 4.49% and matured on December 29, 2014. In December 2014 we paid off the remaining portion of debt with a payment of $200 million . Total interest expense on debt with Prudential Financial was less than $1 million , $9 million and $17 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Reinsurance Agreements The Company uses reinsurance as part of its risk management and capital management strategies for certain of its optional living benefit features. Fees ceded under these agreements are included in “Realized investment gains (losses), net” on the Statement of Operations and Comprehensive Income. The Company ceded fees of $269 million , $274 million and $275 million to Pruco Re for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company ceded fees of $1 million to Prudential Insurance for the years ended December 31, 2015 , 2014 and 2013 . The Company’s reinsurance payables related to affiliated reinsurance were $250 million and $25 million as of December 31, 2015 and 2014 , respectively. The Company’s reinsurance recoverables related to affiliated reinsurance were $3,088 million and $2,997 million as of December 31, 2015 and December 31, 2014 , respectively. The assets are reflected in “Reinsurance recoverables” in the Company’s Statements of Financial Position. Realized gains (losses) were $(241) million , $1,975 million and $(1,260) million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Changes in realized gains (losses) for the 2015 and 2014 periods were primarily due to changes in market conditions in each respective period. See Note 1 for a discussion of the fourth quarter 2015 reinsurance treaty related to the Company's New York license surrender. 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. Purchase/sale of fixed maturities from/to an affiliate During 2014, the Company sold fixed maturity securities to affiliated companies. These securities had an amortized cost of $36 million and a fair value of $44 million . The net difference between historic amortized cost and the fair value of $8 million was accounted for as a realized gain on the Company’s Statement of Operations and Comprehensive Income. During 2014, the Company purchased commercial mortgage loans from an affiliated company. These securities had an amortized cost of $6 million , and were purchased at a cost of $6 million . The Company also purchased fixed maturity securities from an affiliated company. These securities had an amortized cost of $27 million , and were purchased at a cost of $30 million . The securities were recorded on the Company’s Statement of Financial Position. During 2013, the Company sold fixed maturity securities to Prudential Financial. These securities had an amortized cost of $90 million and a fair value of $103 million . The net difference between historic amortized cost and the fair value was accounted for as an increase of $8 million to additional paid-in capital, net of taxes. The Company also sold commercial mortgage loans to an affiliated company. These securities had an amortized cost of $6 million and a fair value of $6 million . The net difference between historic amortized cost and the fair value was less than $1 million and was recorded as a realized investment gain on the Company’s Statement of Operations and Comprehensive Income. |
Contract Withdrawal Provisions
Contract Withdrawal Provisions | 12 Months Ended |
Dec. 31, 2015 | |
Contract Withdrawal Provisions [Abstract] | |
Contract Withdrawal Provisions | CONTRACT WITHDRAWAL PROVISIONS Most of the Company’s separate account liabilities are subject to discretionary withdrawal by contractholders at market value or with market value adjustment. Separate account assets, which are carried at fair value, are adequate to pay such withdrawals, which are generally subject to surrender charges ranging from 9% to 1% for contracts held less than 10 years. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for the years ended December 31, 2015 and 2014 are summarized in the table below: Three months ended March 31 June 30 September 30 December 31 2015 (in thousands) Total revenues $ 305,682 $ 279,135 $ 268,802 $ 219,952 Total benefits and expenses 331,751 122,886 388,581 65,421 Income (loss) from operations before income taxes (26,069 ) 156,249 (119,779 ) 154,531 Net income (loss) $ (21,302 ) $ 131,914 $ (104,826 ) $ 167,431 Three months ended March 31 June 30 September 30 December 31 (in thousands) 2014 Total revenues $ 311,249 $ 309,786 $ 308,006 $ 311,187 Total benefits and expenses 216,896 242,370 197,204 324,387 Income from operations before income taxes 94,353 67,416 110,802 (13,200 ) Net income $ 77,498 $ 57,431 $ 96,037 $ 19,801 Results for the fourth quarter of 2014 include a pre-tax expense of $9 million , of which $5 million related to the third quarter of 2014, related to an out-of-period adjustment recorded by the Company primarily due to additional DAC amortization related to the overstatement of reinsured reserves in prior periods. In 2015, the Company identified and recorded additional out of period adjustments of $5 million impacting the third quarter of 2014, primarily reflecting a benefit from the release of reserves related to certain variable annuities products with optional living benefit guarantees. Management has evaluated the impact of all out-of-period adjustments in 2014 and 2015, both individually and in the aggregate, and concluded that they are not material to the current quarter or to any previously reported quarterly or annual financial statements. |
Significant Accounting Polici22
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Prudential Annuities Life Assurance Corporation (the “Company” or “PALAC”), with its principal offices in Shelton, Connecticut, is an indirect wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), a New Jersey corporation. The Company is a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial. The Company developed long-term savings and retirement products, which were distributed through its affiliated broker/dealer company, Prudential Annuities Distributors, Incorporated (“PAD”). The Company issued variable deferred and immediate annuities for individuals and groups in the United States of America, District of Columbia and Puerto Rico. In addition, the Company has a relatively small in force block of variable life insurance policies. The Company no longer actively sells such products. Beginning in March 2010, the Company ceased offering its variable annuity products (and where offered, the companion market value adjustment option) to new investors upon the launch of a new product line by each of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (which are affiliates of the Company). These initiatives were implemented to create operational and administrative efficiencies by offering a single product line of annuity products from a more limited group of legal entities. During 2012, the Company suspended additional customer deposits for variable annuities with certain optional living benefit riders. However, subject to applicable contract provisions and administrative rules, the Company continues to accept additional customer deposits on certain in force contracts. The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing long-term savings and retirement products, including insurance products, and individual and group annuities. On August 31, 2013, the Company redomesticated from Connecticut to Arizona. As a result of the redomestication, the Company is now an Arizona insurance company and its principal insurance regulatory authority is the Arizona Department of Insurance. Additionally, the Company is now domiciled in the same jurisdiction as the primary reinsurer of the Company’s living benefits, Pruco Reinsurance, Ltd. (“Pruco Re”), which is also regulated by the Arizona Department of Insurance. This change enables the Company to claim statutory reserve credit for business ceded to Pruco Re without the need for Pruco Re to collateralize its obligations under the reinsurance agreement. In the fourth quarter of 2015, the Company surrendered its New York license. The Company recaptured the New York living benefits previously ceded to Pruco Re, and reinsured the majority of its New York business, both the living benefit and base contract, to an affiliate, The Prudential Insurance Company of America (“Prudential Insurance”). The license surrender relieves the Company of the requirement to hold additional New York statutory reserves mandated by the fourth quarter of 2014 agreement with the New York State Department of Financial Services (“NY DFS”). For the small portion of New York business retained by the Company, a custodial account has been established to hold collateral assets in an amount equal to the reserves associated with such business, as calculated in accordance with the reserve methodologies of the NY DFS. |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
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; value of business acquired and its 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 matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments and Investment Related Liabilities | Investments and Investment Related Liabilities The Company’s principal investments are fixed maturities, equity securities, commercial mortgage and other loans, policy loans, other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate, and short-term investments. Investments and investment-related liabilities also include securities repurchase and resale agreements and securities lending transactions. The accounting policies related to each are as follows: Fixed maturities, available-for-sale, at fair value are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 10 for additional information regarding the determination of fair value. The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts over the contractual lives of the investments. Interest income, as well as the related amortization of premium and accretion of discount is included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the security are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, and the effect on deferred policy acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), and future policy benefits that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Trading account assets , at fair value represents equity securities and other fixed maturity securities carried at fair value. Realized and unrealized gains and losses for these investments are reported in “Asset administration fees and other income.” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, available-for-sale, at fair value are comprised of mutual fund shares and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, and future policy benefits that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are recognized in “Net investment income” when earned. Commercial mortgage and other loans consist of commercial mortgage loans, agricultural loans and uncollateralized loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of an allowance for losses. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, as well as prepayment fees and the amortization of the related premiums or discounts, related to commercial mortgage and other loans, are included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans, as well as, loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of three categories. Loans are placed on “early warning” status in cases where, based on the Company’s analysis of the loan’s collateral, the financial situation of the borrower or tenants or other market factors, it is believed a loss of principal or interest could occur. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A smaller loan-to-value ratio indicates a greater excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A larger debt service coverage ratio indicates a greater excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural loan portfolio, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. The allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios considers the current credit composition of the portfolio based on an internal quality rating (as described above). The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed each quarter and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write down to the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other long-term investments consist of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are either accounted for using the equity method of accounting or under the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investment 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 or the cost method (including assessment for other-than-temporary impairment), the Company uses financial information provided by the investee, generally on a one to three month lag. Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value and include certain money market investments, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sale of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net other-than-temporary impairments recognized in earnings. Realized investment gains and losses are also generated from prepayment premiums received on private fixed maturity securities, allowance for losses on commercial mortgage and other loans, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale securities with unrealized losses are reviewed quarterly to identify other-than-temporary impairments in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An other-than-temporary impairment is recognized in earnings for a debt security in an unrealized loss position when the Company either (a) has the intent to sell the debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment an other-than-temporary impairment is recognized. When an other-than-temporary impairment of a debt security has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria, the other-than-temporary impairment recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For other-than-temporary impairments of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss)” (“OCI”). Unrealized gains or losses on securities for which an other-than-temporary impairment has been recognized in earnings is tracked as a separate component of AOCI. For debt securities, the split between the amount of an other-than-temporary impairment recognized in other comprehensive income and the net amount recognized in earnings is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets, at fair value.” The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily include commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of deferred policy acquisition costs,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities, are also included. The Company is an indirect subsidiary of Prudential Financial (an SEC registrant) and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 13. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. |
Deferred Sales Inducements | Deferred Sales Inducements The Company offered various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 7 for additional information regarding sales inducements. |
Value of Business Acquired | Value of Business Acquired As a result of certain acquisitions and the application of purchase accounting, the Company reports a financial asset representing VOBA. VOBA represents an adjustment to the stated value of in force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which it was acquired. The Company has established a VOBA asset primarily for its acquisition of American Skandia Life Assurance Corporation. For acquired annuity contracts, VOBA is amortized in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. See Note 5 for additional information regarding VOBA. |
Reinsurance Recoverables | Reinsurance recoverables Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain contractholders. “Separate account assets” are predominantly shares in Advanced Series Trust co-managed by AST Investment Services, Incorporated (“ASISI”) and Prudential Investments LLC, which utilizes various fund managers as sub-advisors. The remaining assets are shares in other mutual funds, which are managed by independent investment firms. The contractholder has the option of directing funds to a wide variety of investment options, most of which invest in mutual funds. The investment risk on the variable portion of a contract is borne by the contractholder, except to the extent of minimum guarantees by the Company, which are not separate account liabilities. See Note 7 to the Financial Statements for additional information regarding separate account arrangements with contractual guarantees. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account liabilities primarily represent the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. The investment income and realized investment gains or losses from separate accounts generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees and other income.” |
Other Assets and Other Liabilities | Other Assets and Other Liabilities “Other assets” consist primarily of accruals for asset administration fees and deferral of a loss on reinsurance with an affiliate. “Other assets” also consist of state insurance licenses. Licenses to do business in all states have been capitalized. Based on changes in facts and circumstances, effective September 30, 2012, the capitalized state insurance licenses were considered to have a finite life and are amortized over their useful life, which was estimated to be 8 years . Amortization is recorded through “General, administrative and other expenses.” “Other liabilities” consist primarily of accrued expenses and technical overdrafts. Other liabilities may also include derivative instruments for which fair values are determined as described above under “Derivative Financial Instruments”. |
Future Policy Benefits | Future Policy Benefits The Company’s liability for future policy benefits is primarily comprised of liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 7. These reserves represent reserves for the guaranteed minimum death and optional living benefit features on the Company’s variable annuity products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 10. The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. |
Policyholders Account Balances | Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. |
Repurchase and Resale Agreements Policy | Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. |
Securities Borrowed and Loaned Policy | Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned transactions are with large brokerage firms. Income and expenses associated with securities loaned transactions used to earn spread income are reported as “Net investment income;” however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General, administrative and other expenses”). |
Contingent Liabilities | Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These items are recorded within “Other liabilities.” |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Revenues for variable deferred annuity contracts consist of charges against contractholder account values or separate accounts for mortality and expense risks, administration fees, surrender charges and an annual maintenance fee per contract. Revenues for mortality and expense risk charges and administration fees are recognized as assessed against the contractholder. Surrender charge revenue is recognized when the surrender charge is assessed against the contractholder at the time of surrender. Liabilities for the variable investment options on annuity contracts represent the account value of the contracts and are included in “Separate account liabilities.” Revenues for variable immediate annuity and supplementary contracts with life contingencies consist of certain charges against contractholder account values including mortality and expense risks and administration fees. These charges and fees are recognized as revenue when assessed against the contractholder. Liabilities for variable immediate annuity contracts represent the account value of the contracts and are included in “Separate account liabilities.” Revenues for fixed immediate annuity and fixed supplementary contracts with and without life contingencies consist of net investment income. In addition, revenues for fixed immediate annuity contracts with life contingencies also consist of single premium payments recognized as annuity considerations when received. Reserves for contracts without life contingencies are included in “Policyholders’ account balances” while reserves for contracts with life contingencies are included in “Future policy benefits and other policyholder liabilities.” Assumed interest rates ranged from 0.00% to 8.25% at December 31, 2015 and 2014 . Revenues for variable life insurance contracts consist of charges against contractholder account values or separate accounts for expense charges, administration fees, cost of insurance charges and surrender charges. Certain contracts also include charges against premium to pay state premium taxes. All of these charges are recognized as revenue when assessed against the contractholder. Liabilities for variable life insurance contracts represent the account value of the contracts and are included in “Separate account liabilities.” Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts and are discussed in further detail in Note 7. The Company also provides contracts with certain living benefits which are considered embedded derivatives. These contracts are discussed in further detail in Note 7. Premiums, benefits and expenses are stated net of reinsurance ceded to other companies. |
Asset Administration Fee | Asset Administration Fees The Company receives asset administration fee income on contractholders’ account balances invested in the Advanced Series Trust Funds or “AST”, and the Prudential Series Fund or "PSF" (see Note 13), which are a portfolio of mutual fund investments related to the Company’s separate account products. In addition, the Company receives fees on contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter ("OTC") market. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 11, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of the effective portion of cash flow hedges. Cash flows from derivatives are reported in the operating, investing, or financing activities sections in the Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within “Trading account assets, at fair value” or “Other long-term investments,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge. Under such circumstances, the ineffective portion is recorded in “Realized investment gains (losses), net.” The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the income statement line item associated with the hedged item. If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” The component of AOCI related to discontinued cash flow hedges is reclassified to the income statement line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net.” Gains and losses that were in AOCI pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net.” If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to classify the entire instrument as a trading account asset and report it within “Trading account assets, at fair value.” The Company sold variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. The Company has reinsurance agreements to transfer the risk related to certain of these benefit features to affiliates, Pruco Re and Prudential Insurance. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits and other policyholder liabilities” and “Reinsurance recoverables,” respectively. Changes in the fair value are determined using valuation models as described in Note 10, and are recorded in “Realized investment gains (losses), net.” |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General and administrative expenses” in the Company’s Statements of Operations. Interest expense may also be reported within “Net investment income” for certain activity, as prescribed by specialized industry guidance. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items the Company intends to refinance on a long-term basis in the near term. See Note 13 for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members with losses record tax benefits to the extent such losses are recognized in the consolidated federal tax provision. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s income statement. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance the Company may consider many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process, the first step being recognition. The Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 9 for additional information regarding income taxes. |
Adoption and Future Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance (Accounting Standards Update (“ASU”) 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure ) requiring that mortgage loans be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s financial position, results of operations or financial statement disclosures. In January 2014, the FASB issued updated guidance (ASU 2014-04, Receivables — Troubled Debt Restructuring by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure ) for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan.The new guidance became effective for annual periods and interim periods within those annual periods that began after December 15, 2014, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s financial position, results of operations or financial statement disclosures. In December 2013, the FASB issued updated guidance (ASU 2013-12, Definition of a Public Business Entity—An Addition to the Master Glossary ) establishing a single definition of a public entity for use in financial accounting and reporting guidance. This new guidance is effective for all current and future reporting periods and did not have a significant effect on the Company’s financial position, results of operations or financial statement disclosures. In July 2013, the FASB issued updated guidance (ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ) regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance became effective for interim or annual reporting periods that began after December 15, 2013, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s financial position, results of operations or financial statement disclosures. In July 2013, the FASB issued new guidance (ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes ) regarding derivatives. The guidance permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting, in addition to the United States Treasury rate and London Inter-Bank Offered Rate (“LIBOR”). The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance is effective for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013, and was applied prospectively. Adoption of the guidance did not have a significant effect on the Company’s financial position, results of operations or financial statement disclosures. In February 2013, the FASB issued updated guidance (ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ) regarding the presentation of comprehensive income. Under the guidance, an entity is required to separately present information about significant items reclassified out of accumulated other comprehensive income (“AOCI”) by component as well as changes in AOCI balances by component in either the financial statements or the notes to the financial statements. The guidance does not change the items that are reported in other comprehensive income, does not change when an item of other comprehensive income must be reclassified to net income, and does not amend any existing requirements for reporting net income or other comprehensive income. The guidance became effective for interim or annual reporting periods that began after December 15, 2012 and was applied prospectively. The disclosures required by this guidance are included in Note 3. In December 2011 and January 2013, the FASB issued updated guidance (ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ) regarding the disclosure of recognized derivative instruments (including bifurcated embedded derivatives), repurchase agreements and securities borrowing/lending transactions that are offset in the statement of financial position or are subject to an enforceable master netting arrangement or similar agreement (irrespective of whether they are offset in the statement of financial position). The new guidance requires an entity to disclose information on both a gross and net basis about instruments and transactions within the scope of this guidance. The new guidance became effective for interim or annual reporting periods that began on or after January 1, 2013, and was applied retrospectively for all comparative periods presented. The disclosures required by this guidance are included in Note 11. Future Adoption of New Accounting Pronouncements In May 2014, the FASB issued updated guidance (ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ) on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of 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 guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. In August 2015, the FASB issued an update to defer the original effective date of this guidance. As a result of the deferral, the new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017, and must be applied using one of two retrospective application methods. Early adoption is permitted only for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing the impact of the guidance on the Company’s financial position, results of operations and financial statement disclosures. In August 2014, the FASB issued updated guidance (ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity ) for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity. Under the guidance, an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or the financial liabilities, whichever is more observable. If adopted, the guidance eliminates the measurement difference that exists when both are measured at fair value. The Company adopted the updated guidance effective January 1, 2016, and applied the modified retrospective method of adoption. This guidance did not have a significant impact on the Company’s financial position, results of operations, or financial statement disclosures. In January 2016, the FASB issued updated guidance (ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ) on the recognition and measurement of financial assets and financial liabilities. The guidance revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2017. Early adoption is not permitted except for the provisions related to the presentation of certain fair value changes for financial liabilities measured at fair value. The Company is currently assessing the impact of the guidance on the Company’s financial position, results of operations and financial statement disclosures. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Fixed Maturities and Equity Securities, Available-for-sale Securities | The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2015 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 $ 12,233 $ 28 $ 107 $ 12,154 $ 0 Obligations of U.S. states and their political subdivisions 20,116 474 378 20,212 0 Foreign government bonds 43,188 6,123 28 49,283 0 Public utilities 203,803 15,969 4,263 215,509 0 All other U.S. public corporate securities 818,627 52,866 7,717 863,776 0 All other U.S. private corporate securities 494,640 30,996 4,407 521,229 0 All other foreign public corporate securities 132,414 3,781 608 135,587 0 All other foreign private corporate securities 219,009 2,487 15,842 205,654 0 Asset-backed securities (1) 149,196 2,786 692 151,290 (35 ) Commercial mortgage-backed securities 211,429 4,963 652 215,740 0 Residential mortgage-backed securities (2) 128,971 4,886 19 133,838 (7 ) Total fixed maturities, available-for-sale $ 2,433,626 $ 125,359 $ 34,713 $ 2,524,272 $ (42 ) Equity securities, available-for-sale Common stocks: Public utilities $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 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, 2014 (4) 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 $ 6,324 $ 22 $ 10 $ 6,336 $ 0 Obligations of U.S. states and their political subdivisions 69,486 1,323 20 70,789 0 Foreign government bonds 29,738 7,621 4 37,355 0 Public utilities 198,277 19,909 1,593 216,593 0 All other U.S. public corporate securities 918,368 81,539 1,944 997,963 0 All other U.S. private corporate securities 512,793 48,451 528 560,716 0 All other foreign public corporate securities 110,909 8,438 35 119,312 0 All other foreign private corporate securities 201,040 8,444 2,384 207,100 0 Asset-backed securities (1) 144,324 5,078 391 149,011 (39 ) Commercial mortgage-backed securities 291,868 10,523 206 302,185 (10 ) Residential mortgage-backed securities (2) 126,126 7,113 6 133,233 (36 ) Total fixed maturities, available-for-sale $ 2,609,253 $ 198,461 $ 7,121 $ 2,800,593 $ (85 ) Equity securities, available-for-sale Common stocks: Public utilities $ 0 $ 0 $ 0 $ 0 Mutual funds 14 3 0 17 Total equity securities, available-for-sale $ 14 $ 3 $ 0 $ 17 (1) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $0.1 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. (4) Prior period amounts are presented on a basis consistent with the current period presentation. |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2015 , are as follows: Available-for-Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 206,605 $ 201,762 Due after one year through five years 812,798 840,843 Due after five years through ten years 524,967 548,689 Due after ten years 399,660 432,110 Asset-backed securities 149,196 151,290 Commercial mortgage-backed securities 211,429 215,740 Residential mortgage-backed securities 128,971 133,838 Total $ 2,433,626 $ 2,524,272 |
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities | The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: 2015 2014 2013 (in thousands) Fixed maturities, available-for-sale Proceeds from sales $ 33,604 $ 308,458 $ 314,415 Proceeds from maturities/repayments 453,016 681,426 1,175,680 Gross investment gains from sales, prepayments and maturities 5,788 18,110 18,619 Gross investment losses from sales and maturities (937 ) (3,404 ) (9,824 ) Equity securities, available-for-sale Proceeds from sales $ 0 $ 192 $ 14 Gross investment gains from sales 0 1 10 Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings (1) $ (20 ) $ 0 $ 0 Writedowns for impairments on equity securities 0 0 0 (1) Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” 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 the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts. Year Ended December 31, 2015 2014 (in thousands) Balance, beginning of period $ 93 $ 1,800 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (17 ) (1,682 ) Additional credit loss impairments recognized in the current period on securities previously impaired 20 0 Increases due to the passage of time on previously recorded credit losses 0 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (10 ) (25 ) Balance, end of period $ 86 $ 93 |
Trading Account Assets Disclosure | The following table sets forth the composition of “Trading account assets” as of the dates indicated: December 31, 2015 December 31, 2014 Cost Fair Value Cost Fair Value (in thousands) Total trading account assets - Equity securities $ 5,618 $ 5,653 $ 5,471 $ 6,131 |
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: December 31, 2015 December 31, 2014 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 136,190 31.2 % $ 143,057 34.0 % Industrial 58,621 13.5 87,088 20.7 Retail 67,358 15.5 72,226 17.2 Office 100,357 23.0 44,621 10.6 Other 18,660 4.3 14,119 3.4 Hospitality 4,963 1.1 5,081 1.2 Total commercial mortgage loans 386,149 88.6 366,192 87.1 Agricultural property loans 49,926 11.4 54,113 12.9 Total commercial mortgage and agricultural property loans by property type 436,075 100.0 % 420,305 100.0 % Valuation allowance (643 ) (482 ) Total net commercial mortgage and agricultural property loans by property type 435,432 419,823 Other loans Uncollateralized loans 2,740 2,740 Valuation allowance 0 0 Total net other loans 2,740 2,740 Total commercial mortgage and other loans $ 438,172 $ 422,563 |
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: December 31, 2015 December 31, 2014 December 31, 2013 (in thousands) Allowance for credit losses, beginning of year $ 482 $ 1,256 $ 2,177 Addition to (release of) allowance for losses 161 (774 ) (921 ) Total ending balance (1) $ 643 $ 482 $ 1,256 (1) Agricultural loans represent less than $0.1 million of the ending allowance as of December 31, 2015 , 2014 and 2013 . |
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: December 31, 2015 December 31, 2014 (in thousands) Allowance for Credit Losses: Individually evaluated for impairment (1) $ 0 $ 0 Collectively evaluated for impairment (2) 643 482 Total ending balance $ 643 $ 482 Recorded Investment (3): Gross of reserves: individually evaluated for impairment (1) $ 0 $ 0 Gross of reserves: collectively evaluated for impairment (2) 438,815 423,045 Total ending balance, gross of reserves $ 438,815 $ 423,045 (1) There were no loans individually evaluated for impairment at both December 31, 2015 and 2014 . (2) Agricultural loans collectively evaluated for impairment had a recorded investment of $50 million and $54 million as of December 31, 2015 and 2014 , respectively, and a related allowance of less than $0.1 million at both period ends. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $3 million at both December 31, 2015 and 2014 and no related allowance at both period ends. (3) Recorded investment reflects the balance sheet carrying value gross of related allowance. |
Credit Quality Indicators | The following tables set forth certain key credit quality indicators as of December 31, 2015 and 2014, based upon the recorded investment gross of allowance for credit losses. Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio - December 31, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 303,215 $ 9,073 $ 992 $ 313,280 60%-69.99% 95,977 0 0 95,977 70%-79.99% 25,401 1,417 0 26,818 Greater than 80% 0 0 0 0 Total commercial mortgage and agricultural property loans $ 424,593 $ 10,490 $ 992 $ 436,075 Debt Service Coverage Ratio - December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in thousands) Loan-to-Value Ratio 0%-59.99% $ 262,853 $ 4,295 $ 10,489 $ 277,637 60%-69.99% 115,708 468 0 116,176 70%-79.99% 25,034 1,458 0 26,492 Greater than 80% 0 0 0 0 Total commercial mortgage and agricultural property loans $ 403,595 $ 6,221 $ 10,489 $ 420,305 |
Schedule Of Other Long Term Investments | The following table sets forth the composition of “Other long-term investments” at December 31, for the years indicated. 2015 2014 (in thousands) Joint ventures and limited partnerships $ 66,890 $ 68,225 Derivatives 115,267 94,558 Total other long-term investments $ 182,157 $ 162,783 |
Net Investment Income | Net investment income for the years ended December 31, was from the following sources: 2015 2014 2013 (in thousands) Fixed maturities, available-for-sale $ 115,998 $ 140,114 $ 191,043 Equity securities, available-for-sale 0 0 0 Trading account assets 349 325 342 Commercial mortgage and other loans 22,696 21,802 28,463 Policy loans 794 739 675 Short-term investments 396 281 323 Other long-term investments 4,638 6,492 3,601 Gross investment income 144,871 169,753 224,447 Less: investment expenses (5,441 ) (5,742 ) (6,564 ) Net investment income $ 139,430 $ 164,011 $ 217,883 |
Realized Gain (Loss) on Investments | Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2015 2014 2013 (in thousands) Fixed maturities $ 4,831 $ 14,706 $ 8,795 Equity securities 0 1 10 Commercial mortgage and other loans (161 ) 774 933 Derivatives 1,381 (8,113 ) (194,055 ) Other 1 0 (34 ) Realized investment gains (losses), net $ 6,052 $ 7,368 $ (184,351 ) |
Accumulated Other Comprehensive Income Loss Table | The balance of and changes in each component of "Accumulated other comprehensive income (loss)” for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses) (1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at, December 31, 2012 $ 7 $ 147,280 $ 147,287 Change in component during period (2) 3 (76,423 ) (76,420 ) Balance at, December 31, 2013 $ 10 $ 70,857 $ 70,867 Change in component during period (2) (40 ) 13,795 13,755 Balance at, December 31, 2014 $ (30 ) $ 84,652 $ 84,622 Change in other comprehensive income before reclassifications (54 ) (54,279 ) (54,333 ) Amounts reclassified from AOCI 0 (4,831 ) (4,831 ) Income tax benefit (expense) 19 20,689 20,708 Balance at, December 31, 2015 $ (65 ) $ 46,231 $ 46,166 (1) Includes cash flow hedges of $14.8 million , $5.0 million , and $(4.0) million as of December 31, 2015 , 2014 , and 2013 , respectively. (2) Net of taxes. |
Reclassifications Out Of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate (3) $ 2,070 $ 148 $ (95 ) Net unrealized investment gains (losses) on available-for-sale securities 2,761 14,558 8,900 Total net unrealized investment gains (losses) (4) 4,831 14,706 8,805 Total reclassifications for the period $ 4,831 $ 14,706 $ 8,805 (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 11 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 and other costs and future policy benefits. |
Net Unrealized Investment Gain (Loss) 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 and losses, are as follows: Net Unrealized Investment Gains and 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 Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2012 $ 545 $ (214 ) $ 0 $ (100 ) $ 231 Net investment gains (losses) on investments arising during the period 483 0 0 (168 ) 315 Reclassification adjustment for (gains) losses included in net income (705 ) 0 0 247 (458 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 98 0 (35 ) 63 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (14 ) 5 (9 ) Balance, December 31, 2013 $ 323 $ (116 ) $ (14 ) $ (51 ) $ 142 Net investment gains (losses) on investments arising during the period (11 ) 0 0 4 (7 ) Reclassification adjustment for (gains) losses included in net income (311 ) 0 0 109 (202 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 116 0 (41 ) 75 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 14 (5 ) 9 Balance, December 31, 2014 $ 1 $ 0 $ 0 $ 16 $ 17 Net investment gains (losses) on investments arising during the period (9 ) 0 0 3 (6 ) Reclassification adjustment for (gains) losses included in net income 17 0 0 (6 ) 11 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (3 ) 0 1 (2 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 0 0 0 Balance, December 31, 2015 $ 9 $ (3 ) $ 0 $ 14 $ 20 |
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains and Losses in AOCI Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2012 $ 376,777 $ (147,089 ) $ (2,164 ) $ (80,468 ) $ 147,056 Net investment gains (losses) on investments arising during the period (183,950 ) 0 0 64,383 (119,567 ) Reclassification adjustment for (gains) losses included in net income (8,100 ) 0 0 2,835 (5,265 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 80,637 0 (28,222 ) 52,415 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (6,023 ) 2,109 (3,914 ) Balance, December 31, 2013 $ 184,727 $ (66,452 ) $ (8,187 ) $ (39,363 ) $ 70,725 Net investment gains (losses) on investments arising during the period 28,590 0 0 (10,013 ) 18,577 Reclassification adjustment for (gains) losses included in net income (14,395 ) 0 0 5,036 (9,359 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 7,407 0 (2,594 ) 4,813 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (185 ) 64 (121 ) Balance, December 31, 2014 $ 198,922 $ (59,045 ) $ (8,372 ) $ (46,870 ) $ 84,635 Net investment gains (losses) on investments arising during the period (86,623 ) 0 0 30,319 (56,304 ) Reclassification adjustment for (gains) losses included in net income (4,848 ) 0 0 1,697 (3,151 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 28,580 0 (10,003 ) 18,577 Impact of net unrealized investment (gains) losses on future policy benefits 0 0 3,776 (1,322 ) 2,454 Balance, December 31, 2015 $ 107,451 $ (30,465 ) $ (4,596 ) $ (26,179 ) $ 46,211 (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. |
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: 2015 2014 2013 (in thousands) Fixed maturity securities on which an OTTI loss has been recognized $ 9 $ 1 $ 323 Fixed maturity securities, available-for-sale - all other 90,637 191,339 184,891 Equity securities, available-for-sale 3 3 2 Affiliated notes 1,660 2,351 3,113 Derivatives designated as cash flow hedges (1) 14,847 4,839 (3,653 ) Other investments 304 390 374 Net unrealized gains (losses) on investments $ 107,460 $ 198,923 $ 185,050 (1) See Note 11 for more information on cash flow hedges. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures | The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31, for the years indicated: 2015 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 $ 8,480 $ 107 $ 0 $ 0 $ 8,480 $ 107 Obligations of U.S. states and their political subdivisions 6,887 378 0 0 6,887 378 Foreign government bonds 13,616 28 0 0 13,616 28 Public utilities 49,104 1,421 14,217 2,842 63,321 4,263 All other U.S. public corporate securities 207,578 6,297 29,828 1,420 237,406 7,717 All other U.S. private corporate securities 84,318 4,020 3,550 387 87,868 4,407 All other foreign public corporate securities 76,573 608 0 0 76,573 608 All other foreign private corporate securities 38,047 1,972 85,341 13,870 123,388 15,842 Asset-backed securities 50,195 430 26,359 262 76,554 692 Commercial mortgage-backed securities 55,065 642 833 10 55,898 652 Residential mortgage-backed securities 2,141 19 0 0 2,141 19 Total $ 592,004 $ 15,922 $ 160,128 $ 18,791 $ 752,132 $ 34,713 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 2014 (1) 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 $ 2,676 $ 10 $ 0 $ 0 $ 2,676 $ 10 Obligations of U.S. states and their political subdivisions 0 0 7,305 20 7,305 20 Foreign government bonds 4,632 4 0 0 4,632 4 Public utilities 18,222 1,321 2,174 272 20,396 1,593 All other U.S. public corporate securities 144,106 1,525 6,569 419 150,675 1,944 All other U.S. private corporate securities 44,014 518 2,834 10 46,848 528 All other foreign public corporate securities 26,193 35 0 0 26,193 35 All other foreign private corporate securities 46,101 2,384 0 0 46,101 2,384 Asset-backed securities 31,756 58 32,732 333 64,488 391 Commercial mortgage-backed securities 4,309 108 7,377 98 11,686 206 Residential mortgage-backed securities 342 6 0 0 342 6 Total $ 322,351 $ 5,969 $ 58,991 $ 1,152 $ 381,342 $ 7,121 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 (1) Prior period amounts are presented on a basis consistent with the current period presentation. |
Securities Pledged | At December 31, the carrying value of investments pledged to third parties as reported in the Statements of Financial Position included the following: 2015 2014 (in thousands) Fixed maturity securities, available-for-sale $ 10,218 $ 5,098 Trading account assets 0 0 Total securities pledged $ 10,218 $ 5,098 |
Deferred Policy Acquisition C24
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Acquisition Costs Table | The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2015 2014 2013 (in thousands) Balance, beginning of year $ 1,114,431 $ 1,345,504 $ 906,814 Capitalization of commissions, sales and issue expenses 1,535 2,804 4,050 Amortization-Impact of assumption and experience unlocking and true-ups 33,113 91,895 31,666 Amortization-All other (342,265 ) (330,311 ) 353,895 Changes in unrealized investment gains and losses 16,352 4,539 49,079 Ceded DAC upon Reinsurance Treaty with Prudential Insurance (1) (73,864 ) 0 0 Balance, end of year $ 749,302 $ 1,114,431 $ 1,345,504 (1) See Note 1 for further details. |
Value of Business Acquired (Tab
Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
VOBA and Gross Amortization Table | Details of VOBA and related interest and gross amortization for the years ended December 31, are as follows: 2015 2014 2013 (in thousands) Balance, beginning of year $ 39,738 $ 43,500 $ 43,090 Amortization-Impact of assumption and experience unlocking and true-ups (1) 3,412 5,412 6,376 Amortization-All other (1) (10,477 ) (11,181 ) (11,593 ) Interest (2) 2,436 2,615 2,762 Change in unrealized investment gains and losses 1,163 (608 ) 2,865 Ceded VOBA upon Reinsurance Treaty with Prudential Insurance (3) (2,632 ) 0 0 Balance, end of year $ 33,640 $ 39,738 $ 43,500 (1) The weighted average remaining expected life of VOBA was approximately 5.22 years as of December 31, 2015 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 6.05% , 6.1% and 6.14% for the years ended December 31, 2015 , 2014 and 2013 . (3) See Note 1 for further details. |
Future Amortization Table | The following table provides estimated future amortization, net of interest, for the periods indicated (in thousands): 2016 2017 2018 2019 2020 (in thousands) Estimated future VOBA amortization $ 5,570 $ 4,797 $ 4,171 $ 3,510 $ 2,956 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Information Table | The effect of reinsurance for the years ended December 31, 2015 , 2014 and 2013 , was as follows: Gross Unaffiliated Ceded Affiliated Ceded Net (in thousands) 2015 Policy charges and fee income - Life (1) $ 3,416 $ (1,701 ) $ 0 $ 1,715 Policy charges and fee income - Annuity 740,540 (1,432 ) 0 739,108 Realized investment gains (losses), net 247,525 0 (241,473 ) 6,052 Policyholders’ benefits 60,535 (74 ) 0 60,461 General, administrative and other expenses $ 317,928 $ (682 ) $ (3,775 ) $ 313,471 2014 Policy charges and fee income - Life (1) $ 3,522 $ (856 ) $ 0 $ 2,666 Policy charges and fee income - Annuity 805,550 (1,889 ) 0 803,661 Realized investment gains (losses), net (1,967,588 ) 0 1,974,956 7,368 Policyholders’ benefits 137,502 (367 ) 0 137,135 General, administrative and other expenses $ 398,960 $ (838 ) $ (3,874 ) $ 394,248 2013 Policy charges and fee income - Life (1) $ 3,472 $ (1,231 ) $ 0 $ 2,241 Policy charges and fee income - Annuity 809,549 (2,548 ) 0 807,001 Realized investment gains (losses), net 1,076,184 0 (1,260,535 ) (184,351 ) Policyholders’ benefits 29,874 (147 ) 0 29,727 General, administrative and other expenses $ 407,365 $ (776 ) $ (3,910 ) $ 402,679 (1) Life insurance in force face amounts at December 31, 2015 , 2014 and 2013 was $113 million , $ 121 million and $128 million , respectively. |
Certain Long-Duration Contrac27
Certain Long-Duration Contracts With Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2015 and 2014 , the Company had the following guarantees associated with its contracts, by product and guarantee type: December 31, 2015 December 31, 2014 In the Event of Death At Annuitization/ Accumulation (1) In the Event of Death At Annuitization/ Accumulation (1) Variable Annuity Contracts (in thousands) Return of net deposits Account value $ 34,305,352 N/A $ 38,410,155 N/A Net amount at risk $ 341,707 N/A $ 353,902 N/A Average attained age of contractholders 66 years N/A 65 years N/A Minimum return or contract value Account value $ 6,976,880 $ 34,565,409 $ 7,886,833 $ 38,471,465 Net amount at risk $ 1,194,988 $ 2,257,837 $ 916,016 $ 1,358,023 Average attained age of contractholders 68 years 66 years 67 years 64 years Average period remaining until expected annuitization N/A 0.0 years N/A 0.1 years (1) Includes income and withdrawal benefits described herein. |
Schedule of Account Value of Market Value Annuities | December 31, 2015 December 31, 2014 Unadjusted Value Adjusted Value Unadjusted Value Adjusted Value Variable Annuity Contracts (in thousands) Market value adjusted annuities Account value $ 1,056,235 $ 1,053,952 $ 1,244,131 $ 1,251,084 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2015 December 31, 2014 (in thousands) Equity funds $ 24,639,438 $ 28,191,315 Bond funds 12,264,741 12,844,788 Money market funds 2,081,684 2,783,023 Total $ 38,985,863 $ 43,819,126 |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits and other policyholder liabilities” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative are recorded in “Realized investment gains (losses), net.” See Note 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The liabilities for GMAB, GMWB and GMIWB are included in “Future policy benefits and other policyholder liabilities.” The Company and its reinsurance affiliates maintain a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. GMDB GMAB/GMWB/ GMIWB GMIB Totals Variable Annuity (in thousands) Balance as of December 31, 2012 $ 222,527 $ 1,793,135 $ 23,516 $ 2,039,178 Incurred guarantee benefits (1) (3,191 ) (1,014,909 ) (11,650 ) (1,029,750 ) Paid guarantee benefits (27,507 ) 0 (747 ) (28,254 ) Changes in unrealized investment gains and losses 8,041 0 160 8,201 December 31, 2013 199,870 778,226 11,279 989,375 Incurred guarantee benefits (1) 81,524 2,334,185 8,506 2,424,215 Paid guarantee benefits (25,909 ) 0 (724 ) (26,633 ) Changes in unrealized investment gains and losses 128 0 43 171 December 31, 2014 255,613 3,112,411 19,104 3,387,128 Incurred guarantee benefits (1) 43,167 21,666 (4,616 ) 60,217 Paid guarantee benefits (29,240 ) 0 (511 ) (29,751 ) Changes in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) December 31, 2015 $ 265,877 $ 3,134,077 $ 13,864 $ 3,413,818 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserve as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as derivatives. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’ account balances”, are as follows: Sales Inducements (in thousands) Balance as of December 31, 2012 $ 556,830 Capitalization 31,370 Amortization - Impact of assumption and experience unlocking and true-ups 13,038 Amortization - All other 179,219 Change in unrealized investment gains and losses 28,790 Balance as of December 31, 2013 809,247 Capitalization 11,515 Amortization - Impact of assumption and experience unlocking and true-ups 45,417 Amortization - All other (204,563 ) Change in unrealized investment gains and losses 3,591 Balance as of December 31, 2014 665,207 Capitalization 873 Amortization - Impact of assumption and experience unlocking and true-ups 21,125 Amortization - All other (206,263 ) Change in unrealized investment gains and losses 11,063 Ceded DSI upon Reinsurance Treaty with Prudential Insurance (1) (39,253 ) Balance as of December 31, 2015 $ 452,752 (1) See Note 1 for further details. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, were as follows: 2015 2014 2013 (in thousands) Current tax expense (benefit): U.S. federal $ 76,175 $ (8,499 ) $ 36,759 State and local 0 0 0 Total 76,175 (8,499 ) 36,759 Deferred tax expense (benefit): U.S. federal (84,460 ) 17,103 295,613 State and local 0 0 0 Total (84,460 ) 17,103 295,613 Total income tax expense (benefit) (8,285 ) 8,604 332,372 Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (20,708 ) 7,407 (41,149 ) Additional paid-in capital 0 0 4,354 Total income tax expense (benefit) $ (28,993 ) $ 16,011 $ 295,577 |
Schedule of Income Before Income Tax, Domestic and Foreign | The Company’s actual income tax expense on continuing operations for the years ended December 31, differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes for the following reasons: 2015 2014 2013 (in thousands) Expected federal income tax expense (benefit) $ 57,727 $ 90,780 $ 413,162 Non taxable investment income (56,614 ) (69,122 ) (69,665 ) Tax credits (9,389 ) (13,080 ) (10,595 ) Other (9 ) 26 (529 ) Total income tax expense (benefit) $ (8,285 ) $ 8,604 $ 332,372 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table: 2015 2014 (in thousands) Deferred tax assets Insurance reserves $ 156,639 $ 267,536 Investments 0 13,270 Compensation reserves 0 1,760 Other 833 0 Deferred tax assets 157,472 282,566 Deferred tax liabilities VOBA and deferred policy acquisition cost 247,825 370,548 Investments 4,467 0 Deferred sales inducements 158,463 232,822 Net unrealized gain on securities 32,414 68,819 Other 0 1,239 Deferred tax liabilities 443,169 673,428 Net deferred tax asset (liability) $ (285,697 ) $ (390,863 ) |
Fair Value of Assets and Liab29
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 December 31, 2015 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 $ 12,154 $ 0 $ 0 $ 12,154 Obligations of U.S. states and their political subdivisions 0 20,212 0 0 20,212 Foreign government bonds 0 49,283 0 0 49,283 U.S. corporate public securities 0 934,109 15,000 0 949,109 U.S. corporate private securities 0 523,298 107,777 0 631,075 Foreign corporate public securities 0 136,222 0 0 136,222 Foreign corporate private securities 0 220,818 4,531 0 225,349 Asset-backed securities (4) 0 104,797 46,493 0 151,290 Commercial mortgage-backed securities 0 215,740 0 0 215,740 Residential mortgage-backed securities 0 133,838 0 0 133,838 Subtotal 0 2,350,471 173,801 0 2,524,272 Trading account assets: Equity securities 5,653 0 0 0 5,653 Subtotal 5,653 0 0 0 5,653 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 157,257 520 450 0 158,227 Cash equivalents 0 0 225 0 225 Other long-term investments 0 135,209 2,119 (21,508 ) 115,820 Reinsurance recoverables 0 0 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 29,676 7,664 0 37,340 Subtotal excluding separate account assets 162,910 2,515,893 3,196,912 (21,508 ) 5,854,207 Separate account assets (2) 0 39,250,159 0 0 39,250,159 Total assets $ 162,910 $ 41,766,052 $ 3,196,912 $ (21,508 ) $ 45,104,366 Future policy benefits (3) $ 0 $ 0 $ 3,134,077 $ 0 $ 3,134,077 Payables to parent and affiliates 0 25,277 0 (25,277 ) 0 Total liabilities $ 0 $ 25,277 $ 3,134,077 $ (25,277 ) $ 3,134,077 As of December 31, 2014 (5) 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 $ 6,336 $ 0 $ 0 $ 6,336 Obligations of U.S. states and their political subdivisions 0 70,789 0 0 70,789 Foreign government securities 0 37,355 0 0 37,355 U.S. corporate public securities 0 1,072,258 16,860 0 1,089,118 U.S. corporate private securities 0 560,113 98,544 0 658,657 Foreign corporate public securities 0 123,860 0 0 123,860 Foreign corporate private securities 0 229,383 666 0 230,049 Asset-backed securities (4) 0 108,487 40,524 0 149,011 Commercial mortgage-backed securities 0 302,185 0 0 302,185 Residential mortgage-backed securities 0 133,233 0 0 133,233 Subtotal 0 2,643,999 156,594 0 2,800,593 Trading account assets: Equity securities 6,131 0 0 0 6,131 Subtotal 6,131 0 0 0 6,131 Equity securities, available-for-sale 0 17 0 0 17 Short-term investments 57,185 0 0 0 57,185 Cash equivalents 0 0 225 0 225 Other long-term investments 0 118,846 633 (24,288 ) 95,191 Reinsurance recoverables 0 0 2,996,154 0 2,996,154 Receivables from parent and affiliates 0 18,748 22,320 0 41,068 Subtotal excluding separate account assets 63,316 2,781,610 3,175,926 (24,288 ) 5,996,564 Separate account assets (2) 0 44,101,699 0 0 44,101,699 Total assets $ 63,316 $ 46,883,309 $ 3,175,926 $ (24,288 ) $ 50,098,263 Future policy benefits (3) 0 0 3,112,411 0 3,112,411 Payables to parent and affiliates 0 21,249 0 (21,249 ) 0 Total liabilities $ 0 $ 21,249 $ 3,112,411 $ (21,249 ) $ 3,112,411 (1) “Netting” amounts represent cash collateral of $(3.8) million and $3.0 million as of December 31, 2015 and December 31, 2014 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) 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 Statements of Financial Position. (3) As of December 31, 2015 , the net embedded derivative liability position of $3,134 million includes $34 million of embedded derivatives in an asset position and $3,168 million of embedded derivatives in a liability position. As of December 31, 2014 , the net embedded derivative liability position of $3,112 million includes $55 million of embedded derivatives in an asset position and $3,167 million of embedded derivatives in a liability position. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation. |
Fair Value Level Three Amounts By Pricing Source | Level 3 Assets and Liabilities by Price Source – The tables below present the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2015 Internal (1) External (2) Total (in thousands) Corporate securities (3) $ 111,295 $ 16,013 $ 127,308 Asset-backed securities (4) 0 46,493 46,493 Short-term investments 450 0 450 Cash equivalents 225 0 225 Other long-term investments 1,565 554 2,119 Reinsurance recoverables 3,012,653 0 3,012,653 Receivables from parent and affiliates 0 7,664 7,664 Total assets $ 3,126,188 $ 70,724 $ 3,196,912 Future policy benefits $ 3,134,077 $ 0 $ 3,134,077 Total liabilities $ 3,134,077 $ 0 $ 3,134,077 As of December 31, 2014 Internal (1) External (2) Total (in thousands) Corporate securities (3) $ 99,209 $ 16,861 $ 116,070 Asset-backed securities (4) 0 40,524 40,524 Cash equivalents 225 0 225 Other long-term investments 0 633 633 Reinsurance recoverables 2,996,154 0 2,996,154 Receivables from parent and affiliates 0 22,320 22,320 Total assets $ 3,095,588 $ 80,338 $ 3,175,926 Future policy benefits $ 3,112,411 $ 0 $ 3,112,411 Total liabilities $ 3,112,411 $ 0 $ 3,112,411 (1) Represents valuations reflecting both internally-derived and market inputs as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing-services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities available-for-sale. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
Fair Value Inputs, Assets, Quantitative Information | 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 December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,134,077 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0.06 % 1.76 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase As of December 31, 2014 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 99,209 Discounted cash flow Discount rate 3.55 % 11.75 % 3.96 % Decrease Reinsurance recoverables $ 2,996,154 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,112,411 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0 % 1.30 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) 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. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) 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. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder, age, tax status, and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% . (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 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 | 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 December 31, 2015 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 111,295 Discounted cash flow Discount rate 3.71 % 17.95 % 4.43 % Decrease Reinsurance recoverables $ 3,012,653 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,134,077 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0.06 % 1.76 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase As of December 31, 2014 Fair Value Primary Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value (1) (in thousands) Assets: Corporate securities $ 99,209 Discounted cash flow Discount rate 3.55 % 11.75 % 3.96 % Decrease Reinsurance recoverables $ 2,996,154 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits (2) $ 3,112,411 Discounted cash flow Lapse rate (3) 0 % 14 % Decrease NPR spread (4) 0 % 1.30 % Decrease Utilization rate (5) 63 % 95 % Increase Withdrawal rate (6) 74 % 100 % Increase Mortality rate (7) 0 % 14 % Decrease Equity volatility curve 17 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) 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. (3) 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. (4) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements adjusted for any illiquidity risk premium. (5) 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. (6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder, age, tax status, and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% . (7) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 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 and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in Level 3 assets and liabilities – The following tables provide summaries of the 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. Year Ended December 31, 2015 Fixed Maturities Available-For-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Private Securities Asset- Backed Securities (4) Commercial Mortgage-Backed Securities (in thousands) Fair Value, beginning of period $ 16,860 $ 98,544 $ 666 $ 40,524 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (16 ) 62 9 0 Asset management fees and other income 0 0 0 0 0 Included in other comprehensive income (loss) (23 ) (2,992 ) (24 ) (170 ) 0 Net investment income 9 5,264 1 49 0 Purchases 0 6,233 0 20,053 1,565 Sales 0 (1,548 ) 0 (15,878 ) 0 Issuances 0 0 0 0 0 Settlements (119 ) (1,863 ) (678 ) (3,704 ) 0 Transfers into Level 3 (1) 0 4,155 4,504 34,921 0 Transfers out of Level 3 (1) (1,727 ) 0 0 (29,311 ) (1,565 ) Fair Value, end of period $ 15,000 $ 107,777 $ 4,531 $ 46,493 $ 0 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2015 Short-term Investments Cash Equivalents Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair Value, beginning of period $ 0 $ 225 $ 633 $ 2,996,154 $ 22,320 $ (3,112,411 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 1,405 (212,035 ) 0 217,101 Asset management fees and other income 0 0 (17 ) 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 (264 ) 0 Net investment income 0 0 22 0 1 0 Purchases 450 0 179 228,534 0 0 Sales 0 0 0 0 0 0 Issuances 0 0 0 0 0 (238,767 ) Settlements 0 0 (103 ) 0 0 0 Transfers into Level 3 (1) 0 0 0 0 6,941 0 Transfers out of Level 3 (1) 0 0 0 0 (21,334 ) 0 Fair Value, end of period $ 450 $ 225 $ 2,119 $ 3,012,653 $ 7,664 $ (3,134,077 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 1,405 $ (117,840 ) $ 0 $ 119,609 Asset management fees and other income $ 0 $ 0 $ (17 ) $ 0 $ 0 $ 0 Year Ended December 31, 2014 (5) Fixed Maturities Available-For-Sale Trading Account Assets - Equity Securities Equity Securities Available- for-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Private Securities Asset- Backed Securities (4) Commercial Mortgage- Backed Securities (in thousands) Fair Value, beginning of period $ 2,065 $ 93,841 $ 890 $ 63,789 $ 0 $ 313 $ 192 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 1,423 169 0 0 0 0 Asset management fees and other income 0 0 0 0 0 15 0 Included in other comprehensive income (loss) (42 ) (763 ) (41 ) 196 (83 ) 0 0 Net investment income 37 4,953 34 120 0 0 0 Purchases 14,999 5,712 9 14,933 52,518 0 0 Sales 0 0 (202 ) 0 0 0 (192 ) Issuances 0 0 0 0 0 0 0 Settlements (199 ) (6,622 ) (193 ) (40,337 ) 0 (328 ) 0 Transfers into Level 3 (1) 0 0 0 28,152 0 0 0 Transfers out of Level 3 (1) 0 0 0 (26,329 ) (52,435 ) 0 0 Fair Value, end of period $ 16,860 $ 98,544 $ 666 $ 40,524 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 15 $ 0 Year Ended December 31, 2014 (5) Cash Equivalents Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair Value, beginning of period assets/(liabilities) $ 0 $ 486 $ 748,005 $ 6,347 $ (778,226 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 2,013,931 0 (2,088,505 ) Asset management fees and other income 0 (14 ) 0 0 0 Included in other comprehensive income (loss) 0 0 0 (420 ) 0 Net investment income 0 0 0 0 0 Purchases 400 166 234,218 19,351 0 Sales (175 ) 0 0 0 0 Issuances 0 0 0 0 (245,680 ) Settlements 0 (5 ) 0 0 0 Transfers into Level 3 (1) 0 0 0 1,985 0 Transfers out of Level 3 (1) 0 0 0 (4,943 ) 0 Fair Value, end of period assets/(liabilities) $ 225 $ 633 $ 2,996,154 $ 22,320 $ (3,112,411 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 2,040,048 $ 0 $ (2,115,680 ) Asset management fees and other income $ 0 $ (14 ) $ 0 $ 0 $ 0 Year Ended December 31, 2013 (5) Fixed Maturities Available-For-Sale Trading Account Assets - Equity Securities Equity Securities Available- for-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Private Securities Asset- Backed Securities (4) Commercial Mortgage-Backed Securities (in thousands) Fair Value, beginning of period assets/(liabilities) $ 3,292 $ 91,088 $ 1,175 $ 69,298 $ 0 $ 207 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 48 1 0 0 0 0 Asset management fees and other income 0 0 0 0 0 106 0 Included in other comprehensive income (loss) (551 ) (3,490 ) (138 ) (470 ) 18 0 0 Net investment income 41 4,658 30 454 0 0 0 Purchases 0 4,817 0 40,868 17,169 0 192 Sales 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 Settlements (1,171 ) (3,280 ) (178 ) (13,924 ) 0 0 0 Transfers into Level 3 (1) 4,976 0 0 0 0 0 0 Transfers out of Level 3 (1) (4,522 ) 0 0 (29,441 ) (17,187 ) 0 0 Other (3) 0 0 0 (2,996 ) 0 0 0 Fair Value, end of period assets/(liabilities) $ 2,065 $ 93,841 $ 890 $ 63,789 $ 0 $ 313 $ 192 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 $ 107 $ 0 Year Ended December 31, 2013 (5) Other Long- term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair Value, beginning of period assets/(liabilities) $ 1,054 $ 1,732,094 $ 1,995 $ (1,793,137 ) Total gains or (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (739 ) (1,220,073 ) 0 1,262,310 Asset management fees and other income 60 0 0 0 Included in other comprehensive income (loss) 0 0 99 0 Net investment income 0 0 0 0 Purchases 111 235,984 6,250 0 Sales 0 0 (2,996 ) 0 Issuances 0 0 0 (247,399 ) Settlements 0 0 0 0 Transfers into Level 3 (1) 0 0 0 0 Transfers out of Level 3 (1) 0 0 (1,997 ) 0 Other (3) 0 0 2,996 0 Fair Value, end of period $ 486 $ 748,005 $ 6,347 $ (778,226 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ (1,166,676 ) $ 0 $ 1,207,600 Asset management fees and other income $ 51 $ 0 $ 0 $ 0 (1) Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter. (2) 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. (3) Other primarily represents reclassifications of certain assets between reporting categories. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period's amounts are presented on a basis consistent with the current period presentation. |
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 Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2015 Fair Value Carrying Amount (1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 2,793 $ 448,349 $ 451,142 $ 438,172 Policy loans 0 0 13,054 13,054 13,054 Other long-term investments 0 0 3,258 3,258 3,050 Cash and cash equivalents 311 0 0 311 311 Accrued investment income 0 22,615 0 22,615 22,615 Receivables from parent and affiliates 0 14,868 0 14,868 14,868 Other assets 0 1,085 0 1,085 1,085 Total assets $ 311 $ 41,361 $ 464,661 $ 506,333 $ 493,155 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 102,438 $ 102,438 $ 103,003 Cash collateral for loaned securities 0 10,568 0 10,568 10,568 Short-term debt 0 1,000 0 1,000 1,000 Payables to parent and affiliates 0 25,678 0 25,678 25,678 Other liabilities 0 83,464 0 83,464 83,464 Separate account liabilities - investment contracts 0 293 0 293 293 Total liabilities $ 0 $ 121,003 $ 102,438 $ 223,441 $ 224,006 December 31, 2014 Fair Value Carrying Amount (1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 2,779 $ 447,157 $ 449,936 $ 422,563 Policy loans 0 0 13,355 13,355 13,355 Other long-term investments 0 0 2,639 2,639 2,238 Cash and cash equivalents 369 0 0 369 369 Accrued investment income 0 25,008 0 25,008 25,008 Receivables from parent and affiliates 0 10,367 0 10,367 10,367 Other assets 0 1,009 0 1,009 1,009 Total assets $ 369 $ 39,163 $ 463,151 $ 502,683 $ 474,909 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 91,217 $ 91,217 $ 92,663 Cash collateral for loaned securities 0 5,285 0 5,285 5,285 Short-term debt 0 54,354 0 54,354 54,354 Payables to parent and affiliates 0 37,415 0 37,415 37,415 Other liabilities 0 89,956 0 89,956 89,956 Separate account liabilities - investment contracts 0 487 0 487 487 Total liabilities $ 0 $ 187,497 $ 91,217 $ 278,714 $ 280,160 (1) Carrying values presented herein differ from those in the Company’s Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 derivatives contracts by the primary underlying, excluding embedded derivatives which are recorded with the associated host. Many derivative instruments contain multiple underlyings. 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 held with the same counterparty, and non-performance risk. December 31, 2015 December 31, 2014 Gross Fair Value Gross Fair Value Primary Underlying Notional Assets Liabilities Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 115,358 $ 15,910 $ (206 ) $ 83,412 $ 5,555 $ (654 ) Total Qualifying Hedges $ 115,358 $ 15,910 $ (206 ) $ 83,412 $ 5,555 $ (654 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,872,750 $ 84,817 $ (13,452 ) $ 1,902,750 $ 92,507 $ (18,480 ) Interest Rate Options 100,000 9,431 0 100,000 10,736 0 Foreign Currency Foreign Currency Forwards 2,752 23 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 77,729 11,220 0 57,011 4,363 (5 ) Credit Credit Default Swaps 0 0 0 1,200 0 (43 ) Equity Total Return Swaps 217,999 320 (3,626 ) 220,986 1,937 0 Equity Options 18,286,800 15,054 (7,993 ) 6,842,242 3,748 (2,067 ) Total Non-Qualifying Hedges $ 20,558,030 $ 120,865 $ (25,071 ) $ 9,124,189 $ 113,291 $ (20,595 ) Total Derivatives (1) $ 20,673,388 $ 136,775 $ (25,277 ) $ 9,207,601 $ 118,846 $ (21,249 ) (1) Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $3,134 million and $3,112 million as of December 31, 2015 and 2014 , respectively, included in “Future policy benefits.” The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re and Prudential Insurance included in “Reinsurance recoverables” was an asset of $3,013 million and $2,996 million as of December 31, 2015 and 2014 , respectively. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables) that are offset in the 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 Statements of Financial Position. December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 118,846 $ (24,288 ) $ 94,558 $ (82,602 ) $ 11,956 Offsetting of Financial Liabilities: Derivatives $ 21,249 $ (21,249 ) $ 0 $ 0 $ 0 (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) that are offset in the 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 Statements of Financial Position. December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 135,210 $ (21,508 ) $ 113,702 $ (101,288 ) $ 12,414 Offsetting of Financial Liabilities: Derivatives $ 25,277 $ (25,277 ) $ 0 $ 0 $ 0 December 31, 2014 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 118,846 $ (24,288 ) $ 94,558 $ (82,602 ) $ 11,956 Offsetting of Financial Liabilities: Derivatives $ 21,249 $ (21,249 ) $ 0 $ 0 $ 0 (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: Year Ended December 31, 2015 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 $ 608 $ 1,116 $ 10,008 Total cash flow hedges 0 608 1,116 10,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 20,536 0 0 0 Currency 115 0 0 0 Currency/Interest Rate 8,337 0 202 0 Credit (3 ) 0 0 0 Equity (3,233 ) 0 0 0 Embedded Derivatives (24,371 ) 0 0 0 Total non-qualifying hedges 1,381 0 202 0 Total $ 1,381 $ 608 $ 1,318 $ 10,008 Year Ended December 31, 2014 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 $ 14 $ 134 $ 8,492 Total cash flow hedges 0 14 134 8,492 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 123,327 0 0 0 Currency 0 0 0 0 Currency/Interest Rate 5,934 0 143 0 Credit (14 ) 0 0 0 Equity (23,811 ) 0 0 0 Embedded Derivatives (113,549 ) 0 0 0 Total non-qualifying hedges (8,113 ) 0 143 0 Total $ (8,113 ) $ 14 $ 277 $ 8,492 Year Ended December 31, 2013 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 $ (89 ) $ (7 ) $ (585 ) Total cash flow hedges 0 (89 ) (7 ) (585 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (116,025 ) 0 0 0 Currency 0 0 0 0 Currency/Interest Rate (204 ) 0 24 0 Credit (103 ) 0 0 0 Equity (79,498 ) 0 0 0 Embedded Derivatives 1,775 0 0 0 Total non-qualifying hedges (194,055 ) 0 24 0 Total $ (194,055 ) $ (89 ) $ 17 $ (585 ) (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 “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2012 $ (3,068 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013 (680 ) Amount reclassified into current period earnings 95 Balance, December 31, 2013 (3,653 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 8,640 Amount reclassified into current period earnings (148 ) Balance, December 31, 2014 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amounts reclassified into current period earnings (2,070 ) Balance, December 31, 2015 $ 14,847 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Future Minimum Lease Payments, Related Party | Assuming that the written service agreement between PALAC and PAIST continues indefinitely, PALAC’s allocated future minimum lease payments and sub-lease receipts per year and in aggregate as of December 31, 2015 are as follows: Lease Sub-Lease (in thousands) 2016 $ 3,279 0 2017 3,279 0 2018 3,279 0 2019 3,006 0 2020 0 0 2021 and thereafter 0 0 Total $ 12,843 0 |
Quarterly Results of Operatio32
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2015 and 2014 are summarized in the table below: Three months ended March 31 June 30 September 30 December 31 2015 (in thousands) Total revenues $ 305,682 $ 279,135 $ 268,802 $ 219,952 Total benefits and expenses 331,751 122,886 388,581 65,421 Income (loss) from operations before income taxes (26,069 ) 156,249 (119,779 ) 154,531 Net income (loss) $ (21,302 ) $ 131,914 $ (104,826 ) $ 167,431 Three months ended March 31 June 30 September 30 December 31 (in thousands) 2014 Total revenues $ 311,249 $ 309,786 $ 308,006 $ 311,187 Total benefits and expenses 216,896 242,370 197,204 324,387 Income from operations before income taxes 94,353 67,416 110,802 (13,200 ) Net income $ 77,498 $ 57,431 $ 96,037 $ 19,801 |
Significant Accounting Polici33
Significant Accounting Policies and Pronouncements (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Percentage of Loan To value Ratio (greater than) | 100.00% | |
Debt Service Coverage Ratios (less than) | 1 | |
Partnership Interest Threshold, Policy, Percentage (less than) | 3.00% | |
Expected Life of Contract Minimum | 1 month | |
Expected Life of Contract Maximum | 3 months | |
Significant Accounting Policies [Line Items] | ||
Intangible asset useful life | 8 years | |
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102.00% | |
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105.00% | |
Assumed Interest Rate - Minimum | 0.00% | 0.00% |
Assumed Interest Rate - Maximum | 8.25% | 8.25% |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment [Line Items] | |||
Net change in unrealized gains (losses) from other trading account assets | $ (600,000) | $ (900,000) | $ 800,000 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Non Income Producing Assets, Fixed Maturities | $ 0 | ||
Gross unrealized losses related to high or highest quality securities | 22,600,000 | $ 4,000,000 | |
Gross unrealized losses related to other than high or highest quality securities | 12,100,000 | 3,100,000 | |
Twelve months or more Unrealized Losses | 18,791,000 | 1,152,000 | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 11,000,000 | ||
Fixed maturities | |||
Investment [Line Items] | |||
Assets Deposited With Governmental Authorities | 8,000,000 | 7,000,000 | |
Cash Collateral For Loaned Securities | |||
Investment [Line Items] | |||
Financial Instruments Owned and Pledged as Collateral, Associated Liabilities | $ 11,000,000 | $ 5,000,000 | |
California | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 22.00% | ||
New York | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 12.00% |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | $ 2,433,626 | $ 2,609,253 |
Fair Value | 2,524,272 | 2,800,593 |
Amortized Cost | 14 | 14 |
Fair Value | 17 | 17 |
Net unrealized gains on impaired securities relating to changes in value of securities subsequent to the impairment measurement date | 100 | 100 |
Fixed maturities, available-for-sale | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 2,609,253 | |
Gross Unrealized Gains | 125,359 | 198,461 |
Gross Unrealized Losses | 34,713 | 7,121 |
Fair Value | 2,800,593 | |
OTTI in AOCI | (42) | (85) |
Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 12,233 | 6,324 |
Gross Unrealized Gains | 28 | 22 |
Gross Unrealized Losses | 107 | 10 |
Fair Value | 12,154 | 6,336 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Obligations of U.S. states and their political subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 20,116 | 69,486 |
Gross Unrealized Gains | 474 | 1,323 |
Gross Unrealized Losses | 378 | 20 |
Fair Value | 20,212 | 70,789 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Foreign government bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 43,188 | 29,738 |
Gross Unrealized Gains | 6,123 | 7,621 |
Gross Unrealized Losses | 28 | 4 |
Fair Value | 49,283 | 37,355 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 203,803 | 198,277 |
Gross Unrealized Gains | 15,969 | 19,909 |
Gross Unrealized Losses | 4,263 | 1,593 |
Fair Value | 215,509 | 216,593 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other U.S. public corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 818,627 | 918,368 |
Gross Unrealized Gains | 52,866 | 81,539 |
Gross Unrealized Losses | 7,717 | 1,944 |
Fair Value | 863,776 | 997,963 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other U.S. private corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 494,640 | 512,793 |
Gross Unrealized Gains | 30,996 | 48,451 |
Gross Unrealized Losses | 4,407 | 528 |
Fair Value | 521,229 | 560,716 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other foreign public corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 132,414 | 110,909 |
Gross Unrealized Gains | 3,781 | 8,438 |
Gross Unrealized Losses | 608 | 35 |
Fair Value | 135,587 | 119,312 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | All other foreign private corporate securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 219,009 | 201,040 |
Gross Unrealized Gains | 2,487 | 8,444 |
Gross Unrealized Losses | 15,842 | 2,384 |
Fair Value | 205,654 | 207,100 |
OTTI in AOCI | 0 | 0 |
Fixed maturities, available-for-sale | Asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 149,196 | 144,324 |
Gross Unrealized Gains | 2,786 | 5,078 |
Gross Unrealized Losses | 692 | 391 |
Fair Value | 151,290 | 149,011 |
OTTI in AOCI | (35) | (39) |
Fixed maturities, available-for-sale | Commercial mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 211,429 | 291,868 |
Gross Unrealized Gains | 4,963 | 10,523 |
Gross Unrealized Losses | 652 | 206 |
Fair Value | 215,740 | 302,185 |
OTTI in AOCI | 0 | (10) |
Fixed maturities, available-for-sale | Residential mortgage-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 128,971 | 126,126 |
Gross Unrealized Gains | 4,886 | 7,113 |
Gross Unrealized Losses | 19 | 6 |
Fair Value | 133,838 | 133,233 |
OTTI in AOCI | (7) | (36) |
Equity securities, available-for-sale | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 14 | 14 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 17 | 17 |
Equity securities, available-for-sale | Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Equity securities, available-for-sale | Mutual funds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized Cost | 14 | 14 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 17 | $ 17 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available for Sale Amortized Cost | ||
Due in one year or less | $ 206,605 | |
Due after one year through five years | 812,798 | |
Due after five years through ten years | 524,967 | |
Due after ten years | 399,660 | |
Total | 2,433,626 | $ 2,609,253 |
Available for Sale Securities Fair Value | ||
Due in one year or less | 201,762 | |
Due after one year through five years | 840,843 | |
Due after five years through ten years | 548,689 | |
Due after ten years | 432,110 | |
Total | 2,524,272 | $ 2,800,593 |
Asset-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 149,196 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 151,290 | |
Commercial mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 211,429 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | 215,740 | |
Residential mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Debt Maturities, without single maturity date | 128,971 | |
Available for Sale Securities Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 133,838 |
Investments (Fixed Maturities P
Investments (Fixed Maturities Proceeds)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed maturities, available-for-sale | |||
Available For Sale | |||
Proceeds from sales | $ 33,604 | $ 308,458 | $ 314,415 |
Proceeds from maturities/repayments | 453,016 | 681,426 | 1,175,680 |
Gross investment gains from sales, prepayments and maturities | 5,788 | 18,110 | 18,619 |
Gross investment losses from sales and maturities | (937) | (3,404) | (9,824) |
Fixed maturity and equity security impairments | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | (20) | 0 | 0 |
Equity securities, available-for-sale | |||
Available For Sale | |||
Proceeds from sales | 0 | 192 | 14 |
Gross investment gains from sales, prepayments and maturities | 0 | 1 | 10 |
Fixed maturity and equity security impairments | |||
Writedowns for impairments on equity securities | $ 0 | $ 0 | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ 93 | $ 1,800 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (17) | (1,682) |
Additional credit loss impairments recognized in the current period on securities previously impaired | 20 | 0 |
Increases due to the passage of time on previously recorded credit losses | 0 | 0 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (10) | (25) |
Balance, end of period | $ 86 | $ 93 |
Investments (Trading Account As
Investments (Trading Account Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Cost | $ 5,618 | $ 5,471 |
Fair Value | $ 5,653 | $ 6,131 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 436,075 | $ 420,305 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Valuation allowance | $ (643) | $ (482) |
Total net commercial mortgage and agricultural property loans by property type | 435,432 | 419,823 |
Total net other loans | 2,740 | 2,740 |
Total commercial mortgage and other loans | 438,172 | 422,563 |
Apartments/Multi-Family | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 136,190 | $ 143,057 |
Commercial mortgage loans, Percentage | 31.20% | 34.00% |
Industrial | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 58,621 | $ 87,088 |
Commercial mortgage loans, Percentage | 13.50% | 20.70% |
Retail | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 67,358 | $ 72,226 |
Commercial mortgage loans, Percentage | 15.50% | 17.20% |
Office | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 100,357 | $ 44,621 |
Commercial mortgage loans, Percentage | 23.00% | 10.60% |
Other | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 18,660 | $ 14,119 |
Commercial mortgage loans, Percentage | 4.30% | 3.40% |
Hospitality | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 4,963 | $ 5,081 |
Commercial mortgage loans, Percentage | 1.10% | 1.20% |
Total commercial mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 386,149 | $ 366,192 |
Commercial mortgage loans, Percentage | 88.60% | 87.10% |
Agricultural property loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Commercial mortgage loans | $ 49,926 | $ 54,113 |
Commercial mortgage loans, Percentage | 11.40% | 12.90% |
Valuation allowance | $ 0 | $ 0 |
Uncollateralized loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Uncollateralized loans | $ 2,740 | $ 2,740 |
Investments (Allowance for Loss
Investments (Allowance for Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, beginning of year | $ 482 | $ 1,256 | $ 2,177 |
Addition to (release of) allowance for losses | 161 | (774) | (921) |
Allowance for credit losses, end of year | 643 | 482 | 1,256 |
Agricultural Property Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, beginning of year | 100 | 100 | |
Allowance for credit losses, end of year | $ 100 | $ 100 | $ 100 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ 0 | $ 0 |
Collectively evaluated for impairment | 643 | 482 |
Total ending balance | 643 | 482 |
Recorded Investment: | ||
Gross of reserves: individually evaluated for impairment | 0 | 0 |
Gross of reserves: collectively evaluated for impairment | 438,815 | 423,045 |
Total ending balance, gross of reserves | 438,815 | 423,045 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Collectively evaluated for impairment | 100 | 100 |
Recorded Investment: | ||
Gross of reserves: collectively evaluated for impairment | 50,000 | 54,000 |
Uncollateralized loans | ||
Recorded Investment: | ||
Gross of reserves: collectively evaluated for impairment | $ 3,000 | $ 3,000 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial and agricultural mortgage loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Credit Quality Indicators [Line Items] | ||
Financing Receivable | $ 436,075 | $ 420,305 |
0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 313,280 | 277,637 |
60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 95,977 | 116,176 |
70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 26,818 | 26,492 |
Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 0 |
Greater than 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 424,593 | 403,595 |
Greater than 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 303,215 | 262,853 |
Greater than 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 95,977 | 115,708 |
Greater than 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 25,401 | 25,034 |
Greater than 1.2X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 0 |
1.0X to 1.2X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 10,490 | 6,221 |
1.0X to 1.2X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 9,073 | 4,295 |
1.0X to 1.2X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 468 |
1.0X to 1.2X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 1,417 | 1,458 |
1.0X to 1.2X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 0 |
Less than 1.0X | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 992 | 10,489 |
Less than 1.0X | 0%-59.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 992 | 10,489 |
Less than 1.0X | 60%-69.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 0 |
Less than 1.0X | 70%-79.99% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | 0 | 0 |
Less than 1.0X | Greater than 80% | ||
Credit Quality Indicators [Line Items] | ||
Financing Receivable | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Long Term Investments [Line Items] | ||
Total other long-term investments | $ 182,157 | $ 162,783 |
Joint ventures and limited partnerships | ||
Other Long Term Investments [Line Items] | ||
Total other long-term investments | 66,890 | 68,225 |
Derivatives | ||
Other Long Term Investments [Line Items] | ||
Total other long-term investments | $ 115,267 | $ 94,558 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 144,871 | $ 169,753 | $ 224,447 |
Less: investment expenses | (5,441) | (5,742) | (6,564) |
Net investment income | 139,430 | 164,011 | 217,883 |
Fixed maturities, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 115,998 | 140,114 | 191,043 |
Equity securities, available-for-sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 0 | 0 | 0 |
Trading account assets | |||
Net Investment Income [Line Items] | |||
Gross investment income | 349 | 325 | 342 |
Commercial mortgage and other loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 22,696 | 21,802 | 28,463 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 794 | 739 | 675 |
Short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 396 | 281 | 323 |
Other long-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 4,638 | $ 6,492 | $ 3,601 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 6,052 | $ 7,368 | $ (184,351) |
Fixed maturities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 4,831 | 14,706 | 8,795 |
Equity securities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 0 | 1 | 10 |
Commercial mortgage and other loans | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (161) | 774 | 933 |
Derivatives | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 1,381 | (8,113) | (194,055) |
Other | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 1 | $ 0 | $ (34) |
Investments (Balance of and Cha
Investments (Balance of and Changes in AOCI Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 84,622 | ||
Income tax benefit (expense) | 8,285 | $ (8,604) | $ (332,372) |
Accumulated other comprehensive income (loss), Ending Balance | 46,166 | 84,622 | |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (30) | 10 | 7 |
Change in component during period | (54) | (40) | 3 |
Amounts reclassified from AOCI | 0 | ||
Income tax benefit (expense) | 19 | ||
Accumulated other comprehensive income (loss), Ending Balance | (65) | (30) | 10 |
Net Unrealized Investment Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 84,652 | 70,857 | 147,280 |
Change in component during period | (54,279) | 13,795 | (76,423) |
Amounts reclassified from AOCI | (4,831) | (14,706) | (8,805) |
Income tax benefit (expense) | 20,689 | ||
Accumulated other comprehensive income (loss), Ending Balance | 46,231 | 84,652 | 70,857 |
Cash Flow Hedge Gain Loss To AOCI | 14,800 | 5,000 | (4,000) |
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 84,622 | 70,867 | 147,287 |
Change in component during period | (54,333) | 13,755 | (76,420) |
Amounts reclassified from AOCI | (4,831) | (14,706) | (8,805) |
Income tax benefit (expense) | 20,708 | ||
Accumulated other comprehensive income (loss), Ending Balance | $ 46,166 | $ 84,622 | $ 70,867 |
Investments (Reclassifications
Investments (Reclassifications of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flow hedges - Currency/Interest rate | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | $ 2,070 | $ 148 | $ (95) |
Net unrealized investment gains (losses) on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | 2,761 | 14,558 | 8,900 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | 4,831 | 14,706 | 8,805 |
Total reclassifications for the period | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | $ 4,831 | $ 14,706 | $ 8,805 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 84,622 | ||
Accumulated other comprehensive income (loss), Ending Balance | 46,166 | $ 84,622 | |
Net Unrealized Gains (Losses) on Investments | Securities Related to Other Than Temporary Impairments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 1 | 323 | $ 545 |
Net investment gains (losses) on investments arising during the period | (9) | (11) | 483 |
Reclassification adjustment for (gains) losses included in net income | 17 | (311) | (705) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Accumulated other comprehensive income (loss), Ending Balance | 9 | 1 | 323 |
Deferred Policy Acquisition Costs and Other Costs | Securities Related to Other Than Temporary Impairments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 0 | (116) | (214) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (3) | 116 | 98 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Accumulated other comprehensive income (loss), Ending Balance | (3) | 0 | (116) |
Future Policy Benefits | Securities Related to Other Than Temporary Impairments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 0 | (14) | 0 |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 14 | (14) |
Accumulated other comprehensive income (loss), Ending Balance | 0 | 0 | (14) |
Deferred Income Tax (Liability) Benefit | Securities Related to Other Than Temporary Impairments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 16 | (51) | (100) |
Net investment gains (losses) on investments arising during the period | 3 | 4 | (168) |
Reclassification adjustment for (gains) losses included in net income | (6) | 109 | 247 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 1 | (41) | (35) |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | (5) | 5 |
Accumulated other comprehensive income (loss), Ending Balance | 14 | 16 | (51) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | Securities Related to Other Than Temporary Impairments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 17 | 142 | 231 |
Net investment gains (losses) on investments arising during the period | (6) | (7) | 315 |
Reclassification adjustment for (gains) losses included in net income | 11 | (202) | (458) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (2) | 75 | 63 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 9 | (9) |
Accumulated other comprehensive income (loss), Ending Balance | $ 20 | $ 17 | $ 142 |
Investments (All Other Net Unre
Investments (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 84,622 | ||
Accumulated other comprehensive income (loss), Ending Balance | 46,166 | $ 84,622 | |
Net Unrealized Gains (Losses) on Investments | Other Net Unrealized Investment Gains and Losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 198,922 | 184,727 | $ 376,777 |
Net investment gains (losses) on investments arising during the period | (86,623) | 28,590 | (183,950) |
Reclassification adjustment for (gains) losses included in net income | (4,848) | (14,395) | (8,100) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Accumulated other comprehensive income (loss), Ending Balance | 107,451 | 198,922 | 184,727 |
Deferred Policy Acquisition Costs and Other Costs | Other Net Unrealized Investment Gains and Losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (59,045) | (66,452) | (147,089) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 28,580 | 7,407 | 80,637 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Accumulated other comprehensive income (loss), Ending Balance | (30,465) | (59,045) | (66,452) |
Future Policy Benefits | Other Net Unrealized Investment Gains and Losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (8,372) | (8,187) | (2,164) |
Net investment gains (losses) on investments arising during the period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits | 3,776 | (185) | (6,023) |
Accumulated other comprehensive income (loss), Ending Balance | (4,596) | (8,372) | (8,187) |
Deferred Income Tax (Liability) Benefit | Other Net Unrealized Investment Gains and Losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (46,870) | (39,363) | (80,468) |
Net investment gains (losses) on investments arising during the period | 30,319 | (10,013) | 64,383 |
Reclassification adjustment for (gains) losses included in net income | 1,697 | 5,036 | 2,835 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (10,003) | (2,594) | (28,222) |
Impact of net unrealized investment (gains) losses on future policy benefits | (1,322) | 64 | 2,109 |
Accumulated other comprehensive income (loss), Ending Balance | (26,179) | (46,870) | (39,363) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | Other Net Unrealized Investment Gains and Losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 84,635 | 70,725 | 147,056 |
Net investment gains (losses) on investments arising during the period | (56,304) | 18,577 | (119,567) |
Reclassification adjustment for (gains) losses included in net income | (3,151) | (9,359) | (5,265) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 18,577 | 4,813 | 52,415 |
Impact of net unrealized investment (gains) losses on future policy benefits | 2,454 | (121) | (3,914) |
Accumulated other comprehensive income (loss), Ending Balance | $ 46,211 | $ 84,635 | $ 70,725 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ 107,460 | $ 198,923 | $ 185,050 |
Derivatives designated as cash flow hedges | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 14,847 | 4,839 | (3,653) |
Fixed maturities | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 90,637 | 191,339 | 184,891 |
Fixed maturities | Securities Related to Other Than Temporary Impairments | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 9 | 1 | 323 |
Equity securities, available-for-sale | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 3 | 3 | 2 |
Affiliated notes | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | 1,660 | 2,351 | 3,113 |
Other investments | |||
Investment [Line Items] | |||
Net unrealized gains (losses) on investments | $ 304 | $ 390 | $ 374 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | $ 592,004 | $ 322,351 |
Less than 12 months Gross Unrealized Losses | 15,922 | 5,969 |
Twelve months or more Fair Value | 160,128 | 58,991 |
Twelve months or more Gross Unrealized Losses | 18,791 | 1,152 |
Total Fair Value | 752,132 | 381,342 |
Total Gross Unrealized Losses | 34,713 | 7,121 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 8,480 | 2,676 |
Less than 12 months Gross Unrealized Losses | 107 | 10 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 8,480 | 2,676 |
Total Gross Unrealized Losses | 107 | 10 |
Obligations of U.S. states and their political subdivisions | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 6,887 | 0 |
Less than 12 months Gross Unrealized Losses | 378 | 0 |
Twelve months or more Fair Value | 0 | 7,305 |
Twelve months or more Gross Unrealized Losses | 0 | 20 |
Total Fair Value | 6,887 | 7,305 |
Total Gross Unrealized Losses | 378 | 20 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 13,616 | 4,632 |
Less than 12 months Gross Unrealized Losses | 28 | 4 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 13,616 | 4,632 |
Total Gross Unrealized Losses | 28 | 4 |
Public utilities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 49,104 | 18,222 |
Less than 12 months Gross Unrealized Losses | 1,421 | 1,321 |
Twelve months or more Fair Value | 14,217 | 2,174 |
Twelve months or more Gross Unrealized Losses | 2,842 | 272 |
Total Fair Value | 63,321 | 20,396 |
Total Gross Unrealized Losses | 4,263 | 1,593 |
All other U.S. public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 207,578 | 144,106 |
Less than 12 months Gross Unrealized Losses | 6,297 | 1,525 |
Twelve months or more Fair Value | 29,828 | 6,569 |
Twelve months or more Gross Unrealized Losses | 1,420 | 419 |
Total Fair Value | 237,406 | 150,675 |
Total Gross Unrealized Losses | 7,717 | 1,944 |
All other U.S. private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 84,318 | 44,014 |
Less than 12 months Gross Unrealized Losses | 4,020 | 518 |
Twelve months or more Fair Value | 3,550 | 2,834 |
Twelve months or more Gross Unrealized Losses | 387 | 10 |
Total Fair Value | 87,868 | 46,848 |
Total Gross Unrealized Losses | 4,407 | 528 |
All other foreign public corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 76,573 | 26,193 |
Less than 12 months Gross Unrealized Losses | 608 | 35 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 76,573 | 26,193 |
Total Gross Unrealized Losses | 608 | 35 |
All other foreign private corporate securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 38,047 | 46,101 |
Less than 12 months Gross Unrealized Losses | 1,972 | 2,384 |
Twelve months or more Fair Value | 85,341 | 0 |
Twelve months or more Gross Unrealized Losses | 13,870 | 0 |
Total Fair Value | 123,388 | 46,101 |
Total Gross Unrealized Losses | 15,842 | 2,384 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 50,195 | 31,756 |
Less than 12 months Gross Unrealized Losses | 430 | 58 |
Twelve months or more Fair Value | 26,359 | 32,732 |
Twelve months or more Gross Unrealized Losses | 262 | 333 |
Total Fair Value | 76,554 | 64,488 |
Total Gross Unrealized Losses | 692 | 391 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 55,065 | 4,309 |
Less than 12 months Gross Unrealized Losses | 642 | 108 |
Twelve months or more Fair Value | 833 | 7,377 |
Twelve months or more Gross Unrealized Losses | 10 | 98 |
Total Fair Value | 55,898 | 11,686 |
Total Gross Unrealized Losses | 652 | 206 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 2,141 | 342 |
Less than 12 months Gross Unrealized Losses | 19 | 6 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 2,141 | 342 |
Total Gross Unrealized Losses | 19 | 6 |
Equity securities, available-for-sale | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months Fair Value | 0 | 0 |
Less than 12 months Gross Unrealized Losses | 0 | 0 |
Twelve months or more Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 0 | 0 |
Total Gross Unrealized Losses | $ 0 | $ 0 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 10,218 | $ 5,098 |
Fixed maturities, available-for-sale | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 10,218 | 5,098 |
Trading account assets | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 0 | $ 0 |
Deferred Policy Acquisition C54
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 1,114,431 | $ 1,345,504 | $ 906,814 |
Capitalization of commissions, sales and issue expenses | 1,535 | 2,804 | 4,050 |
Amortization-Impact of assumption and experience unlocking and true-ups | 33,113 | 91,895 | 31,666 |
Amortization-All other | (342,265) | (330,311) | 353,895 |
Changes in unrealized investment gains and losses | 16,352 | 4,539 | 49,079 |
Ceded DAC upon Reinsurance Treaty with Prudential Insurance | (73,864) | 0 | 0 |
Balance, end of year | $ 749,302 | $ 1,114,431 | $ 1,345,504 |
Value of Business Acquired (Bal
Value of Business Acquired (Balance of and Changes in VOBA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, beginning of year | $ 39,738 | $ 43,500 | $ 43,090 |
Amortization - Impact of assumption and experience unlocking and true-ups | 3,412 | 5,412 | 6,376 |
Amortization- All Other | (10,477) | (11,181) | (11,593) |
Interest | 2,436 | 2,615 | 2,762 |
Change in unrealized investment gains and losses | 1,163 | (608) | 2,865 |
Ceded VOBA upon Reinsurance Treaty with Prudential Insurance | (2,632) | 0 | 0 |
Balance, end of year | $ 33,640 | $ 39,738 | $ 43,500 |
Weighted Average Remaining Life VOBA | 5 years 2 months 19 days | ||
Interest Accrual Rate VOBA | 6.05% | 6.10% | 6.14% |
Value of Business Acquired (Est
Value of Business Acquired (Estimated Future Amortization, Net of Interest) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Insurance [Abstract] | |
2,016 | $ 5,570 |
2,017 | 4,797 |
2,018 | 4,171 |
2,019 | 3,510 |
2,020 | $ 2,956 |
Reinsurance (Reinsurance Info)
Reinsurance (Reinsurance Info) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Ceded Credit Risk [Line Items] | |||
Policy charges fee income - Life | $ 1,715 | $ 2,666 | $ 2,241 |
Policy charges and fee income - Annuity | 739,108 | 803,661 | 807,001 |
Realized investment gains (losses), net | 6,052 | 7,368 | (184,351) |
Policyholders’ benefits | 60,461 | 137,135 | 29,727 |
General, administrative and other expenses | 313,471 | 394,248 | 402,679 |
Life Insurance, In force | 113,000 | 121,000 | 128,000 |
Reinsurance Recoverable, Guarantee Benefits | 3,088,328 | 2,996,845 | |
Gross | |||
Ceded Credit Risk [Line Items] | |||
Policy charges fee income - Life | 3,416 | 3,522 | 3,472 |
Policy charges and fee income - Annuity | 740,540 | 805,550 | 809,549 |
Realized investment gains (losses), net | 247,525 | (1,967,588) | 1,076,184 |
Policyholders’ benefits | 60,535 | 137,502 | 29,874 |
General, administrative and other expenses | 317,928 | 398,960 | 407,365 |
Unaffiliated Ceded | |||
Ceded Credit Risk [Line Items] | |||
Policy charges fee income - Life | (1,701) | (856) | (1,231) |
Policy charges and fee income - Annuity | (1,432) | (1,889) | (2,548) |
Realized investment gains (losses), net | 0 | 0 | 0 |
Policyholders’ benefits | (74) | (367) | (147) |
General, administrative and other expenses | (682) | (838) | (776) |
Affiliated Ceded | |||
Ceded Credit Risk [Line Items] | |||
Policy charges fee income - Life | 0 | 0 | 0 |
Policy charges and fee income - Annuity | 0 | 0 | 0 |
Realized investment gains (losses), net | (241,473) | 1,974,956 | (1,260,535) |
Policyholders’ benefits | 0 | 0 | 0 |
General, administrative and other expenses | $ (3,775) | $ (3,874) | $ (3,910) |
Certain Long-Duration Contrac58
Certain Long-Duration Contracts With Guarantees (Guarantees Associated with Variable Annuity Contracts, by Guarantee Type) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Return of net deposits | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 34,305,352 | $ 38,410,155 |
Net amount at risk | $ 341,707 | $ 353,902 |
Average attained age of contractholders | 66 years | 65 years |
Minimum return or contract value | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 6,976,880 | $ 7,886,833 |
Net amount at risk | $ 1,194,988 | $ 916,016 |
Average attained age of contractholders | 68 years | 67 years |
Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 34,565,409 | $ 38,471,465 |
Net amount at risk | $ 2,257,837 | $ 1,358,023 |
Average attained age of contractholders | 66 years | 64 years |
Average period remaining until expected annuitization | 1 day | 1 month 15 days |
Certain Long-Duration Contrac59
Certain Long-Duration Contracts With Guarantees (Guarantees Associated with Variable Annuity Contracts, by guarantee, by Guarantee Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Unadjusted Value | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 1,056,235 | $ 1,244,131 |
Adjusted Value | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 1,053,952 | $ 1,251,084 |
Certain Long-Duration Contrac60
Certain Long-Duration Contracts With Guarantees (Account Balances of Variable Annuity Contracts with Guarantees Invested in General and Separate Account Investment Options) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account balances with guarantee invested in separate account investment options | $ 38,985,863 | $ 43,819,126 |
Net Amount at Risk by Product and Guarantee, General Account Value | 2,300,000 | 2,500,000 |
Equity funds | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account balances with guarantee invested in separate account investment options | 24,639,438 | 28,191,315 |
Bond funds | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account balances with guarantee invested in separate account investment options | 12,264,741 | 12,844,788 |
Money market funds | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account balances with guarantee invested in separate account investment options | $ 2,081,684 | $ 2,783,023 |
Certain Long-Duration Contrac61
Certain Long-Duration Contracts With Guarantees (Summary of the Changes in General Account Liabilities for Guarantees on Variable Contracts) (Details) - Variable Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantee Benefits, Beginning Balance | $ 3,387,128 | $ 989,375 | $ 2,039,178 |
Incurred guarantee benefits | 60,217 | 2,424,215 | (1,029,750) |
Paid guarantee benefits | (29,751) | (26,633) | (28,254) |
Changes in unrealized investment gains and losses | (3,776) | 171 | 8,201 |
Liabilities for Guarantee Benefits, Ending Balance | 3,413,818 | 3,387,128 | 989,375 |
GMDB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantee Benefits, Beginning Balance | 255,613 | 199,870 | 222,527 |
Incurred guarantee benefits | 43,167 | 81,524 | (3,191) |
Paid guarantee benefits | (29,240) | (25,909) | (27,507) |
Changes in unrealized investment gains and losses | (3,663) | 128 | 8,041 |
Liabilities for Guarantee Benefits, Ending Balance | 265,877 | 255,613 | 199,870 |
GMAB/GMWB/ GMIWB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantee Benefits, Beginning Balance | 3,112,411 | 778,226 | 1,793,135 |
Incurred guarantee benefits | 21,666 | 2,334,185 | (1,014,909) |
Paid guarantee benefits | 0 | 0 | 0 |
Changes in unrealized investment gains and losses | 0 | 0 | 0 |
Liabilities for Guarantee Benefits, Ending Balance | 3,134,077 | 3,112,411 | 778,226 |
GMIB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Liabilities for Guarantee Benefits, Beginning Balance | 19,104 | 11,279 | 23,516 |
Incurred guarantee benefits | (4,616) | 8,506 | (11,650) |
Paid guarantee benefits | (511) | (724) | (747) |
Changes in unrealized investment gains and losses | (113) | 43 | 160 |
Liabilities for Guarantee Benefits, Ending Balance | $ 13,864 | $ 19,104 | $ 11,279 |
Certain Long-Duration Contrac62
Certain Long-Duration Contracts With Guarantees (Changes in Deferred Sales Inducements, Reported as "Interest credited to policyholders' account (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Deferred Sales Inducements, Beginning Balance | $ 665,207 | $ 809,247 | $ 556,830 |
Capitalization | 873 | 11,515 | 31,370 |
Amortization - Impact of assumption and experience unlocking and true-ups | 21,125 | 45,417 | 13,038 |
Amortization - All other | (206,263) | (204,563) | 179,219 |
Change in unrealized investment gains and losses | 11,063 | 3,591 | 28,790 |
Ceded DSI upon Reinsurance Treaty with Prudential Insurance | (39,253) | ||
Deferred Sales Inducements, Ending Balance | $ 452,752 | $ 665,207 | $ 809,247 |
Statutory Net Income and Surp63
Statutory Net Income and Surplus and Dividend Restrictions (Details) - USD ($) $ in Millions | Dec. 22, 2015 | Jun. 29, 2015 | Dec. 19, 2014 | Jun. 27, 2014 | Dec. 16, 2013 | Jun. 26, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statutory Net Income And Surplus And Dividend Restrictions [Abstract] | |||||||||
Statutory net income | $ 340 | $ 393 | $ 406 | ||||||
Statutory surplus balance | 482 | $ 606 | |||||||
Statutory dividend | $ 48 | ||||||||
Distribution to parent | $ 180 | $ 270 | $ 75 | $ 267 | $ 100 | $ 184 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense (benefit): | |||
U.S. federal | $ 76,175 | $ (8,499) | $ 36,759 |
State and local | 0 | 0 | 0 |
Total | 76,175 | (8,499) | 36,759 |
Deferred tax expense (benefit): | |||
U.S. federal | (84,460) | 17,103 | 295,613 |
State and local | 0 | 0 | 0 |
Total | (84,460) | 17,103 | 295,613 |
Total income tax expense (benefit) | (8,285) | 8,604 | 332,372 |
Total income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income (loss) | (20,708) | 7,407 | (41,149) |
Additional paid-in capital | 0 | 0 | 4,354 |
Total income tax expense (benefit) | $ (28,993) | $ 16,011 | $ 295,577 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (59,000,000) | ||
Federal Statutory Income Tax Rate, Percent | 35.00% | ||
Income (Loss) from Continuing Operations Before Income Taxes, Domestic | $ 165,000,000 | $ 259,000,000 | $ 1,180,000,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 0 | 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Expected federal income tax expense (benefit) | $ 57,727 | $ 90,780 | $ 413,162 |
Non taxable investment income | (56,614) | (69,122) | (69,665) |
Tax credits | (9,389) | (13,080) | (10,595) |
Other | (9) | 26 | (529) |
Total income tax expense (benefit) | $ (8,285) | $ 8,604 | $ 332,372 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Insurance reserves | $ 156,639 | $ 267,536 |
Investments | 0 | 13,270 |
Compensation reserves | 0 | 1,760 |
Other | 833 | 0 |
Deferred tax assets | 157,472 | 282,566 |
Deferred tax liabilities | ||
VOBA and deferred policy acquisition cost | 247,825 | 370,548 |
Investments | 4,467 | 0 |
Deferred sales inducements | 158,463 | 232,822 |
Net unrealized gain on securities | 32,414 | 68,819 |
Other | 0 | 1,239 |
Deferred tax liabilities | 443,169 | 673,428 |
Net deferred tax asset (liability) | $ (285,697) | $ (390,863) |
Fair Value of Assets and Liab68
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | $ 2,524,272 | $ 2,800,593 |
Trading account assets | 5,653 | 6,131 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 17 | 17 |
Separate account assets | 39,250,159 | 44,101,699 |
Margin Deposit Assets | (3,800) | 3,000 |
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability) | (3,134,000) | (3,112,000) |
Embedded Derivative Gross Asset | 34,000 | 55,000 |
Embedded Derivative Gross Liability | 3,168,000 | 3,167,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 2,524,272 | 2,800,593 |
Trading account assets | 5,653 | 6,131 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 17 | 17 |
Short-term investments | 158,227 | 57,185 |
Cash equivalents | 225 | 225 |
Other long-term investments | 115,820 | 95,191 |
Reinsurance recoverables | 3,012,653 | 2,996,154 |
Receivables from parent and affiliates | 37,340 | 41,068 |
Subtotal excluding separate account assets | 5,854,207 | 5,996,564 |
Separate account assets | 39,250,159 | 44,101,699 |
Total assets | 45,104,366 | 50,098,263 |
Future policy benefits | 3,134,077 | 3,112,411 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 3,134,077 | 3,112,411 |
Assets, Netting | (21,508) | (24,288) |
Liabilities, Netting | (25,277) | (21,249) |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Netting | (21,508) | (24,288) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Netting | (25,277) | (21,249) |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Trading account assets | 5,653 | 6,131 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 0 | 0 |
Short-term investments | 157,257 | 57,185 |
Cash equivalents | 0 | 0 |
Other long-term investments | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 162,910 | 63,316 |
Separate account assets | 0 | 0 |
Total assets | 162,910 | 63,316 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 2,350,471 | 2,643,999 |
Trading account assets | 0 | 0 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 17 | 17 |
Short-term investments | 520 | 0 |
Cash equivalents | 0 | 0 |
Other long-term investments | 135,209 | 118,846 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 29,676 | 18,748 |
Subtotal excluding separate account assets | 2,515,893 | 2,781,610 |
Separate account assets | 39,250,159 | 44,101,699 |
Total assets | 41,766,052 | 46,883,309 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 25,277 | 21,249 |
Total liabilities | 25,277 | 21,249 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 173,801 | 156,594 |
Trading account assets | 0 | 0 |
Equity securities, available-for-sale, at fair value (cost, 2015: $14; 2014: $14) | 0 | 0 |
Short-term investments | 450 | 0 |
Cash equivalents | 225 | 225 |
Other long-term investments | 2,119 | 633 |
Reinsurance recoverables | 3,012,653 | 2,996,154 |
Receivables from parent and affiliates | 7,664 | 22,320 |
Subtotal excluding separate account assets | 3,196,912 | 3,175,926 |
Separate account assets | 0 | 0 |
Total assets | 3,196,912 | 3,175,926 |
Future policy benefits | 3,134,077 | 3,112,411 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 3,134,077 | 3,112,411 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 12,154 | 6,336 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 12,154 | 6,336 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Obligations of U.S. states and their political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 20,212 | 70,789 |
Obligations of U.S. states and their political subdivisions | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Obligations of U.S. states and their political subdivisions | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 20,212 | 70,789 |
Obligations of U.S. states and their political subdivisions | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Foreign government bonds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 49,283 | 37,355 |
Foreign government bonds | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Foreign government bonds | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 49,283 | 37,355 |
Foreign government bonds | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other U.S. public corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 949,109 | 1,089,118 |
All other U.S. public corporate securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other U.S. public corporate securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 934,109 | 1,072,258 |
All other U.S. public corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 15,000 | 16,860 |
All other U.S. private corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 631,075 | 658,657 |
All other U.S. private corporate securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other U.S. private corporate securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 523,298 | 560,113 |
All other U.S. private corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 107,777 | 98,544 |
All other foreign public corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 136,222 | 123,860 |
All other foreign public corporate securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other foreign public corporate securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 136,222 | 123,860 |
All other foreign public corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other foreign private corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 225,349 | 230,049 |
All other foreign private corporate securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
All other foreign private corporate securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 220,818 | 229,383 |
All other foreign private corporate securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 4,531 | 666 |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 151,290 | 149,011 |
Asset-backed securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Asset-backed securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 104,797 | 108,487 |
Asset-backed securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 46,493 | 40,524 |
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 215,740 | 302,185 |
Commercial mortgage-backed securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 215,740 | 302,185 |
Commercial mortgage-backed securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 133,838 | 133,233 |
Residential mortgage-backed securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Residential mortgage-backed securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 133,838 | 133,233 |
Residential mortgage-backed securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | 0 | 0 |
Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 5,653 | 6,131 |
Equity securities | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 5,653 | 6,131 |
Equity securities | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Equity securities | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 0 | $ 0 |
Fair Value of Assets and Liab69
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Separate Account assets transferred from Level 1 to Level 2 | $ 0 | $ 963,000,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investments | 115,820,000 | 95,191,000 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investments | 2,119,000 | 633,000 |
Internal | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term investments | $ 1,565,000 | $ 0 |
Fair Value of Assets and Liab70
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 225 | $ 225 |
Other long-term investments | 115,820 | 95,191 |
Reinsurance recoverables | 3,012,653 | 2,996,154 |
Receivables from parent and affiliates | 37,340 | 41,068 |
Total assets | 45,104,366 | 50,098,263 |
Future policy benefits | 3,134,077 | 3,112,411 |
Total liabilities | 3,134,077 | 3,112,411 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 450 | |
Cash equivalents | 225 | 225 |
Other long-term investments | 2,119 | 633 |
Reinsurance recoverables | 3,012,653 | 2,996,154 |
Receivables from parent and affiliates | 7,664 | 22,320 |
Total assets | 3,196,912 | 3,175,926 |
Future policy benefits | 3,134,077 | 3,112,411 |
Total liabilities | 3,134,077 | 3,112,411 |
Level 3 | Internal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 450 | |
Cash equivalents | 225 | 225 |
Other long-term investments | 1,565 | 0 |
Reinsurance recoverables | 3,012,653 | 2,996,154 |
Receivables from parent and affiliates | 0 | 0 |
Total assets | 3,126,188 | 3,095,588 |
Future policy benefits | 3,134,077 | 3,112,411 |
Total liabilities | 3,134,077 | 3,112,411 |
Level 3 | External | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Cash equivalents | 0 | 0 |
Other long-term investments | 554 | 633 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 7,664 | 22,320 |
Total assets | 70,724 | 80,338 |
Future policy benefits | 0 | 0 |
Total liabilities | 0 | 0 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 127,308 | 116,070 |
Equity securities | Level 3 | Internal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 111,295 | 99,209 |
Equity securities | Level 3 | External | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 16,013 | 16,861 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 46,493 | 40,524 |
Asset-backed securities | Level 3 | Internal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | 0 | 0 |
Asset-backed securities | Level 3 | External | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Fixed Maturities | $ 46,493 | $ 40,524 |
Fair Value of Assets and Liab71
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Quantiative Information [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | $ 2,524,272 | $ 2,800,593 |
Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Reinsurance recoverables | $ 3,012,653 | $ 2,996,154 |
Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 3.71% | 3.55% |
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.06% | 0.00% |
Utilization rate | 63.00% | 63.00% |
Withdrawal rate | 74.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 17.00% | 17.00% |
Minimum | Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 17.95% | 11.75% |
Lapse rate | 14.00% | 14.00% |
NPR spread | 1.76% | 1.30% |
Utilization rate | 95.00% | 95.00% |
Withdrawal rate | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 28.00% | 28.00% |
Maximum | Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Weighted Average | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 4.43% | 3.96% |
Equity securities | Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2015: $2,433,626; 2014: $2,609,253) | $ 111,295 | $ 99,209 |
Future Policy Benefits | Level 3 | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 3,134,077 | $ 3,112,411 |
Fair Value of Assets and Liab72
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Included in earnings: | |||
Realized investment gains (losses), net | $ 0 | ||
Cash Equivalents | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 225 | $ 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Net investment income | 0 | 0 | |
Purchases | 0 | 400 | |
Sales | 0 | (175) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 225 | 225 | $ 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | |
Other Long-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 633 | 486 | 1,054 |
Included in earnings: | |||
Realized investment gains (losses), net | 1,405 | 0 | (739) |
Asset management fees and other income | (17) | (14) | 60 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 22 | 0 | 0 |
Purchases | 179 | 166 | 111 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (103) | (5) | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Other | 0 | ||
Fair Value, end of period | 2,119 | 633 | 486 |
Included in earnings: | |||
Realized investment gains (losses), net | 1,405 | 0 | 0 |
Asset management fees and other income | (17) | (14) | 51 |
Reinsurance Recoverables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 2,996,154 | 748,005 | 1,732,094 |
Included in earnings: | |||
Realized investment gains (losses), net | (212,035) | 2,013,931 | (1,220,073) |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 228,534 | 234,218 | 235,984 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Other | 0 | ||
Fair Value, end of period | 3,012,653 | 2,996,154 | 748,005 |
Included in earnings: | |||
Realized investment gains (losses), net | (117,840) | 2,040,048 | (1,166,676) |
Asset management fees and other income | 0 | 0 | 0 |
Receivables from Parent and Affiliates | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 22,320 | 6,347 | 1,995 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (264) | (420) | 99 |
Net investment income | 1 | 0 | 0 |
Purchases | 0 | 19,351 | 6,250 |
Sales | 0 | 0 | (2,996) |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 6,941 | 1,985 | 0 |
Transfers out of Level 3 | (21,334) | (4,943) | (1,997) |
Other | 2,996 | ||
Fair Value, end of period | 7,664 | 22,320 | 6,347 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Future Policy Benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (3,112,411) | (778,226) | (1,793,137) |
Included in earnings: | |||
Realized investment gains (losses), net | 217,101 | (2,088,505) | 1,262,310 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | (238,767) | (245,680) | (247,399) |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Other | 0 | ||
Fair Value, end of period | (3,134,077) | (3,112,411) | (778,226) |
Included in earnings: | |||
Realized investment gains (losses), net | 119,609 | (2,115,680) | 1,207,600 |
Asset management fees and other income | 0 | 0 | 0 |
U.S. Corporate Public Securities | Fixed Maturities Available-For-Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 16,860 | 2,065 | 3,292 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (23) | (42) | (551) |
Net investment income | 9 | 37 | 41 |
Purchases | 0 | 14,999 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (119) | (199) | (1,171) |
Transfers into Level 3 | 0 | 0 | 4,976 |
Transfers out of Level 3 | (1,727) | 0 | (4,522) |
Other | 0 | ||
Fair Value, end of period | 15,000 | 16,860 | 2,065 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | 0 |
U.S. Corporate Private Securities | Fixed Maturities Available-For-Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 98,544 | 93,841 | 91,088 |
Included in earnings: | |||
Realized investment gains (losses), net | (16) | 1,423 | 48 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (2,992) | (763) | (3,490) |
Net investment income | 5,264 | 4,953 | 4,658 |
Purchases | 6,233 | 5,712 | 4,817 |
Sales | (1,548) | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (1,863) | (6,622) | (3,280) |
Transfers into Level 3 | 4,155 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Other | 0 | ||
Fair Value, end of period | 107,777 | 98,544 | 93,841 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | 0 |
Foreign Corporate Private Securities | Fixed Maturities Available-For-Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 666 | 890 | 1,175 |
Included in earnings: | |||
Realized investment gains (losses), net | 62 | 169 | 1 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (24) | (41) | (138) |
Net investment income | 1 | 34 | 30 |
Purchases | 0 | 9 | 0 |
Sales | 0 | (202) | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (678) | (193) | (178) |
Transfers into Level 3 | 4,504 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Other | 0 | ||
Fair Value, end of period | 4,531 | 666 | 890 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Asset-Backed Securities | Fixed Maturities Available-For-Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 40,524 | 63,789 | 69,298 |
Included in earnings: | |||
Realized investment gains (losses), net | 9 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (170) | 196 | (470) |
Net investment income | 49 | 120 | 454 |
Purchases | 20,053 | 14,933 | 40,868 |
Sales | (15,878) | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (3,704) | (40,337) | (13,924) |
Transfers into Level 3 | 34,921 | 28,152 | 0 |
Transfers out of Level 3 | (29,311) | (26,329) | (29,441) |
Other | (2,996) | ||
Fair Value, end of period | 46,493 | 40,524 | 63,789 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Commercial Mortgage-Backed Securities | Fixed Maturities Available-For-Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | (83) | 18 |
Net investment income | 0 | 0 | 0 |
Purchases | 1,565 | 52,518 | 17,169 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | (1,565) | (52,435) | (17,187) |
Other | 0 | ||
Fair Value, end of period | 0 | 0 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Asset management fees and other income | 0 | 0 | 0 |
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | ||
Included in earnings: | |||
Realized investment gains (losses), net | 0 | ||
Asset management fees and other income | 0 | ||
Included in other comprehensive income (loss) | 0 | ||
Net investment income | 0 | ||
Purchases | 450 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Fair Value, end of period | 450 | 0 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | ||
Asset management fees and other income | 0 | ||
Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 192 | 0 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Net investment income | 0 | 0 | |
Purchases | 0 | 192 | |
Sales | (192) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | ||
Fair Value, end of period | 0 | 192 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 0 | 0 | |
Equity Securities | Trading Account Assets - Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | $ 0 | 313 | 207 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | 15 | 106 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Net investment income | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (328) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | ||
Fair Value, end of period | 0 | 313 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Asset management fees and other income | $ 15 | $ 107 |
Fair Value of Assets and Liab73
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Policy loans | $ 13,054 | $ 13,355 |
Other long-term investments | 182,157 | 162,783 |
Accrued investment income | 22,615 | 25,008 |
Receivables from parent and affiliates | 212,696 | 60,490 |
Liabilities: | ||
Cash collateral for loaned securities | 10,568 | 5,285 |
Short-term debt | 1,000 | 54,354 |
Payables to parent and affiliates | 275,737 | 71,675 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 451,142 | 449,936 |
Policy loans | 13,054 | 13,355 |
Other long-term investments | 3,258 | 2,639 |
Cash and cash equivalents | 311 | 369 |
Accrued investment income | 22,615 | 25,008 |
Receivables from parent and affiliates | 14,868 | 10,367 |
Other assets | 1,085 | 1,009 |
Total assets | 506,333 | 502,683 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 102,438 | 91,217 |
Cash collateral for loaned securities | 10,568 | 5,285 |
Short-term debt | 1,000 | 54,354 |
Payables to parent and affiliates | 25,678 | 37,415 |
Other liabilities | 83,464 | 89,956 |
Separate account liabilities - investment contracts | 293 | 487 |
Total liabilities | 223,441 | 278,714 |
Fair Value | Level 1 | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Other long-term investments | 0 | 0 |
Cash and cash equivalents | 311 | 369 |
Accrued investment income | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 311 | 369 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities - investment contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Assets: | ||
Commercial mortgage and other loans | 2,793 | 2,779 |
Policy loans | 0 | 0 |
Other long-term investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 22,615 | 25,008 |
Receivables from parent and affiliates | 14,868 | 10,367 |
Other assets | 1,085 | 1,009 |
Total assets | 41,361 | 39,163 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 10,568 | 5,285 |
Short-term debt | 1,000 | 54,354 |
Payables to parent and affiliates | 25,678 | 37,415 |
Other liabilities | 83,464 | 89,956 |
Separate account liabilities - investment contracts | 293 | 487 |
Total liabilities | 121,003 | 187,497 |
Fair Value | Level 3 | ||
Assets: | ||
Commercial mortgage and other loans | 448,349 | 447,157 |
Policy loans | 13,054 | 13,355 |
Other long-term investments | 3,258 | 2,639 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 464,661 | 463,151 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 102,438 | 91,217 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities - investment contracts | 0 | 0 |
Total liabilities | 102,438 | 91,217 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 438,172 | 422,563 |
Policy loans | 13,054 | 13,355 |
Other long-term investments | 3,050 | 2,238 |
Cash and cash equivalents | 311 | 369 |
Accrued investment income | 22,615 | 25,008 |
Receivables from parent and affiliates | 14,868 | 10,367 |
Other assets | 1,085 | 1,009 |
Total assets | 493,155 | 474,909 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 103,003 | 92,663 |
Cash collateral for loaned securities | 10,568 | 5,285 |
Short-term debt | 1,000 | 54,354 |
Payables to parent and affiliates | 25,678 | 37,415 |
Other liabilities | 83,464 | 89,956 |
Separate account liabilities - investment contracts | 293 | 487 |
Total liabilities | $ 224,006 | $ 280,160 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1 | |
Maximum length of time hedged in cash flow hedge (in years) | 18 years | |
Credit Derivative, Maximum Exposure, Undiscounted | $ 1 | |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) (less than) | $ (1) |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional | $ 20,673,388 | $ 9,207,601 |
Gross Fair Value Assets | 136,775 | 118,846 |
Gross Fair Value Liabilities | (25,277) | (21,249) |
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability) | (3,134,000) | (3,112,000) |
Future Policy Benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability) | (3,134,000) | (3,112,000) |
Reinsurance Recoverables | Pruco Re | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability) | 3,013,000 | 2,996,000 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 115,358 | 83,412 |
Gross Fair Value Assets | 15,910 | 5,555 |
Gross Fair Value Liabilities | (206) | (654) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 20,558,030 | 9,124,189 |
Gross Fair Value Assets | 120,865 | 113,291 |
Gross Fair Value Liabilities | (25,071) | (20,595) |
Interest Rate Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,872,750 | 1,902,750 |
Gross Fair Value Assets | 84,817 | 92,507 |
Gross Fair Value Liabilities | (13,452) | (18,480) |
Interest Rate Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 100,000 | 100,000 |
Gross Fair Value Assets | 9,431 | 10,736 |
Gross Fair Value Liabilities | 0 | 0 |
Foreign Currency Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 2,752 | 0 |
Gross Fair Value Assets | 23 | 0 |
Gross Fair Value Liabilities | 0 | 0 |
Foreign Currency Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 115,358 | 83,412 |
Gross Fair Value Assets | 15,910 | 5,555 |
Gross Fair Value Liabilities | (206) | (654) |
Foreign Currency Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 77,729 | 57,011 |
Gross Fair Value Assets | 11,220 | 4,363 |
Gross Fair Value Liabilities | 0 | (5) |
Credit Default Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 0 | 1,200 |
Gross Fair Value Assets | 0 | 0 |
Gross Fair Value Liabilities | 0 | (43) |
Total Return Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 217,999 | 220,986 |
Gross Fair Value Assets | 320 | 1,937 |
Gross Fair Value Liabilities | (3,626) | 0 |
Equity Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 18,286,800 | 6,842,242 |
Gross Fair Value Assets | 15,054 | 3,748 |
Gross Fair Value Liabilities | $ (7,993) | $ (2,067) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting of Financial Assets: | ||
Gross Amounts of Recognized Financial Instruments | $ 136,775 | $ 118,846 |
Offsetting of Financial Liabilities: | ||
Gross Amounts of Recognized Financial Instruments | 25,277 | 21,249 |
Counterparty | ||
Offsetting of Financial Assets: | ||
Gross Amounts of Recognized Financial Instruments | 135,210 | 118,846 |
Gross Amounts Offset in the Statement of Financial Position | (21,508) | (24,288) |
Net Amounts Presented in the Statement of Financial Position | 113,702 | 94,558 |
Financial Instruments / Collateral | (101,288) | (82,602) |
Net Amount | 12,414 | 11,956 |
Offsetting of Financial Liabilities: | ||
Gross Amounts of Recognized Financial Instruments | 25,277 | 21,249 |
Gross Amounts Offset in the Statement of Financial Position | (25,277) | (21,249) |
Net Amounts Presented in the Statement of Financial Position | 0 | 0 |
Financial Instruments / Collateral | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 1,381 | $ (8,113) | $ (194,055) |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 608 | 14 | (89) |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,318 | 277 | 17 |
Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10,008 | 8,492 | (585) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 608 | 14 | (89) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,116 | 134 | (7) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10,008 | 8,492 | (585) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 608 | 14 | (89) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,116 | 134 | (7) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10,008 | 8,492 | (585) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,381 | (8,113) | (194,055) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 202 | 143 | 24 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 20,536 | 123,327 | (116,025) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 115 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8,337 | 5,934 | (204) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 202 | 143 | 24 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3) | (14) | (103) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,233) | (23,811) | (79,498) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (24,371) | (113,549) | 1,775 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 4,839 | $ (3,653) | $ (3,068) |
Net deferred gains (losses) on cash flow hedges for the period | 12,078 | 8,640 | (680) |
Amount reclassified into current period earnings | (2,070) | (148) | 95 |
Ending Balance | $ 14,847 | $ 4,839 | $ (3,653) |
Commitments, Contingent Liabi79
Commitments, Contingent Liabilities and Litigation and Regulatory Matters (Narrative) (Details) | 1 Months Ended | ||
Jan. 31, 2012state | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Commitments to fund commercial loans | $ 5,000,000 | $ 1,000,000 | |
Commitments to fund investments | 36,000,000 | $ 22,000,000 | |
Number of States Needed for Agreement to Become Effective | state | 20 | ||
Minimum | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Estimate of possible losses in excess of accruals | 0 | ||
Maximum | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Estimate of possible losses in excess of accruals | $ 3,000,000 |
Related Party Transactions (Exp
Related Party Transactions (Expense Charges and Allocations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Stock or Unit Option Plan Expense (less than in 2015) | $ 1 | $ 1 | $ 2 |
Pension Expense | $ 1 | 1 | 3 |
Defined Contribution Plan Employer Matching Contribution Percent | 4.00% | ||
Defined Contribution Plan, Cost Recognized | $ 1 | $ 1 | $ 1 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Asset Administration Fee Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
AST Revenue Sharing Income | $ 173 | $ 221 | $ 227 |
Related Party Transactions (A82
Related Party Transactions (Affiliated Investment Management Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Pim Management Expenses | $ 5 | $ 6 | $ 7 |
Related Party Transactions (Cos
Related Party Transactions (Cost Allocation Agreements with Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Related Party Transaction, Written Termination Notice Period | 30 days | ||
Allocated Lease Expense | $ 4 | $ 4 | $ 10 |
Allocated Sub-Lease Rental Income (less than for 2015) | 1 | 1 | 4 |
Commissions and Fees Paid to PAD | $ 143 | $ 177 | $ 172 |
Related Party Transactions (Fut
Related Party Transactions (Future Minimum Lease Payments Related Party Table) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future Minimum Lease Payments | |
Lease Payments - 2016 | $ 3,279 |
Lease Payments - 2017 | 3,279 |
Lease Payments - 2018 | 3,279 |
Lease Payments - 2019 | 3,006 |
Lease Payments - 2020 | 0 |
Lease Payments - 2021 and thereafter | 0 |
Lease Payments - Total | 12,843 |
Sub-Lease Income - 2016 | 0 |
Sub-Lease Income - 2017 | 0 |
Sub-Lease Income - 2018 | 0 |
Sub-Lease Income - 2019 | 0 |
Sub-Lease Income - 2020 | 0 |
Sub-Lease Income - 2021 and thereafter | 0 |
Sub-Lease Income - Total | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000,000 | ||
Short-term Debt with Pru Funding | 1,000,000 | $ 54,000,000 | |
Interest Expense, Short-term Borrowings (less than) | 1,000,000 | 1,000,000 | $ 1,000,000 |
Prudential Financial Debt, Borrowing Amount | $ 0 | 0 | |
Prudential Financial Debt, Interest Rate | 4.49% | ||
Prudential Financial Debt, Repayment Amount | $ 200,000,000 | ||
Long-term debt interest expense | $ 1,000,000 | $ 9,000,000 | $ 17,000,000 |
Related Party Transactions (Rei
Related Party Transactions (Reinsurance Agreements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Total Fees Ceded to Pruco Reinsurance | $ 269 | $ 274 | $ 275 |
Total Fees Ceded to Prudential Insurance | 1 | 1 | 1 |
Affiliated Reinsurance Payables | 250 | 25 | |
Affiliated Reinsurance Recoverables | 3,088 | 2,997 | |
Pruco Re Realized Gains Losses | $ (241) | $ 1,975 | $ (1,260) |
Related Party Transactions (A87
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ||
Fixed maturity asset transfer amortized cost | $ 36 | $ 90 |
Fixed maturity asset transfer fair value | 44 | 103 |
Realized gain on fixed maturity asset transfer | 8 | 8 |
Commercial mortgage loans asset transfer amortized cost | 6 | 6 |
Commercial mortgage loans asset transfer fair value | 6 | 6 |
Fixed maturity asset purchase amortized cost | 27 | |
Fixed maturity asset purchase fair value | $ 30 | |
Realized gain on commercial mortgage loan asset transfer | $ 1 |
Contract Withdrawal Provisions
Contract Withdrawal Provisions (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Surrender Charges [Line Items] | |
Surrender charge period in years (less than) | 10 years |
Maximum | |
Surrender Charges [Line Items] | |
Annuities surrender charge percentage | 9.00% |
Minimum | |
Surrender Charges [Line Items] | |
Annuities surrender charge percentage | 1.00% |
Quarterly Results of Operatio89
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 219,952 | $ 268,802 | $ 279,135 | $ 305,682 | $ 311,187 | $ 308,006 | $ 309,786 | $ 311,249 | $ 1,073,571 | $ 1,240,228 | $ 1,110,282 |
Total benefits and expenses | 65,421 | 388,581 | 122,886 | 331,751 | 324,387 | 197,204 | 242,370 | 216,896 | 908,639 | 980,857 | (70,182) |
Income (loss) from operations before income taxes | 154,531 | (119,779) | 156,249 | (26,069) | (13,200) | 110,802 | 67,416 | 94,353 | 164,932 | 259,371 | 1,180,464 |
Net income (loss) | $ 167,431 | $ (104,826) | $ 131,914 | $ (21,302) | $ 19,801 | $ 96,037 | $ 57,431 | $ 77,498 | $ 173,217 | $ 250,767 | $ 848,092 |
Quarterly Results of Operatio90
Quarterly Results of Operations (Unaudited) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Total benefits and expenses | $ 65,421 | $ 388,581 | $ 122,886 | $ 331,751 | $ 324,387 | $ 197,204 | $ 242,370 | $ 216,896 | $ 908,639 | $ 980,857 | $ (70,182) |
Out of period adjustment | 5,000 | ||||||||||
Scenario, Adjustment | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Total benefits and expenses | $ 9,000 | $ 5,000 |