Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Mar. 08, 2018 | |
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, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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, 2017 | Dec. 31, 2016 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2017: $10,145,266; 2016: $9,818,298) | $ 10,110,786 | $ 9,362,763 |
Trading account assets, at fair value | 181,717 | 149,871 |
Equity securities, available-for-sale, at fair value (cost, 2017: $14; 2016: $365) | 18 | 18 |
Commercial Mortgage and other loans | 1,387,012 | 1,231,893 |
Policy loans | 12,558 | 12,719 |
Short-term investments | 711,071 | 947,150 |
Other long-term investments | 335,811 | 551,931 |
Total investments | 12,738,973 | 12,256,345 |
Cash and cash equivalents | 1,639,939 | 1,848,039 |
Deferred policy acquisition costs | 4,596,565 | 4,344,361 |
Accrued investment income | 88,331 | 86,004 |
Reinsurance recoverables | 563,428 | 588,608 |
Income taxes | 1,116,735 | 1,978,607 |
Value of business acquired | 35,109 | 30,287 |
Deferred sales inducements | 1,020,786 | 978,823 |
Receivables from parent and affiliates | 49,351 | 111,703 |
Other assets | 121,086 | 169,649 |
Separate account assets | 37,990,547 | 37,429,739 |
TOTAL ASSETS | 59,960,850 | 59,822,165 |
LIABILITIES | ||
Future policy benefits | 9,132,569 | 8,686,196 |
Policyholders’ account balances | 4,846,152 | 4,736,889 |
Payables to parent and affiliates | 36,026 | 91,432 |
Cash collateral for loaned securities | 17,383 | 23,350 |
Long-term debt | 928,165 | 971,899 |
Short-term debt | 43,734 | 28,101 |
Reinsurance payables | 262,588 | 275,822 |
Other liabilities | 422,636 | 489,007 |
Separate account liabilities | 37,990,547 | 37,429,739 |
Total liabilities | 53,679,800 | 52,732,435 |
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 | 7,145,436 | 8,095,436 |
Retained earnings/(accumulated deficit) | (776,762) | (693,258) |
Accumulated other comprehensive income (loss) | (90,124) | (314,948) |
Total equity | 6,281,050 | 7,089,730 |
TOTAL LIABILITIES AND EQUITY | $ 59,960,850 | $ 59,822,165 |
Statements of Financial Positi3
Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 10,145,266 | $ 9,818,298 |
Equity securities, available-for-sale, cost | $ 14 | $ 365 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||
Premiums | $ 63,573 | $ 896,839 | $ 9,787 |
Policy charges and fee income | 2,209,579 | 1,755,224 | 740,823 |
Net investment income | 422,809 | 338,370 | 139,430 |
Asset administration fees and other income | 413,375 | 299,384 | 177,479 |
Realized investment gains (losses), net: | |||
Other-than-temporary impairments on fixed maturity securities | (8,576) | (7,853) | (44) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | (546) | 1,354 | 24 |
Other realized investment gains (losses), net | (796,278) | (3,436,261) | 6,072 |
Total realized investment gains (losses), net | (805,400) | (3,442,760) | 6,052 |
Total revenues | 2,303,936 | (152,943) | 1,073,571 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | 114,068 | 604,057 | 60,461 |
Interest credited to policyholders’ account balances | 30,280 | 68,889 | 225,555 |
Amortization of deferred policy acquisition costs | (13,946) | (179,816) | 309,152 |
Commission expense | 1,135,000 | 919,859 | 215,749 |
General, administrative and other expenses | (79,061) | 204,649 | 97,722 |
Total benefits and expenses | 1,186,341 | 1,617,638 | 908,639 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 1,117,595 | (1,770,581) | 164,932 |
Total income tax expense (benefit) | 1,201,099 | (680,493) | (8,285) |
NET INCOME (LOSS) | (83,504) | (1,090,088) | 173,217 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | 109 | (20) | (54) |
Net unrealized investment gains (losses): | |||
Unrealized investment gains (losses) for the period | 320,182 | (469,356) | (54,279) |
Reclassification adjustment for gains included in net income | 3,177 | (86,184) | (4,831) |
Net unrealized investment gains (losses) | 323,359 | (555,540) | (59,110) |
Other comprehensive income (loss), before tax: | 323,468 | (555,560) | (59,164) |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | |||
Foreign currency translation adjustments | 38 | (7) | (19) |
Net unrealized investment gains (losses) | 98,606 | (194,439) | (20,689) |
Total | 98,644 | (194,446) | (20,708) |
Other comprehensive income (loss), net of taxes | 224,824 | (361,114) | (38,456) |
Comprehensive income (loss) | $ 141,320 | $ (1,451,202) | $ 134,761 |
Statements of Equity
Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total Equity |
Beginning Balance at Dec. 31, 2014 | $ 2,500 | $ 901,422 | $ 673,613 | $ 84,622 | $ 1,662,157 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | $ 0 | 0 | 0 | |||
Return of capital | 0 | 0 | ||||
Dividend to parent | (450,000) | (450,000) | ||||
Assets purchased/transferred from/to affiliates | 0 | 0 | ||||
Comprehensive income: | ||||||
Net income (loss) | 173,217 | 173,217 | 173,217 | |||
Other comprehensive income (loss), net of tax | (38,456) | (38,456) | (38,456) | |||
Total comprehensive income (loss) | 134,761 | |||||
Ending Balance at Dec. 31, 2015 | 2,500 | 901,422 | 396,830 | 46,166 | 1,346,918 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 860,573 | 8,421,955 | 8,421,955 | |||
Return of capital | (1,140,000) | (1,140,000) | ||||
Dividend to parent | 0 | 0 | ||||
Assets purchased/transferred from/to affiliates | (72,179) | (72,179) | ||||
Impact of Pruco Re and PALAC merger | (15,762) | (15,762) | ||||
Comprehensive income: | ||||||
Net income (loss) | (1,090,088) | (1,090,088) | (1,090,088) | |||
Other comprehensive income (loss), net of tax | (361,114) | (361,114) | (361,114) | |||
Total comprehensive income (loss) | (1,451,202) | |||||
Ending Balance at Dec. 31, 2016 | 2,500 | 8,095,436 | (693,258) | (314,948) | 7,089,730 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | 0 | 0 | |||
Return of capital | (950,000) | (950,000) | ||||
Dividend to parent | 0 | 0 | ||||
Assets purchased/transferred from/to affiliates | 0 | 0 | ||||
Comprehensive income: | ||||||
Net income (loss) | (83,504) | (83,504) | (83,504) | |||
Other comprehensive income (loss), net of tax | $ 224,824 | 224,824 | 224,824 | |||
Total comprehensive income (loss) | 141,320 | |||||
Ending Balance at Dec. 31, 2017 | $ 2,500 | $ 7,145,436 | $ (776,762) | $ (90,124) | $ 6,281,050 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | $ (83,504) | $ (1,090,088) | $ 173,217 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Policy charges and fee income | (766) | (245) | 907 |
Realized investment (gains) losses, net | 805,400 | 3,442,760 | (6,052) |
Depreciation and amortization | 32,812 | 10,737 | 37,530 |
Interest credited to policyholders’ account balances | 30,280 | 68,889 | 225,555 |
Change in: | |||
Future policy benefits | 982,792 | 759,604 | 238,052 |
Accrued investment income | (2,327) | (63,389) | 2,393 |
Net receivables from/payables to parent and affiliates | 4,165 | (55,984) | 61,252 |
Deferred sales inducements | (1,551) | (1,805) | 38,380 |
Deferred policy acquisition costs | (291,532) | (449,496) | 381,480 |
Income taxes | 763,227 | (712,423) | (3,426) |
Reinsurance recoverables, net | 2,708 | 199,107 | (270,868) |
Bonus reserve | 0 | 0 | (38,768) |
Derivatives, net | (1,364,754) | 2,605,415 | 21,581 |
Deferred (gain)/loss on reinsurance | 4,564 | 305,464 | (118,028) |
Other, net | 87,036 | (54,819) | (3,508) |
Cash flows from (used in) operating activities | 968,550 | 4,963,727 | 739,697 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 1,145,369 | 4,072,242 | 486,648 |
Commercial mortgage and other loans | 198,584 | 122,086 | 89,344 |
Trading account assets | 5,045 | 7,489 | 3,765 |
Policy loans | 1,276 | 1,833 | 1,257 |
Other long-term investments | 72,667 | 9,587 | 3,764 |
Short-term investments | 1,949,758 | 1,799,219 | 2,318,219 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (1,528,065) | (5,535,732) | (336,954) |
Equity securities, available-for-sale | 0 | (351) | 0 |
Commercial mortgage and other loans | (348,520) | (353,692) | (106,185) |
Trading account assets | (19,012) | (7,810) | (3,681) |
Policy loans | (366) | (442) | (644) |
Other long-term investments | (7,668) | (111,838) | (3,994) |
Short-term investments | (1,713,877) | (2,561,044) | (2,419,261) |
Notes receivable from parent and affiliates, net | 2,717 | (4,923) | 3,110 |
Derivatives, net | 4,948 | (6,305) | (6,528) |
Other, net | 254 | (2,911) | 1,070 |
Cash flows from (used in) investing activities | (236,890) | (2,572,592) | 29,930 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Cash collateral for loaned securities | (5,967) | 12,782 | 5,283 |
Proceeds from the issuance of debt (maturities longer than 90 days) | 0 | 125,000 | 0 |
Repayments of debt (maturities longer than 90 days) | 0 | (268,000) | 0 |
Net increase/(decrease) in short-term borrowing | (28,101) | (1,000) | (53,354) |
Drafts outstanding | 10,624 | 5,777 | (1,663) |
Distribution to parent | (950,000) | (1,140,000) | (450,000) |
Contributed capital | 0 | 860,573 | 0 |
Policyholders’ account deposits | 2,623,534 | 2,116,567 | 1,295,546 |
Ceded policyholders’ account deposits | (24,191) | (23,890) | (54,027) |
Policyholders’ account withdrawals | (2,589,770) | (2,259,445) | (1,511,470) |
Ceded policyholders' account withdrawals | 24,111 | 28,004 | 0 |
Cash flows from (used in) financing activities | (939,760) | (543,632) | (769,685) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (208,100) | 1,847,503 | (58) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,848,039 | 536 | 594 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 1,639,939 | 1,848,039 | 536 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid, net of refunds | 437,872 | 31,931 | (4,858) |
Interest paid | $ 34,217 | $ 23,392 | $ 68 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
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 a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey corporation. The Company has developed long-term savings and retirement products, which were distributed through its affiliated broker/dealer company, Prudential Annuities Distributors, Inc. (“PAD”). The Company issued variable and fixed 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 stopped actively selling such products between March 2010 and December 2017. 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 ("Pruco Life") and its wholly-owned subsidiary Pruco Life Insurance Company of New Jersey ("PLNJ") (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 living benefit guarantees. However, the Company continues to accept additional customer deposits on certain in force contracts, subject to applicable contract provisions and administrative rules. The Company launched a new fixed indexed annuity in January 2018 and will launch a new deferred income annuity during 2018. 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 based insurance company and its principal insurance regulatory authority is the Arizona Department of Insurance ("AZDOI"). The redomestication also resulted in the Company being domiciled in the same jurisdiction as the then primary reinsurer of the Company’s living benefit guarantees, Pruco Reinsurance, Ltd. (“Pruco Re”), which enabled 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. As of April 1, 2016, the Company no longer reinsures its living benefit guarantees to Pruco Re. As disclosed in Note 1 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company surrendered its New York license effective December 31, 2015, and reinsured the majority of its New York business to an affiliate, The Prudential Insurance Company of America (“Prudential Insurance”). The license surrender relieves the Company of the requirement to hold New York statutory reserves on its business in excess of the statutory reserves required by its domiciliary regulator, the AZDOI. 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 a percentage of the reserves associated with such business, as calculated in accordance with PALAC's New York Regulation 109 Plan approved by the New York Department of Financial Services. Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to its affiliated companies, Pruco Re and Prudential Insurance. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance, under a coinsurance and modified coinsurance agreement. This reinsurance agreement covers new and in force business and excludes business reinsured externally. The product risks related to the reinsured business are being managed in the Company. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within the Company. These series of transactions are collectively referred to as the "Variable Annuities Recapture". The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 3,343 $ 3,084 $ 10,624 $ 17,051 Cash and cash equivalents 106 11 1,024 1,141 Deferred policy acquisition costs 537 0 3,134 3,671 Reinsurance recoverables 3,776 (3,401 ) 320 695 Deferred sales inducements 327 0 500 827 Income tax receivable(2) 0 115 2,441 2,556 TOTAL ASSETS 46,694 (191 ) 18,043 64,546 LIABILITIES AND EQUITY LIABILITIES Policyholders' account balances $ 2,422 $ 0 $ 2,387 $ 4,809 Future policy benefits 4,295 0 6,972 11,267 Short-term and long-term debt(3) 0 0 1,268 1,268 Other liabilities 114 0 630 744 TOTAL LIABILITIES 45,472 0 11,257 56,729 EQUITY Additional paid-in capital(4) 901 0 8,422 9,323 Retained earnings 254 (191 ) (1,600 ) (1,537 ) Accumulated other comprehensive income 64 0 (36 ) 28 TOTAL EQUITY 1,222 (191 ) 6,786 7,817 TOTAL LIABILITIES AND EQUITY 46,694 (191 ) 18,043 64,546 Significant Non-Cash Transactions (1) The increase in total investments includes non-cash activities of $ 3.1 billion for assets received related to the recapture transaction with Pruco Re, $ 7.1 billion for assets received related to the reinsurance transaction with Pruco Life and $ 3.6 billion related to non-cash capital contributions from PAI. (2) Prudential Financial contributed current tax receivables through PAI of $ 1.5 billion to the Company as part of the Variable Annuities Recapture. (3) The Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. (4) The increase in additional paid-in capital ("APIC") includes non-cash capital contributions from PAI of $ 3.6 billion in invested assets, $ 1.5 billion of current tax receivables and $ 2.5 billion funding for the ceding commission for the reinsurance transaction with Pruco Life. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ 832 $ 832 Realized investment gains (losses), net (305 ) (2,561 ) (2,866 ) TOTAL REVENUES (305 ) (1,729 ) (2,034 ) BENEFITS AND EXPENSES Policyholders' benefits 0 522 522 General, administrative and other expenses 0 310 310 TOTAL BENEFITS AND EXPENSES 0 832 832 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (305 ) (2,561 ) (2,866 ) Income tax expense (benefit) (114 ) (961 ) (1,075 ) NET INCOME (LOSS) $ (191 ) $ (1,600 ) $ (1,791 ) As part of the Variable Annuities Recapture, the Company received invested assets of $ 3.1 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016, and unwound the associated reinsurance recoverable of $ 3.4 billion . As a result of the recapture transaction, the Company recognized a loss of $ 0.3 billion immediately. For the Variable Annuities Recapture, the Company received invested assets of $ 7.1 billion as consideration from Pruco Life and established reserves of $ 9.4 billion . In addition, the Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. Also, the Company established deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances, which were equivalent to the ceding commission incurred by the Company. For the reinsurance of the variable annuity base contracts, the Company recognized a benefit of $ 0.3 billion , which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a loss of $ 2.6 billion immediately since the reinsurance contract is accounted for as a free-standing derivative. The Company also received a capital contribution of $ 8.4 billion from PAI. As a result of the Variable Annuities Recapture, Pruco Re no longer had any material active reinsurance with affiliates. On September 30, 2016, Pruco Re was merged with and into the Company. The following table summarizes the asset transfers related to the Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/ (Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 3,084 $ 3,084 $ 0 $ 0 Pruco Life Apr - June 2016 Purchase Fixed Maturities, Trading Account Assets, Commercial Mortgages, Derivatives, JV/LP Investments and Short-Term Investments $ 6,994 $ 6,994 $ 0 $ 0 PAI Apr - June 2016 Contributed Capital Fixed Maturities, Trading Account Assets and Derivatives $ 3,517 $ 3,517 $ 3,517 $ 0 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 DAC and related amortization; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS ASSETS 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 associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. 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 securities 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. 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 is 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 generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consist of commercial mortgage loans and agricultural property 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, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also 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 two categories. 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 loan-to-value ratio less than 100% indicates an 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 debt service coverage ratio greater than 1.0 times indicates an 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 property loan portfolios, 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 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 of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. 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 represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. 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 accounted for using the equity method of accounting, 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, or the fair value option where elected. 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 investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), 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, funds managed similar to regulated money market funds, 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 sales 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 OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the 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 OTTI 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-then-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) 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 OTTI is recognized. When an OTTI of a debt security has occurred, the amount of the OTTI 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 OTTI 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 OTTI 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 OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities 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 OTTI, 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 include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, 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. Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. Deferred policy acquisition costs are related directly to the successful acquisition of new and renewal insurance and annuity business that have been 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 DAC", 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 15 . 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. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company's projections of estimated future gross profits. Adjustments to DAC balances include: (i) annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods, (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period, and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company's estimate of total gross profits to reflect actual fund performance and market conditions. 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. See Note 4 for additional information regarding DAC. Deferred sales inducements represent 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. VOBA represents identifiable intangible assets to which a portion of the purchase price in a business acquisition is attributed under the application of purchase accounting. 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. The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General, administrative, and other expenses.” See Note 5 for additional information regarding VOBA. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13 . Income taxes asset primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year. 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 Statements of Operations. 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 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. See Note 9 for a discussion of factors considered when evaluating the need for a valuation allowance. In December of 2017, SEC staff issued "SAB 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which allows registrants to record provisional amounts during a ‘measurement period’ not to extend beyond one year. Under the relief provided by SAB 118, a company can recognize provisional amounts when it does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the change in tax law. See Note 9 for a discussion of provisional amounts related to the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017"). 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. First, 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 a 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. Other assets consist primarily of accruals for asset administration f |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables set forth information relating to fixed maturities and equity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2017 Amortized Cost or 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 $ 5,059,168 $ 9,109 $ 236,627 $ 4,831,650 $ 0 Obligations of U.S. states and their political subdivisions 102,709 2,089 158 104,640 0 Foreign government bonds 133,859 6,878 432 140,305 0 Public utilities 567,829 31,414 2,058 597,185 0 Redeemable preferred stock 29,504 615 59 30,060 0 All other U.S. public corporate securities 1,473,761 77,379 3,416 1,547,724 0 All other U.S. private corporate securities 938,144 35,327 3,795 969,676 0 All other foreign public corporate securities 194,201 5,663 918 198,946 0 All other foreign private corporate securities 638,785 38,030 3,231 673,584 0 Asset-backed securities(1) 341,277 4,438 128 345,587 (17 ) Commercial mortgage-backed securities 502,695 7,334 4,345 505,684 0 Residential mortgage-backed securities(2) 163,334 2,950 539 165,745 (4 ) Total fixed maturities, available-for-sale $ 10,145,266 $ 221,226 $ 255,706 $ 10,110,786 $ (21 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 0 $ 0 $ 0 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 14 $ 4 $ 0 $ 18 (1) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $12.3 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, 2016 Amortized Cost or 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 $ 4,998,652 $ 2,487 $ 536,114 $ 4,465,025 $ 0 Obligations of U.S. states and their political subdivisions 92,107 566 2,699 89,974 0 Foreign government bonds 64,352 5,404 370 69,386 0 Public utilities 448,349 13,155 10,348 451,156 0 Redeemable preferred stock 29,581 288 633 29,236 0 All other U.S. public corporate securities 1,619,814 73,819 10,153 1,683,480 (771 ) All other U.S. private corporate securities 951,324 27,234 13,810 964,748 (694 ) All other foreign public corporate securities 183,253 5,410 1,022 187,641 0 All other foreign private corporate securities 501,140 5,349 20,450 486,039 0 Asset-backed securities(1) 248,547 3,227 465 251,309 0 Commercial mortgage-backed securities 484,673 6,793 6,753 484,713 0 Residential mortgage-backed securities(2) 196,506 4,063 513 200,056 (5 ) Total fixed maturities, available-for-sale $ 9,818,298 $ 147,795 $ 603,330 $ 9,362,763 $ (1,470 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 351 $ 0 $ 351 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 365 $ 4 $ 351 $ 18 (1) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity and equity securities had been in a continuous unrealized loss position, as of the dates indicated: December 31, 2017 Less than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 13,174 $ 23 $ 4,550,472 $ 236,604 $ 4,563,646 $ 236,627 Obligations of U.S. states and their political subdivisions 6,669 26 13,311 132 19,980 158 Foreign government bonds 37,466 428 143 4 37,609 432 Public utilities 84,260 1,357 22,420 701 106,680 2,058 Redeemable preferred stock 10,522 59 0 0 10,522 59 All other U.S. public corporate securities 206,988 1,034 118,002 2,382 324,990 3,416 All other U.S. private corporate securities 221,753 2,173 83,365 1,622 305,118 3,795 All other foreign public corporate securities 66,004 578 23,186 340 89,190 918 All other foreign private corporate securities 78,200 536 89,675 2,695 167,875 3,231 Asset-backed securities 30,234 128 0 0 30,234 128 Commercial mortgage-backed securities 113,423 1,225 129,458 3,120 242,881 4,345 Residential mortgage-backed securities 26,916 166 24,833 373 51,749 539 Total fixed maturities, available-for-sale $ 895,609 $ 7,733 $ 5,054,865 $ 247,973 $ 5,950,474 $ 255,706 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 December 31, 2016 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 $ 4,254,477 $ 536,114 $ 0 $ 0 $ 4,254,477 $ 536,114 Obligations of U.S. states and their political subdivisions 73,885 2,699 0 0 73,885 2,699 Foreign government bonds 32,107 370 0 0 32,107 370 Public utilities 240,041 8,019 17,097 2,329 257,138 10,348 Redeemable preferred stock 12,948 633 0 0 12,948 633 All other U.S. public corporate securities 530,904 8,798 12,981 1,355 543,885 10,153 All other U.S. private corporate securities 453,976 13,632 12,304 178 466,280 13,810 All other foreign public corporate securities 89,962 1,016 9,994 6 99,956 1,022 All other foreign private corporate securities 247,111 11,661 58,214 8,789 305,325 20,450 Asset-backed securities 67,246 439 16,489 26 83,735 465 Commercial mortgage-backed securities 293,651 6,753 0 0 293,651 6,753 Residential mortgage-backed securities 68,283 513 0 0 68,283 513 Total fixed maturities, available-for-sale $ 6,364,591 $ 590,647 $ 127,079 $ 12,683 $ 6,491,670 $ 603,330 Equity securities, available-for-sale $ 0 $ 351 $ 0 $ 0 $ 0 $ 351 As of December 31, 2017 and 2016 , the gross unrealized losses on fixed maturity securities were composed of $253.0 million and $594.9 million , respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $2.7 million and $8.4 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2017 , the $248.0 million of gross unrealized losses on fixed maturities of twelve months or more were concentrated in U.S. government bonds , commercial mortgage-backed securities and in the Company's corporate securities within the consumer non-cyclical and finance sectors. As of December 31, 2016 , the $12.7 million of gross unrealized losses on fixed maturities of twelve months or more were concentrated in the Company's corporate securities within the consumer non-cyclical , finance and utility sectors. In accordance with its policy described in Note 2 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either December 31, 2017 or 2016 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of December 31, 2017 , the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2017 , there were no gross unrealized losses on equity securities. As of December 31, 2016 , $ 0 million of the gross unrealized losses on equity securities represented declines in value of 20% or more and had been in that position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these equity securities was not warranted at either December 31, 2017 or 2016. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: December 31, 2017 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 253,164 $ 253,552 Due after one year through five years 1,077,651 1,099,278 Due after five years through ten years 1,704,257 1,783,306 Due after ten years 6,102,888 5,957,634 Asset-backed securities 341,277 345,587 Commercial mortgage-backed securities 502,695 505,684 Residential mortgage-backed securities 163,334 165,745 Total fixed maturities, available-for-sale $ 10,145,266 $ 10,110,786 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities, available-for-sale Proceeds from sales(1) $ 517,743 $ 3,577,346 $ 33,604 Proceeds from maturities/prepayments 630,140 495,465 453,016 Gross investment gains from sales and maturities 8,992 98,095 5,788 Gross investment losses from sales and maturities (3,047 ) (5,412 ) (937 ) OTTI recognized in earnings(2) (9,122 ) (6,499 ) (20 ) (1) Includes $2.5 million , $0.6 million and $(0.0) million of non-cash related proceeds for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Excludes the portion of OTTI recorded in OCI representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company for which a portion of the OTTI loss was recognized in OCI and the corresponding changes in such amounts, for the periods indicated: Years Ended December 31, 2017 2016 (in thousands) Credit loss impairments: Balance, beginning of period $ 1,325 $ 86 New credit loss impairments 366 1,791 Additional credit loss impairments on securities previously impaired 606 0 Increases due to the passage of time on previously recorded credit losses 10 25 Reductions for securities which matured, paid down, prepaid or were sold during the period (21 ) (1,170 ) Reductions for securities impaired to fair value during the period(1) (1,481 ) 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (13 ) (14 ) Assets transferred to parent and affiliates 0 607 Balance, end of period $ 792 $ 1,325 (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost. Trading Account Assets The following table sets forth the composition of “Trading account assets,” as of the dates indicated: December 31, 2017 December 31, 2016 Amortized Cost or Cost Fair Value Amortized Cost or Cost Fair Value (in thousands) Fixed maturities $ 161,393 $ 166,360 $ 147,057 $ 139,513 Equity securities 11,600 15,357 7,551 10,358 Total trading account assets $ 172,993 $ 181,717 $ 154,608 $ 149,871 The net change in unrealized gains (losses) from trading account assets still held at period end, recorded within “Asset administrative fees and other income,” was $13.5 million , $(4.8) million and $(0.6) million during the years ended December 31, 2017 , 2016 and 2015 , respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2017 December 31, 2016 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 348,718 25.0 % $ 277,296 22.5 % Hospitality 3,782 0.3 3,925 0.3 Industrial 327,987 23.6 263,705 21.4 Office 294,072 21.2 294,304 23.8 Other 139,362 10.0 87,465 7.1 Retail 216,544 15.6 223,252 18.1 Total commercial mortgage loans 1,330,465 95.7 1,149,947 93.2 Agricultural property loans 59,197 4.3 84,235 6.8 Total commercial mortgage and agricultural property loans by property type 1,389,662 100.0 % 1,234,182 100.0 % Valuation allowance (2,650 ) (2,289 ) Total commercial mortgage and other loans $ 1,387,012 $ 1,231,893 As of December 31, 2017 , the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California ( 30% ), Texas ( 11% ) and New York ( 7% )) and included loans secured by properties in Europe and Australia. The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 2,267 $ 22 $ 2,289 Addition to (release of) allowance for losses 349 12 361 Charge-offs, net of recoveries 0 0 0 Total ending balance $ 2,616 $ 34 $ 2,650 December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 622 $ 21 $ 643 Addition to (release of) allowance for losses 1,645 1 1,646 Charge-offs, net of recoveries 0 0 0 Total ending balance $ 2,267 $ 22 $ 2,289 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, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,616 34 2,650 Total ending balance(1) $ 2,616 $ 34 $ 2,650 Recorded investment(2): Individually evaluated for impairment $ 1,571 $ 4,865 $ 6,436 Collectively evaluated for impairment 1,328,894 54,332 1,383,226 Total ending balance(1) $ 1,330,465 $ 59,197 $ 1,389,662 (1) As of December 31, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,267 22 2,289 Total ending balance(1) $ 2,267 $ 22 $ 2,289 Recorded investment(2): Individually evaluated for impairment $ 1,715 $ 0 $ 1,715 Collectively evaluated for impairment 1,148,232 84,235 1,232,467 Total ending balance(1) $ 1,149,947 $ 84,235 $ 1,234,182 (1) As of December 31, 2016 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,338 $ 14,426 $ 4,566 $ 686,330 60%-69.99% 503,922 1,329 0 505,251 70%-79.99% 182,368 13,281 0 195,649 80% or greater 1,387 0 1,045 2,432 Total commercial mortgage and agricultural property loans $ 1,355,015 $ 29,036 $ 5,611 $ 1,389,662 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,051 $ 16,921 $ 4,610 $ 688,582 60%-69.99% 406,728 0 3,817 410,545 70%-79.99% 108,770 15,493 0 124,263 80% or greater 9,725 0 1,067 10,792 Total commercial mortgage and agricultural property loans $ 1,192,274 $ 32,414 $ 9,494 $ 1,234,182 The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: December 31, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,330,465 $ 0 $ 0 $ 0 $ 1,330,465 $ 0 Agricultural property loans 59,197 0 0 0 59,197 0 Total $ 1,389,662 $ 0 $ 0 $ 0 $ 1,389,662 $ 0 (1) As of December 31, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 . December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,149,947 $ 0 $ 0 $ 0 $ 1,149,947 $ 0 Agricultural property loans 84,235 0 0 0 84,235 0 Total $ 1,234,182 $ 0 $ 0 $ 0 $ 1,234,182 $ 0 (1) As of December 31, 2016 , there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 . For the years ended December 31, 2017 and 2016 , there were no commercial mortgage and other loans acquired, other than those through direct origination. For the year ended December 31, 2017 , there were $129 million of commercial mortgage and other loans sold. For the year ended December 31, 2016 , there were no commercial mortgage and other loans sold. For the year ended December 31, 2017 , there were no transfers of commercial mortgage and other loans to related parties. For the year ended December 31, 2016 , the Company received $580 million of commercial mortgage and other loans from related parties. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2017 and 2016 , there were no new troubled debt restructurings related to commercial mortgage or other loans and no payment defaults on commercial mortgage or other loans that were modified as a troubled debt restructuring within the twelve months preceding. As of both December 31, 2017 and 2016 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. For additional information relating to the accounting for troubled debt restructurings, see Note 2 . Other Long-Term Investments The following table sets forth the composition of “Other long-term investments,” as of the dates indicated: December 31, 2017 2016 (in thousands) Joint ventures and limited partnerships: Private equity $ 29,301 $ 30,513 Hedge funds 106,776 98,554 Real estate-related 48,555 109,043 Total joint ventures and limited partnerships 184,632 238,110 Derivatives 151,179 313,821 Total other long-term investments $ 335,811 $ 551,931 As of both December 31, 2017 and 2016 , the Company had no significant equity method investments. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities, available-for-sale $ 332,148 $ 249,496 $ 115,998 Trading account assets 4,927 3,473 349 Commercial mortgage and other loans 48,598 40,258 22,696 Policy loans 1,069 444 794 Short-term investments and cash equivalents 31,505 26,831 396 Other long-term investments 20,626 29,160 4,638 Gross investment income 438,873 349,662 144,871 Less: investment expenses (16,064 ) (11,292 ) (5,441 ) Net investment income $ 422,809 $ 338,370 $ 139,430 The carrying value of non-income producing assets included $1.9 million in fixed maturities as of December 31, 2017 . Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2017 . Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities $ (3,177 ) $ 86,184 $ 4,831 Commercial mortgage and other loans (840 ) (2,326 ) (161 ) Derivatives(1) (801,429 ) (3,526,514 ) 1,381 Other long-term investments (39 ) (648 ) 1 Short-term investments and cash equivalents 85 544 0 Realized investment gains (losses), net $ (805,400 ) $ (3,442,760 ) $ 6,052 (1) Includes the hedged items offset in qualifying fair value hedge accounting relationships. Net Unrealized Gains (Losses) on Investments The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2017 2016 2015 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 12,311 $ (1,261 ) $ 9 Fixed maturity securities, available-for-sale—all other (46,791 ) (454,274 ) 90,637 Equity securities, available-for-sale 4 (347 ) 3 Derivatives designated as cash flow hedges(1) (25,851 ) 11,745 14,847 Affiliated notes 829 1,181 1,660 Other investments 86 (619 ) 304 Net unrealized gains (losses) on investments $ (59,412 ) $ (443,575 ) $ 107,460 (1) See Note 11 for more information on cash flow hedges. Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both December 31, 2017 and 2016 , the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: December 31, 2017 December 31, 2016 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) (in thousands) Foreign government bonds $ 10,505 $ 0 $ 10,505 $ 10,712 $ 0 $ 10,712 U.S. public corporate securities 6,878 0 6,878 12,638 0 12,638 Total cash collateral for loaned securities(1) $ 17,383 $ 0 $ 17,383 $ 23,350 $ 0 $ 23,350 (1) The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. Securities Pledged, Restricted Assets 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. The following table sets forth the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: December 31, 2017 2016 (in thousands) Pledged collateral: Fixed maturity securities, available-for-sale $ 16,825 $ 21,908 Total securities pledged $ 16,825 $ 21,908 Liabilities supported by pledged collateral: Cash collateral for loaned securities $ 17,383 $ 23,350 Total liabilities supported by pledged collateral $ 17,383 $ 23,350 In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral were securities purchased under agreements to resell. As of December 31, 2017 , there was no such collateral. As of December 31, 2016 , the fair value of this collateral was $255 million , none of which had either been sold or repledged. As of December 31, 2017 and 2016 , there were fixed maturities of $8.3 million and $7.5 million , respectively, 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, 2017 | |
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: 2017 2016 2015 (in thousands) Balance, beginning of year $ 4,344,361 $ 749,302 $ 1,114,431 Capitalization of commissions, sales and issue expenses 277,586 269,679 1,535 Amortization-Impact of assumption and experience unlocking and true-ups 288,974 226,204 33,113 Amortization-All other (275,028 ) (46,388 ) (342,265 ) Changes in unrealized investment gains and losses (39,328 ) 18,772 16,352 Ceded DAC upon reinsurance agreement with Prudential Insurance(1)(2) 0 (7,480 ) (73,864 ) Assumed DAC upon reinsurance agreement with Pruco Life(1) 0 3,134,272 0 Balance, end of year $ 4,596,565 $ 4,344,361 $ 749,302 (1) See Note 1 and Note 13 for additional information. (2) Represents a $7.5 million true-up in 2016 to the ceded DAC upon reinsurance agreement with Prudential Insurance in 2015 . |
Value of Business Acquired
Value of Business Acquired | 12 Months Ended |
Dec. 31, 2017 | |
Present Value of Future Insurance Profits [Abstract] | |
Value of Business Acquired | VALUE OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2017 2016 2015 (in thousands) Balance, beginning of year $ 30,287 $ 33,640 $ 39,738 Amortization-Impact of assumption and experience unlocking and true-ups (1) 10,035 2,372 3,412 Amortization-All other (1) (7,422 ) (8,176 ) (10,477 ) Interest (2) 2,001 1,939 2,436 Change in unrealized investment gains and losses 208 512 1,163 Ceded VOBA upon reinsurance agreement with Prudential Insurance (3) 0 0 (2,632 ) Balance, end of year $ 35,109 $ 30,287 $ 33,640 (1) The weighted average remaining expected life of VOBA was approximately 5.47 years as of December 31, 2017 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 5.96% , 6.00% and 6.05% for the years ended December 31, 2017 , 2016 and 2015 . (3) See Note 1 for additional information. The following table provides estimated future amortization, net of interest, for the periods indicated: 2018 2019 2020 2021 2022 (in thousands) Estimated future VOBA amortization $ 5,867 $ 4,997 $ 4,258 $ 3,620 $ 3,077 |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Future Policy Benefits [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31 for the years indicated are as follows: 2017 2016 (in thousands) Life insurance – domestic $ 800 $ 964 Individual and group annuities and supplementary contracts(2) 970,936 446,318 Other contract liabilities(2) 8,160,833 1,267,739 Individual and group annuities assumed upon reinsurance agreement with Pruco Life(1) 0 528,210 Other contract liabilities assumed upon reinsurance agreement with Pruco Life(1) 0 6,442,965 Total future policy benefits $ 9,132,569 $ 8,686,196 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Life insurance liabilities include reserves for death benefits. Individual and group annuities and supplementary contract liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned premiums and certain other reserves for annuities and individual life products. Future policy benefits for domestic individual non-participating traditional life insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 0.0% to 0.0% for setting domestic insurance reserves. Future policy benefits for individual and group annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values generally range from 0.0% to 8.3% , with less than 0.5% of the reserves based on an interest rate in excess of 8.0% . The Company’s liability for future policy benefits are primarily liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in "Other contract liabilities" in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. The interest rates used in the determination of the present values range from 2.0% to 3.6% . See Note 7 for additional information regarding liabilities for guaranteed benefits related to certain long-duration contracts. Premium deficiency reserves included in “Future policy benefits” 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 have been recorded for the individual annuity business, which consists of limited-payment, long-duration; and single premium immediate annuities with life contingencies. Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows: 2017 2016 (in thousands) Interest-sensitive life contracts $ 15,301 $ 15,666 Individual annuities(2) 4,162,138 1,441,126 Guaranteed interest accounts 668,713 893,419 Assumed policyholders' liabilities upon reinsurance agreement with Pruco Life(1) 0 2,386,678 Total policyholders’ account balances $ 4,846,152 $ 4,736,889 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Policyholders’ account balances represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Interest crediting rates range from 3.5% to 6.0% for interest-sensitive life contracts. Interest crediting rates for individual annuities range from 0.0% to 6.5% . Interest crediting rates for guaranteed interest accounts range from 0.0% to 5.8% . |
Certain Long-Duration Contracts
Certain Long-Duration Contracts With Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company 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 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 total deposits made to the contract adjusted for any partial withdrawals ("return of net deposits"). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return ('minimum return"), and/or (2) 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 also 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 reallocated 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 also 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.” As of December 31, 2017 and 2016 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2017 December 31, 2016 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death(2) At Annuitization/ Accumulation (1)(2) Annuity Contracts (in thousands) Return of net deposits Account value $ 119,182,143 N/A $ 110,194,439 N/A Net amount at risk $ 274,617 N/A $ 463,423 N/A Average attained age of contractholders 66 years N/A 66 years N/A Minimum return or contract value Account value $ 25,835,100 $ 129,630,456 $ 24,725,084 $ 120,237,955 Net amount at risk $ 2,161,133 $ 3,225,700 $ 3,098,018 $ 5,041,214 Average attained age of contractholders 69 years 67 years 69 years 66 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits. (2) Includes assumed reinsurance business from Pruco Life. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2017(1) December 31, 2016(1) (in thousands) Equity funds $ 83,556,771 $ 77,133,820 Bond funds 53,027,241 44,025,867 Money market funds 3,726,553 9,099,337 Total $ 140,310,565 $ 130,259,024 (1) Amounts include assumed reinsurance business from Pruco Life. In addition to the amounts invested in separate account investment options above, $4.7 billion at December 31, 2017 and $4.7 billion at December 31, 2016 of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options. The 2016 amount includes the impact of the Variable Annuities Recapture effective April 1, 2016, as described in Note 1 . For the years ended December 31, 2017 , 2016 and 2015 , 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 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 within “Future policy benefits.” 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 Company maintains 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 at 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 ) Change in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) Balance at December 31, 2015 265,877 3,134,077 13,864 3,413,818 Incurred guarantee benefits(1)(2) 43,185 (1,979,215 ) (3,683 ) (1,939,713 ) Paid guarantee benefits(2) (55,604 ) 0 (2,209 ) (57,813 ) Change in unrealized investment gains and losses(2) (5,206 ) 0 (209 ) (5,415 ) Assumed guarantees upon reinsurance agreement with Pruco Life 389,067 6,552,471 30,130 6,971,668 Balance at December 31, 2016 637,319 7,707,333 37,893 8,382,545 Incurred guarantee benefits(1)(2) 29,605 444,569 (11,686 ) 462,488 Paid guarantee benefits(2) (57,053 ) 0 (3,798 ) (60,851 ) Change in unrealized investment gains and losses(2) 12,931 0 117 13,048 Balance at December 31, 2017 $ 622,802 $ 8,151,902 $ 22,526 $ 8,797,230 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Amounts include assumed reinsurance business from Pruco Life. 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 guaranteed 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 GMIB liability associated with fixed annuities is determined each period by estimating the present value of projected income benefits in excess of the account balance. 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 features, which includes an automatic rebalancing element 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 the 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 automatic rebalancing element 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. 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 has offered various types of sales inducements, including: (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 at 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 agreement with Prudential Insurance(1) (39,253 ) Balance at December 31, 2015 452,752 Capitalization 1,805 Amortization - Impact of assumption and experience unlocking and true-ups 101,424 Amortization - All other (81,603 ) Change in unrealized investment gains and losses 4,915 Assumed DSI upon reinsurance agreement with Pruco Life(1) 499,530 Balance at December 31, 2016 978,823 Capitalization 1,551 Amortization - Impact of assumption and experience unlocking and true-ups 145,141 Amortization - All other (94,014 ) Change in unrealized investment gains and losses (10,715 ) Balance at December 31, 2017 $ 1,020,786 (1) See Note 1 for additional information. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [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 ("SAP") 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 (loss) of the Company amounted to $3,911 million , $(2,018) million and $340 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Statutory surplus of the Company amounted to $8,059 million and $5,718 million at December 31, 2017 and 2016 , respectively. The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC. The Company is subject to Arizona law, which limits the amount of dividends that insurance companies can pay to stockholders. 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, the Company is not permitted to pay a dividend in 2018 without prior notification. On December 21, September 28 and June 28, 2017, the Company paid an extra-ordinary dividend of $650 million , $200 million and $100 million , respectively, to its parent, PAI, which was recorded as a return of capital. On December 21, 2016, the Company paid an extra-ordinary dividend of $1,140 million to PAI, which was recorded as a return of capital. On December 22, 2015 and June 29, 2015, the Company paid dividends of $180 million and $270 million , respectively, to PAI. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2017 2016 2015 (in thousands) Current tax expense (benefit): U.S. federal $ 501,088 $ 2,524,458 $ 76,175 State and local 1,349 0 0 Total 502,437 2,524,458 76,175 Deferred tax expense (benefit): U.S. federal 698,662 (3,204,951 ) (84,460 ) State and local 0 0 0 Total 698,662 (3,204,951 ) (84,460 ) Total income tax expense (benefit) 1,201,099 (680,493 ) (8,285 ) Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 98,644 (194,446 ) (20,708 ) Additional paid-in capital 0 (9,531 ) 0 Total income tax expense (benefit) $ 1,299,743 $ (884,470 ) $ (28,993 ) Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit) The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2017 2016 2015 (in thousands) Expected federal income tax expense (benefit) $ 391,158 $ (619,704 ) $ 57,727 Non-taxable investment income (46,625 ) (49,630 ) (56,614 ) Tax credits (10,358 ) (10,507 ) (9,389 ) Changes in tax law 882,175 0 0 Other (15,251 ) (652 ) (9 ) Reported income tax expense (benefit) $ 1,201,099 $ (680,493 ) $ (8,285 ) Effective tax rate 107.5 % 38.4 % (5.0 )% The effective tax rate is the ratio of “Total income tax expense (benefit)” divided by “Income (loss) from operations before income taxes.” The Company’s effective tax rate for fiscal years 2017, 2016 and 2015 was 107.5% , 38.4% and (5.0)% , respectively. The following is a description of items that had the most significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 35% and the Company’s effective tax rate during the periods presented: Changes in Tax Law. The following is a list of notable changes in tax law that impacted the Company’s effective tax rate for the periods presented: U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act of 2017”). On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. This law includes a broad range of tax reform changes that will affect U.S. businesses, including changes to corporate tax rates, business deductions and international tax provisions. Under U.S. GAAP, changes in tax rates and tax law are accounted for in the period of enactment (the date the President signed the bill into law). In December 2017, the SEC staff issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act of 2017. SAB 118 provides guidance for registrants under three scenarios: (1) measurement of certain income tax effects is complete, (2) measurement of certain income tax effects can be reasonably estimated and (3) measurement of certain income tax effects cannot be reasonably estimated. SAB 118 provides that the measurement period is complete when a company’s accounting is complete and in no circumstances should the measurement period extend beyond one year from the enactment date. SAB 118 acknowledges that a company may be able to complete the accounting for some provisions earlier than others. As a result, it may need to apply all three scenarios in determining the accounting for the Tax Act of 2017 based on information that is available. The Company has not fully completed its accounting for the tax effects of the Tax Act of 2017. However, we have recorded the effects of the Tax Act of 2017 as reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. As a result, upon enactment of the Tax Act of 2017, the Company recognized a $882 million tax expense in “Total income tax expense (benefit)” in the Company’s Statements of Operations for the year ended December 31, 2017. This net tax expense was comprised of the following component: • $882 million tax expense from the reduction in net deferred tax assets to reflect the reduction in the U.S. tax rate from 35% to 21% As we complete the collection, preparation and analysis of data relevant to the Tax Act of 2017, interpret any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, we may make adjustments to these provisional amounts. These adjustments may materially impact our provision for income taxes in the period in which the adjustments are made. Non-Taxable Investment Income. The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $46 million of the total $47 million of 2017 non-taxable investment income, $50 million of the total $50 million of 2016 non-taxable investment income, and $57 million of the total $57 million of 2015 non-taxable investment income. The DRD for the current period was estimated using information from 2016, current year investment results, and current year’s equity market performance. The actual current year DRD can vary 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 fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Other. This line item represents insignificant reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance. Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2017 2016 (in thousands) Deferred tax assets: Insurance reserves $ 2,064,659 $ 3,369,384 Investments 404,703 418,128 Net unrealized loss on securities 7,048 159,362 Other 205 440 Deferred tax assets 2,476,615 3,947,314 Deferred tax liabilities: VOBA and deferred policy acquisition cost 960,841 1,506,010 Deferred sales inducements 214,365 342,588 Deferred tax liabilities 1,175,206 1,848,598 Net deferred tax asset (liability) $ 1,301,409 $ 2,098,716 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, 2017 , 2016 , and 2015 . 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 operations before income taxes includes income (loss) from domestic operations of $1,118 million , $(1,771) million , and $165 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Tax Audit and Unrecognized Tax Benefits 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 had no unrecognized tax benefits as of December 31, 2017 , 2016 , and 2015. The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. At December 31, 2017 , the Company remains subject to examination in the U.S. for tax years 2014 through 2016 . The Company is participating in the IRS’s Compliance Assurance Program. Under this program, 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 resolution 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, 2017 | |
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 certain cash equivalents, short-term investments, equity securities and derivative contracts 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 trade in active markets because they are not publicly available), certain short-term investments, certain cash equivalents and certain 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 and equity securities, certain manually priced fixed maturities, certain short-term investments, certain cash equivalents, certain highly structured OTC derivative contracts and embedded derivatives resulting from reinsurance or 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, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 4,826,413 $ 5,237 $ 0 $ 4,831,650 Obligations of U.S. states and their political subdivisions 0 104,640 0 0 104,640 Foreign government bonds 0 140,305 0 0 140,305 U.S. corporate public securities 0 1,806,888 1,562 0 1,808,450 U.S. corporate private securities 0 1,148,536 59,408 0 1,207,944 Foreign corporate public securities 0 229,006 215 0 229,221 Foreign corporate private securities 0 737,539 34,021 0 771,560 Asset-backed securities(4) 0 160,229 185,358 0 345,587 Commercial mortgage-backed securities 0 505,684 0 0 505,684 Residential mortgage-backed securities 0 165,745 0 0 165,745 Subtotal 0 9,824,985 285,801 0 10,110,786 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 123,820 0 0 123,820 Corporate securities 0 42,540 0 0 42,540 Asset-backed securities(4) 0 0 0 0 0 Equity securities 5,599 0 9,758 0 15,357 Subtotal 5,599 166,360 9,758 0 181,717 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 448,712 262,272 87 0 711,071 Cash equivalents 0 1,146,466 0 0 1,146,466 Other long-term investments(5) 10,738 5,059,779 147 (4,919,486 ) 151,178 Reinsurance recoverables 0 0 244,006 0 244,006 Receivables from parent and affiliates 0 38,145 0 0 38,145 Subtotal excluding separate account assets 465,049 16,498,025 539,799 (4,919,486 ) 12,583,387 Separate account assets(2) 0 37,990,547 0 0 37,990,547 Total assets $ 465,049 $ 54,488,572 $ 539,799 $ (4,919,486 ) $ 50,573,934 Future policy benefits(3) $ 0 $ 0 $ 8,151,902 $ 0 $ 8,151,902 Payables to parent and affiliates 0 1,941,403 0 (1,941,403 ) 0 Other liabilities 0 0 0 0 0 Total liabilities $ 0 $ 1,941,403 $ 8,151,902 $ (1,941,403 ) $ 8,151,902 As of December 31, 2016 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 $ 4,465,025 $ 0 $ 0 $ 4,465,025 Obligations of U.S. states and their political subdivisions 0 89,974 0 0 89,974 Foreign government bonds 0 69,299 87 0 69,386 U.S. corporate public securities 0 1,909,440 15,598 0 1,925,038 U.S. corporate private securities 0 997,004 124,864 0 1,121,868 Foreign corporate public securities 0 217,363 0 0 217,363 Foreign corporate private securities 0 526,504 11,527 0 538,031 Asset-backed securities(4) 0 219,574 31,735 0 251,309 Commercial mortgage-backed securities 0 484,713 0 0 484,713 Residential mortgage-backed securities 0 200,056 0 0 200,056 Subtotal 0 9,178,952 183,811 0 9,362,763 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 116,184 0 0 116,184 Corporate securities 0 21,632 0 0 21,632 Asset-backed securities(4) 0 1,697 0 0 1,697 Equity securities 5,494 0 4,864 0 10,358 Subtotal 5,494 139,513 4,864 0 149,871 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 519,000 392,700 450 0 912,150 Cash equivalents 738,449 847,329 375 0 1,586,153 Other long-term investments(5) 23,967 4,872,392 0 (4,582,540 ) 313,819 Reinsurance recoverables 0 0 240,091 0 240,091 Receivables from parent and affiliates 0 6,962 33,962 0 40,924 Subtotal excluding separate account assets 1,286,910 15,437,866 463,553 (4,582,540 ) 12,605,789 Separate account assets(2) 0 37,429,739 0 0 37,429,739 Total assets $ 1,286,910 $ 52,867,605 $ 463,553 $ (4,582,540 ) $ 50,035,528 Future policy benefits(3) $ 0 $ 0 $ 7,707,333 $ 0 $ 7,707,333 Payables to parent and affiliates 0 1,654,360 0 (1,654,360 ) 0 Other liabilities $ 5,051 $ 0 $ 0 $ 0 $ 5,051 Total liabilities $ 5,051 $ 1,654,360 $ 7,707,333 $ (1,654,360 ) $ 7,712,384 (1) “Netting” amounts represent cash collateral of $2,978 million and $2,928 million as of December 31, 2017 and 2016 , 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, 2017 , the net embedded derivative liability position of $8,152 million includes $819 million of embedded derivatives in an asset position and $8,971 million of embedded derivatives in a liability position. As of December 31, 2016 , the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position. (4) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2017 and 2016 , the fair values of these investments were $ 0.3 million and $ 0.4 million . 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, 2017 and 2016 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 values of private fixed maturities, which are 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 the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly 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 fixed maturity securities and equity securities whose fair values are determined consistent with similar instruments described above under "Fixed Maturity Securities" and below under “Equity Securities.” Equity Securities – Equity securities consist principally of investments in common of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. 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 risk positions, and consider the bid-ask spread, maturity, complexity, and other specific attributes of the underlying derivative position. The Company's exchange-traded futures and options include treasury and equity futures. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the 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. 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, mutual funds, and commercial mortgage loans 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 where fair value is 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 variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance Recoverables” or “Reinsurance Payables” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those 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 guarantee. 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, including GMAB, GMWB and GMIWB, accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative 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 – Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. The fair value of foreign common stock held in the Company's Separate Account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During the years ended December 31, 2017 and 2016 , there were no transfers between Level 1 and Level 2. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2017 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 $ 22,215 Discounted cash flow Discount rate 5.06 % 22.23 % 8.57 % Decrease Reinsurance recoverables $ 244,006 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 8,151,902 Discounted cash flow Lapse rate(3) 1 % 12 % Decrease Spread over LIBOR(4) 0.12 % 1.10 % Decrease Utilization rate(5) 52 % 97 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 13 % 24 % Increase As of December 31, 2016 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 $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease Spread over LIBOR(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Future policy benefits primarily represent general account liabilities for the living benefit guarantees 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) The spread over LIBOR swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (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 vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2017 and 2016 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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 describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. Year Ended December 31, 2017 Fixed Maturities Available-For-Sale U.S. Government Foreign Government Corporate Securities(5) Asset-Backed Securities(4) (in thousands) Fair value, beginning of period $ 0 $ 87 $ 151,989 $ 31,735 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (6,877 ) 576 Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 (3,627 ) 217 Net investment income 0 0 7,874 183 Purchases 4,264 0 17,920 237,469 Sales 0 0 (15,283 ) (5,613 ) Issuances 0 0 0 0 Settlements 0 0 (111,675 ) (55,184 ) Transfers into Level 3(1) 0 0 64,412 106,034 Transfers out of Level 3(1) 0 (87 ) (5,370 ) (130,059 ) Other(3) 973 0 (4,157 ) 0 Fair Value, end of period $ 5,237 $ 0 $ 95,206 $ 185,358 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (6,498 ) $ (8 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2017 Trading Account Assets Asset-Backed Securities(4) Equity Securities Equity Securities, Available- for-Sale Short-term Investments Cash Equivalents (in thousands) Fair value, beginning of period $ 0 $ 4,864 $ 0 $ 450 $ 375 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Asset management fees and other income 0 689 0 0 0 Included in other comprehensive income (loss) 0 0 351 0 0 Net investment income 0 0 0 0 0 Purchases 0 0 0 94 0 Sales 0 0 0 (5 ) 0 Issuances |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. 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. The Company also uses interest rate swaptions, caps and floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions, caps and floors are included in interest rate options. In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange. Equity Contracts Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling. 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. In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange. Foreign Exchange Contracts Currency derivatives, including currency swaps and forwards, 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 forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. 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. Credit Contracts The Company writes credit protection to gain exposure similar to investment in public fixed maturity cash instruments. With these credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced names (or an index's referenced names) 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 or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. In addition to selling credit protection, the Company purchases credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company sold variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. Related to these embedded derivatives, the Company had previously entered into reinsurance agreements with Pruco Re and Prudential Insurance through March 31, 2016; effective April 1, 2016, the Company recaptured these reinsurances. Also, effective April 1, 2016, the Company assumed variable annuities living benefit guarantees from Pruco Life, excluding PLNJ business. See Note 1 for additional information on the change to the reinsurance agreements. Additionally, the Company reinsured the majority of its New York business to an affiliate, Prudential Insurance, as a result of surrendering its New York license, effective December 31, 2015. See Note 1 for additional information on these reinsurance agreements. These embedded derivatives and reinsurance agreements, also accounted for as derivatives, are carried at fair value and 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 . Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying risks, excluding embedded derivatives which are recorded with the associated host and related reinsurance recoverables. 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, 2017 December 31, 2016 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 $ 677,257 $ 13,348 $ (47,209 ) $ 472,701 $ 38,249 $ (2,776 ) Total Qualifying Hedges $ 677,257 $ 13,348 $ (47,209 ) $ 472,701 $ 38,249 $ (2,776 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 1,964,000 $ 8,296 $ 0 $ 2,474,000 $ 23,967 $ 0 Interest Rate Swaps 87,939,425 4,374,658 (1,065,549 ) 81,872,695 4,439,270 (1,163,388 ) Interest Rate Options 15,775,000 175,156 (160,181 ) 10,825,000 278,763 (135,554 ) Interest Rate Forwards 975,929 19,870 (2 ) 498,311 0 (25,082 ) Foreign Currency Foreign Currency Forwards 12,455 1 (319 ) 1,491 6 0 Currency/Interest Rate Foreign Currency Swaps 151,400 7,779 (7,488 ) 130,470 16,627 (635 ) Equity Equity Futures 672,055 2,442 0 1,269,044 0 (5,051 ) Total Return Swaps 13,841,333 8,517 (341,700 ) 12,784,166 69,827 (281,193 ) Equity Options 31,702,334 460,597 (318,955 ) 4,610,001 29,650 (45,732 ) Total Non-Qualifying Hedges $ 153,033,931 $ 5,057,316 $ (1,894,194 ) $ 114,465,178 $ 4,858,110 $ (1,656,635 ) Total Derivatives (1) $ 153,711,188 $ 5,070,664 $ (1,941,403 ) $ 114,937,879 $ 4,896,359 $ (1,659,411 ) (1) Excludes embedded derivatives and the related reinsurance recoverables which contain multiple underlyings. The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $8,152 million and $7,707 million as of December 31, 2017 and 2016 , respectively. The fair value of the related reinsurance recoverables to Prudential Insurance was an asset of $232 million and $231 million as of December 31, 2017 and 2016 , respectively, included in "Reinsurance recoverables". See Note 13 for additional information on these reinsurance agreements. The fair value of the embedded derivatives pertaining to the variable annuity products with a market value adjustment option assumed from Pruco Life as part of the Variable Annuities Recapture, included in "Reinsurance recoverables", was a net asset of $12 million and $10 million as of December 31, 2017 and 2016 , respectively. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the 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, 2017 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(1) $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Offsetting of Financial Liabilities: Derivatives(1) $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 December 31, 2016 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(1) $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives(1) $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 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 and Note 15 . For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements. 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, 2017 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 6,152 $ (11,043 ) $ (37,596 ) Total cash flow hedges 0 6,152 (11,043 ) (37,596 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 550,797 0 0 0 Currency (454 ) 0 0 0 Currency/Interest Rate (30,173 ) 0 (183 ) 0 Credit 0 0 0 0 Equity (2,000,297 ) 0 0 0 Embedded Derivatives 678,698 0 0 0 Total non-qualifying hedges (801,429 ) 0 (183 ) 0 Total $ (801,429 ) $ 6,152 $ (11,226 ) $ (37,596 ) Year Ended December 31, 2016 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 $ 3,006 $ 9,648 $ (3,102 ) Total cash flow hedges 0 3,006 9,648 (3,102 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,219,894 ) 0 0 0 Currency 361 0 0 0 Currency/Interest Rate 11,642 0 516 0 Credit 0 0 0 0 Equity (1,755,946 ) 0 0 0 Embedded Derivatives 437,323 0 0 0 Total non-qualifying hedges (3,526,514 ) 0 516 0 Total $ (3,526,514 ) $ 3,006 $ 10,164 $ (3,102 ) 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 (1) Amounts deferred in AOCI. For the years ended December 31, 2017 , 2016 and 2015 , the ineffective portion of derivatives accounted for using hedge accounting were de minimis to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Presented below is a rollforward of current period cash flow hedges in “Accumulated other comprehensive income (loss)” before taxes: (in thousands) Balance, December 31, 2014 $ 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amount reclassified into current period earnings (2,070 ) Balance, December 31, 2015 14,847 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 9,698 Amount reclassified into current period earnings (12,800 ) Balance, December 31, 2016 11,745 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2017 (39,434 ) Amounts reclassified into current period earnings 1,838 Balance, December 31, 2017 $ (25,851 ) The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2017 values, it is estimated that a pre-tax gain of approximately $7 million will be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2018, offset by amounts pertaining to the hedged item. As of December 31, 2017 , 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 . Credit Derivatives The Company has no exposure from credit derivative positions where it has written or purchased credit protection as of December 31, 2017 and 2016 . Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding, LLC (“PGF”), related to its OTC derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement as applicable; (ii) trading through a central clearing and OTC; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation and Regulatory Matters | COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Commitments The Company has made commitments to fund $37 million and $9 million of commercial loans as of December 31, 2017 and 2016 , respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $134 million and $121 million as of December 31, 2017 and 2016 , respectively. Contingent Liabilities On an ongoing basis, the Company reviews its operations including, but not limited to, practices and procedures for meeting obligations to our customers and other parties. This review may result in the modification or enhancement of processes, including concerning the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed, including matters discussed below. The Company estimates that as of December 31, 2017 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $150 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. During 2017, audits were satisfactorily completed by the third party auditor of the Global Resolution Agreement and by the regulators for the Regulatory Settlement Agreement to assure that the Company had complied with the terms of both agreements. 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 2016, Prudential Financial self-reported to the SEC and the DOL, and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and substantially implemented a remediation plan for the benefit of customers. Prudential Financial is cooperating with regulators in their review of this matter (which includes a review of the remediation plan) and has entered into discussions with the SEC staff regarding a possible settlement that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of these discussions. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company uses reinsurance as part of its risk management and capital management strategies for certain of its living benefit guarantees and variable annuity base contracts. Through March 31, 2016 , the Company reinsured its living benefit guarantees on certain variable annuity products to Pruco Re and Prudential Insurance, which are the legal entities in which the Company previously executed its living benefit hedging program. Effective April 1, 2016 the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance, as discussed further in Note 1 . In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance. This reinsurance covers new and in force business and excludes business reinsured externally. 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 guarantees and base contracts, to Prudential Insurance. See Note 1 for additional information. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through "Realized investment gains (losses), net". See Note 11 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company's Statements of Financial Position as of December 31, were as follows: 2017 2016 (in thousands) Reinsurance recoverables $ 563,428 $ 588,608 Deferred policy acquisition costs 3,766,066 3,557,248 Deferred sales inducements 540,389 520,182 Value of business acquired (2,702 ) (2,357 ) Other assets 105,167 112,802 Policyholders’ account balances 2,825,030 2,576,357 Future policy benefits 5,511,496 5,130,753 Reinsurance payables(1) 262,588 275,822 Other liabilities 329,019 335,713 (1) "Reinsurance payables" includes $0.1 million of unaffiliated activity as of both December 31, 2017 and 2016 . The reinsurance recoverables by counterparty are broken out below: December 31, 2017 December 31, 2016 (in thousands) Prudential Insurance $ 310,758 $ 306,191 Pruco Life 252,383 282,326 Unaffiliated 287 91 Total reinsurance recoverables $ 563,428 $ 588,608 Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2017 2016 2015(3) (in thousands) Premiums: Direct $ 33,908 $ 39,326 $ 33,250 Assumed 32,890 860,831 0 Ceded (3,225 ) (3,318 ) (23,463 ) Net premiums 63,573 896,839 9,787 Policy charges and fee income: Direct 622,099 647,226 743,956 Assumed 1,632,132 1,153,752 0 Ceded(1) (44,652 ) (45,754 ) (3,133 ) Net policy charges and fee income 2,209,579 1,755,224 740,823 Asset administration fees and other income: Direct 129,847 103,892 177,479 Assumed 293,275 205,221 0 Ceded (9,747 ) (9,729 ) 0 Net asset administration fees and other income 413,375 299,384 177,479 Realized investment gains (losses), net: Direct (1,335,253 ) (3,612,578 ) 247,525 Assumed 554,686 (81,510 ) 0 Ceded (24,833 ) 251,328 (241,473 ) Realized investment gains (losses), net (805,400 ) (3,442,760 ) 6,052 Policyholders' benefits (including change in reserves): Direct 52,477 74,438 81,719 Assumed 46,375 553,280 0 Ceded(2) 15,216 (23,661 ) (21,258 ) Net policyholders' benefits (including change in reserves) 114,068 604,057 60,461 Interest credited to policyholders’ account balances: Direct 9,834 74,389 225,555 Assumed 24,708 (1,551 ) 0 Ceded (4,262 ) (3,949 ) 0 Net interest credited to policyholders’ account balances 30,280 68,889 225,555 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization 725,749 563,027 (6,054 ) (1) "Policy charges and fee income ceded" includes $(2) million , $(2) million and $(3) million of unaffiliated activity for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) "Policyholders' benefits (including change in reserves) ceded" includes $(0.1) million , $(0.3) million and $(0.1) million of unaffiliated activity for the years ended December 31, 2017 , 2016 and 2015 , respectively. (3) Prior period amounts are presented on a basis consistent with the current presentation. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of "Accumulated other comprehensive income (loss)” for the 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, December 31, 2014 $ (30 ) $ 84,652 $ 84,622 Change in OCI 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, December 31, 2015 (65 ) 46,231 46,166 Change in OCI before reclassifications (20 ) (469,356 ) (469,376 ) Amounts reclassified from AOCI 0 (86,184 ) (86,184 ) Income tax benefit (expense) 7 194,439 194,446 Balance, December 31, 2016 (78 ) (314,870 ) (314,948 ) Change in OCI before reclassifications 109 320,182 320,291 Amounts reclassified from AOCI 0 3,177 3,177 Income tax benefit (expense) (38 ) (98,606 ) (98,644 ) Balance, December 31, 2017 $ (7 ) $ (90,117 ) $ (90,124 ) (1) Includes cash flow hedges of $(26) million , $12 million and $15 million as of December 31, 2017 , 2016 , and 2015 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ (1,838 ) $ 12,800 $ 2,070 Net unrealized investment gains (losses) on available-for-sale securities (1,339 ) 73,384 2,761 Total net unrealized investment gains (losses)(4) (3,177 ) 86,184 4,831 Total reclassifications for the period $ (3,177 ) $ 86,184 $ 4,831 (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 (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 (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) 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 Reclassification adjustment for OTTI losses excluded from net income 0 0 0 0 0 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 Net investment gains (losses) on investments arising during the period 378 0 0 (132 ) 246 Reclassification adjustment for (gains) losses included in net income 556 0 0 (195 ) 361 Reclassification adjustment for OTTI losses excluded from net income (2,204 ) 0 0 771 (1,433 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (2,130 ) 0 746 (1,384 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (522 ) 183 (339 ) Balance, December 31, 2016 (1,261 ) (2,133 ) (522 ) 1,387 (2,529 ) Net investment gains (losses) on investments arising during the period 11,328 0 0 (3,481 ) 7,847 Reclassification adjustment for (gains) losses included in net income 2,172 0 0 (667 ) 1,505 Reclassification adjustment for OTTI losses excluded from net income(1) 72 0 0 (22 ) 50 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 1,125 0 (352 ) 773 Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities 0 0 365 (128 ) 237 Balance, December 31, 2017 $ 12,311 $ (1,008 ) $ (157 ) $ (3,263 ) $ 7,883 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) 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 ) Reclassification adjustment for OTTI losses excluded from net income 0 0 0 0 0 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 Net investment gains (losses) on investments arising during the period (637,597 ) 0 0 223,159 (414,438 ) Reclassification adjustment for (gains) losses included in net income 85,628 0 0 (29,970 ) 55,658 Reclassification adjustment for OTTI losses excluded from net income 2,204 0 0 (771 ) 1433 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (786 ) 0 275 (511 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (1,068 ) 374 (694 ) Balance, December 31, 2016 (442,314 ) (31,251 ) (5,664 ) 166,888 (312,341 ) Net investment gains (losses) on investments arising during the period 376,012 0 0 (115,538 ) 260,474 Reclassification adjustment for (gains) losses included in net income (5,349 ) 0 0 1,644 (3,705 ) Reclassification adjustment for OTTI losses excluded from net income(2) (72 ) 0 0 22 (50 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (50,961 ) 0 15,949 (35,012 ) Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities 0 0 (11,333 ) 3,967 (7,366 ) Balance, December 31, 2017 $ (71,723 ) $ (82,212 ) $ (16,997 ) $ 72,932 $ (98,000 ) (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.1 million for each of the years ended December 31, 2017 , 2016 and 2015 . The expense charged to the Company for the deferred compensation program was $0.9 million , $0.8 million and $0.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $1 million for each of the years ended December 31, 2017 , 2016 and 2015 . The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $2 million for each of the years ended December 31, 2017 , 2016 and 2015 . Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $0.5 million for each of the years ended December 31, 2017 , 2016 and 2015 . 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 sell the Company’s products. Commissions and fees paid by the Company to PAD were $109 million , $108 million and $143 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $14 million $10 million and $11 million for the years ended December 31, 2017, 2016 and 2015, respectively. 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. The Company 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 $3 million , $4 million and $4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sub-lease rental income, recorded as a reduction to lease expense, was $0 million for each of the years ended December 31, 2017 , 2016 and 2015 . 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, 2017 are as follows: Lease Sub-Lease (in thousands) 2018 $ 2,992 $ 0 2019 2,742 0 2020 2,992 0 2021 2,992 0 2022 2,992 0 2023 and thereafter 0 0 Total $ 14,710 $ 0 Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $13 million , $11 million and $5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These expenses are recorded as “Net investment income” in the Statements of Operations and Comprehensive Income. Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 11 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other long-term investments" includes $111 million and $102 million as of December 31, 2017 and 2016 , respectively. "Net investment income" related to these ventures includes a gain of $9 million , $5 million and $0.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. (“ASTISI”) and PGIM Investments LLC (“PGIM Investments”) whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust and the Prudential Series Fund. Income received from ASTISI and PGIM Investments related to this agreement was $111 million , $112 million and $173 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These revenues are recorded as “Asset administration fees and other income” in the Statements of Operations and Comprehensive Income. Affiliated Notes Receivable Affiliated notes receivable included in "Receivables from parent and affiliates" at December 31, were as follows: Maturity Dates Interest Rates 2017 2016 (in thousands) U.S. Dollar floating rate notes 2028 2.77% - 3.12 % $ 34,268 $ 0 U.S. Dollar fixed rate notes 2027 - 2028 2.31% - 14.85 % 3,877 40,925 Total long-term notes receivable - affiliated(1) $ 38,145 $ 40,925 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above include those classified as loans, and carried at unpaid principal balance, net of any allowance for losses and those classified as available-for-sale securities and other trading account assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.2 million and $0.1 million as of December 31, 2017 and 2016 , respectively, and is included in “Other assets”. Revenues related to these loans were $0.7 million , $0.9 million and $1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are included in “Asset administration fees and other income”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within APIC and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the years ended December 31, 2017 and 2016 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Gibraltar Life Insurance Co Ltd August 2016 Sale Fixed Maturities $ 11,559 $ 11,485 $ 0 $ 48 Prudential Insurance September 2016 Sale Fixed Maturities $ 47,066 $ 36,639 $ 0 $ 6,777 Pruco Re September 2016 Transfer in Fixed Maturities $ 91,586 $ 80,732 $ (7,055 ) $ 0 Pruco Life January 2017 Sale Fixed Maturities $ 29 $ 29 $ 0 $ 0 Prudential Insurance October 2017 Sale Commercial Mortgages $ 131,953 $ 128,529 $ 0 $ 2,226 Gibraltar Universal Life Reinsurance Company October 2017 Purchase Fixed Maturities $ 113,686 $ 96,583 $ 0 $ (11,117 ) Prudential Insurance December 2017 Purchase Other long-term investments - Derivatives $ 171,363 $ 171,363 $ 0 $ 0 Prudential Insurance December 2017 Sale Fixed Maturities $ 13,793 $ 7,113 $ 0 $ 4,342 Debt Agreements The Company is authorized to borrow funds up to $9 billion from Prudential Financial and its affiliates to meet its capital and other funding needs. The debt issued during the second quarter of 2016 in the table below was assigned from affiliates as part of the Variable Annuities Recapture, as described further in Note 1 . The following table provides the breakout of the Company's short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - December 31, 2017 Amount of Notes - December 31, 2016 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 0 $ 28,101 1.89 % 6/20/2017 Prudential Insurance 4/20/2016 18,734 18,734 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 25,000 25,000 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 46,835 46,835 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 18,734 18,734 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 37,468 37,468 3.64 % 12/6/2020 Prudential Insurance 4/20/2016 93,671 93,671 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 103,039 103,039 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 93,671 93,671 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 93,671 93,671 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 28,102 28,102 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 37,468 37,468 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 93,671 93,671 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 46,835 46,835 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 30,000 30,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 50,000 50,000 3.87 % 6/28/2026 Prudential Insurance 6/28/2016 25,000 25,000 3.49 % 6/28/2026 Prudential Insurance 6/28/2016 26,000 26,000 2.59 % 6/28/2021 Prudential Insurance 6/28/2016 25,000 25,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 20,000 20,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 25,000 25,000 3.49 % 6/28/2026 Prudential Retirement Insurance & Annuity 6/28/2016 34,000 34,000 3.09 % 6/28/2023 Total Loans Payable to Affiliates $ 971,899 $ 1,000,000 The total interest expense to the Company related to loans and other payables to affiliates was $66 million , $53 million and $0.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Contributed Capital and Dividends For the year ended December 31, 2017, the Company did not receive any capital contributions. In June of 2016 , the Company received a capital contribution in the amount of $8,422 million from PAI, related to the Variable Annuities Recapture, as discussed in Note 1 . For the year ended December 31, 2015, the Company did not receive any capital contributions. In June, September and December of 2017, there was a $100 million , $200 million and $650 million return of capital, respectively, to PAI. In December of 2016, there was a $1,140 million return of capital to PAI. In June and December of 2015 , the Company paid dividends in the amounts of $270 million and $180 million , respectively, to Prudential Financial. Reinsurance with Affiliates As discussed in Note 13 , the Company participates in reinsurance transactions with certain affiliates. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 2017 (in thousands) Total revenues $ 766,669 $ (726,666 ) $ 1,949,155 $ 314,778 Total benefits and expenses 386,941 (165,242 ) 597,242 367,400 Income (loss) from operations before income taxes 379,728 (561,424 ) 1,351,913 (52,622 ) Net income (loss) $ 262,358 $ (400,583 ) $ 938,926 $ (884,205 ) 2016 Total revenues $ 201,095 $ (892,563 ) $ 719,985 $ (181,460 ) Total benefits and expenses 429,590 1,215,062 (149,250 ) 122,236 Income (loss) from operations before income taxes (228,495 ) (2,107,625 ) 869,235 (303,696 ) Net income (loss) $ (142,665 ) $ (1,316,230 ) $ 569,649 $ (200,842 ) The variability in the quarterly results for 2017 was primarily due to NPR gains/losses as a result of credit spread widening/tightening coupled with $882 million tax expense impact due to the enactment of the Tax Act of 2017 on December 22, 2017. See Note 9 for additional information. The variability in the quarterly results for 2016 was primarily due to the Variable Annuities Recapture. See Note 1 for additional information. |
Contract Withdrawal Provisions
Contract Withdrawal Provisions | 12 Months Ended |
Dec. 31, 2017 | |
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. |
Significant Accounting Polici24
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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 DAC and related amortization; value of business acquired ("VOBA") and its amortization; amortization of DSI; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments and Investment-Related Liabilities | 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 associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income”. 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 securities 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. 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 is 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 generally recognized in “Net investment income” on the ex-dividend date. Commercial mortgage and other loans consist of commercial mortgage loans and agricultural property 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, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also 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 two categories. 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 loan-to-value ratio less than 100% indicates an 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 debt service coverage ratio greater than 1.0 times indicates an 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 property loan portfolios, 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 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 of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. 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 represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. 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 accounted for using the equity method of accounting, 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, or the fair value option where elected. 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 investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), 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, funds managed similar to regulated money market funds, 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 sales 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 OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the 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 OTTI 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-then-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when the Company either (1) has the intent to sell the debt security or (2) 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 OTTI is recognized. When an OTTI of a debt security has occurred, the amount of the OTTI 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 OTTI 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 OTTI 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 OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities 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 OTTI, 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, funds managed similar to regulated money market funds, 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. |
Accrued investment income | Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. |
Deferred policy acquisition costs | Deferred policy acquisition costs are related directly to the successful acquisition of new and renewal insurance and annuity business that have been 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 DAC", 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 15 . 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. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company's projections of estimated future gross profits. Adjustments to DAC balances include: (i) annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods, (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period, and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company's estimate of total gross profits to reflect actual fund performance and market conditions. 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. See Note 4 for additional information regarding DAC. |
Deferred sales inducements represent | Deferred sales inducements represent 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. |
VOBA | VOBA represents identifiable intangible assets to which a portion of the purchase price in a business acquisition is attributed under the application of purchase accounting. 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. The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General, administrative, and other expenses.” See Note 5 for additional information regarding VOBA. |
Reinsurance recoverables and payables | Reinsurance payables include corresponding payables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13 . Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates. For additional information about these arrangements see Note 13 . |
Income taxes | Income taxes asset primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year. 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 Statements of Operations. 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 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. See Note 9 for a discussion of factors considered when evaluating the need for a valuation allowance. In December of 2017, SEC staff issued "SAB 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which allows registrants to record provisional amounts during a ‘measurement period’ not to extend beyond one year. Under the relief provided by SAB 118, a company can recognize provisional amounts when it does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the change in tax law. See Note 9 for a discussion of provisional amounts related to the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017"). 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. First, 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 a 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. |
Other assets and Other liabilities | Other assets consist primarily of accruals for asset administration fees, deferred loss on reinsurance with an affiliate and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Other liabilities consist primarily of accrued expenses, technical overdrafts, deferred gain on reinsurance with an affiliate, and payables resulting from purchases of securities that had not yet settled at the balance sheet date. Other liabilities may also include derivative instruments for which fair values are determined as described below under “Derivative Financial Instruments”. |
Separate account assets and liabilities | 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. See also “ Separate account assets” above. Separate account assets represent segregated funds that are invested for certain contractholders. 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. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. 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.” See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “ Separate account liabilities” below. |
Future policy benefits | Future policy benefits liability 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, morbidity 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 liability 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. See Note 6 for additional information regarding policyholders’ account balances. |
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase represent liabilities associated with securities repurchase and resale agreements which are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party 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 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. The majority of these transactions are with large brokerage firms and large banks. 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 to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income”; however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General, administrative and other expenses”). Income and expenses related to these transactions executed within the Company’s derivative operations are reported in “Other income”. |
Cash collateral for loaned securities | Cash collateral for loaned securities represent liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities lending 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. Cash proceeds from securities lending transactions are used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending 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 lending transactions are with large brokerage firms and large banks. Income and expenses associated with securities lending transactions used to earn spread income are reported as “Net investment income”; however, for securities lending transactions used for funding purposes the associated rebate is reported as interest expense (included in “General, administrative and other expenses”). |
Short-term and long-term debt | Short-term and long-term debt liabilities are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. 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, administrative and other expenses” in the Company’s Statements of Operations. 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 15 for additional information regarding short-term and long-term debt. |
Commitments and contingent liabilities | Commitments and 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 accruals are generally reported in “Other liabilities” |
Insurance Revenue and Expense Recognition 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.” Assumed interest rates ranged from 0.0% to 8.3% at December 31, 2017 and 2016 . 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 optional living benefits which are considered embedded derivatives. These contracts are discussed in further detail in Note 7 . Amounts received as payment for variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investments in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC, DSI and VOBA. |
Asset Administration Fee | Asset administration fees primarily include asset administration fee income received on contractholders’ account balances invested in the Advanced Series Trust, and the Prudential Series Fund (see Note 15 ), 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 ("NPR") 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 “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 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 Statements of Operations 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 Statements of Operations 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 had reinsurance agreements to transfer the risks related to certain of these benefit features to affiliates, Pruco Re and Prudential Insurance through March 31, 2016. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity optional living benefit guarantees that were previously reinsured to Pruco Re and Prudential Insurance. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance, under a coinsurance and modified coinsurance agreement. See Note 1 and 13 for additional information. 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 “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.” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of accounting standards updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. There have been no ASU adopted during the year ended December 31, 2017 . ASU issued but not yet adopted as of December 31, 2017 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard. January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU will not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. ASU 2016-01, The ASU revises an entity’s accounting related to the recognition and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU requires equity investments, except for those accounted for using the equity method, to be measured at fair value with changes in fair value recognized in net income. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment to retained earnings. Adoption of this guidance will result in 1) the reclassification of net unrealized gains on equity securities currently classified as available-for-sale from accumulated other comprehensive income to retained earnings and 2) adjustment of the basis of equity investments currently accounted for using the cost method to fair value with the embedded net unrealized gain included in retained earnings. The cumulative effect of adoption is expected to increase retained earnings by $0.3 million and total equity by $0.3 million after giving effect to offsetting items. See table below for the impact to the line items in the Statements of Financial Position. There will be no impact to net income on the adoption date. Subsequent to the adoption date, the change in fair value of these equity investments will be reported in net income. Summary of ASU 2016-01 Transition Impacts on the Statements of Financial Position upon Adoption on January 1, 2018 (in thousands) Increase / (Decrease) Other long-term investments $ 423 Total assets $ 423 Policyholders’ dividends $ 0 Income taxes 89 Total liabilities 89 Accumulated other comprehensive income (loss) (3 ) Retained earnings 337 Total equity 334 Total liabilities and equity $ 423 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13, This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current OTTI standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method which will The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. ASU 2016-15, This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). Adoption of the ASU will not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). Adoption of the ASU will not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-08, This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. January 1, 2019 using the modified The Company is currently assessing the impact of the ASU on the Company’s ASU 2017-12, This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. January 1, 2019 using the modified The Company is currently assessing the impact of the ASU on the Company’s ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017. January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized. The Company is currently assessing the impact of the ASU on the Company’s Financial Statements and Notes to the Financial Statements. |
Business and Basis of Present25
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Reinsurance | The financial statement impacts of these transactions were as follows: Affected Financial Statement Lines Only Interim Statement of Financial Position Balance as of March 31, 2016 Impacts of Recapture Impacts of Reinsurance Total (in millions) ASSETS Total investments(1) $ 3,343 $ 3,084 $ 10,624 $ 17,051 Cash and cash equivalents 106 11 1,024 1,141 Deferred policy acquisition costs 537 0 3,134 3,671 Reinsurance recoverables 3,776 (3,401 ) 320 695 Deferred sales inducements 327 0 500 827 Income tax receivable(2) 0 115 2,441 2,556 TOTAL ASSETS 46,694 (191 ) 18,043 64,546 LIABILITIES AND EQUITY LIABILITIES Policyholders' account balances $ 2,422 $ 0 $ 2,387 $ 4,809 Future policy benefits 4,295 0 6,972 11,267 Short-term and long-term debt(3) 0 0 1,268 1,268 Other liabilities 114 0 630 744 TOTAL LIABILITIES 45,472 0 11,257 56,729 EQUITY Additional paid-in capital(4) 901 0 8,422 9,323 Retained earnings 254 (191 ) (1,600 ) (1,537 ) Accumulated other comprehensive income 64 0 (36 ) 28 TOTAL EQUITY 1,222 (191 ) 6,786 7,817 TOTAL LIABILITIES AND EQUITY 46,694 (191 ) 18,043 64,546 Significant Non-Cash Transactions (1) The increase in total investments includes non-cash activities of $ 3.1 billion for assets received related to the recapture transaction with Pruco Re, $ 7.1 billion for assets received related to the reinsurance transaction with Pruco Life and $ 3.6 billion related to non-cash capital contributions from PAI. (2) Prudential Financial contributed current tax receivables through PAI of $ 1.5 billion to the Company as part of the Variable Annuities Recapture. (3) The Company incurred ceding commissions of $ 3.6 billion , of which $ 1.1 billion was in the form of reassignment of debt from Pruco Life. (4) The increase in additional paid-in capital ("APIC") includes non-cash capital contributions from PAI of $ 3.6 billion in invested assets, $ 1.5 billion of current tax receivables and $ 2.5 billion funding for the ceding commission for the reinsurance transaction with Pruco Life. Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of the Variable Annuities Recapture Impacts of Recapture Impacts of Reinsurance Total Impacts (in millions) REVENUES Premiums $ 0 $ 832 $ 832 Realized investment gains (losses), net (305 ) (2,561 ) (2,866 ) TOTAL REVENUES (305 ) (1,729 ) (2,034 ) BENEFITS AND EXPENSES Policyholders' benefits 0 522 522 General, administrative and other expenses 0 310 310 TOTAL BENEFITS AND EXPENSES 0 832 832 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (305 ) (2,561 ) (2,866 ) Income tax expense (benefit) (114 ) (961 ) (1,075 ) NET INCOME (LOSS) $ (191 ) $ (1,600 ) $ (1,791 ) The following table summarizes the asset transfers related to the Variable Annuities Recapture between the Company and its affiliates. Affiliate Period Transaction Security Type Fair Value Book Value APIC Increase/ (Decrease) Realized Investment Gain/(Loss), Net (in millions) Pruco Re Apr - June 2016 Purchase Derivatives $ 3,084 $ 3,084 $ 0 $ 0 Pruco Life Apr - June 2016 Purchase Fixed Maturities, Trading Account Assets, Commercial Mortgages, Derivatives, JV/LP Investments and Short-Term Investments $ 6,994 $ 6,994 $ 0 $ 0 PAI Apr - June 2016 Contributed Capital Fixed Maturities, Trading Account Assets and Derivatives $ 3,517 $ 3,517 $ 3,517 $ 0 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Fixed Maturities and Equity Securities, Available-for-sale Securities | The following tables set forth information relating to fixed maturities and equity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2017 Amortized Cost or 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 $ 5,059,168 $ 9,109 $ 236,627 $ 4,831,650 $ 0 Obligations of U.S. states and their political subdivisions 102,709 2,089 158 104,640 0 Foreign government bonds 133,859 6,878 432 140,305 0 Public utilities 567,829 31,414 2,058 597,185 0 Redeemable preferred stock 29,504 615 59 30,060 0 All other U.S. public corporate securities 1,473,761 77,379 3,416 1,547,724 0 All other U.S. private corporate securities 938,144 35,327 3,795 969,676 0 All other foreign public corporate securities 194,201 5,663 918 198,946 0 All other foreign private corporate securities 638,785 38,030 3,231 673,584 0 Asset-backed securities(1) 341,277 4,438 128 345,587 (17 ) Commercial mortgage-backed securities 502,695 7,334 4,345 505,684 0 Residential mortgage-backed securities(2) 163,334 2,950 539 165,745 (4 ) Total fixed maturities, available-for-sale $ 10,145,266 $ 221,226 $ 255,706 $ 10,110,786 $ (21 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 0 $ 0 $ 0 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 14 $ 4 $ 0 $ 18 (1) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $12.3 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, 2016 Amortized Cost or 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 $ 4,998,652 $ 2,487 $ 536,114 $ 4,465,025 $ 0 Obligations of U.S. states and their political subdivisions 92,107 566 2,699 89,974 0 Foreign government bonds 64,352 5,404 370 69,386 0 Public utilities 448,349 13,155 10,348 451,156 0 Redeemable preferred stock 29,581 288 633 29,236 0 All other U.S. public corporate securities 1,619,814 73,819 10,153 1,683,480 (771 ) All other U.S. private corporate securities 951,324 27,234 13,810 964,748 (694 ) All other foreign public corporate securities 183,253 5,410 1,022 187,641 0 All other foreign private corporate securities 501,140 5,349 20,450 486,039 0 Asset-backed securities(1) 248,547 3,227 465 251,309 0 Commercial mortgage-backed securities 484,673 6,793 6,753 484,713 0 Residential mortgage-backed securities(2) 196,506 4,063 513 200,056 (5 ) Total fixed maturities, available-for-sale $ 9,818,298 $ 147,795 $ 603,330 $ 9,362,763 $ (1,470 ) Equity securities, available-for-sale: Common stocks: Industrial, miscellaneous & other $ 351 $ 0 $ 351 $ 0 Mutual funds 14 4 0 18 Total equity securities, available-for-sale $ 365 $ 4 $ 351 $ 18 (1) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures | The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity and equity securities had been in a continuous unrealized loss position, as of the dates indicated: December 31, 2017 Less than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 13,174 $ 23 $ 4,550,472 $ 236,604 $ 4,563,646 $ 236,627 Obligations of U.S. states and their political subdivisions 6,669 26 13,311 132 19,980 158 Foreign government bonds 37,466 428 143 4 37,609 432 Public utilities 84,260 1,357 22,420 701 106,680 2,058 Redeemable preferred stock 10,522 59 0 0 10,522 59 All other U.S. public corporate securities 206,988 1,034 118,002 2,382 324,990 3,416 All other U.S. private corporate securities 221,753 2,173 83,365 1,622 305,118 3,795 All other foreign public corporate securities 66,004 578 23,186 340 89,190 918 All other foreign private corporate securities 78,200 536 89,675 2,695 167,875 3,231 Asset-backed securities 30,234 128 0 0 30,234 128 Commercial mortgage-backed securities 113,423 1,225 129,458 3,120 242,881 4,345 Residential mortgage-backed securities 26,916 166 24,833 373 51,749 539 Total fixed maturities, available-for-sale $ 895,609 $ 7,733 $ 5,054,865 $ 247,973 $ 5,950,474 $ 255,706 Equity securities, available-for-sale $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 December 31, 2016 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 $ 4,254,477 $ 536,114 $ 0 $ 0 $ 4,254,477 $ 536,114 Obligations of U.S. states and their political subdivisions 73,885 2,699 0 0 73,885 2,699 Foreign government bonds 32,107 370 0 0 32,107 370 Public utilities 240,041 8,019 17,097 2,329 257,138 10,348 Redeemable preferred stock 12,948 633 0 0 12,948 633 All other U.S. public corporate securities 530,904 8,798 12,981 1,355 543,885 10,153 All other U.S. private corporate securities 453,976 13,632 12,304 178 466,280 13,810 All other foreign public corporate securities 89,962 1,016 9,994 6 99,956 1,022 All other foreign private corporate securities 247,111 11,661 58,214 8,789 305,325 20,450 Asset-backed securities 67,246 439 16,489 26 83,735 465 Commercial mortgage-backed securities 293,651 6,753 0 0 293,651 6,753 Residential mortgage-backed securities 68,283 513 0 0 68,283 513 Total fixed maturities, available-for-sale $ 6,364,591 $ 590,647 $ 127,079 $ 12,683 $ 6,491,670 $ 603,330 Equity securities, available-for-sale $ 0 $ 351 $ 0 $ 0 $ 0 $ 351 |
Investments Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: December 31, 2017 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 253,164 $ 253,552 Due after one year through five years 1,077,651 1,099,278 Due after five years through ten years 1,704,257 1,783,306 Due after ten years 6,102,888 5,957,634 Asset-backed securities 341,277 345,587 Commercial mortgage-backed securities 502,695 505,684 Residential mortgage-backed securities 163,334 165,745 Total fixed maturities, available-for-sale $ 10,145,266 $ 10,110,786 |
Sources of Fixed Maturity and Equity Security Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth 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, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities, available-for-sale Proceeds from sales(1) $ 517,743 $ 3,577,346 $ 33,604 Proceeds from maturities/prepayments 630,140 495,465 453,016 Gross investment gains from sales and maturities 8,992 98,095 5,788 Gross investment losses from sales and maturities (3,047 ) (5,412 ) (937 ) OTTI recognized in earnings(2) (9,122 ) (6,499 ) (20 ) (1) Includes $2.5 million , $0.6 million and $(0.0) million of non-cash related proceeds for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Excludes the portion of OTTI recorded in OCI representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company for which a portion of the OTTI loss was recognized in OCI and the corresponding changes in such amounts, for the periods indicated: Years Ended December 31, 2017 2016 (in thousands) Credit loss impairments: Balance, beginning of period $ 1,325 $ 86 New credit loss impairments 366 1,791 Additional credit loss impairments on securities previously impaired 606 0 Increases due to the passage of time on previously recorded credit losses 10 25 Reductions for securities which matured, paid down, prepaid or were sold during the period (21 ) (1,170 ) Reductions for securities impaired to fair value during the period(1) (1,481 ) 0 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (13 ) (14 ) Assets transferred to parent and affiliates 0 607 Balance, end of period $ 792 $ 1,325 (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost. |
Trading Account Assets Disclosure | The following table sets forth the composition of “Trading account assets,” as of the dates indicated: December 31, 2017 December 31, 2016 Amortized Cost or Cost Fair Value Amortized Cost or Cost Fair Value (in thousands) Fixed maturities $ 161,393 $ 166,360 $ 147,057 $ 139,513 Equity securities 11,600 15,357 7,551 10,358 Total trading account assets $ 172,993 $ 181,717 $ 154,608 $ 149,871 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2017 December 31, 2016 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 348,718 25.0 % $ 277,296 22.5 % Hospitality 3,782 0.3 3,925 0.3 Industrial 327,987 23.6 263,705 21.4 Office 294,072 21.2 294,304 23.8 Other 139,362 10.0 87,465 7.1 Retail 216,544 15.6 223,252 18.1 Total commercial mortgage loans 1,330,465 95.7 1,149,947 93.2 Agricultural property loans 59,197 4.3 84,235 6.8 Total commercial mortgage and agricultural property loans by property type 1,389,662 100.0 % 1,234,182 100.0 % Valuation allowance (2,650 ) (2,289 ) Total commercial mortgage and other loans $ 1,387,012 $ 1,231,893 |
Allowance for Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 2,267 $ 22 $ 2,289 Addition to (release of) allowance for losses 349 12 361 Charge-offs, net of recoveries 0 0 0 Total ending balance $ 2,616 $ 34 $ 2,650 December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 622 $ 21 $ 643 Addition to (release of) allowance for losses 1,645 1 1,646 Charge-offs, net of recoveries 0 0 0 Total ending balance $ 2,267 $ 22 $ 2,289 |
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, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,616 34 2,650 Total ending balance(1) $ 2,616 $ 34 $ 2,650 Recorded investment(2): Individually evaluated for impairment $ 1,571 $ 4,865 $ 6,436 Collectively evaluated for impairment 1,328,894 54,332 1,383,226 Total ending balance(1) $ 1,330,465 $ 59,197 $ 1,389,662 (1) As of December 31, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,267 22 2,289 Total ending balance(1) $ 2,267 $ 22 $ 2,289 Recorded investment(2): Individually evaluated for impairment $ 1,715 $ 0 $ 1,715 Collectively evaluated for impairment 1,148,232 84,235 1,232,467 Total ending balance(1) $ 1,149,947 $ 84,235 $ 1,234,182 (1) As of December 31, 2016 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. |
Credit Quality Indicators | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans, based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,338 $ 14,426 $ 4,566 $ 686,330 60%-69.99% 503,922 1,329 0 505,251 70%-79.99% 182,368 13,281 0 195,649 80% or greater 1,387 0 1,045 2,432 Total commercial mortgage and agricultural property loans $ 1,355,015 $ 29,036 $ 5,611 $ 1,389,662 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 667,051 $ 16,921 $ 4,610 $ 688,582 60%-69.99% 406,728 0 3,817 410,545 70%-79.99% 108,770 15,493 0 124,263 80% or greater 9,725 0 1,067 10,792 Total commercial mortgage and agricultural property loans $ 1,192,274 $ 32,414 $ 9,494 $ 1,234,182 |
Past Due Financing Receivables | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: December 31, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,330,465 $ 0 $ 0 $ 0 $ 1,330,465 $ 0 Agricultural property loans 59,197 0 0 0 59,197 0 Total $ 1,389,662 $ 0 $ 0 $ 0 $ 1,389,662 $ 0 (1) As of December 31, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 . December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,149,947 $ 0 $ 0 $ 0 $ 1,149,947 $ 0 Agricultural property loans 84,235 0 0 0 84,235 0 Total $ 1,234,182 $ 0 $ 0 $ 0 $ 1,234,182 $ 0 (1) As of December 31, 2016 , there were no loans in this category accruing interest. (2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 . |
Other Long Term Investments | The following table sets forth the composition of “Other long-term investments,” as of the dates indicated: December 31, 2017 2016 (in thousands) Joint ventures and limited partnerships: Private equity $ 29,301 $ 30,513 Hedge funds 106,776 98,554 Real estate-related 48,555 109,043 Total joint ventures and limited partnerships 184,632 238,110 Derivatives 151,179 313,821 Total other long-term investments $ 335,811 $ 551,931 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities, available-for-sale $ 332,148 $ 249,496 $ 115,998 Trading account assets 4,927 3,473 349 Commercial mortgage and other loans 48,598 40,258 22,696 Policy loans 1,069 444 794 Short-term investments and cash equivalents 31,505 26,831 396 Other long-term investments 20,626 29,160 4,638 Gross investment income 438,873 349,662 144,871 Less: investment expenses (16,064 ) (11,292 ) (5,441 ) Net investment income $ 422,809 $ 338,370 $ 139,430 |
Realized Gain (Loss) on Investments | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2017 2016 2015 (in thousands) Fixed maturities $ (3,177 ) $ 86,184 $ 4,831 Commercial mortgage and other loans (840 ) (2,326 ) (161 ) Derivatives(1) (801,429 ) (3,526,514 ) 1,381 Other long-term investments (39 ) (648 ) 1 Short-term investments and cash equivalents 85 544 0 Realized investment gains (losses), net $ (805,400 ) $ (3,442,760 ) $ 6,052 (1) Includes the hedged items offset in qualifying fair value hedge accounting relationships. |
Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2017 2016 2015 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 12,311 $ (1,261 ) $ 9 Fixed maturity securities, available-for-sale—all other (46,791 ) (454,274 ) 90,637 Equity securities, available-for-sale 4 (347 ) 3 Derivatives designated as cash flow hedges(1) (25,851 ) 11,745 14,847 Affiliated notes 829 1,181 1,660 Other investments 86 (619 ) 304 Net unrealized gains (losses) on investments $ (59,412 ) $ (443,575 ) $ 107,460 (1) See Note 11 for more information on cash flow hedges. |
Schedule of Securities Financing Transactions | The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: December 31, 2017 December 31, 2016 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) (in thousands) Foreign government bonds $ 10,505 $ 0 $ 10,505 $ 10,712 $ 0 $ 10,712 U.S. public corporate securities 6,878 0 6,878 12,638 0 12,638 Total cash collateral for loaned securities(1) $ 17,383 $ 0 $ 17,383 $ 23,350 $ 0 $ 23,350 (1) The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Securities Pledged | The following table sets forth the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: December 31, 2017 2016 (in thousands) Pledged collateral: Fixed maturity securities, available-for-sale $ 16,825 $ 21,908 Total securities pledged $ 16,825 $ 21,908 Liabilities supported by pledged collateral: Cash collateral for loaned securities $ 17,383 $ 23,350 Total liabilities supported by pledged collateral $ 17,383 $ 23,350 |
Deferred Policy Acquisition C27
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 (in thousands) Balance, beginning of year $ 4,344,361 $ 749,302 $ 1,114,431 Capitalization of commissions, sales and issue expenses 277,586 269,679 1,535 Amortization-Impact of assumption and experience unlocking and true-ups 288,974 226,204 33,113 Amortization-All other (275,028 ) (46,388 ) (342,265 ) Changes in unrealized investment gains and losses (39,328 ) 18,772 16,352 Ceded DAC upon reinsurance agreement with Prudential Insurance(1)(2) 0 (7,480 ) (73,864 ) Assumed DAC upon reinsurance agreement with Pruco Life(1) 0 3,134,272 0 Balance, end of year $ 4,596,565 $ 4,344,361 $ 749,302 (1) See Note 1 and Note 13 for additional information. (2) Represents a $7.5 million true-up in 2016 to the ceded DAC upon reinsurance agreement with Prudential Insurance in 2015 . |
Value of Business Acquired (Tab
Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Present Value of Future Insurance Profits [Abstract] | |
Schedule Of Present Value Of Future Insurance Profits | The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2017 2016 2015 (in thousands) Balance, beginning of year $ 30,287 $ 33,640 $ 39,738 Amortization-Impact of assumption and experience unlocking and true-ups (1) 10,035 2,372 3,412 Amortization-All other (1) (7,422 ) (8,176 ) (10,477 ) Interest (2) 2,001 1,939 2,436 Change in unrealized investment gains and losses 208 512 1,163 Ceded VOBA upon reinsurance agreement with Prudential Insurance (3) 0 0 (2,632 ) Balance, end of year $ 35,109 $ 30,287 $ 33,640 (1) The weighted average remaining expected life of VOBA was approximately 5.47 years as of December 31, 2017 . (2) The interest accrual rate for the VOBA related to the businesses acquired was 5.96% , 6.00% and 6.05% for the years ended December 31, 2017 , 2016 and 2015 . (3) See Note 1 for additional information. |
Expected Amortization Expense of Ending Value of Future Insurance Profits | The following table provides estimated future amortization, net of interest, for the periods indicated: 2018 2019 2020 2021 2022 (in thousands) Estimated future VOBA amortization $ 5,867 $ 4,997 $ 4,258 $ 3,620 $ 3,077 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Future Policy Benefits [Abstract] | |
Schedule of Liability for Future Policy Benefits and Policyholders' Account Balances | Future policy benefits at December 31 for the years indicated are as follows: 2017 2016 (in thousands) Life insurance – domestic $ 800 $ 964 Individual and group annuities and supplementary contracts(2) 970,936 446,318 Other contract liabilities(2) 8,160,833 1,267,739 Individual and group annuities assumed upon reinsurance agreement with Pruco Life(1) 0 528,210 Other contract liabilities assumed upon reinsurance agreement with Pruco Life(1) 0 6,442,965 Total future policy benefits $ 9,132,569 $ 8,686,196 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. Policyholders’ account balances at December 31 for the years indicated are as follows: 2017 2016 (in thousands) Interest-sensitive life contracts $ 15,301 $ 15,666 Individual annuities(2) 4,162,138 1,441,126 Guaranteed interest accounts 668,713 893,419 Assumed policyholders' liabilities upon reinsurance agreement with Pruco Life(1) 0 2,386,678 Total policyholders’ account balances $ 4,846,152 $ 4,736,889 (1) See Note 1 for additional information. (2) Includes assumed reinsurance business from Pruco Life. |
Certain Long-Duration Contrac30
Certain Long-Duration Contracts With Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2017 and 2016 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2017 December 31, 2016 In the Event of Death(2) At Annuitization/ Accumulation(1)(2) In the Event of Death(2) At Annuitization/ Accumulation (1)(2) Annuity Contracts (in thousands) Return of net deposits Account value $ 119,182,143 N/A $ 110,194,439 N/A Net amount at risk $ 274,617 N/A $ 463,423 N/A Average attained age of contractholders 66 years N/A 66 years N/A Minimum return or contract value Account value $ 25,835,100 $ 129,630,456 $ 24,725,084 $ 120,237,955 Net amount at risk $ 2,161,133 $ 3,225,700 $ 3,098,018 $ 5,041,214 Average attained age of contractholders 69 years 67 years 69 years 66 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Includes income and withdrawal benefits. (2) Includes assumed reinsurance business from Pruco Life. |
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, 2017(1) December 31, 2016(1) (in thousands) Equity funds $ 83,556,771 $ 77,133,820 Bond funds 53,027,241 44,025,867 Money market funds 3,726,553 9,099,337 Total $ 140,310,565 $ 130,259,024 (1) Amounts include assumed reinsurance business from Pruco Life. |
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 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 within “Future policy benefits.” 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 Company maintains 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 at 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 ) Change in unrealized investment gains and losses (3,663 ) 0 (113 ) (3,776 ) Balance at December 31, 2015 265,877 3,134,077 13,864 3,413,818 Incurred guarantee benefits(1)(2) 43,185 (1,979,215 ) (3,683 ) (1,939,713 ) Paid guarantee benefits(2) (55,604 ) 0 (2,209 ) (57,813 ) Change in unrealized investment gains and losses(2) (5,206 ) 0 (209 ) (5,415 ) Assumed guarantees upon reinsurance agreement with Pruco Life 389,067 6,552,471 30,130 6,971,668 Balance at December 31, 2016 637,319 7,707,333 37,893 8,382,545 Incurred guarantee benefits(1)(2) 29,605 444,569 (11,686 ) 462,488 Paid guarantee benefits(2) (57,053 ) 0 (3,798 ) (60,851 ) Change in unrealized investment gains and losses(2) 12,931 0 117 13,048 Balance at December 31, 2017 $ 622,802 $ 8,151,902 $ 22,526 $ 8,797,230 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Amounts include assumed reinsurance business from Pruco Life. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’account balances,” are as follows: Sales Inducements (in thousands) Balance at 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 agreement with Prudential Insurance(1) (39,253 ) Balance at December 31, 2015 452,752 Capitalization 1,805 Amortization - Impact of assumption and experience unlocking and true-ups 101,424 Amortization - All other (81,603 ) Change in unrealized investment gains and losses 4,915 Assumed DSI upon reinsurance agreement with Pruco Life(1) 499,530 Balance at December 31, 2016 978,823 Capitalization 1,551 Amortization - Impact of assumption and experience unlocking and true-ups 145,141 Amortization - All other (94,014 ) Change in unrealized investment gains and losses (10,715 ) Balance at December 31, 2017 $ 1,020,786 (1) See Note 1 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Year Ended December 31, 2017 2016 2015 (in thousands) Current tax expense (benefit): U.S. federal $ 501,088 $ 2,524,458 $ 76,175 State and local 1,349 0 0 Total 502,437 2,524,458 76,175 Deferred tax expense (benefit): U.S. federal 698,662 (3,204,951 ) (84,460 ) State and local 0 0 0 Total 698,662 (3,204,951 ) (84,460 ) Total income tax expense (benefit) 1,201,099 (680,493 ) (8,285 ) Total income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 98,644 (194,446 ) (20,708 ) Additional paid-in capital 0 (9,531 ) 0 Total income tax expense (benefit) $ 1,299,743 $ (884,470 ) $ (28,993 ) |
Schedule of Income Before Income Tax, Domestic and Foreign | Year Ended December 31, 2017 2016 2015 (in thousands) Expected federal income tax expense (benefit) $ 391,158 $ (619,704 ) $ 57,727 Non-taxable investment income (46,625 ) (49,630 ) (56,614 ) Tax credits (10,358 ) (10,507 ) (9,389 ) Changes in tax law 882,175 0 0 Other (15,251 ) (652 ) (9 ) Reported income tax expense (benefit) $ 1,201,099 $ (680,493 ) $ (8,285 ) Effective tax rate 107.5 % 38.4 % (5.0 )% |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2017 2016 (in thousands) Deferred tax assets: Insurance reserves $ 2,064,659 $ 3,369,384 Investments 404,703 418,128 Net unrealized loss on securities 7,048 159,362 Other 205 440 Deferred tax assets 2,476,615 3,947,314 Deferred tax liabilities: VOBA and deferred policy acquisition cost 960,841 1,506,010 Deferred sales inducements 214,365 342,588 Deferred tax liabilities 1,175,206 1,848,598 Net deferred tax asset (liability) $ 1,301,409 $ 2,098,716 |
Fair Value of Assets and Liab32
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 4,826,413 $ 5,237 $ 0 $ 4,831,650 Obligations of U.S. states and their political subdivisions 0 104,640 0 0 104,640 Foreign government bonds 0 140,305 0 0 140,305 U.S. corporate public securities 0 1,806,888 1,562 0 1,808,450 U.S. corporate private securities 0 1,148,536 59,408 0 1,207,944 Foreign corporate public securities 0 229,006 215 0 229,221 Foreign corporate private securities 0 737,539 34,021 0 771,560 Asset-backed securities(4) 0 160,229 185,358 0 345,587 Commercial mortgage-backed securities 0 505,684 0 0 505,684 Residential mortgage-backed securities 0 165,745 0 0 165,745 Subtotal 0 9,824,985 285,801 0 10,110,786 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 123,820 0 0 123,820 Corporate securities 0 42,540 0 0 42,540 Asset-backed securities(4) 0 0 0 0 0 Equity securities 5,599 0 9,758 0 15,357 Subtotal 5,599 166,360 9,758 0 181,717 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 448,712 262,272 87 0 711,071 Cash equivalents 0 1,146,466 0 0 1,146,466 Other long-term investments(5) 10,738 5,059,779 147 (4,919,486 ) 151,178 Reinsurance recoverables 0 0 244,006 0 244,006 Receivables from parent and affiliates 0 38,145 0 0 38,145 Subtotal excluding separate account assets 465,049 16,498,025 539,799 (4,919,486 ) 12,583,387 Separate account assets(2) 0 37,990,547 0 0 37,990,547 Total assets $ 465,049 $ 54,488,572 $ 539,799 $ (4,919,486 ) $ 50,573,934 Future policy benefits(3) $ 0 $ 0 $ 8,151,902 $ 0 $ 8,151,902 Payables to parent and affiliates 0 1,941,403 0 (1,941,403 ) 0 Other liabilities 0 0 0 0 0 Total liabilities $ 0 $ 1,941,403 $ 8,151,902 $ (1,941,403 ) $ 8,151,902 As of December 31, 2016 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 $ 4,465,025 $ 0 $ 0 $ 4,465,025 Obligations of U.S. states and their political subdivisions 0 89,974 0 0 89,974 Foreign government bonds 0 69,299 87 0 69,386 U.S. corporate public securities 0 1,909,440 15,598 0 1,925,038 U.S. corporate private securities 0 997,004 124,864 0 1,121,868 Foreign corporate public securities 0 217,363 0 0 217,363 Foreign corporate private securities 0 526,504 11,527 0 538,031 Asset-backed securities(4) 0 219,574 31,735 0 251,309 Commercial mortgage-backed securities 0 484,713 0 0 484,713 Residential mortgage-backed securities 0 200,056 0 0 200,056 Subtotal 0 9,178,952 183,811 0 9,362,763 Trading account assets: U.S Treasury securities and obligations of U.S. government authorities and agencies 0 116,184 0 0 116,184 Corporate securities 0 21,632 0 0 21,632 Asset-backed securities(4) 0 1,697 0 0 1,697 Equity securities 5,494 0 4,864 0 10,358 Subtotal 5,494 139,513 4,864 0 149,871 Equity securities, available-for-sale 0 18 0 0 18 Short-term investments 519,000 392,700 450 0 912,150 Cash equivalents 738,449 847,329 375 0 1,586,153 Other long-term investments(5) 23,967 4,872,392 0 (4,582,540 ) 313,819 Reinsurance recoverables 0 0 240,091 0 240,091 Receivables from parent and affiliates 0 6,962 33,962 0 40,924 Subtotal excluding separate account assets 1,286,910 15,437,866 463,553 (4,582,540 ) 12,605,789 Separate account assets(2) 0 37,429,739 0 0 37,429,739 Total assets $ 1,286,910 $ 52,867,605 $ 463,553 $ (4,582,540 ) $ 50,035,528 Future policy benefits(3) $ 0 $ 0 $ 7,707,333 $ 0 $ 7,707,333 Payables to parent and affiliates 0 1,654,360 0 (1,654,360 ) 0 Other liabilities $ 5,051 $ 0 $ 0 $ 0 $ 5,051 Total liabilities $ 5,051 $ 1,654,360 $ 7,707,333 $ (1,654,360 ) $ 7,712,384 (1) “Netting” amounts represent cash collateral of $2,978 million and $2,928 million as of December 31, 2017 and 2016 , 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, 2017 , the net embedded derivative liability position of $8,152 million includes $819 million of embedded derivatives in an asset position and $8,971 million of embedded derivatives in a liability position. As of December 31, 2016 , the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position. (4) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2017 and 2016 , the fair values of these investments were $ 0.3 million and $ 0.4 million . |
Fair Value Inputs, Assets, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2017 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 $ 22,215 Discounted cash flow Discount rate 5.06 % 22.23 % 8.57 % Decrease Reinsurance recoverables $ 244,006 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 8,151,902 Discounted cash flow Lapse rate(3) 1 % 12 % Decrease Spread over LIBOR(4) 0.12 % 1.10 % Decrease Utilization rate(5) 52 % 97 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 13 % 24 % Increase As of December 31, 2016 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 $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease Spread over LIBOR(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Future policy benefits primarily represent general account liabilities for the living benefit guarantees 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) The spread over LIBOR swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (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 vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2017 and 2016 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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 | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of December 31, 2017 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 $ 22,215 Discounted cash flow Discount rate 5.06 % 22.23 % 8.57 % Decrease Reinsurance recoverables $ 244,006 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 8,151,902 Discounted cash flow Lapse rate(3) 1 % 12 % Decrease Spread over LIBOR(4) 0.12 % 1.10 % Decrease Utilization rate(5) 52 % 97 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 13 % 24 % Increase As of December 31, 2016 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 $ 136,391 Discounted cash flow Discount rate 3.24 % 17.12 % 4.71 % Decrease Liquidation Liquidation Value 98.21 % 98.68 % 98.64 % Increase Reinsurance recoverables $ 240,091 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(2) $ 7,707,333 Discounted cash flow Lapse rate(3) 0 % 13 % Decrease Spread over LIBOR(4) 0.25 % 1.50 % Decrease Utilization rate(5) 52 % 96 % Increase Withdrawal rate See table footnote (6) below Mortality rate(7) 0 % 14 % Decrease Equity volatility curve 16 % 25 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Future policy benefits primarily represent general account liabilities for the living benefit guarantees 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) The spread over LIBOR swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (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 vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2017 and 2016 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (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 | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. Year Ended December 31, 2017 Fixed Maturities Available-For-Sale U.S. Government Foreign Government Corporate Securities(5) Asset-Backed Securities(4) (in thousands) Fair value, beginning of period $ 0 $ 87 $ 151,989 $ 31,735 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (6,877 ) 576 Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 (3,627 ) 217 Net investment income 0 0 7,874 183 Purchases 4,264 0 17,920 237,469 Sales 0 0 (15,283 ) (5,613 ) Issuances 0 0 0 0 Settlements 0 0 (111,675 ) (55,184 ) Transfers into Level 3(1) 0 0 64,412 106,034 Transfers out of Level 3(1) 0 (87 ) (5,370 ) (130,059 ) Other(3) 973 0 (4,157 ) 0 Fair Value, end of period $ 5,237 $ 0 $ 95,206 $ 185,358 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (6,498 ) $ (8 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2017 Trading Account Assets Asset-Backed Securities(4) Equity Securities Equity Securities, Available- for-Sale Short-term Investments Cash Equivalents (in thousands) Fair value, beginning of period $ 0 $ 4,864 $ 0 $ 450 $ 375 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Asset management fees and other income 0 689 0 0 0 Included in other comprehensive income (loss) 0 0 351 0 0 Net investment income 0 0 0 0 0 Purchases 0 0 0 94 0 Sales 0 0 0 (5 ) 0 Issuances 0 0 0 0 0 Settlements 0 0 0 (2 ) 0 Transfers into Level 3(1) 0 0 0 0 0 Transfers out of Level 3(1) 0 0 0 0 0 Other(3) 0 4,205 (351 ) (450 ) (375 ) Fair Value, end of period $ 0 $ 9,758 $ 0 $ 87 $ 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 $ 338 $ 0 $ 0 $ 0 Year Ended December 31, 2017 Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair value, beginning of period $ 0 $ 240,091 $ 33,962 $ (7,707,333 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (7 ) (18,240 ) 0 552,047 Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 0 19,416 0 0 Sales 0 0 0 0 Issuances 0 0 0 (996,616 ) Settlements 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 Transfers out of Level 3(1) 0 0 (33,962 ) 0 Other(3) 154 2,739 0 0 Fair value, end of period $ 147 $ 244,006 $ 0 $ (8,151,902 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ (7 ) $ (10,303 ) $ 0 $ 307,529 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2016 Fixed Maturities Available-For-Sale Foreign Government Corporate Securities(5) Asset-Backed Securities(4) (in thousands) Fair value, beginning of period $ 0 $ 127,308 $ 46,493 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (3,988 ) (26 ) Asset management fees and other income 0 0 0 Included in other comprehensive income (loss) (8 ) 2,313 161 Net investment income 0 5,835 139 Purchases 0 22,871 72,939 Sales 0 (105 ) (6,739 ) Issuances 0 0 0 Settlements 0 (9,085 ) (540 ) Transfers into Level 3(1) 95 19,694 34,984 Transfers out of Level 3(1) 0 (12,854 ) (115,676 ) Other 0 0 0 Fair value, end of period $ 87 $ 151,989 $ 31,735 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ (4,917 ) $ (26 ) Asset management fees and other income $ 0 $ 0 $ 0 Year Ended December 31, 2016 Trading Account Assets Asset-Backed Securities(4) Equity Securities Equity Securities, Available-For-Sale Short-Term Investments Cash Equivalents (in thousands) Fair value, beginning of period $ 0 $ 0 $ 0 $ 450 $ 225 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Asset management fees and other income (161 ) (123 ) 0 0 0 Included in other comprehensive income (loss) 0 0 (351 ) 0 0 Net investment income 0 0 0 0 0 Purchases 0 3,422 351 0 150 Sales 0 0 0 0 0 Issuances 0 0 0 0 0 Settlements (2,634 ) 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 0 Transfers out of Level 3(1) 0 0 0 0 0 Other(3) 2,795 1,565 0 0 0 Fair value, end of period $ 0 $ 4,864 $ 0 $ 450 $ 375 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 $ (123 ) $ 0 $ 0 $ 0 Year Ended December 31, 2016 Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Fair value, beginning of period $ 1,565 $ 3,012,653 $ 7,664 $ (3,134,077 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) 0 (2,852,588 ) (13 ) (3,791,759 ) Asset management fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 50 0 Net investment income 0 0 0 0 Purchases 0 70,448 34,000 0 Sales 0 0 (1,987 ) 0 Issuances 0 0 0 (781,497 ) Settlements 0 0 0 0 Transfers into Level 3(1) 0 0 0 0 Transfers out of Level 3(1) 0 0 (2,957 ) 0 Other(3) (1,565 ) 9,578 (2,795 ) 0 Fair value, end of period $ 0 $ 240,091 $ 33,962 $ (7,707,333 ) Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 59,501 $ 0 $ (3,740,535 ) Asset management fees and other income $ 0 $ 0 $ 0 $ 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and other comprehensive income for the year ended December 31, 2015 , 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 as of December 31, 2015 . Year Ended December 31, 2015 Fixed Maturities Available-For-Sale Foreign Government Corporate Securities(5) Asset-Backed Securities(4) (in thousands) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 46 $ 9 Asset management fees and other income $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ (3,039 ) $ (170 ) Net investment income $ 0 $ 5,274 $ 49 Unrealized gains (losses) for assets still held(2): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 Year Ended December 31, 2015 Trading Account Assets Asset-Backed Securities(4) Equity Securities Equity Securities, Available-For-Sale Short-term Investments Cash Equivalents (in thousands) Total gains or (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 Net investment income $ 0 $ 0 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets/liabilities 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 Other Long-term Investments Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits (in thousands) Total gains(losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) $ 1,405 $ (212,035 ) $ 0 $ 217,101 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 Included in other comprehensive income (loss) $ 0 $ 0 $ (264 ) $ 0 Net investment income $ 0 $ 0 $ 1 $ 0 Unrealized gains (losses) for assets/liabilities still held(2): Included in earnings: Realized investment gains (losses), net $ 1,405 $ (117,840 ) $ 0 $ 119,609 Asset management fees and other income $ 0 $ 0 $ 0 $ 0 (1) Transfers into or out of any level are generally reported at 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 and liabilities between reporting categories. (4) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (6) Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture. |
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. In some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2017(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,396,167 $ 1,396,167 $ 1,387,012 Policy loans 0 0 12,558 12,558 12,558 Short-term investments 0 0 0 0 0 Cash and cash equivalents 493,473 0 0 493,473 493,473 Accrued investment income 0 88,331 0 88,331 88,331 Reinsurance recoverables 0 0 59,588 59,588 59,588 Receivables from parent and affiliates 0 11,206 0 11,206 11,206 Other assets 0 13,802 0 13,802 13,802 Total assets $ 493,473 $ 113,339 $ 1,468,313 $ 2,075,125 $ 2,065,970 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 281,582 $ 281,582 $ 281,051 Cash collateral for loaned securities 0 17,383 0 17,383 17,383 Short-term debt 0 43,734 0 43,734 43,734 Long-term debt 0 1,003,251 0 1,003,251 928,165 Reinsurance Payables 0 0 59,588 59,588 59,588 Payables to parent and affiliates 0 36,026 0 36,026 36,026 Other liabilities 0 135,556 0 135,556 135,556 Separate account liabilities - investment contracts 0 102 0 102 102 Total liabilities $ 0 $ 1,236,052 $ 341,170 $ 1,577,222 $ 1,501,605 December 31, 2016(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,235,842 $ 1,235,842 $ 1,231,893 Policy loans 0 0 12,719 12,719 12,719 Short-term investments 0 35,000 0 35,000 35,000 Cash and cash equivalents 6,886 255,000 0 261,886 261,886 Accrued investment income 0 86,004 0 86,004 86,004 Reinsurance recoverables 0 0 63,775 63,775 63,775 Receivables from parent and affiliates 0 70,779 0 70,779 70,779 Other assets 0 53,858 0 53,858 53,858 Total assets $ 6,886 $ 500,641 $ 1,312,336 $ 1,819,863 $ 1,815,914 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 0 $ 247,986 $ 247,986 $ 250,493 Cash collateral for loaned securities 0 23,350 0 23,350 23,350 Short-term debt 0 28,146 0 28,146 28,101 Long-term debt 0 994,198 0 994,198 971,899 Reinsurance payables 0 0 63,775 63,775 63,775 Payables to parent and affiliates 0 91,432 0 91,432 91,432 Other liabilities 0 189,366 0 189,366 189,366 Separate account liabilities - investment contracts 0 187 0 187 187 Total liabilities $ 0 $ 1,326,679 $ 311,761 $ 1,638,440 $ 1,618,603 (1) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At December 31, 2017 and December 31, 2016 , the fair values of these cost method investments were $6.4 million and $3.4 million , respectively. The carrying values of these investments were $6.0 million and $3.1 million as of December 31, 2017 and December 31, 2016 , respectively. (2) 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, 2017 | |
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 risks, excluding embedded derivatives which are recorded with the associated host and related reinsurance recoverables. 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, 2017 December 31, 2016 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 $ 677,257 $ 13,348 $ (47,209 ) $ 472,701 $ 38,249 $ (2,776 ) Total Qualifying Hedges $ 677,257 $ 13,348 $ (47,209 ) $ 472,701 $ 38,249 $ (2,776 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Futures $ 1,964,000 $ 8,296 $ 0 $ 2,474,000 $ 23,967 $ 0 Interest Rate Swaps 87,939,425 4,374,658 (1,065,549 ) 81,872,695 4,439,270 (1,163,388 ) Interest Rate Options 15,775,000 175,156 (160,181 ) 10,825,000 278,763 (135,554 ) Interest Rate Forwards 975,929 19,870 (2 ) 498,311 0 (25,082 ) Foreign Currency Foreign Currency Forwards 12,455 1 (319 ) 1,491 6 0 Currency/Interest Rate Foreign Currency Swaps 151,400 7,779 (7,488 ) 130,470 16,627 (635 ) Equity Equity Futures 672,055 2,442 0 1,269,044 0 (5,051 ) Total Return Swaps 13,841,333 8,517 (341,700 ) 12,784,166 69,827 (281,193 ) Equity Options 31,702,334 460,597 (318,955 ) 4,610,001 29,650 (45,732 ) Total Non-Qualifying Hedges $ 153,033,931 $ 5,057,316 $ (1,894,194 ) $ 114,465,178 $ 4,858,110 $ (1,656,635 ) Total Derivatives (1) $ 153,711,188 $ 5,070,664 $ (1,941,403 ) $ 114,937,879 $ 4,896,359 $ (1,659,411 ) (1) Excludes embedded derivatives and the related reinsurance recoverables which contain multiple underlyings. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements, that are offset in the 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, 2017 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(1) $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Offsetting of Financial Liabilities: Derivatives(1) $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 December 31, 2016 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(1) $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives(1) $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 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), and repurchase and reverse repurchase agreements, 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, 2017 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(1) $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 5,070,517 $ (4,919,486 ) $ 151,031 $ 0 $ 151,031 Offsetting of Financial Liabilities: Derivatives(1) $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,941,403 $ (1,941,403 ) $ 0 $ 0 $ 0 December 31, 2016 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(1) $ 4,872,392 $ (4,582,540 ) $ 289,852 $ 0 $ 289,852 Securities purchased under agreements to resell 255,000 0 255,000 (255,000 ) 0 Total Assets $ 5,127,392 $ (4,582,540 ) $ 544,852 $ (255,000 ) $ 289,852 Offsetting of Financial Liabilities: Derivatives(1) $ 1,654,360 $ (1,654,360 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 1,654,360 $ (1,654,360 ) $ 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, 2017 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 6,152 $ (11,043 ) $ (37,596 ) Total cash flow hedges 0 6,152 (11,043 ) (37,596 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 550,797 0 0 0 Currency (454 ) 0 0 0 Currency/Interest Rate (30,173 ) 0 (183 ) 0 Credit 0 0 0 0 Equity (2,000,297 ) 0 0 0 Embedded Derivatives 678,698 0 0 0 Total non-qualifying hedges (801,429 ) 0 (183 ) 0 Total $ (801,429 ) $ 6,152 $ (11,226 ) $ (37,596 ) Year Ended December 31, 2016 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 $ 3,006 $ 9,648 $ (3,102 ) Total cash flow hedges 0 3,006 9,648 (3,102 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,219,894 ) 0 0 0 Currency 361 0 0 0 Currency/Interest Rate 11,642 0 516 0 Credit 0 0 0 0 Equity (1,755,946 ) 0 0 0 Embedded Derivatives 437,323 0 0 0 Total non-qualifying hedges (3,526,514 ) 0 516 0 Total $ (3,526,514 ) $ 3,006 $ 10,164 $ (3,102 ) 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 (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, 2014 $ 4,839 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 12,078 Amount reclassified into current period earnings (2,070 ) Balance, December 31, 2015 14,847 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 9,698 Amount reclassified into current period earnings (12,800 ) Balance, December 31, 2016 11,745 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2017 (39,434 ) Amounts reclassified into current period earnings 1,838 Balance, December 31, 2017 $ (25,851 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact On Balance Sheet | Reinsurance amounts included in the Company's Statements of Financial Position as of December 31, were as follows: 2017 2016 (in thousands) Reinsurance recoverables $ 563,428 $ 588,608 Deferred policy acquisition costs 3,766,066 3,557,248 Deferred sales inducements 540,389 520,182 Value of business acquired (2,702 ) (2,357 ) Other assets 105,167 112,802 Policyholders’ account balances 2,825,030 2,576,357 Future policy benefits 5,511,496 5,130,753 Reinsurance payables(1) 262,588 275,822 Other liabilities 329,019 335,713 (1) "Reinsurance payables" includes $0.1 million of unaffiliated activity as of both December 31, 2017 and 2016 . |
Reinsurance Table By Affiliate | The reinsurance recoverables by counterparty are broken out below: December 31, 2017 December 31, 2016 (in thousands) Prudential Insurance $ 310,758 $ 306,191 Pruco Life 252,383 282,326 Unaffiliated 287 91 Total reinsurance recoverables $ 563,428 $ 588,608 |
Reinsurance Impact On Income Statement | Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income for the years ended December 31, were as follows: 2017 2016 2015(3) (in thousands) Premiums: Direct $ 33,908 $ 39,326 $ 33,250 Assumed 32,890 860,831 0 Ceded (3,225 ) (3,318 ) (23,463 ) Net premiums 63,573 896,839 9,787 Policy charges and fee income: Direct 622,099 647,226 743,956 Assumed 1,632,132 1,153,752 0 Ceded(1) (44,652 ) (45,754 ) (3,133 ) Net policy charges and fee income 2,209,579 1,755,224 740,823 Asset administration fees and other income: Direct 129,847 103,892 177,479 Assumed 293,275 205,221 0 Ceded (9,747 ) (9,729 ) 0 Net asset administration fees and other income 413,375 299,384 177,479 Realized investment gains (losses), net: Direct (1,335,253 ) (3,612,578 ) 247,525 Assumed 554,686 (81,510 ) 0 Ceded (24,833 ) 251,328 (241,473 ) Realized investment gains (losses), net (805,400 ) (3,442,760 ) 6,052 Policyholders' benefits (including change in reserves): Direct 52,477 74,438 81,719 Assumed 46,375 553,280 0 Ceded(2) 15,216 (23,661 ) (21,258 ) Net policyholders' benefits (including change in reserves) 114,068 604,057 60,461 Interest credited to policyholders’ account balances: Direct 9,834 74,389 225,555 Assumed 24,708 (1,551 ) 0 Ceded (4,262 ) (3,949 ) 0 Net interest credited to policyholders’ account balances 30,280 68,889 225,555 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization 725,749 563,027 (6,054 ) (1) "Policy charges and fee income ceded" includes $(2) million , $(2) million and $(3) million of unaffiliated activity for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) "Policyholders' benefits (including change in reserves) ceded" includes $(0.1) million , $(0.3) million and $(0.1) million of unaffiliated activity for the years ended December 31, 2017 , 2016 and 2015 , respectively. (3) Prior period amounts are presented on a basis consistent with the current presentation. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Components of 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, December 31, 2014 $ (30 ) $ 84,652 $ 84,622 Change in OCI 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, December 31, 2015 (65 ) 46,231 46,166 Change in OCI before reclassifications (20 ) (469,356 ) (469,376 ) Amounts reclassified from AOCI 0 (86,184 ) (86,184 ) Income tax benefit (expense) 7 194,439 194,446 Balance, December 31, 2016 (78 ) (314,870 ) (314,948 ) Change in OCI before reclassifications 109 320,182 320,291 Amounts reclassified from AOCI 0 3,177 3,177 Income tax benefit (expense) (38 ) (98,606 ) (98,644 ) Balance, December 31, 2017 $ (7 ) $ (90,117 ) $ (90,124 ) (1) Includes cash flow hedges of $(26) million , $12 million and $15 million as of December 31, 2017 , 2016 , and 2015 , respectively. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ (1,838 ) $ 12,800 $ 2,070 Net unrealized investment gains (losses) on available-for-sale securities (1,339 ) 73,384 2,761 Total net unrealized investment gains (losses)(4) (3,177 ) 86,184 4,831 Total reclassifications for the period $ (3,177 ) $ 86,184 $ 4,831 (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) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) 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 Reclassification adjustment for OTTI losses excluded from net income 0 0 0 0 0 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 Net investment gains (losses) on investments arising during the period 378 0 0 (132 ) 246 Reclassification adjustment for (gains) losses included in net income 556 0 0 (195 ) 361 Reclassification adjustment for OTTI losses excluded from net income (2,204 ) 0 0 771 (1,433 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (2,130 ) 0 746 (1,384 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (522 ) 183 (339 ) Balance, December 31, 2016 (1,261 ) (2,133 ) (522 ) 1,387 (2,529 ) Net investment gains (losses) on investments arising during the period 11,328 0 0 (3,481 ) 7,847 Reclassification adjustment for (gains) losses included in net income 2,172 0 0 (667 ) 1,505 Reclassification adjustment for OTTI losses excluded from net income(1) 72 0 0 (22 ) 50 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 1,125 0 (352 ) 773 Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities 0 0 365 (128 ) 237 Balance, December 31, 2017 $ 12,311 $ (1,008 ) $ (157 ) $ (3,263 ) $ 7,883 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) 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 ) Reclassification adjustment for OTTI losses excluded from net income 0 0 0 0 0 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 Net investment gains (losses) on investments arising during the period (637,597 ) 0 0 223,159 (414,438 ) Reclassification adjustment for (gains) losses included in net income 85,628 0 0 (29,970 ) 55,658 Reclassification adjustment for OTTI losses excluded from net income 2,204 0 0 (771 ) 1433 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (786 ) 0 275 (511 ) Impact of net unrealized investment (gains) losses on future policy benefits 0 0 (1,068 ) 374 (694 ) Balance, December 31, 2016 (442,314 ) (31,251 ) (5,664 ) 166,888 (312,341 ) Net investment gains (losses) on investments arising during the period 376,012 0 0 (115,538 ) 260,474 Reclassification adjustment for (gains) losses included in net income (5,349 ) 0 0 1,644 (3,705 ) Reclassification adjustment for OTTI losses excluded from net income(2) (72 ) 0 0 22 (50 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 (50,961 ) 0 15,949 (35,012 ) Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities 0 0 (11,333 ) 3,967 (7,366 ) Balance, December 31, 2017 $ (71,723 ) $ (82,212 ) $ (16,997 ) $ 72,932 $ (98,000 ) (1) Includes cash flow hedges. See Note 11 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Operating Leases of Lessee Disclosure | 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, 2017 are as follows: Lease Sub-Lease (in thousands) 2018 $ 2,992 $ 0 2019 2,742 0 2020 2,992 0 2021 2,992 0 2022 2,992 0 2023 and thereafter 0 0 Total $ 14,710 $ 0 |
Affiliated Notes Receivable | Affiliated notes receivable included in "Receivables from parent and affiliates" at December 31, were as follows: Maturity Dates Interest Rates 2017 2016 (in thousands) U.S. Dollar floating rate notes 2028 2.77% - 3.12 % $ 34,268 $ 0 U.S. Dollar fixed rate notes 2027 - 2028 2.31% - 14.85 % 3,877 40,925 Total long-term notes receivable - affiliated(1) $ 38,145 $ 40,925 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the years ended December 31, 2017 and 2016 , excluding those related to the Variable Annuities Recapture effective April 1, 2016 , as described in Note 1 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/ (Decrease) Realized Investment Gain/ (Loss), Net of Tax (in thousands) Gibraltar Life Insurance Co Ltd August 2016 Sale Fixed Maturities $ 11,559 $ 11,485 $ 0 $ 48 Prudential Insurance September 2016 Sale Fixed Maturities $ 47,066 $ 36,639 $ 0 $ 6,777 Pruco Re September 2016 Transfer in Fixed Maturities $ 91,586 $ 80,732 $ (7,055 ) $ 0 Pruco Life January 2017 Sale Fixed Maturities $ 29 $ 29 $ 0 $ 0 Prudential Insurance October 2017 Sale Commercial Mortgages $ 131,953 $ 128,529 $ 0 $ 2,226 Gibraltar Universal Life Reinsurance Company October 2017 Purchase Fixed Maturities $ 113,686 $ 96,583 $ 0 $ (11,117 ) Prudential Insurance December 2017 Purchase Other long-term investments - Derivatives $ 171,363 $ 171,363 $ 0 $ 0 Prudential Insurance December 2017 Sale Fixed Maturities $ 13,793 $ 7,113 $ 0 $ 4,342 |
Debt Agreements | The following table provides the breakout of the Company's short-term and long-term debt with affiliates: Affiliate Date Issued Amount of Notes - December 31, 2017 Amount of Notes - December 31, 2016 Interest Rate Date of Maturity (in thousands) Prudential Insurance 4/20/2016 $ 0 $ 28,101 1.89 % 6/20/2017 Prudential Insurance 4/20/2016 18,734 18,734 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 25,000 25,000 2.60 % 12/15/2018 Prudential Insurance 4/20/2016 46,835 46,835 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 18,734 18,734 2.80 % 6/20/2019 Prudential Insurance 4/20/2016 37,468 37,468 3.64 % 12/6/2020 Prudential Insurance 4/20/2016 93,671 93,671 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 103,039 103,039 3.64 % 12/15/2020 Prudential Insurance 4/20/2016 93,671 93,671 3.47 % 6/20/2021 Prudential Insurance 4/20/2016 93,671 93,671 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 28,102 28,102 4.39 % 12/15/2023 Prudential Insurance 4/20/2016 37,468 37,468 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 93,671 93,671 3.95 % 6/20/2024 Prudential Insurance 4/20/2016 46,835 46,835 3.95 % 6/20/2024 Prudential Insurance 6/28/2016 30,000 30,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 50,000 50,000 3.87 % 6/28/2026 Prudential Insurance 6/28/2016 25,000 25,000 3.49 % 6/28/2026 Prudential Insurance 6/28/2016 26,000 26,000 2.59 % 6/28/2021 Prudential Insurance 6/28/2016 25,000 25,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 20,000 20,000 2.08 % 6/28/2019 Prudential Insurance 6/28/2016 25,000 25,000 3.49 % 6/28/2026 Prudential Retirement Insurance & Annuity 6/28/2016 34,000 34,000 3.09 % 6/28/2023 Total Loans Payable to Affiliates $ 971,899 $ 1,000,000 |
Quarterly Results of Operatio37
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 2017 (in thousands) Total revenues $ 766,669 $ (726,666 ) $ 1,949,155 $ 314,778 Total benefits and expenses 386,941 (165,242 ) 597,242 367,400 Income (loss) from operations before income taxes 379,728 (561,424 ) 1,351,913 (52,622 ) Net income (loss) $ 262,358 $ (400,583 ) $ 938,926 $ (884,205 ) 2016 Total revenues $ 201,095 $ (892,563 ) $ 719,985 $ (181,460 ) Total benefits and expenses 429,590 1,215,062 (149,250 ) 122,236 Income (loss) from operations before income taxes (228,495 ) (2,107,625 ) 869,235 (303,696 ) Net income (loss) $ (142,665 ) $ (1,316,230 ) $ 569,649 $ (200,842 ) |
Business and Basis of Present38
Business and Basis of Presentation (Variable Annuities Recapture Affected Financial Statement Lines) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 01, 2016 | Dec. 31, 2014 | |
ASSETS | ||||||||||||||
Total investments | $ 12,738,973 | $ 12,256,345 | $ 12,738,973 | $ 12,256,345 | ||||||||||
Cash and cash equivalents | 1,639,939 | 1,848,039 | 1,639,939 | 1,848,039 | $ 536 | $ 594 | ||||||||
Deferred policy acquisition costs | 4,596,565 | 4,344,361 | 4,596,565 | 4,344,361 | 749,302 | 1,114,431 | ||||||||
Reinsurance recoverables | 563,428 | 588,608 | 563,428 | 588,608 | ||||||||||
Deferred sales inducements | 1,020,786 | 978,823 | 1,020,786 | 978,823 | 452,752 | $ 665,207 | ||||||||
Income taxes | 1,116,735 | 1,978,607 | 1,116,735 | 1,978,607 | ||||||||||
TOTAL ASSETS | 59,960,850 | 59,822,165 | 59,960,850 | 59,822,165 | ||||||||||
LIABILITIES | ||||||||||||||
Policyholders’ account balances | 4,846,152 | 4,736,889 | 4,846,152 | 4,736,889 | ||||||||||
Future policy benefits | 9,132,569 | 8,686,196 | 9,132,569 | 8,686,196 | ||||||||||
Other liabilities | 422,636 | 489,007 | 422,636 | 489,007 | ||||||||||
TOTAL LIABILITIES | 53,679,800 | 52,732,435 | 53,679,800 | 52,732,435 | ||||||||||
Ceding Commissions | 766 | 245 | (907) | |||||||||||
EQUITY | ||||||||||||||
Additional paid-in capital | 7,145,436 | 8,095,436 | 7,145,436 | 8,095,436 | ||||||||||
Retained earnings | (776,762) | (693,258) | (776,762) | (693,258) | ||||||||||
Accumulated other comprehensive income (loss) | (90,124) | (314,948) | (90,124) | (314,948) | ||||||||||
TOTAL EQUITY | 6,281,050 | 7,089,730 | 6,281,050 | 7,089,730 | ||||||||||
TOTAL LIABILITIES AND EQUITY | 59,960,850 | 59,822,165 | 59,960,850 | 59,822,165 | ||||||||||
REVENUES | ||||||||||||||
Premiums | 63,573 | 896,839 | 9,787 | |||||||||||
Realized investment gains (losses), net | (805,400) | (3,442,760) | 6,052 | |||||||||||
TOTAL REVENUES | 314,778 | $ 1,949,155 | $ (726,666) | $ 766,669 | (181,460) | $ 719,985 | $ (892,563) | $ 201,095 | 2,303,936 | (152,943) | 1,073,571 | |||
BENEFITS AND EXPENSES | ||||||||||||||
Policyholders’ benefits | 114,068 | 604,057 | 60,461 | |||||||||||
General, administrative and other expenses | (79,061) | 204,649 | 97,722 | |||||||||||
TOTAL BENEFITS AND EXPENSES | 367,400 | 597,242 | (165,242) | 386,941 | 122,236 | (149,250) | 1,215,062 | 429,590 | 1,186,341 | 1,617,638 | 908,639 | |||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (52,622) | 1,351,913 | (561,424) | 379,728 | (303,696) | 869,235 | (2,107,625) | (228,495) | 1,117,595 | (1,770,581) | 164,932 | |||
Total income tax expense (benefit) | 1,201,099 | (680,493) | (8,285) | |||||||||||
NET INCOME (LOSS) | (884,205) | $ 938,926 | $ (400,583) | $ 262,358 | (200,842) | $ 569,649 | $ (1,316,230) | (142,665) | (83,504) | (1,090,088) | $ 173,217 | |||
Impacts of Reinsurance | ||||||||||||||
ASSETS | ||||||||||||||
Deferred policy acquisition costs | 3,766,066 | 3,557,248 | 3,766,066 | 3,557,248 | ||||||||||
Deferred sales inducements | 540,389 | 520,182 | 540,389 | 520,182 | ||||||||||
LIABILITIES | ||||||||||||||
Policyholders’ account balances | 2,825,030 | 2,576,357 | 2,825,030 | 2,576,357 | ||||||||||
Future policy benefits | 5,511,496 | 5,130,753 | 5,511,496 | 5,130,753 | ||||||||||
Other liabilities | $ 329,019 | $ 335,713 | $ 329,019 | $ 335,713 | ||||||||||
Variable Annuity | ||||||||||||||
ASSETS | ||||||||||||||
Total investments | 3,343,000 | $ 17,051,000 | ||||||||||||
Cash and cash equivalents | 106,000 | 1,141,000 | ||||||||||||
Deferred policy acquisition costs | 537,000 | 3,671,000 | ||||||||||||
Reinsurance recoverables | 3,776,000 | 695,000 | ||||||||||||
Deferred sales inducements | 327,000 | 827,000 | ||||||||||||
Income taxes | 0 | 2,556,000 | ||||||||||||
TOTAL ASSETS | 46,694,000 | 64,546,000 | ||||||||||||
LIABILITIES | ||||||||||||||
Policyholders’ account balances | 2,422,000 | 4,809,000 | ||||||||||||
Future policy benefits | 4,295,000 | 11,267,000 | ||||||||||||
Short-term and Long-term debt | 0 | 1,268,000 | ||||||||||||
Other liabilities | 114,000 | 744,000 | ||||||||||||
TOTAL LIABILITIES | 45,472,000 | 56,729,000 | ||||||||||||
EQUITY | ||||||||||||||
Additional paid-in capital | 901,000 | 9,323,000 | ||||||||||||
Retained earnings | 254,000 | (1,537,000) | ||||||||||||
Accumulated other comprehensive income (loss) | 64,000 | 28,000 | ||||||||||||
TOTAL EQUITY | 1,222,000 | 7,817,000 | ||||||||||||
TOTAL LIABILITIES AND EQUITY | $ 46,694,000 | 64,546,000 | ||||||||||||
REVENUES | ||||||||||||||
Premiums | $ 832,000 | |||||||||||||
Realized investment gains (losses), net | (2,866,000) | |||||||||||||
TOTAL REVENUES | (2,034,000) | |||||||||||||
BENEFITS AND EXPENSES | ||||||||||||||
Policyholders’ benefits | 522,000 | |||||||||||||
General, administrative and other expenses | 310,000 | |||||||||||||
TOTAL BENEFITS AND EXPENSES | 832,000 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,866,000) | |||||||||||||
Total income tax expense (benefit) | (1,075,000) | |||||||||||||
NET INCOME (LOSS) | (1,791,000) | |||||||||||||
Variable Annuity | Impacts of Recapture | ||||||||||||||
ASSETS | ||||||||||||||
Total investments | 3,084,000 | |||||||||||||
Cash and cash equivalents | 11,000 | |||||||||||||
Deferred policy acquisition costs | 0 | |||||||||||||
Reinsurance recoverables | (3,401,000) | |||||||||||||
Deferred sales inducements | 0 | |||||||||||||
Income taxes | 115,000 | |||||||||||||
TOTAL ASSETS | (191,000) | |||||||||||||
LIABILITIES | ||||||||||||||
Policyholders’ account balances | 0 | |||||||||||||
Future policy benefits | 0 | |||||||||||||
Short-term and Long-term debt | 0 | |||||||||||||
Other liabilities | 0 | |||||||||||||
TOTAL LIABILITIES | 0 | |||||||||||||
EQUITY | ||||||||||||||
Additional paid-in capital | 0 | |||||||||||||
Retained earnings | (191,000) | |||||||||||||
Accumulated other comprehensive income (loss) | 0 | |||||||||||||
TOTAL EQUITY | (191,000) | |||||||||||||
TOTAL LIABILITIES AND EQUITY | (191,000) | |||||||||||||
REVENUES | ||||||||||||||
Premiums | 0 | |||||||||||||
Realized investment gains (losses), net | (305,000) | |||||||||||||
TOTAL REVENUES | (305,000) | |||||||||||||
BENEFITS AND EXPENSES | ||||||||||||||
Policyholders’ benefits | 0 | |||||||||||||
General, administrative and other expenses | 0 | |||||||||||||
TOTAL BENEFITS AND EXPENSES | 0 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (305,000) | |||||||||||||
Total income tax expense (benefit) | (114,000) | |||||||||||||
NET INCOME (LOSS) | (191,000) | |||||||||||||
Variable Annuity | Impacts of Reinsurance | ||||||||||||||
ASSETS | ||||||||||||||
Total investments | 10,624,000 | |||||||||||||
Cash and cash equivalents | 1,024,000 | |||||||||||||
Deferred policy acquisition costs | 3,134,000 | |||||||||||||
Reinsurance recoverables | 320,000 | |||||||||||||
Deferred sales inducements | 500,000 | |||||||||||||
Income taxes | 2,441,000 | |||||||||||||
TOTAL ASSETS | 18,043,000 | |||||||||||||
LIABILITIES | ||||||||||||||
Policyholders’ account balances | 2,387,000 | |||||||||||||
Future policy benefits | 6,972,000 | |||||||||||||
Short-term and Long-term debt | 1,268,000 | |||||||||||||
Other liabilities | 630,000 | |||||||||||||
TOTAL LIABILITIES | 11,257,000 | |||||||||||||
EQUITY | ||||||||||||||
Additional paid-in capital | 8,422,000 | |||||||||||||
Retained earnings | (1,600,000) | |||||||||||||
Accumulated other comprehensive income (loss) | (36,000) | |||||||||||||
TOTAL EQUITY | 6,786,000 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | 18,043,000 | |||||||||||||
REVENUES | ||||||||||||||
Premiums | 832,000 | |||||||||||||
Realized investment gains (losses), net | (2,561,000) | |||||||||||||
TOTAL REVENUES | (1,729,000) | |||||||||||||
BENEFITS AND EXPENSES | ||||||||||||||
Policyholders’ benefits | 522,000 | |||||||||||||
General, administrative and other expenses | 310,000 | |||||||||||||
TOTAL BENEFITS AND EXPENSES | 832,000 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,561,000) | |||||||||||||
Total income tax expense (benefit) | (961,000) | |||||||||||||
NET INCOME (LOSS) | (1,600,000) | |||||||||||||
Pruco Re | Variable Annuity | Impacts of Recapture | ||||||||||||||
ASSETS | ||||||||||||||
Reinsurance recoverables | (3,400,000) | |||||||||||||
Asset Transfer | 3,100,000 | |||||||||||||
PAI | Variable Annuity | Impacts of Recapture | ||||||||||||||
ASSETS | ||||||||||||||
Current taxes receivable | 1,500,000 | |||||||||||||
PAI | Variable Annuity | Impacts of Reinsurance | ||||||||||||||
ASSETS | ||||||||||||||
Non-cash capital contributions | 3,600,000 | |||||||||||||
Current taxes receivable | 1,500,000 | |||||||||||||
EQUITY | ||||||||||||||
Additional paid-in capital | 3,600,000 | |||||||||||||
Pruco Life | Variable Annuity | Impacts of Recapture | ||||||||||||||
ASSETS | ||||||||||||||
Reinsurance recoverables | 9,400,000 | |||||||||||||
Asset Transfer | $ 7,100,000 | |||||||||||||
LIABILITIES | ||||||||||||||
Ceding Commissions | 3,600,000 | |||||||||||||
Pruco Life | Variable Annuity | Impacts of Reinsurance | ||||||||||||||
LIABILITIES | ||||||||||||||
Ceding Commissions | 2,500,000 | |||||||||||||
Reassignment of debt | Pruco Life | Variable Annuity | Impacts of Recapture | ||||||||||||||
LIABILITIES | ||||||||||||||
Ceding Commissions | $ 1,100,000 |
Business and Basis of Present39
Business and Basis of Presentation (Narratives) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 01, 2016 | Mar. 31, 2016 | |
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | $ 563,428 | $ 588,608 | ||||
Ceding Commissions | 766 | 245 | $ (907) | |||
Contributed capital | $ 0 | $ 860,573 | $ 0 | |||
PAI | ||||||
Effects of Reinsurance [Line Items] | ||||||
Contributed capital | $ 8,400,000 | |||||
Variable Annuity | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | $ 695,000 | $ 3,776,000 | ||||
Variable Annuity | Impacts of Recapture | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | (3,401,000) | |||||
Gain (loss) recognized on transfer | 300,000 | |||||
Variable Annuity | Impacts of Recapture | Pruco Re | ||||||
Effects of Reinsurance [Line Items] | ||||||
Asset Transfer | 3,100,000 | |||||
Reinsurance recoverables | (3,400,000) | |||||
Gain (loss) recognized on transfer | (300,000) | |||||
Variable Annuity | Impacts of Recapture | Pruco Life | ||||||
Effects of Reinsurance [Line Items] | ||||||
Asset Transfer | 7,100,000 | |||||
Reinsurance recoverables | 9,400,000 | |||||
Ceding Commissions | 3,600,000 | |||||
Variable Annuity | Impacts of Reinsurance | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverables | $ 320,000 | |||||
Variable Annuity | Impacts of Reinsurance | Pruco Life | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceding Commissions | 2,500,000 | |||||
Variable Annuity | Reassignment of debt | Impacts of Recapture | Pruco Life | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceding Commissions | 1,100,000 | |||||
Living benefit guarantees | Impacts of Reinsurance | ||||||
Effects of Reinsurance [Line Items] | ||||||
Gain (loss) recognized on transfer | $ (2,600,000) |
Business and Basis of Present40
Business and Basis of Presentation (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Realized investment gains (losses), net | $ (805,400) | $ (3,442,760) | $ 6,052 | ||
Pruco Re Apr - June 2016 Purchase | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 91,586 | ||||
Book Value | 80,732 | ||||
APIC Increase/ (Decrease) | (7,055) | ||||
Realized investment gains (losses), net | $ 0 | ||||
Variable Annuity | |||||
Related Party Transaction [Line Items] | |||||
Realized investment gains (losses), net | $ (2,866,000) | ||||
Variable Annuity | Impacts of Recapture | |||||
Related Party Transaction [Line Items] | |||||
Realized investment gains (losses), net | $ (305,000) | ||||
Variable Annuity | Impacts of Recapture | Pruco Re Apr - June 2016 Purchase | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | $ 3,084,000 | ||||
Book Value | 3,084,000 | ||||
APIC Increase/ (Decrease) | 0 | ||||
Realized investment gains (losses), net | 0 | ||||
Variable Annuity | Impacts of Recapture | Pruco Life Apr - June 2016 Purchase | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 6,994,000 | ||||
Book Value | 6,994,000 | ||||
APIC Increase/ (Decrease) | 0 | ||||
Realized investment gains (losses), net | 0 | ||||
Variable Annuity | Impacts of Recapture | PAI Apr - June 2016 Contributed Capital | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 3,517,000 | ||||
Book Value | 3,517,000 | ||||
APIC Increase/ (Decrease) | 3,517,000 | ||||
Realized investment gains (losses), net | $ 0 |
Significant Accounting Polici41
Significant Accounting Policies and Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||||||||||
Commercial mortgage and other loans, Loan-to- value ratios (greater than) | 100.00% | |||||||||||
Commercial mortgage and other loans, Loan-to-value ratios (less than) | 100.00% | |||||||||||
Commercial mortgage and other loans, Debt service coverage ratios (less than) | 1 | |||||||||||
Commercial mortgage and other loans, Debt service coverage ratios (greater than) | 1 | |||||||||||
Other long-term investments, Partnership Interest (less than) | 3.00% | |||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Net income (loss) | $ (884,205) | $ 938,926 | $ (400,583) | $ 262,358 | $ (200,842) | $ 569,649 | $ (1,316,230) | $ (142,665) | $ (83,504) | $ (1,090,088) | $ 173,217 | |
Other long-term investments | 335,811 | 551,931 | 335,811 | 551,931 | ||||||||
Total assets | 59,960,850 | 59,822,165 | 59,960,850 | 59,822,165 | ||||||||
Total liabilities | 53,679,800 | 52,732,435 | 53,679,800 | 52,732,435 | ||||||||
Accumulated other comprehensive income (loss) | (90,124) | (314,948) | (90,124) | (314,948) | ||||||||
Retained earnings | (776,762) | (693,258) | (776,762) | (693,258) | ||||||||
Total liabilities and equity | 59,960,850 | 59,822,165 | $ 59,960,850 | $ 59,822,165 | ||||||||
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102.00% | |||||||||||
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105.00% | |||||||||||
Uncertain tax positions measurement percentage (greater than) | 50.00% | |||||||||||
Minimum | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Other long-term investments, Investee financial information (lag period) | 1 month | |||||||||||
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% | |||||||||||
Insurance revenue and expense recognition, Assumed interest rate | 0.00% | 0.00% | ||||||||||
Maximum | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Other long-term investments, Investee financial information (lag period) | 3 months | |||||||||||
Insurance revenue and expense recognition, Assumed interest rate | 8.30% | 8.30% | ||||||||||
Accounting Standards Update 2016-01 | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Cumulative effect of adoption | 300 | $ 300 | ||||||||||
Net income (loss) | 0 | |||||||||||
Other long-term investments | 423 | 423 | ||||||||||
Total assets | 423 | 423 | ||||||||||
Policyholder dividends | 0 | 0 | ||||||||||
Income taxes | 89 | 89 | ||||||||||
Total liabilities | 89 | 89 | ||||||||||
Accumulated other comprehensive income (loss) | (3) | (3) | ||||||||||
Retained earnings | 337 | 337 | ||||||||||
Total equity | 334 | 334 | ||||||||||
Total liabilities and equity | 423 | 423 | ||||||||||
Retained earnings | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Net income (loss) | (83,504) | $ (1,090,088) | 173,217 | |||||||||
Total equity | (776,762) | $ (693,258) | (776,762) | $ (693,258) | $ 396,830 | $ 673,613 | ||||||
Retained earnings | Accounting Standards Update 2016-01 | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Cumulative effect of adoption | $ 300 | $ 300 |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | $ 10,145,266 | $ 9,818,298 |
Amortized Cost or Cost | 14 | 365 |
Fair Value | 10,110,786 | 9,362,763 |
Fair Value | 18 | 18 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 10,145,266 | 9,818,298 |
Gross Unrealized Gains | 221,226 | 147,795 |
Gross Unrealized Losses | 255,706 | 603,330 |
Fair Value | 10,110,786 | 9,362,763 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 5,059,168 | 4,998,652 |
Gross Unrealized Gains | 9,109 | 2,487 |
Gross Unrealized Losses | 236,627 | 536,114 |
Fair Value | 4,831,650 | 4,465,025 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 102,709 | 92,107 |
Gross Unrealized Gains | 2,089 | 566 |
Gross Unrealized Losses | 158 | 2,699 |
Fair Value | 104,640 | 89,974 |
Fixed maturities | Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 133,859 | 64,352 |
Gross Unrealized Gains | 6,878 | 5,404 |
Gross Unrealized Losses | 432 | 370 |
Fair Value | 140,305 | 69,386 |
Fixed maturities | Public utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 567,829 | 448,349 |
Gross Unrealized Gains | 31,414 | 13,155 |
Gross Unrealized Losses | 2,058 | 10,348 |
Fair Value | 597,185 | 451,156 |
Fixed maturities | Redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 29,504 | 29,581 |
Gross Unrealized Gains | 615 | 288 |
Gross Unrealized Losses | 59 | 633 |
Fair Value | 30,060 | 29,236 |
Fixed maturities | All other U.S. public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 1,473,761 | 1,619,814 |
Gross Unrealized Gains | 77,379 | 73,819 |
Gross Unrealized Losses | 3,416 | 10,153 |
Fair Value | 1,547,724 | 1,683,480 |
Fixed maturities | All other U.S. private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 938,144 | 951,324 |
Gross Unrealized Gains | 35,327 | 27,234 |
Gross Unrealized Losses | 3,795 | 13,810 |
Fair Value | 969,676 | 964,748 |
Fixed maturities | All other foreign public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 194,201 | 183,253 |
Gross Unrealized Gains | 5,663 | 5,410 |
Gross Unrealized Losses | 918 | 1,022 |
Fair Value | 198,946 | 187,641 |
Fixed maturities | All other foreign private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 638,785 | 501,140 |
Gross Unrealized Gains | 38,030 | 5,349 |
Gross Unrealized Losses | 3,231 | 20,450 |
Fair Value | 673,584 | 486,039 |
Fixed maturities | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 341,277 | 248,547 |
Gross Unrealized Gains | 4,438 | 3,227 |
Gross Unrealized Losses | 128 | 465 |
Fair Value | 345,587 | 251,309 |
Fixed maturities | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 502,695 | 484,673 |
Gross Unrealized Gains | 7,334 | 6,793 |
Gross Unrealized Losses | 4,345 | 6,753 |
Fair Value | 505,684 | 484,713 |
Fixed maturities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 163,334 | 196,506 |
Gross Unrealized Gains | 2,950 | 4,063 |
Gross Unrealized Losses | 539 | 513 |
Fair Value | 165,745 | 200,056 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 14 | 365 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 0 | 351 |
Fair Value | 18 | 18 |
Equity securities | Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 14 | 14 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18 | 18 |
Equity securities | Industrial, miscellaneous, and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 0 | 351 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 351 |
Fair Value | 0 | 0 |
OTTI | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Gains | 12,300 | 200 |
OTTI in AOCI | (21) | (1,470) |
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Public utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | All other U.S. public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | (771) |
OTTI | Fixed maturities | All other U.S. private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | (694) |
OTTI | Fixed maturities | All other foreign public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | All other foreign private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | (17) | 0 |
OTTI | Fixed maturities | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI in AOCI | $ (4) | $ (5) |
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, 2017 | Dec. 31, 2016 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | $ 895,609 | $ 6,364,591 |
Less than Twelve Months, Gross Unrealized Losses | 7,733 | 590,647 |
Twelve Months or Longer, Fair Value | 5,054,865 | 127,079 |
Twelve Months or Longer, Gross Unrealized Losses | 247,973 | 12,683 |
Total, Fair Value | 5,950,474 | 6,491,670 |
Total, Gross Unrealized Losses | 255,706 | 603,330 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 13,174 | 4,254,477 |
Less than Twelve Months, Gross Unrealized Losses | 23 | 536,114 |
Twelve Months or Longer, Fair Value | 4,550,472 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 236,604 | 0 |
Total, Fair Value | 4,563,646 | 4,254,477 |
Total, Gross Unrealized Losses | 236,627 | 536,114 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 6,669 | 73,885 |
Less than Twelve Months, Gross Unrealized Losses | 26 | 2,699 |
Twelve Months or Longer, Fair Value | 13,311 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 132 | 0 |
Total, Fair Value | 19,980 | 73,885 |
Total, Gross Unrealized Losses | 158 | 2,699 |
Fixed maturities | Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 37,466 | 32,107 |
Less than Twelve Months, Gross Unrealized Losses | 428 | 370 |
Twelve Months or Longer, Fair Value | 143 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 4 | 0 |
Total, Fair Value | 37,609 | 32,107 |
Total, Gross Unrealized Losses | 432 | 370 |
Fixed maturities | Public utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 84,260 | 240,041 |
Less than Twelve Months, Gross Unrealized Losses | 1,357 | 8,019 |
Twelve Months or Longer, Fair Value | 22,420 | 17,097 |
Twelve Months or Longer, Gross Unrealized Losses | 701 | 2,329 |
Total, Fair Value | 106,680 | 257,138 |
Total, Gross Unrealized Losses | 2,058 | 10,348 |
Fixed maturities | Redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 10,522 | 12,948 |
Less than Twelve Months, Gross Unrealized Losses | 59 | 633 |
Twelve Months or Longer, Fair Value | 0 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 10,522 | 12,948 |
Total, Gross Unrealized Losses | 59 | 633 |
Fixed maturities | All other U.S. public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 206,988 | 530,904 |
Less than Twelve Months, Gross Unrealized Losses | 1,034 | 8,798 |
Twelve Months or Longer, Fair Value | 118,002 | 12,981 |
Twelve Months or Longer, Gross Unrealized Losses | 2,382 | 1,355 |
Total, Fair Value | 324,990 | 543,885 |
Total, Gross Unrealized Losses | 3,416 | 10,153 |
Fixed maturities | All other U.S. private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 221,753 | 453,976 |
Less than Twelve Months, Gross Unrealized Losses | 2,173 | 13,632 |
Twelve Months or Longer, Fair Value | 83,365 | 12,304 |
Twelve Months or Longer, Gross Unrealized Losses | 1,622 | 178 |
Total, Fair Value | 305,118 | 466,280 |
Total, Gross Unrealized Losses | 3,795 | 13,810 |
Fixed maturities | All other foreign public corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 66,004 | 89,962 |
Less than Twelve Months, Gross Unrealized Losses | 578 | 1,016 |
Twelve Months or Longer, Fair Value | 23,186 | 9,994 |
Twelve Months or Longer, Gross Unrealized Losses | 340 | 6 |
Total, Fair Value | 89,190 | 99,956 |
Total, Gross Unrealized Losses | 918 | 1,022 |
Fixed maturities | All other foreign private corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 78,200 | 247,111 |
Less than Twelve Months, Gross Unrealized Losses | 536 | 11,661 |
Twelve Months or Longer, Fair Value | 89,675 | 58,214 |
Twelve Months or Longer, Gross Unrealized Losses | 2,695 | 8,789 |
Total, Fair Value | 167,875 | 305,325 |
Total, Gross Unrealized Losses | 3,231 | 20,450 |
Fixed maturities | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 30,234 | 67,246 |
Less than Twelve Months, Gross Unrealized Losses | 128 | 439 |
Twelve Months or Longer, Fair Value | 0 | 16,489 |
Twelve Months or Longer, Gross Unrealized Losses | 0 | 26 |
Total, Fair Value | 30,234 | 83,735 |
Total, Gross Unrealized Losses | 128 | 465 |
Fixed maturities | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 113,423 | 293,651 |
Less than Twelve Months, Gross Unrealized Losses | 1,225 | 6,753 |
Twelve Months or Longer, Fair Value | 129,458 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 3,120 | 0 |
Total, Fair Value | 242,881 | 293,651 |
Total, Gross Unrealized Losses | 4,345 | 6,753 |
Fixed maturities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 26,916 | 68,283 |
Less than Twelve Months, Gross Unrealized Losses | 166 | 513 |
Twelve Months or Longer, Fair Value | 24,833 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 373 | 0 |
Total, Fair Value | 51,749 | 68,283 |
Total, Gross Unrealized Losses | 539 | 513 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 351 |
Twelve Months or Longer, Fair Value | 0 | 0 |
Twelve Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Gross Unrealized Losses | $ 0 | $ 351 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Net Change in unrealized gains (losses) from trading account assets | $ 13,500,000 | $ (4,800,000) | $ (600,000) |
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Commercial mortgage and others loans, Acquired | $ 0 | ||
Commercial mortgage and other loans, Sold | 129,000,000 | $ 0 | |
Troubled debt restructuring, Commitment to borrowers | 0 | ||
Securities Sold under Agreements to Repurchase | 0 | 0 | |
Non Income Producing Assets | 1,900,000 | ||
Securities Sold under Agreements to Repurchase [Member] | |||
Investment [Line Items] | |||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 0 | 255,000,000 | |
Fixed maturities | |||
Investment [Line Items] | |||
Gross Unrealized Gains | 221,226,000 | 147,795,000 | |
Gross unrealized losses | 255,706,000 | 603,330,000 | |
Gross unrealized losses of twelve months or more | 247,973,000 | 12,683,000 | |
Assets Deposited With Governmental Authorities | 8,300,000 | 7,500,000 | |
Equity securities | |||
Investment [Line Items] | |||
Gross unrealized losses | 0 | 351,000 | |
Gross unrealized losses of twelve months or more | 0 | 0 | |
NAIC high or highest quality rating | Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses | 253,000,000 | 594,900,000 | |
NAIC other than high or highest quality rating | Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses | 2,700,000 | 8,400,000 | |
Corporate securities | |||
Investment [Line Items] | |||
Gross unrealized losses of twelve months or more | $ 248,000,000 | 12,700,000 | |
California | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 30.00% | ||
Texas | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 11.00% | ||
New York | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 7.00% | ||
Affiliated Entity | Commercial mortgage and other loans | |||
Investment [Line Items] | |||
Commercial mortgage and other loans received from related parties | $ 0 | 580,000,000 | |
Declines in Value of 20% or More | Equity securities | |||
Investment [Line Items] | |||
Gross unrealized losses | $ 0 | $ 0 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for Sale Amortized Cost | ||
Amortized Cost | $ 10,145,266 | $ 9,818,298 |
Available for Sale Securities Fair Value | ||
Fair Value | 10,110,786 | 9,362,763 |
Fixed maturities | ||
Available for Sale Amortized Cost | ||
Due in one year or less | 253,164 | |
Due after one year through five years | 1,077,651 | |
Due after five years through ten years | 1,704,257 | |
Due after ten years | 6,102,888 | |
Amortized Cost | 10,145,266 | 9,818,298 |
Available for Sale Securities Fair Value | ||
Due in one year or less | 253,552 | |
Due after one year through five years | 1,099,278 | |
Due after five years through ten years | 1,783,306 | |
Due after ten years | 5,957,634 | |
Fair Value | 10,110,786 | 9,362,763 |
Fixed maturities | Asset-backed securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 341,277 | 248,547 |
Available for Sale Securities Fair Value | ||
Fair Value | 345,587 | 251,309 |
Fixed maturities | Commercial mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 502,695 | 484,673 |
Available for Sale Securities Fair Value | ||
Fair Value | 505,684 | 484,713 |
Fixed maturities | Residential mortgage-backed securities | ||
Available for Sale Amortized Cost | ||
Amortized Cost | 163,334 | 196,506 |
Available for Sale Securities Fair Value | ||
Fair Value | $ 165,745 | $ 200,056 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Security Proceeds)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from maturities/prepayments | $ 1,145,369 | $ 4,072,242 | $ 486,648 |
Fixed maturities | Available-for-sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale of Available-for-sale Securities | 517,743 | 3,577,346 | 33,604 |
Proceeds from maturities/prepayments | 630,140 | 495,465 | 453,016 |
Gross investment gains from sales and maturities | 8,992 | 98,095 | 5,788 |
Gross investment losses from sales and maturities | (3,047) | (5,412) | (937) |
OTTI recognized in earnings | (9,122) | (6,499) | (20) |
Non-cash related proceeds | $ 2,500 | $ 600 | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity and Equity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | ||
Balance, beginning of period | $ 1,325 | $ 86 |
New credit loss impairments | 366 | 1,791 |
Additional credit loss impairments on securities previously impaired | 606 | 0 |
Increases due to the passage of time on previously recorded credit losses | 10 | 25 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (21) | (1,170) |
Reductions for securities impaired to fair value during the period | (1,481) | 0 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (13) | (14) |
Assets transferred to parent and affiliates | 0 | 607 |
Balance, end of period | $ 792 | $ 1,325 |
Investments (Trading Account As
Investments (Trading Account Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account assets, at amortized cost or cost | $ 172,993 | $ 154,608 |
Trading account assets, at fair value | 181,717 | 149,871 |
Fixed maturities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account assets, at amortized cost or cost | 161,393 | 147,057 |
Trading account assets, at fair value | 166,360 | 139,513 |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account assets, at amortized cost or cost | 11,600 | 7,551 |
Trading account assets, at fair value | $ 15,357 | $ 10,358 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,389,662 | $ 1,234,182 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Valuation allowance | $ (2,650) | $ (2,289) |
Total commercial mortgage and other loans | 1,387,012 | 1,231,893 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 348,718 | $ 277,296 |
Commercial mortgage loans, Percentage | 25.00% | 22.50% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 3,782 | $ 3,925 |
Commercial mortgage loans, Percentage | 0.30% | 0.30% |
Industrial Property | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 327,987 | $ 263,705 |
Commercial mortgage loans, Percentage | 23.60% | 21.40% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 294,072 | $ 294,304 |
Commercial mortgage loans, Percentage | 21.20% | 23.80% |
Other property | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 139,362 | $ 87,465 |
Commercial mortgage loans, Percentage | 10.00% | 7.10% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 216,544 | $ 223,252 |
Commercial mortgage loans, Percentage | 15.60% | 18.10% |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,330,465 | $ 1,149,947 |
Commercial mortgage loans, Percentage | 95.70% | 93.20% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 59,197 | $ 84,235 |
Commercial mortgage loans, Percentage | 4.30% | 6.80% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 2,289 | $ 643 |
Addition to (release of) allowance for losses | 361 | 1,646 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 2,650 | 2,289 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2,267 | 622 |
Addition to (release of) allowance for losses | 349 | 1,645 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 2,616 | 2,267 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 22 | 21 |
Addition to (release of) allowance for losses | 12 | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | $ 34 | $ 22 |
Investments (Allowance for Cr51
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for credit losses: | |||
Individually evaluated for impairment | $ 0 | $ 0 | |
Collectively evaluated for impairment | 2,650 | 2,289 | |
Total ending balance | 2,650 | 2,289 | $ 643 |
Recorded Investment: | |||
Individually evaluated for impairment | 6,436 | 1,715 | |
Collectively evaluated for impairment | 1,383,226 | 1,232,467 | |
Total ending balance | 1,389,662 | 1,234,182 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Recorded Investment: | |||
Financing Receivable Total | 0 | 0 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,616 | 2,267 | |
Total ending balance | 2,616 | 2,267 | 622 |
Recorded Investment: | |||
Individually evaluated for impairment | 1,571 | 1,715 | |
Collectively evaluated for impairment | 1,328,894 | 1,148,232 | |
Total ending balance | 1,330,465 | 1,149,947 | |
Agricultural Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 34 | 22 | |
Total ending balance | 34 | 22 | $ 21 |
Recorded Investment: | |||
Individually evaluated for impairment | 4,865 | 0 | |
Collectively evaluated for impairment | 54,332 | 84,235 | |
Total ending balance | $ 59,197 | $ 84,235 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial and agricultural mortgage loans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 1,389,662 | $ 1,234,182 |
0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 686,330 | 688,582 |
60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 505,251 | 410,545 |
70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 195,649 | 124,263 |
80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,432 | 10,792 |
1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,355,015 | 1,192,274 |
1.2X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 667,338 | 667,051 |
1.2X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 503,922 | 406,728 |
1.2X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 182,368 | 108,770 |
1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,387 | 9,725 |
1.0X to 1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 29,036 | 32,414 |
1.0X to 1.2X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 14,426 | 16,921 |
1.0X to 1.2X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,329 | 0 |
1.0X to 1.2X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,281 | 15,493 |
1.0X to 1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 5,611 | 9,494 |
1.0X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 4,566 | 4,610 |
1.0X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 3,817 |
1.0X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 1,045 | $ 1,067 |
Investments Investments (Analys
Investments Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,389,662 | $ 1,234,182 |
Total Loans | 1,389,662 | 1,234,182 |
Non-Accrual Status | 0 | 0 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,330,465 | 1,149,947 |
Total Loans | 1,330,465 | 1,149,947 |
Non-Accrual Status | 0 | 0 |
Commercial Mortgage Loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 59,197 | 84,235 |
Total Loans | 59,197 | 84,235 |
Non-Accrual Status | 0 | 0 |
Agricultural Property Loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Long-Term Investment [Line Items] | ||
Other long-term investments | $ 335,811 | $ 551,931 |
Private equity | ||
Other Long-Term Investment [Line Items] | ||
Other long-term investments | 29,301 | 30,513 |
Hedge funds | ||
Other Long-Term Investment [Line Items] | ||
Other long-term investments | 106,776 | 98,554 |
Real estate-related | ||
Other Long-Term Investment [Line Items] | ||
Other long-term investments | 48,555 | 109,043 |
Total joint ventures and limited partnerships | ||
Other Long-Term Investment [Line Items] | ||
Other long-term investments | 184,632 | 238,110 |
Derivatives | ||
Other Long-Term Investment [Line Items] | ||
Other long-term investments | $ 151,179 | $ 313,821 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 438,873 | $ 349,662 | $ 144,871 |
Less: investment expenses | (16,064) | (11,292) | (5,441) |
Net investment income | 422,809 | 338,370 | 139,430 |
Fixed maturities | Available-for-sale | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 332,148 | 249,496 | 115,998 |
Trading account assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 4,927 | 3,473 | 349 |
Commercial mortgage and other loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 48,598 | 40,258 | 22,696 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 1,069 | 444 | 794 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 31,505 | 26,831 | 396 |
Other long-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 20,626 | $ 29,160 | $ 4,638 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ (805,400) | $ (3,442,760) | $ 6,052 |
Fixed maturities | |||
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (3,177) | 86,184 | 4,831 |
Commercial mortgage and other loans | |||
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (840) | (2,326) | (161) |
Derivatives | |||
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (801,429) | (3,526,514) | 1,381 |
Other long-term investments | |||
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (39) | (648) | 1 |
Short-term Investments | |||
Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 85 | $ 544 | $ 0 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ (59,412) | $ (443,575) | $ 107,460 |
Fixed maturities | Available-for-sale | OTTI | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 12,311 | (1,261) | 9 |
Fixed maturities | Available-for-sale | All other | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | (46,791) | (454,274) | 90,637 |
Equity securities | Available-for-sale | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 4 | (347) | 3 |
Derivatives designated as cash flow hedges | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | (25,851) | 11,745 | 14,847 |
Affiliated notes | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 829 | 1,181 | 1,660 |
Other investments | |||
Gain (Loss) on Investments [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ 86 | $ (619) | $ 304 |
Investments Investments (Securi
Investments Investments (Securities Lending and Repurchase Agreement) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 17,383 | $ 23,350 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 17,383 | 23,350 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 10,505 | 10,712 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 10,505 | 10,712 |
Foreign government bonds | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
All other U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 6,878 | 12,638 |
All other U.S. public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 6,878 | 12,638 |
All other U.S. public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | $ 16,825 | $ 21,908 |
Liabilities supported by pledged collateral | 17,383 | 23,350 |
Cash Collateral For Loaned Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Liabilities supported by pledged collateral | 17,383 | 23,350 |
Fixed maturities | Available-for-sale | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | $ 16,825 | $ 21,908 |
Deferred Policy Acquisition C60
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 4,344,361 | $ 749,302 | $ 1,114,431 |
Capitalization of commissions, sales and issue expenses | 277,586 | 269,679 | 1,535 |
Amortization-Impact of assumption and experience unlocking and true-ups | 288,974 | 226,204 | 33,113 |
Amortization-All other | (275,028) | (46,388) | (342,265) |
Changes in unrealized investment gains and losses | (39,328) | 18,772 | 16,352 |
Ceded DAC upon Reinsurance Treaty with Prudential Insurance | 0 | (7,480) | (73,864) |
Assumed DAC upon Reinsurance Treaty with Pruco Life | 0 | 3,134,272 | 0 |
Balance, end of year | $ 4,596,565 | 4,344,361 | $ 749,302 |
True-up to the ceded DAC upon reinsurance agreement with Prudential Insurance | $ 7,500 |
Value of Business Acquired (Bal
Value of Business Acquired (Balance of and Changes in VOBA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, beginning of year | $ 30,287 | $ 33,640 | $ 39,738 |
Amortization-Impact of assumption and experience unlocking and true-ups | 10,035 | 2,372 | 3,412 |
Amortization-All other | (7,422) | (8,176) | (10,477) |
Interest | 2,001 | 1,939 | 2,436 |
Change in unrealized investment gains and losses | 208 | 512 | (1,163) |
Ceded VOBA upon Reinsurance Treaty with Prudential Insurance | 0 | 0 | (2,632) |
Balance, end of year | $ 35,109 | $ 30,287 | $ 33,640 |
Weighted Average Useful Life | 5 years 5 months 19 days | ||
Interest accrual rates | 5.96% | 6.00% | 6.05% |
Value of Business Acquired (Est
Value of Business Acquired (Estimated Future Amortization, Net of Interest) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Present Value of Future Insurance Profits [Abstract] | |
Estimated future VOBA amortization - 2018 | $ 5,867 |
Estimated future VOBA amortization - 2019 | 4,997 |
Estimated future VOBA amortization - 2020 | 4,258 |
Estimated future VOBA amortization - 2021 | 3,620 |
Estimated future VOBA amortization - 2022 | $ 3,077 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance – domestic | $ 800 | $ 964 |
Individual and group annuities and supplementary contracts | 970,936 | 446,318 |
Other contract liabilities | 8,160,833 | 1,267,739 |
Total future policy benefits | 9,132,569 | 8,686,196 |
Assumed | Pruco Life | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Other contract liabilities | 0 | 6,442,965 |
Individual and group annuities assumed upon reinsurance agreement with Pruco Life | $ 0 | $ 528,210 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) | Dec. 31, 2017 |
Domestic individual non-participating life insurance | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 0.00% |
Domestic individual non-participating life insurance | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 0.00% |
Individual and group annuities and supplementary contracts | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Percentage of reserves based on interest rates in excess of 8 percent | 0.50% |
Individual and group annuities and supplementary contracts | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 0.00% |
Individual and group annuities and supplementary contracts | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 8.30% |
Other contract liabilities | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 2.00% |
Other contract liabilities | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate | 3.60% |
Interest-sensitive life contracts | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 3.50% |
Interest-sensitive life contracts | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 6.00% |
Individual annuities | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 0.00% |
Individual annuities | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 6.50% |
Guaranteed interest accounts | Minimum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 0.00% |
Guaranteed interest accounts | Maximum | |
Liability for Future Policy Benefit and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders Account Balances, Interest rate | 5.80% |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 4,846,152 | $ 4,736,889 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 15,301 | 15,666 |
Individual annuities | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 4,162,138 | 1,441,126 |
Guaranteed interest accounts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 668,713 | 893,419 |
Assumed | Pruco Life | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 0 | $ 2,386,678 |
Certain Long-Duration Contrac66
Certain Long-Duration Contracts with Guarantees (Variable Annuity Contracts) (Details) - Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Return of net deposits | In the Event of Death(2) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 119,182,143 | $ 110,194,439 |
Net amount at risk | $ 274,617 | $ 463,423 |
Average attained age of contractholders | 66 years | 66 years |
Minimum return or contract value | In the Event of Death(2) | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 25,835,100 | $ 24,725,084 |
Net amount at risk | $ 2,161,133 | $ 3,098,018 |
Average attained age of contractholders | 69 years | 69 years |
Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 129,630,456 | $ 120,237,955 |
Net amount at risk | $ 3,225,700 | $ 5,041,214 |
Average attained age of contractholders | 67 years | 66 years |
Average period remaining until earliest expected annuitization | 0 years | 0 years |
Certain Long-Duration Contrac67
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Annuity Contracts - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 140,310,565 | $ 130,259,024 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 83,556,771 | 77,133,820 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 53,027,241 | 44,025,867 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 3,726,553 | $ 9,099,337 |
Certain Long-Duration Contrac68
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 4.7 | $ 4.7 |
Certain Long-Duration Contrac69
Certain Long-Duration Contracts with Guarantees Liabilities for Guarantee Benefits (Details) - Annuity Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 8,382,545 | $ 3,413,818 | $ 3,387,128 |
Incurred guarantee benefits | 462,488 | (1,939,713) | 60,217 |
Paid guarantee benefits | (60,851) | (57,813) | (29,751) |
Change in unrealized investment gains and losses | 13,048 | (5,415) | (3,776) |
Assumed guarantees upon reinsurance agreement with Pruco Life | 6,971,668 | ||
Ending balance | 8,797,230 | 8,382,545 | 3,413,818 |
GMDB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 637,319 | 265,877 | 255,613 |
Incurred guarantee benefits | 29,605 | 43,185 | 43,167 |
Paid guarantee benefits | (57,053) | (55,604) | (29,240) |
Change in unrealized investment gains and losses | 12,931 | (5,206) | (3,663) |
Assumed guarantees upon reinsurance agreement with Pruco Life | 389,067 | ||
Ending balance | 622,802 | 637,319 | 265,877 |
GMAB/GMWB/ GMIWB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 7,707,333 | 3,134,077 | 3,112,411 |
Incurred guarantee benefits | 444,569 | (1,979,215) | 21,666 |
Paid guarantee benefits | 0 | 0 | 0 |
Change in unrealized investment gains and losses | 0 | 0 | 0 |
Assumed guarantees upon reinsurance agreement with Pruco Life | 6,552,471 | ||
Ending balance | 8,151,902 | 7,707,333 | 3,134,077 |
GMIB | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 37,893 | 13,864 | 19,104 |
Incurred guarantee benefits | (11,686) | (3,683) | (4,616) |
Paid guarantee benefits | (3,798) | (2,209) | (511) |
Change in unrealized investment gains and losses | 117 | (209) | (113) |
Assumed guarantees upon reinsurance agreement with Pruco Life | 30,130 | ||
Ending balance | $ 22,526 | $ 37,893 | $ 13,864 |
Certain Long-Duration Contrac70
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Beginning balance | $ 978,823 | $ 452,752 | $ 665,207 |
Capitalization | 1,551 | 1,805 | 873 |
Amortization - Impact of assumption and experience unlocking and true-ups | 145,141 | 101,424 | 21,125 |
Amortization - All other | (94,014) | (81,603) | (206,263) |
Change in unrealized investment gains and losses | (10,715) | 4,915 | 11,063 |
Ceded DSI upon Reinsurance Treaty with Prudential Insurance | (39,253) | ||
Assumed DSI upon Reinsurance Treaty with Pruco Life Insurance Company | 499,530 | ||
Ending balance | $ 1,020,786 | $ 978,823 | $ 452,752 |
Statutory Net Income and Surp71
Statutory Net Income and Surplus and Dividend Restrictions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||||||||
Statutory surplus dividend paid to PAI with approval | $ 180,000,000 | $ 270,000,000 | |||||||
Statutory net income (loss) | $ 3,911,000,000 | $ (2,018,000,000) | $ 340,000,000 | ||||||
Statutory surplus | $ 8,059,000,000 | $ 5,718,000,000 | 8,059,000,000 | $ 5,718,000,000 | |||||
Divided the Company is permitted to pay without prior approval in 2018 | 0 | $ 0 | |||||||
Extra-ordinary dividend | |||||||||
Statutory Accounting Practices [Line Items] | |||||||||
Statutory surplus dividend paid to PAI with approval | $ 650,000,000 | $ 200,000,000 | $ 100,000,000 | $ 1,140,000,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense (benefit): | |||
U.S. federal | $ 501,088 | $ 2,524,458 | $ 76,175 |
State and local | 1,349 | 0 | 0 |
Total | 502,437 | 2,524,458 | 76,175 |
Deferred tax expense (benefit): | |||
U.S. federal | 698,662 | (3,204,951) | (84,460) |
State and local | 0 | 0 | 0 |
Total | 698,662 | (3,204,951) | (84,460) |
Total income tax expense (benefit) | 1,201,099 | (680,493) | (8,285) |
Total income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income (loss) | 98,644 | (194,446) | (20,708) |
Additional paid-in capital | 0 | (9,531) | 0 |
Total income tax expense (benefit) | $ 1,299,743 | $ (884,470) | $ (28,993) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | ||
Effective tax rate | 107.50% | 38.40% | (5.00%) |
Total income tax expense (benefit) | $ 882 | ||
Tax benefit from the reduction in net deferred tax liabilities | 882 | ||
DRD constituting non-taxable investment income | 46 | $ 50 | $ 57 |
Non-taxable investment income | 47 | 50 | 57 |
Income (loss) from domestic operations | $ 1,118 | $ (1,771) | $ 165 |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected federal income tax expense (benefit) | $ 391,158 | $ (619,704) | $ 57,727 |
Non-taxable investment income | (46,625) | (49,630) | (56,614) |
Tax credits | (10,358) | (10,507) | (9,389) |
Changes in tax law | 882,175 | 0 | 0 |
Other | (15,251) | (652) | (9) |
Total income tax expense (benefit) | $ 1,201,099 | $ (680,493) | $ (8,285) |
Effective tax rate | 107.50% | 38.40% | (5.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Insurance reserves | $ 2,064,659 | $ 3,369,384 |
Investments | 404,703 | 418,128 |
Net unrealized loss on securities | 7,048 | 159,362 |
Other | 205 | 440 |
Deferred tax assets | 2,476,615 | 3,947,314 |
Deferred tax liabilities: | ||
DeferredTaxLiabilitiesVOBAandDAC | 960,841 | 1,506,010 |
Deferred sales inducements | 214,365 | 342,588 |
Deferred tax liabilities | 1,175,206 | 1,848,598 |
Deferred Tax Assets, Net | $ 1,301,409 | $ 2,098,716 |
Fair Value of Assets and Liab76
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, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | $ 10,110,786 | $ 9,362,763 |
Trading securities, equity | 181,717 | 149,871 |
Equity securities, available-for-sale | 18 | 18 |
Short-term investments | 711,071 | 947,150 |
Other long-term investments | 335,811 | 551,931 |
Reinsurance recoverables | 563,428 | 588,608 |
Receivables from parent and affiliates | 49,351 | 111,703 |
Separate account assets | 37,990,547 | 37,429,739 |
TOTAL ASSETS | 59,960,850 | 59,822,165 |
Future policy benefits | 9,132,569 | 8,686,196 |
Payables to parent and affiliates | 36,026 | 91,432 |
Other liabilities | 422,636 | 489,007 |
TOTAL LIABILITIES | 53,679,800 | 52,732,435 |
Future Policy Benefits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 8,152,000 | 7,707,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 819,000 | 1,060,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 8,971,000 | 8,767,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 10,110,786 | 9,362,763 |
Trading account assets | 181,717 | 149,871 |
Equity securities, available-for-sale | 18 | 18 |
Short-term investments | 711,071 | 912,150 |
Cash equivalents | 1,146,466 | 1,586,153 |
Other long-term investments | 151,178 | 313,819 |
Reinsurance recoverables | 244,006 | 240,091 |
Receivables from parent and affiliates | 38,145 | 40,924 |
Subtotal excluding separate account assets | 12,583,387 | 12,605,789 |
Separate account assets | 37,990,547 | 37,429,739 |
TOTAL ASSETS | 50,573,934 | 50,035,528 |
Future policy benefits | 8,151,902 | 7,707,333 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 5,051 |
TOTAL LIABILITIES | 8,151,902 | 7,712,384 |
Asset Netting | (4,919,486) | (4,582,540) |
Liability Netting | (1,941,403) | (1,654,360) |
Netting | 2,978,000 | 2,928,000 |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Netting | (4,919,486) | (4,582,540) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Netting | (1,941,403) | (1,654,360) |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,831,650 | 4,465,025 |
Trading account assets, debt | 123,820 | 116,184 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 104,640 | 89,974 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 140,305 | 69,386 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,808,450 | 1,925,038 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,207,944 | 1,121,868 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 229,221 | 217,363 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 771,560 | 538,031 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 42,540 | 21,632 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 345,587 | 251,309 |
Trading account assets, debt | 0 | 1,697 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 505,684 | 484,713 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 165,745 | 200,056 |
Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 15,357 | 10,358 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets | 5,599 | 5,494 |
Equity securities, available-for-sale | 0 | 0 |
Short-term investments | 448,712 | 519,000 |
Cash equivalents | 0 | 738,449 |
Other long-term investments | 10,738 | 23,967 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 465,049 | 1,286,910 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 465,049 | 1,286,910 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 5,051 |
TOTAL LIABILITIES | 0 | 5,051 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 5,599 | 5,494 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 9,824,985 | 9,178,952 |
Trading account assets | 166,360 | 139,513 |
Equity securities, available-for-sale | 18 | 18 |
Short-term investments | 262,272 | 392,700 |
Cash equivalents | 1,146,466 | 847,329 |
Other long-term investments | 5,059,779 | 4,872,392 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 38,145 | 6,962 |
Subtotal excluding separate account assets | 16,498,025 | 15,437,866 |
Separate account assets | 37,990,547 | 37,429,739 |
TOTAL ASSETS | 54,488,572 | 52,867,605 |
Future policy benefits | 0 | 0 |
Payables to parent and affiliates | 1,941,403 | 1,654,360 |
Other liabilities | 0 | 0 |
TOTAL LIABILITIES | 1,941,403 | 1,654,360 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 4,826,413 | 4,465,025 |
Trading account assets, debt | 123,820 | 116,184 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 104,640 | 89,974 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 140,305 | 69,299 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,806,888 | 1,909,440 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,148,536 | 997,004 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 229,006 | 217,363 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 737,539 | 526,504 |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 42,540 | 21,632 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 160,229 | 219,574 |
Trading account assets, debt | 0 | 1,697 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 505,684 | 484,713 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 165,745 | 200,056 |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 285,801 | 183,811 |
Trading account assets | 9,758 | 4,864 |
Equity securities, available-for-sale | 0 | 0 |
Short-term investments | 87 | 450 |
Cash equivalents | 0 | 375 |
Other long-term investments | 147 | 0 |
Reinsurance recoverables | 244,006 | 240,091 |
Receivables from parent and affiliates | 0 | 33,962 |
Subtotal excluding separate account assets | 539,799 | 463,553 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 539,799 | 463,553 |
Future policy benefits | 8,151,902 | 7,707,333 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
TOTAL LIABILITIES | 8,151,902 | 7,707,333 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 5,237 | 0 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 87 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 1,562 | 15,598 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 59,408 | 124,864 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 215 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 34,021 | 11,527 |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 185,358 | 31,735 |
Trading account assets, debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, equity | 9,758 | 4,864 |
Other long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | $ 300 | $ 400 |
Fair Value of Assets and Liab77
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Transfers Between Level 1 and Level 2 | $ 0 | $ 0 |
Fair Value of Assets and Liab78
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,132,569 | $ 8,686,196 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,151,902 | 7,707,333 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,151,902 | $ 7,707,333 |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 0.00% |
Spread over LIBOR | 0.12% | 0.25% |
Utilization rate | 52.00% | 52.00% |
Withdrawal rate (greater than maximum range for current year) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 13.00% | 16.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 5.06% | 3.24% |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Liquidation value | 98.21% | |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse rate | 12.00% | 13.00% |
Spread over LIBOR | 1.10% | 1.50% |
Utilization rate | 97.00% | 96.00% |
Withdrawal rate (greater than maximum range for current year) | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 24.00% | 25.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 22.23% | 17.12% |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Liquidation value | 98.68% | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate | 8.57% | 4.71% |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Liquidation value | 98.64% | |
Level 3 | Internal | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 244,006 | $ 240,091 |
Future policy benefits | 8,151,902 | 7,707,333 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Corporate securities | $ 22,215 | $ 136,391 |
Fair Value of Assets and Liab79
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Maturities Available-For-Sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | $ 0 | ||
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | ||
Net investment income | 0 | ||
Purchases | 4,264 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Other | 973 | ||
Fair Value, end of period | 5,237 | $ 0 | |
Fixed Maturities Available-For-Sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | ||
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | ||
Fixed Maturities Available-For-Sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | ||
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | ||
Fixed Maturities Available-For-Sale | Foreign government bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 87 | 0 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | (8) | $ 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 95 | |
Transfers out of Level 3 | (87) | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | 0 | 87 | 0 |
Fixed Maturities Available-For-Sale | Foreign government bonds | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Foreign government bonds | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Corporate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 151,989 | 127,308 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | (3,627) | 2,313 | (3,039) |
Net investment income | 7,874 | 5,835 | 5,274 |
Purchases | 17,920 | 22,871 | |
Sales | (15,283) | (105) | |
Issuances | 0 | 0 | |
Settlements | (111,675) | (9,085) | |
Transfers into Level 3 | 64,412 | 19,694 | |
Transfers out of Level 3 | (5,370) | (12,854) | |
Other | (4,157) | 0 | |
Fair Value, end of period | 95,206 | 151,989 | 127,308 |
Fixed Maturities Available-For-Sale | Corporate securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (6,877) | (3,988) | 46 |
Net unrealized investment gains (losses): | |||
Included in earnings | (6,498) | (4,917) | 0 |
Fixed Maturities Available-For-Sale | Corporate securities | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Fixed Maturities Available-For-Sale | Asset-Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 31,735 | 46,493 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 217 | 161 | (170) |
Net investment income | 183 | 139 | 49 |
Purchases | 237,469 | 72,939 | |
Sales | (5,613) | (6,739) | |
Issuances | 0 | 0 | |
Settlements | (55,184) | (540) | |
Transfers into Level 3 | 106,034 | 34,984 | |
Transfers out of Level 3 | (130,059) | (115,676) | |
Other | 0 | 0 | |
Fair Value, end of period | 185,358 | 31,735 | 46,493 |
Fixed Maturities Available-For-Sale | Asset-Backed Securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 576 | (26) | 9 |
Net unrealized investment gains (losses): | |||
Included in earnings | (8) | (26) | 0 |
Fixed Maturities Available-For-Sale | Asset-Backed Securities | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Trading account assets | Asset-Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (2,634) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 2,795 | |
Fair Value, end of period | 0 | 0 | 0 |
Trading account assets | Asset-Backed Securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Trading account assets | Asset-Backed Securities | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (161) | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Trading account assets | Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 4,864 | 0 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 3,422 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 4,205 | 1,565 | |
Fair Value, end of period | 9,758 | 4,864 | 0 |
Trading account assets | Equity securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Trading account assets | Equity securities | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 689 | (123) | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 338 | (123) | 0 |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 351 | (351) | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 351 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | (351) | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Equity securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Equity securities | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 450 | 450 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 94 | 0 | |
Sales | (5) | 0 | |
Issuances | 0 | 0 | |
Settlements | (2) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | (450) | 0 | |
Fair Value, end of period | 87 | 450 | 450 |
Short-term Investments | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Short-term Investments | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 375 | 225 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 150 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | (375) | 0 | |
Fair Value, end of period | 0 | 375 | 225 |
Cash equivalents | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Other long-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 1,565 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 154 | (1,565) | |
Fair Value, end of period | 147 | 0 | 1,565 |
Other long-term investments | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (7) | 0 | 1,405 |
Net unrealized investment gains (losses): | |||
Included in earnings | (7) | 0 | 1,405 |
Other long-term investments | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Reinsurance Recoverables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | 240,091 | 3,012,653 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 19,416 | 70,448 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 2,739 | 9,578 | |
Fair Value, end of period | 244,006 | 240,091 | 3,012,653 |
Reinsurance Recoverables | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (18,240) | (2,852,588) | (212,035) |
Net unrealized investment gains (losses): | |||
Included in earnings | (10,303) | 59,501 | (117,840) |
Reinsurance Recoverables | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 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 | 33,962 | 7,664 | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 50 | (264) |
Net investment income | 0 | 0 | 1 |
Purchases | 0 | 34,000 | |
Sales | 0 | (1,987) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (33,962) | (2,957) | |
Other | 0 | (2,795) | |
Fair Value, end of period | 0 | 33,962 | 7,664 |
Receivables from Parent and Affiliates | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (13) | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Receivables from Parent and Affiliates | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | 0 | 0 | 0 |
Future Policy Benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, beginning of period | (7,707,333) | (3,134,077) | |
Total gains (losses) (realized/unrealized): | |||
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (996,616) | (781,497) | |
Settlements | 0 | 0 | |
Transfers Into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Other | 0 | 0 | |
Fair Value, end of period | (8,151,902) | (7,707,333) | (3,134,077) |
Future Policy Benefits | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 552,047 | (3,791,759) | 217,101 |
Net unrealized investment gains (losses): | |||
Included in earnings | 307,529 | (3,740,535) | 119,609 |
Future Policy Benefits | Asset management fees and other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Net unrealized investment gains (losses): | |||
Included in earnings | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab80
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Policy loans | $ 12,558 | $ 12,719 | ||
Cash and cash equivalents | 1,639,939 | 1,848,039 | $ 536 | $ 594 |
Accrued investment income | 88,331 | 86,004 | ||
Reinsurance recoverables | 563,428 | 588,608 | ||
Receivables from parent and affiliates | 49,351 | 111,703 | ||
Liabilities: | ||||
Cash collateral for loaned securities | 17,383 | 23,350 | ||
Short-term debt | 43,734 | 28,101 | ||
Reinsurance payables | 262,588 | 275,822 | ||
Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,396,167 | 1,235,842 | ||
Policy loans | 12,558 | 12,719 | ||
Short-term investments | 0 | 35,000 | ||
Cash and cash equivalents | 493,473 | 261,886 | ||
Accrued investment income | 88,331 | 86,004 | ||
Reinsurance recoverables | 59,588 | 63,775 | ||
Receivables from parent and affiliates | 11,206 | 70,779 | ||
Other assets | 13,802 | 53,858 | ||
Total assets | 2,075,125 | 1,819,863 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 281,582 | 247,986 | ||
Cash collateral for loaned securities | 17,383 | 23,350 | ||
Short-term debt | 43,734 | 28,146 | ||
Long-term debt | 1,003,251 | 994,198 | ||
Reinsurance payables | 59,588 | 63,775 | ||
Payables to parent and affiliates | 36,026 | 91,432 | ||
Other liabilities | 135,556 | 189,366 | ||
Separate account liabilities - investment contracts | 102 | 187 | ||
Total liabilities | 1,577,222 | 1,638,440 | ||
Fair Value | Level 1 | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash and cash equivalents | 493,473 | 6,886 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 493,473 | 6,886 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Reinsurance payables | 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 | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term investments | 0 | 35,000 | ||
Cash and cash equivalents | 0 | 255,000 | ||
Accrued investment income | 88,331 | 86,004 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 11,206 | 70,779 | ||
Other assets | 13,802 | 53,858 | ||
Total assets | 113,339 | 500,641 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 17,383 | 23,350 | ||
Short-term debt | 43,734 | 28,146 | ||
Long-term debt | 1,003,251 | 994,198 | ||
Reinsurance payables | 0 | 0 | ||
Payables to parent and affiliates | 36,026 | 91,432 | ||
Other liabilities | 135,556 | 189,366 | ||
Separate account liabilities - investment contracts | 102 | 187 | ||
Total liabilities | 1,236,052 | 1,326,679 | ||
Fair Value | Level 3 | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,396,167 | 1,235,842 | ||
Policy loans | 12,558 | 12,719 | ||
Short-term investments | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 59,588 | 63,775 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 1,468,313 | 1,312,336 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 281,582 | 247,986 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Reinsurance payables | 59,588 | 63,775 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Separate account liabilities - investment contracts | 0 | 0 | ||
Total liabilities | 341,170 | 311,761 | ||
Carrying Amount | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,387,012 | 1,231,893 | ||
Policy loans | 12,558 | 12,719 | ||
Short-term investments | 0 | 35,000 | ||
Cash and cash equivalents | 493,473 | 261,886 | ||
Accrued investment income | 88,331 | 86,004 | ||
Reinsurance recoverables | 59,588 | 63,775 | ||
Receivables from parent and affiliates | 11,206 | 70,779 | ||
Other assets | 13,802 | 53,858 | ||
Total assets | 2,065,970 | 1,815,914 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 281,051 | 250,493 | ||
Cash collateral for loaned securities | 17,383 | 23,350 | ||
Short-term debt | 43,734 | 28,101 | ||
Long-term debt | 928,165 | 971,899 | ||
Reinsurance payables | 59,588 | 63,775 | ||
Payables to parent and affiliates | 36,026 | 91,432 | ||
Other liabilities | 135,556 | 189,366 | ||
Separate account liabilities - investment contracts | 102 | 187 | ||
Total liabilities | 1,501,605 | 1,618,603 | ||
Other long-term Investments | Fair Value | Measurement at NAV per share | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost Method Investments, Fair Value Disclosure | 6,400 | 3,400 | ||
Other long-term Investments | Carrying Amount | Measurement at NAV per share | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost Method Investments, Fair Value Disclosure | $ 6,000 | $ 3,100 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 7 | |
Maximum length of time hedged in cash flow hedge (in years) | 18 years | |
Future Policy Benefits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ (8,152) | $ (7,707) |
Prudential Insurance | Reinsurance Recoverables | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 232 | 231 |
Pruco Life | Reinsurance Recoverables | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ 12 | $ 10 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional | $ 153,711,188 | $ 114,937,879 |
Assets | 5,070,664 | 4,896,359 |
Liabilities | (1,941,403) | (1,659,411) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 677,257 | 472,701 |
Assets | 13,348 | 38,249 |
Liabilities | (47,209) | (2,776) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 153,033,931 | 114,465,178 |
Assets | 5,057,316 | 4,858,110 |
Liabilities | (1,894,194) | (1,656,635) |
Interest Rate Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 87,939,425 | 81,872,695 |
Assets | 4,374,658 | 4,439,270 |
Liabilities | (1,065,549) | (1,163,388) |
Interest Rate Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 15,775,000 | 10,825,000 |
Assets | 175,156 | 278,763 |
Liabilities | (160,181) | (135,554) |
Interest Rate Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 975,929 | 498,311 |
Assets | 19,870 | 0 |
Liabilities | (2) | (25,082) |
Foreign Currency Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 12,455 | 1,491 |
Assets | 1 | 6 |
Liabilities | (319) | 0 |
Foreign Currency Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 677,257 | 472,701 |
Assets | 13,348 | 38,249 |
Liabilities | (47,209) | (2,776) |
Foreign Currency Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 151,400 | 130,470 |
Assets | 7,779 | 16,627 |
Liabilities | (7,488) | (635) |
Interest Rate Futures | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,964,000 | 2,474,000 |
Assets | 8,296 | 23,967 |
Liabilities | 0 | 0 |
Equity Future [Member] | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 672,055 | 1,269,044 |
Assets | 2,442 | 0 |
Liabilities | 0 | (5,051) |
Total Return Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 13,841,333 | 12,784,166 |
Assets | 8,517 | 69,827 |
Liabilities | (341,700) | (281,193) |
Equity Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 31,702,334 | 4,610,001 |
Assets | 460,597 | 29,650 |
Liabilities | $ (318,955) | $ (45,732) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting of Financial Assets, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 5,070,517 | $ 4,872,392 |
Gross Amounts Offset in the Statements of Financial Position | (4,919,486) | (4,582,540) |
Net Amounts Presented in the Statements of Financial Position | 151,031 | 289,852 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 151,031 | 289,852 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 0 | 255,000 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 255,000 |
Financial Instruments/Collateral | 0 | (255,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 5,070,517 | 5,127,392 |
Gross Amounts Offset in the Statements of Financial Position | (4,919,486) | (4,582,540) |
Net Amounts Presented in the Statements of Financial Position | 151,031 | 544,852 |
Financial Instruments/Collateral | 0 | (255,000) |
Net Amount | 151,031 | 289,852 |
Offsetting of Financial Liabilities, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 1,941,403 | 1,654,360 |
Gross Amounts Offset in the Statements of Financial Position | (1,941,403) | (1,654,360) |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 1,941,403 | 1,654,360 |
Gross Amounts Offset in the Statements of Financial Position | (1,941,403) | (1,654,360) |
Net Amounts Presented in the Statements 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (801,429) | $ (3,526,514) | $ 1,381 |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 6,152 | 3,006 | 608 |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (11,226) | 10,164 | 1,318 |
Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (37,596) | (3,102) | 10,008 |
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 | 6,152 | 3,006 | 608 |
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 | (11,043) | 9,648 | 1,116 |
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 | (37,596) | (3,102) | 10,008 |
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 | 6,152 | 3,006 | 608 |
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 | (11,043) | 9,648 | 1,116 |
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 | (37,596) | (3,102) | 10,008 |
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 | (801,429) | (3,526,514) | 1,381 |
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 | (183) | 516 | 202 |
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 | 550,797 | (2,219,894) | 20,536 |
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 | (454) | 361 | 115 |
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 | (30,173) | 11,642 | 8,337 |
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 | (183) | 516 | 202 |
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 | 0 | 0 | (3) |
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 | (2,000,297) | (1,755,946) | (3,233) |
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 | 678,698 | 437,323 | (24,371) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | $ 11,745 | $ 14,847 | $ 4,839 |
Net deferred gains (losses) on cash flow hedges for the period | (39,434) | 9,698 | 12,078 |
Amount reclassified into current period earnings | 1,838 | (12,800) | (2,070) |
Ending Balance | $ (25,851) | $ 11,745 | $ 14,847 |
Commitments, Contingent Liabi86
Commitments, Contingent Liabilities and Litigation and Regulatory Matters (Narrative) (Details) $ in Millions | 1 Months Ended | |||
Feb. 29, 2012state | Jan. 31, 2012state | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||||
Range of reasonably possible losses in excess of accruals (less than) | $ 150 | |||
Number of states and jurisdictions that have accepted agreement | state | 20 | 20 | ||
Commercial Mortgage Loans | Commitments | ||||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||||
Commitments to fund commercial loans | 37 | $ 9 | ||
Investments | Commitments | ||||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||||
Commitments to purchase or fund investments | $ 134 | $ 121 |
Reinsurance (Balance Sheet Rein
Reinsurance (Balance Sheet Reinsurance Results) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | $ 563,428 | $ 588,608 | ||
Deferred policy acquisition costs | 4,596,565 | 4,344,361 | $ 749,302 | $ 1,114,431 |
Deferred sales inducements | 1,020,786 | 978,823 | 452,752 | 665,207 |
Value of business acquired | 35,109 | 30,287 | $ 33,640 | $ 39,738 |
Other assets | 121,086 | 169,649 | ||
Policyholders’ account balances | 4,846,152 | 4,736,889 | ||
Future policy benefits | 9,132,569 | 8,686,196 | ||
Reinsurance payables | 262,588 | 275,822 | ||
Other liabilities | 422,636 | 489,007 | ||
Impacts of Reinsurance | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | 563,428 | 588,608 | ||
Deferred policy acquisition costs | 3,766,066 | 3,557,248 | ||
Deferred sales inducements | 540,389 | 520,182 | ||
Value of business acquired | (2,702) | (2,357) | ||
Other assets | 105,167 | 112,802 | ||
Policyholders’ account balances | 2,825,030 | 2,576,357 | ||
Future policy benefits | 5,511,496 | 5,130,753 | ||
Reinsurance payables | 262,588 | 275,822 | ||
Other liabilities | 329,019 | 335,713 | ||
Unaffiliated activity | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance payables | $ 100 | $ 100 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 563,428 | $ 588,608 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 310,758 | 306,191 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 252,383 | 282,326 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 287 | $ 91 |
Reinsurance (Income Statement R
Reinsurance (Income Statement Reinsurance Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | |||
Direct | $ 33,908 | $ 39,326 | $ 33,250 |
Assumed | 32,890 | 860,831 | 0 |
Ceded | (3,225) | (3,318) | (23,463) |
Net premiums | 63,573 | 896,839 | 9,787 |
Policy charges and fee income: | |||
Direct | 622,099 | 647,226 | 743,956 |
Assumed | 1,632,132 | 1,153,752 | 0 |
Ceded | (44,652) | (45,754) | (3,133) |
Net policy charges and fee income | 2,209,579 | 1,755,224 | 740,823 |
Asset administration fees and other income: | |||
Direct | 129,847 | 103,892 | 177,479 |
Assumed | 293,275 | 205,221 | 0 |
Ceded | (9,747) | (9,729) | 0 |
Net asset administration fees and other income | 413,375 | 299,384 | 177,479 |
Realized investment gains (losses), net: | |||
Direct | (1,335,253) | (3,612,578) | 247,525 |
Assumed | 554,686 | (81,510) | 0 |
Ceded | (24,833) | 251,328 | (241,473) |
Realized investment gains (losses), net | (805,400) | (3,442,760) | 6,052 |
Policyholders' benefits (including change in reserves): | |||
Direct | 52,477 | 74,438 | 81,719 |
Assumed | 46,375 | 553,280 | 0 |
Ceded | 15,216 | (23,661) | (21,258) |
Net policyholders' benefits (including change in reserves) | 114,068 | 604,057 | 60,461 |
Interest credited to policyholders’ account balances: | |||
Direct | 9,834 | 74,389 | 225,555 |
Assumed | 24,708 | (1,551) | 0 |
Ceded | (4,262) | (3,949) | 0 |
Net interest credited to policyholders’ account balances | 30,280 | 68,889 | 225,555 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | 725,749 | 563,027 | (6,054) |
Unaffiliated activity | |||
Policy charges and fee income: | |||
Ceded | (2,000) | (2,000) | (3,000) |
Policyholders' benefits (including change in reserves): | |||
Ceded | $ (100) | $ (300) | $ (100) |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | $ (314,948) | ||
Income tax benefit (expense) | (1,201,099) | $ 680,493 | $ 8,285 |
Ending Balance | (90,124) | (314,948) | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | (78) | (65) | (30) |
Change in OCI before reclassifications | 109 | (20) | (54) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Income tax benefit (expense) | (38) | 7 | 19 |
Ending Balance | (7) | (78) | (65) |
Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | (314,870) | 46,231 | 84,652 |
Change in OCI before reclassifications | 320,182 | (469,356) | (54,279) |
Amounts reclassified from AOCI | 3,177 | (86,184) | (4,831) |
Income tax benefit (expense) | (98,606) | 194,439 | 20,689 |
Ending Balance | (90,117) | (314,870) | 46,231 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | (314,948) | 46,166 | 84,622 |
Change in OCI before reclassifications | 320,291 | (469,376) | (54,333) |
Amounts reclassified from AOCI | 3,177 | (86,184) | (4,831) |
Income tax benefit (expense) | (98,644) | 194,446 | 20,708 |
Ending Balance | (90,124) | (314,948) | 46,166 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | 12,000 | 15,000 | |
Ending Balance | $ (26,000) | $ 12,000 | $ 15,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ (3,177) | $ 86,184 | $ 4,831 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (3,177) | 86,184 | 4,831 |
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges - Currency/Interest rate | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net unrealized investment gains (losses) | (1,838) | 12,800 | 2,070 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net unrealized investment gains (losses) | (1,339) | 73,384 | 2,761 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (3,177) | 86,184 | 4,831 |
Reclassification out of Accumulated Other Comprehensive Income | Total Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ (3,177) | $ 86,184 | $ 4,831 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (314,948) | ||
Ending Balance | (90,124) | $ (314,948) | |
OTTI | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,261) | 9 | $ 1 |
Net investment gains (losses) on investments arising during the period | 11,328 | 378 | (9) |
Reclassification adjustment for (gains) losses included in net income | 2,172 | 556 | 17 |
Reclassification adjustment for OTTI losses excluded from net income | 72 | (2,204) | 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 | 0 | 0 |
Ending Balance | 12,311 | (1,261) | 9 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (2,133) | (3) | 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 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 1,125 | (2,130) | (3) |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (1,008) | (2,133) | (3) |
OTTI | Future Policy Benefits and Other Liabilities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (522) | 0 | 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 |
Reclassification adjustment for OTTI losses excluded from 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 | 365 | (522) | 0 |
Ending Balance | (157) | (522) | 0 |
OTTI | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 1,387 | 14 | 16 |
Net investment gains (losses) on investments arising during the period | (3,481) | (132) | 3 |
Reclassification adjustment for (gains) losses included in net income | (667) | (195) | (6) |
Reclassification adjustment for OTTI losses excluded from net income | (22) | 771 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (352) | 746 | 1 |
Impact of net unrealized investment (gains) losses on future policy benefits | (128) | 183 | 0 |
Ending Balance | (3,263) | 1,387 | 14 |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (2,529) | 20 | 17 |
Net investment gains (losses) on investments arising during the period | 7,847 | 246 | (6) |
Reclassification adjustment for (gains) losses included in net income | 1,505 | 361 | 11 |
Reclassification adjustment for OTTI losses excluded from net income | 50 | (1,433) | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 773 | (1,384) | (2) |
Impact of net unrealized investment (gains) losses on future policy benefits | 237 | (339) | 0 |
Ending Balance | $ 7,883 | $ (2,529) | $ 20 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (314,948) | ||
Ending Balance | (90,124) | $ (314,948) | |
All Other | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (442,314) | 107,451 | $ 198,922 |
Net investment gains (losses) on investments arising during the period | 376,012 | (637,597) | (86,623) |
Reclassification adjustment for (gains) losses included in net income | (5,349) | 85,628 | (4,848) |
Reclassification adjustment for OTTI losses excluded from net income | (72) | 2,204 | 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 | 0 | 0 |
Ending Balance | (71,723) | (442,314) | 107,451 |
All Other | Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (31,251) | (30,465) | (59,045) |
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 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | 0 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (50,961) | (786) | 28,580 |
Impact of net unrealized investment (gains) losses on future policy benefits | 0 | 0 | 0 |
Ending Balance | (82,212) | (31,251) | (30,465) |
All Other | Future Policy Benefits and Other Liabilities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (5,664) | (4,596) | (8,372) |
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 |
Reclassification adjustment for OTTI losses excluded from 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 | (11,333) | (1,068) | 3,776 |
Ending Balance | (16,997) | (5,664) | (4,596) |
All Other | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 166,888 | (26,179) | (46,870) |
Net investment gains (losses) on investments arising during the period | (115,538) | 223,159 | 30,319 |
Reclassification adjustment for (gains) losses included in net income | 1,644 | (29,970) | 1,697 |
Reclassification adjustment for OTTI losses excluded from net income | 22 | (771) | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 15,949 | 275 | (10,003) |
Impact of net unrealized investment (gains) losses on future policy benefits | 3,967 | 374 | (1,322) |
Ending Balance | 72,932 | 166,888 | (26,179) |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (312,341) | 46,211 | 84,635 |
Net investment gains (losses) on investments arising during the period | 260,474 | (414,438) | (56,304) |
Reclassification adjustment for (gains) losses included in net income | (3,705) | 55,658 | (3,151) |
Reclassification adjustment for OTTI losses excluded from net income | (50) | 1,433 | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (35,012) | (511) | 18,577 |
Impact of net unrealized investment (gains) losses on future policy benefits | (7,366) | (694) | 2,454 |
Ending Balance | $ (98,000) | $ (312,341) | $ 46,211 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||||||||
Other long-term investments | $ 335,811,000 | $ 551,931,000 | $ 335,811,000 | $ 551,931,000 | ||||||
Net investment income | 422,809,000 | 338,370,000 | $ 139,430,000 | |||||||
Contributed capital | 0 | 860,573,000 | 0 | |||||||
Prudential Insurance | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Stock option program plan expense | 100,000 | 100,000 | 100,000 | |||||||
Deferred compensation program expense | 900,000 | 800,000 | 600,000 | |||||||
Pension plan expense | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Welfare plan expense | $ 2,000,000 | 2,000,000 | 2,000,000 | |||||||
Defined contribution plan employer matching contribution percent | 4.00% | |||||||||
Defined contribution plan, cost recognized | $ 500,000 | 500,000 | 500,000 | |||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Corporate Expenses | 14,000,000 | 10,000,000 | 11,000,000 | |||||||
Accrued interest receivable related to long-term notes | 200,000 | 100,000 | 200,000 | 100,000 | ||||||
Revenue related to long-tern notes receivable | 700,000 | 900,000 | 1,000,000 | |||||||
Interest expense related to loans payable | 66,000,000 | 53,000,000 | 0 | |||||||
Affiliated Entity | PAIST | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Allocated lease expense | 3,000,000 | 4,000,000 | 4,000,000 | |||||||
Allocated sub-lease rental income | 0 | 0 | 0 | |||||||
Affiliated Entity | PAD | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Commissions and fees | 109,000,000 | 108,000,000 | 143,000,000 | |||||||
Affiliated Entity | ASTISI and Prudential Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue administrative sharing agreement | 111,000,000 | 112,000,000 | 173,000,000 | |||||||
Affiliated Entity | PGIM | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 13,000,000 | 11,000,000 | 5,000,000 | |||||||
Prudential Financial Joint Ventures | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other long-term investments | 111,000,000 | 102,000,000 | 111,000,000 | 102,000,000 | ||||||
Net investment income | 9,000,000 | $ 5,000,000 | 100,000 | |||||||
Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 9,000,000,000 | 9,000,000,000 | ||||||||
Dividends | $ 180,000,000 | $ 270,000,000 | ||||||||
PAI | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contributed capital | $ 8,422,000,000 | $ 0 | $ 0 | |||||||
Return of capital | $ 650,000,000 | $ 200,000,000 | $ 100,000,000 | $ 1,140,000,000 |
Related Party Transactions (Lea
Related Party Transactions (Leases) (Details) - Affiliated Entity - PAIST $ in Thousands | Dec. 31, 2017USD ($) |
Lease | |
2,018 | $ 2,992 |
2,019 | 2,742 |
2,020 | 2,992 |
2,021 | 2,992 |
2,022 | 2,992 |
2023 and thereafter | 0 |
Total | 14,710 |
Sub-Lease | |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2023 and thereafter | 0 |
Total | $ 0 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 38,145 | $ 40,925 |
U.S. Dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 34,268 | 0 |
U.S. Dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.77% | |
U.S. Dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 3.12% | |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 3,877 | $ 40,925 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.31% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A97
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Realized investment gains (losses), net of tax | $ (805,400) | $ (3,442,760) | $ 6,052 |
Gibraltar Life Insurance Co Ltd August-16 Sale | |||
Related Party Transaction [Line Items] | |||
Fair Value | 11,559 | ||
Book Value | 11,485 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | 48 | ||
Prudential Insurance September-16 Sale | |||
Related Party Transaction [Line Items] | |||
Fair Value | 47,066 | ||
Book Value | 36,639 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | 6,777 | ||
Pruco Re September-16 Transfer in | |||
Related Party Transaction [Line Items] | |||
Fair Value | 91,586 | ||
Book Value | 80,732 | ||
APIC, Net of Tax Increase/ (Decrease) | (7,055) | ||
Realized investment gains (losses), net of tax | $ 0 | ||
Pruco Life January 17 Sale | |||
Related Party Transaction [Line Items] | |||
Fair Value | 29 | ||
Book Value | 29 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | 0 | ||
Prudential Insurance October 17 Sale | |||
Related Party Transaction [Line Items] | |||
Fair Value | 131,953 | ||
Book Value | 128,529 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | 2,226 | ||
Gibraltar Universal Life Reinsurance Company October 17 Purchase | |||
Related Party Transaction [Line Items] | |||
Fair Value | 113,686 | ||
Book Value | 96,583 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | (11,117) | ||
Prudential Insurance December 17 Purchase | |||
Related Party Transaction [Line Items] | |||
Fair Value | 171,363 | ||
Book Value | 171,363 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | 0 | ||
Prudential Insurance December 17 Sale | |||
Related Party Transaction [Line Items] | |||
Fair Value | 13,793 | ||
Book Value | 7,113 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net of tax | $ 4,342 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 971,899 | $ 1,000,000 |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 28,101 |
Interest Rates | 1.89% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 18,734 | 18,734 |
Interest Rates | 2.60% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 25,000 |
Interest Rates | 2.60% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 46,835 |
Interest Rates | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 18,734 | 18,734 |
Interest Rates | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 37,468 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 103,039 | 103,039 |
Interest Rates | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rates | 3.47% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 28,102 | 28,102 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 37,468 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 46,835 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 30,000 | 30,000 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 50,000 | 50,000 |
Interest Rates | 3.87% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 25,000 |
Interest Rates | 3.49% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 26,000 | 26,000 |
Interest Rates | 2.59% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 25,000 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 20,000 | 20,000 |
Interest Rates | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 25,000 |
Interest Rates | 3.49% | |
Prudential Retirement Insurance & Annuity Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 34,000 | $ 34,000 |
Interest Rates | 3.09% |
Quarterly Results of Operatio99
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 314,778 | $ 1,949,155 | $ (726,666) | $ 766,669 | $ (181,460) | $ 719,985 | $ (892,563) | $ 201,095 | $ 2,303,936 | $ (152,943) | $ 1,073,571 |
Total benefits and expenses | 367,400 | 597,242 | (165,242) | 386,941 | 122,236 | (149,250) | 1,215,062 | 429,590 | 1,186,341 | 1,617,638 | 908,639 |
Income (loss) from operations before income taxes | (52,622) | 1,351,913 | (561,424) | 379,728 | (303,696) | 869,235 | (2,107,625) | (228,495) | 1,117,595 | (1,770,581) | 164,932 |
Net income (loss) | $ (884,205) | $ 938,926 | $ (400,583) | $ 262,358 | $ (200,842) | $ 569,649 | $ (1,316,230) | $ (142,665) | $ (83,504) | $ (1,090,088) | $ 173,217 |
Quarterly Results of Operati100
Quarterly Results of Operations (Unaudited) Quarterly Results of Operations (Unaudited) (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 882 |
Contract Withdrawal Provisions
Contract Withdrawal Provisions (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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% |