REINSURANCE (Tables)

3 Months Ended

Mar. 31, 2021

The effects of all reinsurance agreements on the consolidated statement of financial condition were as follows:


	March 31,
	2021
Policy liabilities:
Direct	$	61,072,018
Assumed(1)	41,535,206
Total policy liabilities	102,607,224
Ceded(2)	(15,657,675)
Net policy liabilities	$	86,949,549

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(1)Includes related party balance of $7.6 billion as of March 31, 2021.

(2)Reported within reinsurance recoverable within the consolidated statement of financial condition.

The effects of reinsurance on the consolidated statements of operations were as follows:


	Three Months Ended
	March 31,
	2021
Premiums:
Direct	$	14,175
Assumed(1)	1,280,753
Ceded	(118,786)
Net premiums	$	1,176,142

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(1)Includes related party balances of $2.7 million.

Reinsurance Recoverable and Funds Withheld Receivable at Interest by Credit Quality Indicator


	As of March 31, 2021
A.M. Best Rating(1)	Reinsurance recoverable and funds withheld receivable at interest(2)		Credit enhancements(3)		Net reinsurance credit exposure
A++	$	9,690	$	—	$	9,690
A+	2,056,048		—		2,056,048
A	2,848,967		—		2,848,967
A-	3,379,459		2,933,922		445,537
B++	35,321		—		35,321
B+	3,935		—		3,935
B	12,218		—		12,218
B-	2,665		—		2,665
Not rated(4)	10,438,235		10,512,242		—
Total	$	18,786,538	$	13,446,164	$	5,414,381

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(1)Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.

(2)At amortized cost, excluding any associated embedded derivative assets and liabilities

(3)Includes funds withheld payable at interest and deferred intangible reinsurance assets and liabilities.

(4)Includes $10.4 billion associated with cessions to Ivy Re Limited, a Bermuda insurance company, and a subsidiary of Ivy Co-Invest Vehicle LLC, an unaffiliated co-investment vehicle that participates in qualifying reinsurance transactions sourced by Global Atlantic.