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Reinsurance
 6 Months Ended
Jun. 30, 2020
Insurance [Abstract]  
Reinsurance
6. Reinsurance

Reinsurance transactions—On June 18, 2020, we entered into a funds withheld coinsurance agreement effective June 1, 2020 with Jackson National Life Insurance Company (Jackson) to reinsure a block of fixed and fixed indexed annuities. Additionally, as part of the transaction, we made a $500 million equity investment in an indirect parent of Jackson, which closed on July 17, 2020. The following summarizes the transaction:
(In millions)
Funds Withheld
Liabilities assumed
$
27,439

Less: Net consideration received
28,805

Unearned revenue reserve1
$
(1,366
)
 
 
1 Included within interest sensitive contract liabilities on the condensed consolidated balance sheets.


Unearned revenue reserve balances are amortized over the life of the reinsurance agreements on a basis consistent with our DAC amortization policy.

The following summarizes the effect of reinsurance on premiums and future policy and other policy benefits on the condensed consolidated statements of income (loss):
 
Three months ended June 30,
 
Six months ended June 30,
(In millions)
2020
 
2019
 
2020
 
2019
Premiums
 
 
 
 
 
 
 
Direct
$
281

 
$
765

 
$
1,382

 
$
2,744

Reinsurance assumed
109

 
62

 
183

 
136

Reinsurance ceded
(35
)
 
(40
)
 
(70
)
 
(93
)
Total premiums
$
355

 
$
787

 
$
1,495

 
$
2,787

 
 
 
 
 
 
 
 
Future policy and other policy benefits
 
 
 
 
 
 
 
Direct
$
588

 
$
1,132

 
$
2,019

 
$
3,456

Reinsurance assumed
163

 
112

 
209

 
236

Reinsurance ceded
(77
)
 
(133
)
 
(198
)
 
(252
)
Total future policy and other policy benefits
$
674

 
$
1,111

 
$
2,030

 
$
3,440