XML 81 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
REINSURANCE
 9 Months Ended
Sep. 30, 2014
Reinsurance Disclosures [Abstract]  
REINSURANCE
REINSURANCE

Effective September 30, 2013, we entered into a coinsurance reinsurance transaction whereby we ceded 33.3% of the hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business. We recorded the gain related to the transaction as a deferred profit liability on business sold through reinsurance on our consolidated balance sheets. The remaining deferred profit liability of $593 million, as of September 30, 2014, included in future policy benefits in the consolidated balance sheet, is being amortized into income over the expected lives of the policies. The corresponding reinsurance recoverable is included in other assets in the consolidated balance sheet and totaled $608 million as of September 30, 2014.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance.
(In millions)
Three Months Ended
September 30, 2014
 
Nine Months Ended
September 30, 2014
Direct premium income
 
$
4,918

 
 
 
$
14,820

 
Ceded to other companies:
 
 
 
 
 
 
 
    Ceded Aflac Japan closed medical block
 
(70
)
 
 
 
(215
)
 
    Other
 
(10
)
 
 
 
(30
)
 
Assumed from other companies
 
3

 
 
 
8

 
Net premium income
 
$
4,841

 
 
 
$
14,583

 
 
 
 
 
 
 
 
 
Direct benefits and claims
 
$
3,425

 
 
 
$
10,075

 
Ceded benefits and change in reserves for future benefits:
 
 
 
 
 
 
 
    Ceded Aflac Japan closed medical block
 
(63
)
 
 
 
(192
)
 
    Other
 
(9
)
 
 
 
(22
)
 
Assumed from other companies
 
2

 
 
 
7

 
Benefits and claims, net
 
$
3,355

 
 
 
$
9,868

 


Reinsurance does not relieve us from our obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, we remain liable for the reinsured claims.