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REINSURANCE
 12 Months Ended
Dec. 31, 2014
Reinsurance Disclosures [Abstract]  
REINSURANCE
REINSURANCE

Effective October 1, 2014 and September 30, 2013, we entered into coinsurance reinsurance transactions whereby we ceded 16.7% and 33.3%, respectively, of the hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business. We recorded the gain related to these transactions as a deferred profit liability on business sold through reinsurance on our consolidated balance sheets. The deferred profit liability of $820 million, as of December 31, 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 $838 million as of December 31, 2014.

Effective December 31, 2014, we entered into a retrocession coinsurance reinsurance transaction whereby we assumed 8.35% of the reinsured hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business through our subsidiary CAIC. The agreement had no impact on the consolidated balance sheet and statement of operations as of December 31, 2014.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance for the years ended December 31.
(In millions)
2014
2013
Direct premium income
 
$
19,412

 
 
$
20,233

 
Ceded to other companies:
 
 
 
 
 
 
    Ceded Aflac Japan closed medical block
 
(311
)
 
 
(76
)
 
    Other
 
(39
)
 
 
(34
)
 
Assumed from other companies
 
10

 
 
12

 
Net premium income
 
$
19,072

 
 
$
20,135

 
 
 
 
 
 
 
 
Direct benefits and claims
 
$
13,235

 
 
$
13,903

 
Ceded benefits and change in reserves for future benefits:
 
 
 
 
 
 
    Ceded Aflac Japan closed medical block
 
(276
)
 
 
(67
)
 
    Other
 
(27
)
 
 
(31
)
 
Assumed from other companies
 
5

 
 
8

 
Benefits and claims, net
 
$
12,937

 
 
$
13,813

 


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.