XML 26 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Effects of Reinsurance
The financial statement impacts of these transactions were as follows:

Effected 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)
$
10,702

$
4,166

$
(7,719
)
$
7,149

Cash and cash equivalents
496

0

12

508

Deferred policy acquisition costs
4,565

0

(3,449
)
1,116

Reinsurance recoverables
24,781

(6,312
)
10,267

28,736

Deferred sales inducements
550

0

(550
)
0

Other assets
94

0

211

305

Income taxes
0

0

23

23

TOTAL ASSETS
151,859

(2,146
)
(1,205
)
148,508

LIABILITIES AND EQUITY
 
 
 
 
LIABILITIES
 
 
 
 
Income taxes
$
91

$
17

$
0

$
108

Short-term and long-term debt to affiliates(2)
1,385

0

(1,384
)
1

Other liabilities
870

0

0

870

TOTAL LIABILITIES
147,554

17

(1,384
)
146,187

EQUITY
 
 
 
 
Retained Earnings(3)
3,337

(2,163
)
258

1,432

Accumulated other comprehensive income
180

0

(79
)
101

TOTAL EQUITY
4,305

(2,163
)
179

2,321

TOTAL LIABILITIES AND EQUITY
151,859

(2,146
)
(1,205
)
148,508


Significant Non-Cash Transactions
(1)
The decline in total investments includes non-cash activities of $7.7 billion for asset transfers related to the reinsurance transaction with PALAC and Prudential Insurance, partially offset by $4.2 billion of assets received related to the recapture transaction with Pruco Re.
(2)
The Company received ceding commissions of $3.6 billion and $0.4 billion from PALAC and Prudential Insurance, respectively, of which $1.1 billion and $0.1 billion were in the form of reassignment of debt to PALAC and Prudential Insurance, respectively.
(3)
Retained earnings includes dividends of $2.6 billion to Prudential Insurance, and then distributed to Prudential Financial, as part of the Variable Annuities Recapture.

Interim Statement of Operations and Comprehensive Income (Loss)
For the Three and Six Months Ended June 30, 2016
 
Impacts of Recapture
Impacts of Reinsurance
Total Impacts
 
(in millions)
REVENUES
 
 
 
Premiums
$
0

$
(880
)
$
(880
)
Realized investment gains (losses), net
(2,146
)
2,951

805

TOTAL REVENUES
(2,146
)
2,071

(75
)
BENEFITS AND EXPENSES
 
 
 
Policyholders' benefits
0

(547
)
(547
)
General, administrative and other expenses
0

(211
)
(211
)
TOTAL BENEFITS AND EXPENSES
0

(758
)
(758
)
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES
(2,146
)
2,829

683

Income tax expenses (benefit)
17

(23
)
(6
)
NET INCOME (LOSS)
$
(2,163
)
$
2,852

$
689


Affiliated Asset Transfers
Affiliate
 
Period
 
Transaction
 
Security Type
 
Fair Value
 
Book Value
 
APIC and Retained Earnings Increase/(Decrease)
 
Realized Investment Gain/(Loss), Net
 
Derivative Gain/(Loss)
 
 
 
 
 
 
 
 
(in millions)
Pruco Re
 
Apr - June 2016
 
Purchase
 
Derivatives
 
$
4,166

 
$
4,166

 
$
0

 
$
0

 
$
0

PALAC
 
Apr - June 2016
 
Sale
 
Fixed Maturity, Trading Account Assets, Commercial Mortgages, Derivatives and JV/LP Investments
 
$
(6,994
)
 
$
(6,872
)
 
$
0

 
$
122

 
$
0

Prudential Insurance
 
Apr - June 2016
 
Dividend
 
Fixed Maturity
 
$
(19
)
 
$
(19
)
 
$
(19
)
 
$
0

 
$
0

Prudential Insurance
 
Apr - June 2016
 
Sale
 
Fixed Maturity, Trading Account Assets, Equity Security, Commercial Mortgages and Derivatives
 
$
(717
)
 
$
(703
)
 
$
15

 
$
0

 
$
0