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Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2017
Reinsurance Disclosures [Abstract]  
Reinsurance Impact on Balance Sheet
Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2017 and December 31, 2016 were as follows:
 
June 30, 2017
 
December 31, 2016
 
(in thousands)
Reinsurance recoverables
$
31,695,151

 
$
28,674,226

Policy loans
(89,978
)
 
(87,112
)
Deferred policy acquisition costs
(6,855,073
)
 
(6,482,889
)
Deferred sales inducements
(684,452
)
 
(615,117
)
Other assets(1)
243,994

 
226,347

Policyholders’ account balances
4,993,261

 
4,978,859

Future policy benefits
3,056,354

 
2,833,327

Other liabilities(2)
379,104

 
410,376



(1)
“Other assets” includes $0.1 million of unaffiliated activity as of both June 30, 2017 and December 31, 2016.
(2)
“Other liabilities” includes $31 million and $28 million of unaffiliated activity as of June 30, 2017 and December 31, 2016, respectively.
Reinsurance Recoverable by Affiliate
The reinsurance recoverables by counterparty are broken out below:
 
June 30, 2017
 
December 31, 2016
 
(in thousands)
PAR U
$
10,788,458

 
$
10,514,125

PALAC
9,049,135

 
7,706,860

PURC
3,364,468

 
3,153,449

PARCC
2,561,300

 
2,589,397

Prudential Insurance
1,386,089

 
976,652

PAR Term
1,467,142

 
1,403,738

Prudential of Taiwan
1,347,992

 
1,246,241

UPARC
802,334

 
467,904

Term Re
780,016

 
593,084

GUL Re
92,284

 
0

Unaffiliated
55,933

 
22,776

Total reinsurance recoverables
$
31,695,151

 
$
28,674,226
Reinsurance Impact On Income Statement
Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016(1)
 
2017
 
2016(1)
 
(in thousands)
Premiums:
 
 
 
 
 
 
 
Direct
$
433,616

 
$
408,518

 
$
851,609

 
$
799,698

Assumed(2)
65

 
1

 
131

 
149

Ceded
(416,604
)
 
(1,260,611
)
 
(828,906
)
 
(1,634,024
)
Net premiums
17,077

 
(852,092
)
 
22,834

 
(834,177
)
Policy charges and fee income:
 
 
 
 
 
 
 
Direct
690,307

 
551,741

 
1,471,868

 
1,284,631

Assumed
115,955

 
109,910

 
232,294

 
304,223

Ceded(3)
(938,787
)
 
(602,720
)
 
(1,708,685
)
 
(1,003,361
)
Net policy charges and fee income
(132,525
)
 
58,931

 
(4,523
)
 
585,493

Net investment income:
 
 
 
 
 
 
 
Direct
91,993

 
79,518

 
182,394

 
185,656

Assumed
368

 
351

 
728

 
695

Ceded
(1,320
)
 
(1,250
)
 
(2,466
)
 
(2,280
)
Net investment income
91,041

 
78,619

 
180,656

 
184,071

Asset administration fees:
 
 
 
 
 
 
 
Direct
83,994

 
76,600

 
164,993

 
149,391

Assumed
0

 
0

 
0

 
0

Ceded
(79,604
)
 
(72,996
)
 
(156,416
)
 
(72,996
)
Net asset administration fees
4,390

 
3,604

 
8,577

 
76,395

Other income:
 
 
 
 
 
 
 
Direct
14,501

 
12,077

 
29,939

 
23,772

Assumed(4)
(342
)
 
425

 
209

 
384

Ceded
(11
)
 
0

 
(23
)
 
0

Amortization of reinsurance income
0

 
(21,101
)
 
0

 
(19,233
)
Net other income
14,148

 
(8,599
)
 
30,125

 
4,923

Realized investment gains (losses), net:
 
 
 
 
 
 
 
Direct
(1,569,801
)
 
(1,228,076
)
 
(947,675
)
 
(2,762,428
)
Assumed
0

 
39

 
0

 
0

Ceded(5)
1,846,391

 
2,088,499

 
1,191,686

 
3,678,041

Realized investment gains (losses), net
276,590

 
860,462

 
244,011

 
915,613

Policyholders’ benefits (including change in reserves):
 
 
 
 
 
 
 
Direct
548,727

 
178,623

 
1,234,222

 
796,766

Assumed(6)
118,499

 
211,699

 
247,636

 
472,575

Ceded(7)
(871,243
)
 
(862,932
)
 
(1,614,388
)
 
(1,641,221
)
Net policyholders’ benefits (including change in reserves)
(204,017
)
 
(472,610
)
 
(132,530
)
 
(371,880
)
Interest credited to policyholders’ account balances:
 
 
 
 
 
 
 
Direct
10,431

 
105,629

 
109,348

 
319,111

Assumed
33,895

 
31,583

 
67,829

 
65,418

Ceded
1,641

 
(109,236
)
 
(86,450
)
 
(170,122
)
Net interest credited to policyholders’ account balances
45,967

 
27,976

 
90,727

 
214,407

Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization
(104,219
)
 
(480,948
)
 
(466,455
)
 
(573,016
)

(1)
Prior period amounts in the table above have been revised to correct previously reported numbers. These prior periods revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.
(2)
"Premiums assumed" includes $0.1 million and $0.0 million of unaffiliated activity for the three months ended June 30, 2017 and 2016, respectively, and $0.1 million for both the six months ended June 30, 2017 and 2016.
(3)
"Policy charges and fee income ceded" includes $0.4 million and $0.3 million of unaffiliated activity for the three months ended June 30, 2017 and 2016, respectively, and $1 million and $0.5 million for the six months ended June 30, 2017 and 2016, respectively.
(4)
"Other income assumed" includes $(0.3) million and $0.4 million of unaffiliated activity for the three months ended June 30, 2017 and 2016, respectively, and $0.2 million and $0.4 million for the six months ended June 30, 2017 and 2016, respectively.
(5)
“Realized investment gains (losses), net ceded” includes $31 million and $21 million of unaffiliated activity for the three months ended June 30, 2017 and 2016, respectively, and $22 million and $46 million for the six months ended June 30, 2017 and 2016, respectively.
(6)
"Policyholders' benefits (including change in reserves) assumed" includes $0.0 million of unaffiliated activity for both the three months ended June 30, 2017 and 2016, and $0.3 million and $0.2 million for the six months ended June 30, 2017 and 2016, respectively.
(7)
"Policyholders' benefits (including change in reserves) ceded" includes $3 million of unaffiliated activity for both the three months ended June 30, 2017 and 2016, and $6 million and $5 million for the six months ended June 30, 2017 and 2016, respectively.
Gross and Net Life Insurance in Force
The gross and net amounts of life insurance face amount in force as of June 30, 2017 and 2016 were as follows:
 
2017
 
2016
 
(in thousands)
Direct gross life insurance face amount in force
$
854,074,460

 
$
799,112,347

Assumed gross life insurance face amount in force
42,278,700

 
43,205,999

Reinsurance ceded
(829,765,651
)
 
(779,268,303
)
Net life insurance face amount in force
$
66,587,509

 
$
63,050,043