10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 ________________________________________

FORM 10-Q

________________________________________

ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

OR

¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from              to             

Commission file number 033-37587        

____________________________________________________________ 

Pruco Life Insurance Company

(Exact name of Registrant as specified in its charter)

Arizona	22-1944557
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

213 Washington Street

Newark, New Jersey 07102

(973) 802-6000

(Address and Telephone Number of Registrant's Principal Executive Offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer", "accelerated filer", "smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ¨    No  x

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Not Applicable	Not Applicable	Not Applicable

As of May 9, 2019, 250,000 shares of the registrant’s Common Stock (par value $10) were outstanding. As of such date, The Prudential Insurance Company of America, a New Jersey corporation, owned all of the registrant’s Common Stock.

Pruco Life Insurance Company meets the conditions set

forth in General Instruction (H) (1) (a) and (b) on Form 10-Q and

is therefore filing this Form 10-Q in the reduced disclosure format.

TABLE OF CONTENTS

		Page Number
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2019 and December 31, 2018	4
	Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2018	5
	Unaudited Interim Consolidated Statements of Equity for the three months ended March 31, 2019 and 2018	6
	Unaudited Interim Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018	7
	Notes to Unaudited Interim Consolidated Financial Statements	8
	1.    Business and Basis of Presentation	8
	2.    Significant Accounting Policies and Pronouncements	9
	3.    Investments	11
	4.    Derivative Instruments	20
	5.    Fair Value of Assets and Liabilities	25
	6.    Reinsurance	33
	7.    Income Taxes	38
	8.    Equity	38
	9.    Related Party Transactions	41
	10.   Commitments and Contingent Liabilities	43
	11.   Revision to Prior Year Information	45
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4.	Controls and Procedures	54
PART II—OTHER INFORMATION		55
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 6.	Exhibits	56
SIGNATURES		57

2

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this Quarterly Report on Form 10-Q, including but not limited to those in Management’s Discussion and Analysis of Financial Condition and Results of Operations, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Pruco Life Insurance Company and its subsidiary. There can be no assurance that future developments affecting Pruco Life Insurance Company and its subsidiary will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; (2) losses on insurance products due to mortality experience or policyholder behavior experience that differs significantly from our expectations when we price our products; (3) changes in interest rates and equity prices that may (a) adversely impact the profitability of our products, the value of separate accounts supporting these products or the value of assets we manage, (b) result in losses on derivatives we use to hedge risk or increase collateral posting requirements and (c) limit opportunities to invest at appropriate returns; (4) guarantees within certain of our products which are market sensitive and may decrease our earnings or increase the volatility of our results of operations or financial position; (5) liquidity needs resulting from (a) derivative collateral market exposure, (b) asset/liability mismatches, (c) the lack of available funding in the financial markets or (d) unexpected cash demands due to severe mortality calamity or lapse events; (6) financial or customer losses, or regulatory and legal actions, due to inadequate or failed processes or systems, external events and human error or misconduct such as (a) disruption of our systems and data, (b) an information security breach, (c) a failure to protect the privacy of sensitive data or (d) reliance on third parties; (7) changes in the regulatory landscape, including related to (a) financial sector regulatory reform (b) changes in tax laws, (c) fiduciary rules and other standards of care, (d) state insurance laws and developments regarding group-wide supervision, capital and reserves, and (e) privacy and cybersecurity regulation; (8) technological changes which may adversely impact companies in our investment portfolio or cause insurance experience to deviate from our assumptions; (9) ratings downgrades; (10) market conditions that may adversely affect the sales or persistency of our products; (11) competition; and (12) reputational damage. Pruco Life Insurance Company does not intend, and is under no obligation, to update any particular forward-looking statement included in this document. See “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2018 for discussion of certain risks relating to our business and investment in our securities.

3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Financial Position

March 31, 2019 and December 31, 2018 (in thousands, except share amounts)

	March 31, 2019		December 31, 2018
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2019 – $5,468,161; 2018 - $5,244,903)	$	5,606,209	$	5,199,595
Fixed maturities, trading, at fair value (amortized cost: 2019 – $44,759; 2018 – $44,759)	43,000		41,627
Equity securities, at fair value (cost: 2019 – $28,920; 2018 – $31,824)	34,747		36,922
Policy loans	1,251,094		1,236,077
Commercial mortgage and other loans	1,212,618		1,209,150
Other invested assets (includes $88,109 and $120,717 measured at fair value at March 31, 2019 and December 31, 2018, respectively)	358,288		377,429
Total investments	8,505,956		8,100,800
Cash and cash equivalents	403,283		416,840
Deferred policy acquisition costs	1,675,860		1,613,922
Accrued investment income	89,358		88,278
Reinsurance recoverables	36,106,323		34,682,127
Receivables from parent and affiliates	278,050		289,580
Income taxes receivable	29,763		46,102
Other assets	378,154		365,219
Separate account assets	128,998,408		119,077,916
TOTAL ASSETS	$	176,465,155	$	164,680,784
LIABILITIES AND EQUITY
LIABILITIES
Policyholders’ account balances	$	22,209,376	$	22,059,692
Future policy benefits	20,943,806		19,476,394
Cash collateral for loaned securities	10,334		11,063
Payables to parent and affiliates	217,073		229,345
Other liabilities	1,133,756		1,093,143
Separate account liabilities	128,998,408		119,077,916
TOTAL LIABILITIES	173,512,753		161,947,553
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10)
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding)	2,500		2,500
Additional paid-in capital	1,146,588		1,146,592
Retained earnings	1,699,109		1,612,435
Accumulated other comprehensive income (loss)	104,205		(28,296		)
TOTAL EQUITY	2,952,402		2,733,231
TOTAL LIABILITIES AND EQUITY	$	176,465,155	$	164,680,784

See Notes to Unaudited Interim Consolidated Financial Statements

4

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2019 and 2018 (in thousands)

 

	Three Months Ended March 31,
	2019			2018
REVENUES
Premiums	$	13,994		$	7,915
Policy charges and fee income	139,189			129,155
Net investment income	93,250			77,915
Asset administration fees	3,657			3,473
Other income	20,957			19,296
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(2,784		)	(594		)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income	(379		)	0
Other realized investment gains (losses), net	(45,472		)	(48,448		)
Total realized investment gains (losses), net	(48,635		)	(49,042		)
TOTAL REVENUES	222,412			188,712
BENEFITS AND EXPENSES
Policyholders’ benefits	39,478			51,736
Interest credited to policyholders’ account balances	44,197			40,798
Amortization of deferred policy acquisition costs	19,179			26,145
General, administrative and other expenses	47,944			60,790
TOTAL BENEFITS AND EXPENSES	150,798			179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	71,614			9,243
Income tax expense (benefit)	(16,880		)	(2,699		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	88,494			11,942
Equity in earnings of operating joint venture, net of taxes	(706		)	(638		)
NET INCOME (LOSS)	$	87,788		$	11,304
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	6,049			(923		)
Net unrealized investment gains (losses)	160,085			(145,051		)
Total	166,134			(145,974		)
Less: Income tax expense (benefit) related to other comprehensive income (loss)	33,633			(30,700		)
Other comprehensive income (loss), net of tax	132,501			(115,274		)
COMPREHENSIVE INCOME (LOSS)	$	220,289		$	(103,970	)

See Notes to Unaudited Interim Consolidated Financial Statements

5

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Equity

Three Months Ended March 31, 2019 and 2018 (in thousands)

 

	Common   Stock		Additional   Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive   Income (Loss)			Total Equity
Balance, December 31, 2018	$	2,500	$	1,146,592		$	1,612,435		$	(28,296	)	$	2,733,231
Cumulative effect of adoption of accounting changes(1)						(1,114		)	0			(1,114		)
Contributed capital			0									0
Contributed (distributed) capital-parent/child asset transfers			(4		)							(4		)
Comprehensive income (loss):
Net income (loss)						87,788						87,788
Other comprehensive income (loss), net of tax									132,501			132,501
Total comprehensive income (loss)												220,289
Balance, March 31, 2019	$	2,500	$	1,146,588		$	1,699,109		$	104,205		$	2,952,402

	Common   Stock		Additional   Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive   Income (Loss)			Total Equity
Balance, December 31, 2017	$	2,500	$	1,141,092	$	1,526,310		$	165,346		$	2,835,248
Cumulative effect of adoption of ASU 2016-01					7,936			(1,539		)	6,397
Cumulative effect of adoption of ASU 2018-02					(30,399		)	30,399			0
Contributed capital			5,500								5,500
Contributed (distributed) capital-parent/child asset transfers			0								0
Comprehensive income (loss):
Net income (loss)					11,304						11,304
Other comprehensive income (loss), net of tax								(115,274		)	(115,274		)
Total comprehensive income (loss)											(103,970		)
Balance, March 31, 2018	$	2,500	$	1,146,592	$	1,515,151		$	78,932		$	2,743,175

(1) Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2.

See Notes to Unaudited Interim Consolidated Financial Statements

6

PRUCO LIFE INSURANCE COMPANY

Unaudited Interim Consolidated Statements of Cash Flows

Three Months Ended March 31, 2019 and 2018 (in thousands)

	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	87,788		$	11,304
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income	(28,634		)	(23,697		)
Interest credited to policyholders’ account balances	44,197			40,798
Realized investment (gains) losses, net	48,635			49,042
Amortization and other non-cash items	(21,640		)	(9,397		)
Change in:
Future policy benefits	437,726			508,412
Reinsurance recoverables	(423,868		)	(424,467		)
Accrued investment income	(1,080		)	(1,537		)
Net payables to/receivables from parent and affiliates	(6,905		)	29,615
Deferred policy acquisition costs	(74,610		)	(45,642		)
Income taxes	(16,996		)	(2,902		)
Derivatives, net	66,403			(41,944		)
Other, net	(83,032		)	(97,354		)
Cash flows from (used in) operating activities	27,984			(7,769		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	70,725			69,410
Equity securities	3,553			6
Policy loans	38,542			39,271
Ceded policy loans	(3,325		)	(5,192		)
Short-term investments	0			3,513
Commercial mortgage and other loans	12,184			16,369
Other invested assets	4,784			2,502
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(298,629		)	(188,613		)
Equity securities	(110		)	(5,000		)
Policy loans	(42,342		)	(35,689		)
Ceded policy loans	4,344			4,957
Short-term investments	0			(3,400		)
Commercial mortgage and other loans	(14,143		)	(69,717		)
Other invested assets	(10,745		)	(30,358		)
Notes receivable from parent and affiliates, net	8,251			3,853
Derivatives, net	306			(776		)
Other, net	(1,408		)	(1,465		)
Cash flows from (used in) investing activities	(228,013		)	(200,329		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	1,284,926			1,119,440
Ceded policyholders’ account deposits	(854,083		)	(757,139		)
Policyholders’ account withdrawals	(858,819		)	(694,382		)
Ceded policyholders’ account withdrawals	602,592			437,445
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities	(729		)	(19,593		)
Contributed (distributed) capital - parent/child asset transfers	(5		)	0
Net change in financing arrangements (maturities 90 days or less)	0			80
Drafts outstanding	12,590			(9,136		)
Cash flows from (used in) financing activities	186,472			76,715
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(13,557		)	(131,383		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	416,840			212,569
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	403,283		$	81,186

Significant Non-Cash Transactions

There were no significant non-cash transactions for the three months ended March 31, 2019 and 2018.

See Notes to Unaudited Interim Consolidated Financial Statements

7

PRUCO LIFE INSURANCE COMPANY

Notes to Unaudited Interim Consolidated Financial Statements

1.    BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors.

Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and had one indirect subsidiary formed in 2009 for the purpose of holding certain commercial mortgage loans and other investments, which ceased operations and was dissolved as of December 31, 2018. Pruco Life and its subsidiary are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only.

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Revision to Prior Period Consolidated Financial Statements

In 2018, the Company identified an error in the calculation of reserves for certain individual life insurance products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. See Note 11 for a more detailed description of the revisions and for comparisons of amounts previously reported to the revised amounts.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

8

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

2.    SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

ASU adopted during the three months ended March 31, 2019.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures.

ASU issued but not yet adopted as of March 31, 2019 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

9

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

ASU 2018-12 Amended Topic	Description	Method of adoption	Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations.	An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method.	The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI").	As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.	Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.
Amortization of DAC and other balances	Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.	An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.	The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits	Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI.	An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented.	Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed.

10

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Other ASU issued but not yet adopted as of March 31, 2019

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company does not plan to early adopt this ASU and is currently assessing its impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

3.    INVESTMENTS

Fixed Maturity Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	77,354	$	2,645	$	0	$	79,999	$	0
Obligations of U.S. states and their political subdivisions	608,071		31,553		18		639,606		0
Foreign government bonds	209,128		8,172		2,488		214,812		0
U.S. public corporate securities	1,926,382		96,244		17,364		2,005,262		0
U.S. private corporate securities	890,441		19,701		9,185		900,957		0
Foreign public corporate securities	289,697		10,112		3,953		295,856		0
Foreign private corporate securities	885,807		19,955		25,216		880,546		0
Asset-backed securities(1)	148,802		1,462		531		149,733		(85		)
Commercial mortgage-backed securities	345,909		7,239		1,379		351,769		0
Residential mortgage-backed securities(2)	86,570		1,482		383		87,669		(172		)
Total fixed maturities, available-for-sale	$	5,468,161	$	198,565	$	60,517	$	5,606,209	$	(257	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

11

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	75,049	$	2,427	$	6	$	77,470	$	0
Obligations of U.S. states and their political subdivisions	609,955		15,154		2,351		622,758		0
Foreign government bonds	208,009		2,137		8,199		201,947		0
U.S. public corporate securities	1,739,860		46,166		54,401		1,731,625		0
U.S. private corporate securities	890,748		11,181		18,591		883,338		0
Foreign public corporate securities	270,428		3,746		12,151		262,023		0
Foreign private corporate securities	857,604		9,797		40,022		827,379		0
Asset-backed securities(1)	156,818		1,528		750		157,596		(122		)
Commercial mortgage-backed securities	347,570		3,353		4,527		346,396		0
Residential mortgage-backed securities(2)	88,862		1,268		1,067		89,063		(177		)
Total fixed maturities, available-for-sale	$	5,244,903	$	96,757	$	142,065	$	5,199,595	$	(299	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.4 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2019
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		6,771		18		6,771		18
Foreign government bonds	4,181		28		71,392		2,460		75,573		2,488
U.S. public corporate securities	110,017		2,347		330,357		15,017		440,374		17,364
U.S. private corporate securities	54,835		4,183		194,614		5,002		249,449		9,185
Foreign public corporate securities	7,508		93		83,890		3,860		91,398		3,953
Foreign private corporate securities	114,485		3,592		228,928		21,624		343,413		25,216
Asset-backed securities	98,426		473		10,015		58		108,441		531
Commercial mortgage-backed securities	0		0		110,228		1,379		110,228		1,379
Residential mortgage-backed securities	186		1		28,181		382		28,367		383
Total fixed maturities, available-for-sale	$	389,638	$	10,717	$	1,064,376	$	49,800	$	1,454,014	$	60,517

12

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	630	$	6	$	630	$	6
Obligations of U.S. states and their political subdivisions	124,776		1,571		31,215		780		155,991		2,351
Foreign government bonds	77,055		3,184		59,700		5,015		136,755		8,199
U.S. public corporate securities	784,916		37,635		213,147		16,766		998,063		54,401
U.S. private corporate securities	263,934		9,159		287,031		9,432		550,965		18,591
Foreign public corporate securities	124,764		6,286		72,725		5,865		197,489		12,151
Foreign private corporate securities	424,921		22,605		127,201		17,417		552,122		40,022
Asset-backed securities	112,527		650		6,523		100		119,050		750
Commercial mortgage-backed securities	49,616		434		116,786		4,093		166,402		4,527
Residential mortgage-backed securities	34,249		240		32,432		827		66,681		1,067
Total fixed maturities, available-for-sale	$	1,996,758	$	81,764	$	947,390	$	60,301	$	2,944,148	$	142,065

As of March 31, 2019 and December 31, 2018, the gross unrealized losses on fixed maturity securities were composed of $46.4 million and $121.3 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $14.1 million and $20.8 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2019, the $49.8 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and energy sectors. As of December 31, 2018, the $60.3 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, energy and consumer non-cyclical sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either March 31, 2019 or December 31, 2018. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of March 31, 2019, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2019
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	206,941	$	208,192
Due after one year through five years	705,933		703,752
Due after five years through ten years	993,523		1,008,175
Due after ten years	2,980,483		3,096,919
Asset-backed securities	148,802		149,733
Commercial mortgage-backed securities	345,909		351,769
Residential mortgage-backed securities	86,570		87,669
Total fixed maturities, available-for-sale	$	5,468,161	$	5,606,209

13

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	24,787		$	16,852
Proceeds from maturities/prepayments	52,875			54,310
Gross investment gains from sales and maturities	949			144
Gross investment losses from sales and maturities	(1,970		)	(359		)
OTTI recognized in earnings(2)	(3,163		)	(594		)

(1) Includes $6.9 million and $1.8 million of non-cash related proceeds due to the timing of trade settlements for the three months ended March 31, 2019 and 2018, respectively.

(2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	1,291		$	4,374
New credit loss impairments	3,022			0
Increases due to the passage of time on previously recorded credit losses	10			37
Reductions for securities which matured, paid down, prepaid or were sold during the period	(593		)	(42		)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(120		)	(25		)
Balance, end of period	$	3,610		$	4,344

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $0.7 million and $(1.2) million during the three months ended March 31, 2019 and 2018, respectively.

14

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:

	March 31, 2019					December 31, 2018
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	356,454		29.3	%	$	362,811		29.9	%
Hospitality	15,969			1.3		16,083			1.3
Industrial	271,953			22.5		263,999			21.8
Office	191,236			15.7		187,450			15.5
Other	131,850			10.9		131,961			10.9
Retail	192,381			15.8		193,473			16.0
Total commercial mortgage loans	1,159,843			95.5		1,155,777			95.4
Agricultural property loans	54,833			4.5		55,438			4.6
Total commercial mortgage and agricultural property loans by property type	1,214,676			100.0	%	1,211,215			100.0	%
Allowance for credit losses	(2,058		)			(2,065		)
Total commercial mortgage and other loans	$	1,212,618				$	1,209,150

As of March 31, 2019, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (21%), Texas (14%) and New York (7%)) and included loans secured by properties in Europe (6%), Australia (4%) and Mexico (2%).

The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	Commercial Mortgage Loans			Agricultural Property Loans			Total
	(in thousands)
Balance at December 31, 2017	$	1,728		$	66		$	1,794
Addition to (release of) allowance for credit losses	298			(27		)	271
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2018	2,026			39			2,065
Addition to (release of) allowance for credit losses	(10		)	3			(7		)
Charge-offs, net of recoveries	0			0			0
Balance at March 31, 2019	$	2,016		$	42		$	2,058

15

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2019
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,016		42		2,058
Total ending balance(1)	$	2,016	$	42	$	2,058
Recorded investment(2):
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,159,843		54,833		1,214,676
Total ending balance(1)	$	1,159,843	$	54,833	$	1,214,676

(1) As of March 31, 2019, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,026		39		2,065
Total ending balance(1)	$	2,026	$	39	$	2,065
Recorded investment(2):
Individually evaluated for impairment	$	0	$	816	$	816
Collectively evaluated for impairment	1,155,777		54,622		1,210,399
Total ending balance(1)	$	1,155,777	$	55,438	$	1,211,215

(1) As of December 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2019
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	698,110	$	14,468	$	0	$	712,578
60%-69.99%	316,532		16,469		0		333,001
70%-79.99%	114,257		27,612		0		141,869
80% or greater	27,000		0		228		27,228
Total commercial mortgage and agricultural property loans	$	1,155,899	$	58,549	$	228	$	1,214,676

16

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	696,507	$	12,771	$	80	$	709,358
60%-69.99%	321,586		18,525		0		340,111
70%-79.99%	105,727		27,790		0		133,517
80% or greater	28,000		229		0		28,229
Total commercial mortgage and agricultural property loans	$	1,151,820	$	59,315	$	80	$	1,211,215

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,159,843	$	0	$	0	$	0	$	1,159,843	$	0
Agricultural property loans	54,833		0		0		0		54,833		0
Total	$	1,214,676	$	0	$	0	$	0	$	1,214,676	$	0

(1) As of March 31, 2019, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,155,777	$	0	$	0	$	0	$	1,155,777	$	0
Agricultural property loans	55,438		0		0		0		55,438		0
Total	$	1,211,215	$	0	$	0	$	0	$	1,211,215	$	0

(1) As of December 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

For the three months ended March 31, 2019 and 2018, there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three months ended March 31, 2019, there were $5 million of commercial mortgage and other loans sold. For the three months ended March 31, 2018, there were no commercial mortgage and other loans sold.

17

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2019		December 31, 2018
	(in thousands)
Company’s investment in separate accounts	$	41,577	$	40,126
LPs/LLCs:
Equity method:
Private equity	158,754		149,164
Hedge funds	59,513		57,171
Real estate-related	10,335		10,251
Subtotal equity method	228,602		216,586
Fair value:
Private equity	61,817		60,118
Hedge funds	769		762
Real estate-related	10,055		9,024
Subtotal fair value	72,641		69,904
Total LPs/LLCs	301,243		286,490
Derivative instruments	15,468		50,813
Total other invested assets	$	358,288	$	377,429

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale	$	56,266		$	53,260
Fixed maturities, trading	308			266
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,491			12,405
Policy loans	16,199			15,904
Short-term investments and cash equivalents	2,311			323
Other invested assets	9,911			115
Gross investment income	97,707			82,494
Less: investment expenses	(4,457		)	(4,579		)
Net investment income	$	93,250		$	77,915

18

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Realized Investment Gains (Losses), Net 

The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities(1)	$	(4,184	)	$	(809	)
Commercial mortgage and other loans	7			131
LPs/LLCs	12			847
Derivatives	(44,477		)	(49,193		)
Short-term investments and cash equivalents	7			(18		)
Realized investment gains (losses), net	$	(48,635	)	$	(49,042	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2019			December 31, 2018
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	(408	)	$	(689	)
Fixed maturity securities, available-for-sale—all other	138,456			(44,619		)
Derivatives designated as cash flow hedges(1)	15,441			22,122
Affiliated notes	2,899			810
Other investments	4,942			5,055
Net unrealized gains (losses) on investments	$	161,330		$	(17,321	)

(1) For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of March 31, 2019 and December 31, 2018, the Company had no repurchase agreements.

The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	March 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	3,109	$	0	$	3,109	$	8,169	$	0	$	8,169
Foreign government bonds	2,121		0		2,121		0		0		0
U.S. public corporate securities	2,745		0		2,745		628		0		628
Foreign public corporate securities	2,359		0		2,359		2,266		0		2,266
Total cash collateral for loaned securities(1)	$	10,334	$	0	$	10,334	$	11,063	$	0	$	11,063

(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

19

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

4.    DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to:

• Interest rate contracts: futures, swaps, options, swaptions, caps and floors

•Equity contracts: futures, options and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

Other types of financial contracts that the Company accounts for as derivatives include:

•Embedded derivatives

For detailed information on these contracts and the related strategies, see Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Primary Risks Managed by Derivatives

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR.

	March 31, 2019							December 31, 2018
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Total Derivatives Designated as Hedge Accounting Instruments	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,925	$	20,945	$	0		$	246,925	$	15,665	$	(3,174	)
Foreign Currency
Foreign Currency Forwards	23,318		331		(38		)	23,043		277		(20		)
Credit
Credit Default Swaps	0		0		0			756		0		(9		)
Currency/Interest Rate
Foreign Currency Swaps	113,062		5,987		(1,035		)	98,363		6,303		(2,109		)
Equity
Equity Options	2,123,153		70,934		(19,071		)	1,981,693		17,312		(4,912		)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	2,506,458	$	98,197	$	(20,144	)	$	2,350,780	$	39,557	$	(10,224	)
Total Derivatives(1)(2)	$	3,245,456	$	131,368	$	(39,763	)	$	3,070,256	$	77,890	$	(26,862	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

(2) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position.

20

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $6,459 million and $5,589 million as of March 31, 2019 and December 31, 2018, respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables" or "Other liabilities," was a net asset of $6,468 million and $5,600 million as of March 31, 2019 and December 31, 2018, respectively. Of these reinsurance recoverables, the fair value related to the living benefits guarantee from Prudential Annuities Life Assurance Corporation ("PALAC") and Prudential Insurance was a net asset of $6,430 million and $5,585 million and the fair value related to the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income ("HDI") v.3.0 from Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty, was a net asset of $38 million and $15 million as of March 31, 2019 and December 31, 2018, respectively. See Note 6 for additional information on these reinsurance agreements.

The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $53 million and $13 million as of March 31, 2019 and December 31, 2018, respectively. There were no related reinsurance recoverables at each respective period.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2019
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Securities purchased under agreements to resell	0		0			0		0			0
Total Assets	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Offsetting of Financial Liabilities:
Derivatives(1)	$	39,763	$	(39,763	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	39,763	$	(39,763	)	$	0	$	0		$	0

21

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	December 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	77,887	$	(27,078	)	$	50,809	$	(7,307	)	$	43,502
Securities purchased under agreements to resell	143,000		0			143,000		(143,000		)	0
Total Assets	$	220,887	$	(27,078	)	$	193,809	$	(150,307	)	$	43,502
Offsetting of Financial Liabilities:
Derivatives(1)	$	26,862	$	(26,862	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	26,862	$	(26,862	)	$	0	$	0		$	0

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Cash Flow Hedges

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships.

22

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2019
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(160	)	$	2,069	$	(1,515	)	$	(6,654	)
Total cash flow hedges	(160		)	2,069		(1,515		)	(6,654		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	7,616			0		0			0
Currency	(20		)	0		0			0
Currency/Interest Rate	1,430			0		1			0
Credit	(1		)	0		0			0
Equity	28,863			0		0			0
Embedded Derivatives	(82,205		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(44,317		)	0		1			0
Total	$	(44,477	)	$	2,069	$	(1,514	)	$	(6,654	)

	Three Months Ended March 31, 2018(2)
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(517	)	$	1,538	$	(664	)	$	(22,862	)
Total cash flow hedges	(517		)	1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,334		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(48,676		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

(1) Net change in AOCI.

(2) Prior period amounts have been updated to conform to current period presentation.

23

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2018	$	22,122
Cumulative-effect adjustment from the adoption of ASU 2017-12(1)	(27		)
Amount recorded in AOCI
Currency/Interest Rate	(6,260		)
Total amount recorded in AOCI	(6,260		)
Amount reclassified from AOCI to income
Currency/Interest Rate	(394		)
Total amount reclassified from AOCI to income	(394		)
Balance, March 31, 2019	$	15,441

(1) See Note 2 for details.

The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2019 values, it is estimated that a pre-tax gain of $7 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2020, offset by amounts pertaining to the hedged items.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments.

There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Credit Derivatives

The Company has no exposure from credit derivative positions where it has written credit protection as of March 31, 2019 and December 31, 2018.

The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0.0 million and $1 million reported as of March 31, 2019 and December 31, 2018, respectively with a fair value of $0.0 million for both periods.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

24

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

5.    FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

25

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2019
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,811	$	32,188	$	0		$	79,999
Obligations of U.S. states and their political subdivisions	0		639,606		0		0			639,606
Foreign government bonds	0		214,648		164		0			214,812
U.S. corporate public securities	0		2,005,259		3		0			2,005,262
U.S. corporate private securities	0		857,453		43,504		0			900,957
Foreign corporate public securities	0		295,645		211		0			295,856
Foreign corporate private securities	0		869,304		11,242		0			880,546
Asset-backed securities(2)	0		147,000		2,733		0			149,733
Commercial mortgage-backed securities	0		274,698		77,071		0			351,769
Residential mortgage-backed securities	0		87,669		0		0			87,669
Subtotal	0		5,439,093		167,116		0			5,606,209
Fixed maturities, trading	0		43,000		0		0			43,000
Equity securities	140		18,616		15,991		0			34,747
Cash equivalents	104,949		250,219		0		0			355,168
Other invested assets(3)	0		131,364		4		(115,900		)	15,468
Reinsurance recoverables	0		0		6,468,704		0			6,468,704
Receivables from parent and affiliates	0		120,687		7,792		0			128,479
Subtotal excluding separate account assets	105,089		6,002,979		6,659,607		(115,900		)	12,651,775
Separate account assets(4)(5)	0		124,615,650		0		0			124,615,650
Total assets	$	105,089	$	130,618,629	$	6,659,607	$	(115,900	)	$	137,267,425
Future policy benefits(6)	$	0	$	0	$	6,459,377	$	0		$	6,459,377
Policyholders' account balances	0		0		53,136		0			53,136
Payables to parent and affiliates	0		39,763		0		(39,763		)	0
Total liabilities	$	0	$	39,763	$	6,512,513	$	(39,763	)	$	6,512,513

26

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	As of December 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,654	$	29,816	$	0		$	77,470
Obligations of U.S. states and their political subdivisions	0		622,758		0		0			622,758
Foreign government bonds	0		201,947		0		0			201,947
U.S. corporate public securities	0		1,731,623		2		0			1,731,625
U.S. corporate private securities	0		838,497		44,841		0			883,338
Foreign corporate public securities	0		262,023		0		0			262,023
Foreign corporate private securities	0		815,634		11,745		0			827,379
Asset-backed securities(2)	0		151,040		6,556		0			157,596
Commercial mortgage-backed securities	0		346,396		0		0			346,396
Residential mortgage-backed securities	0		89,063		0		0			89,063
Subtotal	0		5,106,635		92,960		0			5,199,595
Fixed maturities, trading	0		41,627		0		0			41,627
Equity securities	131		20,794		15,997		0			36,922
Cash equivalents	69,903		147,043		0		0			216,946
Other invested assets(3)	0		77,886		4		(27,078		)	50,812
Reinsurance recoverables	0		0		5,600,008		0			5,600,008
Receivables from parent and affiliates	0		125,381		9,261		0			134,642
Subtotal excluding separate account assets	70,034		5,519,366		5,718,230		(27,078		)	11,280,552
Separate account assets(4)(5)	0		114,947,872		0		0			114,947,872
Total assets	$	70,034	$	120,467,238	$	5,718,230	$	(27,078	)	$	126,228,424
Future policy benefits(6)	$	0	$	0	$	5,588,840	$	0		$	5,588,840
Policyholders' account balances	0		0		13,015		0			13,015
Payables to parent and affiliates	0		26,862		0		(26,862		)	0
Total liabilities	$	0	$	26,862	$	5,601,855	$	(26,862	)	$	5,601,855

(1) “Netting” amounts represent cash collateral of $76.1 million and $0.2 million as of March 31, 2019 and December 31, 2018, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2019 and December 31, 2018, the fair values of such investments were $73 million and $70 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of March 31, 2019 and December 31, 2018, the fair value of such investments was $4,383 million and $4,130 million, respectively.

(6) As of March 31, 2019, the net embedded derivative liability position of $6,459 million includes $623 million of embedded derivatives in an asset position and $7,082 million of embedded derivatives in a liability position. As of December 31, 2018, the net embedded derivative liability position of $5,589 million includes $633 million of embedded derivatives in an asset position and $6,222 million of embedded derivatives in a liability position.

27

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2019
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	23,065	Discounted cash flow	Discount rate	8.25	%	20.00	%	13.69	%	Decrease
			Liquidation	Liquidation value	13.18	%	13.18	%	13.18	%	Increase
Reinsurance recoverables	$	6,468,704	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	6,459,377	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.35	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	15	%	22	%			Increase

	As of December 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	31,503	Discounted cash flow	Discount rate	7.00	%	20.00	%	10.21	%	Decrease
			Liquidation	Liquidation value	40.71	%	40.71	%	40.71	%	Increase
Reinsurance recoverables	$	5,600,008	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	5,588,840	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.36	%	1.60	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	18	%	22	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread

28

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2019 and December 31, 2018, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.

29

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	29,816		$	0		$	2,372	$	0		$	0		$	0		$	0	$	0	$	0	$	32,188		$	0
Foreign government	0			5			0		0			0			0			0		159		0		164			0
Corporate securities(4)	56,588			(3,412		)	1,331		(28		)	0			(7,097		)	1		7,577		0		54,960			(3,163		)
Structured securities(5)	6,556			1,268			0		(1		)	0			(3,979		)	0		75,960		0		79,804			0
Other assets:
Equity securities	15,997			(6		)	0		0			0			0			0		0		0		15,991			(6		)
Other invested assets	4			0			0		0			0			0			0		0		0		4			0
Short-term investments	0			0			0		0			0			0			0		0		0		0			0
Reinsurance recoverables	5,600,008			633,318			235,378		0			0			0			0		0		0		6,468,704			677,444
Receivables from parent and affiliates	9,261			111			0		0			0			(1,580		)	0		0		0		7,792			0
Liabilities:
Future policy benefits	(5,588,840		)	(637,102		)	0		0			(233,435		)	0			0		0		0		(6,459,377		)	(681,227		)
Policyholders' account balances	(13,015		)	(33,614		)	0		0			0			(6,507		)	0		0		0		(53,136		)	(33,614		)

	Three Months Ended March 31, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,402	)	$	0		$	164	$	99	$	(3,163	)	$	0
Other assets:
Equity securities	0			(6		)	0		0		0			(6		)
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	633,318			0			0		0		677,444			0
Receivables from parent and affiliates	0			0			0		111		0			0
Liabilities:
Future policy benefits	(637,102		)	0			0		0		(681,227		)	0
Policyholders' account balances	(33,614		)	0			0		0		(33,614		)	0

30

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Three Months Ended March 31, 2018(6)
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales		Issuances			Settlements			Other(2)			Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	19,204		$	0		$	2,365	$	0	$	0		$	0		$	0		$	0	$	0		$	21,569		$	0
Foreign government	0			(8		)	0		0		0			0			174			0		0			166			0
Corporate securities(4)	75,421			936			1,022		0		0			(4,570		)	15			0		(209		)	72,615			(26		)
Structured securities(5)	111,028			131			190		0		0			(3,195		)	0			13,513		(26,794		)	94,873			0
Other assets:
Equity securities	17,525			(486		)	0		0		0			0			0			0		0			17,039			(486		)
Other invested assets	0			1			0		0		0			0			0			9		0			10			2
Short-term investments	1,339			(18		)	3,400		0		0			(3,513		)	(14		)	0		0			1,194			(18		)
Reinsurance recoverables	5,457,649			(1,462,992		)	219,457		0		0			0			0			0		0			4,214,114			(1,409,320		)
Receivables from parent and affiliates	0			(20		)	0		0		0			0			0			6,551		0			6,531			0
Liabilities:
Future policy benefits	(5,452,583		)	1,487,555			0		0		(226,345		)	0			0			0		0			(4,191,373		)	1,433,872
Policyholders' account balances	(46,651		)	5,013			0		0		0			2,122			0			0		0			(39,516		)	5,013
Other liabilities	0			(24,780		)	8,825		0		0			0			0			0		0			(15,955		)	(24,780		)

	Three Months Ended March 31, 2018(6)
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	68		$	0		$	914	$	77	$	(26	)	$	0
Other assets:
Equity securities	0			(486		)	0		0		0			(486		)
Other invested assets	1			0			0		0		2			0
Short-term investments	(18		)	0			0		0		(18		)	0
Reinsurance recoverables	(1,462,992		)	0			0		0		(1,409,320		)	0
Receivables from parent and affiliates	0			(20		)	0		0		0			0
Liabilities:
Future policy benefits	1,487,555			0			0		0		1,433,872			0
Policyholders' account balances	5,013			0			0		0		5,013			0
Other liabilities	(24,780		)	0			0		0		(24,780		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

31

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6) Prior period amounts have been updated to conform to current period presentation.

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,240,689	$	1,240,689	$	1,212,618
Policy loans	0		0		1,251,094		1,251,094		1,251,094
Cash and cash equivalents	48,115		0		0		48,115		48,115
Accrued investment income	0		89,358		0		89,358		89,358
Receivables from parent and affiliates	0		149,571		0		149,571		149,571
Other assets	0		35,112		0		35,112		35,112
Total assets	$	48,115	$	274,041	$	2,491,783	$	2,813,939	$	2,785,868
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,226,786	$	276,008	$	1,502,794	$	1,507,136
Cash collateral for loaned securities	0		10,334		0		10,334		10,334
Payables to parent and affiliates	0		217,073		0		217,073		217,073
Other liabilities	0		358,256		0		358,256		358,256
Total liabilities	$	0	$	1,812,449	$	276,008	$	2,088,457	$	2,092,799

	December 31, 2018
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,214,350	$	1,214,350	$	1,209,150
Policy loans	0		0		1,236,077		1,236,077		1,236,077
Cash and cash equivalents	56,894		143,000		0		199,894		199,894
Accrued investment income	0		88,278		0		88,278		88,278
Receivables from parent and affiliates	0		154,938		0		154,938		154,938
Other assets	0		28,950		0		28,950		28,950
Total assets	$	56,894	$	415,166	$	2,450,427	$	2,922,487	$	2,917,287
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,206,747	$	272,322	$	1,479,069	$	1,486,929
Cash collateral for loaned securities	0		11,063		0		11,063		11,063
Payables to parent and affiliates	0		229,345		0		229,345		229,345
Other liabilities	0		372,997		0		372,997		372,997
Total liabilities	$	0	$	1,820,152	$	272,322	$	2,092,474	$	2,100,334

32

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

6.    REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re") and Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for universal life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives.

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
	(in thousands)
Reinsurance recoverables	$	36,106,323		$	34,682,127
Policy loans	(132,433		)	(130,502		)
Deferred policy acquisition costs	(7,255,866		)	(7,267,847		)
Deferred sales inducements	(567,015		)	(562,052		)
Other assets(1)	171,968			185,573
Policyholders’ account balances	4,986,354			5,004,112
Future policy benefits	3,619,334			3,376,048
Other liabilities(2)	653,666			621,856

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2019 and December 31, 2018.

(2) “Other liabilities” includes $39 million and $27 million of unaffiliated activity as of March 31, 2019 and December 31, 2018, respectively.

33

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2019		December 31, 2018
	(in thousands)
PAR U	$	11,680,401	$	11,444,032
PALAC	9,622,605		8,828,190
PURC	4,211,368		4,127,455
PARCC	2,484,194		2,527,690
GUL Re	2,044,196		2,017,810
PAR Term	1,691,610		1,678,745
Prudential of Taiwan	1,424,669		1,414,669
Term Re	1,347,453		1,259,141
Prudential Insurance	1,355,025		1,226,917
DART	168,676		119,946
Unaffiliated	76,126		37,532
Total reinsurance recoverables	$	36,106,323	$	34,682,127

34

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2019			2018(8)
	(in thousands)
Premiums:
Direct		$	462,271		$	441,955
Assumed(1)		54			60
Ceded(2)		(448,331		)	(434,100		)
Net premiums		13,994			7,915
Policy charges and fee income:
Direct		853,195			846,247
Assumed		126,959			121,709
Ceded(3)		(840,965		)	(838,801		)
Net policy charges and fee income		139,189			129,155
Net investment income:
Direct		94,558			79,149
Assumed		396			373
Ceded		(1,704		)	(1,607		)
Net investment income		93,250			77,915
Asset administration fees:
Direct		83,868			87,033
Assumed		0			0
Ceded		(80,211		)	(83,560		)
Net asset administration fees		3,657			3,473
Other income:
Direct		19,798			17,253
Assumed(4)		(200		)	(90		)
Ceded		(23		)	(52		)
Amortization of reinsurance income		1,382			2,185
Net other income		20,957			19,296
Realized investment gains (losses), net:
Direct		(635,511		)	1,474,762
Assumed		0			0
Ceded(5)		586,876			(1,523,804		)
Realized investment gains (losses), net		(48,635		)	(49,042		)
Policyholders’ benefits (including change in reserves):
Direct		646,311			651,672
Assumed(6)		211,750			112,802
Ceded(7)		(818,583		)	(712,738		)
Net policyholders’ benefits (including change in reserves)		39,478			51,736
Interest credited to policyholders’ account balances:
Direct		94,691			124,734
Assumed		30,657			36,517
Ceded		(81,151		)	(120,453		)
Net interest credited to policyholders’ account balances		44,197			40,798
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(344,015		)	(434,371		)

35

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(2) "Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended March 31, 2019, and 2018 respectively.

(3) "Policy charges and fee income ceded" includes $(5) million and $(2) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(4) "Other income assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(5) “Realized investment gains (losses), net ceded” includes $14 million and $(38) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(6) "Policyholders' benefits (including change in reserves) assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(7) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(8) Prior period amounts in the table above have been revised to correct previously reported numbers. These prior period revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.

The gross and net amounts of life insurance face amount in force as of March 31, 2019 and 2018 were as follows:

	2019			2018
	(in thousands)
Direct gross life insurance face amount in force	$	951,643,226		$	893,787,108
Assumed gross life insurance face amount in force	40,546,369			41,584,568
Reinsurance ceded	(913,655,428		)	(864,942,222		)
Net life insurance face amount in force	$	78,534,167		$	70,429,454

Information regarding significant affiliated reinsurance agreements is described below.

PAR U

Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011.

Effective July 1, 2012, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving.

On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.

PALAC

Effective April 1, 2016, the Company entered into a reinsurance agreement with PALAC to reinsure its variable annuity base contracts, along with the living benefit guarantees, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement covers new and in force business and excludes business reinsured externally.

PURC

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

PARCC

The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC.

36

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

GUL Re

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017, excluding those policies that are subject to principles-based reserving.

Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014.

PAR Term

The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term.

Prudential of Taiwan

On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwanese branch, including its Taiwanese insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life.

The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re.  

Prudential Insurance

The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. Effective July 1, 2017, the Company reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control.

The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. This reinsurance agreement covers new and in force business and excludes business reinsured externally.

37

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018.

Information regarding significant third-party reinsurance arrangements is described below.

Union Hamilton

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiaries, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier® Retirement Variable Annuity, to Union Hamilton. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of March 31, 2019, $3.1 billion of HDI v.3.0 account values are reinsured to Union Hamilton.

7.    INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected "Income tax expense (benefit)" divided by projected "Income (loss) from operations before income taxes and equity in earnings of operating joint venture." Taxes attributable to the operating joint venture are recorded within "Equity in earnings of operating joint venture, net of taxes." The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year.

The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $(16.9) million, or (23.57)% of income (loss) before income taxes and equity in earnings of operating joint venture, in the first three months of 2019, compared to $(2.7) million, or (29.20)%, in the first three months of 2018. The Company's current and prior effective tax rates differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income and tax credits.

8. EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2019 and 2018, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2018	$	(17,448	)	$	(10,848	)	$	(28,296	)
Change in OCI before reclassifications	6,049			156,295			162,344
Amounts reclassified from AOCI	0			3,790			3,790
Income tax benefit (expense)	(19		)	(33,614		)	(33,633		)
Balance, March 31, 2019	$	(11,418	)	$	115,623		$	104,205

38

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	165,346
Change in OCI before reclassifications	(923		)	(145,541		)	(146,464		)
Amounts reclassified from AOCI	0			490			490
Income tax benefit (expense)	194			30,506			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,945		$	78,932

(1) Includes cash flow hedges of $15 million and $(18) million as of March 31, 2019 and December 31, 2018, respectively, and $1 million and $41 million as of March 31, 2018 and December 31, 2017, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	394		$	319
Net unrealized investment gains (losses) on available-for-sale securities	(4,184		)	(809		)
Total net unrealized investment gains (losses)(4)	(3,790		)	(490		)
Total reclassifications for the period	$	(3,790	)	$	(490	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits, policyholders’ account balances and other liabilities. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

39

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs(2)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(689	)	$	(152	)	$	37		$	(192	)	$	(996	)
Net investment gains (losses) on investments arising during the period	573			0			0			(120		)	453
Reclassification adjustment for (gains) losses included in net income	(85		)	0			0			18			(67		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	(207		)	0			0			43			(164		)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			110			0			(23		)	87
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(65		)	14			(51		)
Balance, March 31, 2019	$	(408	)	$	(42	)	$	(28	)	$	(260	)	$	(738	)

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(3) "Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(2)			Deferred Policy Acquisition Costs and Other Costs(3)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(16,632	)	$	(65,743	)	$	68,005		$	4,518		$	(9,852	)
Net investment gains (losses) on investments arising during the period	174,288			0			0			(36,596		)	137,692
Reclassification adjustment for (gains) losses included in net income	3,875			0			0			(814		)	3,061
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	207			0			0			(43		)	164
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			141,369			0			(29,684		)	111,685
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(159,980		)	33,591			(126,389		)
Balance, March 31, 2019	$	161,738		$	75,626		$	(91,975	)	$	(29,028	)	$	116,361

40

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

(1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(4) "Other liabilities" primarily includes reinsurance payables.

9.    RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.1 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively. The expense charged to the Company for the deferred compensation program was $3 million and $2 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $5 million and $6 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $6 million and $7 million for the three months ended March 31, 2019 and 2018, respectively.

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $2 million and $3 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $179 million and $175 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity.  The Company’s share of corporate expenses was $17 million and $18 million for the three months ended March 31, 2019 and 2018, respectively.

41

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Corporate Owned Life Insurance

The Company has sold five Corporate-Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $4,014 million at March 31, 2019 and $3,631 million at December 31, 2018. Fees related to these COLI policies were $13 million and $12 million for the three months ended March 31, 2019 and 2018. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per individual policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million for both the three months ended March 31, 2019 and 2018. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $96 million and $88 million as of March 31, 2019 and December 31, 2018, respectively. "Net investment income" related to these ventures includes a gain of $5 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively.

Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $81 million and $84 million for the three months ended March 31, 2019 and 2018, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $2 million for both the three months ended March 31, 2019 and 2018. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2019 and December 31, 2018 were as follows:

	Maturity Dates			Interest Rates				March 31, 2019		December 31, 2018
								(in thousands)
U.S. dollar floating rate notes	2028			4.02%	-	4.23	%	$	0	$	6,502
U.S. dollar fixed rate notes	2020	-	2027	0.00%	-	14.85	%	128,479		128,140
Total notes receivable - affiliated(1)								$	128,479	$	134,642

(1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

42

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Accrued interest receivable related to these loans was $0.6 million and $1 million at March 31, 2019 and December 31, 2018, respectively, and is included in “Other assets”. Revenues related to these assets were $1 million for both the three months ended March 31, 2019 and 2018, and are included in “Other income”.

Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2019 and for the year ended December 31, 2018.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)			Realized Investment Gain (Loss)
				(in thousands)
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0		$	0
PALAC	April 2018	Purchase	Fixed Maturities	$	64,313	$	64,313	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	87,486	$	87,486	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	37,921	$	37,921	$	0		$	0
Prudential Realty Securities, Inc.	November 2018	Purchase	Commercial Mortgages	$	3,259	$	3,425	$	0		$	(167	)
Prudential Insurance	February 2019	Sale	Commercial Mortgages	$	4,995	$	5,000	$	(4	)	$	0

Debt Agreements

The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. As of March 31, 2019 and December 31, 2018, there was no debt outstanding.

The total interest expense to the Company related to loans payable to affiliates was $0.2 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively.

Contributed Capital and Dividends

Through March 2019, the Company did not receive any capital contributions from Prudential Insurance. In March 2018, the Company received a capital contribution in the amount of $6 million from Prudential Insurance.

Through March 2019, the Company did not pay any dividends to Prudential Insurance. In 2018, the Company did not pay any dividends.

Reinsurance with Affiliates

As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates.

10.    COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial mortgage loans. As of March 31, 2019 and December 31, 2018, the outstanding balances on these commitments were $40 million and $14 million, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of March 31, 2019 and December 31, 2018, $276 million and $257 million, respectively, of these commitments were outstanding.

43

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Guarantees

In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

Contingent Liabilities

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to our customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of March 31, 2019, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 14 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and should be read in conjunction with the complete descriptions provided in the Form 10-K.

44

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

Securities Lending and Foreign Tax Reclaim Matter

In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers.

The DOL’s review of the securities lending matter is closed. Prudential Financial is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of both matters that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of the discussions with the SEC regarding these matters.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.

11.    REVISION TO PRIOR YEAR INFORMATION

Revisions to 2018 Consolidated Financial Statements

In 2018, the Company identified an error in the calculation of reserves for certain individual life products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error as shown below. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements.

Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC SAB No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the consolidated financial statements as of and for the three months ended March 31, 2018 have been revised.

45

PRUCO LIFE INSURANCE COMPANY    

Notes to Unaudited Interim Consolidated Financial Statements—(Continued)

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Operations and Comprehensive Income (Loss)

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	125,896		$	3,259		$	129,155
TOTAL REVENUES	185,453			3,259			188,712
BENEFITS AND EXPENSES
Policyholders' benefits	48,955			2,781			51,736
Amortization of deferred policy acquisition costs	26,604			(459		)	26,145
TOTAL BENEFITS AND EXPENSES	177,147			2,322			179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306			937			9,243
Income tax expense (benefit)	(2,448		)	(251		)	(2,699		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754			1,188			11,942
NET INCOME (LOSS)	$	10,116		$	1,188		$	11,304
COMPREHENSIVE INCOME (LOSS)	$	(105,158	)	$	1,188		$	(103,970	)

Consolidated Statements of Equity

	Retained Earnings						Total Equity
	As Previously Reported		Revision		As Revised		As Previously Reported			Revision		As Revised
	(in thousands)
Balance, December 31, 2017	$	1,511,698	$	14,612	$	1,526,310	$	2,820,636		$	14,612	$	2,835,248
Comprehensive income (loss):
Net income (loss)	10,116		1,188		11,304		10,116			1,188		11,304
Total comprehensive income (loss)							(105,158		)	1,188		(103,970		)
Balance, March 31, 2018	$	1,499,351	$	15,800	$	1,515,151	$	2,727,375		$	15,800	$	2,743,175

Consolidated Statements of Cash Flows

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	10,116		$	1,188		$	11,304
Policy charges and fee income	(24,173		)	476			(23,697		)
Future policy benefits	511,380			(2,968		)	508,412
Reinsurance recoverables	(430,215		)	5,748			(424,467		)
Deferred policy acquisition costs	(45,184		)	(458		)	(45,642		)
Income taxes	(2,651		)	(251		)	(2,902		)
Other, net	(93,619		)	(3,735		)	(97,354		)
Cash flows from (used in) operating activities	(7,769		)	0			(7,769		)

46

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) addresses the consolidated financial condition of Pruco Life Insurance Company, or the “Company,” as of March 31, 2019, compared with December 31, 2018, and its consolidated results of operations for the three months ended March 31, 2019 and 2018. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the MD&A, the “Risk Factors” section, and the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as well as the statements under “Forward-Looking Statements” and the Unaudited Interim Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

Overview

The Company sells variable and fixed annuities, universal life insurance, variable life insurance and term life insurance primarily through affiliated and unaffiliated distributors in the United States.

In July 2017, the Company announced the formation of a joint venture with CT Corp to provide life insurance solutions in Indonesia. CT Corp controls one of Indonesia’s largest and most prominent business groups with primary areas of focus in the financial services, media, retail, property, lifestyle and entertainment sectors. The joint venture, in which the Company owns a 49% interest, is expected to take a multi-product and multi-channel distribution approach and will leverage CT Corp’s existing businesses and strategic partnerships to offer insurance products to customers. While this transaction is expected to provide long-term growth potential, it is not currently significant to the operating results of the Company.

Regulatory Developments

For information on the potential impacts of regulation on the Company see “Business—Regulation” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018.

Impact of a Low Interest Rate Environment

As a global financial services company, market interest rates are a key driver of our results of operations and financial condition. Changes in interest rates can affect our results of operations and/or our financial condition in several ways, including favorable or adverse impacts to:

• investment-related activity, including: investment income returns, net interest margins, net investment spread

results, new money rates, mortgage loan prepayments and bond redemptions;

• insurance reserve levels, market experience true-ups and amortization of deferred policy acquisition costs (“DAC”)

• customer account values, including their impact on fee income;

• product offerings, design features, crediting rates and sales mix; and

• policyholder behavior, including surrender or withdrawal activity.

Interest rates in the U.S. have experienced a period of historically low levels in large part due to Federal Reserve efforts to assist with the economic recovery subsequent to the financial crisis of 2008. While market conditions and events make uncertain the timing, amount and impact of any monetary policy decisions by the Federal Reserve, a trend of rising interest rates may enhance our reinvestment yields, primarily for our investments in fixed maturity securities and commercial mortgage loans. As interest rates rise, our reinvestment yield may approach or exceed the overall portfolio yield. Conversely, if interest rates were to decline, our reinvestment yield may fall below our overall portfolio yield, resulting in an unfavorable impact to earnings.

For more information on interest rate risks, see “Risk Factors—Market Risk” included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Revenues and Expenses

The Company earns revenues principally from insurance premiums, mortality and expense fees, asset administration fees from insurance and investment products, and from net investment income on the investment of general account and other funds. The Company receives premiums primarily from the sale of individual life insurance and annuity products. The Company earns mortality and expense fees, and asset administration fees, primarily from the sale and servicing of universal life insurance and separate account products including variable life insurance and variable annuities. The Company’s operating expenses principally consist of insurance benefits provided and reserves established for anticipated future insurance benefits, general business expenses, reinsurance premiums, commissions and other costs of selling and servicing the various products sold and interest credited on general account liabilities.

47

Profitability

The Company’s profitability depends principally on its ability to price our insurance and annuity products at a level that enables us to earn a margin over the costs associated with providing benefits and administering those products. Profitability also depends on, among other items, our actuarial and policyholder behavior experience on insurance and annuity products, our ability to attract and retain customer assets, generate and maintain favorable investment results, and manage expenses.

See “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 for a discussion of risks that have materially affected and may affect in the future the Company’s business, results of operations or financial condition, or cause the Company’s actual results to differ materially from those expected or those expressed in any forward looking statements made by or on behalf of the Company.

Accounting Policies & Pronouncements

Application of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Management reviews estimates and assumptions used in the preparation of financial statements on an ongoing basis. If management determines that modifications in assumptions and estimates are appropriate given current facts and circumstances, the Company’s results of operations and financial position as reported in the Unaudited Interim Consolidated Financial Statements could change significantly.

Management believes the accounting policies relating to the following areas are most dependent on the application of estimates and assumptions and require management’s most difficult, subjective, or complex judgments:

• DAC and other costs, including deferred sales inducements (“DSI”);

• Policyholder liabilities;

• Valuation of investments, including derivatives, and the recognition of other-than-temporary impairments ("OTTI");

• Reinsurance recoverables;

• Taxes on income; and

• Reserves for contingencies, including reserves for losses in connection with unresolved legal matters.

Market Performance - Equity and Interest Assumptions

DAC and other costs associated with the variable and universal life policies and the variable and fixed annuity contracts are generally amortized over the expected lives of these policies in proportion to total gross profits. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The quarterly adjustments for market performance reflect the impact of changes to our estimate of total gross profits to reflect actual fund performance and market conditions. A significant portion of gross profits for our variable annuity contracts and, to a lesser degree, our variable life policies are dependent upon the total rate of return on assets held in separate account investment options. This rate of return influences the fees we earn, costs we incur associated with the guaranteed minimum death and guaranteed minimum income benefit features related to our variable annuity contracts, as well as other sources of profit. Returns that are higher than our expectations for a given period produce higher than expected account balances, which increase the future fees we expect to earn and decrease the future costs we expect to incur associated with the guaranteed minimum death and guaranteed minimum income benefit features related to our variable annuity contracts. The opposite occurs when returns are lower than our expectations. The changes in future expected gross profits are used to recognize a cumulative adjustment to all prior periods’ amortization.

Furthermore, the calculation of the estimated liability for future policy benefits related to certain insurance products includes an estimate of associated revenues and expenses that are dependent on both historical market performance as well as estimates of market performance in the future. Similar to DAC and other costs described above, these liabilities are subject to quarterly adjustments for experience including market performance, in addition to annual adjustments resulting from our annual reviews of assumptions.

48

The weighted average rate of return assumptions used in developing estimated market returns consider many factors specific to each business, including asset durations, asset allocations and other factors. With regard to equity market assumptions, the near-term future rate of return assumption used in evaluating DAC, other costs and liabilities for future policy benefits for certain of our products, primarily domestic variable annuity and variable life insurance products is generally updated each quarter and is derived using a reversion to the mean approach, a common industry practice. Under this approach, we consider historical equity returns and adjust projected equity returns over an initial future period of five years (the “near-term”) so that equity returns converge to the long-term expected rate of return. If the near-term projected future rate of return is greater than our near-term maximum future rate of return of 15.0%, we use our maximum future rate of return. As of March 31, 2019, our variable annuities and variable life insurance businesses assume an 8.0% long-term equity expected rate of return and a 4.7% near-term mean reversion equity expected rate of return.

With regard to interest rate assumptions, we generally update the future interest rates used to project fixed income returns annually and in any quarter when interest rates vary significantly from these assumptions. As a result of our 2018 annual reviews and update of assumptions and other refinements, we kept our long-term expectation of the 10-year U.S. Treasury rate unchanged and continue to grade to 3.75% over ten years.

Adoption of New Accounting Pronouncements

See Note 2 to our Unaudited Interim Consolidated Financial Statements for a discussion of newly adopted accounting pronouncements and accounting pronouncements issued but not yet adopted.

Changes in Financial Position

March 31, 2019 versus December 31, 2018

Total assets increased $11.8 billion, from $164.7 billion at December 31, 2018 to $176.5 billion at March 31, 2019. Significant components were:

• Separate account assets increased $9.9 billion, primarily driven by favorable market performance and net inflows partially offset by policy charges;

• Reinsurance recoverables increased $1.4 billion, primarily driven by continued universal and term life business growth and an increase in the annuity reinsured living benefit liabilities resulting from an increase in future expected benefit payments driven by credit spread tightening and declining rates, partially offset by favorable equity markets;

• Total investments and cash and cash equivalents increased $0.4 billion primarily driven by universal, term and variable life business growth and unrealized investment gains due to declining rates; and

• Deferred policy acquisition costs increased $0.1 billion primarily driven by capitalization of acquisition costs in excess of amortization driven by business growth, partially offset by an increase in ceded DAC to affiliates.

Total liabilities increased $11.6 billion, from $161.9 billion at December 31, 2018 to $173.5 billion at March 31, 2019. Significant components were:

• Separate account liabilities increased $9.9 billion, corresponding to the increase in separate account assets described above;

• Future policy benefits increased $1.5 billion, primarily driven by growth in term and universal life business, the impact of unrealized gains on guaranteed minimum death benefits reserves and an increase in the annuity reinsured living benefit liabilities, as discussed above; and

• Policyholders’ account balances increased $0.1 billion, primarily driven by business growth in the life and annuities businesses and unearned revenue reserve ("URR") capitalization, partially offset by a decrease in URR as a result of unrealized gains.

Total equity increased $0.2 billion, from $2.7 billion at December 31, 2018 to $2.9 billion at March 31, 2019, primarily driven by an accumulated other comprehensive income increase of $0.1 billion driven by unrealized investment gains and an increase of $0.1 billion from after tax net income.

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Results of Operations

Income (loss) from Operations before Income Taxes

2019 to 2018 Three Months Comparison

Income (loss) from operations before income taxes increased $63 million from $9 million for the three months ended March 31, 2018 to $72 million for the three months ended March 31, 2019. This was primarily driven by underwriting profits in the life business as a result of business growth, higher profits on principle-based reserving ("PBR") products that are retained in the Company and not reinsured to our affiliated captive reinsurance companies, and the impact from less unfavorable mortality. For more information on PBR products, please see the "Term and Universal Life Reserve Financing" section within the "Liquidity and Capital Resources" section below.

Revenues, Benefits and Expenses

2019 to 2018 Three Months Comparison

Revenues increased $34 million from $189 million for the three months ended March 31, 2018 to $222 million for the three months ended March 31, 2019 primarily driven by a $15 million increase in net investment income primarily driven by business growth and higher alternative income and a $10 million increase in Policy charges and fee income primarily driven by business growth and higher profits on PBR products, as discussed above.

Benefits and expenses decreased $28 million from $179 million for the three months ended March 31, 2018 to $151 million for the three months ended March 31, 2019 primarily driven by a $13 million decrease in general, administrative, and other expenses primarily driven by the favorable impact from deferred reinsurance activity in the annuities business and a $12 million decrease in policyholders' benefits primarily reflecting less unfavorable mortality.

Variable Annuity Risks and Risk Mitigants

The following is a summary of: (i) certain risks associated with individual annuity products and (ii) certain strategies in mitigating those risks, including any updates to those strategies since the previous year end. For a more detailed description of these items and their related accounting treatment, refer to the complete descriptions provided in our Annual Report on Form 10-K for the year ended December 31, 2018.

The primary risk exposures of our variable annuity contracts relate to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including capital markets assumptions such as equity market returns, interest rates and market volatility, along with actuarial assumptions such as contractholder mortality, the timing and amount of annuitization and withdrawals, and contract lapses. For these risk exposures, achievement of our expected earnings and profitability is subject to the risk that actual experience will differ from the assumptions used in the original pricing of these products. We currently manage our exposure to certain risks driven by capital markets fluctuations primarily through a combination of product design features, an Asset Liability Management ("ALM") Strategy and External Reinsurance.

Product Design Features

A portion of the variable annuity contracts that we offer include an asset transfer feature. This feature is implemented at the contract level, and transfers assets between certain variable investment sub-accounts selected by the annuity contractholder and, depending on the benefit feature, a fixed-rate account in the general account or a bond fund sub-account within the separate account. The objective of the asset transfer feature is to reduce our exposure to equity market risk and market volatility. The asset transfer feature associated with currently-sold highest daily living benefit products uses a designated bond fund sub-account within the separate account. The transfers are based on a static mathematical formula used with the particular benefit which considers a number of factors, including, but not limited to, the impact of investment performance on the contractholder’s total account value. Other product design features we utilize include, among others, asset allocation restrictions, minimum issuance age requirements and certain limitations on the amount of contractholder deposits, as well as a required minimum allocation to our general account for certain of our products. We have also introduced products that diversify our risk profile and have incorporated provisions in product design allowing frequent revisions of key pricing elements for certain products. In addition, there is diversity in our fee arrangements, as certain fees are primarily based on the benefit guarantee amount, the contractholder account value and/or premiums, which helps preserve certain revenue streams when market fluctuations cause account values to decline.

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External Reinsurance

As of March 31, 2019, the living benefit guarantees associated with $3.1 billion of HDI v3.0 account values are reinsured to Union Hamilton Reinsurance Ltd., an external counterparty, pursuant to a quota share agreement that covered approximately 50% of new business between April 1, 2015 and December 31, 2016. HDI v3.0 is the current version of our “highest daily” living benefits guarantee that is available with our Prudential Premier® Retirement Variable Annuity. New sales of HDI v3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement.

Asset Liability Management Strategy (including fixed income instruments and derivatives)

The current ALM strategy conducted within PALAC and Prudential Insurance utilizes a combination of both traditional fixed income instruments and derivatives to defray potential claims associated with our variable annuity living benefit guarantees. The economic liability we manage with this ALM strategy consists of expected living benefit claims under less severe market conditions, which are managed using a traditional ALM strategy through the accumulation of fixed income and derivative instruments, and potential living benefit claims resulting from more severe market conditions, which are hedged using derivative instruments. For the portion of our ALM strategy executed with derivatives, PALAC and Prudential Insurance enter into a range of exchange-traded, cleared, and over-the-counter (“OTC”) equity and interest rate derivatives, including, but not limited to: equity and treasury futures; total return and interest rate swaps; and options including equity options, swaptions, and floors and caps. Since the ALM strategy is conducted in PALAC and Prudential Insurance, the results of the strategy do not directly impact the Company's results of operations or financial condition.

Capital Hedge Program

We employ a capital hedge program within PALAC to further hedge equity market impacts. The program is intended to protect a portion of the overall capital position of the variable annuities business against its exposure to the equity markets. The capital hedge program is conducted using equity derivatives which include equity call and put options, total return swaps and futures contracts. Since the capital hedge program is conducted in PALAC, the results of the strategy do not directly impact the Company's results of operations or financial condition.

Income Taxes

For information regarding income taxes, see Note 7 to the Unaudited Interim Consolidated Financial Statements.

Liquidity and Capital Resources

This section supplements and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Overview

Liquidity refers to the ability to generate sufficient cash resources to meet the payment obligations of the Company. Capital refers to the long-term financial resources available to support the operations of our businesses, fund business growth, and provide a cushion to withstand adverse circumstances. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our businesses, general economic conditions, our ability to borrow from affiliates and our access to the capital markets through affiliates as described herein.

Effective and prudent liquidity and capital management is a priority across the organization. Management monitors the liquidity of Prudential Financial, Prudential Insurance and the Company on a daily basis and projects borrowing and capital needs over a multi-year time horizon through our periodic planning process. We believe that cash flows from available sources of funds are sufficient to satisfy the current liquidity requirements of Prudential Insurance, Prudential Financial and the Company, including under reasonably foreseeable stress scenarios. Prudential Financial has a capital management framework in place that governs the allocation of capital and approval of capital uses. Prudential Financial and the Company also employ a “Capital Protection Framework” to ensure the availability of capital resources to maintain adequate capitalization under various stress scenarios.

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Our businesses are subject to comprehensive regulation and supervision by domestic and international regulators. These regulations currently include, or may include in the future requirements and limitations (many of which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, credit exposure reporting and credit concentration. For information on these regulatory initiatives and their potential impact on us, see "Business—Regulation” and “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Capital

Our capital management framework is primarily based on statutory Risk-Based Capital ("RBC") measures. The RBC ratios are a primary measure of the capital adequacy of the Company. RBC is calculated based on statutory financial statements and risk formulas consistent with the practices of the National Association of Insurance Commissioners ("NAIC"). RBC considers, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer’s products and liabilities, interest rate risks and general business risks. RBC ratio calculations are intended to assist insurance regulators in measuring an insurer’s solvency and ability to pay future claims. The reporting of RBC measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities, but is available to the public. The Company’s capital levels substantially exceed the minimum level required by applicable insurance regulations. Our regulatory capital levels may be affected in the future by changes to the applicable regulations, proposals for which are currently under consideration by both domestic and international insurance regulators.

In 2018, the NAIC’s RBC framework was revised to reflect the reduction of the corporate tax rate from 35% to 21% under the Tax Act of 2017. The revisions apply to the calculation of our RBC ratios, beginning as of December 31, 2018. While there is no impact on our ability to pay claims, these revisions to the RBC framework have had the effect of increasing certain RBC factors, resulting in an overall decrease in insurers’ RBC ratios.

The regulatory capital level of the Company can be materially impacted by interest rate and equity market fluctuations, changes in the values of derivatives, the level of impairments recorded, credit quality migration of the investment portfolio, and business growth, among other items. In addition, the reinsurance of business or the recapture of business subject to reinsurance arrangements due to defaults by, or credit quality migration affecting, the reinsurers or for other reasons could negatively impact regulatory capital levels. The Company’s regulatory capital level is also affected by statutory accounting rules, which are subject to change by each applicable insurance regulator.

Capital Protection Framework

Prudential Financial and the Company employ a "Capital Protection Framework" ("Framework”) to ensure that sufficient capital resources are available to maintain adequate capitalization and competitive RBC ratios and solvency margins under various stress scenarios. The Framework incorporates the potential impacts from market related stresses, including equity markets, real estate, interest rates, and credit losses.

The Framework accommodates periodic volatility within ranges that are deemed acceptable, while also providing for additional potential sources of capital, including on-balance sheet capital, derivatives, and contingent sources of capital. We believe we currently have access to sufficient resources, either directly, or indirectly through Prudential Financial, to maintain adequate capitalization under a range of potential stress scenarios.

Affiliated Captive Reinsurance Companies

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Capital—Affiliated Captive Reinsurance Companies” included in our Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of our use of captive reinsurance companies.

Liquidity

Our liquidity is managed to ensure stable, reliable and cost-effective sources of cash flows to meet all of our obligations. Liquidity is provided by a variety of sources, as described more fully below, including portfolios of liquid assets. Our investment portfolios are integral to the overall liquidity of the Company. We use a projection process for cash flows from operations to ensure sufficient liquidity to meet projected cash outflows, including claims. The impact of Prudential Funding, LLC’s, or Prudential Funding, a wholly-owned subsidiary of Prudential Insurance, financing capacity on liquidity is considered in the internal liquidity measures of the Company.

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Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support. We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures to evaluate our liquidity under various stress scenarios, including company-specific and market-wide events. We continue to believe that cash generated by ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios.

Cash Flow

The principal sources of the Company’s liquidity are premiums and certain annuity considerations, investment and fee income, investment maturities and sales as well as internal borrowings. The principal uses of that liquidity include benefits, claims, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity. Other uses of liquidity may include commissions, general and administrative expenses, purchases of investments, the payment of dividends to the parent company, hedging and reinsurance activity and payments in connection with financing activities.

Liquid Assets

Liquid assets include cash and cash equivalents, short-term investments, U.S. Treasury fixed maturities, fixed maturities that are not designated as held-to-maturity and public equity securities. As of March 31, 2019 and December 31, 2018 the Company had liquid assets of $6,087 million and $5,695 million, respectively. The portion of liquid assets comprised of cash and cash equivalents and short-term investments was $403 million and $417 million as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019, $5,254 million, or 94%, of the fixed maturity investments in Company general account portfolios were rated high or highest quality based on NAIC or equivalent rating.

Term and Universal Life Reserve Financing

The Company uses affiliated captive reinsurance companies to finance the portion of the statutory reserves required to be held under Regulation XXX and Guideline AXXX that is considered to be non-economic. The financing arrangements involve the reinsurance of term and universal life business to our affiliated captive reinsurers and the issuance of surplus notes by those affiliated captives that are treated as capital for statutory purposes. These surplus notes are subordinated to policyholder obligations, and the payment of principal and interest on the surplus notes can only be made with prior insurance regulatory approval.

As of March 31, 2019, the affiliated captive reinsurance companies have entered into agreements with external counterparties providing for the issuance of up to an aggregate of $13.7 billion of surplus notes by our affiliated captive reinsurers in return for the receipt of credit-linked notes (“Credit-Linked Note Structures”), of which $11.4 billion of surplus notes was outstanding as of December 31, 2018. Under the agreements, the affiliated captive receives in exchange for the surplus notes one or more credit-linked notes issued by a special-purpose affiliate of the Company with an aggregate principal amount equal to the surplus notes outstanding. The affiliated captive holds the credit-linked notes as assets supporting Regulation XXX or Guideline AXXX non-economic reserves, as applicable. For more information on the Credit-Linked Note Structures, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Financing Activities" in the Annual Report on Form 10-K for the year ended December 31, 2018.

In addition, as of March 31, 2019, our affiliated captive reinsurance companies had outstanding an aggregate of $2.3 billion of debt issued for the purpose of financing Regulation XXX and Guideline AXXX non-economic reserves, of which approximately $0.6 billion relates to Regulation XXX reserves and approximately $1.7 billion relates to Guideline AXXX reserves. In addition, as of March 31, 2019, for purposes of financing Guideline AXXX reserves, our affiliated captives had outstanding approximately $4.0 billion of surplus notes that were issued to affiliates.

The Company has introduced updated versions of several products in its individual life product portfolio in conjunction with the requirement to adopt principle-based reserving by January 1, 2020. During 2017, the Company adopted principle-based reserving for its guaranteed universal life products and introduced updated versions of these products. The guaranteed universal life updated products support the principle-based statutory reserve level without the need for captive reserve financing. The Company is continuing to assess the impact of this new reserving approach on projected statutory reserve levels and product pricing for its remaining portfolio of individual life product offerings.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of fluctuations in the value of financial instruments as a result of absolute or relative changes in interest rates, foreign currency exchange rates, equity prices or commodity prices. To varying degrees, our products and services, and the investment activities supporting them, generate exposure to market risk. The market risk incurred, and our strategies for managing this risk, vary by product. As of March 31, 2019, there have been no material changes in our economic exposure to market risk from December 31, 2018, a description of which may be found in our Annual Report on Form 10-K for the year ended December 31, 2018, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” filed with the SEC. See Item 1A, “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.

Item 4.  Controls and Procedures

In order to ensure that the information we must disclose in our filings with the SEC is recorded, processed, summarized, and reported on a timely basis, the Company’s management, including our Chief Executive Officer and Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Securities Exchange Act of 1934, as amended (“Exchange Act”) Rule 13a-15(e), as of March 31, 2019. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2019, our disclosure controls and procedures were effective. No change in our internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f), occurred during the quarter ended March 31, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1.  Legal Proceedings

See Note 10 to the Unaudited Interim Consolidated Financial Statements under “—Litigation and Regulatory Matters” for a description of certain pending litigation and regulatory matters affecting us, and certain risks to our business presented by such matters, which is incorporated herein by reference.

Item 1A. Risk Factors

You should carefully consider the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018. These risks could materially affect our business, results of operations or financial condition or cause our actual results to differ materially from those expected or those expressed in any forward-looking statements made by or on behalf of the Company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” above and the risks of our business described elsewhere in this Quarterly Report on Form 10-Q.

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Item 6. Exhibits

EXHIBIT INDEX

31.1 Section 302 Certification of the Chief Executive Officer

31.2 Section 302 Certification of the Chief Financial Officer

32.1 Section 906 Certification of the Chief Executive Officer

32.2 Section 906 Certification of the Chief Financial Officer

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pruco Life Insurance Company
By:	/s/    John Chieffo
Name:	John Chieffo
	Vice President and Chief Financial Officer
	(Authorized Signatory and Principal Financial Officer)

Date: May 9, 2019

57

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I,  Kent D. Sluyter, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Pruco Life Insurance Company;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2019

/s/ Kent D. Sluyter

Kent D. Sluyter

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I,  John Chieffo, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of Pruco Life Insurance Company;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2019

/s/ John Chieffo

John Chieffo

Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. § 1350, I, Kent D. Sluyter, President and Chief Executive Officer of Pruco Life Insurance Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2019

/s/ Kent D. Sluyter

Kent D. Sluyter

President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350, I, John Chieffo, Vice President and Chief Financial Officer of Pruco Life Insurance Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2019

/s/ John Chieffo

John Chieffo

Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

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	Mar. 31, 2019	May 09, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
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Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	PRUCO LIFE INSURANCE CO
Entity Central Index Key	0000777917
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		250,000

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Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Fixed maturities, available for sale, at fair value (amortized cost: 2019 – $5,468,161; 2018 - $5,244,903)	$ 5,606,209	$ 5,199,595
Fixed maturities, trading, at fair value (amortized cost: 2019 – $44,759; 2018 – $44,759)	43,000	41,627
Equity securities, at fair value (cost: 2019 – $28,920; 2018 – $31,824)	34,747	36,922
Policy loans	1,251,094	1,236,077
Commercial mortgage and other loans	1,212,618	1,209,150
Other invested assets (includes $88,109 and $120,717 measured at fair value at March 31, 2019 and December 31, 2018, respectively)	358,288	377,429
Total investments	8,505,956	8,100,800
Cash and cash equivalents	403,283	416,840
Deferred policy acquisition costs	1,675,860	1,613,922
Accrued investment income	89,358	88,278
Reinsurance recoverables	36,106,323	34,682,127
Receivables from parent and affiliates	278,050	289,580
Income Taxes Receivable	29,763	46,102
Other assets	378,154	365,219
Separate account assets	128,998,408	119,077,916
TOTAL ASSETS	176,465,155	164,680,784
LIABILITIES
Policyholders’ account balances	22,209,376	22,059,692
Future policy benefits	20,943,806	19,476,394
Cash collateral for loaned securities	10,334	11,063
Payables to parent and affiliates	217,073	229,345
Other liabilities	1,133,756	1,093,143
Separate account liabilities	128,998,408	119,077,916
TOTAL LIABILITIES	173,512,753	161,947,553
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding)	2,500	2,500
Additional paid-in capital	1,146,588	1,146,592
Retained earnings	1,699,109	1,612,435
Accumulated other comprehensive income (loss)	104,205	(28,296)
TOTAL EQUITY	2,952,402	2,733,231
TOTAL LIABILITIES AND EQUITY	$ 176,465,155	$ 164,680,784

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Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Fixed maturities, available for sale, amortized cost	$ 5,468,161	$ 5,244,903
Fixed maturities, trading, amortized cost	44,759	44,759
Equity securities, cost	28,920	31,824
Other invested assets, at fair value	$ 88,109	$ 120,717
Common stock, par value (in dollars per share)	$ 10	$ 10
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	250,000	250,000
Common stock, shares outstanding	250,000	250,000

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Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES
Premiums	$ 13,994	$ 7,915
Policy charges and fee income	139,189	129,155
Net investment income	93,250	77,915
Asset administration fees	3,657	3,473
Other income	20,957	19,296
Realized investment gains (losses), net:
Other-than-temporary impairments on fixed maturity securities	(2,784)	(594)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income	(379)	0
Other realized investment gains (losses), net	(45,472)	(48,448)
Total realized investment gains (losses), net	(48,635)	(49,042)
TOTAL REVENUES	222,412	188,712
BENEFITS AND EXPENSES
Policyholders’ benefits	39,478	51,736
Interest credited to policyholders’ account balances	44,197	40,798
Amortization of deferred policy acquisition costs	19,179	26,145
General, administrative and other expenses	47,944	60,790
TOTAL BENEFITS AND EXPENSES	150,798	179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	71,614	9,243
Income tax expense (benefit)	(16,880)	(2,699)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	88,494	11,942
Equity in earnings of operating joint venture, net of taxes	(706)	(638)
NET INCOME (LOSS)	87,788	11,304
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	6,049	(923)
Net unrealized investment gains (losses)	160,085	(145,051)
Total	166,134	(145,974)
Less: Income tax expense (benefit) related to other comprehensive income (loss)	33,633	(30,700)
Other comprehensive income (loss), net of tax	132,501	(115,274)
COMPREHENSIVE INCOME (LOSS)	$ 220,289	$ (103,970)

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Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Equity
Beginning Balance at Dec. 31, 2017			$ 2,500	$ 1,141,092	$ 1,526,310	$ 165,346	$ 2,835,248
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributed capital				5,500			5,500
Contributed (distributed) capital-parent/child asset transfers				0
Comprehensive income (loss):
Net income (loss)		$ 11,304			11,304		11,304
Other comprehensive income (loss), net of tax		(115,274)				(115,274)	(115,274)
Total comprehensive income (loss)							(103,970)
Ending Balance at Mar. 31, 2018			2,500	1,146,592	1,515,151	78,932	2,743,175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption | ASU 2016-01					7,936	(1,539)	6,397
Cumulative effect of adoption | ASU 2018-02					(30,399)	30,399	0
Cumulative effect of adoption		(27)
Beginning Balance at Dec. 31, 2018			2,500	1,146,592	1,612,435	(28,296)	2,733,231
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributed capital				0			0
Contributed (distributed) capital-parent/child asset transfers				(4)			(4)
Comprehensive income (loss):
Net income (loss)		87,788			87,788		87,788
Other comprehensive income (loss), net of tax		$ 132,501				132,501	132,501
Total comprehensive income (loss)							220,289
Ending Balance at Mar. 31, 2019			$ 2,500	$ 1,146,588	1,699,109	104,205	2,952,402
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption	[1]				$ (1,114)	$ 0	$ (1,114)

[1] (1)Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2.

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Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 87,788	$ 11,304
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income	(28,634)	(23,697)
Interest credited to policyholders’ account balances	44,197	40,798
Realized investment (gains) losses, net	48,635	49,042
Amortization and other non-cash items	(21,640)	(9,397)
Change in:
Future policy benefits	437,726	508,412
Reinsurance recoverables	(423,868)	(424,467)
Accrued investment income	(1,080)	(1,537)
Net payables to/receivables from parent and affiliates	(6,905)	29,615
Deferred policy acquisition costs	(74,610)	(45,642)
Income taxes	(16,996)	(2,902)
Derivatives, net	66,403	(41,944)
Other, net	(83,032)	(97,354)
Cash flows from (used in) operating activities	27,984	(7,769)
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	70,725	69,410
Equity securities	3,553	6
Policy loans	38,542	39,271
Ceded policy loans	(3,325)	(5,192)
Short-term investments	0	3,513
Commercial mortgage and other loans	12,184	16,369
Other invested assets	4,784	2,502
Payments for the purchase/origination of:
Fixed maturities, available-for-sale	(298,629)	(188,613)
Equity securities	(110)	(5,000)
Policy loans	(42,342)	(35,689)
Ceded policy loans	4,344	4,957
Short-term investments	0	(3,400)
Commercial mortgage and other loans	(14,143)	(69,717)
Other invested assets	(10,745)	(30,358)
Notes receivable from parent and affiliates, net	8,251	3,853
Derivatives, net	306	(776)
Other, net	(1,408)	(1,465)
Cash flows from (used in) investing activities	(228,013)	(200,329)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account deposits	1,284,926	1,119,440
Ceded policyholders’ account deposits	(854,083)	(757,139)
Policyholders’ account withdrawals	(858,819)	(694,382)
Ceded policyholders’ account withdrawals	602,592	437,445
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities	(729)	(19,593)
Contributed (distributed) capital - parent/child asset transfers	(5)	0
Net change in financing arrangements (maturities 90 days or less)	0	80
Drafts outstanding	12,590	(9,136)
Cash flows from (used in) financing activities	186,472	76,715
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(13,557)	(131,383)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	416,840	212,569
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 403,283	$ 81,186

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Business and Basis of Presentation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

BUSINESS AND BASIS OF PRESENTATION

Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors.

Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and had one indirect subsidiary formed in 2009 for the purpose of holding certain commercial mortgage loans and other investments, which ceased operations and was dissolved as of December 31, 2018. Pruco Life and its subsidiary are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis.

PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only.

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Revision to Prior Period Consolidated Financial Statements

In 2018, the Company identified an error in the calculation of reserves for certain individual life insurance products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements. See Note 11 for a more detailed description of the revisions and for comparisons of amounts previously reported to the revised amounts.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

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Significant Accounting Policies and Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies and Pronouncements

SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

ASU adopted during the three months ended March 31, 2019.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures.

ASU issued but not yet adopted as of March 31, 2019 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

ASU 2018-12 Amended Topic	Description	Method of adoption	Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations.	An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method.	The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI").	As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.	Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.
Amortization of DAC and other balances	Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.	An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.	The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits	Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI.	An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented.	Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed.

Other ASU issued but not yet adopted as of March 31, 2019

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company does not plan to early adopt this ASU and is currently assessing its impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

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Investments

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Investments

3.    INVESTMENTS

Fixed Maturity Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	77,354	$	2,645	$	0	$	79,999	$	0
Obligations of U.S. states and their political subdivisions	608,071		31,553		18		639,606		0
Foreign government bonds	209,128		8,172		2,488		214,812		0
U.S. public corporate securities	1,926,382		96,244		17,364		2,005,262		0
U.S. private corporate securities	890,441		19,701		9,185		900,957		0
Foreign public corporate securities	289,697		10,112		3,953		295,856		0
Foreign private corporate securities	885,807		19,955		25,216		880,546		0
Asset-backed securities(1)	148,802		1,462		531		149,733		(85		)
Commercial mortgage-backed securities	345,909		7,239		1,379		351,769		0
Residential mortgage-backed securities(2)	86,570		1,482		383		87,669		(172		)
Total fixed maturities, available-for-sale	$	5,468,161	$	198,565	$	60,517	$	5,606,209	$	(257	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	75,049	$	2,427	$	6	$	77,470	$	0
Obligations of U.S. states and their political subdivisions	609,955		15,154		2,351		622,758		0
Foreign government bonds	208,009		2,137		8,199		201,947		0
U.S. public corporate securities	1,739,860		46,166		54,401		1,731,625		0
U.S. private corporate securities	890,748		11,181		18,591		883,338		0
Foreign public corporate securities	270,428		3,746		12,151		262,023		0
Foreign private corporate securities	857,604		9,797		40,022		827,379		0
Asset-backed securities(1)	156,818		1,528		750		157,596		(122		)
Commercial mortgage-backed securities	347,570		3,353		4,527		346,396		0
Residential mortgage-backed securities(2)	88,862		1,268		1,067		89,063		(177		)
Total fixed maturities, available-for-sale	$	5,244,903	$	96,757	$	142,065	$	5,199,595	$	(299	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.4 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2019
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		6,771		18		6,771		18
Foreign government bonds	4,181		28		71,392		2,460		75,573		2,488
U.S. public corporate securities	110,017		2,347		330,357		15,017		440,374		17,364
U.S. private corporate securities	54,835		4,183		194,614		5,002		249,449		9,185
Foreign public corporate securities	7,508		93		83,890		3,860		91,398		3,953
Foreign private corporate securities	114,485		3,592		228,928		21,624		343,413		25,216
Asset-backed securities	98,426		473		10,015		58		108,441		531
Commercial mortgage-backed securities	0		0		110,228		1,379		110,228		1,379
Residential mortgage-backed securities	186		1		28,181		382		28,367		383
Total fixed maturities, available-for-sale	$	389,638	$	10,717	$	1,064,376	$	49,800	$	1,454,014	$	60,517

	December 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	630	$	6	$	630	$	6
Obligations of U.S. states and their political subdivisions	124,776		1,571		31,215		780		155,991		2,351
Foreign government bonds	77,055		3,184		59,700		5,015		136,755		8,199
U.S. public corporate securities	784,916		37,635		213,147		16,766		998,063		54,401
U.S. private corporate securities	263,934		9,159		287,031		9,432		550,965		18,591
Foreign public corporate securities	124,764		6,286		72,725		5,865		197,489		12,151
Foreign private corporate securities	424,921		22,605		127,201		17,417		552,122		40,022
Asset-backed securities	112,527		650		6,523		100		119,050		750
Commercial mortgage-backed securities	49,616		434		116,786		4,093		166,402		4,527
Residential mortgage-backed securities	34,249		240		32,432		827		66,681		1,067
Total fixed maturities, available-for-sale	$	1,996,758	$	81,764	$	947,390	$	60,301	$	2,944,148	$	142,065

As of March 31, 2019 and December 31, 2018, the gross unrealized losses on fixed maturity securities were composed of $46.4 million and $121.3 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $14.1 million and $20.8 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2019, the $49.8 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and energy sectors. As of December 31, 2018, the $60.3 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, energy and consumer non-cyclical sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either March 31, 2019 or December 31, 2018. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of March 31, 2019, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2019
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	206,941	$	208,192
Due after one year through five years	705,933		703,752
Due after five years through ten years	993,523		1,008,175
Due after ten years	2,980,483		3,096,919
Asset-backed securities	148,802		149,733
Commercial mortgage-backed securities	345,909		351,769
Residential mortgage-backed securities	86,570		87,669
Total fixed maturities, available-for-sale	$	5,468,161	$	5,606,209

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	24,787		$	16,852
Proceeds from maturities/prepayments	52,875			54,310
Gross investment gains from sales and maturities	949			144
Gross investment losses from sales and maturities	(1,970		)	(359		)
OTTI recognized in earnings(2)	(3,163		)	(594		)

(1) Includes $6.9 million and $1.8 million of non-cash related proceeds due to the timing of trade settlements for the three months ended March 31, 2019 and 2018, respectively.

(2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	1,291		$	4,374
New credit loss impairments	3,022			0
Increases due to the passage of time on previously recorded credit losses	10			37
Reductions for securities which matured, paid down, prepaid or were sold during the period	(593		)	(42		)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(120		)	(25		)
Balance, end of period	$	3,610		$	4,344

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $0.7 million and $(1.2) million during the three months ended March 31, 2019 and 2018, respectively.

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:

	March 31, 2019					December 31, 2018
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	356,454		29.3	%	$	362,811		29.9	%
Hospitality	15,969			1.3		16,083			1.3
Industrial	271,953			22.5		263,999			21.8
Office	191,236			15.7		187,450			15.5
Other	131,850			10.9		131,961			10.9
Retail	192,381			15.8		193,473			16.0
Total commercial mortgage loans	1,159,843			95.5		1,155,777			95.4
Agricultural property loans	54,833			4.5		55,438			4.6
Total commercial mortgage and agricultural property loans by property type	1,214,676			100.0	%	1,211,215			100.0	%
Allowance for credit losses	(2,058		)			(2,065		)
Total commercial mortgage and other loans	$	1,212,618				$	1,209,150

As of March 31, 2019, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (21%), Texas (14%) and New York (7%)) and included loans secured by properties in Europe (6%), Australia (4%) and Mexico (2%).

The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	Commercial Mortgage Loans			Agricultural Property Loans			Total
	(in thousands)
Balance at December 31, 2017	$	1,728		$	66		$	1,794
Addition to (release of) allowance for credit losses	298			(27		)	271
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2018	2,026			39			2,065
Addition to (release of) allowance for credit losses	(10		)	3			(7		)
Charge-offs, net of recoveries	0			0			0
Balance at March 31, 2019	$	2,016		$	42		$	2,058

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2019
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,016		42		2,058
Total ending balance(1)	$	2,016	$	42	$	2,058
Recorded investment(2):
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,159,843		54,833		1,214,676
Total ending balance(1)	$	1,159,843	$	54,833	$	1,214,676

(1) As of March 31, 2019, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,026		39		2,065
Total ending balance(1)	$	2,026	$	39	$	2,065
Recorded investment(2):
Individually evaluated for impairment	$	0	$	816	$	816
Collectively evaluated for impairment	1,155,777		54,622		1,210,399
Total ending balance(1)	$	1,155,777	$	55,438	$	1,211,215

(1) As of December 31, 2018, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2019
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	698,110	$	14,468	$	0	$	712,578
60%-69.99%	316,532		16,469		0		333,001
70%-79.99%	114,257		27,612		0		141,869
80% or greater	27,000		0		228		27,228
Total commercial mortgage and agricultural property loans	$	1,155,899	$	58,549	$	228	$	1,214,676

	December 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	696,507	$	12,771	$	80	$	709,358
60%-69.99%	321,586		18,525		0		340,111
70%-79.99%	105,727		27,790		0		133,517
80% or greater	28,000		229		0		28,229
Total commercial mortgage and agricultural property loans	$	1,151,820	$	59,315	$	80	$	1,211,215

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,159,843	$	0	$	0	$	0	$	1,159,843	$	0
Agricultural property loans	54,833		0		0		0		54,833		0
Total	$	1,214,676	$	0	$	0	$	0	$	1,214,676	$	0

(1) As of March 31, 2019, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,155,777	$	0	$	0	$	0	$	1,155,777	$	0
Agricultural property loans	55,438		0		0		0		55,438		0
Total	$	1,211,215	$	0	$	0	$	0	$	1,211,215	$	0

(1) As of December 31, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

For the three months ended March 31, 2019 and 2018, there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three months ended March 31, 2019, there were $5 million of commercial mortgage and other loans sold. For the three months ended March 31, 2018, there were no commercial mortgage and other loans sold.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2019		December 31, 2018
	(in thousands)
Company’s investment in separate accounts	$	41,577	$	40,126
LPs/LLCs:
Equity method:
Private equity	158,754		149,164
Hedge funds	59,513		57,171
Real estate-related	10,335		10,251
Subtotal equity method	228,602		216,586
Fair value:
Private equity	61,817		60,118
Hedge funds	769		762
Real estate-related	10,055		9,024
Subtotal fair value	72,641		69,904
Total LPs/LLCs	301,243		286,490
Derivative instruments	15,468		50,813
Total other invested assets	$	358,288	$	377,429

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale	$	56,266		$	53,260
Fixed maturities, trading	308			266
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,491			12,405
Policy loans	16,199			15,904
Short-term investments and cash equivalents	2,311			323
Other invested assets	9,911			115
Gross investment income	97,707			82,494
Less: investment expenses	(4,457		)	(4,579		)
Net investment income	$	93,250		$	77,915

Realized Investment Gains (Losses), Net 

The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities(1)	$	(4,184	)	$	(809	)
Commercial mortgage and other loans	7			131
LPs/LLCs	12			847
Derivatives	(44,477		)	(49,193		)
Short-term investments and cash equivalents	7			(18		)
Realized investment gains (losses), net	$	(48,635	)	$	(49,042	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2019			December 31, 2018
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	(408	)	$	(689	)
Fixed maturity securities, available-for-sale—all other	138,456			(44,619		)
Derivatives designated as cash flow hedges(1)	15,441			22,122
Affiliated notes	2,899			810
Other investments	4,942			5,055
Net unrealized gains (losses) on investments	$	161,330		$	(17,321	)

(1) For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of March 31, 2019 and December 31, 2018, the Company had no repurchase agreements.

The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	March 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	3,109	$	0	$	3,109	$	8,169	$	0	$	8,169
Foreign government bonds	2,121		0		2,121		0		0		0
U.S. public corporate securities	2,745		0		2,745		628		0		628
Foreign public corporate securities	2,359		0		2,359		2,266		0		2,266
Total cash collateral for loaned securities(1)	$	10,334	$	0	$	10,334	$	11,063	$	0	$	11,063

(1)

The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

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Derivative Instruments

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to:

• Interest rate contracts: futures, swaps, options, swaptions, caps and floors

•Equity contracts: futures, options and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

Other types of financial contracts that the Company accounts for as derivatives include:

•Embedded derivatives

For detailed information on these contracts and the related strategies, see Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Primary Risks Managed by Derivatives

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR.

	March 31, 2019							December 31, 2018
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Total Derivatives Designated as Hedge Accounting Instruments	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,925	$	20,945	$	0		$	246,925	$	15,665	$	(3,174	)
Foreign Currency
Foreign Currency Forwards	23,318		331		(38		)	23,043		277		(20		)
Credit
Credit Default Swaps	0		0		0			756		0		(9		)
Currency/Interest Rate
Foreign Currency Swaps	113,062		5,987		(1,035		)	98,363		6,303		(2,109		)
Equity
Equity Options	2,123,153		70,934		(19,071		)	1,981,693		17,312		(4,912		)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	2,506,458	$	98,197	$	(20,144	)	$	2,350,780	$	39,557	$	(10,224	)
Total Derivatives(1)(2)	$	3,245,456	$	131,368	$	(39,763	)	$	3,070,256	$	77,890	$	(26,862	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

(2) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position.

The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $6,459 million and $5,589 million as of March 31, 2019 and December 31, 2018, respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables" or "Other liabilities," was a net asset of $6,468 million and $5,600 million as of March 31, 2019 and December 31, 2018, respectively. Of these reinsurance recoverables, the fair value related to the living benefits guarantee from Prudential Annuities Life Assurance Corporation ("PALAC") and Prudential Insurance was a net asset of $6,430 million and $5,585 million and the fair value related to the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income ("HDI") v.3.0 from Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty, was a net asset of $38 million and $15 million as of March 31, 2019 and December 31, 2018, respectively. See Note 6 for additional information on these reinsurance agreements.

The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $53 million and $13 million as of March 31, 2019 and December 31, 2018, respectively. There were no related reinsurance recoverables at each respective period.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2019
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Securities purchased under agreements to resell	0		0			0		0			0
Total Assets	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Offsetting of Financial Liabilities:
Derivatives(1)	$	39,763	$	(39,763	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	39,763	$	(39,763	)	$	0	$	0		$	0

	December 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	77,887	$	(27,078	)	$	50,809	$	(7,307	)	$	43,502
Securities purchased under agreements to resell	143,000		0			143,000		(143,000		)	0
Total Assets	$	220,887	$	(27,078	)	$	193,809	$	(150,307	)	$	43,502
Offsetting of Financial Liabilities:
Derivatives(1)	$	26,862	$	(26,862	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	26,862	$	(26,862	)	$	0	$	0		$	0

(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty.

For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Cash Flow Hedges

The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships.

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2019
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(160	)	$	2,069	$	(1,515	)	$	(6,654	)
Total cash flow hedges	(160		)	2,069		(1,515		)	(6,654		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	7,616			0		0			0
Currency	(20		)	0		0			0
Currency/Interest Rate	1,430			0		1			0
Credit	(1		)	0		0			0
Equity	28,863			0		0			0
Embedded Derivatives	(82,205		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(44,317		)	0		1			0
Total	$	(44,477	)	$	2,069	$	(1,514	)	$	(6,654	)

	Three Months Ended March 31, 2018(2)
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(517	)	$	1,538	$	(664	)	$	(22,862	)
Total cash flow hedges	(517		)	1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,334		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(48,676		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

(1) Net change in AOCI.

(2) Prior period amounts have been updated to conform to current period presentation.

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2018	$	22,122
Cumulative-effect adjustment from the adoption of ASU 2017-12(1)	(27		)
Amount recorded in AOCI
Currency/Interest Rate	(6,260		)
Total amount recorded in AOCI	(6,260		)
Amount reclassified from AOCI to income
Currency/Interest Rate	(394		)
Total amount reclassified from AOCI to income	(394		)
Balance, March 31, 2019	$	15,441

(1) See Note 2 for details.

The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2019 values, it is estimated that a pre-tax gain of $7 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2020, offset by amounts pertaining to the hedged items.

The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments.

There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging.

Credit Derivatives

The Company has no exposure from credit derivative positions where it has written credit protection as of March 31, 2019 and December 31, 2018.

The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0.0 million and $1 million reported as of March 31, 2019 and December 31, 2018, respectively with a fair value of $0.0 million for both periods.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

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Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2019
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,811	$	32,188	$	0		$	79,999
Obligations of U.S. states and their political subdivisions	0		639,606		0		0			639,606
Foreign government bonds	0		214,648		164		0			214,812
U.S. corporate public securities	0		2,005,259		3		0			2,005,262
U.S. corporate private securities	0		857,453		43,504		0			900,957
Foreign corporate public securities	0		295,645		211		0			295,856
Foreign corporate private securities	0		869,304		11,242		0			880,546
Asset-backed securities(2)	0		147,000		2,733		0			149,733
Commercial mortgage-backed securities	0		274,698		77,071		0			351,769
Residential mortgage-backed securities	0		87,669		0		0			87,669
Subtotal	0		5,439,093		167,116		0			5,606,209
Fixed maturities, trading	0		43,000		0		0			43,000
Equity securities	140		18,616		15,991		0			34,747
Cash equivalents	104,949		250,219		0		0			355,168
Other invested assets(3)	0		131,364		4		(115,900		)	15,468
Reinsurance recoverables	0		0		6,468,704		0			6,468,704
Receivables from parent and affiliates	0		120,687		7,792		0			128,479
Subtotal excluding separate account assets	105,089		6,002,979		6,659,607		(115,900		)	12,651,775
Separate account assets(4)(5)	0		124,615,650		0		0			124,615,650
Total assets	$	105,089	$	130,618,629	$	6,659,607	$	(115,900	)	$	137,267,425
Future policy benefits(6)	$	0	$	0	$	6,459,377	$	0		$	6,459,377
Policyholders' account balances	0		0		53,136		0			53,136
Payables to parent and affiliates	0		39,763		0		(39,763		)	0
Total liabilities	$	0	$	39,763	$	6,512,513	$	(39,763	)	$	6,512,513

	As of December 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,654	$	29,816	$	0		$	77,470
Obligations of U.S. states and their political subdivisions	0		622,758		0		0			622,758
Foreign government bonds	0		201,947		0		0			201,947
U.S. corporate public securities	0		1,731,623		2		0			1,731,625
U.S. corporate private securities	0		838,497		44,841		0			883,338
Foreign corporate public securities	0		262,023		0		0			262,023
Foreign corporate private securities	0		815,634		11,745		0			827,379
Asset-backed securities(2)	0		151,040		6,556		0			157,596
Commercial mortgage-backed securities	0		346,396		0		0			346,396
Residential mortgage-backed securities	0		89,063		0		0			89,063
Subtotal	0		5,106,635		92,960		0			5,199,595
Fixed maturities, trading	0		41,627		0		0			41,627
Equity securities	131		20,794		15,997		0			36,922
Cash equivalents	69,903		147,043		0		0			216,946
Other invested assets(3)	0		77,886		4		(27,078		)	50,812
Reinsurance recoverables	0		0		5,600,008		0			5,600,008
Receivables from parent and affiliates	0		125,381		9,261		0			134,642
Subtotal excluding separate account assets	70,034		5,519,366		5,718,230		(27,078		)	11,280,552
Separate account assets(4)(5)	0		114,947,872		0		0			114,947,872
Total assets	$	70,034	$	120,467,238	$	5,718,230	$	(27,078	)	$	126,228,424
Future policy benefits(6)	$	0	$	0	$	5,588,840	$	0		$	5,588,840
Policyholders' account balances	0		0		13,015		0			13,015
Payables to parent and affiliates	0		26,862		0		(26,862		)	0
Total liabilities	$	0	$	26,862	$	5,601,855	$	(26,862	)	$	5,601,855

(1) “Netting” amounts represent cash collateral of $76.1 million and $0.2 million as of March 31, 2019 and December 31, 2018, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2019 and December 31, 2018, the fair values of such investments were $73 million and $70 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of March 31, 2019 and December 31, 2018, the fair value of such investments was $4,383 million and $4,130 million, respectively.

(6) As of March 31, 2019, the net embedded derivative liability position of $6,459 million includes $623 million of embedded derivatives in an asset position and $7,082 million of embedded derivatives in a liability position. As of December 31, 2018, the net embedded derivative liability position of $5,589 million includes $633 million of embedded derivatives in an asset position and $6,222 million of embedded derivatives in a liability position.

Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2019
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	23,065	Discounted cash flow	Discount rate	8.25	%	20.00	%	13.69	%	Decrease
			Liquidation	Liquidation value	13.18	%	13.18	%	13.18	%	Increase
Reinsurance recoverables	$	6,468,704	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	6,459,377	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.35	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	15	%	22	%			Increase

	As of December 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	31,503	Discounted cash flow	Discount rate	7.00	%	20.00	%	10.21	%	Decrease
			Liquidation	Liquidation value	40.71	%	40.71	%	40.71	%	Increase
Reinsurance recoverables	$	5,600,008	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	5,588,840	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.36	%	1.60	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	18	%	22	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread

includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2019 and December 31, 2018, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.

	Three Months Ended March 31, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	29,816		$	0		$	2,372	$	0		$	0		$	0		$	0	$	0	$	0	$	32,188		$	0
Foreign government	0			5			0		0			0			0			0		159		0		164			0
Corporate securities(4)	56,588			(3,412		)	1,331		(28		)	0			(7,097		)	1		7,577		0		54,960			(3,163		)
Structured securities(5)	6,556			1,268			0		(1		)	0			(3,979		)	0		75,960		0		79,804			0
Other assets:
Equity securities	15,997			(6		)	0		0			0			0			0		0		0		15,991			(6		)
Other invested assets	4			0			0		0			0			0			0		0		0		4			0
Short-term investments	0			0			0		0			0			0			0		0		0		0			0
Reinsurance recoverables	5,600,008			633,318			235,378		0			0			0			0		0		0		6,468,704			677,444
Receivables from parent and affiliates	9,261			111			0		0			0			(1,580		)	0		0		0		7,792			0
Liabilities:
Future policy benefits	(5,588,840		)	(637,102		)	0		0			(233,435		)	0			0		0		0		(6,459,377		)	(681,227		)
Policyholders' account balances	(13,015		)	(33,614		)	0		0			0			(6,507		)	0		0		0		(53,136		)	(33,614		)

	Three Months Ended March 31, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,402	)	$	0		$	164	$	99	$	(3,163	)	$	0
Other assets:
Equity securities	0			(6		)	0		0		0			(6		)
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	633,318			0			0		0		677,444			0
Receivables from parent and affiliates	0			0			0		111		0			0
Liabilities:
Future policy benefits	(637,102		)	0			0		0		(681,227		)	0
Policyholders' account balances	(33,614		)	0			0		0		(33,614		)	0

	Three Months Ended March 31, 2018(6)
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales		Issuances			Settlements			Other(2)			Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	19,204		$	0		$	2,365	$	0	$	0		$	0		$	0		$	0	$	0		$	21,569		$	0
Foreign government	0			(8		)	0		0		0			0			174			0		0			166			0
Corporate securities(4)	75,421			936			1,022		0		0			(4,570		)	15			0		(209		)	72,615			(26		)
Structured securities(5)	111,028			131			190		0		0			(3,195		)	0			13,513		(26,794		)	94,873			0
Other assets:
Equity securities	17,525			(486		)	0		0		0			0			0			0		0			17,039			(486		)
Other invested assets	0			1			0		0		0			0			0			9		0			10			2
Short-term investments	1,339			(18		)	3,400		0		0			(3,513		)	(14		)	0		0			1,194			(18		)
Reinsurance recoverables	5,457,649			(1,462,992		)	219,457		0		0			0			0			0		0			4,214,114			(1,409,320		)
Receivables from parent and affiliates	0			(20		)	0		0		0			0			0			6,551		0			6,531			0
Liabilities:
Future policy benefits	(5,452,583		)	1,487,555			0		0		(226,345		)	0			0			0		0			(4,191,373		)	1,433,872
Policyholders' account balances	(46,651		)	5,013			0		0		0			2,122			0			0		0			(39,516		)	5,013
Other liabilities	0			(24,780		)	8,825		0		0			0			0			0		0			(15,955		)	(24,780		)

	Three Months Ended March 31, 2018(6)
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	68		$	0		$	914	$	77	$	(26	)	$	0
Other assets:
Equity securities	0			(486		)	0		0		0			(486		)
Other invested assets	1			0			0		0		2			0
Short-term investments	(18		)	0			0		0		(18		)	0
Reinsurance recoverables	(1,462,992		)	0			0		0		(1,409,320		)	0
Receivables from parent and affiliates	0			(20		)	0		0		0			0
Liabilities:
Future policy benefits	1,487,555			0			0		0		1,433,872			0
Policyholders' account balances	5,013			0			0		0		5,013			0
Other liabilities	(24,780		)	0			0		0		(24,780		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6) Prior period amounts have been updated to conform to current period presentation.

Fair Value of Financial Instruments

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,240,689	$	1,240,689	$	1,212,618
Policy loans	0		0		1,251,094		1,251,094		1,251,094
Cash and cash equivalents	48,115		0		0		48,115		48,115
Accrued investment income	0		89,358		0		89,358		89,358
Receivables from parent and affiliates	0		149,571		0		149,571		149,571
Other assets	0		35,112		0		35,112		35,112
Total assets	$	48,115	$	274,041	$	2,491,783	$	2,813,939	$	2,785,868
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,226,786	$	276,008	$	1,502,794	$	1,507,136
Cash collateral for loaned securities	0		10,334		0		10,334		10,334
Payables to parent and affiliates	0		217,073		0		217,073		217,073
Other liabilities	0		358,256		0		358,256		358,256
Total liabilities	$	0	$	1,812,449	$	276,008	$	2,088,457	$	2,092,799

	December 31, 2018
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,214,350	$	1,214,350	$	1,209,150
Policy loans	0		0		1,236,077		1,236,077		1,236,077
Cash and cash equivalents	56,894		143,000		0		199,894		199,894
Accrued investment income	0		88,278		0		88,278		88,278
Receivables from parent and affiliates	0		154,938		0		154,938		154,938
Other assets	0		28,950		0		28,950		28,950
Total assets	$	56,894	$	415,166	$	2,450,427	$	2,922,487	$	2,917,287
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,206,747	$	272,322	$	1,479,069	$	1,486,929
Cash collateral for loaned securities	0		11,063		0		11,063		11,063
Payables to parent and affiliates	0		229,345		0		229,345		229,345
Other liabilities	0		372,997		0		372,997		372,997
Total liabilities	$	0	$	1,820,152	$	272,322	$	2,092,474	$	2,100,334

(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected "Income tax expense (benefit)" divided by projected "Income (loss) from operations before income taxes and equity in earnings of operating joint venture." Taxes attributable to the operating joint venture are recorded within "Equity in earnings of operating joint venture, net of taxes." The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year.

The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $(16.9) million, or (23.57)% of income (loss) before income taxes and equity in earnings of operating joint venture, in the first three months of 2019, compared to $(2.7) million, or (29.20)%, in the first three months of 2018. The Company's current and prior effective tax rates differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income and tax credits.

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Reinsurance

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

REINSURANCE

The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re") and Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.

Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for universal life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums.

Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives.

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
	(in thousands)
Reinsurance recoverables	$	36,106,323		$	34,682,127
Policy loans	(132,433		)	(130,502		)
Deferred policy acquisition costs	(7,255,866		)	(7,267,847		)
Deferred sales inducements	(567,015		)	(562,052		)
Other assets(1)	171,968			185,573
Policyholders’ account balances	4,986,354			5,004,112
Future policy benefits	3,619,334			3,376,048
Other liabilities(2)	653,666			621,856

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2019 and December 31, 2018.

(2) “Other liabilities” includes $39 million and $27 million of unaffiliated activity as of March 31, 2019 and December 31, 2018, respectively.

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2019		December 31, 2018
	(in thousands)
PAR U	$	11,680,401	$	11,444,032
PALAC	9,622,605		8,828,190
PURC	4,211,368		4,127,455
PARCC	2,484,194		2,527,690
GUL Re	2,044,196		2,017,810
PAR Term	1,691,610		1,678,745
Prudential of Taiwan	1,424,669		1,414,669
Term Re	1,347,453		1,259,141
Prudential Insurance	1,355,025		1,226,917
DART	168,676		119,946
Unaffiliated	76,126		37,532
Total reinsurance recoverables	$	36,106,323	$	34,682,127

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2019			2018(8)
	(in thousands)
Premiums:
Direct		$	462,271		$	441,955
Assumed(1)		54			60
Ceded(2)		(448,331		)	(434,100		)
Net premiums		13,994			7,915
Policy charges and fee income:
Direct		853,195			846,247
Assumed		126,959			121,709
Ceded(3)		(840,965		)	(838,801		)
Net policy charges and fee income		139,189			129,155
Net investment income:
Direct		94,558			79,149
Assumed		396			373
Ceded		(1,704		)	(1,607		)
Net investment income		93,250			77,915
Asset administration fees:
Direct		83,868			87,033
Assumed		0			0
Ceded		(80,211		)	(83,560		)
Net asset administration fees		3,657			3,473
Other income:
Direct		19,798			17,253
Assumed(4)		(200		)	(90		)
Ceded		(23		)	(52		)
Amortization of reinsurance income		1,382			2,185
Net other income		20,957			19,296
Realized investment gains (losses), net:
Direct		(635,511		)	1,474,762
Assumed		0			0
Ceded(5)		586,876			(1,523,804		)
Realized investment gains (losses), net		(48,635		)	(49,042		)
Policyholders’ benefits (including change in reserves):
Direct		646,311			651,672
Assumed(6)		211,750			112,802
Ceded(7)		(818,583		)	(712,738		)
Net policyholders’ benefits (including change in reserves)		39,478			51,736
Interest credited to policyholders’ account balances:
Direct		94,691			124,734
Assumed		30,657			36,517
Ceded		(81,151		)	(120,453		)
Net interest credited to policyholders’ account balances		44,197			40,798
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(344,015		)	(434,371		)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(2) "Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended March 31, 2019, and 2018 respectively.

(3) "Policy charges and fee income ceded" includes $(5) million and $(2) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(4) "Other income assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(5) “Realized investment gains (losses), net ceded” includes $14 million and $(38) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(6) "Policyholders' benefits (including change in reserves) assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(7) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(8) Prior period amounts in the table above have been revised to correct previously reported numbers. These prior period revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.

The gross and net amounts of life insurance face amount in force as of March 31, 2019 and 2018 were as follows:

	2019			2018
	(in thousands)
Direct gross life insurance face amount in force	$	951,643,226		$	893,787,108
Assumed gross life insurance face amount in force	40,546,369			41,584,568
Reinsurance ceded	(913,655,428		)	(864,942,222		)
Net life insurance face amount in force	$	78,534,167		$	70,429,454

Information regarding significant affiliated reinsurance agreements is described below.

PAR U

Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011.

Effective July 1, 2012, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving.

On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U.

PALAC

Effective April 1, 2016, the Company entered into a reinsurance agreement with PALAC to reinsure its variable annuity base contracts, along with the living benefit guarantees, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement covers new and in force business and excludes business reinsured externally.

PURC

Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013, with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016.

PARCC

The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC.

GUL Re

Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017, excluding those policies that are subject to principles-based reserving.

Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014.

PAR Term

The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term.

Prudential of Taiwan

On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwanese branch, including its Taiwanese insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life.

The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars.

Term Re

The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re.  

Prudential Insurance

The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. Effective July 1, 2017, the Company reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk.

On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control.

The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract.

Effective April 1, 2016, PLNJ entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. This reinsurance agreement covers new and in force business and excludes business reinsured externally.

DART

Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018.

Information regarding significant third-party reinsurance arrangements is described below.

Union Hamilton

Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiaries, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier® Retirement Variable Annuity, to Union Hamilton. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of March 31, 2019, $3.1 billion of HDI v.3.0 account values are reinsured to Union Hamilton.

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Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Equity

EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2019 and 2018, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2018	$	(17,448	)	$	(10,848	)	$	(28,296	)
Change in OCI before reclassifications	6,049			156,295			162,344
Amounts reclassified from AOCI	0			3,790			3,790
Income tax benefit (expense)	(19		)	(33,614		)	(33,633		)
Balance, March 31, 2019	$	(11,418	)	$	115,623		$	104,205

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	165,346
Change in OCI before reclassifications	(923		)	(145,541		)	(146,464		)
Amounts reclassified from AOCI	0			490			490
Income tax benefit (expense)	194			30,506			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,945		$	78,932

(1) Includes cash flow hedges of $15 million and $(18) million as of March 31, 2019 and December 31, 2018, respectively, and $1 million and $41 million as of March 31, 2018 and December 31, 2017, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	394		$	319
Net unrealized investment gains (losses) on available-for-sale securities	(4,184		)	(809		)
Total net unrealized investment gains (losses)(4)	(3,790		)	(490		)
Total reclassifications for the period	$	(3,790	)	$	(490	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits, policyholders’ account balances and other liabilities. 

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs(2)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(689	)	$	(152	)	$	37		$	(192	)	$	(996	)
Net investment gains (losses) on investments arising during the period	573			0			0			(120		)	453
Reclassification adjustment for (gains) losses included in net income	(85		)	0			0			18			(67		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	(207		)	0			0			43			(164		)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			110			0			(23		)	87
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(65		)	14			(51		)
Balance, March 31, 2019	$	(408	)	$	(42	)	$	(28	)	$	(260	)	$	(738	)

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(3) "Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(2)			Deferred Policy Acquisition Costs and Other Costs(3)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(16,632	)	$	(65,743	)	$	68,005		$	4,518		$	(9,852	)
Net investment gains (losses) on investments arising during the period	174,288			0			0			(36,596		)	137,692
Reclassification adjustment for (gains) losses included in net income	3,875			0			0			(814		)	3,061
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	207			0			0			(43		)	164
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			141,369			0			(29,684		)	111,685
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(159,980		)	33,591			(126,389		)
Balance, March 31, 2019	$	161,738		$	75,626		$	(91,975	)	$	(29,028	)	$	116,361

(1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(4) "Other liabilities" primarily includes reinsurance payables.

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Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.1 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively. The expense charged to the Company for the deferred compensation program was $3 million and $2 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $5 million and $6 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $6 million and $7 million for the three months ended March 31, 2019 and 2018, respectively.

Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $2 million and $3 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement.

The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $179 million and $175 million for the three months ended March 31, 2019 and 2018, respectively.

The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity.  The Company’s share of corporate expenses was $17 million and $18 million for the three months ended March 31, 2019 and 2018, respectively.

Corporate Owned Life Insurance

The Company has sold five Corporate-Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $4,014 million at March 31, 2019 and $3,631 million at December 31, 2018. Fees related to these COLI policies were $13 million and $12 million for the three months ended March 31, 2019 and 2018. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per individual policy.

Affiliated Investment Management Expenses

In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million for both the three months ended March 31, 2019 and 2018. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information.

Joint Ventures

The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $96 million and $88 million as of March 31, 2019 and December 31, 2018, respectively. "Net investment income" related to these ventures includes a gain of $5 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively.Affiliated Asset Administration Fee Income

The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $81 million and $84 million for the three months ended March 31, 2019 and 2018, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $2 million for both the three months ended March 31, 2019 and 2018. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss).Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2019 and December 31, 2018 were as follows:

	Maturity Dates			Interest Rates				March 31, 2019		December 31, 2018
								(in thousands)
U.S. dollar floating rate notes	2028			4.02%	-	4.23	%	$	0	$	6,502
U.S. dollar fixed rate notes	2020	-	2027	0.00%	-	14.85	%	128,479		128,140
Total notes receivable - affiliated(1)								$	128,479	$	134,642

(1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates.

Accrued interest receivable related to these loans was $0.6 million and $1 million at March 31, 2019 and December 31, 2018, respectively, and is included in “Other assets”. Revenues related to these assets were $1 million for both the three months ended March 31, 2019 and 2018, and are included in “Other income”.Affiliated Asset Transfers

The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2019 and for the year ended December 31, 2018.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)			Realized Investment Gain (Loss)
				(in thousands)
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0		$	0
PALAC	April 2018	Purchase	Fixed Maturities	$	64,313	$	64,313	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	87,486	$	87,486	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	37,921	$	37,921	$	0		$	0
Prudential Realty Securities, Inc.	November 2018	Purchase	Commercial Mortgages	$	3,259	$	3,425	$	0		$	(167	)
Prudential Insurance	February 2019	Sale	Commercial Mortgages	$	4,995	$	5,000	$	(4	)	$	0

Debt Agreements

The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. As of March 31, 2019 and December 31, 2018, there was no debt outstanding.

The total interest expense to the Company related to loans payable to affiliates was $0.2 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively.

Contributed Capital and Dividends

Through March 2019, the Company did not receive any capital contributions from Prudential Insurance. In March 2018, the Company received a capital contribution in the amount of $6 million from Prudential Insurance.

Through March 2019, the Company did not pay any dividends to Prudential Insurance. In 2018, the Company did not pay any dividends.

Reinsurance with Affiliates

As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

The Company has made commitments to fund commercial mortgage loans. As of March 31, 2019 and December 31, 2018, the outstanding balances on these commitments were $40 million and $14 million, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of March 31, 2019 and December 31, 2018, $276 million and $257 million, respectively, of these commitments were outstanding.

Guarantees

In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee.

Contingent Liabilities

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to our customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of March 31, 2019, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 14 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and should be read in conjunction with the complete descriptions provided in the Form 10-K.

Securities Lending and Foreign Tax Reclaim Matter

In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers.

The DOL’s review of the securities lending matter is closed. Prudential Financial is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of both matters that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of the discussions with the SEC regarding these matters.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.

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Revision to Prior Year Information

3 Months Ended

Mar. 31, 2019

Prior Period Adjustment [Abstract]

Revision to Prior Year Information

REVISION TO PRIOR YEAR INFORMATION

Revisions to 2018 Consolidated Financial Statements

In 2018, the Company identified an error in the calculation of reserves for certain individual life products that impacted several line items within previously issued consolidated financial statements. Prior period amounts have been revised in the financial statements and related disclosures to correct this error as shown below. Management evaluated these adjustments and concluded they were not material to any previously reported quarterly or annual financial statements.

Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC SAB No. 99, Materiality, codified in ASC 250-10, Accounting Changes and Error Corrections ("ASC 250"), and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the consolidated financial statements as of and for the three months ended March 31, 2018 have been revised.

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Operations and Comprehensive Income (Loss)

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	125,896		$	3,259		$	129,155
TOTAL REVENUES	185,453			3,259			188,712
BENEFITS AND EXPENSES
Policyholders' benefits	48,955			2,781			51,736
Amortization of deferred policy acquisition costs	26,604			(459		)	26,145
TOTAL BENEFITS AND EXPENSES	177,147			2,322			179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306			937			9,243
Income tax expense (benefit)	(2,448		)	(251		)	(2,699		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754			1,188			11,942
NET INCOME (LOSS)	$	10,116		$	1,188		$	11,304
COMPREHENSIVE INCOME (LOSS)	$	(105,158	)	$	1,188		$	(103,970	)

Consolidated Statements of Equity

	Retained Earnings						Total Equity
	As Previously Reported		Revision		As Revised		As Previously Reported			Revision		As Revised
	(in thousands)
Balance, December 31, 2017	$	1,511,698	$	14,612	$	1,526,310	$	2,820,636		$	14,612	$	2,835,248
Comprehensive income (loss):
Net income (loss)	10,116		1,188		11,304		10,116			1,188		11,304
Total comprehensive income (loss)							(105,158		)	1,188		(103,970		)
Balance, March 31, 2018	$	1,499,351	$	15,800	$	1,515,151	$	2,727,375		$	15,800	$	2,743,175

Consolidated Statements of Cash Flows

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	10,116		$	1,188		$	11,304
Policy charges and fee income	(24,173		)	476			(23,697		)
Future policy benefits	511,380			(2,968		)	508,412
Reinsurance recoverables	(430,215		)	5,748			(424,467		)
Deferred policy acquisition costs	(45,184		)	(458		)	(45,642		)
Income taxes	(2,651		)	(251		)	(2,902		)
Other, net	(93,619		)	(3,735		)	(97,354		)
Cash flows from (used in) operating activities	(7,769		)	0			(7,769		)

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Significant Accounting Policies and Pronouncements (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters.

Reclassifications

ReclassificationsCertain amounts in prior periods have been reclassified to conform to the current period presentation.

Adoption of New Accounting Pronouncements

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material.

ASU adopted during the three months ended March 31, 2019.

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities	This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures.	January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption.	Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures.

Future Adoption Of New Accounting Pronouncements

ASU issued but not yet adopted as of March 31, 2019 — ASU 2018-12

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.

ASU 2018-12 Amended Topic	Description	Method of adoption	Effect on the financial statements or other significant matters
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations.	An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method.	The options for method of adoption and the impacts of such methods are under assessment.
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products	Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI").	As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.	Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed.
Amortization of DAC and other balances	Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability.	An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances.	The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI.
Market Risk Benefits	Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI.	An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented.	Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed.

Other ASU issued but not yet adopted as of March 31, 2019

Standard	Description	Effective date and method of adoption	Effect on the financial statements or other significant matters
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities.	January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019.	The Company does not plan to early adopt this ASU and is currently assessing its impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements.

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Investments (Tables)

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Fixed Maturities, Available-for-sale Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	77,354	$	2,645	$	0	$	79,999	$	0
Obligations of U.S. states and their political subdivisions	608,071		31,553		18		639,606		0
Foreign government bonds	209,128		8,172		2,488		214,812		0
U.S. public corporate securities	1,926,382		96,244		17,364		2,005,262		0
U.S. private corporate securities	890,441		19,701		9,185		900,957		0
Foreign public corporate securities	289,697		10,112		3,953		295,856		0
Foreign private corporate securities	885,807		19,955		25,216		880,546		0
Asset-backed securities(1)	148,802		1,462		531		149,733		(85		)
Commercial mortgage-backed securities	345,909		7,239		1,379		351,769		0
Residential mortgage-backed securities(2)	86,570		1,482		383		87,669		(172		)
Total fixed maturities, available-for-sale	$	5,468,161	$	198,565	$	60,517	$	5,606,209	$	(257	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.2 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	75,049	$	2,427	$	6	$	77,470	$	0
Obligations of U.S. states and their political subdivisions	609,955		15,154		2,351		622,758		0
Foreign government bonds	208,009		2,137		8,199		201,947		0
U.S. public corporate securities	1,739,860		46,166		54,401		1,731,625		0
U.S. private corporate securities	890,748		11,181		18,591		883,338		0
Foreign public corporate securities	270,428		3,746		12,151		262,023		0
Foreign private corporate securities	857,604		9,797		40,022		827,379		0
Asset-backed securities(1)	156,818		1,528		750		157,596		(122		)
Commercial mortgage-backed securities	347,570		3,353		4,527		346,396		0
Residential mortgage-backed securities(2)	88,862		1,268		1,067		89,063		(177		)
Total fixed maturities, available-for-sale	$	5,244,903	$	96,757	$	142,065	$	5,199,595	$	(299	)

(1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(3)

Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.4 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

Duration Of Gross Unrealized Losses On Fixed Maturity Securities

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	March 31, 2019
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	0	$	0	$	0	$	0
Obligations of U.S. states and their political subdivisions	0		0		6,771		18		6,771		18
Foreign government bonds	4,181		28		71,392		2,460		75,573		2,488
U.S. public corporate securities	110,017		2,347		330,357		15,017		440,374		17,364
U.S. private corporate securities	54,835		4,183		194,614		5,002		249,449		9,185
Foreign public corporate securities	7,508		93		83,890		3,860		91,398		3,953
Foreign private corporate securities	114,485		3,592		228,928		21,624		343,413		25,216
Asset-backed securities	98,426		473		10,015		58		108,441		531
Commercial mortgage-backed securities	0		0		110,228		1,379		110,228		1,379
Residential mortgage-backed securities	186		1		28,181		382		28,367		383
Total fixed maturities, available-for-sale	$	389,638	$	10,717	$	1,064,376	$	49,800	$	1,454,014	$	60,517

	December 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses		Fair Value		Gross   Unrealized   Losses
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	0	$	630	$	6	$	630	$	6
Obligations of U.S. states and their political subdivisions	124,776		1,571		31,215		780		155,991		2,351
Foreign government bonds	77,055		3,184		59,700		5,015		136,755		8,199
U.S. public corporate securities	784,916		37,635		213,147		16,766		998,063		54,401
U.S. private corporate securities	263,934		9,159		287,031		9,432		550,965		18,591
Foreign public corporate securities	124,764		6,286		72,725		5,865		197,489		12,151
Foreign private corporate securities	424,921		22,605		127,201		17,417		552,122		40,022
Asset-backed securities	112,527		650		6,523		100		119,050		750
Commercial mortgage-backed securities	49,616		434		116,786		4,093		166,402		4,527
Residential mortgage-backed securities	34,249		240		32,432		827		66,681		1,067
Total fixed maturities, available-for-sale	$	1,996,758	$	81,764	$	947,390	$	60,301	$	2,944,148	$	142,065

Fixed Maturities Classified by Contractual Maturity Date

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	March 31, 2019
	Amortized Cost		Fair Value
	(in thousands)
Fixed maturities, available-for-sale:
Due in one year or less	$	206,941	$	208,192
Due after one year through five years	705,933		703,752
Due after five years through ten years	993,523		1,008,175
Due after ten years	2,980,483		3,096,919
Asset-backed securities	148,802		149,733
Commercial mortgage-backed securities	345,909		351,769
Residential mortgage-backed securities	86,570		87,669
Total fixed maturities, available-for-sale	$	5,468,161	$	5,606,209

Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	24,787		$	16,852
Proceeds from maturities/prepayments	52,875			54,310
Gross investment gains from sales and maturities	949			144
Gross investment losses from sales and maturities	(1,970		)	(359		)
OTTI recognized in earnings(2)	(3,163		)	(594		)

(1) Includes $6.9 million and $1.8 million of non-cash related proceeds due to the timing of trade settlements for the three months ended March 31, 2019 and 2018, respectively.

(2)

Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Credit loss impairments:
Balance, beginning of period	$	1,291		$	4,374
New credit loss impairments	3,022			0
Increases due to the passage of time on previously recorded credit losses	10			37
Reductions for securities which matured, paid down, prepaid or were sold during the period	(593		)	(42		)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(120		)	(25		)
Balance, end of period	$	3,610		$	4,344

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:

	March 31, 2019					December 31, 2018
	Amount (in thousands)			% of Total		Amount (in thousands)			% of Total
Commercial mortgage and agricultural property loans by property type:
Apartments/Multi-Family	$	356,454		29.3	%	$	362,811		29.9	%
Hospitality	15,969			1.3		16,083			1.3
Industrial	271,953			22.5		263,999			21.8
Office	191,236			15.7		187,450			15.5
Other	131,850			10.9		131,961			10.9
Retail	192,381			15.8		193,473			16.0
Total commercial mortgage loans	1,159,843			95.5		1,155,777			95.4
Agricultural property loans	54,833			4.5		55,438			4.6
Total commercial mortgage and agricultural property loans by property type	1,214,676			100.0	%	1,211,215			100.0	%
Allowance for credit losses	(2,058		)			(2,065		)
Total commercial mortgage and other loans	$	1,212,618				$	1,209,150

Allowance for Credit Losses

The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:

	Commercial Mortgage Loans			Agricultural Property Loans			Total
	(in thousands)
Balance at December 31, 2017	$	1,728		$	66		$	1,794
Addition to (release of) allowance for credit losses	298			(27		)	271
Charge-offs, net of recoveries	0			0			0
Balance at December 31, 2018	2,026			39			2,065
Addition to (release of) allowance for credit losses	(10		)	3			(7		)
Charge-offs, net of recoveries	0			0			0
Balance at March 31, 2019	$	2,016		$	42		$	2,058

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:

	March 31, 2019
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,016		42		2,058
Total ending balance(1)	$	2,016	$	42	$	2,058
Recorded investment(2):
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	1,159,843		54,833		1,214,676
Total ending balance(1)	$	1,159,843	$	54,833	$	1,214,676

(1) As of March 31, 2019, there were no loans acquired with deteriorated credit quality.

(2) Recorded investment reflects the carrying value gross of related allowance.

	December 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Total
	(in thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	0	$	0	$	0
Collectively evaluated for impairment	2,026		39		2,065
Total ending balance(1)	$	2,026	$	39	$	2,065
Recorded investment(2):
Individually evaluated for impairment	$	0	$	816	$	816
Collectively evaluated for impairment	1,155,777		54,622		1,210,399
Total ending balance(1)	$	1,155,777	$	55,438	$	1,211,215

(1) As of December 31, 2018, there were no loans acquired with deteriorated credit quality.

(2)

Recorded investment reflects the carrying value gross of related allowance.

Financing Receivable Credit Quality Indicators

The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:

	March 31, 2019
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	698,110	$	14,468	$	0	$	712,578
60%-69.99%	316,532		16,469		0		333,001
70%-79.99%	114,257		27,612		0		141,869
80% or greater	27,000		0		228		27,228
Total commercial mortgage and agricultural property loans	$	1,155,899	$	58,549	$	228	$	1,214,676

	December 31, 2018
	Debt Service Coverage Ratio
	≥ 1.2X		1.0X to < 1.2X		< 1.0X		Total
	(in thousands)
Loan-to-Value Ratio:
0%-59.99%	$	696,507	$	12,771	$	80	$	709,358
60%-69.99%	321,586		18,525		0		340,111
70%-79.99%	105,727		27,790		0		133,517
80% or greater	28,000		229		0		28,229
Total commercial mortgage and agricultural property loans	$	1,151,820	$	59,315	$	80	$	1,211,215

Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	March 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,159,843	$	0	$	0	$	0	$	1,159,843	$	0
Agricultural property loans	54,833		0		0		0		54,833		0
Total	$	1,214,676	$	0	$	0	$	0	$	1,214,676	$	0

(1) As of March 31, 2019, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Loans		Non-Accrual Status(2)
	(in thousands)
Commercial mortgage loans	$	1,155,777	$	0	$	0	$	0	$	1,155,777	$	0
Agricultural property loans	55,438		0		0		0		55,438		0
Total	$	1,211,215	$	0	$	0	$	0	$	1,211,215	$	0

(1) As of December 31, 2018, there were no loans in this category accruing interest.

(2)

For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:

	March 31, 2019		December 31, 2018
	(in thousands)
Company’s investment in separate accounts	$	41,577	$	40,126
LPs/LLCs:
Equity method:
Private equity	158,754		149,164
Hedge funds	59,513		57,171
Real estate-related	10,335		10,251
Subtotal equity method	228,602		216,586
Fair value:
Private equity	61,817		60,118
Hedge funds	769		762
Real estate-related	10,055		9,024
Subtotal fair value	72,641		69,904
Total LPs/LLCs	301,243		286,490
Derivative instruments	15,468		50,813
Total other invested assets	$	358,288	$	377,429

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities, available-for-sale	$	56,266		$	53,260
Fixed maturities, trading	308			266
Equity securities, at fair value	221			221
Commercial mortgage and other loans	12,491			12,405
Policy loans	16,199			15,904
Short-term investments and cash equivalents	2,311			323
Other invested assets	9,911			115
Gross investment income	97,707			82,494
Less: investment expenses	(4,457		)	(4,579		)
Net investment income	$	93,250		$	77,915

Realized Investment Gains (Losses), Net

The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Fixed maturities(1)	$	(4,184	)	$	(809	)
Commercial mortgage and other loans	7			131
LPs/LLCs	12			847
Derivatives	(44,477		)	(49,193		)
Short-term investments and cash equivalents	7			(18		)
Realized investment gains (losses), net	$	(48,635	)	$	(49,042	)

(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

Unrealized Gains and (Losses) on Investments

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	March 31, 2019			December 31, 2018
	(in thousands)
Fixed maturity securities, available-for-sale—with OTTI	$	(408	)	$	(689	)
Fixed maturity securities, available-for-sale—all other	138,456			(44,619		)
Derivatives designated as cash flow hedges(1)	15,441			22,122
Affiliated notes	2,899			810
Other investments	4,942			5,055
Net unrealized gains (losses) on investments	$	161,330		$	(17,321	)

(1)

For more information on cash flow hedges, see Note 4.

Repurchase Agreements and Securities Lending

The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	March 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in thousands)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	3,109	$	0	$	3,109	$	8,169	$	0	$	8,169
Foreign government bonds	2,121		0		2,121		0		0		0
U.S. public corporate securities	2,745		0		2,745		628		0		628
Foreign public corporate securities	2,359		0		2,359		2,266		0		2,266
Total cash collateral for loaned securities(1)	$	10,334	$	0	$	10,334	$	11,063	$	0	$	11,063

(1)

The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR.

	March 31, 2019							December 31, 2018
Primary Underlying Risk/Instrument Type			Gross Fair Value							Gross Fair Value
	Notional		Assets		Liabilities			Notional		Assets		Liabilities
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate
Foreign Currency Swaps	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Total Derivatives Designated as Hedge Accounting Instruments	$	738,998	$	33,171	$	(19,619	)	$	719,476	$	38,333	$	(16,638	)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps	$	246,925	$	20,945	$	0		$	246,925	$	15,665	$	(3,174	)
Foreign Currency
Foreign Currency Forwards	23,318		331		(38		)	23,043		277		(20		)
Credit
Credit Default Swaps	0		0		0			756		0		(9		)
Currency/Interest Rate
Foreign Currency Swaps	113,062		5,987		(1,035		)	98,363		6,303		(2,109		)
Equity
Equity Options	2,123,153		70,934		(19,071		)	1,981,693		17,312		(4,912		)
Total Derivatives Not Qualifying as Hedge Accounting Instruments	$	2,506,458	$	98,197	$	(20,144	)	$	2,350,780	$	39,557	$	(10,224	)
Total Derivatives(1)(2)	$	3,245,456	$	131,368	$	(39,763	)	$	3,070,256	$	77,890	$	(26,862	)

(1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks.

(2)

Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position.

Offsetting Of Financial Assets

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2019
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Securities purchased under agreements to resell	0		0			0		0			0
Total Assets	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Offsetting of Financial Liabilities:
Derivatives(1)	$	39,763	$	(39,763	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	39,763	$	(39,763	)	$	0	$	0		$	0

	December 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	77,887	$	(27,078	)	$	50,809	$	(7,307	)	$	43,502
Securities purchased under agreements to resell	143,000		0			143,000		(143,000		)	0
Total Assets	$	220,887	$	(27,078	)	$	193,809	$	(150,307	)	$	43,502
Offsetting of Financial Liabilities:
Derivatives(1)	$	26,862	$	(26,862	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	26,862	$	(26,862	)	$	0	$	0		$	0

(1)

Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Offsetting Of Financial Liabilities

The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position.

	March 31, 2019
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Securities purchased under agreements to resell	0		0			0		0			0
Total Assets	$	131,365	$	(115,900	)	$	15,465	$	(12,809	)	$	2,656
Offsetting of Financial Liabilities:
Derivatives(1)	$	39,763	$	(39,763	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	39,763	$	(39,763	)	$	0	$	0		$	0

	December 31, 2018
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Consolidated Statements of Financial Position			Net Amounts Presented in the Consolidated Statements of Financial Position		Financial Instruments/ Collateral (1)			Net Amount
	(in thousands)
Offsetting of Financial Assets:
Derivatives(1)	$	77,887	$	(27,078	)	$	50,809	$	(7,307	)	$	43,502
Securities purchased under agreements to resell	143,000		0			143,000		(143,000		)	0
Total Assets	$	220,887	$	(27,078	)	$	193,809	$	(150,307	)	$	43,502
Offsetting of Financial Liabilities:
Derivatives(1)	$	26,862	$	(26,862	)	$	0	$	0		$	0
Securities sold under agreements to repurchase	0		0			0		0			0
Total Liabilities	$	26,862	$	(26,862	)	$	0	$	0		$	0

(1)

Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.

	Three Months Ended March 31, 2019
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(160	)	$	2,069	$	(1,515	)	$	(6,654	)
Total cash flow hedges	(160		)	2,069		(1,515		)	(6,654		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	7,616			0		0			0
Currency	(20		)	0		0			0
Currency/Interest Rate	1,430			0		1			0
Credit	(1		)	0		0			0
Equity	28,863			0		0			0
Embedded Derivatives	(82,205		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(44,317		)	0		1			0
Total	$	(44,477	)	$	2,069	$	(1,514	)	$	(6,654	)

	Three Months Ended March 31, 2018(2)
	Realized Investment Gains (Losses)			Net Investment Income		Other Income			AOCI(1)
	(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	(517	)	$	1,538	$	(664	)	$	(22,862	)
Total cash flow hedges	(517		)	1,538		(664		)	(22,862		)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(9,401		)	0		0			0
Currency	(556		)	0		0			0
Currency/Interest Rate	(3,334		)	0		(23		)	0
Credit	(1		)	0		0			0
Equity	(4,757		)	0		0			0
Embedded Derivatives	(30,627		)	0		0			0
Total Derivatives Not Qualifying as Hedge Accounting Instruments	(48,676		)	0		(23		)	0
Total	$	(49,193	)	$	1,538	$	(687	)	$	(22,862	)

(1) Net change in AOCI.

(2) Prior period amounts have been updated to conform to current period presentation.

Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes

Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:

	(in thousands)
Balance, December 31, 2018	$	22,122
Cumulative-effect adjustment from the adoption of ASU 2017-12(1)	(27		)
Amount recorded in AOCI
Currency/Interest Rate	(6,260		)
Total amount recorded in AOCI	(6,260		)
Amount reclassified from AOCI to income
Currency/Interest Rate	(394		)
Total amount reclassified from AOCI to income	(394		)
Balance, March 31, 2019	$	15,441

(1)

See Note 2 for details.

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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	As of March 31, 2019
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,811	$	32,188	$	0		$	79,999
Obligations of U.S. states and their political subdivisions	0		639,606		0		0			639,606
Foreign government bonds	0		214,648		164		0			214,812
U.S. corporate public securities	0		2,005,259		3		0			2,005,262
U.S. corporate private securities	0		857,453		43,504		0			900,957
Foreign corporate public securities	0		295,645		211		0			295,856
Foreign corporate private securities	0		869,304		11,242		0			880,546
Asset-backed securities(2)	0		147,000		2,733		0			149,733
Commercial mortgage-backed securities	0		274,698		77,071		0			351,769
Residential mortgage-backed securities	0		87,669		0		0			87,669
Subtotal	0		5,439,093		167,116		0			5,606,209
Fixed maturities, trading	0		43,000		0		0			43,000
Equity securities	140		18,616		15,991		0			34,747
Cash equivalents	104,949		250,219		0		0			355,168
Other invested assets(3)	0		131,364		4		(115,900		)	15,468
Reinsurance recoverables	0		0		6,468,704		0			6,468,704
Receivables from parent and affiliates	0		120,687		7,792		0			128,479
Subtotal excluding separate account assets	105,089		6,002,979		6,659,607		(115,900		)	12,651,775
Separate account assets(4)(5)	0		124,615,650		0		0			124,615,650
Total assets	$	105,089	$	130,618,629	$	6,659,607	$	(115,900	)	$	137,267,425
Future policy benefits(6)	$	0	$	0	$	6,459,377	$	0		$	6,459,377
Policyholders' account balances	0		0		53,136		0			53,136
Payables to parent and affiliates	0		39,763		0		(39,763		)	0
Total liabilities	$	0	$	39,763	$	6,512,513	$	(39,763	)	$	6,512,513

	As of December 31, 2018
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	47,654	$	29,816	$	0		$	77,470
Obligations of U.S. states and their political subdivisions	0		622,758		0		0			622,758
Foreign government bonds	0		201,947		0		0			201,947
U.S. corporate public securities	0		1,731,623		2		0			1,731,625
U.S. corporate private securities	0		838,497		44,841		0			883,338
Foreign corporate public securities	0		262,023		0		0			262,023
Foreign corporate private securities	0		815,634		11,745		0			827,379
Asset-backed securities(2)	0		151,040		6,556		0			157,596
Commercial mortgage-backed securities	0		346,396		0		0			346,396
Residential mortgage-backed securities	0		89,063		0		0			89,063
Subtotal	0		5,106,635		92,960		0			5,199,595
Fixed maturities, trading	0		41,627		0		0			41,627
Equity securities	131		20,794		15,997		0			36,922
Cash equivalents	69,903		147,043		0		0			216,946
Other invested assets(3)	0		77,886		4		(27,078		)	50,812
Reinsurance recoverables	0		0		5,600,008		0			5,600,008
Receivables from parent and affiliates	0		125,381		9,261		0			134,642
Subtotal excluding separate account assets	70,034		5,519,366		5,718,230		(27,078		)	11,280,552
Separate account assets(4)(5)	0		114,947,872		0		0			114,947,872
Total assets	$	70,034	$	120,467,238	$	5,718,230	$	(27,078	)	$	126,228,424
Future policy benefits(6)	$	0	$	0	$	5,588,840	$	0		$	5,588,840
Policyholders' account balances	0		0		13,015		0			13,015
Payables to parent and affiliates	0		26,862		0		(26,862		)	0
Total liabilities	$	0	$	26,862	$	5,601,855	$	(26,862	)	$	5,601,855

(1) “Netting” amounts represent cash collateral of $76.1 million and $0.2 million as of March 31, 2019 and December 31, 2018, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At March 31, 2019 and December 31, 2018, the fair values of such investments were $73 million and $70 million, respectively.

(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position.

(5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of March 31, 2019 and December 31, 2018, the fair value of such investments was $4,383 million and $4,130 million, respectively.

(6) As of March 31, 2019, the net embedded derivative liability position of $6,459 million includes $623 million of embedded derivatives in an asset position and $7,082 million of embedded derivatives in a liability position. As of December 31, 2018, the net embedded derivative liability position of $5,589 million includes $633 million of embedded derivatives in an asset position and $6,222 million of embedded derivatives in a liability position.

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	As of March 31, 2019
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	23,065	Discounted cash flow	Discount rate	8.25	%	20.00	%	13.69	%	Decrease
			Liquidation	Liquidation value	13.18	%	13.18	%	13.18	%	Increase
Reinsurance recoverables	$	6,468,704	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	6,459,377	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.12	%	1.35	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	15	%	22	%			Increase

	As of December 31, 2018
	Fair Value		Valuation   Techniques	Unobservable Inputs	Minimum		Maximum		Weighted   Average		Impact of  Increase in  Input on  Fair Value(1)
	(in thousands)
Assets:
Corporate securities(2)	$	31,503	Discounted cash flow	Discount rate	7.00	%	20.00	%	10.21	%	Decrease
			Liquidation	Liquidation value	40.71	%	40.71	%	40.71	%	Increase
Reinsurance recoverables	$	5,600,008	Fair values are determined using the same unobservable inputs as future policy benefits.
Liabilities:
Future policy benefits(3)	$	5,588,840	Discounted cash flow	Lapse rate(4)	1	%	13	%			Decrease
				Spread over LIBOR(5)	0.36	%	1.60	%			Decrease
				Utilization rate(6)	50	%	97	%			Increase
				Withdrawal rate	See table footnote (7) below
				Mortality rate(8)	0	%	15	%			Decrease
				Equity volatility curve	18	%	22	%			Increase

(1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) Includes assets classified as fixed maturities, available-for-sale.

(3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread

includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of March 31, 2019 and December 31, 2018, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(8)

Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.

	Three Months Ended March 31, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	29,816		$	0		$	2,372	$	0		$	0		$	0		$	0	$	0	$	0	$	32,188		$	0
Foreign government	0			5			0		0			0			0			0		159		0		164			0
Corporate securities(4)	56,588			(3,412		)	1,331		(28		)	0			(7,097		)	1		7,577		0		54,960			(3,163		)
Structured securities(5)	6,556			1,268			0		(1		)	0			(3,979		)	0		75,960		0		79,804			0
Other assets:
Equity securities	15,997			(6		)	0		0			0			0			0		0		0		15,991			(6		)
Other invested assets	4			0			0		0			0			0			0		0		0		4			0
Short-term investments	0			0			0		0			0			0			0		0		0		0			0
Reinsurance recoverables	5,600,008			633,318			235,378		0			0			0			0		0		0		6,468,704			677,444
Receivables from parent and affiliates	9,261			111			0		0			0			(1,580		)	0		0		0		7,792			0
Liabilities:
Future policy benefits	(5,588,840		)	(637,102		)	0		0			(233,435		)	0			0		0		0		(6,459,377		)	(681,227		)
Policyholders' account balances	(13,015		)	(33,614		)	0		0			0			(6,507		)	0		0		0		(53,136		)	(33,614		)

	Three Months Ended March 31, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,402	)	$	0		$	164	$	99	$	(3,163	)	$	0
Other assets:
Equity securities	0			(6		)	0		0		0			(6		)
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	633,318			0			0		0		677,444			0
Receivables from parent and affiliates	0			0			0		111		0			0
Liabilities:
Future policy benefits	(637,102		)	0			0		0		(681,227		)	0
Policyholders' account balances	(33,614		)	0			0		0		(33,614		)	0

	Three Months Ended March 31, 2018(6)
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales		Issuances			Settlements			Other(2)			Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	19,204		$	0		$	2,365	$	0	$	0		$	0		$	0		$	0	$	0		$	21,569		$	0
Foreign government	0			(8		)	0		0		0			0			174			0		0			166			0
Corporate securities(4)	75,421			936			1,022		0		0			(4,570		)	15			0		(209		)	72,615			(26		)
Structured securities(5)	111,028			131			190		0		0			(3,195		)	0			13,513		(26,794		)	94,873			0
Other assets:
Equity securities	17,525			(486		)	0		0		0			0			0			0		0			17,039			(486		)
Other invested assets	0			1			0		0		0			0			0			9		0			10			2
Short-term investments	1,339			(18		)	3,400		0		0			(3,513		)	(14		)	0		0			1,194			(18		)
Reinsurance recoverables	5,457,649			(1,462,992		)	219,457		0		0			0			0			0		0			4,214,114			(1,409,320		)
Receivables from parent and affiliates	0			(20		)	0		0		0			0			0			6,551		0			6,531			0
Liabilities:
Future policy benefits	(5,452,583		)	1,487,555			0		0		(226,345		)	0			0			0		0			(4,191,373		)	1,433,872
Policyholders' account balances	(46,651		)	5,013			0		0		0			2,122			0			0		0			(39,516		)	5,013
Other liabilities	0			(24,780		)	8,825		0		0			0			0			0		0			(15,955		)	(24,780		)

	Three Months Ended March 31, 2018(6)
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	68		$	0		$	914	$	77	$	(26	)	$	0
Other assets:
Equity securities	0			(486		)	0		0		0			(486		)
Other invested assets	1			0			0		0		2			0
Short-term investments	(18		)	0			0		0		(18		)	0
Reinsurance recoverables	(1,462,992		)	0			0		0		(1,409,320		)	0
Receivables from parent and affiliates	0			(20		)	0		0		0			0
Liabilities:
Future policy benefits	1,487,555			0			0		0		1,433,872			0
Policyholders' account balances	5,013			0			0		0		5,013			0
Other liabilities	(24,780		)	0			0		0		(24,780		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6)

Prior period amounts have been updated to conform to current period presentation.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.

	Three Months Ended March 31, 2019
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales			Issuances			Settlements			Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	29,816		$	0		$	2,372	$	0		$	0		$	0		$	0	$	0	$	0	$	32,188		$	0
Foreign government	0			5			0		0			0			0			0		159		0		164			0
Corporate securities(4)	56,588			(3,412		)	1,331		(28		)	0			(7,097		)	1		7,577		0		54,960			(3,163		)
Structured securities(5)	6,556			1,268			0		(1		)	0			(3,979		)	0		75,960		0		79,804			0
Other assets:
Equity securities	15,997			(6		)	0		0			0			0			0		0		0		15,991			(6		)
Other invested assets	4			0			0		0			0			0			0		0		0		4			0
Short-term investments	0			0			0		0			0			0			0		0		0		0			0
Reinsurance recoverables	5,600,008			633,318			235,378		0			0			0			0		0		0		6,468,704			677,444
Receivables from parent and affiliates	9,261			111			0		0			0			(1,580		)	0		0		0		7,792			0
Liabilities:
Future policy benefits	(5,588,840		)	(637,102		)	0		0			(233,435		)	0			0		0		0		(6,459,377		)	(681,227		)
Policyholders' account balances	(13,015		)	(33,614		)	0		0			0			(6,507		)	0		0		0		(53,136		)	(33,614		)

	Three Months Ended March 31, 2019
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,402	)	$	0		$	164	$	99	$	(3,163	)	$	0
Other assets:
Equity securities	0			(6		)	0		0		0			(6		)
Other invested assets	0			0			0		0		0			0
Short-term investments	0			0			0		0		0			0
Reinsurance recoverables	633,318			0			0		0		677,444			0
Receivables from parent and affiliates	0			0			0		111		0			0
Liabilities:
Future policy benefits	(637,102		)	0			0		0		(681,227		)	0
Policyholders' account balances	(33,614		)	0			0		0		(33,614		)	0

	Three Months Ended March 31, 2018(6)
	Fair Value, beginning of period			Total realized and unrealized gains (losses)(1)			Purchases		Sales		Issuances			Settlements			Other(2)			Transfers into Level 3		Transfers out of Level 3			Fair Value, end of period			Unrealized gains (losses) for assets still held(3)
	(in thousands)
Fixed maturities, available-for-sale:
U.S. government	$	19,204		$	0		$	2,365	$	0	$	0		$	0		$	0		$	0	$	0		$	21,569		$	0
Foreign government	0			(8		)	0		0		0			0			174			0		0			166			0
Corporate securities(4)	75,421			936			1,022		0		0			(4,570		)	15			0		(209		)	72,615			(26		)
Structured securities(5)	111,028			131			190		0		0			(3,195		)	0			13,513		(26,794		)	94,873			0
Other assets:
Equity securities	17,525			(486		)	0		0		0			0			0			0		0			17,039			(486		)
Other invested assets	0			1			0		0		0			0			0			9		0			10			2
Short-term investments	1,339			(18		)	3,400		0		0			(3,513		)	(14		)	0		0			1,194			(18		)
Reinsurance recoverables	5,457,649			(1,462,992		)	219,457		0		0			0			0			0		0			4,214,114			(1,409,320		)
Receivables from parent and affiliates	0			(20		)	0		0		0			0			0			6,551		0			6,531			0
Liabilities:
Future policy benefits	(5,452,583		)	1,487,555			0		0		(226,345		)	0			0			0		0			(4,191,373		)	1,433,872
Policyholders' account balances	(46,651		)	5,013			0		0		0			2,122			0			0		0			(39,516		)	5,013
Other liabilities	0			(24,780		)	8,825		0		0			0			0			0		0			(15,955		)	(24,780		)

	Three Months Ended March 31, 2018(6)
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)			Other income (loss)			Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net			Other income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	68		$	0		$	914	$	77	$	(26	)	$	0
Other assets:
Equity securities	0			(486		)	0		0		0			(486		)
Other invested assets	1			0			0		0		2			0
Short-term investments	(18		)	0			0		0		(18		)	0
Reinsurance recoverables	(1,462,992		)	0			0		0		(1,409,320		)	0
Receivables from parent and affiliates	0			(20		)	0		0		0			0
Liabilities:
Future policy benefits	1,487,555			0			0		0		1,433,872			0
Policyholders' account balances	5,013			0			0		0		5,013			0
Other liabilities	(24,780		)	0			0		0		(24,780		)	0

(1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts.

(2) Other primarily represents reclassifications of certain assets and liabilities between reporting categories.

(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6)

Prior period amounts have been updated to conform to current period presentation.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.

	March 31, 2019
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,240,689	$	1,240,689	$	1,212,618
Policy loans	0		0		1,251,094		1,251,094		1,251,094
Cash and cash equivalents	48,115		0		0		48,115		48,115
Accrued investment income	0		89,358		0		89,358		89,358
Receivables from parent and affiliates	0		149,571		0		149,571		149,571
Other assets	0		35,112		0		35,112		35,112
Total assets	$	48,115	$	274,041	$	2,491,783	$	2,813,939	$	2,785,868
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,226,786	$	276,008	$	1,502,794	$	1,507,136
Cash collateral for loaned securities	0		10,334		0		10,334		10,334
Payables to parent and affiliates	0		217,073		0		217,073		217,073
Other liabilities	0		358,256		0		358,256		358,256
Total liabilities	$	0	$	1,812,449	$	276,008	$	2,088,457	$	2,092,799

	December 31, 2018
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,214,350	$	1,214,350	$	1,209,150
Policy loans	0		0		1,236,077		1,236,077		1,236,077
Cash and cash equivalents	56,894		143,000		0		199,894		199,894
Accrued investment income	0		88,278		0		88,278		88,278
Receivables from parent and affiliates	0		154,938		0		154,938		154,938
Other assets	0		28,950		0		28,950		28,950
Total assets	$	56,894	$	415,166	$	2,450,427	$	2,922,487	$	2,917,287
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	1,206,747	$	272,322	$	1,479,069	$	1,486,929
Cash collateral for loaned securities	0		11,063		0		11,063		11,063
Payables to parent and affiliates	0		229,345		0		229,345		229,345
Other liabilities	0		372,997		0		372,997		372,997
Total liabilities	$	0	$	1,820,152	$	272,322	$	2,092,474	$	2,100,334

(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance Impact on Statements of Financial Position

Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2019 and December 31, 2018 were as follows:

	March 31, 2019			December 31, 2018
	(in thousands)
Reinsurance recoverables	$	36,106,323		$	34,682,127
Policy loans	(132,433		)	(130,502		)
Deferred policy acquisition costs	(7,255,866		)	(7,267,847		)
Deferred sales inducements	(567,015		)	(562,052		)
Other assets(1)	171,968			185,573
Policyholders’ account balances	4,986,354			5,004,112
Future policy benefits	3,619,334			3,376,048
Other liabilities(2)	653,666			621,856

(1) “Other assets” includes $0.1 million of unaffiliated activity as of both March 31, 2019 and December 31, 2018.

(2)

“Other liabilities” includes $39 million and $27 million of unaffiliated activity as of March 31, 2019 and December 31, 2018, respectively.

Reinsurance Recoverable by Counterparty

The reinsurance recoverables by counterparty are broken out below:

	March 31, 2019		December 31, 2018
	(in thousands)
PAR U	$	11,680,401	$	11,444,032
PALAC	9,622,605		8,828,190
PURC	4,211,368		4,127,455
PARCC	2,484,194		2,527,690
GUL Re	2,044,196		2,017,810
PAR Term	1,691,610		1,678,745
Prudential of Taiwan	1,424,669		1,414,669
Term Re	1,347,453		1,259,141
Prudential Insurance	1,355,025		1,226,917
DART	168,676		119,946
Unaffiliated	76,126		37,532
Total reinsurance recoverables	$	36,106,323	$	34,682,127

Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss)

Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:

		Three Months Ended March 31,
		2019			2018(8)
	(in thousands)
Premiums:
Direct		$	462,271		$	441,955
Assumed(1)		54			60
Ceded(2)		(448,331		)	(434,100		)
Net premiums		13,994			7,915
Policy charges and fee income:
Direct		853,195			846,247
Assumed		126,959			121,709
Ceded(3)		(840,965		)	(838,801		)
Net policy charges and fee income		139,189			129,155
Net investment income:
Direct		94,558			79,149
Assumed		396			373
Ceded		(1,704		)	(1,607		)
Net investment income		93,250			77,915
Asset administration fees:
Direct		83,868			87,033
Assumed		0			0
Ceded		(80,211		)	(83,560		)
Net asset administration fees		3,657			3,473
Other income:
Direct		19,798			17,253
Assumed(4)		(200		)	(90		)
Ceded		(23		)	(52		)
Amortization of reinsurance income		1,382			2,185
Net other income		20,957			19,296
Realized investment gains (losses), net:
Direct		(635,511		)	1,474,762
Assumed		0			0
Ceded(5)		586,876			(1,523,804		)
Realized investment gains (losses), net		(48,635		)	(49,042		)
Policyholders’ benefits (including change in reserves):
Direct		646,311			651,672
Assumed(6)		211,750			112,802
Ceded(7)		(818,583		)	(712,738		)
Net policyholders’ benefits (including change in reserves)		39,478			51,736
Interest credited to policyholders’ account balances:
Direct		94,691			124,734
Assumed		30,657			36,517
Ceded		(81,151		)	(120,453		)
Net interest credited to policyholders’ account balances		44,197			40,798
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization		(344,015		)	(434,371		)

(1) "Premiums assumed" includes $0.1 million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(2) "Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended March 31, 2019, and 2018 respectively.

(3) "Policy charges and fee income ceded" includes $(5) million and $(2) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(4) "Other income assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(5) “Realized investment gains (losses), net ceded” includes $14 million and $(38) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(6) "Policyholders' benefits (including change in reserves) assumed" includes $(0.2) million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.

(7) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million of unaffiliated activity for both the three months ended March 31, 2019 and 2018.

(8) Prior period amounts in the table above have been revised to correct previously reported numbers. These prior period revisions have also been reflected in the Unaudited Interim Consolidated Financial Statements. See Note 11 for a more detailed description of the revision.

Gross and Net Life Insurance in Force

The gross and net amounts of life insurance face amount in force as of March 31, 2019 and 2018 were as follows:

	2019			2018
	(in thousands)
Direct gross life insurance face amount in force	$	951,643,226		$	893,787,108
Assumed gross life insurance face amount in force	40,546,369			41,584,568
Reinsurance ceded	(913,655,428		)	(864,942,222		)
Net life insurance face amount in force	$	78,534,167		$	70,429,454

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Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2019 and 2018, are as follows:

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2018	$	(17,448	)	$	(10,848	)	$	(28,296	)
Change in OCI before reclassifications	6,049			156,295			162,344
Amounts reclassified from AOCI	0			3,790			3,790
Income tax benefit (expense)	(19		)	(33,614		)	(33,633		)
Balance, March 31, 2019	$	(11,418	)	$	115,623		$	104,205

	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment			Net Unrealized Investment Gains (Losses)(1)			Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2017	$	(234	)	$	165,580		$	165,346
Change in OCI before reclassifications	(923		)	(145,541		)	(146,464		)
Amounts reclassified from AOCI	0			490			490
Income tax benefit (expense)	194			30,506			30,700
Cumulative effect of adoption of ASU 2016-01	0			(1,539		)	(1,539		)
Cumulative effect of adoption of ASU 2018-02	(50		)	30,449			30,399
Balance, March 31, 2018	$	(1,013	)	$	79,945		$	78,932

(1)

Includes cash flow hedges of $15 million and $(18) million as of March 31, 2019 and December 31, 2018, respectively, and $1 million and $41 million as of March 31, 2018 and December 31, 2017, respectively.

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2019			2018
	(in thousands)
Amounts reclassified from AOCI (1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)	$	394		$	319
Net unrealized investment gains (losses) on available-for-sale securities	(4,184		)	(809		)
Total net unrealized investment gains (losses)(4)	(3,790		)	(490		)
Total reclassifications for the period	$	(3,790	)	$	(490	)

(1) All amounts are shown before tax.

(2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3) See Note 4 for additional information on cash flow hedges.

(4)

See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits, policyholders’ account balances and other liabilities. 

OTTI Net Unrealized Investment Gains (Losses) AOCI Rollforward

The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:

Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized

	Net Unrealized Gains (Losses) on Investments			Deferred Policy Acquisition Costs and Other Costs(2)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(689	)	$	(152	)	$	37		$	(192	)	$	(996	)
Net investment gains (losses) on investments arising during the period	573			0			0			(120		)	453
Reclassification adjustment for (gains) losses included in net income	(85		)	0			0			18			(67		)
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	(207		)	0			0			43			(164		)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			110			0			(23		)	87
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(65		)	14			(51		)
Balance, March 31, 2019	$	(408	)	$	(42	)	$	(28	)	$	(260	)	$	(738	)

(1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(3) "Other liabilities" primarily includes reinsurance payables.

All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward

All Other Net Unrealized Investment Gains (Losses) in AOCI

	Net Unrealized Gains (Losses) on Investments(2)			Deferred Policy Acquisition Costs and Other Costs(3)			Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4)			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2018	$	(16,632	)	$	(65,743	)	$	68,005		$	4,518		$	(9,852	)
Net investment gains (losses) on investments arising during the period	174,288			0			0			(36,596		)	137,692
Reclassification adjustment for (gains) losses included in net income	3,875			0			0			(814		)	3,061
Reclassification adjustment for OTTI (gains) losses excluded from net income(1)	207			0			0			(43		)	164
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0			141,369			0			(29,684		)	111,685
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities	0			0			(159,980		)	33,591			(126,389		)
Balance, March 31, 2019	$	161,738		$	75,626		$	(91,975	)	$	(29,028	)	$	116,361

(1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.

(2) Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses.

(4)

"Other liabilities" primarily includes reinsurance payables.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Affiliated Notes Receivable

Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2019 and December 31, 2018 were as follows:

	Maturity Dates			Interest Rates				March 31, 2019		December 31, 2018
								(in thousands)
U.S. dollar floating rate notes	2028			4.02%	-	4.23	%	$	0	$	6,502
U.S. dollar fixed rate notes	2020	-	2027	0.00%	-	14.85	%	128,479		128,140
Total notes receivable - affiliated(1)								$	128,479	$	134,642

(1)

All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.

Affiliated Asset Transfers

The table below shows affiliated asset trades for the three months ended March 31, 2019 and for the year ended December 31, 2018.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		APIC, Net of Tax Increase/(Decrease)			Realized Investment Gain (Loss)
				(in thousands)
DART	January 2018	Purchase	Other Invested Assets	$	21,457	$	21,457	$	0		$	0
PALAC	April 2018	Purchase	Fixed Maturities	$	64,313	$	64,313	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	87,486	$	87,486	$	0		$	0
GUL Re	May 2018	Purchase	Fixed Maturities	$	37,921	$	37,921	$	0		$	0
Prudential Realty Securities, Inc.	November 2018	Purchase	Commercial Mortgages	$	3,259	$	3,425	$	0		$	(167	)
Prudential Insurance	February 2019	Sale	Commercial Mortgages	$	4,995	$	5,000	$	(4	)	$	0

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Revision to Prior Year Information (Tables)

3 Months Ended

Mar. 31, 2019

Prior Period Adjustment [Abstract]

Revisions to 2018 Consolidated Financial Statements

The following are selected line items from the consolidated financial statements illustrating the effects of these revisions:

Consolidated Statements of Operations and Comprehensive Income (Loss)

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
REVENUES
Policy charges and fee income	$	125,896		$	3,259		$	129,155
TOTAL REVENUES	185,453			3,259			188,712
BENEFITS AND EXPENSES
Policyholders' benefits	48,955			2,781			51,736
Amortization of deferred policy acquisition costs	26,604			(459		)	26,145
TOTAL BENEFITS AND EXPENSES	177,147			2,322			179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	8,306			937			9,243
Income tax expense (benefit)	(2,448		)	(251		)	(2,699		)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	10,754			1,188			11,942
NET INCOME (LOSS)	$	10,116		$	1,188		$	11,304
COMPREHENSIVE INCOME (LOSS)	$	(105,158	)	$	1,188		$	(103,970	)

Consolidated Statements of Equity

	Retained Earnings						Total Equity
	As Previously Reported		Revision		As Revised		As Previously Reported			Revision		As Revised
	(in thousands)
Balance, December 31, 2017	$	1,511,698	$	14,612	$	1,526,310	$	2,820,636		$	14,612	$	2,835,248
Comprehensive income (loss):
Net income (loss)	10,116		1,188		11,304		10,116			1,188		11,304
Total comprehensive income (loss)							(105,158		)	1,188		(103,970		)
Balance, March 31, 2018	$	1,499,351	$	15,800	$	1,515,151	$	2,727,375		$	15,800	$	2,743,175

Consolidated Statements of Cash Flows

	Three Months Ended March 31, 2018
	As Previously Reported			Revision			As Revised
	(in thousands)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)	$	10,116		$	1,188		$	11,304
Policy charges and fee income	(24,173		)	476			(23,697		)
Future policy benefits	511,380			(2,968		)	508,412
Reinsurance recoverables	(430,215		)	5,748			(424,467		)
Deferred policy acquisition costs	(45,184		)	(458		)	(45,642		)
Income taxes	(2,651		)	(251		)	(2,902		)
Other, net	(93,619		)	(3,735		)	(97,354		)
Cash flows from (used in) operating activities	(7,769		)	0			(7,769		)

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Business and Basis of Presentation (Narrative) (Details)	3 Months Ended
	Mar. 31, 2019 subsidiary
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Number Of Subsidiaries	1
Indirect subsidiary dissolved in December 31, 2018
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Number Of Subsidiaries	1

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Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 5,468,161	$ 5,244,903
Fair Value	5,606,209	5,199,595
Fixed maturities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,468,161	5,244,903
Gross Unrealized Gains	198,565	96,757
Gross Unrealized Losses	60,517	142,065
Fair Value	5,606,209	5,199,595
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	77,354	75,049
Gross Unrealized Gains	2,645	2,427
Gross Unrealized Losses	0	6
Fair Value	79,999	77,470
Fixed maturities | Obligations of U.S. states and their political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	608,071	609,955
Gross Unrealized Gains	31,553	15,154
Gross Unrealized Losses	18	2,351
Fair Value	639,606	622,758
Fixed maturities | Foreign government bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	209,128	208,009
Gross Unrealized Gains	8,172	2,137
Gross Unrealized Losses	2,488	8,199
Fair Value	214,812	201,947
Fixed maturities | U.S. public corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,926,382	1,739,860
Gross Unrealized Gains	96,244	46,166
Gross Unrealized Losses	17,364	54,401
Fair Value	2,005,262	1,731,625
Fixed maturities | U.S. private corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	890,441	890,748
Gross Unrealized Gains	19,701	11,181
Gross Unrealized Losses	9,185	18,591
Fair Value	900,957	883,338
Fixed maturities | Foreign public corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	289,697	270,428
Gross Unrealized Gains	10,112	3,746
Gross Unrealized Losses	3,953	12,151
Fair Value	295,856	262,023
Fixed maturities | Foreign private corporate securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	885,807	857,604
Gross Unrealized Gains	19,955	9,797
Gross Unrealized Losses	25,216	40,022
Fair Value	880,546	827,379
Fixed maturities | Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	148,802	156,818
Gross Unrealized Gains	1,462	1,528
Gross Unrealized Losses	531	750
Fair Value	149,733	157,596
Fixed maturities | Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	345,909	347,570
Gross Unrealized Gains	7,239	3,353
Gross Unrealized Losses	1,379	4,527
Fair Value	351,769	346,396
Fixed maturities | Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	86,570	88,862
Gross Unrealized Gains	1,482	1,268
Gross Unrealized Losses	383	1,067
Fair Value	87,669	89,063
OTTI | Fixed maturities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	(257)	(299)
Net Unrealized Gains (Losses)	200	400
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Foreign government bonds
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | U.S. public corporate securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | U.S. private corporate securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Foreign public corporate securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Foreign private corporate securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	(85)	(122)
OTTI | Fixed maturities | Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	0	0
OTTI | Fixed maturities | Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
OTTI in AOCI	$ (172)	$ (177)

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Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	$ 389,638	$ 1,996,758
Less than Twelve Months, Gross Unrealized Losses	10,717	81,764
Twelve Months or More, Fair Value	1,064,376	947,390
Twelve Months or More, Gross Unrealized Losses	49,800	60,301
Total, Fair Value	1,454,014	2,944,148
Total, Gross Unrealized Losses	60,517	142,065
US Treasury securities and obligations of U.S. government authorities and agencies
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	0	0
Less than Twelve Months, Gross Unrealized Losses	0	0
Twelve Months or More, Fair Value	0	630
Twelve Months or More, Gross Unrealized Losses	0	6
Total, Fair Value	0	630
Total, Gross Unrealized Losses	0	6
Obligations of U.S. states and their political subdivisions
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	0	124,776
Less than Twelve Months, Gross Unrealized Losses	0	1,571
Twelve Months or More, Fair Value	6,771	31,215
Twelve Months or More, Gross Unrealized Losses	18	780
Total, Fair Value	6,771	155,991
Total, Gross Unrealized Losses	18	2,351
Foreign government bonds
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	4,181	77,055
Less than Twelve Months, Gross Unrealized Losses	28	3,184
Twelve Months or More, Fair Value	71,392	59,700
Twelve Months or More, Gross Unrealized Losses	2,460	5,015
Total, Fair Value	75,573	136,755
Total, Gross Unrealized Losses	2,488	8,199
U.S. public corporate securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	110,017	784,916
Less than Twelve Months, Gross Unrealized Losses	2,347	37,635
Twelve Months or More, Fair Value	330,357	213,147
Twelve Months or More, Gross Unrealized Losses	15,017	16,766
Total, Fair Value	440,374	998,063
Total, Gross Unrealized Losses	17,364	54,401
U.S. private corporate securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	54,835	263,934
Less than Twelve Months, Gross Unrealized Losses	4,183	9,159
Twelve Months or More, Fair Value	194,614	287,031
Twelve Months or More, Gross Unrealized Losses	5,002	9,432
Total, Fair Value	249,449	550,965
Total, Gross Unrealized Losses	9,185	18,591
Foreign public corporate securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	7,508	124,764
Less than Twelve Months, Gross Unrealized Losses	93	6,286
Twelve Months or More, Fair Value	83,890	72,725
Twelve Months or More, Gross Unrealized Losses	3,860	5,865
Total, Fair Value	91,398	197,489
Total, Gross Unrealized Losses	3,953	12,151
Foreign private corporate securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	114,485	424,921
Less than Twelve Months, Gross Unrealized Losses	3,592	22,605
Twelve Months or More, Fair Value	228,928	127,201
Twelve Months or More, Gross Unrealized Losses	21,624	17,417
Total, Fair Value	343,413	552,122
Total, Gross Unrealized Losses	25,216	40,022
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	98,426	112,527
Less than Twelve Months, Gross Unrealized Losses	473	650
Twelve Months or More, Fair Value	10,015	6,523
Twelve Months or More, Gross Unrealized Losses	58	100
Total, Fair Value	108,441	119,050
Total, Gross Unrealized Losses	531	750
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	0	49,616
Less than Twelve Months, Gross Unrealized Losses	0	434
Twelve Months or More, Fair Value	110,228	116,786
Twelve Months or More, Gross Unrealized Losses	1,379	4,093
Total, Fair Value	110,228	166,402
Total, Gross Unrealized Losses	1,379	4,527
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than Twelve Months, Fair Value	186	34,249
Less than Twelve Months, Gross Unrealized Losses	1	240
Twelve Months or More, Fair Value	28,181	32,432
Twelve Months or More, Gross Unrealized Losses	382	827
Total, Fair Value	28,367	66,681
Total, Gross Unrealized Losses	$ 383	$ 1,067

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Investments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Investment [Line Items]
Securities sold under agreements to repurchase	$ 0		$ 0
Commercial mortgage loans, Percentage	100.00%		100.00%
Commercial mortgage and other loans, Acquired	$ 0	$ 0
Commercial mortgage and other loans, Sold	5,000,000	0
Fixed maturities
Investment [Line Items]
Gross unrealized losses	60,517,000		$ 142,065,000
Gross unrealized losses of twelve months or more concentrated in various sectors	49,800,000		60,301,000
NAIC high or highest quality rating | Fixed maturities
Investment [Line Items]
Gross unrealized losses	46,400,000		121,300,000
NAIC other than high or highest quality rating | Fixed maturities
Investment [Line Items]
Gross unrealized losses	$ 14,100,000		20,800,000
California
Investment [Line Items]
Commercial mortgage loans, Percentage	21.00%
Texas
Investment [Line Items]
Commercial mortgage loans, Percentage	14.00%
New York
Investment [Line Items]
Commercial mortgage loans, Percentage	7.00%
Europe
Investment [Line Items]
Commercial mortgage loans, Percentage	6.00%
Australia
Investment [Line Items]
Commercial mortgage loans, Percentage	4.00%
Mexico
Investment [Line Items]
Commercial mortgage loans, Percentage	2.00%
Other Income | Equity securities
Investment [Line Items]
Unrealized Gain (Loss) on Investments	$ 700,000	$ (1,200,000)
Fixed maturities
Investment [Line Items]
Gross unrealized losses of twelve months or more concentrated in various sectors	$ 49,800,000		$ 60,300,000

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Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Due in one year or less	$ 206,941
Due after one year through five years	705,933
Due after five years through ten years	993,523
Due after ten years	2,980,483
Amortized Cost	5,468,161	$ 5,244,903
Fair Value
Due in one year or less	208,192
Due after one year through five years	703,752
Due after five years through ten years	1,008,175
Due after ten years	3,096,919
Fair Value	5,606,209	$ 5,199,595
Asset-backed securities
Amortized Cost
Debt Maturities, without single maturity date	148,802
Fair Value
Debt Maturities, without Single Maturity Date	149,733
Commercial mortgage-backed securities
Amortized Cost
Debt Maturities, without single maturity date	345,909
Fair Value
Debt Maturities, without Single Maturity Date	351,769
Residential mortgage-backed securities
Amortized Cost
Debt Maturities, without single maturity date	86,570
Fair Value
Debt Maturities, without Single Maturity Date	$ 87,669

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Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Proceeds from maturities/prepayments	$ 70,725	$ 69,410
Fixed maturities | Available-for-sale
Debt Securities, Available-for-sale [Line Items]
Proceeds from sales	24,787	16,852
Proceeds from maturities/prepayments	52,875	54,310
Gross investment gains from sales and maturities	949	144
Gross investment losses from sales and maturities	(1,970)	(359)
OTTI recognized in earnings	(3,163)	(594)
Non-cash related proceeds	$ 6,900	$ 1,800

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Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	$ 1,291	$ 4,374
New credit loss impairments	3,022	0
Increases due to the passage of time on previously recorded credit losses	10	37
Reductions for securities which matured, paid down, prepaid or were sold during the period	(593)	(42)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(120)	(25)
Balance, end of period	$ 3,610	$ 4,344

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Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 1,214,676	$ 1,211,215
Commercial mortgage loans, Percentage	100.00%	100.00%
Allowance for Credit Losses	$ (2,058)	$ (2,065)
Total commercial mortgage and other loans	1,212,618	1,209,150
Apartments and multi-family
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 356,454	$ 362,811
Commercial mortgage loans, Percentage	29.30%	29.90%
Hospitality
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 15,969	$ 16,083
Commercial mortgage loans, Percentage	1.30%	1.30%
Industrial
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 271,953	$ 263,999
Commercial mortgage loans, Percentage	22.50%	21.80%
Office
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 191,236	$ 187,450
Commercial mortgage loans, Percentage	15.70%	15.50%
Other
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 131,850	$ 131,961
Commercial mortgage loans, Percentage	10.90%	10.90%
Retail
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 192,381	$ 193,473
Commercial mortgage loans, Percentage	15.80%	16.00%
Commercial mortgage loans
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 1,159,843	$ 1,155,777
Commercial mortgage loans, Percentage	95.50%	95.40%
Agricultural property loans
Commercial Mortgage and Other Loans [Line Items]
Commercial mortgage and agricultural property loans	$ 54,833	$ 55,438
Commercial mortgage loans, Percentage	4.50%	4.60%

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Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	$ 2,065	$ 1,794
Addition to (release of) allowance for credit losses	(7)	271
Charge-offs, net of recoveries	0	0
Total ending balance	2,058	2,065
Commercial Mortgage Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	2,026	1,728
Addition to (release of) allowance for credit losses	(10)	298
Charge-offs, net of recoveries	0	0
Total ending balance	2,016	2,026
Agricultural Property Loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of year	39	66
Addition to (release of) allowance for credit losses	3	(27)
Charge-offs, net of recoveries	0	0
Total ending balance	$ 42	$ 39

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Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for credit losses:
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	2,058	2,065
Total ending balance	2,058	2,065	$ 1,794
Recorded investment:
Individually evaluated for impairment	0	816
Collectively evaluated for impairment	1,214,676	1,210,399
Total ending balance	1,214,676	1,211,215
Receivables Acquired with Deteriorated Credit Quality
Recorded investment:
Financing Receivable Total	0	0
Commercial Mortgage Loans
Allowance for credit losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	2,016	2,026
Total ending balance	2,016	2,026	1,728
Recorded investment:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,159,843	1,155,777
Total ending balance	1,159,843	1,155,777
Agricultural Property Loans
Allowance for credit losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	42	39
Total ending balance	42	39	$ 66
Recorded investment:
Individually evaluated for impairment	0	816
Collectively evaluated for impairment	54,833	54,622
Total ending balance	$ 54,833	$ 55,438

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Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	$ 1,214,676	$ 1,211,215
0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	712,578	709,358
60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	333,001	340,111
70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	141,869	133,517
80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	27,228	28,229
≥ 1.2X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	1,155,899	1,151,820
≥ 1.2X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	698,110	696,507
≥ 1.2X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	316,532	321,586
≥ 1.2X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	114,257	105,727
≥ 1.2X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	27,000	28,000
1.0X to 1.2X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	58,549	59,315
1.0X to 1.2X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	14,468	12,771
1.0X to 1.2X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	16,469	18,525
1.0X to 1.2X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	27,612	27,790
1.0X to 1.2X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	229
Less than 1.0X
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	228	80
Less than 1.0X | 0%-59.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	80
Less than 1.0X | 60%-69.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	0
Less than 1.0X | 70%-79.99%
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	0	0
Less than 1.0X | 80% and greater
Financing Receivable, Recorded Investment [Line Items]
Recording investment gross of allowance for credit losses	$ 228	$ 0

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Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,214,676	$ 1,211,215
Total Loans	1,214,676	1,211,215
Non-Accrual Status	0	0
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,159,843	1,155,777
Total Loans	1,159,843	1,155,777
Non-Accrual Status	0	0
Commercial mortgage loans | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Commercial mortgage loans | 90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	54,833	55,438
Total Loans	54,833	55,438
Non-Accrual Status	0	0
Agricultural property loans | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Agricultural property loans | 90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	0	0
Loans | 90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing Interest	$ 0	$ 0

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Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Invested Assets [Line Items]
Other invested assets	$ 358,288	$ 377,429
Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	301,243	286,490
Company’s investment in separate accounts
Other Invested Assets [Line Items]
Other invested assets	41,577	40,126
Derivative Instruments
Other Invested Assets [Line Items]
Other invested assets	15,468	50,813
Equity Method Investments | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	228,602	216,586
Equity Method Investments | Private equity | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	158,754	149,164
Equity Method Investments | Hedge funds | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	59,513	57,171
Equity Method Investments | Real estate-related | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	10,335	10,251
Fair Value | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	72,641	69,904
Fair Value | Private equity | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	61,817	60,118
Fair Value | Hedge funds | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	769	762
Fair Value | Real estate-related | Total LPs/LLCs
Other Invested Assets [Line Items]
Other invested assets	$ 10,055	$ 9,024

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Investments (Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 97,707	$ 82,494
Less: investment expenses	(4,457)	(4,579)
Net investment income	93,250	77,915
Equity securities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	221	221
Commercial mortgage and other loans
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	12,491	12,405
Policy loans
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	16,199	15,904
Short-term investments and cash equivalents
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	2,311	323
Other invested assets
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	9,911	115
Available-for-sale | Fixed maturities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	56,266	53,260
Trading | Fixed maturities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 308	$ 266

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Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	$ (48,635)	$ (49,042)
Fixed maturities
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	(4,184)	(809)
Commercial mortgage and other loans
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	7	131
LPs/LLCs
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	12	847
Derivatives
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	(44,477)	(49,193)
Short-term investments and cash equivalents
Schedule Of Gain Loss On Investments [Line Items]
Realized investment gains (losses), net	$ 7	$ (18)

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Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	$ 161,330	$ (17,321)
Fixed maturities | Available-for-sale | OTTI
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	(408)	(689)
Fixed maturities | Available-for-sale | All other
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	138,456	(44,619)
Derivatives designated as cash flow hedges
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	15,441	22,122
Affiliated notes
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	2,899	810
Other investments
Gain (Loss) on Securities [Line Items]
Net Unrealized Gains (Losses) on Investments	$ 4,942	$ 5,055

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Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	$ 10,334	$ 11,063
Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	10,334	11,063
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
30 days or greater
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
US Treasury securities and obligations of U.S. government authorities and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	3,109	8,169
US Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	3,109	8,169
US Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
Foreign government bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,121	0
Foreign government bonds | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,121	0
Foreign government bonds | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
U.S. public corporate securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,745	628
U.S. public corporate securities | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,745	628
U.S. public corporate securities | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	0	0
Foreign public corporate securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,359	2,266
Foreign public corporate securities | Overnight & Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	2,359	2,266
Foreign public corporate securities | Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total cash collateral for loaned securities	$ 0	$ 0

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Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Notional	$ 3,245,456	$ 3,070,256
Assets	131,368	77,890
Liabilities	(39,763)	(26,862)
Derivatives Designated as Hedge Accounting Instruments:
Derivative [Line Items]
Notional	738,998	719,476
Assets	33,171	38,333
Liabilities	(19,619)	(16,638)
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps
Derivative [Line Items]
Notional	738,998	719,476
Assets	33,171	38,333
Liabilities	(19,619)	(16,638)
Derivatives Not Qualifying as Hedge Accounting Instruments:
Derivative [Line Items]
Notional	2,506,458	2,350,780
Assets	98,197	39,557
Liabilities	(20,144)	(10,224)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps
Derivative [Line Items]
Notional	246,925	246,925
Assets	20,945	15,665
Liabilities	0	(3,174)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards
Derivative [Line Items]
Notional	23,318	23,043
Assets	331	277
Liabilities	(38)	(20)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps
Derivative [Line Items]
Notional	0	756
Assets	0	0
Liabilities	0	(9)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps
Derivative [Line Items]
Notional	113,062	98,363
Assets	5,987	6,303
Liabilities	(1,035)	(2,109)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options
Derivative [Line Items]
Notional	2,123,153	1,981,693
Assets	70,934	17,312
Liabilities	$ (19,071)	$ (4,912)

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Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives Assets
Gross Amounts of Recognized Financial Instruments	$ 131,365	$ 77,887
Gross Amounts Offset in the Consolidated Statement of Financial Position	(115,900)	(27,078)
Net Amounts Presented in the Consolidated Statement of Financial Position	15,465	50,809
Financial Instruments/Collateral	(12,809)	(7,307)
Net Amount	2,656	43,502
Securities Purchased under Agreements to Resell
Gross Amounts of Recognized Financial Instruments	0	143,000
Gross Amounts Offset in the Consolidated Statement of Financial Position	0	0
Net Amounts Presented in the Consolidated Statement of Financial Position	0	143,000
Financial Instruments/Collateral	0	(143,000)
Net Amount	0	0
Total Assets
Gross Amounts of Recognized Financial Instruments	131,365	220,887
Gross Amounts Offset in the Consolidated Statement of Financial Position	(115,900)	(27,078)
Net Amounts Presented in the Consolidated Statement of Financial Position	15,465	193,809
Financial Instruments/Collateral	(12,809)	(150,307)
Net Amount	2,656	43,502
Derivatives Liabilities
Gross Amounts of Recognized Financial Instruments	39,763	26,862
Gross Amounts Offset in the Consolidated Statement of Financial Position	(39,763)	(26,862)
Net Amounts Presented in the Consolidated Statement of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	0	0
Securities Sold under Agreements to Repurchase
Gross Amounts of Recognized Financial Instruments	0	0
Gross Amounts Offset in the Consolidated Statement of Financial Position	0	0
Net Amounts Presented in the Consolidated Statement of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	0	0
Total Liabilities
Gross Amounts of Recognized Financial Instruments	39,763	26,862
Gross Amounts Offset in the Consolidated Statement of Financial Position	(39,763)	(26,862)
Net Amounts Presented in the Consolidated Statement of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	$ 0	$ 0

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Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	$ (44,477)	$ (49,193)
Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	2,069	1,538
Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(1,514)	(687)
AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(6,654)	(22,862)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(160)	(517)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	2,069	1,538
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(1,515)	(664)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(6,654)	(22,862)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(160)	(517)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	2,069	1,538
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(1,515)	(664)
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(6,654)	(22,862)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(44,317)	(48,676)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1	(23)
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	7,616	(9,401)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(20)	(556)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1,430	(3,334)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	1	(23)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(1)	(1)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	28,863	(4,757)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	(82,205)	(30,627)
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	0	0
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivatives, net	$ 0	$ 0

XML

Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Cumulative effect of adoption		$ (27)
Cash flow hedgers in AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Balance, beginning	$ 22,122
Amount Recorded in AOCI	(6,260)
Amounts reclassified into current period earnings	(394)
Balance, ending	15,441
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amount Recorded in AOCI	(6,260)
Amounts reclassified into current period earnings	$ (394)

XML

Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ 7.0
Credit Protection Purchased Notional Amounts	0.0	$ 1.0
Credit Derivative Protection Purchased Fair Value Asset (Liability)	0.0	0.0
Future Policy Benefits
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	(6,459.0)	(5,589.0)
Reinsurance Recoverables
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	6,468.0	5,600.0
Reinsurance Recoverables | PALAC and Prudential Insurance
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	6,430.0	5,585.0
Reinsurance Recoverables | Union Hamilton Reinsurance, Ltd.
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	38.0	15.0
Policyholders' account balances
Derivative [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net	$ (53.0)	$ (13.0)

XML

Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	$ 5,606,209	$ 5,199,595
Fixed maturities, trading	43,000	41,627
Equity securities	34,747	36,922
Other invested assets	358,288	377,429
Reinsurance recoverables	36,106,323	34,682,127
Receivables from parent and affiliates	278,050	289,580
Separate account assets	128,998,408	119,077,916
TOTAL ASSETS	176,465,155	164,680,784
Future policy benefits	20,943,806	19,476,394
Payables to parent and affiliates	217,073	229,345
TOTAL LIABILITIES	173,512,753	161,947,553
Future policy benefits
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability	6,459,000	5,589,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset	623,000	633,000
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability	7,082,000	6,222,000
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	5,606,209	5,199,595
Fixed maturities, trading	43,000	41,627
Equity securities	34,747	36,922
Cash equivalents	355,168	216,946
Other invested assets	15,468	50,812
Reinsurance recoverables	6,468,704	5,600,008
Receivables from parent and affiliates	128,479	134,642
Subtotal excluding separate account assets	12,651,775	11,280,552
Separate account assets	124,615,650	114,947,872
TOTAL ASSETS	137,267,425	126,228,424
Future policy benefits	6,459,377	5,588,840
Policyholders’ account balances	53,136	13,015
Payables to parent and affiliates	0	0
TOTAL LIABILITIES	6,512,513	5,601,855
Asset Netting	(115,900)	(27,078)
Liability Netting	(39,763)	(26,862)
Netting	76,100	200
Fair Value, Measurements, Recurring | Other invested assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset Netting	(115,900)	(27,078)
Fair Value, Measurements, Recurring | Payables to parent and affiliates
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liability Netting	(39,763)	(26,862)
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	79,999	77,470
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	639,606	622,758
Fair Value, Measurements, Recurring | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	214,812	201,947
Fair Value, Measurements, Recurring | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	2,005,262	1,731,625
Fair Value, Measurements, Recurring | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	900,957	883,338
Fair Value, Measurements, Recurring | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	295,856	262,023
Fair Value, Measurements, Recurring | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	880,546	827,379
Fair Value, Measurements, Recurring | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	149,733	157,596
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	351,769	346,396
Fair Value, Measurements, Recurring | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	87,669	89,063
Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fixed maturities, trading	0	0
Equity securities	140	131
Cash equivalents	104,949	69,903
Other invested assets	0	0
Reinsurance recoverables	0	0
Receivables from parent and affiliates	0	0
Subtotal excluding separate account assets	105,089	70,034
Separate account assets	0	0
TOTAL ASSETS	105,089	70,034
Future policy benefits	0	0
Policyholders’ account balances	0	0
Payables to parent and affiliates	0	0
TOTAL LIABILITIES	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	5,439,093	5,106,635
Fixed maturities, trading	43,000	41,627
Equity securities	18,616	20,794
Cash equivalents	250,219	147,043
Other invested assets	131,364	77,886
Reinsurance recoverables	0	0
Receivables from parent and affiliates	120,687	125,381
Subtotal excluding separate account assets	6,002,979	5,519,366
Separate account assets	124,615,650	114,947,872
TOTAL ASSETS	130,618,629	120,467,238
Future policy benefits	0	0
Policyholders’ account balances	0	0
Payables to parent and affiliates	39,763	26,862
TOTAL LIABILITIES	39,763	26,862
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	47,811	47,654
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	639,606	622,758
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	214,648	201,947
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	2,005,259	1,731,623
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	857,453	838,497
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	295,645	262,023
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	869,304	815,634
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	147,000	151,040
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	274,698	346,396
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	87,669	89,063
Fair Value, Measurements, Recurring | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	167,116	92,960
Fixed maturities, trading	0	0
Equity securities	15,991	15,997
Cash equivalents	0	0
Other invested assets	4	4
Reinsurance recoverables	6,468,704	5,600,008
Receivables from parent and affiliates	7,792	9,261
Subtotal excluding separate account assets	6,659,607	5,718,230
Separate account assets	0	0
TOTAL ASSETS	6,659,607	5,718,230
Future policy benefits	6,459,377	5,588,840
Policyholders’ account balances	53,136	13,015
Payables to parent and affiliates	0	0
TOTAL LIABILITIES	6,512,513	5,601,855
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	32,188	29,816
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	164	0
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	3	2
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	43,504	44,841
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	211	0
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	11,242	11,745
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	2,733	6,556
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	77,071	0
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fixed maturities, available-for-sale	0	0
Other invested assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value investment measured at NAV per share	73,000	70,000
Separate Account Assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value investment measured at NAV per share	$ 4,383,000	$ 4,130,000

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Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Corporate securities	$ 28,920	$ 31,824
Future policy benefits	20,943,806	19,476,394
Fair Value, Measurements, Recurring
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 6,459,377	5,588,840
Level 3 | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Policyholder Age	50 years
Level 3 | Minimum | Future policy benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Mortality rate	0.00%
Level 3 | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Policyholder Age	90 years
Level 3 | Fair Value, Measurements, Recurring
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 6,459,377	$ 5,588,840
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Lapse rate	1.00%	1.00%
Spread over LIBOR	0.12%	0.36%
Utilization rate	50.00%	50.00%
Withdrawal rate (greater than maximum range)	78.00%	78.00%
Mortality rate	0.00%	0.00%
Equity volatility curve	15.00%	18.00%
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount Rate	8.25%	7.00%
Level 3 | Internal | Minimum | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.18%	40.71%
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Lapse rate	13.00%	13.00%
Spread over LIBOR	1.35%	1.60%
Utilization rate	97.00%	97.00%
Withdrawal rate (greater than maximum range)	100.00%	100.00%
Mortality rate	15.00%	15.00%
Equity volatility curve	22.00%	22.00%
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount Rate	20.00%	20.00%
Level 3 | Internal | Maximum | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.18%	40.71%
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Discount Rate	13.69%	10.21%
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Liquidation value	13.18%	40.71%
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Future policy benefits	$ 6,459,377	$ 5,588,840
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Corporate securities	23,065	31,503
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Reinsurance recoverables	$ 6,468,704	$ 5,600,008

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Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	$ 15,997	$ 17,525
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Other	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	15,991	17,039
Total gains (losses) (realized/unrealized):
Included in earnings	(6)	(486)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(6)	(486)
Equity securities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Equity securities | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	(6)	(486)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(6)	(486)
Equity securities | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Equity securities | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Other invested assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	4	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Other	0	0
Transfers into Level 3	0	9
Transfers out of Level 3	0	0
Fair Value, end of period	4	10
Total gains (losses) (realized/unrealized):
Included in earnings	0	1
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	2
Other invested assets | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	1
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	2
Other invested assets | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Other invested assets | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Other invested assets | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Short-term Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0	1,339
Purchases	0	3,400
Sales	0	0
Issuances	0	0
Settlements	0	(3,513)
Other	0	(14)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	0	1,194
Total gains (losses) (realized/unrealized):
Included in earnings	0	(18)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	(18)
Short-term Investments | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	(18)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	(18)
Short-term Investments | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Short-term Investments | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Short-term Investments | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Reinsurance recoverables
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	5,600,008	5,457,649
Purchases	235,378	219,457
Sales	0	0
Issuances	0	0
Settlements	0	0
Other	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	6,468,704	4,214,114
Total gains (losses) (realized/unrealized):
Included in earnings	633,318	(1,462,992)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	677,444	(1,409,320)
Reinsurance recoverables | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	633,318	(1,462,992)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	677,444	(1,409,320)
Reinsurance recoverables | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Reinsurance recoverables | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Reinsurance recoverables | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Receivables from parents and affiliates
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	9,261	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	(1,580)	0
Other	0	0
Transfers into Level 3	0	6,551
Transfers out of Level 3	0	0
Fair Value, end of period	7,792	6,531
Total gains (losses) (realized/unrealized):
Included in earnings	111	(20)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Receivables from parents and affiliates | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Receivables from parents and affiliates | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	(20)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Receivables from parents and affiliates | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Receivables from parents and affiliates | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	111	0
Future policy benefits
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	(5,588,840)	(5,452,583)
Purchases	0	0
Sales	0	0
Issuances	(233,435)	(226,345)
Settlements	0	0
Other	0	0
Transfers Into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	(6,459,377)	(4,191,373)
Total gains (losses) (realized/unrealized):
Included in earnings	(637,102)	1,487,555
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(681,227)	1,433,872
Future policy benefits | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(637,102)	1,487,555
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(681,227)	1,433,872
Future policy benefits | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Future policy benefits | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Future policy benefits | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Policyholders' account balances
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	(13,015)	(46,651)
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	(6,507)	2,122
Other	0	0
Transfers Into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	(53,136)	(39,516)
Total gains (losses) (realized/unrealized):
Included in earnings	(33,614)	5,013
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(33,614)	5,013
Policyholders' account balances | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(33,614)	5,013
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(33,614)	5,013
Policyholders' account balances | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Policyholders' account balances | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Policyholders' account balances | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Other liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		0
Purchases		8,825
Sales		0
Issuances		0
Settlements		0
Other		0
Transfers Into Level 3		0
Transfers out of Level 3		0
Fair Value, end of period		(15,955)
Total gains (losses) (realized/unrealized):
Included in earnings		(24,780)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings		(24,780)
Other liabilities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings		(24,780)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings		(24,780)
Other liabilities | Other income
Total gains (losses) (realized/unrealized):
Included in earnings		0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings		0
Other liabilities | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings		0
Other liabilities | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings		0
Available-for-sale | Fixed maturities | Realized investment gains (losses), net
Total gains (losses) (realized/unrealized):
Included in earnings	(2,402)	68
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(3,163)	(26)
Available-for-sale | Fixed maturities | Other income
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss)
Total gains (losses) (realized/unrealized):
Included in earnings	164	914
Available-for-sale | Fixed maturities | Net investment income
Total gains (losses) (realized/unrealized):
Included in earnings	99	77
Available-for-sale | Fixed maturities | US government
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	29,816	19,204
Purchases	2,372	2,365
Sales	0	0
Issuances	0	0
Settlements	0	0
Other	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, end of period	32,188	21,569
Total gains (losses) (realized/unrealized):
Included in earnings	0	0
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Available-for-sale | Fixed maturities | Foreign government bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Other	0	174
Transfers into Level 3	159	0
Transfers out of Level 3	0	0
Fair Value, end of period	164	166
Total gains (losses) (realized/unrealized):
Included in earnings	5	(8)
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	0	0
Available-for-sale | Fixed maturities | Corporate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	56,588	75,421
Purchases	1,331	1,022
Sales	(28)	0
Issuances	0	0
Settlements	(7,097)	(4,570)
Other	1	15
Transfers into Level 3	7,577	0
Transfers out of Level 3	0	(209)
Fair Value, end of period	54,960	72,615
Total gains (losses) (realized/unrealized):
Included in earnings	(3,412)	936
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	(3,163)	(26)
Available-for-sale | Fixed maturities | Structured securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	6,556	111,028
Purchases	0	190
Sales	(1)	0
Issuances	0	0
Settlements	(3,979)	(3,195)
Other	0	0
Transfers into Level 3	75,960	13,513
Transfers out of Level 3	0	(26,794)
Fair Value, end of period	79,804	94,873
Total gains (losses) (realized/unrealized):
Included in earnings	1,268	131
Unrealized gains (losses) for assets/liabilities still held:
Included in earnings	$ 0	$ 0

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Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets:
Policy loans	$ 1,251,094	$ 1,236,077
Cash and cash equivalents	403,283	416,840	$ 81,186	$ 212,569
Accrued investment income	89,358	88,278
Receivables from parent and affiliates	278,050	289,580
Liabilities:
Cash collateral for loaned securities	10,334	11,063
Fair Value
Assets:
Commercial mortgage and other loans	1,240,689	1,214,350
Policy loans	1,251,094	1,236,077
Cash and cash equivalents	48,115	199,894
Accrued investment income	89,358	88,278
Receivables from parent and affiliates	149,571	154,938
Other assets	35,112	28,950
Total assets	2,813,939	2,922,487
Liabilities:
Policyholders’ account balances - investment contracts	1,502,794	1,479,069
Cash collateral for loaned securities	10,334	11,063
Payables to parent and affiliates	217,073	229,345
Other liabilities	358,256	372,997
Total liabilities	2,088,457	2,092,474
Carrying Amount
Assets:
Commercial mortgage and other loans	1,212,618	1,209,150
Policy loans	1,251,094	1,236,077
Cash and cash equivalents	48,115	199,894
Accrued investment income	89,358	88,278
Receivables from parent and affiliates	149,571	154,938
Other assets	35,112	28,950
Total assets	2,785,868	2,917,287
Liabilities:
Policyholders’ account balances - investment contracts	1,507,136	1,486,929
Cash collateral for loaned securities	10,334	11,063
Payables to parent and affiliates	217,073	229,345
Other liabilities	358,256	372,997
Total liabilities	2,092,799	2,100,334
Level 1 | Fair Value
Assets:
Commercial mortgage and other loans	0	0
Policy loans	0	0
Cash and cash equivalents	48,115	56,894
Accrued investment income	0	0
Receivables from parent and affiliates	0	0
Other assets	0	0
Total assets	48,115	56,894
Liabilities:
Policyholders’ account balances - investment contracts	0	0
Cash collateral for loaned securities	0	0
Payables to parent and affiliates	0	0
Other liabilities	0	0
Total liabilities	0	0
Level 2 | Fair Value
Assets:
Commercial mortgage and other loans	0	0
Policy loans	0	0
Cash and cash equivalents	0	143,000
Accrued investment income	89,358	88,278
Receivables from parent and affiliates	149,571	154,938
Other assets	35,112	28,950
Total assets	274,041	415,166
Liabilities:
Policyholders’ account balances - investment contracts	1,226,786	1,206,747
Cash collateral for loaned securities	10,334	11,063
Payables to parent and affiliates	217,073	229,345
Other liabilities	358,256	372,997
Total liabilities	1,812,449	1,820,152
Level 3 | Fair Value
Assets:
Commercial mortgage and other loans	1,240,689	1,214,350
Policy loans	1,251,094	1,236,077
Cash and cash equivalents	0	0
Accrued investment income	0	0
Receivables from parent and affiliates	0	0
Other assets	0	0
Total assets	2,491,783	2,450,427
Liabilities:
Policyholders’ account balances - investment contracts	276,008	272,322
Cash collateral for loaned securities	0	0
Payables to parent and affiliates	0	0
Other liabilities	0	0
Total liabilities	$ 276,008	$ 272,322

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Change in Accounting Estimate [Line Items]
Income tax expense (benefit)	$ (16,880)	$ (2,699)
Effective income tax rate, percent	(23.57%)	(29.20%)
Federal Statutory income tax rate, percent	21.00%

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Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Effects of Reinsurance [Line Items]
Reinsurance recoverables	$ 36,106,323	$ 34,682,127
Policy loans	1,251,094	1,236,077
Deferred policy acquisition costs	1,675,860	1,613,922
Other assets	378,154	365,219
Future policy benefits	20,943,806	19,476,394
Other liabilities	1,133,756	1,093,143
Impacts of Reinsurance
Effects of Reinsurance [Line Items]
Reinsurance recoverables	36,106,323	34,682,127
Policy loans	(132,433)	(130,502)
Deferred policy acquisition costs	(7,255,866)	(7,267,847)
Deferred sales inducements	(567,015)	(562,052)
Other assets	171,968	185,573
Policyholders’ account balances	4,986,354	5,004,112
Future policy benefits	3,619,334	3,376,048
Other liabilities	653,666	621,856
Unaffiliated activity
Effects of Reinsurance [Line Items]
Other assets	100	100
Other liabilities	$ 39,000	$ 27,000

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Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	$ 36,106,323	$ 34,682,127
PAR U
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	11,680,401	11,444,032
PALAC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	9,622,605	8,828,190
PURC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	4,211,368	4,127,455
PARCC
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	2,484,194	2,527,690
GUL Re
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	2,044,196	2,017,810
PAR Term
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,691,610	1,678,745
Prudential of Taiwan
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,424,669	1,414,669
Term Re
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,347,453	1,259,141
Prudential Insurance
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	1,355,025	1,226,917
DART
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	168,676	119,946
Unaffiliated
Effects of Reinsurance [Line Items]
Total reinsurance recoverables	$ 76,126	$ 37,532

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Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Premiums:
Direct	$ 462,271	$ 441,955
Assumed	54	60
Ceded	(448,331)	(434,100)
Net premiums	13,994	7,915
Policy charges and fee income:
Direct	853,195	846,247
Assumed	126,959	121,709
Ceded	(840,965)	(838,801)
Net policy charges and fee income	139,189	129,155
Net investment income:
Direct	94,558	79,149
Assumed	396	373
Ceded	(1,704)	(1,607)
Net investment income	93,250	77,915
Asset administration fees:
Direct	83,868	87,033
Assumed	0	0
Ceded	(80,211)	(83,560)
Net asset administration fees	3,657	3,473
Other income:
Direct	19,798	17,253
Assumed	(200)	(90)
Ceded	(23)	(52)
Amortization of reinsurance income	1,382	2,185
Net other income	20,957	19,296
Realized investment gains (losses), net:
Direct	(635,511)	1,474,762
Assumed	0	0
Ceded	586,876	(1,523,804)
Realized investment gains (losses), net	(48,635)	(49,042)
Policyholders’ benefits (including change in reserves):
Direct	646,311	651,672
Assumed	211,750	112,802
Ceded	(818,583)	(712,738)
Net policyholders’ benefits (including change in reserves)	39,478	51,736
Interest credited to policyholders’ account balances:
Direct	94,691	124,734
Assumed	30,657	36,517
Ceded	(81,151)	(120,453)
Net interest credited to policyholders’ account balances	44,197	40,798
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(344,015)	(434,371)
Unaffiliated activity
Premiums:
Assumed	100	100
Ceded	(100)	0
Policy charges and fee income:
Ceded	(5,000)	(2,000)
Other income:
Assumed	(200)	(100)
Realized investment gains (losses), net:
Ceded	14,000	(38,000)
Policyholders’ benefits (including change in reserves):
Assumed	(200)	(100)
Ceded	$ (2,000)	$ (2,000)

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Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Reinsurance Disclosures [Abstract]
Direct gross life insurance face amount in force	$ 951,643,226	$ 893,787,108
Assumed gross life insurance face amount in force	40,546,369	41,584,568
Reinsurance ceded	(913,655,428)	(864,942,222)
Net life insurance face amount in force	$ 78,534,167	$ 70,429,454

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Reinsurance (Narrative) (Details) - USD ($) $ in Thousands								3 Months Ended	21 Months Ended	36 Months Ended		48 Months Ended
	Jan. 01, 2018	Jan. 01, 2017	Dec. 31, 2013	Jul. 01, 2012	Dec. 31, 2010	Dec. 31, 2009	Jan. 31, 2001	Mar. 31, 2019	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2013	Dec. 31, 2017	Dec. 31, 2013	Dec. 31, 2018
Effects of Reinsurance [Line Items]
Reinsurance recoverables								$ 36,106,323						$ 34,682,127
PAR U
Effects of Reinsurance [Line Items]
Reinsurance recoverables								11,680,401						11,444,032
PURC
Effects of Reinsurance [Line Items]
Reinsurance recoverables								4,211,368						4,127,455
PARCC
Effects of Reinsurance [Line Items]
Reinsurance recoverables								2,484,194						2,527,690
GUL Re
Effects of Reinsurance [Line Items]
Reinsurance recoverables								2,044,196						2,017,810
PAR Term
Effects of Reinsurance [Line Items]
Reinsurance recoverables								1,691,610						1,678,745
Prudential of Taiwan
Effects of Reinsurance [Line Items]
Reinsurance recoverables								1,424,669						1,414,669
Term Re
Effects of Reinsurance [Line Items]
Reinsurance recoverables								1,347,453						1,259,141
Prudential Insurance
Effects of Reinsurance [Line Items]
Reinsurance recoverables								1,355,025						1,226,917
DART
Effects of Reinsurance [Line Items]
Reinsurance recoverables								168,676						$ 119,946
Union Hamilton Reinsurance, Ltd.
Effects of Reinsurance [Line Items]
Reinsurance recoverables								$ 3,100,000
Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage									50.00%
Affiliated Entity | PAR U
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage				95.00%	70.00%
Affiliated Entity | PURC
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage										95.00%	70.00%
Affiliated Entity | PARCC
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage						90.00%
Affiliated Entity | GUL Re
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage		95.00%	30.00%
Affiliated Entity | PAR Term
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage													95.00%
Affiliated Entity | Prudential of Taiwan
Effects of Reinsurance [Line Items]
Related Party Transaction, Term							2 years
Affiliated Entity | Term Re
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage												95.00%
Affiliated Entity | Prudential Insurance
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage								100.00%
Affiliated Entity | DART
Effects of Reinsurance [Line Items]
Reinsurance Retention Policy, Reinsured Risk, Percentage	95.00%

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Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance		$ (28,296)
Income tax benefit (expense)		(33,633)	$ 30,700
Cumulative effect of adoption				$ (27)
Ending Balance		104,205
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance		(17,448)	(234)
Change in OCI before reclassifications		6,049	(923)
Amounts reclassified from AOCI		0	0
Income tax benefit (expense)		(19)	194
Ending Balance		(11,418)	(1,013)
Net unrealized investment gains (losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance		(10,848)	165,580
Change in OCI before reclassifications		156,295	(145,541)
Amounts reclassified from AOCI		3,790	490
Income tax benefit (expense)		(33,614)	30,506
Ending Balance		115,623	79,945
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance		(28,296)	165,346
Change in OCI before reclassifications		162,344	(146,464)
Amounts reclassified from AOCI		3,790	490
Income tax benefit (expense)		(33,633)	30,700
Cumulative effect of adoption	[1]	0
Ending Balance		104,205	78,932
ASU 2016-01 | Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			0
ASU 2016-01 | Net unrealized investment gains (losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			(1,539)
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			(1,539)
ASU 2018-02 | Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			(50)
ASU 2018-02 | Net unrealized investment gains (losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			30,449
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cumulative effect of adoption			30,399
Cash flow hedges | Net unrealized investment gains (losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance		(18,000)	41,000
Ending Balance		$ 15,000	$ 1,000

[1] (1)Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2.

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Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net unrealized investment gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	$ 3,790	$ 490
Total reclassifications for the period
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	3,790	490
Amounts reclassified from AOCI | Net unrealized investment gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	(3,790)	(490)
Amounts reclassified from AOCI | Total reclassifications for the period
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from AOCI	(3,790)	(490)
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net unrealized investment gains (losses)	(4,184)	(809)
Amounts reclassified from AOCI | Currency/Interest rate | Cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net unrealized investment gains (losses)	$ 394	$ 319

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Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ (28,296)
Ending Balance	104,205
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(10,848)
Ending Balance	115,623
OTTI | Net Unrealized Gains (Losses) on Investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(689)
Net investment gains (losses) on investments arising during the period	573
Reclassification adjustment for (gains) losses included in net income	(85)
Reclassification adjustment for OTTI (gains) losses excluded from net income	(207)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	(408)
OTTI | Deferred Policy Acquisition Costs and Other Costs
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(152)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	110
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	(42)
OTTI | Future Policy Benefits and Policyholders’ Account Balances
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	37
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(65)
Ending Balance	(28)
OTTI | Deferred Income Tax (Liability) Benefit
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(192)
Net investment gains (losses) on investments arising during the period	(120)
Reclassification adjustment for (gains) losses included in net income	18
Reclassification adjustment for OTTI (gains) losses excluded from net income	43
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	(23)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	14
Ending Balance	(260)
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(996)
Net investment gains (losses) on investments arising during the period	453
Reclassification adjustment for (gains) losses included in net income	(67)
Reclassification adjustment for OTTI (gains) losses excluded from net income	(164)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	87
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(51)
Ending Balance	$ (738)

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Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ (28,296)
Ending Balance	104,205
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(10,848)
Ending Balance	115,623
All Other | Net Unrealized Gains (Losses) on Investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(16,632)
Net investment gains (losses) on investments arising during the period	174,288
Reclassification adjustment for (gains) losses included in net income	3,875
Reclassification adjustment for OTTI (gains) losses excluded from net income	207
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	161,738
All Other | Deferred Policy Acquisition Costs and Other Costs
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(65,743)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	141,369
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	0
Ending Balance	75,626
All Other | Future Policy Benefits and Policyholders’ Account Balances
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	68,005
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Reclassification adjustment for OTTI (gains) losses excluded from net income	0
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	0
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(159,980)
Ending Balance	(91,975)
All Other | Deferred Income Tax (Liability) Benefit
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	4,518
Net investment gains (losses) on investments arising during the period	(36,596)
Reclassification adjustment for (gains) losses included in net income	(814)
Reclassification adjustment for OTTI (gains) losses excluded from net income	(43)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	(29,684)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	33,591
Ending Balance	(29,028)
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(9,852)
Net investment gains (losses) on investments arising during the period	137,692
Reclassification adjustment for (gains) losses included in net income	3,061
Reclassification adjustment for OTTI (gains) losses excluded from net income	164
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs	111,685
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances	(126,389)
Ending Balance	$ 116,361

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Related Party Transactions (Narrative) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) policy	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Related Party Transaction [Line Items]
Commissions and fees	$ 139,189,000	$ 129,155,000
Other invested assets	358,288,000		$ 377,429,000
Net investment income	93,250,000	77,915,000
Fee income from revenue sharing agreement	3,657,000	3,473,000
Debt Outstanding	0		0
Contributed Capital	0
Dividends	0		0
Prudential Insurance
Related Party Transaction [Line Items]
Contributed Capital		6,000,000
Prudential Insurance
Related Party Transaction [Line Items]
Stock option program plan expense	100,000	200,000
Deferred compensation program expense	3,000,000	2,000,000
Pension plan expense	5,000,000	6,000,000
Welfare plan expense	$ 6,000,000	7,000,000
Defined contribution plan, employer matching contribution, percent (up to)	4.00%
Defined contribution plan, cost recognized	$ 2,000,000	3,000,000
Number of Corporate Owned Life Insurance policies sold | policy	5
Prudential Insurance and Prudential Financial
Related Party Transaction [Line Items]
Life Insurance, Corporate or Bank Owned, amount	$ 4,014,000,000		3,631,000,000
Fees related to Life Insurance, Corporate or Bank Owned, amount	13,000,000	12,000,000
Maximum amount of mortality risk	3,500,000
Prudential Financial
Related Party Transaction [Line Items]
Company's share of corporate expenses	$ 17,000,000	18,000,000
Number of Corporate Owned Life Insurance policies sold | policy	1
Affiliated Entity
Related Party Transaction [Line Items]
Accrued interest receivable related to long-tern notes receivable	$ 600,000		1,000,000
Revenues related to long-term notes receivable	1,000,000	1,000,000
Line of credit facility, maximum borrowing capacity	2,200,000,000
Interest expense related to loans payable	200,000	100,000
Affiliated Entity | PAD
Related Party Transaction [Line Items]
Commissions and fees	179,000,000	175,000,000
Affiliated Entity | ASTISI and PGIM Investments
Related Party Transaction [Line Items]
Fee income from revenue sharing agreement	81,000,000	84,000,000
Affiliated Entity | PGIM Investments
Related Party Transaction [Line Items]
Fee income from revenue sharing agreement	2,000,000	2,000,000
Affiliated Entity | PGIM
Related Party Transaction [Line Items]
Net investment income	3,000,000	3,000,000
Prudential Financial Joint Ventures
Related Party Transaction [Line Items]
Other invested assets	96,000,000		$ 88,000,000
Net investment income	$ 5,000,000	$ 100,000

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Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Total notes receivable - affiliated	$ 128,479	$ 134,642
U.S. dollar floating rate notes
Related Party Transaction [Line Items]
Total notes receivable - affiliated	$ 0	6,502
U.S. dollar floating rate notes | Minimum
Related Party Transaction [Line Items]
Interest Rates	4.02%
U.S. dollar floating rate notes | Maximum
Related Party Transaction [Line Items]
Interest Rates	4.23%
U.S. Dollar fixed rate notes
Related Party Transaction [Line Items]
Total notes receivable - affiliated	$ 128,479	$ 128,140
U.S. Dollar fixed rate notes | Minimum
Related Party Transaction [Line Items]
Interest Rates	0.00%
U.S. Dollar fixed rate notes | Maximum
Related Party Transaction [Line Items]
Interest Rates	14.85%

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Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Related Party Transaction [Line Items]
Realized investment gains (losses)	$ (48,635)	$ (49,042)
Affiliated Entity | DART January 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	21,457
Book Value	21,457
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | PALAC2 April 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	64,313
Book Value	64,313
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | GULRe4 May 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	87,486
Book Value	87,486
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | GULRe5 May 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	37,921
Book Value	37,921
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	0
Affiliated Entity | PruRealtySecurities Nov 2018 Purchase
Related Party Transaction [Line Items]
Fair Value	3,259
Book Value	3,425
APIC, Net of Tax Increase/(Decrease)	0
Realized investment gains (losses)	(167)
Affiliated Entity | PrudentialInsuranceFeb2019 Sale
Related Party Transaction [Line Items]
Fair Value	4,995
Book Value	5,000
APIC, Net of Tax Increase/(Decrease)	(4)
Realized investment gains (losses)	$ 0

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Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Jul. 31, 2017
Commitments and Contingent Liabilities [Line Items]
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than)	$ 100
Indonesia
Commitments and Contingent Liabilities [Line Items]
Joint Venture with CT Corp, Ownership Percentage			49.00%
Commitments | Commercial Mortgage Loans
Commitments and Contingent Liabilities [Line Items]
Total outstanding mortgage loan commitments	40	$ 14
Commitments | Investments
Commitments and Contingent Liabilities [Line Items]
Commitments to Purchase Investment (excluding Commercial Mortgage Loans)	$ 276	$ 257

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Revision to Prior Year Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES
Policy charges and fee income	$ 139,189	$ 129,155
TOTAL REVENUES	222,412	188,712
BENEFITS AND EXPENSES
Policyholders’ benefits	39,478	51,736
Amortization of deferred policy acquisition costs	19,179	26,145
TOTAL BENEFITS AND EXPENSES	150,798	179,469
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	71,614	9,243
Income tax expense (benefit)	(16,880)	(2,699)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE	88,494	11,942
Net income (loss)	87,788	11,304
COMPREHENSIVE INCOME (LOSS)	220,289	(103,970)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	87,788	11,304
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	87,788	11,304
Policy charges and fee income	(28,634)	(23,697)
Future policy benefits	437,726	508,412
Reinsurance recoverables	(423,868)	(424,467)
Deferred policy acquisition costs	(74,610)	(45,642)
Income taxes	(16,996)	(2,902)
Other, net	(83,032)	(97,354)
Cash flows from (used in) operating activities	27,984	(7,769)
As previously reported
REVENUES
Policy charges and fee income		125,896
TOTAL REVENUES		185,453
BENEFITS AND EXPENSES
Policyholders’ benefits		48,955
Amortization of deferred policy acquisition costs		26,604
TOTAL BENEFITS AND EXPENSES		177,147
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE		8,306
Income tax expense (benefit)		(2,448)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE		10,754
Net income (loss)		10,116
COMPREHENSIVE INCOME (LOSS)		(105,158)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		10,116
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		10,116
Policy charges and fee income		(24,173)
Future policy benefits		511,380
Reinsurance recoverables		(430,215)
Deferred policy acquisition costs		(45,184)
Income taxes		(2,651)
Other, net		(93,619)
Cash flows from (used in) operating activities		(7,769)
Revision
REVENUES
Policy charges and fee income		3,259
TOTAL REVENUES		3,259
BENEFITS AND EXPENSES
Policyholders’ benefits		2,781
Amortization of deferred policy acquisition costs		(459)
TOTAL BENEFITS AND EXPENSES		2,322
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE		937
Income tax expense (benefit)		(251)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE		1,188
Net income (loss)		1,188
COMPREHENSIVE INCOME (LOSS)		1,188
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		1,188
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		1,188
Policy charges and fee income		476
Future policy benefits		(2,968)
Reinsurance recoverables		5,748
Deferred policy acquisition costs		(458)
Income taxes		(251)
Other, net		(3,735)
Cash flows from (used in) operating activities		0
Retained Earnings
BENEFITS AND EXPENSES
Net income (loss)	87,788	11,304
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	1,612,435	1,526,310
Net income (loss)	87,788	11,304
Ending Balance	1,699,109	1,515,151
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	87,788	11,304
Retained Earnings | As previously reported
BENEFITS AND EXPENSES
Net income (loss)		10,116
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance		1,511,698
Net income (loss)		10,116
Ending Balance		1,499,351
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		10,116
Retained Earnings | Revision
BENEFITS AND EXPENSES
Net income (loss)		1,188
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance		14,612
Net income (loss)		1,188
Ending Balance		15,800
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		1,188
Total Equity
BENEFITS AND EXPENSES
Net income (loss)	87,788	11,304
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	2,733,231	2,835,248
Net income (loss)	87,788	11,304
Total comprehensive income (loss)	220,289	(103,970)
Ending Balance	2,952,402	2,743,175
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 87,788	11,304
Total Equity | As previously reported
BENEFITS AND EXPENSES
Net income (loss)		10,116
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance		2,820,636
Net income (loss)		10,116
Total comprehensive income (loss)		(105,158)
Ending Balance		2,727,375
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		10,116
Total Equity | Revision
BENEFITS AND EXPENSES
Net income (loss)		1,188
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance		14,612
Net income (loss)		1,188
Total comprehensive income (loss)		1,188
Ending Balance		15,800
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ 1,188