As filed with the SEC on April 10, 2015 .
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Registration No. 033-20000
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Registration No. 811-05466
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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_____________
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FORM N-6
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FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
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Post-Effective Amendment No. 38
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REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
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Amendment No. 64
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_____________
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THE PRUDENTIAL VARIABLE
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APPRECIABLE ACCOUNT
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(Exact Name of Registrant)
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THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
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(Name of Depositor)
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751 Broad Street
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Newark, New Jersey 07102
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(800) 778-2255
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(Address and telephone number of principal executive offices)
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_____________
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Jordan K. Thomsen
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Vice President and Corporate Counsel
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The Prudential Insurance Company of America
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213 Washington Street
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Newark, New Jersey 07102
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(Name and address of agent for service)
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Copy to:
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Christopher E. Palmer, Esq.
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Goodwin Procter LLP
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901 New York Avenue, N.W.
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Washington, D.C. 20001
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_____________
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It is proposed that this filing will become effective (check appropriate space):
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□ immediately upon filing pursuant to paragraph (b) of Rule 485
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■ on May 1, 2015 pursuant to paragraph (b) of Rule 485
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(date)
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□ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
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□ on ______________ pursuant to paragraph (a)(1) of Rule 485
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(date)
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■ This Post-Effective Amendment designates a new effective date for a previously filed Post-Effective Amendment.
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PART A:
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INFORMATION REQUIRED IN THE PROSPECTUS
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·
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Invest your Contract’s premiums and its earnings in one or more of the available Variable Investment Options of The Prudential Variable Appreciable Account (the “Account”), each of which invests in a corresponding Portfolio of The Prudential Series Fund (the “Series Fund”):
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· PSF Conservative Balanced
· PSF Diversified Bond
· PSF Equity
· PSF Flexible Managed
· PSF Global
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· PSF Government Income
· PSF High Yield Bond
· PSF Jennison
· PSF Money Market
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· PSF Natural Resources
· PSF Small Capitalization Stock
· PSF Stock Index
· PSF Value
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·
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Invest in the Fixed Rate Option, also referred to as “fixed investment option,” which pays a guaranteed interest rate.
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·
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Invest in The Prudential Variable Contract Real Property Account (the “Real Property Account”).
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SUMMARY OF CHARGES AND EXPENSES
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1
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SUMMARY OF THE CONTRACT AND CONTRACT BENEFITS
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4
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SUMMARY OF CONTRACT RISKS
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7
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SUMMARY OF RISKS ASSOCIATED WITH THE VARIABLE INVESTMENT OPTIONS
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10
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GENERAL DESCRIPTIONS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, THE REGISTRANT, AND THE SERIES FUND
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11
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CHARGES AND EXPENSES
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15
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PERSONS HAVING RIGHTS UNDER THE CONTRACT
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19
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OTHER GENERAL CONTRACT PROVISIONS
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19
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RIDERS
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20
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REQUIREMENTS FOR ISSUANCE OF A CONTRACT
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21
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PREMIUMS
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21
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DEATH BENEFITS
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24
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CONTRACT VALUES
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27
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LAPSE AND REINSTATEMENT
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30
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TAXES
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31
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DISTRIBUTION AND COMPENSATION
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33
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LEGAL PROCEEDINGS
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34
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FINANCIAL STATEMENTS
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35
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ADDITIONAL INFORMATION
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35
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DEFINITIONS OF SPECIAL TERMS USED IN THIS PROSPECTUS
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36
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PSF Conservative Balanced Portfolio
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Appendix 1
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PSF Diversified Bond Portfolio
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Appendix 2
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PSF Equity Portfolio
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Appendix 3
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PSF Flexible Managed Portfolio
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Appendix 4
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PSF Global Portfolio
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Appendix 5
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PSF Government Income Portfolio
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Appendix 6
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PSF High Yield Bond Portfolio
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Appendix 7
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PSF Jennison Portfolio
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Appendix 8
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PSF Money Market Portfolio
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Appendix 9
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PSF Natural Resources Portfolio
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Appendix 10
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PSF Small Capitalization Stock Portfolio
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Appendix 11
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PSF Stock Index Portfolio
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Appendix 12
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PSF Value Portfolio
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Appendix 13
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Prudential Variable Contract Real Property Account
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Appendix 14
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Charge
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When Charge is Deducted
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Amount Deducted
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Taxes Attributable to Premiums(1)
(Varies by state and locality.)
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Deducted from premium payments.
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0% to 14.85%(3)
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Administrative fee
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Deducted from premium payments.
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$2
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Maximum Sales Charge on Premiums (Load)(2)
(Charge is a percentage of the primary annual premium.)
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Monthly
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0.5%
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Contingent Deferred Sales Charge (Load)(2)
(Charge is a percentage of the primary annual premium.)
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Upon lapse, surrender or decrease in the Face Amount.
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50%
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Surrender fee per $1,000 of Coverage Amount(2)
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Upon lapse, surrender or decrease in the Face Amount.
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$5
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Withdrawal fee
(Charge is based on the withdrawal amount.)
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Upon withdrawal.
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The lesser of $15 and 2%
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Face Amount Change fee
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When there is a change in the Face Amount.
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$15
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Living Needs Benefit Rider fee
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When the benefit is paid.
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$150
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(1)
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For these purposes, “taxes attributable to premiums” shall include any federal, state or local income, premium, excise, business, or any other type of tax (or component thereof) measured by or based upon the amount of premium received by Prudential.
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(2)
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Duration of charge is limited. See CHARGES AND EXPENSES.
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(3)
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The most common charge for taxes attributable to premiums is 3.25%.
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Periodic Contract and Optional Rider Charges Other Than The Series Fund's Operating Expenses
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Charge
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When Charge is Deducted
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Amount Deducted
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Cost of Insurance (“COI”) for the Face Amount.(1)(2)
Minimum and Maximum Charges per $1,000 of the net amount at risk.
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Initial COI for a representative Contract Owner, male age 30 in the Preferred underwriting class, no riders.
(Charge per $1,000 of the net amount at risk.)
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Monthly
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From $0.06 to $83.34
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$0.121(3)
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Mortality and Expense Risk fee
(Effective annual rate calculated as a percentage of assets in the Variable Investment Options.)
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Daily
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0.9%(4)
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Additional Mortality fee for risk associated with certain occupation, avocation, or aviation risks.
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Monthly
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From $0.10 to $2.08(7)
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Fee for the Face Amount.
(A charge per $1,000 of Face Amount plus a flat fee.)
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Monthly
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$0.03 plus $3.00
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Fee for an increase to the Face Amount.
(Charge per $1,000 of increase in Face Amount.)
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Monthly
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$0.03
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Net interest on loans(6)
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Annually
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1.5%
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Guaranteed Death Benefit fee for the Face Amount or an increase to the Face Amount.
(Charge per $1,000 of the Face Amount or increase in the Face Amount.)
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Monthly
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$0.01
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Level Premium Term Rider(1)
Minimum and Maximum Charges
per $1,000 of rider coverage.
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Level Premium Term Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge per $1,000 of rider coverage.)
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Monthly
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From $0.03 to $27.00
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$0.15(3)
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Child Level Premium Term Rider(8)
(Charge per $1,000 of rider coverage.)
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Monthly
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$0.45
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Renewable Premium Term Rider(1)
Minimum and Maximum Charges
per $1,000 of coverage.
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Renewable Premium Term Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge per $1,000 of coverage.)
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Monthly
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From $0.02 to $55.08
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$0.13(3)
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Accidental Death Benefit Rider(1)
Minimum and Maximum Charges per $1,000 of coverage.
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Accidental Death Benefit Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge per $1,000 of coverage.)
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Monthly
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From $0.03 to $0.70
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$0.07(3)
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Option to Purchase Additional Insurance Rider(1)
Minimum and Maximum Charges
per $1,000 of additional insurance amount.
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Option to Purchase Additional Insurance Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge per $1,000 of additional insurance amount.)
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Monthly
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From $0.06 to $0.37
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$0.23(3)
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Waiver of Premium Rider(1)
Minimum and Maximum Charges
per $1,000 of coverage.
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Waiver of Premium Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge per $1,000 of coverage.)
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Monthly
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From $0.01 to $0.31
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$0.07(3)
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Applicant Waiver of Premium Rider(1)(5)
Minimum and Maximum Charges
(Charge is a percentage of the Contract's annual premium.)
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Applicant Waiver of Premium Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Charge is a percentage of the Contract's annual premium.)
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Monthly
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From 0.424% to 3.394%
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0.679%(3)
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Unscheduled Premium Benefit Rider(1)(5)
Minimum and Maximum Charges
(Calculated as a percentage of the current unscheduled premium benefit amount.)
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Unscheduled Premium Benefit Rider fee for a representative Contract Owner, male age 30 in the Preferred underwriting class.
(Calculated as a percentage of the current unscheduled premium benefit amount.)
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Monthly
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From 0.38% to 1.14%
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0.42%(3)
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(1)
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The charge varies based on the individual characteristics of the insured, including such characteristics as: age, sex, and underwriting class. The charges given are representative for issues after 1997. Other rates may apply to earlier issues.
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(2)
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For example, the highest COI rate is for an insured who is a male/female age 99.
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(3)
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The charge shown in the table may not be representative of the charge that a particular Contract Owner will pay. You may obtain more information about the particular COI charges that apply to you by contacting your Prudential representative.
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(4)
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The daily charge is based on the effective annual rate shown.
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(5)
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The cost of this rider will provide for an additional benefit amount, above the amount for the Waiver of Premium Rider. The percentage varies based on underwriting class. For the Applicant Waiver of Premium Rider, the charge may not be less than $0.15 per $1,000 of Face Amount.
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(6)
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The net interest on loans reflects the net difference between a loan with an effective annual interest rate of 5.5% and an effective annual interest credited equal to 4%. A loan with a variable loan interest rate may be charged a lower effective annual interest rate. See Loans.
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(7)
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The amount and duration of the charge will vary based on individual circumstances including Issue Age, type of risk, and the frequency of exposure to the risk, and is charged per $1,000 of Face Amount.
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(8)
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Duration of the charge is limited. See CHARGES AND EXPENSES.
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Total Annual Fund Operating Expenses(1)
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Minimum
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Maximum
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(Expenses that are deducted from the Fund’s assets, including management fees, any distribution [and/or service] (12b-1) fees, and other expenses, but not including reductions for any fee waiver or other reimbursements.)
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0.37%
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0.82%
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(1)
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Total Annual operating expense for Real Property Partnership is 8.15 %.
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We guarantee that if the Scheduled Premiums are paid when due, or received within 61 days after the Scheduled Premiums are due (or missed premiums are paid later with interest), the Contract will not lapse because of unfavorable investment performance, and the least amount we will pay upon the death of the insured is the Face Amount of insurance.
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If all premiums are not paid when due (or not made up later with interest), the Contract will still not lapse as long as the Contract Fund is higher than a stated amount set forth in the Contract. This amount is called the “Tabular Contract Fund”, and it increases each month. In later years it becomes quite high. The Contract lapses when the Contract Fund falls below this stated amount, rather than when it drops to zero. This means that when a Variable Appreciable Life Contract lapses, it may still have considerable value and you may have a substantial incentive to reinstate it. If you choose otherwise, you may take, in one form or another, the Cash Surrender Value. See LAPSE AND REINSTATEMENT.
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The initial amount is payable from the time you purchase your Contract until the Contract Anniversary immediately following your 65th birthday or the Contract's seventh anniversary, whichever is later (the “Premium Change Date”);
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The guaranteed maximum amount payable after the Premium Change Date. See PREMIUMS.
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Variable Investment Option
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Investment Objective Summary
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Subadviser
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Prudential Series Fund – Class 1 Shares
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PSF Conservative Balanced Portfolio
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Seeks total investment return consistent with a conservatively managed diversified portfolio.
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Prudential Investment Management, Inc.; Quantitative Management Associates, LLC
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PSF Diversified Bond Portfolio
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Seeks a high level of income over a longer term while providing reasonable safety of capital.
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Prudential Investment Management, Inc.
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PSF Equity Portfolio
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Seeks long-term growth of capital.
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Jennison Associates LLC
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PSF Flexible Managed Portfolio
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Seeks total return consistent with an aggressively managed diversified portfolio.
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Prudential Investment Management, Inc.; Quantitative Management Associates, LLC
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Variable Investment Option | Investment Objective Summary | Subadviser | ||
PSF Global Portfolio
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Seeks long-term growth of capital.
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Brown Advisory LLC;
LSV Asset Management; T. Rowe Price Associates, Inc.; Quantitative Management Associates LLC; William Blair & Company, LLC
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PSF Government Income Portfolio
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Seeks a high level of income over the long term consistent with the preservation of capital.
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Prudential Investment Management, Inc.
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PSF High Yield Bond Portfolio
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Seeks high total return.
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Prudential Investment Management, Inc.
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PSF Jennison Portfolio
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Seeks long-term growth of capital.
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Jennison Associates LLC
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PSF Money Market Portfolio
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Seeks maximum current income that is consistent with the stability of capital and the maintenance of liquidity.
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Prudential Investment Management, Inc.
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PSF Natural Resources Portfolio
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Seeks long-term growth of capital.
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Jennison Associates LLC
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PSF Small Capitalization Stock Portfolio
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Seeks long-term growth of capital.
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Quantitative Management Associates, LLC
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PSF Stock Index Portfolio
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Seeks investment results that generally correspond to the performance of publicly-traded common stocks.
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Quantitative Management Associates, LLC
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PSF Value Portfolio
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Seeks capital appreciation.
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Jennison Associates LLC
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(1)
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changes in state insurance law;
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(2)
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changes in federal income tax law;
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(3)
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changes in the investment management of any Variable Investment Option; or
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(4)
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differences between voting instructions given by variable life insurance and variable annuity Contract Owners.
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(a)
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We deduct an administrative charge based on the Face Amount of insurance. This charge is intended to compensate us for things like processing claims, keeping records, and communicating with Contract Owners. We deduct $3 per Contract and up to $0.03 per $1,000 of the Face Amount of insurance. This charge also applies to increases in the Face Amount of insurance. Thus, for a Contract with a $75,000 Face Amount of insurance, the charge is $3 plus $2.25 for a total of $5.25 per month. The current charge for Contracts with Face Amounts greater than $100,000 is lower. The $0.03 per $1,000 of the Face Amount of insurance is reduced to $0.01 per $1,000 for that portion of the Face Amount that exceeds $100,000 and will not exceed $12.
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(b)
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We also deduct a charge of $0.01 per $1,000 of the Face Amount of insurance (excluding the automatic increase under Contracts issued on insureds of 14 years of age or less). We deduct this charge for the risk we assume by guaranteeing that, no matter how unfavorable investment experience may be, the Death Benefit will never be less than the guaranteed minimum Death Benefit, so long as Scheduled Premiums are paid on or before the due date or during the grace period. This charge and the administrative charge described in (a) above may be calculated together.
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(c)
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You may add one or more riders to the Contract. Some riders are charged for separately. If you add such a rider to the basic Contract, additional charges will be deducted. See Riders.
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(d)
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If an insured is in a substandard risk classification (for example, a person with a health condition), additional charges will be deducted and the Scheduled Premium will be increased.
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Maximum Percentages for Surrender Charges
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Surrender,
Last Day of
Year No.
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Cumulative Scheduled Premiums Paid
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Cumulative
Sales Load Deducted from Contract Fund
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Contingent
Deferred Sales Load
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Total Sales Load
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Cumulative
Total Sales Load as Percentage of Scheduled Premiums Paid
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1
2
3
4
5
6
7
8
9
10
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$ 894.06
1,788.12
2,682.18
3,576.24
4,470.30
5,364.36
6,258.42
7,152.48
8,046.54
8,940.60
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$ 49.56
99.12
148.68
198.24
247.80
247.80
247.80
247.80
247.80
247.80
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$218.66
367.64
398.55
414.00
414.00
331.00
248.00
166.00
83.00
0.00
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$268.22
466.76
547.23
612.24
661.80
578.80
495.80
413.80
330.80
247.80
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30.00%
26.10%
20.40%
17.12%
14.80%
10.79%
7.92%
5.79%
4.11%
2.77%
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(a)
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We charge a transaction fee equal to the lesser of $15 or 2% of the withdrawal amount in connection with each withdrawal.
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(b)
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We may charge a transaction fee of up to $15 for any change in the Face Amount of insurance.
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(c)
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We charge a transaction fee of up to $150 for Living Needs Benefit payments.
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(1)
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the amount of the decrease must be at least $10,000;
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(2)
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the Face Amount of insurance after the decrease must be at least equal to the minimum Face Amount of insurance applicable to your Contract; and
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(3)
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if we ask you to do so, you must send us the Contract to be endorsed.
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(1)
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increases or decreases in the value of the Variable Investment Option[s];
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(2)
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increases or decreases in the value of the Real Property Account, if that option has been selected;
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(3)
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interest credited on any amounts allocated to the Fixed Rate Option; and
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(4)
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the daily asset charge for mortality and expense risks assessed against the Variable Investment Options.
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While a fixed rate loan is outstanding, the amount that was transferred will continue to be treated as part of the Contract Fund, but it will be credited with the assumed rate of return of 4% rather than with the actual rate of return of the applicable investment options.
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While a variable rate loan is outstanding, the amount that was transferred will continue to be treated as part of the Contract Fund, but it will be credited with a rate which is less than the variable loan interest rate for the Contract Year by no more than 1%, rather than with the actual rate of return of the applicable investment options. Currently, we credit such amounts at a rate that is 1% less than the loan interest rate for the Contract Year. If a loan remains outstanding at a time when we fixed a new rate, the new interest rate applies as of the next Contract Anniversary.
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(a)
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We must receive a request for the withdrawal in a form that meets our needs.
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(b)
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The Contract Fund after the withdrawal must not be less than the Tabular Contract Fund Value for the new Face Amount. (A Table of Tabular Contract Fund Values is included in the Contract; the values increase with each year the Contract remains in-force.)
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(c)
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The amount withdrawn may not be larger than an amount sufficient to reduce the Cash Surrender Value to zero.
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(d)
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The withdrawal amount must be at least $2,000 under a Form A Contract and at least $500 under a Form B Contract.
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(e)
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The Face Amount after withdrawals must be at least equal to the minimum Face Amount shown in the Contract.
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(f)
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You may make no more than four withdrawals in each Contract Year.
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Options on Lapse
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1.
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Fixed Extended Term Insurance. With two exceptions explained below, if you do not communicate at all with Prudential, life insurance coverage will continue for a length of time that depends on the Cash Surrender Value on the date of default (which reflects the deduction of the deferred sales load, administrative charges, and Contract Debt, if any), the amount of insurance, and the age and sex (except where unisex rates apply) of the insured. The insurance amount will be what it would have been on the date of default taking into account any Contract Debt on that date. The amount will not change while the insurance stays in-force. This benefit is known as extended term insurance. If you request, we will tell you in writing how long the insurance will be in effect. Extended term insurance has a Cash Surrender Value, but no loan value.
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2.
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Variable Reduced Paid-Up Insurance. Variable reduced paid-up insurance provides insurance coverage for the lifetime of the insured. The initial insurance amount will depend upon the Cash Surrender Value on the date of default (which reflects the deduction of the deferred sales load, administrative charges, and Contract Debt, if any), and the age and sex of the insured. This will be a new guaranteed minimum Death Benefit. Aside from this guarantee, the Cash Surrender Value and the amount of insurance will vary with investment performance in the same manner as the paid-up Contract described earlier. Variable reduced paid-up insurance has a loan privilege identical to that available on premium paying Contracts. See Loans. Acquisition of reduced paid-up insurance may result in your Contract becoming a Modified Endowment Contract. See Tax Treatment of Contract Benefits.
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3.
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Fixed Reduced Paid-Up Insurance. This insurance continues for the lifetime of the insured but at an insurance amount that is lower than that provided by fixed extended term insurance. It will increase in amount only if dividends are paid and it will decrease only if you take a Contract loan. Upon request, we will tell you what the amount of insurance will be. Fixed paid-up insurance has a Cash Surrender Value and a loan value both of which will gradually increase in value. It is possible for this Contract to be classified as a Modified Endowment Contract if this option is exercised. See Tax Treatment of Contract Benefits.
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·
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you will not be taxed on the growth of the funds in the Contract, unless you receive a distribution from the Contract, or if the Contract lapses or is surrendered, and
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·
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the Contract's Death Benefit will generally be income tax free to your beneficiary. However, your Death Benefit may be subject to estate taxes.
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·
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If you surrender the Contract or allow it to lapse, you will be taxed on the amount you receive in excess of the premiums you paid less the untaxed portion of any prior withdrawals. For this purpose, you will be treated as receiving any portion of the Cash Surrender Value used to repay Contract Debt. In other words, you will immediately have taxable income to the extent of gain in the Contract. Reinstatement of the Contract after lapse will not eliminate the taxable income, which we are required to report to the Internal Revenue Service. The tax consequences of a surrender may differ if you take the proceeds under an income payment settlement option.
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·
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Generally, you will be taxed on a withdrawal to the extent the amount you receive exceeds the premiums you paid for the Contract less the untaxed portion of any prior withdrawals. However, under some limited circumstances, in the first 15 Contract Years, all or a portion of a withdrawal may be taxed if the Contract Fund exceeds the total premiums paid less the untaxed portions of any prior withdrawals, even if total withdrawals do not exceed total premiums paid.
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·
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Extra premiums for optional benefits and riders generally do not count in computing the premiums paid for the Contract for the purposes of determining whether a withdrawal is taxable.
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·
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Loans you take against the Contract are ordinarily treated as debt and are not considered distributions subject to tax.
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·
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The rules change if the Contract is classified as a Modified Endowment Contract. The Contract could be classified as a Modified Endowment Contract if premiums substantially in excess of Scheduled Premiums are paid or a decrease in the Face Amount of insurance is made (or a rider removed). The addition of a rider or an increase in the Face Amount of insurance may also cause the Contract to be classified as a Modified Endowment Contract if a significant premium is paid in conjunction with an increase or the addition of a rider. We will notify you if a premium or a change in the Face Amount would cause the Contract to become a Modified Endowment Contract, and advise you of your options. You should first consult a tax adviser and your Prudential representative if you are contemplating any of these steps.
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·
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If the Contract is classified as a Modified Endowment Contract, then amounts you receive under the Contract before the insured's death, including loans and withdrawals, are included in income to the extent that the Contract Fund before surrender charges exceeds the premiums paid for the Contract increased by the amount of any loans previously included in income and reduced by any untaxed amounts previously received other than the amount of any loans excludible from income. An assignment of a Modified Endowment Contract is taxable in the same way. These rules also apply to pre-death distributions, including loans and assignments, made during the two-year period before the time that the Contract became a Modified Endowment Contract.
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·
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Any taxable income on pre-death distributions (including full surrenders) is subject to a penalty of 10 percent unless the amount is received on or after age 59½, on account of your becoming disabled or as a life annuity. It is presently unclear how the penalty tax provisions apply to Contracts owned by businesses.
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·
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All Modified Endowment Contracts issued by us to you during the same calendar year are treated as a single Contract for purposes of applying these rules.
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PART B:
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INFORMATION REQUIRED IN THE STATEMENT OF ADDITIONAL INFORMATION
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GENERAL INFORMATION AND HISTORY
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1
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Description of The Prudential Insurance Company of America
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1
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Control of The Prudential Insurance Company of America
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1
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State Regulation
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1
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Records
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1
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Services and Third Party Administration Agreements
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1
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Cyber Security | 1 |
INITIAL PREMIUM PROCESSING
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2
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ADDITIONAL INFORMATION ABOUT OPERATION OF CONTRACTS
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3
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Legal Considerations Relating to Sex-Distinct Premiums and Benefits
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3
|
Sales to Persons 14 Years of Age or Younger
|
3
|
How a Form A (Level) Contract's Death Benefit Will Vary
|
3
|
How a Form B (Variable) Contract's Death Benefit Will Vary
|
4
|
Paying Premiums by Payroll Deduction
|
5
|
Reports to Contract Owners
|
5
|
UNDERWRITING PROCEDURES
|
5
|
ADDITIONAL INFORMATION ABOUT CHARGES
|
5
|
Reduction of Charges for Concurrent Sales to Several Individuals
|
5
|
ADDITIONAL INFORMATION ABOUT CONTRACTS IN DEFAULT
|
6
|
DISTRIBUTION AND COMPENSATION
|
6
|
EXPERTS
|
8
|
PERFORMANCE DATA
|
8
|
Average Annual Total Return
|
8
|
Non-Standard Total Return
|
8
|
Money Market Yield
|
9
|
FINANCIAL STATEMENTS
|
9
|
(1)
|
the guaranteed minimum Death Benefit; and
|
(2)
|
the Contract Fund divided by the “net single premium” per $1 of Death Benefit at the insured's Attained Age on that date.
|
Male Attained Age
|
Net Single
Premium
|
Increase in Insurance
Amount Per $1
Increase in Contract
Fund
|
Female
Attained
Age
|
Net Single
Premium
|
Increase in Insurance
Amount Per $1
Increase in Contract
Fund
|
|
5
25
35
55
65
|
.09151
.17000
.23700
.45209
.59468
|
$10.93
$ 5.88
$ 4.22
$ 2.21
$ 1.68
|
5
25
35
55
65
|
.07919
.15112
.21127
.40090
.53639
|
$12.63
$ 6.62
$ 4.73
$ 2.49
$ 1.86
|
(1)
|
you paid only Scheduled Premiums;
|
(2)
|
you paid Scheduled Premiums when due;
|
(3)
|
your selected investment options earned a net return at a uniform rate of 4% per year;
|
(4)
|
we deducted full mortality charges based upon the 1980 CSO Table;
|
(5)
|
we deducted maximum sales load and expense charges; and
|
(6)
|
there was no Contract Debt.
|
(1)
|
investment results are greater than a 4% net return;
|
(2)
|
payments are made that are more than the Scheduled Premiums; or
|
(3)
|
smaller than maximum charges are assessed.
|
(1)
|
the Face Amount plus the Contract Fund minus the Tabular Contract Fund Value;
|
(2)
|
the guaranteed minimum Death Benefit; and
|
(3)
|
the Contract Fund divided by the net single premium per $1 of Death Benefit at the insured's Attained Age on that date.
|
(1)
|
the number of individuals;
|
(2)
|
the total amount of premium payments expected to be received from these Contracts;
|
(3)
|
the nature of the association between these individuals, and the expected persistency of the individual Contracts;
|
(4)
|
the purpose for which the individual Contracts are purchased and whether that purpose makes it likely that expenses will be reduced; and
|
(5)
|
any other circumstances which Prudential believes to be relevant in determining whether reduced sales or administrative expenses may be expected.
|
SUBACCOUNTS
|
||||||||||||||||||||
Prudential
Money Market
Portfolio
|
Prudential
Diversified Bond
Portfolio
|
Prudential Equity
Portfolio
|
Prudential
Flexible
Managed
Portfolio
|
Prudential
Conservative
Balanced
Portfolio
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Investment in the portfolios, at fair value
|
$
|
118,104,822
|
|
$
|
245,338,406
|
|
$
|
1,806,898,064
|
|
$
|
1,431,322,507
|
|
$
|
1,122,355,554
|
|
|||||
Net Assets
|
$
|
118,104,822
|
|
$
|
245,338,406
|
|
$
|
1,806,898,064
|
|
$
|
1,431,322,507
|
|
$
|
1,122,355,554
|
|
|||||
NET ASSETS, representing:
|
||||||||||||||||||||
Accumulation units
|
$
|
118,104,822
|
|
$
|
245,338,406
|
|
$
|
1,806,898,064
|
|
$
|
1,431,322,507
|
|
$
|
1,122,355,554
|
|
|||||
$
|
118,104,822
|
|
$
|
245,338,406
|
|
$
|
1,806,898,064
|
|
$
|
1,431,322,507
|
|
$
|
1,122,355,554
|
|
||||||
Units outstanding
|
58,424,233
|
|
46,801,675
|
|
188,845,212
|
|
207,264,159
|
|
200,998,648
|
|
||||||||||
Portfolio shares held
|
11,810,482
|
|
21,041,030
|
|
46,859,390
|
|
60,367,883
|
|
49,993,566
|
|
||||||||||
Portfolio net asset value per share
|
$
|
10.00
|
|
$
|
11.66
|
|
$
|
38.56
|
|
$
|
23.71
|
|
$
|
22.45
|
|
|||||
Investment in portfolio shares, at cost
|
$
|
118,104,822
|
|
$
|
227,857,954
|
|
$
|
1,027,405,808
|
|
$
|
945,371,066
|
|
$
|
716,380,413
|
|
|||||
STATEMENTS OF OPERATIONS
For the year ended December 31, 2014
|
||||||||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||
Prudential
Money Market
Portfolio
|
Prudential
Diversified Bond
Portfolio
|
Prudential Equity
Portfolio
|
Prudential
Flexible
Managed
Portfolio
|
Prudential
Conservative
Balanced
Portfolio
|
||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
||||||||||||||||
INVESTMENT INCOME
|
||||||||||||||||||||
Dividend income
|
$
|
1,045
|
|
$
|
2,693,177
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|||||
EXPENSES
|
||||||||||||||||||||
Charges to contract owners for assuming mortality risk and expense risk and for administration
|
874,076
|
|
1,787,719
|
|
13,032,449
|
|
10,472,391
|
|
8,237,317
|
|
||||||||||
NET INVESTMENT INCOME (LOSS)
|
(873,031
|
)
|
905,458
|
|
(13,032,449
|
)
|
(10,472,391
|
)
|
(8,237,317
|
)
|
||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
|
||||||||||||||||||||
Capital gains distributions received
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||
Realized gain (loss) on shares redeemed
|
-
|
|
(25,637
|
)
|
26,157,475
|
|
14,735,561
|
|
13,510,565
|
|
||||||||||
Net change in unrealized gain (loss) on investments
|
-
|
|
14,058,690
|
|
105,612,083
|
|
130,472,465
|
|
78,514,378
|
|
||||||||||
NET GAIN (LOSS) ON
INVESTMENTS
|
-
|
|
14,033,053
|
|
131,769,558
|
|
145,208,026
|
|
92,024,943
|
|
||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
(873,031
|
)
|
$
|
14,938,511
|
|
$
|
118,737,109
|
|
$
|
134,735,635
|
|
$
|
83,787,626
|
|
|||||
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Prudential High
Yield Bond
Portfolio
|
Prudential Stock
Index Portfolio
|
Prudential
Value
Portfolio
|
Prudential
Natural
Resources
Portfolio
|
Prudential
Global Portfolio
|
Prudential
Government
Income
Portfolio
|
Prudential
Jennison
Portfolio
|
Prudential
Small
Capitalization
Stock Portfolio
|
|||||||||||||||||||||||
$
|
153,036,998
|
|
$
|
1,471,793,700
|
|
$
|
697,858,040
|
|
$
|
362,530,652
|
|
$
|
372,019,963
|
|
$
|
101,184,408
|
|
$
|
669,063,115
|
|
$
|
394,512,149
|
|
|||||||
$
|
153,036,998
|
|
$
|
1,471,793,700
|
|
$
|
697,858,040
|
|
$
|
362,530,652
|
|
$
|
372,019,963
|
|
$
|
101,184,408
|
|
$
|
669,063,115
|
|
$
|
394,512,149
|
|
|||||||
$
|
153,036,998
|
|
$
|
1,471,793,700
|
|
$
|
697,858,040
|
|
$
|
362,530,652
|
|
$
|
372,019,963
|
|
$
|
101,184,408
|
|
$
|
669,063,115
|
|
$
|
394,512,149
|
|
|||||||
$
|
153,036,998
|
|
$
|
1,471,793,700
|
|
$
|
697,858,040
|
|
$
|
362,530,652
|
|
$
|
372,019,963
|
|
$
|
101,184,408
|
|
$
|
669,063,115
|
|
$
|
394,512,149
|
|
|||||||
28,722,645
|
|
141,168,256
|
|
64,261,861
|
|
24,340,289
|
|
115,456,614
|
|
24,541,779
|
|
136,352,435
|
|
57,344,351
|
|
|||||||||||||||
29,948,532
|
|
29,835,672
|
|
26,354,156
|
|
12,136,949
|
|
14,464,229
|
|
8,488,625
|
|
16,378,534
|
|
14,309,472
|
|
|||||||||||||||
$
|
5.11
|
|
$
|
49.33
|
|
$
|
26.48
|
|
$
|
29.87
|
|
$
|
25.72
|
|
$
|
11.92
|
|
$
|
40.85
|
|
$
|
27.57
|
|
|||||||
$
|
147,545,441
|
|
$
|
674,809,797
|
|
$
|
429,380,434
|
|
$
|
236,930,939
|
|
$
|
233,520,051
|
|
$
|
96,259,972
|
|
$
|
302,689,987
|
|
$
|
200,444,457
|
|
|||||||
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Prudential High
Yield Bond
Portfolio
|
Prudential Stock
Index Portfolio
|
Prudential
Value
Portfolio
|
Prudential
Natural
Resources
Portfolio
|
Prudential
Global Portfolio
|
Prudential
Government
Income
Portfolio
|
Prudential
Jennison
Portfolio
|
Prudential
Small
Capitalization
Stock Portfolio
|
|||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
|||||||||||||||||||||||
$
|
9,562,201
|
|
$
|
42,379,947
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
359,237
|
|
$
|
-
|
|
$
|
-
|
|
|||||||
1,151,828
|
|
9,642,037
|
|
4,877,036
|
|
3,505,250
|
|
2,522,168
|
|
735,575
|
|
4,556,851
|
|
2,693,448
|
|
|||||||||||||||
8,410,373
|
|
32,737,910
|
|
(4,877,036
|
)
|
(3,505,250
|
)
|
(2,522,168
|
)
|
(376,338
|
)
|
(4,556,851
|
)
|
(2,693,448
|
)
|
|||||||||||||||
-
|
|
61,360,546
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
(137,139
|
)
|
9,392,444
|
|
8,466,155
|
|
4,351,353
|
|
3,101,628
|
|
(81,586
|
)
|
9,465,962
|
|
8,274,943
|
|
|||||||||||||||
(5,129,450
|
)
|
62,307,658
|
|
57,177,437
|
|
(94,196,519
|
)
|
8,878,723
|
|
5,494,520
|
|
52,259,231
|
|
11,842,742
|
|
|||||||||||||||
(5,266,589
|
)
|
133,060,648
|
|
65,643,592
|
|
(89,845,166
|
)
|
11,980,351
|
|
5,412,934
|
|
61,725,193
|
|
20,117,685
|
|
|||||||||||||||
$
|
3,143,784
|
|
$
|
165,798,558
|
|
$
|
60,766,556
|
|
$
|
(93,350,416
|
)
|
$
|
9,458,183
|
|
$
|
5,036,596
|
|
$
|
57,168,342
|
|
$
|
17,424,237
|
|
|||||||
SUBACCOUNTS
|
||||||||||||||||||||
T. Rowe Price
International
Stock Portfolio
|
Janus Aspen
Janus Portfolio –
Institutional
Shares
|
MFS®
Growth
Series –
Initial Class
|
VP Value
Fund –
Class I
|
|
Prudential SP
Small Cap
Value Portfolio
|
|||||||||||||||
ASSETS
|
|
|||||||||||||||||||
Investment in the portfolios, at
fair value
|
$
|
1,340,959
|
|
$
|
4,338,137
|
|
$
|
3,867,489
|
|
$
|
3,220,371
|
|
|
$
|
3,923,918
|
|
||||
|
||||||||||||||||||||
Net Assets
|
$
|
1,340,959
|
|
$
|
4,338,137
|
|
$
|
3,867,489
|
|
$
|
3,220,371
|
|
|
$
|
3,923,918
|
|
||||
|
||||||||||||||||||||
NET ASSETS, representing:
|
|
|||||||||||||||||||
Accumulation units
|
$
|
1,340,959
|
|
$
|
4,338,137
|
|
$
|
3,867,489
|
|
$
|
3,220,371
|
|
|
$
|
3,923,918
|
|
||||
|
||||||||||||||||||||
$
|
1,340,959
|
|
$
|
4,338,137
|
|
$
|
3,867,489
|
|
$
|
3,220,371
|
|
|
$
|
3,923,918
|
|
|||||
|
||||||||||||||||||||
Units outstanding
|
832,490
|
|
1,686,961
|
|
1,275,650
|
|
892,114
|
|
|
1,604,267
|
|
|||||||||
|
||||||||||||||||||||
Portfolio shares held
|
87,874
|
|
121,313
|
|
97,295
|
|
342,229
|
|
|
198,579
|
|
|||||||||
Portfolio net asset value per share
|
$
|
15.26
|
|
$
|
35.76
|
|
$
|
39.75
|
|
$
|
9.41
|
|
|
$
|
19.76
|
|
||||
Investment in portfolio shares,
at cost
|
$
|
890,576
|
|
$
|
2,015,264
|
|
$
|
1,613,629
|
|
$
|
1,897,200
|
|
|
$
|
1,776,623
|
|
||||
STATEMENTS OF OPERATIONS
For the year ended December 31, 2014
|
||||||||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||
T. Rowe Price
International
Stock Portfolio
|
Janus Aspen
Janus Portfolio –
Institutional
Shares
|
MFS®
Growth
Series –
Initial Class
|
VP Value
Fund –
Class I
|
|
Prudential SP
Small Cap
Value Portfolio
|
|||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
|
01/01/2014
to
12/31/2014
|
|||||||||||||||
INVESTMENT INCOME
|
|
|||||||||||||||||||
Dividend income
|
$
|
14,913
|
|
$
|
15,332
|
|
$
|
3,857
|
|
$
|
47,153
|
|
|
$
|
-
|
|
||||
|
||||||||||||||||||||
EXPENSES
|
|
|||||||||||||||||||
Charges to contract owners for
assuming mortality risk and expense
risk and for administration
|
8,532
|
|
31,749
|
|
22,342
|
|
18,295
|
|
|
34,914
|
|
|||||||||
|
||||||||||||||||||||
NET INVESTMENT INCOME (LOSS)
|
6,381
|
|
(16,417
|
)
|
(18,485
|
)
|
28,858
|
|
|
(34,914
|
)
|
|||||||||
|
||||||||||||||||||||
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
|
|
|||||||||||||||||||
Capital gains distributions received
|
7,895
|
|
301,143
|
|
246,107
|
|
-
|
|
|
-
|
|
|||||||||
Realized gain (loss) on shares redeemed
|
16,605
|
|
2,331,291
|
|
64,765
|
|
6,917
|
|
|
148,920
|
|
|||||||||
Net change in unrealized gain (loss) on investments
|
(55,328
|
)
|
(2,087,944
|
)
|
9,519
|
|
323,448
|
|
|
37,269
|
|
|||||||||
|
||||||||||||||||||||
NET GAIN (LOSS) ON
INVESTMENTS
|
(30,828
|
)
|
544,490
|
|
320,391
|
|
330,365
|
|
|
186,189
|
|
|||||||||
|
||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
(24,447
|
)
|
$
|
528,073
|
|
$
|
301,906
|
|
$
|
359,223
|
|
|
$
|
151,275
|
|
||||
|
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Janus Aspen
Janus Portfolio –
Service Shares
|
Prudential SP
Prudential
U.S. Emerging
Growth
Portfolio
|
Prudential SP
International
Growth
Portfolio
|
Prudential SP
International
Value
Portfolio
|
AST Loomis
Sayles
Large-Cap
Growth Portfolio
|
AST
T. Rowe Price
Large-Cap
Growth Portfolio
|
AST
Large-Cap
Value Portfolio
|
AST
Small-Cap
Growth Portfolio
|
|||||||||||||||||||||||
$
|
110,022
|
|
$
|
1,132,827
|
|
$
|
2,528,471
|
|
$
|
1,045,183
|
|
$
|
171,256
|
|
$
|
924,899
|
|
$
|
401,710
|
|
$
|
331,842
|
|
|||||||
$
|
110,022
|
|
$
|
1,132,827
|
|
$
|
2,528,471
|
|
$
|
1,045,183
|
|
$
|
171,256
|
|
$
|
924,899
|
|
$
|
401,710
|
|
$
|
331,842
|
|
|||||||
$
|
110,022
|
|
$
|
1,132,827
|
|
$
|
2,528,471
|
|
$
|
1,045,183
|
|
$
|
171,256
|
|
$
|
924,899
|
|
$
|
401,710
|
|
$
|
331,842
|
|
|||||||
$
|
110,022
|
|
$
|
1,132,827
|
|
$
|
2,528,471
|
|
$
|
1,045,183
|
|
$
|
171,256
|
|
$
|
924,899
|
|
$
|
401,710
|
|
$
|
331,842
|
|
|||||||
56,635
|
|
342,580
|
|
1,461,697
|
|
580,050
|
|
11,238
|
|
48,553
|
|
28,516
|
|
17,893
|
|
|||||||||||||||
3,125
|
|
95,517
|
|
425,668
|
|
139,917
|
|
5,307
|
|
41,420
|
|
17,783
|
|
10,435
|
|
|||||||||||||||
$
|
35.21
|
|
$
|
11.86
|
|
$
|
5.94
|
|
$
|
7.47
|
|
$
|
32.27
|
|
$
|
22.33
|
|
$
|
22.59
|
|
$
|
31.80
|
|
|||||||
$
|
45,809
|
|
$
|
554,326
|
|
$
|
1,675,304
|
|
$
|
726,984
|
|
$
|
85,580
|
|
$
|
560,696
|
|
$
|
160,583
|
|
$
|
147,242
|
|
|||||||
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Janus Aspen
Janus Portfolio –
Service Shares
|
Prudential SP
Prudential
U.S. Emerging
Growth
Portfolio
|
Prudential SP
International
Growth
Portfolio
|
Prudential SP
International
Value
Portfolio
|
AST Loomis
Sayles
Large-Cap
Growth Portfolio
|
AST
T. Rowe Price
Large-Cap
Growth Portfolio
|
AST
Large-Cap
Value Portfolio
|
AST
Small-Cap
Growth Portfolio
|
|||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
|||||||||||||||||||||||
$
|
410
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|||||||
1,835
|
|
9,677
|
|
23,453
|
|
9,788
|
|
1,432
|
|
7,237
|
|
3,309
|
|
2,610
|
|
|||||||||||||||
(1,425
|
)
|
(9,677
|
)
|
(23,453
|
)
|
(9,788
|
)
|
(1,432
|
)
|
(7,237
|
)
|
(3,309
|
)
|
(2,610
|
)
|
|||||||||||||||
15,536
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
61,099
|
|
115,517
|
|
22,487
|
|
64,097
|
|
20,389
|
|
14,308
|
|
24,967
|
|
37,552
|
|
|||||||||||||||
(50,957
|
)
|
(2,708
|
)
|
(180,013
|
)
|
(139,014
|
)
|
(1,012
|
)
|
54,129
|
|
27,776
|
|
(23,764
|
)
|
|||||||||||||||
25,678
|
|
112,809
|
|
(157,526
|
)
|
(74,917
|
)
|
19,377
|
|
68,437
|
|
52,743
|
|
13,788
|
|
|||||||||||||||
$
|
24,253
|
|
$
|
103,132
|
|
$
|
(180,979
|
)
|
$
|
(84,705
|
)
|
$
|
17,945
|
|
$
|
61,200
|
|
$
|
49,434
|
|
$
|
11,178
|
|
|||||||
SUBACCOUNTS
|
||||||||||||||||||||
AST
PIMCO Total
Return Bond
Portfolio
|
AST Wellington
Management
Hedged Equity
Portfolio
|
AST Balanced
Asset
Allocation
Portfolio
|
AST
Preservation
Asset Allocation
Portfolio
|
AST
BlackRock
Global Strategies
Portfolio
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Investment in the portfolios, at
fair value
|
$
|
5,576,128
|
|
$
|
1,667,400
|
|
$
|
1,477,648
|
|
$
|
421,971
|
|
$
|
1,096,498
|
|
|||||
Net Assets
|
$
|
5,576,128
|
|
$
|
1,667,400
|
|
$
|
1,477,648
|
|
$
|
421,971
|
|
$
|
1,096,498
|
|
|||||
NET ASSETS, representing:
|
||||||||||||||||||||
Accumulation units
|
$
|
5,576,128
|
|
$
|
1,667,400
|
|
$
|
1,477,648
|
|
$
|
421,971
|
|
$
|
1,096,498
|
|
|||||
$
|
5,576,128
|
|
$
|
1,667,400
|
|
$
|
1,477,648
|
|
$
|
421,971
|
|
$
|
1,096,498
|
|
||||||
Units outstanding
|
471,822
|
|
109,227
|
|
97,242
|
|
30,657
|
|
93,513
|
|
||||||||||
Portfolio shares held
|
435,295
|
|
131,810
|
|
100,520
|
|
30,314
|
|
91,375
|
|
||||||||||
Portfolio net asset value per share
|
$
|
12.81
|
|
$
|
12.65
|
|
$
|
14.70
|
|
$
|
13.92
|
|
$
|
12.00
|
|
|||||
Investment in portfolio shares,
at cost
|
$
|
5,106,800
|
|
$
|
1,085,185
|
|
$
|
1,026,604
|
|
$
|
325,540
|
|
$
|
910,096
|
|
|||||
STATEMENTS OF OPERATIONS
For the year ended December 31, 2014
|
||||||||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||
AST
PIMCO Total
Return Bond
Portfolio
|
AST Wellington
Management
Hedged Equity
Portfolio
|
AST Balanced
Asset
Allocation
Portfolio
|
AST
Preservation
Asset Allocation
Portfolio
|
AST
BlackRock
Global Strategies
Portfolio
|
||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
01/01/2014
to
12/31/2014
|
||||||||||||||||
INVESTMENT INCOME
|
||||||||||||||||||||
Dividend income
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|||||
EXPENSES
|
||||||||||||||||||||
Charges to contract owners for assuming mortality risk and expense
risk and for administration
|
49,012
|
|
14,252
|
|
11,857
|
|
3,251
|
|
9,251
|
|
||||||||||
NET INVESTMENT INCOME (LOSS)
|
(49,012
|
)
|
(14,252
|
)
|
(11,857
|
)
|
(3,251
|
)
|
(9,251
|
)
|
||||||||||
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
|
||||||||||||||||||||
Capital gains distributions received
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||
Realized gain (loss) on
shares redeemed
|
11,214
|
|
2,509
|
|
17,022
|
|
13,563
|
|
35,050
|
|
||||||||||
Net change in unrealized gain (loss) on investments
|
219,358
|
|
85,941
|
|
71,132
|
|
11,895
|
|
21,561
|
|
||||||||||
NET GAIN (LOSS) ON
INVESTMENTS
|
230,572
|
|
88,450
|
|
88,154
|
|
25,458
|
|
56,611
|
|
||||||||||
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS
|
$
|
181,560
|
|
$
|
74,198
|
|
$
|
76,297
|
|
$
|
22,207
|
|
$
|
47,360
|
|
|||||
SUBACCOUNTS
|
||||||||||||||||||||||||
Prudential Money Market
Portfolio
|
Prudential Diversified Bond
Portfolio
|
Prudential Equity
Portfolio
|
||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||
OPERATIONS
|
||||||||||||||||||||||||
Net investment income (loss)
|
$
|
(873,031
|
)
|
$
|
(913,934
|
)
|
$
|
905,458
|
|
$
|
8,113,656
|
|
$
|
(13,032,449
|
)
|
$
|
(11,384,648
|
)
|
||||||
Capital gains distributions received
|
-
|
|
-
|
|
-
|
|
7,082,447
|
|
-
|
|
-
|
|
||||||||||||
Realized gain (loss) on shares redeemed
|
-
|
|
-
|
|
(25,637
|
)
|
(645,582
|
)
|
26,157,475
|
|
14,047,094
|
|
||||||||||||
Net change in unrealized gain (loss) on investments
|
-
|
|
-
|
|
14,058,690
|
|
(18,280,669
|
)
|
105,612,083
|
|
433,960,733
|
|
||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
(873,031
|
)
|
(913,934
|
)
|
14,938,511
|
|
(3,730,148
|
)
|
118,737,109
|
|
436,623,179
|
|
||||||||||||
CONTRACT OWNER TRANSACTIONS
|
||||||||||||||||||||||||
Contract owner net payments
|
9,115,041
|
|
9,295,054
|
|
10,978,668
|
|
12,125,574
|
|
74,367,059
|
|
77,926,615
|
|
||||||||||||
Policy loans
|
(2,403,354
|
)
|
(2,794,656
|
)
|
(3,838,041
|
)
|
(3,839,007
|
)
|
(33,384,975
|
)
|
(32,199,163
|
)
|
||||||||||||
Policy loan repayments and interest
|
3,577,803
|
|
3,839,512
|
|
3,546,533
|
|
3,939,558
|
|
30,335,335
|
|
30,370,526
|
|
||||||||||||
Surrenders, withdrawals and death benefits
|
(12,312,470
|
)
|
(13,808,263
|
)
|
(10,054,057
|
)
|
(9,646,250
|
)
|
(60,575,430
|
)
|
(60,287,109
|
)
|
||||||||||||
Net transfers between other subaccounts or fixed rate option
|
(4,803,136
|
)
|
7,129,852
|
|
(4,437,307
|
)
|
(10,792,966
|
)
|
(25,361,796
|
)
|
(21,174,453
|
)
|
||||||||||||
Other charges
|
(4,525,677
|
)
|
(5,055,069
|
)
|
(6,497,879
|
)
|
(7,656,470
|
)
|
(46,689,920
|
)
|
(49,603,424
|
)
|
||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CONTRACT OWNER TRANSACTIONS
|
(11,351,793
|
)
|
(1,393,570
|
)
|
(10,302,083
|
)
|
(15,869,561
|
)
|
(61,309,727
|
)
|
(54,967,008
|
)
|
||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS
|
(12,224,824
|
)
|
(2,307,504
|
)
|
4,636,428
|
|
(19,599,709
|
)
|
57,427,382
|
|
381,656,171
|
|
||||||||||||
NET ASSETS
|
||||||||||||||||||||||||
Beginning of period
|
130,329,646
|
|
132,637,150
|
|
240,701,978
|
|
260,301,687
|
|
1,749,470,682
|
|
1,367,814,511
|
|
||||||||||||
End of period
|
$
|
118,104,822
|
|
$
|
130,329,646
|
|
$
|
245,338,406
|
|
$
|
240,701,978
|
|
$
|
1,806,898,064
|
|
$
|
1,749,470,682
|
|
||||||
Beginning units
|
63,902,949
|
|
64,572,343
|
|
48,979,250
|
|
52,202,135
|
|
195,568,033
|
|
202,691,571
|
|
||||||||||||
Units issued
|
11,956,133
|
|
16,691,322
|
|
3,815,145
|
|
4,417,734
|
|
11,704,168
|
|
14,471,738
|
|
||||||||||||
Units redeemed
|
(17,434,849
|
)
|
(17,360,716
|
)
|
(5,992,720
|
)
|
(7,640,619
|
)
|
(18,426,989
|
)
|
(21,595,276
|
)
|
||||||||||||
Ending units
|
58,424,233
|
|
63,902,949
|
|
46,801,675
|
|
48,979,250
|
|
188,845,212
|
|
195,568,033
|
|
||||||||||||
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Prudential Flexible Managed
Portfolio
|
Prudential Conservative
Balanced Portfolio
|
Prudential High Yield Bond
Portfolio
|
Prudential Stock Index
Portfolio
|
|||||||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||||||
$
|
(10,472,391
|
)
|
$
|
(9,452,634
|
)
|
$
|
(8,237,317
|
)
|
$
|
(7,705,152
|
)
|
$
|
8,410,373
|
|
$
|
8,724,178
|
|
$
|
32,737,910
|
|
$
|
(8,395,519
|
)
|
|||||||
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
61,360,546
|
|
-
|
|
|||||||||||||||
14,735,561
|
|
7,252,149
|
|
13,510,565
|
|
10,902,885
|
|
(137,139
|
)
|
(1,014,085
|
)
|
9,392,444
|
|
12,302,728
|
|
|||||||||||||||
130,472,465
|
|
221,631,095
|
|
78,514,378
|
|
141,751,771
|
|
(5,129,450
|
)
|
2,021,377
|
|
62,307,658
|
|
320,835,819
|
|
|||||||||||||||
134,735,635
|
|
219,430,610
|
|
83,787,626
|
|
144,949,504
|
|
3,143,784
|
|
9,731,470
|
|
165,798,558
|
|
324,743,028
|
|
|||||||||||||||
60,038,131
|
|
62,697,652
|
|
47,865,300
|
|
50,086,022
|
|
6,357,411
|
|
6,689,919
|
|
43,014,904
|
|
45,537,654
|
|
|||||||||||||||
(23,223,282
|
)
|
(22,861,852
|
)
|
(16,201,069
|
)
|
(16,603,375
|
)
|
(2,535,476
|
)
|
(2,653,585
|
)
|
(19,221,098
|
)
|
(19,471,822
|
)
|
|||||||||||||||
21,515,948
|
|
22,568,078
|
|
15,968,574
|
|
15,737,728
|
|
2,559,725
|
|
2,805,363
|
|
16,882,451
|
|
17,676,512
|
|
|||||||||||||||
(45,261,973
|
)
|
(43,047,292
|
)
|
(33,368,453
|
)
|
(33,970,090
|
)
|
(6,176,857
|
)
|
(5,760,096
|
)
|
(37,554,397
|
)
|
(37,221,243
|
)
|
|||||||||||||||
(18,372,075
|
)
|
(14,688,075
|
)
|
(18,814,733
|
)
|
(20,814,734
|
)
|
(2,622,669
|
)
|
(3,283,035
|
)
|
(17,870,255
|
)
|
(17,452,309
|
)
|
|||||||||||||||
(38,446,348
|
)
|
(41,314,436
|
)
|
(30,139,179
|
)
|
(32,920,934
|
)
|
(3,979,541
|
)
|
(4,523,788
|
)
|
(27,315,513
|
)
|
(29,130,262
|
)
|
|||||||||||||||
(43,749,599
|
)
|
(36,645,925
|
)
|
(34,689,560
|
)
|
(38,485,383
|
)
|
(6,397,407
|
)
|
(6,725,222
|
)
|
(42,063,908
|
)
|
(40,061,470
|
)
|
|||||||||||||||
90,986,036
|
|
182,784,685
|
|
49,098,066
|
|
106,464,121
|
|
(3,253,623
|
)
|
3,006,248
|
|
123,734,650
|
|
284,681,558
|
|
|||||||||||||||
1,340,336,471
|
|
1,157,551,786
|
|
1,073,257,488
|
|
966,793,367
|
|
156,290,621
|
|
153,284,373
|
|
1,348,059,050
|
|
1,063,377,492
|
|
|||||||||||||||
$
|
1,431,322,507
|
|
$
|
1,340,336,471
|
|
$
|
1,122,355,554
|
|
$
|
1,073,257,488
|
|
$
|
153,036,998
|
|
$
|
156,290,621
|
|
$
|
1,471,793,700
|
|
$
|
1,348,059,050
|
|
|||||||
213,968,589
|
|
220,400,931
|
|
207,551,106
|
|
215,516,901
|
|
29,882,085
|
|
31,585,307
|
|
145,836,900
|
|
150,952,314
|
|
|||||||||||||||
13,279,121
|
|
16,066,108
|
|
13,474,667
|
|
15,389,106
|
|
2,360,633
|
|
3,235,077
|
|
7,201,334
|
|
9,290,178
|
|
|||||||||||||||
(19,983,551
|
)
|
(22,498,450
|
)
|
(20,027,125
|
)
|
(23,354,901
|
)
|
(3,520,073
|
)
|
(4,938,299
|
)
|
(11,869,978
|
)
|
(14,405,592
|
)
|
|||||||||||||||
207,264,159
|
|
213,968,589
|
|
200,998,648
|
|
207,551,106
|
|
28,722,645
|
|
29,882,085
|
|
141,168,256
|
|
145,836,900
|
|
|||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||||||
Prudential Value
Portfolio
|
Prudential Natural Resources
Portfolio
|
Prudential Global
Portfolio
|
||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||
OPERATIONS
|
||||||||||||||||||||||||
Net investment income
(loss)
|
$
|
(4,877,036
|
)
|
$
|
(4,279,645
|
)
|
$
|
(3,505,250
|
)
|
$
|
(3,423,129
|
)
|
$
|
(2,522,168
|
)
|
$
|
(2,271,911
|
)
|
||||||
Capital gains distributions received
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
Realized gain (loss) on shares redeemed
|
8,466,155
|
|
2,756,607
|
|
4,351,353
|
|
4,020,016
|
|
3,101,628
|
|
1,165,503
|
|
||||||||||||
Net change in unrealized gain (loss) on investments
|
57,177,437
|
|
165,723,511
|
|
(94,196,519
|
)
|
41,947,412
|
|
8,878,723
|
|
80,089,137
|
|
||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
60,766,556
|
|
164,200,473
|
|
(93,350,416
|
)
|
42,544,299
|
|
9,458,183
|
|
78,982,729
|
|
||||||||||||
CONTRACT OWNER TRANSACTIONS
|
||||||||||||||||||||||||
Contract owner net
payments
|
25,202,454
|
|
26,314,880
|
|
14,500,834
|
|
14,936,916
|
|
13,283,940
|
|
13,993,673
|
|
||||||||||||
Policy loans
|
(11,952,700
|
)
|
(11,376,025
|
)
|
(8,581,693
|
)
|
(9,857,508
|
)
|
(5,639,145
|
)
|
(5,611,476
|
)
|
||||||||||||
Policy loan repayments and interest
|
10,362,570
|
|
11,034,628
|
|
9,431,366
|
|
9,825,953
|
|
5,063,926
|
|
5,426,293
|
|
||||||||||||
Surrenders, withdrawals and death benefits
|
(24,541,793
|
)
|
(23,777,461
|
)
|
(18,602,966
|
)
|
(19,119,614
|
)
|
(11,433,168
|
)
|
(11,197,048
|
)
|
||||||||||||
Net transfers between other subaccounts or fixed rate option
|
(9,306,682
|
)
|
(4,291,594
|
)
|
(8,888,050
|
)
|
(20,219,076
|
)
|
(4,449,554
|
)
|
(1,734,416
|
)
|
||||||||||||
Other charges
|
(16,188,187
|
)
|
(17,199,783
|
)
|
(9,550,505
|
)
|
(11,013,140
|
)
|
(7,583,437
|
)
|
(8,197,166
|
)
|
||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
CONTRACT OWNER
TRANSACTIONS
|
(26,424,338
|
)
|
(19,295,355
|
)
|
(21,691,014
|
)
|
(35,446,469
|
)
|
(10,757,438
|
)
|
(7,320,140
|
)
|
||||||||||||
TOTAL INCREASE
(DECREASE) IN NET ASSETS
|
34,342,218
|
|
144,905,118
|
|
(115,041,430
|
)
|
7,097,830
|
|
(1,299,255
|
)
|
71,662,589
|
|
||||||||||||
NET ASSETS
|
||||||||||||||||||||||||
Beginning of period
|
663,515,822
|
|
518,610,704
|
|
477,572,082
|
|
470,474,252
|
|
373,319,218
|
|
301,656,629
|
|
||||||||||||
End of period
|
$
|
697,858,040
|
|
$
|
663,515,822
|
|
$
|
362,530,652
|
|
$
|
477,572,082
|
|
$
|
372,019,963
|
|
$
|
373,319,218
|
|
||||||
Beginning units
|
66,899,515
|
|
69,020,735
|
|
25,485,689
|
|
27,457,437
|
|
118,832,390
|
|
121,374,733
|
|
||||||||||||
Units issued
|
4,077,451
|
|
5,491,559
|
|
1,780,830
|
|
1,722,184
|
|
6,783,410
|
|
9,699,714
|
|
||||||||||||
Units redeemed
|
(6,715,105
|
)
|
(7,612,779
|
)
|
(2,926,230
|
)
|
(3,693,932
|
)
|
(10,159,186
|
)
|
(12,242,057
|
)
|
||||||||||||
Ending units
|
64,261,861
|
|
66,899,515
|
|
24,340,289
|
|
25,485,689
|
|
115,456,614
|
|
118,832,390
|
|
||||||||||||
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Prudential Government
Income Portfolio
|
Prudential Jennison
Portfolio
|
Prudential Small Capitalization
Stock Portfolio
|
T. Rowe Price International
Stock Portfolio
|
|||||||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||||||
$
|
(376,338
|
)
|
$
|
1,114,981
|
|
$
|
(4,556,851
|
)
|
$
|
(3,830,439
|
)
|
$
|
(2,693,448
|
)
|
$
|
(2,394,863
|
)
|
$
|
6,381
|
|
$
|
3,754
|
|
|||||||
-
|
|
3,248,334
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,895
|
|
-
|
|
|||||||||||||||
(81,586
|
)
|
(145,474
|
)
|
9,465,962
|
|
4,550,759
|
|
8,274,943
|
|
2,832,469
|
|
16,605
|
|
4,468
|
|
|||||||||||||||
5,494,520
|
|
(7,499,458
|
)
|
52,259,231
|
|
171,643,888
|
|
11,842,742
|
|
114,407,210
|
|
(55,328
|
)
|
162,130
|
|
|||||||||||||||
5,036,596
|
|
(3,281,617
|
)
|
57,168,342
|
|
172,364,208
|
|
17,424,237
|
|
114,844,816
|
|
(24,447
|
)
|
170,352
|
|
|||||||||||||||
5,263,172
|
|
5,957,388
|
|
29,599,162
|
|
31,094,589
|
|
13,548,360
|
|
13,906,050
|
|
114,458
|
|
123,004
|
|
|||||||||||||||
(1,512,075
|
)
|
(1,775,482
|
)
|
(13,229,690
|
)
|
(12,677,699
|
)
|
(7,570,614
|
)
|
(8,016,126
|
)
|
(79,496
|
)
|
(45,430
|
)
|
|||||||||||||||
1,863,891
|
|
2,153,526
|
|
10,184,103
|
|
11,369,756
|
|
6,511,996
|
|
6,920,406
|
|
34,369
|
|
16,968
|
|
|||||||||||||||
(4,254,322
|
)
|
(4,488,118
|
)
|
(23,854,127
|
)
|
(24,719,846
|
)
|
(15,106,130
|
)
|
(14,861,566
|
)
|
(54,498
|
)
|
(36,932
|
)
|
|||||||||||||||
(3,217,400
|
)
|
(7,084,934
|
)
|
(5,612,097
|
)
|
(6,732,953
|
)
|
(8,154,054
|
)
|
4,094,874
|
|
(3,202
|
)
|
(5,430
|
)
|
|||||||||||||||
(2,909,887
|
)
|
(3,398,308
|
)
|
(18,247,751
|
)
|
(18,685,566
|
)
|
(9,366,550
|
)
|
(9,956,562
|
)
|
(81,780
|
)
|
(82,728
|
)
|
|||||||||||||||
(4,766,621
|
)
|
(8,635,928
|
)
|
(21,160,400
|
)
|
(20,351,719
|
)
|
(20,136,992
|
)
|
(7,912,924
|
)
|
(70,149
|
)
|
(30,548
|
)
|
|||||||||||||||
269,975
|
|
(11,917,545
|
)
|
36,007,942
|
|
152,012,489
|
|
(2,712,755
|
)
|
106,931,892
|
|
(94,596
|
)
|
139,804
|
|
|||||||||||||||
100,914,433
|
|
112,831,978
|
|
633,055,173
|
|
481,042,684
|
|
397,224,904
|
|
290,293,012
|
|
1,435,555
|
|
1,295,751
|
|
|||||||||||||||
$
|
101,184,408
|
|
$
|
100,914,433
|
|
$
|
669,063,115
|
|
$
|
633,055,173
|
|
$
|
394,512,149
|
|
$
|
397,224,904
|
|
$
|
1,340,959
|
|
$
|
1,435,555
|
|
|||||||
25,717,447
|
|
27,868,102
|
|
140,932,272
|
|
146,411,507
|
|
60,426,969
|
|
61,821,374
|
|
874,906
|
|
895,344
|
|
|||||||||||||||
2,182,935
|
|
2,496,150
|
|
10,803,609
|
|
13,481,798
|
|
4,061,612
|
|
6,611,398
|
|
91,709
|
|
101,726
|
|
|||||||||||||||
(3,358,603
|
)
|
(4,646,805
|
)
|
(15,383,446
|
)
|
(18,961,033
|
)
|
(7,144,230
|
)
|
(8,005,803
|
)
|
(134,125
|
)
|
(122,164
|
)
|
|||||||||||||||
24,541,779
|
|
25,717,447
|
|
136,352,435
|
|
140,932,272
|
|
57,344,351
|
|
60,426,969
|
|
832,490
|
|
874,906
|
|
|||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||||||
Janus Aspen Janus Portfolio –
Institutional Shares
|
MFS® Growth Series –
Initial Class
|
VP Value
Fund – Class I
|
||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
||||||||||||||||
OPERATIONS
|
|
|
|
|||||||||||||||||||||
Net investment income
(loss)
|
$
|
(16,417
|
)
|
|
$
|
16,308
|
|
$
|
(18,485
|
)
|
|
$
|
(11,732
|
)
|
$
|
28,858
|
|
|
$
|
28,307
|
|
|||
Capital gains distributions
received
|
301,143
|
|
|
-
|
|
246,107
|
|
|
23,868
|
|
-
|
|
|
-
|
|
|||||||||
Realized gain (loss) on shares redeemed
|
2,331,291
|
|
|
135,088
|
|
64,765
|
|
|
52,038
|
|
6,917
|
|
|
28,147
|
|
|||||||||
Net change in unrealized gain (loss) on investments
|
(2,087,944
|
)
|
|
2,090,668
|
|
9,519
|
|
|
938,203
|
|
323,448
|
|
|
662,540
|
|
|||||||||
|
|
|
||||||||||||||||||||||
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS
|
528,073
|
|
|
2,242,064
|
|
301,906
|
|
|
1,002,377
|
|
359,223
|
|
|
718,994
|
|
|||||||||
|
|
|
||||||||||||||||||||||
CONTRACT OWNER TRANSACTIONS
|
|
|
|
|||||||||||||||||||||
Contract owner net
payments
|
341,315
|
|
|
348,408
|
|
262,723
|
|
|
250,018
|
|
197,945
|
|
|
202,105
|
|
|||||||||
Policy loans
|
(122,993
|
)
|
|
(120,146
|
)
|
(176,272
|
)
|
|
(121,354
|
)
|
(79,821
|
)
|
|
(87,075
|
)
|
|||||||||
Policy loan repayments and
interest
|
48,108
|
|
|
29,415
|
|
44,128
|
|
|
37,859
|
|
35,292
|
|
|
24,538
|
|
|||||||||
Surrenders, withdrawals and death benefits
|
(5,697,920
|
)
|
|
(129,653
|
)
|
(81,939
|
)
|
|
(142,364
|
)
|
(55,163
|
)
|
|
(127,183
|
)
|
|||||||||
Net transfers between other subaccounts or fixed rate option
|
(695
|
)
|
|
(71,015
|
)
|
(14,105
|
)
|
|
(9,562
|
)
|
(4,386
|
)
|
|
(60,151
|
)
|
|||||||||
Other charges
|
(321,899
|
)
|
|
(560,888
|
)
|
(197,769
|
)
|
|
(189,415
|
)
|
(153,823
|
)
|
|
(148,941
|
)
|
|||||||||
|
|
|
||||||||||||||||||||||
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
CONTRACT OWNER TRANSACTIONS
|
(5,754,084
|
)
|
|
(503,879
|
)
|
(163,234
|
)
|
|
(174,818
|
)
|
(59,956
|
)
|
|
(196,707
|
)
|
|||||||||
|
|
|
||||||||||||||||||||||
TOTAL INCREASE
(DECREASE) IN NET
ASSETS
|
(5,226,011
|
)
|
|
1,738,185
|
|
138,672
|
|
|
827,559
|
|
299,267
|
|
|
522,287
|
|
|||||||||
NET ASSETS
|
|
|
|
|||||||||||||||||||||
Beginning of period
|
9,564,148
|
|
|
7,825,963
|
|
3,728,817
|
|
|
2,901,258
|
|
2,921,104
|
|
|
2,398,817
|
|
|||||||||
|
|
|
||||||||||||||||||||||
End of period
|
$
|
4,338,137
|
|
|
$
|
9,564,148
|
|
$
|
3,867,489
|
|
|
$
|
3,728,817
|
|
$
|
3,220,371
|
|
|
$
|
2,921,104
|
|
|||
|
|
|
||||||||||||||||||||||
Beginning units
|
4,177,451
|
|
|
4,428,679
|
|
1,331,906
|
|
|
1,409,787
|
|
909,599
|
|
|
978,135
|
|
|||||||||
Units issued
|
165,012
|
|
|
194,847
|
|
107,688
|
|
|
132,034
|
|
70,170
|
|
|
88,526
|
|
|||||||||
Units redeemed
|
(2,655,502
|
)
|
|
(446,075
|
)
|
(163,944
|
)
|
|
(209,915
|
)
|
(87,655
|
)
|
|
(157,062
|
)
|
|||||||||
|
|
|
||||||||||||||||||||||
Ending units
|
1,686,961
|
|
|
4,177,451
|
|
1,275,650
|
|
|
1,331,906
|
|
892,114
|
|
|
909,599
|
|
|||||||||
|
|
|
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
Prudential SP Small Cap
Value Portfolio
|
Janus Aspen Janus Portfolio –
Service Shares
|
Prudential SP Prudential U.S.
Emerging Growth Portfolio
|
Prudential SP International
Growth Portfolio
|
|||||||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||||||
$
|
(34,914
|
)
|
$
|
(31,807
|
)
|
$
|
(1,425
|
)
|
$
|
(442
|
)
|
$
|
(9,677
|
)
|
$
|
(10,719
|
)
|
$
|
(23,453
|
)
|
$
|
(25,890
|
)
|
|||||||
-
|
|
-
|
|
15,536
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
148,920
|
|
94,720
|
|
61,099
|
|
24,930
|
|
115,517
|
|
68,224
|
|
22,487
|
|
25,768
|
|
|||||||||||||||
37,269
|
|
1,060,173
|
|
(50,957
|
)
|
29,266
|
|
(2,708
|
)
|
262,302
|
|
(180,013
|
)
|
461,368
|
|
|||||||||||||||
151,275
|
|
1,123,086
|
|
24,253
|
|
53,754
|
|
103,132
|
|
319,807
|
|
(180,979
|
)
|
461,246
|
|
|||||||||||||||
37,336
|
|
38,591
|
|
-
|
|
4,367
|
|
33,861
|
|
38,732
|
|
25,860
|
|
32,307
|
|
|||||||||||||||
(13,107
|
)
|
(27,356
|
)
|
-
|
|
-
|
|
(11,646
|
)
|
(9,152
|
)
|
(7,463
|
)
|
(10,084
|
)
|
|||||||||||||||
4,997
|
|
5,032
|
|
-
|
|
-
|
|
3,634
|
|
3,501
|
|
2,259
|
|
2,305
|
|
|||||||||||||||
(242,149
|
)
|
(113,267
|
)
|
(115,233
|
)
|
(52,195
|
)
|
(202,151
|
)
|
(271,742
|
)
|
(93,272
|
)
|
(365,647
|
)
|
|||||||||||||||
(22,497
|
)
|
(114,365
|
)
|
-
|
|
(31,229
|
)
|
1,515
|
|
59,974
|
|
1,417
|
|
(191,171
|
)
|
|||||||||||||||
(90,477
|
)
|
(91,736
|
)
|
(10,761
|
)
|
(9,274
|
)
|
(63,358
|
)
|
(128,834
|
)
|
(39,507
|
)
|
(166,825
|
)
|
|||||||||||||||
(325,897
|
)
|
(303,101
|
)
|
(125,994
|
)
|
(88,331
|
)
|
(238,145
|
)
|
(307,521
|
)
|
(110,706
|
)
|
(699,115
|
)
|
|||||||||||||||
(174,622
|
)
|
819,985
|
|
(101,741
|
)
|
(34,577
|
)
|
(135,013
|
)
|
12,286
|
|
(291,685
|
)
|
(237,869
|
)
|
|||||||||||||||
4,098,540
|
|
3,278,555
|
|
211,763
|
|
246,340
|
|
1,267,840
|
|
1,255,554
|
|
2,820,156
|
|
3,058,025
|
|
|||||||||||||||
$
|
3,923,918
|
|
$
|
4,098,540
|
|
$
|
110,022
|
|
$
|
211,763
|
|
$
|
1,132,827
|
|
$
|
1,267,840
|
|
$
|
2,528,471
|
|
$
|
2,820,156
|
|
|||||||
1,743,519
|
|
1,900,537
|
|
121,795
|
|
182,539
|
|
417,805
|
|
528,922
|
|
1,524,190
|
|
1,948,544
|
|
|||||||||||||||
20,457
|
|
40,229
|
|
-
|
|
2,959
|
|
12,838
|
|
68,241
|
|
19,312
|
|
30,205
|
|
|||||||||||||||
(159,709
|
)
|
(197,247
|
)
|
(65,160
|
)
|
(63,703
|
)
|
(88,063
|
)
|
(179,358
|
)
|
(81,805
|
)
|
(454,559
|
)
|
|||||||||||||||
1,604,267
|
|
1,743,519
|
|
56,635
|
|
121,795
|
|
342,580
|
|
417,805
|
|
1,461,697
|
|
1,524,190
|
|
|||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||||||
Prudential SP International
Value Portfolio
|
|
AST Loomis Sayles Large-Cap
Growth Portfolio
|
|
AST T. Rowe Price Large-Cap
Growth Portfolio
|
||||||||||||||||||||
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
||||||||||||||
OPERATIONS
|
|
|
|
|
|
|||||||||||||||||||
Net investment income
(loss)
|
$
|
(9,788
|
)
|
|
$
|
(10,404
|
)
|
|
$
|
(1,432
|
)
|
|
$
|
(1,243
|
)
|
|
$
|
(7,237
|
)
|
|
$
|
(4,380
|
)
|
|
Capital gains distributions received
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||||
Realized gain (loss) on shares redeemed
|
64,097
|
|
|
99,458
|
|
|
20,389
|
|
|
2,260
|
|
|
14,308
|
|
|
5,405
|
|
|||||||
Net change in unrealized gain (loss) on investments
|
(139,014
|
)
|
|
121,181
|
|
|
(1,012
|
)
|
|
49,250
|
|
|
54,129
|
|
|
209,906
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
(84,705
|
)
|
|
210,235
|
|
|
17,945
|
|
|
50,267
|
|
|
61,200
|
|
|
210,931
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
CONTRACT OWNER TRANSACTIONS
|
|
|
|
|
|
|||||||||||||||||||
Contract owner net
payments
|
46,311
|
|
|
46,814
|
|
|
5,916
|
|
|
7,635
|
|
|
9,245
|
|
|
6,818
|
|
|||||||
Policy loans
|
(8,999
|
)
|
|
(7,147
|
)
|
|
(5,751
|
)
|
|
(7,017
|
)
|
|
(103
|
)
|
|
(809
|
)
|
|||||||
Policy loan repayments and interest
|
3,750
|
|
|
2,426
|
|
|
2,122
|
|
|
1,868
|
|
|
97
|
|
|
74
|
|
|||||||
Surrenders, withdrawals and death benefits
|
(167,939
|
)
|
|
(90,544
|
)
|
|
(30,336
|
)
|
|
-
|
|
|
(39,943
|
)
|
|
(18,015
|
)
|
|||||||
Net transfers between other subaccounts or fixed rate option
|
10,211
|
|
|
(206,969
|
)
|
|
(2,329
|
)
|
|
10,902
|
|
|
101,965
|
|
|
413,586
|
|
|||||||
Other charges
|
(31,090
|
)
|
|
(44,510
|
)
|
|
(9,248
|
)
|
|
(8,102
|
)
|
|
(61,202
|
)
|
|
(28,925
|
)
|
|||||||
|
|
|
|
|
||||||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
CONTRACT OWNER TRANSACTIONS
|
(147,756
|
)
|
|
(299,930
|
)
|
|
(39,626
|
)
|
|
5,286
|
|
|
10,059
|
|
|
372,729
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
TOTAL INCREASE
(DECREASE) IN NET
ASSETS
|
(232,461
|
)
|
|
(89,695
|
)
|
|
(21,681
|
)
|
|
55,553
|
|
|
71,259
|
|
|
583,660
|
|
|||||||
NET ASSETS
|
|
|
|
|
|
|||||||||||||||||||
Beginning of period
|
1,277,644
|
|
|
1,367,339
|
|
|
192,937
|
|
|
137,384
|
|
|
853,640
|
|
|
269,980
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
End of period
|
$
|
1,045,183
|
|
|
$
|
1,277,644
|
|
|
$
|
171,256
|
|
|
$
|
192,937
|
|
|
$
|
924,899
|
|
|
$
|
853,640
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning units
|
662,290
|
|
|
846,332
|
|
|
13,919
|
|
|
13,445
|
|
|
48,154
|
|
|
21,700
|
|
|||||||
Units issued
|
30,986
|
|
|
40,685
|
|
|
557
|
|
|
2,126
|
|
|
7,616
|
|
|
30,158
|
|
|||||||
Units redeemed
|
(113,226
|
)
|
|
(224,727
|
)
|
|
(3,238
|
)
|
|
(1,652
|
)
|
|
(7,217
|
)
|
|
(3,704
|
)
|
|||||||
|
|
|
|
|
||||||||||||||||||||
Ending units
|
580,050
|
|
|
662,290
|
|
|
11,238
|
|
|
13,919
|
|
|
48,553
|
|
|
48,154
|
|
|||||||
|
|
|
|
|
SUBACCOUNTS (Continued)
|
||||||||||||||||||||||||||||||
AST Large-Cap Value
Portfolio
|
AST Small-Cap Growth
Portfolio
|
AST PIMCO Total Return
Bond Portfolio
|
AST Wellington Management
Hedged Equity Portfolio
|
|||||||||||||||||||||||||||
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
01/01/2014
to
12/31/2014
|
01/01/2013
to
12/31/2013
|
|||||||||||||||||||||||
$
|
(3,309
|
)
|
$
|
(3,556
|
)
|
$
|
(2,610
|
)
|
$
|
(3,675
|
)
|
$
|
(49,012
|
)
|
$
|
(50,252
|
)
|
$
|
(14,252
|
)
|
$
|
(12,368
|
)
|
|||||||
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
24,967
|
|
95,248
|
|
37,552
|
|
129,081
|
|
11,214
|
|
12,277
|
|
2,509
|
|
12,120
|
|
|||||||||||||||
27,776
|
|
48,542
|
|
(23,764
|
)
|
6,249
|
|
219,358
|
|
(118,826
|
)
|
85,941
|
|
250,356
|
|
|||||||||||||||
49,434
|
|
140,234
|
|
11,178
|
|
131,655
|
|
181,560
|
|
(156,801
|
)
|
74,198
|
|
250,108
|
|
|||||||||||||||
8,459
|
|
8,827
|
|
16,282
|
|
17,097
|
|
46,507
|
|
48,532
|
|
7,535
|
|
6,636
|
|
|||||||||||||||
(2,480
|
)
|
(8,466
|
)
|
(3,492
|
)
|
(9,753
|
)
|
(3,906
|
)
|
(12,872
|
)
|
(1,016
|
)
|
(1,225
|
)
|
|||||||||||||||
1,982
|
|
1,595
|
|
2,879
|
|
3,347
|
|
5,549
|
|
3,259
|
|
696
|
|
687
|
|
|||||||||||||||
(46,027
|
)
|
(3,206
|
)
|
(42,059
|
)
|
(11,636
|
)
|
(73,240
|
)
|
(145,722
|
)
|
(9,059
|
)
|
(2,227
|
)
|
|||||||||||||||
(3,437
|
)
|
(147,685
|
)
|
(44,231
|
)
|
(220,879
|
)
|
16,320
|
|
(74,911
|
)
|
96,225
|
|
(4,703
|
)
|
|||||||||||||||
(18,898
|
)
|
(26,783
|
)
|
(13,524
|
)
|
(27,361
|
)
|
(85,918
|
)
|
(89,984
|
)
|
(27,736
|
)
|
(23,309
|
)
|
|||||||||||||||
(60,401
|
)
|
(175,718
|
)
|
(84,145
|
)
|
(249,185
|
)
|
(94,688
|
)
|
(271,698
|
)
|
66,645
|
|
(24,141
|
)
|
|||||||||||||||
(10,967
|
)
|
(35,484
|
)
|
(72,967
|
)
|
(117,530
|
)
|
86,872
|
|
(428,499
|
)
|
140,843
|
|
225,967
|
|
|||||||||||||||
412,677
|
|
448,161
|
|
404,809
|
|
522,339
|
|
5,489,256
|
|
5,917,755
|
|
1,526,557
|
|
1,300,590
|
|
|||||||||||||||
$
|
401,710
|
|
$
|
412,677
|
|
$
|
331,842
|
|
$
|
404,809
|
|
$
|
5,576,128
|
|
$
|
5,489,256
|
|
$
|
1,667,400
|
|
$
|
1,526,557
|
|
|||||||
33,073
|
|
49,874
|
|
22,531
|
|
39,184
|
|
479,905
|
|
503,426
|
|
104,575
|
|
106,420
|
|
|||||||||||||||
1,053
|
|
5,630
|
|
1,583
|
|
5,444
|
|
5,839
|
|
13,379
|
|
7,228
|
|
1,397
|
|
|||||||||||||||
(5,610
|
)
|
(22,431
|
)
|
(6,221
|
)
|
(22,097
|
)
|
(13,922
|
)
|
(36,900
|
)
|
(2,576
|
)
|
(3,242
|
)
|
|||||||||||||||
28,516
|
|
33,073
|
|
17,893
|
|
22,531
|
|
471,822
|
|
479,905
|
|
109,227
|
|
104,575
|
|
|||||||||||||||
SUBACCOUNTS
|
||||||||||||||||||||||||
AST
Balanced Asset
Allocation Portfolio
|
|
AST
Preservation Asset
Allocation Portfolio
|
|
AST
BlackRock Global
Strategies Portfolio
|
||||||||||||||||||||
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
|
01/01/2014
to
12/31/2014
|
|
01/01/2013
to
12/31/2013
|
||||||||||||||
OPERATIONS
|
|
|
|
|
|
|||||||||||||||||||
Net investment income
(loss)
|
$
|
(11,857
|
)
|
|
$
|
(10,678
|
)
|
|
$
|
(3,251
|
)
|
|
$
|
(3,589
|
)
|
|
$
|
(9,251
|
)
|
|
$
|
(10,185
|
)
|
|
Capital gains distributions received
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||||
Realized gain (loss) on shares redeemed
|
17,022
|
|
|
10,613
|
|
|
13,563
|
|
|
9,352
|
|
|
35,050
|
|
|
10,369
|
|
|||||||
Net change in unrealized gain
(loss) on investments
|
71,132
|
|
|
205,374
|
|
|
11,895
|
|
|
33,798
|
|
|
21,561
|
|
|
121,848
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM OPERATIONS
|
76,297
|
|
|
205,309
|
|
|
22,207
|
|
|
39,561
|
|
|
47,360
|
|
|
122,032
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
CONTRACT OWNER TRANSACTIONS
|
|
|
|
|
|
|||||||||||||||||||
Contract owner net
payments
|
176,339
|
|
|
178,189
|
|
|
50,581
|
|
|
35,110
|
|
|
58,444
|
|
|
76,721
|
|
|||||||
Policy loans
|
(4,356
|
)
|
|
(5,396
|
)
|
|
(780
|
)
|
|
(1,238
|
)
|
|
(1,886
|
)
|
|
(2,111
|
)
|
|||||||
Policy loan repayments and interest
|
3,436
|
|
|
3,811
|
|
|
669
|
|
|
618
|
|
|
624
|
|
|
1,058
|
|
|||||||
Surrenders, withdrawals and
death benefits
|
(45,132
|
)
|
|
-
|
|
|
(18,290
|
)
|
|
-
|
|
|
(116,040
|
)
|
|
(89,600
|
)
|
|||||||
Net transfers between other subaccounts or fixed rate
option
|
50,662
|
|
|
30,389
|
|
|
-
|
|
|
9,164
|
|
|
(111,823
|
)
|
|
4,028
|
|
|||||||
Other charges
|
(213,714
|
)
|
|
(181,324
|
)
|
|
(107,269
|
)
|
|
(114,629
|
)
|
|
(78,005
|
)
|
|
(84,286
|
)
|
|||||||
|
|
|
|
|
||||||||||||||||||||
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
CONTRACT OWNER TRANSACTIONS
|
(32,765
|
)
|
|
25,669
|
|
|
(75,089
|
)
|
|
(70,975
|
)
|
|
(248,686
|
)
|
|
(94,190
|
)
|
|||||||
|
|
|
|
|
||||||||||||||||||||
TOTAL INCREASE
(DECREASE) IN NET
ASSETS
|
43,532
|
|
|
230,978
|
|
|
(52,882
|
)
|
|
(31,414
|
)
|
|
(201,326
|
)
|
|
27,842
|
|
|||||||
NET ASSETS
|
|
|
|
|
|
|||||||||||||||||||
Beginning of period
|
1,434,116
|
|
|
1,203,138
|
|
|
474,853
|
|
|
506,267
|
|
|
1,297,824
|
|
|
1,269,982
|
|
|||||||
|
|
|
|
|
||||||||||||||||||||
End of period
|
$
|
1,477,648
|
|
|
$
|
1,434,116
|
|
|
$
|
421,971
|
|
|
$
|
474,853
|
|
|
$
|
1,096,498
|
|
|
$
|
1,297,824
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning units
|
99,704
|
|
|
97,620
|
|
|
36,240
|
|
|
41,908
|
|
|
115,265
|
|
|
124,070
|
|
|||||||
Units issued
|
15,431
|
|
|
17,635
|
|
|
3,827
|
|
|
3,570
|
|
|
5,176
|
|
|
8,527
|
|
|||||||
Units redeemed
|
(17,893
|
)
|
|
(15,551
|
)
|
|
(9,410
|
)
|
|
(9,238
|
)
|
|
(26,928
|
)
|
|
(17,332
|
)
|
|||||||
|
|
|
|
|
||||||||||||||||||||
Ending units
|
97,242
|
|
|
99,704
|
|
|
30,657
|
|
|
36,240
|
|
|
93,513
|
|
|
115,265
|
|
|||||||
|
|
|
|
|
Note 1:
|
General
|
|
Prudential Money Market Portfolio
|
|
Prudential Diversified Bond Portfolio
|
|
Prudential Equity Portfolio
|
|
Prudential Flexible Managed Portfolio
|
|
Prudential Conservative Balanced Portfolio
|
|
Prudential High Yield Bond Portfolio
|
|
Prudential Stock Index Portfolio
|
|
Prudential Value Portfolio
|
|
Prudential Natural Resources Portfolio
|
|
Prudential Global Portfolio
|
|
Prudential Government Income Portfolio
|
|
Prudential Jennison Portfolio
|
|
Prudential Small Capitalization Stock Portfolio
|
|
T. Rowe Price International Stock Portfolio
|
|
Janus Aspen Janus Portfolio – Institutional Shares
|
|
MFS® Growth Series – Initial Class
|
|
VP Value Fund – Class I
|
|
Prudential SP Small Cap Value Portfolio
|
|
Janus Aspen Janus Portfolio – Service Shares
|
|
Prudential SP Prudential U.S. Emerging Growth Portfolio
|
|
Prudential SP International Growth Portfolio
|
|
Prudential SP International Value Portfolio
|
|
AST Loomis Sayles Large-Cap Growth Portfolio
|
|
AST T. Rowe Price Large-Cap Growth Portfolio
|
|
AST Large-Cap Value Portfolio
|
|
AST Small-Cap Growth Portfolio
|
|
AST PIMCO Total Return Bond Portfolio
|
|
AST Wellington Management Hedged Equity Portfolio
|
|
AST Balanced Asset Allocation Portfolio
|
|
AST Preservation Asset Allocation Portfolio
|
|
AST BlackRock Global Strategies Portfolio
|
Note 2:
|
Significant Accounting Policies
|
Note 2:
|
Significant Accounting Policies (Continued)
|
Note 3:
|
Fair Value
|
Note 3:
|
Fair Value (Continued)
|
T. Rowe Price International Stock Portfolio
|
|
$
|
1,435,555
|
|
Janus Aspen Janus Portfolio – Institutional Shares
|
|
9,564,148
|
|
|
MFS® Growth Series – Initial Class
|
|
3,728,817
|
|
|
VP Value Fund – Class I
|
|
2,921,104
|
|
|
Janus Aspen Janus Portfolio – Service Shares
|
|
211,763
|
|
Note 4:
|
Taxes
|
Note 5:
|
Purchases and Sales of Investments
|
|
Purchases
|
|
Sales
|
|||||
Prudential Money Market Portfolio
|
|
$
|
8,244,060
|
|
|
$
|
20,469,929
|
|
Prudential Diversified Bond Portfolio
|
|
4,090,789
|
|
|
16,180,591
|
|
||
Prudential Equity Portfolio
|
|
8,978,569
|
|
|
83,320,745
|
|
||
Prudential Flexible Managed Portfolio
|
|
8,283,690
|
|
|
62,505,680
|
|
||
Prudential Conservative Balanced Portfolio
|
|
8,658,244
|
|
|
51,585,121
|
|
||
Prudential High Yield Bond Portfolio
|
|
2,547,108
|
|
|
10,096,343
|
|
||
Prudential Stock Index Portfolio
|
|
6,608,259
|
|
|
58,314,204
|
|
||
Prudential Value Portfolio
|
|
4,275,247
|
|
|
35,576,621
|
|
||
Prudential Natural Resources Portfolio
|
|
4,405,793
|
|
|
29,602,057
|
|
||
Prudential Global Portfolio
|
|
2,964,340
|
|
|
16,243,946
|
|
||
Prudential Government Income Portfolio
|
|
1,959,489
|
|
|
7,461,685
|
|
||
Prudential Jennison Portfolio
|
|
6,829,596
|
|
|
32,546,847
|
|
||
Prudential Small Capitalization Stock Portfolio
|
|
2,406,305
|
|
|
25,236,745
|
|
||
T. Rowe Price International Stock Portfolio
|
|
74,314
|
|
|
152,995
|
|
||
Janus Aspen Janus Portfolio – Institutional Shares
|
|
160,356
|
|
|
5,946,189
|
|
||
MFS® Growth Series – Initial Class
|
|
138,988
|
|
|
324,564
|
|
||
VP Value Fund – Class I
|
|
91,647
|
|
|
169,898
|
|
||
Prudential SP Small Cap Value Portfolio
|
|
121,709
|
|
|
482,520
|
|
||
Janus Aspen Janus Portfolio – Service Shares
|
|
-
|
|
|
127,829
|
|
||
Prudential SP Prudential U.S. Emerging Growth Portfolio
|
|
22,290
|
|
|
270,112
|
|
||
Prudential SP International Growth Portfolio
|
|
25,469
|
|
|
159,628
|
|
||
Prudential SP International Value Portfolio
|
|
161,353
|
|
|
318,897
|
|
||
AST Loomis Sayles Large-Cap Growth Portfolio
|
|
5,463
|
|
|
46,521
|
|
||
AST T. Rowe Price Large-Cap Growth Portfolio
|
|
139,386
|
|
|
136,564
|
|
||
AST Large-Cap Value Portfolio
|
|
10,285
|
|
|
73,995
|
|
||
AST Small-Cap Growth Portfolio
|
|
21,250
|
|
|
108,005
|
|
||
AST PIMCO Total Return Bond Portfolio
|
|
48,530
|
|
|
192,230
|
|
||
AST Wellington Management Hedged Equity Portfolio
|
|
100,573
|
|
|
48,180
|
|
||
AST Balanced Asset Allocation Portfolio
|
|
217,387
|
|
|
262,009
|
|
||
AST Preservation Asset Allocation Portfolio
|
|
38,237
|
|
|
116,577
|
|
||
AST BlackRock Global Strategies Portfolio
|
|
42,823
|
|
|
300,760
|
|
Note 6:
|
Related Party Transactions
|
Note 6:
|
Related Party Transactions (Continued)
|
Note 7:
|
Financial Highlights
|
Note 7:
|
Financial Highlights (Continued)
|
At year ended
|
For year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||
Units
(000s)
|
Unit Value
Lowest — Highest
|
Net
Assets
(000s)
|
Investment
Income
Ratio*
|
Expense Ratio**
Lowest — Highest
|
Total Return***
Lowest — Highest
|
|||||||||||||||||||||||||||||||||||||||||||
Prudential Money Market Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
58,424
|
|
$
|
1.38334
|
|
to
|
|
$
|
2.12361
|
|
$
|
118,105
|
|
0.00%
|
(1)
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.91%
|
|
to
|
|
-0.54%
|
|
|||||||||||||||||||||
December 31, 2013
|
63,903
|
|
$
|
1.39489
|
|
to
|
|
$
|
2.13517
|
|
$
|
130,330
|
|
0.00%
|
(1)
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.91%
|
|
to
|
|
-0.55%
|
|
|||||||||||||||||||||
December 31, 2012
|
64,572
|
|
$
|
1.40645
|
|
to
|
|
$
|
2.14874
|
|
$
|
132,637
|
|
0.01%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.89%
|
|
to
|
|
-0.55%
|
|
|||||||||||||||||||||
December 31, 2011
|
68,694
|
|
$
|
1.41809
|
|
to
|
|
$
|
2.16136
|
|
$
|
142,178
|
|
0.02%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.89%
|
|
to
|
|
-0.53%
|
|
|||||||||||||||||||||
December 31, 2010
|
71,622
|
|
$
|
1.42960
|
|
to
|
|
$
|
2.17287
|
|
$
|
148,491
|
|
0.03%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.88%
|
|
to
|
|
-0.52%
|
|
|||||||||||||||||||||
Prudential Diversified Bond Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
46,802
|
|
$
|
2.72123
|
|
to
|
|
$
|
5.55907
|
|
$
|
245,338
|
|
1.10%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.13%
|
|
to
|
|
6.46%
|
|
|||||||||||||||||||||
December 31, 2013
|
48,979
|
|
$
|
2.56400
|
|
to
|
|
$
|
5.22218
|
|
$
|
240,702
|
|
3.96%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-1.60%
|
|
to
|
|
-1.30%
|
|
|||||||||||||||||||||
December 31, 2012
|
52,202
|
|
$
|
2.60552
|
|
to
|
|
$
|
5.29132
|
|
$
|
260,302
|
|
4.42%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.69%
|
|
to
|
|
10.02%
|
|
|||||||||||||||||||||
December 31, 2011
|
52,823
|
|
$
|
2.37531
|
|
to
|
|
$
|
4.80937
|
|
$
|
239,796
|
|
4.31%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.55%
|
|
to
|
|
6.87%
|
|
|||||||||||||||||||||
December 31, 2010
|
54,166
|
|
$
|
2.22918
|
|
to
|
|
$
|
4.50011
|
|
$
|
229,518
|
|
4.22%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.59%
|
|
to
|
|
9.91%
|
|
|||||||||||||||||||||
Prudential Equity Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
188,845
|
|
$
|
2.96710
|
|
to
|
|
$
|
10.17712
|
|
$
|
1,806,898
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.75%
|
|
to
|
|
7.07%
|
|
|||||||||||||||||||||
December 31, 2013
|
195,568
|
|
$
|
2.77128
|
|
to
|
|
$
|
9.50540
|
|
$
|
1,749,471
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
32.34%
|
|
to
|
|
32.74%
|
|
|||||||||||||||||||||
December 31, 2012
|
202,692
|
|
$
|
2.08777
|
|
to
|
|
$
|
7.16104
|
|
$
|
1,367,815
|
|
0.59%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.67%
|
|
to
|
|
13.01%
|
|
|||||||||||||||||||||
December 31, 2011
|
211,480
|
|
$
|
1.84739
|
|
to
|
|
$
|
6.33676
|
|
$
|
1,263,596
|
|
0.68%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-4.33%
|
|
to
|
|
-4.04%
|
|
|||||||||||||||||||||
December 31, 2010
|
219,106
|
|
$
|
1.92526
|
|
to
|
|
$
|
6.60373
|
|
$
|
1,367,699
|
|
0.79%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.90%
|
|
to
|
|
11.23%
|
|
|||||||||||||||||||||
Prudential Flexible Managed Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
207,264
|
|
$
|
2.77634
|
|
to
|
|
$
|
7.27893
|
|
$
|
1,431,323
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.06%
|
|
to
|
|
10.39%
|
|
|||||||||||||||||||||
December 31, 2013
|
213,969
|
|
$
|
2.51501
|
|
to
|
|
$
|
6.59379
|
|
$
|
1,340,336
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
19.07%
|
|
to
|
|
19.43%
|
|
|||||||||||||||||||||
December 31, 2012
|
220,401
|
|
$
|
2.10589
|
|
to
|
|
$
|
5.52103
|
|
$
|
1,157,552
|
|
1.92%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.36%
|
|
to
|
|
12.69%
|
|
|||||||||||||||||||||
December 31, 2011
|
227,327
|
|
$
|
1.86871
|
|
to
|
|
$
|
4.89916
|
|
$
|
1,061,027
|
|
1.95%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
3.41%
|
|
to
|
|
3.71%
|
|
|||||||||||||||||||||
December 31, 2010
|
235,381
|
|
$
|
1.80184
|
|
to
|
|
$
|
4.72374
|
|
$
|
1,061,015
|
|
2.24%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.04%
|
|
to
|
|
11.37%
|
|
|||||||||||||||||||||
Prudential Conservative Balanced Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
200,999
|
|
$
|
2.61488
|
|
to
|
|
$
|
5.87486
|
|
$
|
1,122,356
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
7.80%
|
|
to
|
|
8.12%
|
|
|||||||||||||||||||||
December 31, 2013
|
207,551
|
|
$
|
2.41843
|
|
to
|
|
$
|
5.43361
|
|
$
|
1,073,257
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.11%
|
|
to
|
|
15.46%
|
|
|||||||||||||||||||||
December 31, 2012
|
215,517
|
|
$
|
2.09467
|
|
to
|
|
$
|
4.70609
|
|
$
|
966,793
|
|
2.07%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.24%
|
|
to
|
|
10.58%
|
|
|||||||||||||||||||||
December 31, 2011
|
224,119
|
|
$
|
1.89434
|
|
to
|
|
$
|
4.25624
|
|
$
|
910,788
|
|
2.25%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
3.67%
|
|
to
|
|
3.98%
|
|
|||||||||||||||||||||
December 31, 2010
|
232,932
|
|
$
|
1.82185
|
|
to
|
|
$
|
4.09360
|
|
$
|
911,796
|
|
2.44%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.75%
|
|
to
|
|
11.09%
|
|
|||||||||||||||||||||
Prudential High Yield Bond Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
28,723
|
|
$
|
2.72177
|
|
to
|
|
$
|
5.69550
|
|
$
|
153,037
|
|
6.05%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
1.80%
|
|
to
|
|
2.10%
|
|
|||||||||||||||||||||
December 31, 2013
|
29,882
|
|
$
|
2.66591
|
|
to
|
|
$
|
5.57840
|
|
$
|
156,291
|
|
6.36%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.29%
|
|
to
|
|
6.62%
|
|
|||||||||||||||||||||
December 31, 2012
|
31,585
|
|
$
|
2.50031
|
|
to
|
|
$
|
5.23229
|
|
$
|
153,284
|
|
7.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
13.40%
|
|
to
|
|
13.74%
|
|
|||||||||||||||||||||
December 31, 2011
|
31,780
|
|
$
|
2.19827
|
|
to
|
|
$
|
4.60017
|
|
$
|
135,600
|
|
7.51%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.15%
|
|
to
|
|
4.48%
|
|
|||||||||||||||||||||
December 31, 2010
|
32,278
|
|
$
|
2.10440
|
|
to
|
|
$
|
4.40302
|
|
$
|
132,268
|
|
8.38%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
13.03%
|
|
to
|
|
13.38%
|
|
|||||||||||||||||||||
Prudential Stock Index Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
141,168
|
|
$
|
3.32412
|
|
to
|
|
$
|
11.08909
|
|
$
|
1,471,794
|
|
3.04%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.30%
|
|
to
|
|
12.63%
|
|
|||||||||||||||||||||
December 31, 2013
|
145,837
|
|
$
|
2.95131
|
|
to
|
|
$
|
9.84537
|
|
$
|
1,348,059
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
30.72%
|
|
to
|
|
31.11%
|
|
|||||||||||||||||||||
December 31, 2012
|
150,952
|
|
$
|
2.25107
|
|
to
|
|
$
|
7.50934
|
|
$
|
1,063,377
|
|
1.69%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
14.64%
|
|
to
|
|
14.99%
|
|
|||||||||||||||||||||
December 31, 2011
|
156,096
|
|
$
|
1.95766
|
|
to
|
|
$
|
6.53065
|
|
$
|
957,180
|
|
1.60%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
1.04%
|
|
to
|
|
1.34%
|
|
|||||||||||||||||||||
December 31, 2010
|
161,925
|
|
$
|
1.93168
|
|
to
|
|
$
|
6.44411
|
|
$
|
980,116
|
|
1.76%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
13.56%
|
|
to
|
|
13.90%
|
|
|||||||||||||||||||||
Prudential Value Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
64,262
|
|
$
|
3.88049
|
|
to
|
|
$
|
11.63962
|
|
$
|
697,858
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.12%
|
|
to
|
|
9.45%
|
|
|||||||||||||||||||||
December 31, 2013
|
66,900
|
|
$
|
3.54556
|
|
to
|
|
$
|
10.63491
|
|
$
|
663,516
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
31.91%
|
|
to
|
|
32.30%
|
|
|||||||||||||||||||||
December 31, 2012
|
69,021
|
|
$
|
2.67992
|
|
to
|
|
$
|
8.03840
|
|
$
|
518,611
|
|
0.97%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
13.60%
|
|
to
|
|
13.94%
|
|
|||||||||||||||||||||
December 31, 2011
|
72,999
|
|
$
|
2.35206
|
|
to
|
|
$
|
7.05520
|
|
$
|
481,420
|
|
1.02%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-6.42%
|
|
to
|
|
-6.14%
|
|
|||||||||||||||||||||
December 31, 2010
|
76,973
|
|
$
|
2.50599
|
|
to
|
|
$
|
7.51674
|
|
$
|
539,209
|
|
0.86%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.84%
|
|
to
|
|
13.18%
|
|
|||||||||||||||||||||
Prudential Natural Resources Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
24,340
|
|
$
|
6.25772
|
|
to
|
|
$
|
15.59396
|
|
$
|
362,530
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-20.61%
|
|
to
|
|
-20.38%
|
|
|||||||||||||||||||||
December 31, 2013
|
25,486
|
|
$
|
7.88268
|
|
to
|
|
$
|
19.58473
|
|
$
|
477,572
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.24%
|
|
to
|
|
9.57%
|
|
|||||||||||||||||||||
December 31, 2012
|
27,457
|
|
$
|
7.21567
|
|
to
|
|
$
|
17.87411
|
|
$
|
470,474
|
|
0.46%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-3.34%
|
|
to
|
|
-3.05%
|
|
|||||||||||||||||||||
December 31, 2011
|
29,978
|
|
$
|
7.46526
|
|
to
|
|
$
|
18.43714
|
|
$
|
530,723
|
|
0.19%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-19.76%
|
|
to
|
|
-19.52%
|
|
|||||||||||||||||||||
December 31, 2010
|
31,874
|
|
$
|
9.30318
|
|
to
|
|
$
|
22.90801
|
|
$
|
702,597
|
|
0.42%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
26.84%
|
|
to
|
|
27.22%
|
|
|||||||||||||||||||||
Prudential Global Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
115,457
|
|
$
|
2.53077
|
|
to
|
|
$
|
3.29027
|
|
$
|
372,020
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
2.33%
|
|
to
|
|
2.64%
|
|
|||||||||||||||||||||
December 31, 2013
|
118,832
|
|
$
|
2.46585
|
|
to
|
|
$
|
3.20572
|
|
$
|
373,319
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
26.15%
|
|
to
|
|
26.53%
|
|
|||||||||||||||||||||
December 31, 2012
|
121,375
|
|
$
|
1.94888
|
|
to
|
|
$
|
2.53361
|
|
$
|
301,657
|
|
1.60%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
16.47%
|
|
to
|
|
16.82%
|
|
|||||||||||||||||||||
December 31, 2011
|
126,873
|
|
$
|
1.66832
|
|
to
|
|
$
|
2.16888
|
|
$
|
270,175
|
|
1.55%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-7.80%
|
|
to
|
|
-7.53%
|
|
|||||||||||||||||||||
December 31, 2010
|
130,230
|
|
$
|
1.80416
|
|
to
|
|
$
|
2.34543
|
|
$
|
300,596
|
|
1.56%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.74%
|
|
to
|
|
12.08%
|
|
Note 7:
|
Financial Highlights (Continued)
|
At year ended
|
For year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||
Units
(000s)
|
Unit Value
Lowest — Highest
|
Net
Assets
(000s)
|
Investment
Income
Ratio*
|
Expense Ratio**
Lowest — Highest
|
Total Return***
Lowest — Highest
|
|||||||||||||||||||||||||||||||||||||||||||
Prudential Government Income Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
24,542
|
|
$
|
2.26977
|
|
to
|
|
$
|
4.26864
|
|
$
|
101,184
|
|
0.35%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.92%
|
|
to
|
|
5.23%
|
|
|||||||||||||||||||||
December 31, 2013
|
25,717
|
|
$
|
2.16335
|
|
to
|
|
$
|
4.05652
|
|
$
|
100,914
|
|
1.77%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-3.21%
|
|
to
|
|
-2.92%
|
|
|||||||||||||||||||||
December 31, 2012
|
27,868
|
|
$
|
2.23487
|
|
to
|
|
$
|
4.17862
|
|
$
|
112,832
|
|
2.07%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
2.70%
|
|
to
|
|
3.01%
|
|
|||||||||||||||||||||
December 31, 2011
|
29,520
|
|
$
|
2.17589
|
|
to
|
|
$
|
4.05654
|
|
$
|
116,256
|
|
2.46%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.67%
|
|
to
|
|
6.99%
|
|
|||||||||||||||||||||
December 31, 2010
|
30,311
|
|
$
|
2.03984
|
|
to
|
|
$
|
3.79159
|
|
$
|
111,678
|
|
2.87%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.03%
|
|
to
|
|
6.35%
|
|
|||||||||||||||||||||
Prudential Jennison Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
136,352
|
|
$
|
3.51499
|
|
to
|
|
$
|
5.06607
|
|
$
|
669,063
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.01%
|
|
to
|
|
9.33%
|
|
|||||||||||||||||||||
December 31, 2013
|
140,932
|
|
$
|
3.21491
|
|
to
|
|
$
|
4.63364
|
|
$
|
633,055
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
36.43%
|
|
to
|
|
36.84%
|
|
|||||||||||||||||||||
December 31, 2012
|
146,412
|
|
$
|
2.34944
|
|
to
|
|
$
|
3.38627
|
|
$
|
481,043
|
|
0.16%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.14%
|
|
to
|
|
15.49%
|
|
|||||||||||||||||||||
December 31, 2011
|
152,159
|
|
$
|
2.03440
|
|
to
|
|
$
|
2.93214
|
|
$
|
433,243
|
|
0.30%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.59%
|
|
to
|
|
-0.30%
|
|
|||||||||||||||||||||
December 31, 2010
|
159,802
|
|
$
|
2.04042
|
|
to
|
|
$
|
2.94085
|
|
$
|
456,710
|
|
0.43%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.95%
|
|
to
|
|
11.28%
|
|
|||||||||||||||||||||
Prudential Small Capitalization Stock Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
57,344
|
|
$
|
5.85168
|
|
to
|
|
$
|
7.04589
|
|
$
|
394,512
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.45%
|
|
to
|
|
4.76%
|
|
|||||||||||||||||||||
December 31, 2013
|
60,427
|
|
$
|
5.60240
|
|
to
|
|
$
|
6.72562
|
|
$
|
397,225
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
39.69%
|
|
to
|
|
40.11%
|
|
|||||||||||||||||||||
December 31, 2012
|
61,821
|
|
$
|
4.01045
|
|
to
|
|
$
|
4.80032
|
|
$
|
290,293
|
|
0.61%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
14.99%
|
|
to
|
|
15.33%
|
|
|||||||||||||||||||||
December 31, 2011
|
65,520
|
|
$
|
3.48765
|
|
to
|
|
$
|
4.16212
|
|
$
|
267,040
|
|
0.80%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-0.33%
|
|
to
|
|
-0.04%
|
|
|||||||||||||||||||||
December 31, 2010
|
68,839
|
|
$
|
3.49934
|
|
to
|
|
$
|
4.16370
|
|
$
|
281,044
|
|
0.81%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
24.81%
|
|
to
|
|
25.18%
|
|
|||||||||||||||||||||
T. Rowe Price International Stock Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
832
|
|
$
|
1.61078
|
|
to
|
|
$
|
1.61078
|
|
$
|
1,341
|
|
1.05%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
-1.83%
|
|
to
|
|
-1.83%
|
|
|||||||||||||||||||||
December 31, 2013
|
875
|
|
$
|
1.64081
|
|
to
|
|
$
|
1.64081
|
|
$
|
1,436
|
|
0.88%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
13.38%
|
|
to
|
|
13.38%
|
|
|||||||||||||||||||||
December 31, 2012
|
895
|
|
$
|
1.44721
|
|
to
|
|
$
|
1.44721
|
|
$
|
1,296
|
|
1.29%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
17.73%
|
|
to
|
|
17.73%
|
|
|||||||||||||||||||||
December 31, 2011
|
943
|
|
$
|
1.22924
|
|
to
|
|
$
|
1.22924
|
|
$
|
1,159
|
|
1.53%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
-13.35%
|
|
to
|
|
-13.35%
|
|
|||||||||||||||||||||
December 31, 2010
|
1,014
|
|
$
|
1.41870
|
|
to
|
|
$
|
1.41870
|
|
$
|
1,439
|
|
0.79%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
13.77%
|
|
to
|
|
13.77%
|
|
|||||||||||||||||||||
Janus Aspen Janus Portfolio – Institutional Shares
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
1,687
|
|
$
|
2.57157
|
|
to
|
|
$
|
2.57157
|
|
$
|
4,338
|
|
0.29%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
12.32%
|
|
to
|
|
12.32%
|
|
|||||||||||||||||||||
December 31, 2013
|
4,177
|
|
$
|
2.28947
|
|
to
|
|
$
|
2.28947
|
|
$
|
9,564
|
|
0.79%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
29.56%
|
|
to
|
|
29.56%
|
|
|||||||||||||||||||||
December 31, 2012
|
4,429
|
|
$
|
1.76711
|
|
to
|
|
$
|
1.76711
|
|
$
|
7,826
|
|
0.56%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
17.88%
|
|
to
|
|
17.88%
|
|
|||||||||||||||||||||
December 31, 2011
|
4,674
|
|
$
|
1.49905
|
|
to
|
|
$
|
1.49905
|
|
$
|
7,007
|
|
0.59%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
-5.87%
|
|
to
|
|
-5.87%
|
|
|||||||||||||||||||||
December 31, 2010
|
4,566
|
|
$
|
1.59246
|
|
to
|
|
$
|
1.59246
|
|
$
|
7,271
|
|
0.60%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
13.84%
|
|
to
|
|
13.84%
|
|
|||||||||||||||||||||
MFS® Growth Series – Initial Class
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
1,276
|
|
$
|
3.03178
|
|
to
|
|
$
|
3.03178
|
|
$
|
3,867
|
|
0.10%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
8.29%
|
|
to
|
|
8.29%
|
|
|||||||||||||||||||||
December 31, 2013
|
1,332
|
|
$
|
2.79961
|
|
to
|
|
$
|
2.79961
|
|
$
|
3,729
|
|
0.23%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
36.04%
|
|
to
|
|
36.04%
|
|
|||||||||||||||||||||
December 31, 2012
|
1,410
|
|
$
|
2.05794
|
|
to
|
|
$
|
2.05794
|
|
$
|
2,901
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
16.69%
|
|
to
|
|
16.69%
|
|
|||||||||||||||||||||
December 31, 2011
|
1,495
|
|
$
|
1.76366
|
|
to
|
|
$
|
1.76366
|
|
$
|
2,637
|
|
0.19%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
-0.92%
|
|
to
|
|
-0.92%
|
|
|||||||||||||||||||||
December 31, 2010
|
1,530
|
|
$
|
1.78000
|
|
to
|
|
$
|
1.78000
|
|
$
|
2,724
|
|
0.12%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
14.65%
|
|
to
|
|
14.65%
|
|
|||||||||||||||||||||
VP Value Fund – Class I
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
892
|
|
$
|
3.60982
|
|
to
|
|
$
|
3.60982
|
|
$
|
3,220
|
|
1.54%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
12.41%
|
|
to
|
|
12.41%
|
|
|||||||||||||||||||||
December 31, 2013
|
910
|
|
$
|
3.21142
|
|
to
|
|
$
|
3.21142
|
|
$
|
2,921
|
|
1.65%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
30.95%
|
|
to
|
|
30.95%
|
|
|||||||||||||||||||||
December 31, 2012
|
978
|
|
$
|
2.45244
|
|
to
|
|
$
|
2.45244
|
|
$
|
2,399
|
|
1.94%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
13.89%
|
|
to
|
|
13.89%
|
|
|||||||||||||||||||||
December 31, 2011
|
1,008
|
|
$
|
2.15339
|
|
to
|
|
$
|
2.15339
|
|
$
|
2,170
|
|
2.03%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
0.41%
|
|
to
|
|
0.41%
|
|
|||||||||||||||||||||
December 31, 2010
|
1,048
|
|
$
|
2.14451
|
|
to
|
|
$
|
2.14451
|
|
$
|
2,247
|
|
2.20%
|
|
0.60%
|
|
to
|
|
0.60%
|
|
12.75%
|
|
to
|
|
12.75%
|
|
|||||||||||||||||||||
Prudential SP Small Cap Value Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
1,604
|
|
$
|
2.43726
|
|
to
|
|
$
|
2.53207
|
|
$
|
3,924
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.00%
|
|
to
|
|
4.31%
|
|
|||||||||||||||||||||
December 31, 2013
|
1,744
|
|
$
|
2.34350
|
|
to
|
|
$
|
2.42740
|
|
$
|
4,099
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
36.22%
|
|
to
|
|
36.63%
|
|
|||||||||||||||||||||
December 31, 2012
|
1,901
|
|
$
|
1.72035
|
|
to
|
|
$
|
1.77665
|
|
$
|
3,279
|
|
0.45%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.01%
|
|
to
|
|
15.36%
|
|
|||||||||||||||||||||
December 31, 2011
|
2,074
|
|
$
|
1.49578
|
|
to
|
|
$
|
1.54003
|
|
$
|
3,109
|
|
0.68%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-3.63%
|
|
to
|
|
-3.35%
|
|
|||||||||||||||||||||
December 31, 2010
|
1,980
|
|
$
|
1.55216
|
|
to
|
|
$
|
1.59336
|
|
$
|
3,080
|
|
1.49%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
25.14%
|
|
to
|
|
25.51%
|
|
|||||||||||||||||||||
Janus Aspen Janus Portfolio – Service Shares
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
57
|
|
$
|
1.94264
|
|
to
|
|
$
|
1.94264
|
|
$
|
110
|
|
0.20%
|
|
0.90%
|
|
to
|
|
0.90%
|
|
11.73%
|
|
to
|
|
11.73%
|
|
|||||||||||||||||||||
December 31, 2013
|
122
|
|
$
|
1.73869
|
|
to
|
|
$
|
1.73869
|
|
$
|
212
|
|
0.70%
|
|
0.90%
|
|
to
|
|
0.90%
|
|
28.84%
|
|
to
|
|
28.84%
|
|
|||||||||||||||||||||
December 31, 2012
|
183
|
|
$
|
1.34952
|
|
to
|
|
$
|
1.34952
|
|
$
|
246
|
|
0.45%
|
|
0.90%
|
|
to
|
|
0.90%
|
|
17.23%
|
|
to
|
|
17.23%
|
|
|||||||||||||||||||||
December 31, 2011
|
185
|
|
$
|
1.15117
|
|
to
|
|
$
|
1.15117
|
|
$
|
213
|
|
0.44%
|
|
0.90%
|
|
to
|
|
0.90%
|
|
-6.38%
|
|
to
|
|
-6.38%
|
|
|||||||||||||||||||||
December 31, 2010
|
188
|
|
$
|
1.22968
|
|
to
|
|
$
|
1.22968
|
|
$
|
231
|
|
0.34%
|
|
0.90%
|
|
to
|
|
0.90%
|
|
13.24%
|
|
to
|
|
13.24%
|
|
|||||||||||||||||||||
Prudential SP Prudential U.S. Emerging Growth Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
343
|
|
$
|
3.25145
|
|
to
|
|
$
|
3.37589
|
|
$
|
1,133
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
8.53%
|
|
to
|
|
8.86%
|
|
|||||||||||||||||||||
December 31, 2013
|
418
|
|
$
|
2.99578
|
|
to
|
|
$
|
3.10122
|
|
$
|
1,268
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
27.33%
|
|
to
|
|
27.70%
|
|
|||||||||||||||||||||
December 31, 2012
|
529
|
|
$
|
2.35286
|
|
to
|
|
$
|
2.42843
|
|
$
|
1,256
|
|
0.41%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.83%
|
|
to
|
|
16.18%
|
|
|||||||||||||||||||||
December 31, 2011
|
474
|
|
$
|
2.03123
|
|
to
|
|
$
|
2.09028
|
|
$
|
972
|
|
0.64%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
1.31%
|
|
to
|
|
1.61%
|
|
|||||||||||||||||||||
December 31, 2010
|
612
|
|
$
|
2.00503
|
|
to
|
|
$
|
2.05721
|
|
$
|
1,236
|
|
0.42%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
19.36%
|
|
to
|
|
19.72%
|
|
Note 7:
|
Financial Highlights (Continued)
|
At year ended
|
For year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||
Units
(000s)
|
Unit Value
Lowest — Highest
|
Net
Assets
(000s)
|
Investment
Income
Ratio*
|
Expense Ratio**
Lowest — Highest
|
Total Return***
Lowest — Highest
|
|||||||||||||||||||||||||||||||||||||||||||
Prudential SP International Growth Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
1,462
|
|
$
|
1.72387
|
|
to
|
|
$
|
1.79034
|
|
$
|
2,528
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-6.55%
|
|
to
|
|
-6.28%
|
|
|||||||||||||||||||||
December 31, 2013
|
1,524
|
|
$
|
1.84472
|
|
to
|
|
$
|
1.91031
|
|
$
|
2,820
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
17.81%
|
|
to
|
|
18.16%
|
|
|||||||||||||||||||||
December 31, 2012
|
1,949
|
|
$
|
1.56590
|
|
to
|
|
$
|
1.61675
|
|
$
|
3,058
|
|
0.67%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
21.30%
|
|
to
|
|
21.66%
|
|
|||||||||||||||||||||
December 31, 2011
|
1,709
|
|
$
|
1.29088
|
|
to
|
|
$
|
1.32890
|
|
$
|
2,211
|
|
1.30%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-15.67%
|
|
to
|
|
-15.42%
|
|
|||||||||||||||||||||
December 31, 2010
|
1,670
|
|
$
|
1.53081
|
|
to
|
|
$
|
1.57109
|
|
$
|
2,562
|
|
1.62%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.99%
|
|
to
|
|
13.33%
|
|
|||||||||||||||||||||
Prudential SP International Value Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
580
|
|
$
|
1.77683
|
|
to
|
|
$
|
1.84503
|
|
$
|
1,045
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-6.88%
|
|
to
|
|
-6.59%
|
|
|||||||||||||||||||||
December 31, 2013
|
662
|
|
$
|
1.90804
|
|
to
|
|
$
|
1.97528
|
|
$
|
1,278
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
19.02%
|
|
to
|
|
19.38%
|
|
|||||||||||||||||||||
December 31, 2012
|
846
|
|
$
|
1.60310
|
|
to
|
|
$
|
1.65466
|
|
$
|
1,367
|
|
2.41%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.87%
|
|
to
|
|
16.23%
|
|
|||||||||||||||||||||
December 31, 2011
|
1,298
|
|
$
|
1.38350
|
|
to
|
|
$
|
1.42366
|
|
$
|
1,804
|
|
2.50%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-13.87%
|
|
to
|
|
-13.62%
|
|
|||||||||||||||||||||
December 31, 2010
|
2,669
|
|
$
|
1.60633
|
|
to
|
|
$
|
1.64809
|
|
$
|
4,295
|
|
2.12%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.82%
|
|
to
|
|
10.15%
|
|
|||||||||||||||||||||
AST Loomis Sayles Large-Cap Growth Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
11
|
|
$
|
15.07361
|
|
to
|
|
$
|
15.37594
|
|
$
|
171
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.60%
|
|
to
|
|
9.93%
|
|
|||||||||||||||||||||
December 31, 2013
|
14
|
|
$
|
13.75290
|
|
to
|
|
$
|
13.98705
|
|
$
|
193
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
35.39%
|
|
to
|
|
35.80%
|
|
|||||||||||||||||||||
December 31, 2012
|
13
|
|
$
|
10.15783
|
|
to
|
|
$
|
10.29999
|
|
$
|
137
|
|
0.44%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.26%
|
|
to
|
|
11.60%
|
|
|||||||||||||||||||||
December 31, 2011
|
15
|
|
$
|
9.12944
|
|
to
|
|
$
|
9.22964
|
|
$
|
133
|
|
0.26%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-1.80%
|
|
to
|
|
-1.50%
|
|
|||||||||||||||||||||
December 31, 2010
|
15
|
|
$
|
9.29647
|
|
to
|
|
$
|
9.37061
|
|
$
|
142
|
|
0.56%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
18.68%
|
|
to
|
|
19.04%
|
|
|||||||||||||||||||||
AST T. Rowe Price Large-Cap Growth Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
49
|
|
$
|
18.98799
|
|
to
|
|
$
|
19.36865
|
|
$
|
925
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
7.38%
|
|
to
|
|
7.70%
|
|
|||||||||||||||||||||
December 31, 2013
|
48
|
|
$
|
17.68319
|
|
to
|
|
$
|
17.98404
|
|
$
|
854
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
42.74%
|
|
to
|
|
43.17%
|
|
|||||||||||||||||||||
December 31, 2012
|
22
|
|
$
|
12.38824
|
|
to
|
|
$
|
12.56164
|
|
$
|
270
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
16.53%
|
|
to
|
|
16.88%
|
|
|||||||||||||||||||||
December 31, 2011
|
21
|
|
$
|
10.63060
|
|
to
|
|
$
|
10.74733
|
|
$
|
225
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-2.57%
|
|
to
|
|
-2.28%
|
|
|||||||||||||||||||||
December 31, 2010
|
101
|
|
$
|
10.91116
|
|
to
|
|
$
|
10.99826
|
|
$
|
1,108
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
14.78%
|
|
to
|
|
15.12%
|
|
|||||||||||||||||||||
AST Large-Cap Value Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
29
|
|
$
|
14.00308
|
|
to
|
|
$
|
14.28429
|
|
$
|
402
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.73%
|
|
to
|
|
13.07%
|
|
|||||||||||||||||||||
December 31, 2013
|
33
|
|
$
|
12.42155
|
|
to
|
|
$
|
12.63333
|
|
$
|
413
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
38.61%
|
|
to
|
|
39.03%
|
|
|||||||||||||||||||||
December 31, 2012
|
50
|
|
$
|
8.96129
|
|
to
|
|
$
|
9.08707
|
|
$
|
448
|
|
3.39%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
15.84%
|
|
to
|
|
16.19%
|
|
|||||||||||||||||||||
December 31, 2011
|
50
|
|
$
|
7.73572
|
|
to
|
|
$
|
7.82097
|
|
$
|
386
|
|
1.31%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-5.04%
|
|
to
|
|
-4.75%
|
|
|||||||||||||||||||||
December 31, 2010
|
62
|
|
$
|
8.14625
|
|
to
|
|
$
|
8.21137
|
|
$
|
503
|
|
1.03%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
12.15%
|
|
to
|
|
12.48%
|
|
|||||||||||||||||||||
AST Small-Cap Growth Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
18
|
|
$
|
18.30683
|
|
to
|
|
$
|
18.67426
|
|
$
|
332
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
2.89%
|
|
to
|
|
3.20%
|
|
|||||||||||||||||||||
December 31, 2013
|
23
|
|
$
|
17.79202
|
|
to
|
|
$
|
18.09511
|
|
$
|
405
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
33.97%
|
|
to
|
|
34.37%
|
|
|||||||||||||||||||||
December 31, 2012
|
39
|
|
$
|
13.28088
|
|
to
|
|
$
|
13.46694
|
|
$
|
522
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.17%
|
|
to
|
|
11.51%
|
|
|||||||||||||||||||||
December 31, 2011
|
54
|
|
$
|
11.94595
|
|
to
|
|
$
|
12.07721
|
|
$
|
649
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-1.86%
|
|
to
|
|
-1.57%
|
|
|||||||||||||||||||||
December 31, 2010
|
155
|
|
$
|
12.17259
|
|
to
|
|
$
|
12.26979
|
|
$
|
1,891
|
|
0.23%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
35.20%
|
|
to
|
|
35.60%
|
|
|||||||||||||||||||||
AST PIMCO Total Return Bond Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
472
|
|
$
|
11.80815
|
|
to
|
|
$
|
11.98785
|
|
$
|
5,576
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
3.30%
|
|
to
|
|
3.61%
|
|
|||||||||||||||||||||
December 31, 2013
|
480
|
|
$
|
11.43076
|
|
to
|
|
$
|
11.57027
|
|
$
|
5,489
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-2.71%
|
|
to
|
|
-2.42%
|
|
|||||||||||||||||||||
December 31, 2012
|
503
|
|
$
|
11.74949
|
|
to
|
|
$
|
11.85752
|
|
$
|
5,918
|
|
2.75%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
8.35%
|
|
to
|
|
8.67%
|
|
|||||||||||||||||||||
December 31, 2011
|
562
|
|
$
|
10.84440
|
|
to
|
|
$
|
10.91145
|
|
$
|
6,101
|
|
1.79%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
2.26%
|
|
to
|
|
2.56%
|
|
|||||||||||||||||||||
December 31, 2010
|
613
|
|
$
|
10.60498
|
|
to
|
|
$
|
10.63896
|
|
$
|
6,506
|
|
1.82%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
6.76%
|
|
to
|
|
7.08%
|
|
|||||||||||||||||||||
AST Wellington Management Hedged Equity Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
109
|
|
$
|
15.25259
|
|
to
|
|
$
|
15.48767
|
|
$
|
1,667
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.56%
|
|
to
|
|
4.88%
|
|
|||||||||||||||||||||
December 31, 2013
|
105
|
|
$
|
14.58693
|
|
to
|
|
$
|
14.76772
|
|
$
|
1,527
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
19.43%
|
|
to
|
|
19.78%
|
|
|||||||||||||||||||||
December 31, 2012
|
106
|
|
$
|
12.21399
|
|
to
|
|
$
|
12.32862
|
|
$
|
1,301
|
|
0.29%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.02%
|
|
to
|
|
10.35%
|
|
|||||||||||||||||||||
December 31, 2011
|
109
|
|
$
|
11.10187
|
|
to
|
|
$
|
11.17269
|
|
$
|
1,207
|
|
0.31%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-4.32%
|
|
to
|
|
-4.03%
|
|
|||||||||||||||||||||
December 31, 2010
|
113
|
|
$
|
11.60267
|
|
to
|
|
$
|
11.64196
|
|
$
|
1,306
|
|
0.49%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
13.61%
|
|
to
|
|
13.95%
|
|
|||||||||||||||||||||
AST Balanced Asset Allocation Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
97
|
|
$
|
15.13278
|
|
to
|
|
$
|
15.36580
|
|
$
|
1,478
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
5.57%
|
|
to
|
|
5.89%
|
|
|||||||||||||||||||||
December 31, 2013
|
100
|
|
$
|
14.33414
|
|
to
|
|
$
|
14.51163
|
|
$
|
1,434
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
16.60%
|
|
to
|
|
16.95%
|
|
|||||||||||||||||||||
December 31, 2012
|
98
|
|
$
|
12.29364
|
|
to
|
|
$
|
12.40891
|
|
$
|
1,203
|
|
0.90%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.47%
|
|
to
|
|
11.81%
|
|
|||||||||||||||||||||
December 31, 2011
|
120
|
|
$
|
11.02843
|
|
to
|
|
$
|
11.09867
|
|
$
|
1,327
|
|
0.59%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-2.10%
|
|
to
|
|
-1.81%
|
|
|||||||||||||||||||||
December 31, 2010
|
113
|
|
$
|
11.26449
|
|
to
|
|
$
|
10.30269
|
|
$
|
1,278
|
|
0.78%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
11.31%
|
|
to
|
|
11.64%
|
|
|||||||||||||||||||||
AST Preservation Asset Allocation Portfolio
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
31
|
|
$
|
13.63878
|
|
to
|
|
$
|
13.84816
|
|
$
|
422
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
4.83%
|
|
to
|
|
5.14%
|
|
|||||||||||||||||||||
December 31, 2013
|
36
|
|
$
|
13.01018
|
|
to
|
|
$
|
13.17071
|
|
$
|
475
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
8.24%
|
|
to
|
|
8.56%
|
|
|||||||||||||||||||||
December 31, 2012
|
42
|
|
$
|
12.01998
|
|
to
|
|
$
|
12.13215
|
|
$
|
506
|
|
1.13%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.39%
|
|
to
|
|
9.72%
|
|
|||||||||||||||||||||
December 31, 2011
|
46
|
|
$
|
10.98823
|
|
to
|
|
$
|
11.05766
|
|
$
|
502
|
|
0.91%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
0.10%
|
|
to
|
|
0.39%
|
|
|||||||||||||||||||||
December 31, 2010
|
52
|
|
$
|
10.97772
|
|
to
|
|
$
|
11.01429
|
|
$
|
576
|
|
1.41%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.58%
|
|
to
|
|
9.91%
|
|
Note 7:
|
Financial Highlights (Continued)
|
At year ended
|
For year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||
Units
(000s)
|
Unit Value
Lowest — Highest
|
Net
Assets
(000s)
|
Investment
Income
Ratio*
|
Expense Ratio**
Lowest — Highest
|
Total Return***
Lowest — Highest
|
|||||||||||||||||||||||||||||||||||||||||||
AST BlackRock Global Strategies Portfolio (available April 29, 2011)
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014
|
94
|
|
$
|
11.67068
|
|
to
|
|
$
|
11.79913
|
|
$
|
1,096
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
3.96%
|
|
to
|
|
4.27%
|
|
|||||||||||||||||||||
December 31, 2013
|
115
|
|
$
|
11.22618
|
|
to
|
|
$
|
11.31597
|
|
$
|
1,298
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
9.86%
|
|
to
|
|
10.19%
|
|
|||||||||||||||||||||
December 31, 2012
|
124
|
|
$
|
10.21817
|
|
to
|
|
$
|
10.26937
|
|
$
|
1,270
|
|
0.51%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
10.90%
|
|
to
|
|
11.23%
|
|
|||||||||||||||||||||
December 31, 2011
|
145
|
|
$
|
9.21410
|
|
to
|
|
$
|
9.23263
|
|
$
|
1,338
|
|
0.00%
|
|
0.60%
|
|
to
|
|
0.90%
|
|
-7.86%
|
|
to
|
|
-7.67%
|
|
*
|
These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying Portfolio, net of management fees assessed by the fund manager, divided by the average net assets. These ratios are annualized and exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying Portfolio in which the subaccount invests.
|
**
|
These amounts represent the annualized contract expenses of the Account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Portfolio are excluded.
|
***
|
These amounts represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Product designs within a subaccount no activity during the period were excluded from the range of total return for that period. Product designs within a subaccount which were offered after a fiscal year began are included in the range of total return for that period, and their respective total returns may not correspond to the total returns of a product offering with a comparable expense ratio that was presented for the full period. Contract owners may experience different total returns based on their investment options. Investment options with a date notation indicate the effective date of that investment option in the Account. Total returns for periods less than one year are not annualized. The total return is calculated for each of the five years in the period ended December 31, 2014 or from the effective date of the subaccount through the end of the reporting period.
|
(1)
|
Amount is less than 0.01%.
|
Note 7:
|
Financial Highlights (Continued)
|
•
|
The Account charges from $0 to $83.34 per $1,000 of basic insurance amount for the cost of insurance plus additional mortality for extra ratings of up to $2.08 per $1,000 of basic insurance amount.
|
•
|
The Account charges a Guaranteed Death Benefit fee of $0.01 per $1,000 of basic insurance amount.
|
•
|
The charge for withdrawals range from the lesser of $15 and 2% to the lesser of $25 and 2% of the withdrawal amount.
|
•
|
The Account charges monthly administrative fees that range from $0 to $10 per Contract plus $0.01 to $0.08 per $1,000 of basic insurance amount, although it may be less for subsequent increases.
|
•
|
The Account also charges $15 to $25 per change to the basic insurance amount.
|
Note 8:
|
Other
|
|
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
|||||||
|
|
|||||||
|
Consolidated Statements of Financial Position
|
|||||||
|
December 31, 2014 and 2013 (in millions, except share amounts)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
||
Fixed maturities, available for sale, at fair value (amortized cost: 2014-$152,877; 2013-$150,366)
|
|
$
|
164,589
|
|
$
|
155,019
|
||
Trading account assets supporting insurance liabilities, at fair value
|
|
|
18,345
|
|
|
18,895
|
||
Other trading account assets, at fair value
|
|
|
4,795
|
|
|
2,948
|
||
Equity securities, available for sale, at fair value (cost: 2014-$4,396; 2013-$4,358)
|
|
|
6,325
|
|
|
6,421
|
||
Commercial mortgage and other loans
|
|
|
39,030
|
|
|
35,249
|
||
Policy loans
|
|
|
8,857
|
|
|
8,749
|
||
Other long-term investments (includes $1,081 and $873 measured at fair value under the fair value
|
|
|
|
|
|
|
||
|
option at December 31, 2014 and 2013, respectively)
|
|
|
8,829
|
|
|
7,860
|
|
Short-term investments and other
|
|
|
5,574
|
|
|
6,283
|
||
|
|
Total investments
|
|
|
256,344
|
|
|
241,424
|
Cash and cash equivalents
|
|
|
3,834
|
|
|
2,760
|
||
Accrued investment income
|
|
|
1,991
|
|
|
2,000
|
||
Deferred policy acquisition costs
|
|
|
10,202
|
|
|
10,210
|
||
Value of business acquired
|
|
|
1,243
|
|
|
1,596
|
||
Other assets
|
|
|
8,762
|
|
|
9,319
|
||
Due from parent and affiliates
|
|
|
15,206
|
|
|
7,497
|
||
Separate account assets
|
|
|
250,229
|
|
|
237,031
|
||
|
|
TOTAL ASSETS
|
|
$
|
547,811
|
|
$
|
511,837
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
||
LIABILITIES
|
|
|
|
|
|
|
||
Future policy benefits
|
|
$
|
127,437
|
|
$
|
115,717
|
||
Policyholders' account balances
|
|
|
88,795
|
|
|
86,697
|
||
Policyholders' dividends
|
|
|
7,568
|
|
|
5,425
|
||
Securities sold under agreements to repurchase
|
|
|
9,407
|
|
|
7,898
|
||
Cash collateral for loaned securities
|
|
|
4,236
|
|
|
4,992
|
||
Income taxes
|
|
|
4,782
|
|
|
1,975
|
||
Short-term debt
|
|
|
2,106
|
|
|
1,613
|
||
Long-term debt
|
|
|
9,670
|
|
|
11,570
|
||
Other liabilities
|
|
|
7,292
|
|
|
9,045
|
||
Due to parent and affiliates
|
|
|
11,255
|
|
|
9,340
|
||
Separate account liabilities
|
|
|
250,229
|
|
|
237,031
|
||
|
|
Total liabilities
|
|
|
522,777
|
|
|
491,303
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 22)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
||
Common Stock ($5.00 par value; 500,000 shares authorized, issued and outstanding at
|
|
|
|
|
|
|
||
|
at December 31, 2014 and 2013)
|
|
|
2
|
|
|
2
|
|
Additional paid-in capital
|
|
|
19,078
|
|
|
18,968
|
||
Accumulated other comprehensive income
|
|
|
2,812
|
|
|
98
|
||
Retained earnings
|
|
|
3,094
|
|
|
1,462
|
||
|
Total Prudential Insurance Company of America's equity
|
|
|
24,986
|
|
|
20,530
|
|
Noncontrolling interests
|
|
|
48
|
|
|
4
|
||
|
Total equity
|
|
|
25,034
|
|
|
20,534
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
547,811
|
|
$
|
511,837
|
|
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
||||||||||
|
|
||||||||||
|
Consolidated Statements of Operations
|
||||||||||
|
Years Ended December 31, 2014, 2013 and 2012 (in millions)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
||
Premiums
|
|
$
|
16,523
|
|
$
|
10,806
|
|
$
|
42,466
|
||
Policy charges and fee income
|
|
|
4,847
|
|
|
4,172
|
|
|
3,168
|
||
Net investment income
|
|
|
10,586
|
|
|
10,063
|
|
|
8,891
|
||
Asset management and service fees
|
|
|
887
|
|
|
848
|
|
|
751
|
||
Other income
|
|
|
787
|
|
|
150
|
|
|
852
|
||
Realized investment gains (losses), net:
|
|
|
|
|
|
|
|
|
|
||
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
|
(116)
|
|
|
(1,024)
|
|
|
(1,417)
|
|
|
Other-than-temporary impairments on fixed maturity securities transferred to
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
73
|
|
|
856
|
|
|
1,264
|
|
|
Other realized investment gains (losses), net
|
|
|
3,884
|
|
|
(2,394)
|
|
|
230
|
|
|
Total realized investment gains (losses), net
|
|
|
3,841
|
|
|
(2,562)
|
|
|
77
|
|
Total revenues
|
|
|
37,471
|
|
|
23,477
|
|
|
56,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFITS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||
Policyholders' benefits
|
|
|
20,754
|
|
|
13,626
|
|
|
45,357
|
||
Interest credited to policyholders' account balances
|
|
|
2,908
|
|
|
1,777
|
|
|
2,870
|
||
Dividends to policyholders
|
|
|
2,656
|
|
|
1,942
|
|
|
2,052
|
||
Amortization of deferred policy acquisition costs
|
|
|
940
|
|
|
(205)
|
|
|
654
|
||
General and administrative expenses
|
|
|
5,235
|
|
|
4,784
|
|
|
4,250
|
||
|
Total benefits and expenses
|
|
|
32,493
|
|
|
21,924
|
|
|
55,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
|
|
|
|
|
|
|
||
AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES
|
|
|
4,978
|
|
|
1,553
|
|
|
1,022
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
Total income tax expense (benefit)
|
|
|
1,342
|
|
|
126
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS
|
|
|
|
|
|
|
|
|
|
||
OF OPERATING JOINT VENTURES
|
|
|
3,636
|
|
|
1,427
|
|
|
950
|
||
Equity in earnings of operating joint ventures, net of taxes
|
|
|
(10)
|
|
|
36
|
|
|
37
|
||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
|
3,626
|
|
|
1,463
|
|
|
987
|
||
Income (loss) from discontinued operations, net of taxes
|
|
|
7
|
|
|
(3)
|
|
|
(2)
|
||
NET INCOME (LOSS)
|
|
|
3,633
|
|
|
1,460
|
|
|
985
|
||
Less: Income (loss) attributable to noncontrolling interests
|
|
|
1
|
|
|
1
|
|
|
(1)
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
|
$
|
3,632
|
|
$
|
1,459
|
|
$
|
986
|
|
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
||||||||||
|
|
|
|
|
|||||||
|
Consolidated Statements of Comprehensive Income
|
||||||||||
|
Years Ended December 31, 2014, 2013 and 2012 (in millions)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
||
NET INCOME (LOSS)
|
|
$
|
3,633
|
|
$
|
1,460
|
|
$
|
985
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
||
|
Foreign currency translation adjustments for the period
|
|
|
(53)
|
|
|
7
|
|
|
6
|
|
|
Net unrealized investment gains (losses)
|
|
|
5,267
|
|
|
(5,638)
|
|
|
1,533
|
|
|
Defined benefit pension and postretirement unrecognized periodic benefit
|
|
|
(987)
|
|
|
846
|
|
|
(685)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,227
|
|
|
(4,785)
|
|
|
854
|
|
Less: Income tax expense (benefit) related to other comprehensive income (loss)
|
|
|
1,514
|
|
|
(1,671)
|
|
|
260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of taxes
|
|
|
2,713
|
|
|
(3,114)
|
|
|
594
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
6,346
|
|
|
(1,654)
|
|
|
1,579
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
|
|
0
|
|
|
1
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to Prudential Insurance Company of America
|
|
$
|
6,346
|
|
$
|
(1,655)
|
|
$
|
1,580
|
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Equity
|
|||||||||||||||||||||||
Years Ended December 31, 2014, 2013 and 2012 (in millions)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prudential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
|
|
Accumulated
|
|
Insurance
|
|
|
|
|
|||||
|
|
|
|
|
|
|
Additional
|
|
Earnings
|
|
Other
|
|
Company
|
|
|
|
|
||||||
|
|
|
|
Common
|
|
Paid-in
|
|
(Accumulated
|
|
Comprehensive
|
|
of America
|
|
Noncontrolling
|
|
Total
|
|||||||
|
|
|
|
Stock
|
|
Capital
|
|
Deficit)
|
|
Income (Loss)
|
|
Equity
|
|
Interests
|
|
Equity
|
|||||||
Balance, December 31, 2011
|
|
$
|
2
|
|
$
|
18,282
|
|
$
|
(109)
|
|
$
|
2,618
|
|
$
|
20,793
|
|
$
|
10
|
|
$
|
20,803
|
||
Dividends to parent
|
|
|
|
|
|
|
|
|
(600)
|
|
|
|
|
|
(600)
|
|
|
|
|
|
(600)
|
||
Assets purchased/transferred from affiliates
|
|
|
|
|
|
(35)
|
|
|
|
|
|
|
|
|
(35)
|
|
|
|
|
|
(35)
|
||
Long-term stock-based compensation program
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
22
|
||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
986
|
|
|
|
|
|
986
|
|
|
(1)
|
|
|
985
|
|
|
Other comprehensive income, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
594
|
|
|
594
|
|
|
|
|
|
594
|
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,580
|
|
|
(1)
|
|
|
1,579
|
||
Balance, December 31, 2012
|
|
|
2
|
|
|
18,269
|
|
|
277
|
|
|
3,212
|
|
|
21,760
|
|
|
9
|
|
|
21,769
|
||
Capital contributions from parent
|
|
|
|
|
|
712
|
|
|
|
|
|
|
|
|
712
|
|
|
|
|
|
712
|
||
Dividends to parent
|
|
|
|
|
|
|
|
|
(274)
|
|
|
|
|
|
(274)
|
|
|
|
|
|
(274)
|
||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
|
(6)
|
||
Assets purchased/transferred from affiliates
|
|
|
|
|
|
(25)
|
|
|
|
|
|
|
|
|
(25)
|
|
|
|
|
|
(25)
|
||
Long-term stock-based compensation program
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
12
|
||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
1,459
|
|
|
|
|
|
1,459
|
|
|
1
|
|
|
1,460
|
|
|
Other comprehensive income, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
(3,114)
|
|
|
(3,114)
|
|
|
|
|
|
(3,114)
|
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,655)
|
|
|
1
|
|
|
(1,654)
|
||
Balance, December 31, 2013
|
|
|
2
|
|
|
18,968
|
|
|
1,462
|
|
|
98
|
|
|
20,530
|
|
|
4
|
|
|
20,534
|
||
Capital contributions from parent
|
|
|
|
|
|
100
|
|
|
|
|
|
|
|
|
100
|
|
|
|
|
|
100
|
||
Dividends to parent
|
|
|
|
|
|
|
|
|
(2,000)
|
|
|
|
|
|
(2,000)
|
|
|
|
|
|
(2,000)
|
||
Contribution from noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45
|
|
|
45
|
||
Distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
(1)
|
||
Long-term stock-based compensation program
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
10
|
||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
3,632
|
|
|
|
|
|
3,632
|
|
|
1
|
|
|
3,633
|
|
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
2,714
|
|
|
2,714
|
|
|
(1)
|
|
|
2,713
|
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,346
|
|
|
0
|
|
|
6,346
|
||
Balance, December 31, 2014
|
|
$
|
2
|
|
$
|
19,078
|
|
$
|
3,094
|
|
$
|
2,812
|
|
$
|
24,986
|
|
$
|
48
|
|
$
|
25,034
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
|
||||||||||
|
|
||||||||||
|
Consolidated Statements of Cash Flows
|
||||||||||
|
Years Ended December 31, 2014, 2013 and 2012 (in millions)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||
Net income
|
|
$
|
3,633
|
|
$
|
1,460
|
|
$
|
985
|
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||
|
Realized investment (gains) losses, net
|
|
|
(3,841)
|
|
|
2,562
|
|
|
(77)
|
|
|
Policy charges and fee income
|
|
|
(1,765)
|
|
|
(1,335)
|
|
|
(1,001)
|
|
|
Interest credited to policyholders' account balances
|
|
|
2,908
|
|
|
1,777
|
|
|
2,871
|
|
|
Depreciation and amortization
|
|
|
443
|
|
|
19
|
|
|
(205)
|
|
|
(Gains) losses on trading account assets supporting insurance liabilities, net
|
|
|
(155)
|
|
|
718
|
|
|
(408)
|
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred policy acquisition costs
|
|
|
(329)
|
|
|
(1,797)
|
|
|
(1,229)
|
|
|
Future policy benefits and other insurance liabilities
|
|
|
4,496
|
|
|
(740)
|
|
|
2,321
|
|
|
Other trading account assets
|
|
|
(1,625)
|
|
|
1,251
|
|
|
1,404
|
|
|
Income taxes
|
|
|
283
|
|
|
(1,150)
|
|
|
824
|
|
|
Other, net
|
|
|
4,456
|
|
|
(744)
|
|
|
(2,643)
|
|
|
Cash flows from operating activities
|
|
|
8,504
|
|
|
2,021
|
|
|
2,842
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||
Proceeds from the sale/maturity/prepayment of:
|
|
|
|
|
|
|
|
|
|
||
|
Fixed maturities, available for sale
|
|
|
41,502
|
|
|
49,172
|
|
|
27,664
|
|
|
Trading account assets supporting insurance liabilities and other trading account assets
|
|
|
9,020
|
|
|
16,109
|
|
|
12,969
|
|
|
Equity securities, available for sale
|
|
|
4,326
|
|
|
3,431
|
|
|
3,345
|
|
|
Commercial mortgage and other loans
|
|
|
4,432
|
|
|
5,055
|
|
|
4,075
|
|
|
Policy loans
|
|
|
944
|
|
|
1,054
|
|
|
994
|
|
|
Other long-term investments
|
|
|
223
|
|
|
1,141
|
|
|
371
|
|
|
Short-term investments
|
|
|
58,289
|
|
|
45,050
|
|
|
17,476
|
|
Payments for the purchase/origination of:
|
|
|
|
|
|
|
|
|
|
||
|
Fixed maturities, available for sale
|
|
|
(41,988)
|
|
|
(49,095)
|
|
|
(27,872)
|
|
|
Trading account assets supporting insurance liabilities and other trading account assets
|
|
|
(8,706)
|
|
|
(17,039)
|
|
|
(13,206)
|
|
|
Equity securities, available for sale
|
|
|
(3,757)
|
|
|
(3,354)
|
|
|
(3,055)
|
|
|
Commercial mortgage and other loans
|
|
|
(8,208)
|
|
|
(8,883)
|
|
|
(6,018)
|
|
|
Policy loans
|
|
|
(663)
|
|
|
(642)
|
|
|
(783)
|
|
|
Other long-term investments
|
|
|
(1,849)
|
|
|
(1,968)
|
|
|
(1,308)
|
|
|
Short-term investments
|
|
|
(57,510)
|
|
|
(47,458)
|
|
|
(18,432)
|
|
Due to/from parent and affiliates
|
|
|
(1,071)
|
|
|
(649)
|
|
|
(1,210)
|
||
Acquisition of business, net of cash acquired
|
|
|
(23)
|
|
|
(488)
|
|
|
0
|
||
Other, net
|
|
|
492
|
|
|
(248)
|
|
|
83
|
||
|
|
Cash flows used in investing activities
|
|
|
(4,547)
|
|
|
(8,812)
|
|
|
(4,907)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||
Policyholders' account deposits
|
|
|
16,136
|
|
|
17,865
|
|
|
15,780
|
||
Policyholders' account withdrawals
|
|
|
(14,780)
|
|
|
(15,883)
|
|
|
(16,768)
|
||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities
|
|
|
752
|
|
|
3,308
|
|
|
704
|
||
Net change in financing arrangements (maturities 90 days or less)
|
|
|
73
|
|
|
30
|
|
|
(363)
|
||
Proceeds from the issuance of debt (maturities longer than 90 days)
|
|
|
1,768
|
|
|
1,242
|
|
|
2,803
|
||
Repayments of debt (maturities longer than 90 days)
|
|
|
(5,036)
|
|
|
(779)
|
|
|
(585)
|
||
Excess tax benefits from share-based payment arrangements
|
|
|
10
|
|
|
13
|
|
|
22
|
||
Capital contributions from parent
|
|
|
0
|
|
|
712
|
|
|
0
|
||
Dividends to parent
|
|
|
(2,000)
|
|
|
(232)
|
|
|
(600)
|
||
Other, net
|
|
|
215
|
|
|
(206)
|
|
|
138
|
||
|
|
Cash flows from financing activities
|
|
|
(2,862)
|
|
|
6,070
|
|
|
1,131
|
Effect of foreign exchange rate changes on cash balances
|
|
|
(21)
|
|
|
(6)
|
|
|
(7)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
1,074
|
|
|
(727)
|
|
|
(941)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
2,760
|
|
|
3,487
|
|
|
4,428
|
||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
3,834
|
|
$
|
2,760
|
|
$
|
3,487
|
||
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
||
Income taxes paid/(received)(1)
|
|
$
|
82
|
|
$
|
543
|
|
$
|
(211)
|
||
Interest paid
|
|
$
|
316
|
|
$
|
218
|
|
$
|
505
|
||
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH TRANSACTIONS DURING THE YEAR
|
|
|
|
|
|
|
|
|
|
||
Federal Home Loan Bank of New York debt reissued as funding agreements and reported as policyholders' account balances
|
|
$
|
0
|
|
$
|
0
|
|
$
|
445
|
||
Pension Risk Transfer transactions
|
|
|
|
|
|
|
|
|
|
||
|
Assets Received, excluding cash and cash equivalents
|
|
$
|
1,435
|
|
$
|
0
|
|
$
|
33,423
|
|
|
Liabilities assumed
|
|
|
4,653
|
|
|
0
|
|
|
33,423
|
|
|
|
Net cash received
|
|
$
|
3,218
|
|
$
|
0
|
|
$
|
0
|
Assets received from affiliates as repayment of affiliated loans
|
|
$
|
0
|
|
$
|
433
|
|
$
|
0
|
||
Non-cash dividend to parent
|
|
$
|
0
|
|
$
|
42
|
|
$
|
0
|
||
Non-cash capital contribution from parent
|
|
$
|
100
|
|
$
|
0
|
|
$
|
0
|
||
Acquisition of Gibraltar BSN Life Berhad (See Note 3):
|
|
|
|
|
|
|
|
|
|
|
Assets acquired, excluding cash and cash equivalents acquired
|
|
$
|
656
|
|
$
|
0
|
|
$
|
0
|
|
|
Liabilities assumed
|
|
|
586
|
|
|
0
|
|
|
0
|
|
|
Noncontrolling interest assumed
|
|
|
47
|
|
|
0
|
|
|
0
|
|
|
|
Net cash paid on acquisition
|
|
$
|
23
|
|
$
|
0
|
|
$
|
0
|
Acquisition of The Hartford's individual life business (See Note 3):
|
|
|
|
|
|
|
|
|
|
||
|
Assets acquired, excluding cash and cash equivalents acquired
|
|
$
|
0
|
|
$
|
11,056
|
|
$
|
0
|
|
|
Liabilities assumed
|
|
|
0
|
|
|
10,568
|
|
|
0
|
|
|
|
Net cash paid on acquisition
|
|
$
|
0
|
|
$
|
488
|
|
$
|
0
|
Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, including charges upon disposition, for the years ended December 31, are as
|
|||||||||
follows:
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
|
Real estate investments sold or held for sale(1)
|
|
$
|
10
|
|
$
|
(7)
|
|
$
|
(3)
|
||
|
Global commodities business
|
|
|
-
|
|
|
2
|
|
|
-
|
||
|
|
Income (loss) from discontinued operations before income taxes
|
|
|
10
|
|
|
(5)
|
|
|
(3)
|
|
|
|
|
Income tax (benefit) expense
|
|
|
4
|
|
|
(2)
|
|
|
(1)
|
|
|
Income (loss) from discontinued operations, net of taxes
|
|
$
|
6
|
|
$
|
(3)
|
|
$
|
(2)
|
|
|
|
|
|
December 31, 2014
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other-than-
|
|||
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
temporary
|
|||||
|
|
|
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
impairments
|
|||||
|
|
|
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
in AOCI(3)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||
Fixed maturities, available-for-sale
|
|
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
government authorities and agencies
|
|
$
|
10,584
|
|
$
|
2,186
|
|
$
|
2
|
|
$
|
12,768
|
|
$
|
0
|
||
Obligations of U.S. states and their political
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
subdivisions
|
|
|
5,307
|
|
|
579
|
|
|
3
|
|
|
5,883
|
|
|
0
|
||
Foreign government bonds
|
|
|
2,009
|
|
|
310
|
|
|
14
|
|
|
2,305
|
|
|
(1)
|
Corporate securities
|
|
|
107,943
|
|
|
9,008
|
|
|
1,032
|
|
|
115,919
|
|
|
(6)
|
|||
Asset-backed securities(1)
|
|
|
10,252
|
|
|
260
|
|
|
132
|
|
|
10,380
|
|
|
(582)
|
|||
Commercial mortgage-backed securities
|
|
|
12,803
|
|
|
358
|
|
|
38
|
|
|
13,123
|
|
|
(2)
|
|||
Residential mortgage-backed securities(2)
|
|
|
3,979
|
|
|
235
|
|
|
3
|
|
|
4,211
|
|
|
(5)
|
|||
|
Total fixed maturities, available-for-sale
|
|
$
|
152,877
|
|
$
|
12,936
|
|
$
|
1,224
|
|
$
|
164,589
|
|
$
|
(596)
|
||
Equity securities, available-for-sale
|
|
$
|
4,396
|
|
$
|
1,981
|
|
$
|
52
|
|
$
|
6,325
|
|
|
|
(1)
|
Includes credit-tranched securities collateralized by 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 other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $847 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
|
|
|
|
|
December 31, 2013
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other-than-
|
|||||
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
temporary
|
|||||
|
|
|
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
impairments
|
|||||
|
|
|
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
in AOCI(3)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||
Fixed maturities, available-for-sale
|
|
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
government authorities and agencies
|
|
$
|
8,537
|
|
$
|
847
|
|
$
|
56
|
|
$
|
9,328
|
|
$
|
0
|
||
Obligations of U.S. states and their political
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
subdivisions
|
|
|
3,131
|
|
|
150
|
|
|
136
|
|
|
3,145
|
|
|
0
|
||
Foreign government bonds
|
|
|
1,496
|
|
|
230
|
|
|
54
|
|
|
1,672
|
|
|
1
|
|||
Corporate securities
|
|
|
109,827
|
|
|
6,619
|
|
|
3,136
|
|
|
113,310
|
|
|
(4)
|
|||
Asset-backed securities(1)
|
|
|
9,981
|
|
|
170
|
|
|
301
|
|
|
9,850
|
|
|
(730)
|
|||
Commercial mortgage-backed securities
|
|
|
12,864
|
|
|
305
|
|
|
157
|
|
|
13,012
|
|
|
0
|
|||
Residential mortgage-backed securities(2)
|
|
|
4,530
|
|
|
204
|
|
|
32
|
|
|
4,702
|
|
|
(7)
|
|||
|
Total fixed maturities, available-for-sale
|
|
$
|
150,366
|
|
$
|
8,525
|
|
$
|
3,872
|
|
$
|
155,019
|
|
$
|
(740)
|
||
Equity securities, available-for-sale
|
|
$
|
4,358
|
|
$
|
2,078
|
|
$
|
15
|
|
$
|
6,421
|
|
|
|
(1)
|
Includes credit-tranched securities collateralized by 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 other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $786 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
|
|
|
|
|
Available-for-Sale
|
||||
|
|
|
|
|
Amortized
|
|
Fair
|
||
|
|
|
|
|
Cost
|
|
Value
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Due in one year or less
|
|
$
|
5,183
|
|
$
|
5,239
|
|||
Due after one year through five years
|
|
|
27,275
|
|
|
28,637
|
|||
Due after five years through ten years
|
|
|
31,724
|
|
|
33,477
|
|||
Due after ten years
|
|
|
61,661
|
|
|
69,522
|
|||
Asset-backed securities
|
|
|
10,252
|
|
|
10,380
|
|||
Commercial mortgage-backed securities
|
|
|
12,803
|
|
|
13,123
|
|||
Residential mortgage-backed securities
|
|
|
3,979
|
|
|
4,211
|
|||
|
Total
|
|
$
|
152,877
|
|
$
|
164,589
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fixed maturities, available-for-sale
|
|
|
||||||||||
|
|
Proceeds from sales
|
|
$
|
27,409
|
|
$
|
32,563
|
|
$
|
11,596
|
|
|
|
Proceeds from maturities/repayments
|
|
|
13,962
|
|
|
16,672
|
|
|
15,560
|
|
|
|
Gross investment gains from sales, prepayments, and maturities
|
|
|
969
|
|
|
563
|
|
|
419
|
|
|
|
Gross investment losses from sales and maturities
|
|
|
(335)
|
|
|
(1,282)
|
|
|
(118)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities, available-for-sale
|
|
|
|
|
|
|
|
|
|
|||
|
|
Proceeds from sales
|
|
$
|
4,326
|
|
$
|
3,431
|
|
$
|
3,342
|
|
|
|
Gross investment gains from sales
|
|
|
584
|
|
|
403
|
|
|
311
|
|
|
|
Gross investment losses from sales
|
|
|
(110)
|
|
|
(76)
|
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity and equity security impairments
|
|
|
|
|
|
|
|
|
|
|||
|
|
Net writedowns for other-than-temporary impairment losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
fixed maturities recognized in earnings(1)
|
|
$
|
(43)
|
|
$
|
(168)
|
|
$
|
(153)
|
|
|
Writedowns for impairments on equity securities
|
|
|
(25)
|
|
|
(10)
|
|
|
(32)
|
(1)
|
Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” 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 impairment.
|
|
|
|
|
Year Ended December 31,
|
||||
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
903
|
|
$
|
972
|
||
Credit loss impairments previously recognized on securities which matured, paid down,
|
|
|
|
|
|
|
||
|
prepaid or were sold during the period
|
|
|
(191)
|
|
|
(178)
|
|
Credit loss impairments previously recognized on securities impaired to fair value during
|
|
|
|
|
|
|
||
|
the period(1)
|
|
|
(6)
|
|
|
(4)
|
|
Credit loss impairment recognized in the current period on securities not previously impaired
|
|
|
16
|
|
|
6
|
||
Additional credit loss impairments recognized in the current period on securities
|
|
|
|
|
|
|
||
|
previously impaired
|
|
|
6
|
|
|
69
|
|
Increases due to the passage of time on previously recorded credit losses
|
|
|
42
|
|
|
51
|
||
Accretion of credit loss impairments previously recognized due to an increase in
|
|
|
|
|
|
|
||
|
cash flows expected to be collected
|
|
|
(14)
|
|
|
(13)
|
|
Balance, end of period
|
|
$
|
756
|
|
$
|
903
|
(1)
|
Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
|
|
Fair
|
|
Amortized
|
|
Fair
|
||||
|
|
|
|
Cost
|
|
Value
|
|
Cost
|
|
Value
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
Short-term investments and cash equivalents
|
|
$
|
196
|
|
$
|
196
|
|
$
|
697
|
|
$
|
697
|
||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Corporate securities
|
|
|
11,792
|
|
|
12,306
|
|
|
11,955
|
|
|
12,461
|
|
|
Commercial mortgage-backed securities
|
|
|
2,506
|
|
|
2,546
|
|
|
2,417
|
|
|
2,441
|
|
|
Residential mortgage-backed securities(1)
|
|
|
1,639
|
|
|
1,676
|
|
|
1,857
|
|
|
1,830
|
|
|
Asset-backed securities(2)
|
|
|
1,180
|
|
|
1,198
|
|
|
1,096
|
|
|
1,107
|
|
|
Foreign government bonds
|
|
|
165
|
|
|
169
|
|
|
117
|
|
|
117
|
|
|
U.S. government authorities and agencies and obligations of U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
states
|
|
|
198
|
|
|
244
|
|
|
213
|
|
|
233
|
Total fixed maturities
|
|
|
17,480
|
|
|
18,139
|
|
|
17,655
|
|
|
18,189
|
||
Equity securities
|
|
|
12
|
|
|
10
|
|
|
12
|
|
|
9
|
||
Total trading account assets supporting insurance liabilities
|
|
$
|
17,688
|
|
$
|
18,345
|
|
$
|
18,364
|
|
$
|
18,895
|
(1)
|
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
|
(2)
|
Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
||||||||
|
|
|
|
|
Amortized
|
|
Fair
|
|
Amortized
|
|
Fair
|
|||||
|
|
|
|
|
Cost
|
|
Value
|
|
Cost
|
|
Value
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
||||||||||||||
Fixed maturities
|
|
$
|
1,051
|
|
$
|
1,071
|
|
$
|
584
|
|
$
|
638
|
|
|||
Equity securities
|
|
|
208
|
|
|
241
|
|
|
210
|
|
|
244
|
|
|||
|
Subtotal
|
|
$
|
1,259
|
|
|
1,312
|
|
$
|
794
|
|
|
882
|
|
||
Derivative instruments
|
|
|
|
|
|
3,483
|
|
|
|
|
|
2,066
|
|
|||
Total other trading account assets
|
|
|
|
|
$
|
4,795
|
|
|
|
|
$
|
2,948
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
||||||||
|
|
|
|
|
Amount
|
|
% of
|
|
|
Amount
|
|
% of
|
|
||||
|
|
|
|
|
(in millions)
|
|
Total
|
|
|
(in millions)
|
|
Total
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Agricultural mortgage loans by property type:
|
|||||||||||||||||
Office
|
|
$
|
8,471
|
|
|
22.0
|
%
|
|
$
|
7,028
|
|
|
20.2
|
%
|
|||
Retail
|
|
|
7,567
|
|
|
19.6
|
|
|
|
7,948
|
|
|
22.8
|
|
|||
Apartments/Multi-Family
|
|
|
8,229
|
|
|
21.4
|
|
|
|
6,093
|
|
|
17.5
|
|
|||
Industrial
|
|
|
6,532
|
|
|
16.9
|
|
|
|
6,545
|
|
|
18.8
|
|
|||
Hospitality
|
|
|
2,062
|
|
|
5.4
|
|
|
|
1,924
|
|
|
5.5
|
|
|||
Other
|
|
|
3,268
|
|
|
8.5
|
|
|
|
3,158
|
|
|
9.1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial mortgage loans
|
|
|
36,129
|
|
|
93.8
|
|
|
|
32,696
|
|
|
93.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural property loans
|
|
|
2,392
|
|
|
6.2
|
|
|
|
2,130
|
|
|
6.1
|
|
|||
Total commercial mortgage and agricultural loans by property type
|
|
|
38,521
|
|
|
100.0
|
%
|
|
|
34,826
|
|
|
100.0
|
%
|
|||
Valuation allowance
|
|
|
(92)
|
|
|
|
|
|
|
(178)
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net commercial mortgage and agricultural loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
by property type
|
|
|
38,429
|
|
|
|
|
|
|
34,648
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Uncollateralized loans
|
|
|
297
|
|
|
|
|
|
|
297
|
|
|
|
|
|||
Residential property loans
|
|
|
4
|
|
|
|
|
|
|
4
|
|
|
|
|
|||
Other collateralized loans
|
|
|
300
|
|
|
|
|
|
|
300
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
601
|
|
|
|
|
|
|
601
|
|
|
|
|
|||
Valuation allowance
|
|
|
0
|
|
|
|
|
|
|
0
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net other loans
|
|
|
601
|
|
|
|
|
|
|
601
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial mortgage and other loans
|
|
$
|
39,030
|
|
|
|
|
|
$
|
35,249
|
|
|
|
|
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Other
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
Mortgage
|
|
Property
|
|
Property
|
|
Collateralized
|
|
Uncollateralized
|
|
|
|
|
|
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for losses, beginning of year, 2013
|
|
$
|
191
|
|
$
|
13
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
204
|
|||
Addition to / (release of) allowance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses
|
|
|
10
|
|
|
(6)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
||
Charge-offs, net of recoveries
|
|
|
(30)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(30)
|
|||
Change in foreign exchange
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
|
Total Ending Balance, 2013
|
|
$
|
171
|
|
$
|
7
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Other
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
Mortgage
|
|
Property
|
|
Property
|
|
Collateralized
|
|
Uncollateralized
|
|
|
|
|
|
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for losses, beginning of year, 2014
|
|
$
|
171
|
|
$
|
7
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
178
|
|||
Addition to / (release of) allowance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses
|
|
|
(74)
|
|
|
(5)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(79)
|
||
Charge-offs, net of recoveries
|
|
|
(7)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(7)
|
|||
Change in foreign exchange
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
|
Total Ending Balance, 2014
|
|
$
|
90
|
|
$
|
2
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
92
|
|
|
|
|
|
December 31, 2014
|
||||||||||||||||
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Other
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
Mortgage
|
|
Property
|
|
Property
|
|
Collateralized
|
|
Uncollateralized
|
|
|
||||||
|
|
|
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses:
|
|
(in millions)
|
|||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
5
|
|||
Collectively evaluated for impairment
|
|
|
85
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
87
|
|||
Loans acquired with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
deteriorated credit quality
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Total ending balance
|
|
$
|
90
|
|
$
|
2
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Recorded Investment:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gross of reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
individually evaluated for impairment
|
|
$
|
155
|
|
$
|
4
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
159
|
Gross of reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
collectively evaluated for impairment
|
|
|
35,974
|
|
|
2,388
|
|
|
4
|
|
|
300
|
|
|
297
|
|
|
38,963
|
||
Gross of reserves: loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
acquired with deteriorated credit quality
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Total ending balance, gross of reserves
|
|
$
|
36,129
|
|
$
|
2,392
|
|
$
|
4
|
|
$
|
300
|
|
$
|
297
|
|
$
|
39,122
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
|
|
|
|
December 31, 2013
|
||||||||||||||||
|
|
Commercial
|
|
Agricultural
|
|
Residential
|
|
Other
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
Mortgage
|
|
Property
|
|
Property
|
|
Collateralized
|
|
Uncollateralized
|
|
|
||||||
|
|
|
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Loans
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses:
|
|
(in millions)
|
|||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
13
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
13
|
|||
Collectively evaluated for impairment
|
|
|
158
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
165
|
|||
Loans acquired with
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
deteriorated credit quality
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Total ending balance
|
|
$
|
171
|
|
$
|
7
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Recorded Investment:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Gross of reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
individually evaluated for impairment
|
|
$
|
214
|
|
$
|
5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
219
|
Gross of reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
collectively evaluated for impairment
|
|
|
32,482
|
|
|
2,125
|
|
|
4
|
|
|
300
|
|
|
297
|
|
|
35,208
|
||
Gross of reserves: loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
acquired with deteriorated credit quality
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Total ending balance, gross of reserves
|
|
$
|
32,696
|
|
$
|
2,130
|
|
$
|
4
|
|
$
|
300
|
|
$
|
297
|
|
$
|
35,427
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
|
|
|
|
|
December 31, 2014
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
|
|
|
|
|
|
Investment
|
|
|
Interest
|
|
|
|
|
|
|
Recorded
|
|
Principal
|
|
Related
|
|
|
Before
|
|
|
Income
|
|
|
|
|
|
Investment(1)
|
|
Balance
|
|
Allowance
|
|
|
Allowance(2)
|
|
|
Recognized(3)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage loans
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
6
|
|
$
|
0
|
|||
Agricultural property loans
|
|
|
4
|
|
|
4
|
|
|
0
|
|
|
4
|
|
|
0
|
|||
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Total with no related allowance
|
|
$
|
4
|
|
$
|
4
|
|
$
|
0
|
|
$
|
10
|
|
$
|
0
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage loans
|
|
$
|
73
|
|
$
|
73
|
|
$
|
5
|
|
$
|
77
|
|
$
|
5
|
|||
Agricultural property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Total with related allowance
|
|
$
|
73
|
|
$
|
73
|
|
$
|
5
|
|
$
|
77
|
|
$
|
5
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Commercial mortgage loans
|
|
$
|
73
|
|
$
|
73
|
|
$
|
5
|
|
$
|
83
|
|
$
|
5
|
||
|
Agricultural property loans
|
|
|
4
|
|
|
4
|
|
|
0
|
|
|
4
|
|
|
0
|
||
|
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Total
|
|
$
|
77
|
|
$
|
77
|
|
$
|
5
|
|
$
|
87
|
|
$
|
5
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
(2)
|
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
|
(3)
|
The interest income recognized is for the year-to-date income regardless of when the impairment occurred.
|
|
|
|
|
|
December 31, 2013
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
|
|
|
|
|
|
Investment
|
|
|
Interest
|
|
|
|
|
|
|
Recorded
|
|
Principal
|
|
Related
|
|
|
Before
|
|
|
Income
|
|
|
|
|
|
Investment(1)
|
|
Balance
|
|
Allowance
|
|
|
Allowance(2)
|
|
|
Recognized(3)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage loans
|
|
$
|
18
|
|
$
|
18
|
|
$
|
0
|
|
$
|
22
|
|
$
|
0
|
|||
Agricultural property loans
|
|
|
5
|
|
|
5
|
|
|
0
|
|
|
2
|
|
|
0
|
|||
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Total with no related allowance
|
|
$
|
23
|
|
$
|
23
|
|
$
|
0
|
|
$
|
24
|
|
$
|
0
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial mortgage loans
|
|
$
|
41
|
|
$
|
42
|
|
$
|
13
|
|
$
|
80
|
|
$
|
1
|
|||
Agricultural property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
0
|
|||
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Total with related allowance
|
|
$
|
41
|
|
$
|
42
|
|
$
|
13
|
|
$
|
85
|
|
$
|
1
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Commercial mortgage loans
|
|
$
|
59
|
|
$
|
60
|
|
$
|
13
|
|
$
|
102
|
|
$
|
1
|
||
|
Agricultural property loans
|
|
|
5
|
|
|
5
|
|
|
0
|
|
|
7
|
|
|
0
|
||
|
Residential property loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Other collateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Uncollateralized loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Total
|
|
$
|
64
|
|
$
|
65
|
|
$
|
13
|
|
$
|
109
|
|
$
|
1
|
(1)
|
Recorded investment reflects the balance sheet carrying value gross of related allowance.
|
(2)
|
Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
|
(3)
|
The interest income recognized is for the year-to-date income regardless of when the impairment occurred.
|
Commercial mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2014
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
|||||||||||||
0%-59.99%
|
|
$
|
19,835
|
|
$
|
595
|
|
$
|
196
|
|
$
|
20,626
|
|||
60%-69.99%
|
|
|
10,571
|
|
|
367
|
|
|
199
|
|
|
11,137
|
|||
70%-79.99%
|
|
|
3,297
|
|
|
597
|
|
|
17
|
|
|
3,911
|
|||
Greater than 80%
|
|
|
149
|
|
|
125
|
|
|
181
|
|
|
455
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial mortgage loans
|
|
$
|
33,852
|
|
$
|
1,684
|
|
$
|
593
|
|
$
|
36,129
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural property loans
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2014
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
0%-59.99%
|
|
$
|
2,099
|
|
$
|
141
|
|
$
|
2
|
|
$
|
2,242
|
|||
60%-69.99%
|
|
|
150
|
|
|
0
|
|
|
0
|
|
|
150
|
|||
70%-79.99%
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Greater than 80%
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total agricultural property loans
|
|
$
|
2,249
|
|
$
|
141
|
|
$
|
2
|
|
$
|
2,392
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial and agricultural mortgage loans
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2014
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
|||||||||||||
0%-59.99%
|
|
$
|
21,934
|
|
$
|
736
|
|
$
|
198
|
|
$
|
22,868
|
|||
60%-69.99%
|
|
|
10,721
|
|
|
367
|
|
|
199
|
|
|
11,287
|
|||
70%-79.99%
|
|
|
3,297
|
|
|
597
|
|
|
17
|
|
|
3,911
|
|||
Greater than 80%
|
|
|
149
|
|
|
125
|
|
|
181
|
|
|
455
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial and agricultural mortgage loans
|
|
$
|
36,101
|
|
$
|
1,825
|
|
$
|
595
|
|
$
|
38,521
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables set forth certain key credit quality indicators as of December 31, 2013, based upon the recorded investment gross of allowance for credit losses.
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2013
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
|||||||||||||
0%-59.99%
|
|
$
|
17,322
|
|
$
|
549
|
|
$
|
176
|
|
$
|
18,047
|
|||
60%-69.99%
|
|
|
9,756
|
|
|
316
|
|
|
88
|
|
|
10,160
|
|||
70%-79.99%
|
|
|
3,164
|
|
|
405
|
|
|
204
|
|
|
3,773
|
|||
Greater than 80%
|
|
|
302
|
|
|
158
|
|
|
256
|
|
|
716
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial mortgage loans
|
|
$
|
30,544
|
|
$
|
1,428
|
|
$
|
724
|
|
$
|
32,696
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural property loans
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2013
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
0%-59.99%
|
|
$
|
1,973
|
|
$
|
136
|
|
$
|
0
|
|
$
|
2,109
|
|||
60%-69.99%
|
|
|
21
|
|
|
0
|
|
|
0
|
|
|
21
|
|||
70%-79.99%
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Greater than 80%
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total agricultural property loans
|
|
$
|
1,994
|
|
$
|
136
|
|
$
|
0
|
|
$
|
2,130
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial and agricultural mortgage loans
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Debt Service Coverage Ratio―December 31, 2013
|
||||||||||
|
|
|
|
|
Greater than 1.2X
|
|
1.0X to <1.2X
|
|
Less than 1.0X
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan-to-Value Ratio
|
|
(in millions)
|
0%-59.99%
|
|
$
|
19,295
|
|
$
|
685
|
|
$
|
176
|
|
$
|
20,156
|
|||
60%-69.99%
|
|
|
9,777
|
|
|
316
|
|
|
88
|
|
|
10,181
|
|||
70%-79.99%
|
|
|
3,164
|
|
|
405
|
|
|
204
|
|
|
3,773
|
|||
Greater than 80%
|
|
|
302
|
|
|
158
|
|
|
256
|
|
|
716
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial and agricultural mortgage loans
|
|
$
|
32,538
|
|
$
|
1,564
|
|
$
|
724
|
|
$
|
34,826
|
|
|
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Greater
|
|
Greater
|
|
|
|
Commercial
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Than 90
|
|
Than 90
|
|
|
|
Mortgage
|
|
Non
|
||||||||
|
|
|
|
|
|
|
|
30-59 Days
|
|
60-89 Days
|
|
Days -
|
|
Days - Not
|
|
Total Past
|
|
and other
|
|
Accrual
|
||||||||
|
|
|
|
|
|
Current
|
|
Past Due
|
|
Past Due
|
|
Accruing
|
|
Accruing
|
|
Due
|
|
Loans
|
|
Status
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||||||||
Commercial mortgage loans
|
|
$
|
36,068
|
|
$
|
61
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
61
|
|
$
|
36,129
|
|
$
|
99
|
||||
Agricultural property loans
|
|
|
2,390
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
|
2
|
|
|
2,392
|
|
|
1
|
||||
Residential property loans
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
4
|
|
|
4
|
|
|
0
|
||||
Other collateralized loans
|
|
|
300
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
300
|
|
|
0
|
||||
Uncollateralized loans
|
|
|
297
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
297
|
|
|
0
|
||||
|
|
Total………..
|
|
$
|
39,055
|
|
$
|
64
|
|
$
|
1
|
|
$
|
0
|
|
$
|
2
|
|
$
|
67
|
|
$
|
39,122
|
|
$
|
100
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Greater
|
|
Greater
|
|
|
|
Commercial
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Than 90
|
|
Than 90
|
|
|
|
Mortgage
|
|
Non
|
||||||||
|
|
|
|
|
|
|
|
30-59 Days
|
|
60-89 Days
|
|
Days -
|
|
Days - Not
|
|
Total Past
|
|
and other
|
|
Accrual
|
||||||||
|
|
|
|
|
|
Current
|
|
Past Due
|
|
Past Due
|
|
Accruing
|
|
Accruing
|
|
Due
|
|
Loans
|
|
Status
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||||||||
Commercial mortgage loans
|
|
$
|
32,662
|
|
$
|
15
|
|
$
|
0
|
|
$
|
0
|
|
$
|
19
|
|
$
|
34
|
|
$
|
32,696
|
|
$
|
132
|
||||
Agricultural property loans
|
|
|
2,129
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
1
|
|
|
2,130
|
|
|
1
|
||||
Residential property loans
|
|
|
1
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
3
|
|
|
4
|
|
|
1
|
||||
Other collateralized loans
|
|
|
300
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
300
|
|
|
0
|
||||
Uncollateralized loans
|
|
|
297
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
297
|
|
|
0
|
||||
|
|
Total….
|
|
$
|
35,389
|
|
$
|
18
|
|
$
|
0
|
|
$
|
0
|
|
$
|
20
|
|
$
|
38
|
|
$
|
35,427
|
|
$
|
134
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Joint ventures and limited partnerships:
|
|
|
|
|
|
|
|||
|
|
Real estate related
|
|
$
|
633
|
|
$
|
610
|
|
|
|
Non-real estate-related
|
|
|
6,340
|
|
|
5,852
|
|
|
Total joint ventures and limited partnerships
|
|
|
6,973
|
|
|
6,462
|
||
Real estate held through direct ownership
|
|
|
966
|
|
|
563
|
|||
Other
|
|
|
890
|
|
|
835
|
|||
|
|
Total other long-term investments
|
|
$
|
8,829
|
|
$
|
7,860
|
|
|
At December 31,
|
||||
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
|
Total assets(1)
|
|
$
|
43,757
|
|
$
|
44,599
|
|
|
|
|
|
|
|
Total liabilities(2)
|
|
$
|
11,678
|
|
$
|
8,834
|
Partners' capital
|
|
|
32,079
|
|
|
35,765
|
Total liabilities and partners' capital
|
|
$
|
43,757
|
|
$
|
44,599
|
|
|
|
|
|
|
|
Total liabilities and partners' capital included above
|
|
$
|
3,895
|
|
$
|
2,932
|
Equity in limited partnership interests not included above
|
|
|
290
|
|
|
535
|
Carrying value
|
|
$
|
4,185
|
|
$
|
3,467
|
(1)
|
Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.
|
(2)
|
Liabilities consist primarily of third party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities.
|
|
|
|
|
Years ended December 31,
|
|||||||
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
||
Total revenue(1)
|
|
$
|
5,055
|
|
$
|
3,619
|
|
$
|
3,839
|
||
Total expenses(2)
|
|
|
(1,647)
|
|
|
(935)
|
|
|
(944)
|
||
|
|
Net earnings(losses)
|
|
$
|
3,408
|
|
$
|
2,684
|
|
$
|
2,895
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net earnings (losses) included above
|
|
$
|
461
|
|
$
|
210
|
|
$
|
172
|
Equity in net earnings (losses) of limited partnership interests not included above
|
|
|
52
|
|
|
49
|
|
|
39
|
||
|
|
Total equity in net earnings(losses)
|
|
$
|
513
|
|
$
|
259
|
|
$
|
211
|
(1)
|
Revenue consists of income from investments in real estate, investments in securities and other income.
|
(2)
|
Expenses consist primarily of interest expense, management fees, salary expenses and other expenses.
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
(in millions)
|
||||||
Fixed maturities, available-for-sale
|
|
$
|
6,805
|
|
$
|
6,790
|
|
$
|
5,932
|
|
Fixed maturities, held-to-maturity(1)
|
|
|
125
|
|
|
45
|
|
|
27
|
|
Equity securities, available-for-sale
|
|
|
222
|
|
|
214
|
|
|
225
|
|
Trading account assets
|
|
|
764
|
|
|
770
|
|
|
769
|
|
Commercial mortgage and other loans
|
|
|
1,869
|
|
|
1,754
|
|
|
1,770
|
|
Policy loans
|
|
|
491
|
|
|
475
|
|
|
453
|
|
Short-term investments and cash equivalents
|
|
|
22
|
|
|
24
|
|
|
21
|
|
Other long-term investments
|
|
|
879
|
|
|
517
|
|
|
153
|
|
|
Gross investment income
|
|
|
11,177
|
|
|
10,589
|
|
|
9,350
|
Less: investment expenses
|
|
|
(591)
|
|
|
(526)
|
|
|
(459)
|
|
|
Net investment income
|
|
$
|
10,586
|
|
$
|
10,063
|
|
$
|
8,891
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fixed maturities
|
|
$
|
590
|
|
$
|
(887)
|
|
$
|
148
|
|||
Equity securities
|
|
|
449
|
|
|
317
|
|
|
73
|
|||
Commercial mortgage and other loans
|
|
|
106
|
|
|
(15)
|
|
|
14
|
|||
Investment real estate
|
|
|
0
|
|
|
0
|
|
|
2
|
|||
Joint ventures and limited partnerships
|
|
|
(18)
|
|
|
(22)
|
|
|
4
|
|||
Derivatives(1)
|
|
|
2,722
|
|
|
(1,962)
|
|
|
(165)
|
|||
Other
|
|
|
(8)
|
|
|
7
|
|
|
1
|
|||
|
Realized investment gains (losses), net
|
|
$
|
3,841
|
|
$
|
(2,562)
|
|
$
|
77
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
Fixed maturity securities on which an OTTI loss has been recognized
|
|
$
|
253
|
|
$
|
46
|
|
$
|
(244)
|
|||
Fixed maturity securities, available-for-sale - all other
|
|
|
11,459
|
|
|
4,606
|
|
|
13,801
|
|||
Equity securities, available-for-sale
|
|
|
1,929
|
|
|
2,063
|
|
|
1,311
|
|||
Derivatives designated as cash flow hedges(1)
|
|
|
208
|
|
|
(378)
|
|
|
(168)
|
|||
Other investments(2)
|
|
|
59
|
|
|
59
|
|
|
172
|
|||
|
|
Net unrealized gains (losses) on investments…
|
|
$
|
13,908
|
|
$
|
6,396
|
|
$
|
14,872
|
(1)
|
See Note 21 for more information on cash flow hedges.
|
(2)
|
Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.”
|
|
|
|
|
2014
|
||||||||||||||||
|
|
|
|
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 millions)
|
||||||||||||||||||
Fixed maturities
|
|
|
||||||||||||||||||
U.S. Treasury securities and obligations of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
U.S. government authorities and agencies
|
|
$
|
1,192
|
|
$
|
2
|
|
$
|
0
|
|
$
|
0
|
|
$
|
1,192
|
|
$
|
2
|
|
Obligations of U.S. states and their political
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
subdivisions
|
|
|
105
|
|
|
1
|
|
|
82
|
|
|
2
|
|
|
187
|
|
|
3
|
|
Foreign government bonds
|
|
|
160
|
|
|
3
|
|
|
200
|
|
|
11
|
|
|
360
|
|
|
14
|
||
Corporate securities
|
|
|
10,863
|
|
|
393
|
|
|
12,946
|
|
|
639
|
|
|
23,809
|
|
|
1,032
|
||
Commercial mortgage-backed securities
|
|
|
1,283
|
|
|
6
|
|
|
1,720
|
|
|
32
|
|
|
3,003
|
|
|
38
|
||
Asset-backed securities
|
|
|
3,363
|
|
|
16
|
|
|
3,175
|
|
|
116
|
|
|
6,538
|
|
|
132
|
||
Residential mortgage-backed securities
|
|
|
35
|
|
|
0
|
|
|
158
|
|
|
3
|
|
|
193
|
|
|
3
|
||
|
|
Total
|
|
$
|
17,001
|
|
$
|
421
|
|
$
|
18,281
|
|
$
|
803
|
|
$
|
35,282
|
|
$
|
1,224
|
Equity securities, available-for-sale
|
|
$
|
809
|
|
$
|
51
|
|
$
|
9
|
|
$
|
1
|
|
$
|
818
|
|
$
|
52
|
|
|
|
|
2013
|
||||||||||||||||
|
|
|
|
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 millions)
|
||||||||||||||||||
Fixed maturities
|
|
|
||||||||||||||||||
U.S. Treasury securities and obligations of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
U.S. government authorities and agencies
|
|
$
|
2,285
|
|
$
|
56
|
|
$
|
1
|
|
$
|
0
|
|
$
|
2,286
|
|
$
|
56
|
|
Obligations of U.S. states and their political
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
subdivisions
|
|
|
1,181
|
|
|
129
|
|
|
37
|
|
|
7
|
|
|
1,218
|
|
|
136
|
|
Foreign government bonds
|
|
|
210
|
|
|
14
|
|
|
209
|
|
|
40
|
|
|
419
|
|
|
54
|
Corporate securities
|
|
|
27,266
|
|
|
1,512
|
|
|
11,943
|
|
|
1,624
|
|
|
39,209
|
|
|
3,136
|
||
Commercial mortgage-backed securities
|
|
|
4,179
|
|
|
123
|
|
|
596
|
|
|
34
|
|
|
4,775
|
|
|
157
|
||
Asset-backed securities
|
|
|
2,885
|
|
|
40
|
|
|
2,451
|
|
|
261
|
|
|
5,336
|
|
|
301
|
||
Residential mortgage-backed securities
|
|
|
1,397
|
|
|
29
|
|
|
172
|
|
|
3
|
|
|
1,569
|
|
|
32
|
||
|
|
Total
|
|
$
|
39,403
|
|
$
|
1,903
|
|
$
|
15,409
|
|
$
|
1,969
|
|
$
|
54,812
|
|
$
|
3,872
|
Equity securities, available-for-sale
|
|
$
|
316
|
|
$
|
15
|
|
$
|
1
|
|
$
|
0
|
|
$
|
317
|
|
$
|
15
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Fixed maturities
|
|
$
|
15,112
|
|
$
|
14,431
|
||
Trading account assets supporting insurance liabilities
|
|
|
391
|
|
|
606
|
||
Other trading account assets
|
|
|
231
|
|
|
104
|
||
Separate account assets
|
|
|
2,861
|
|
|
3,488
|
||
Equity securities
|
|
|
512
|
|
|
174
|
||
|
Total securities pledged
|
|
$
|
19,107
|
|
$
|
18,803
|
|
|
|
December 31,
|
||||
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Trading account assets supporting insurance liabilities
|
|
$
|
11
|
|
$
|
11
|
|
Commercial mortgage and other loans
|
|
|
300
|
|
|
300
|
|
Other long-term investments
|
|
|
19
|
|
|
21
|
|
Cash and cash equivalents
|
|
|
0
|
|
|
(3)
|
|
|
Total assets of consolidated VIEs
|
|
$
|
330
|
|
$
|
329
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
$
|
1
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
1
|
|
$
|
1
|
6. DEFERRED POLICY ACQUISITION COSTS
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
The balances of and changes in deferred policy acquisition costs as of and for the years ended December 31, are as follows:
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||
|
Balance, beginning of year
|
|
$
|
10,210
|
|
$
|
7,982
|
|
$
|
6,850
|
|
|
Capitalization of commissions, sales and issue expenses
|
|
|
1,270
|
|
|
1,593
|
|
|
1,883
|
|
|
Amortization
|
|
|
(940)
|
|
|
205
|
|
|
(654)
|
|
|
Change in unrealized investment gains and losses
|
|
|
(338)
|
|
|
430
|
|
|
(97)
|
|
|
Balance, end of year
|
|
$
|
10,202
|
|
$
|
10,210
|
|
$
|
7,982
|
8. VALUE OF BUSINESS ACQUIRED
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The balances of and changes in VOBA as of and for the years ended December 31, are as follows:
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014(1)
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
(in millions)
|
||||||
|
Balance, beginning of year
|
|
$
|
1,596
|
|
$
|
227
|
|
$
|
250
|
|
|
Acquisitions
|
|
|
7
|
|
|
1,370
|
|
|
0
|
|
|
Amortization
|
|
|
(334)
|
|
|
(94)
|
|
|
(38)
|
|
|
Change in unrealized investment gains and losses
|
|
|
(94)
|
|
|
24
|
|
|
0
|
|
|
Interest(2)
|
|
|
68
|
|
|
69
|
|
|
15
|
|
|
Balance, end of year
|
|
$
|
1,243
|
|
$
|
1,596
|
|
$
|
227
|
(1)
|
The VOBA balances at December 31, 2014 were $201 million, $1,036 million and $6 million related to the insurance transactions associated with the CIGNA, The Hartford, and Gibraltar BSN Life Berhad, respectively. The weighted average remaining expected lives were approximately 12, 9, and 10 years for the VOBA related to CIGNA, The Hartford, and Gibraltar BSN Life Berhad, respectively.
|
(2)
|
The interest accrual rates vary by product. The interest rates for 2014 were 6.40%, 3.00% to 6.17%, and 4.07% to 5.51% for the VOBA related to CIGNA, The Hartford, and Gibraltar BSN Life Berhad, respectively. The interest rates for 2013 were 6.40% and 3.00% to 6.17% for the VOBA related to CIGNA and The Hartford, respectively and 6.40% related to CIGNA in 2012.
|
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||
Estimated Future VOBA Amortization
|
|
$
|
122
|
|
$
|
115
|
|
$
|
102
|
|
$
|
94
|
|
$
|
92
|
9. GOODWILL AND OTHER INTANGIBLES
|
|
|||||
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
||
|
|
|
|
|
|
|
|
The changes in the book value of goodwill are as follows:
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Balance at December 31, 2011:
|
|
|
|
|
||
|
Gross Goodwill
|
|
$
|
737
|
|
|
|
Accumulated Impairment Losses
|
|
|
(737)
|
|
|
Net Goodwill Balance at December 31, 2011
|
|
|
0
|
|
||
|
|
|
|
|
|
|
2012 Activity
|
|
|
0
|
|
||
|
|
|
|
|
|
|
Net Goodwill Balance at December 31, 2012
|
|
|
0
|
|
||
|
|
|
|
|
|
|
2013 Activity
|
|
|
0
|
|
||
|
|
|
|
|
|
|
Net Goodwill Balance at December 31, 2013
|
|
|
0
|
|
||
|
|
|
|
|
|
|
2014 Activity:
|
|
|
|
|
||
|
Acquisitions
|
|
|
18
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2014:
|
|
|
|
|
||
|
Gross Goodwill
|
|
|
755
|
|
|
|
Accumulated Impairment Losses
|
|
|
(737)
|
|
|
Net Goodwill Balance at December 31, 2014
|
|
$
|
18
|
|
Other Intangibles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible balances at December 31, are as follows:
|
||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
2014
|
|
2013
|
||||||||||||||
|
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
|
|
|
|
|
(in millions)
|
|||||||||||||||
Subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Customer relationships
|
|
$
|
174
|
|
$
|
(96)
|
|
$
|
78
|
|
$
|
175
|
|
$
|
(87)
|
|
$
|
88
|
|
|
Other
|
|
|
32
|
|
|
(26)
|
|
|
6
|
|
|
32
|
|
|
(24)
|
|
|
8
|
|
|
Total
|
|
$
|
206
|
|
$
|
(122)
|
|
$
|
84
|
|
$
|
207
|
|
$
|
(111)
|
|
$
|
96
|
10. POLICYHOLDERS' LIABILITIES
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Future Policy Benefits
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits at December 31 for the years indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||
Life insurance
|
|
$
|
62,826
|
|
$
|
59,474
|
||
Individual and group annuities and supplementary contracts
|
|
|
52,746
|
|
|
48,772
|
||
Other contract liabilities
|
|
|
8,948
|
|
|
4,657
|
||
|
Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses
|
|
|
124,520
|
|
|
112,903
|
|
Unpaid claims and claim adjustment expenses
|
|
|
2,917
|
|
|
2,814
|
||
|
Total future policy benefits
|
|
$
|
127,437
|
|
$
|
115,717
|
Policyholders' Account Balances
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Policyholders' account balances at December 31 for the years indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Individual annuities
|
|
$
|
10,116
|
|
$
|
9,503
|
||
Group annuities
|
|
|
25,210
|
|
|
24,757
|
||
Guaranteed investment contracts and guaranteed interest accounts
|
|
|
13,177
|
|
|
13,335
|
||
Funding agreements
|
|
|
4,691
|
|
|
4,370
|
||
Interest-sensitive life contracts
|
|
|
19,141
|
|
|
18,617
|
||
Dividend accumulation and other
|
|
|
16,460
|
|
|
16,115
|
||
|
Total policyholders' account balances
|
|
$
|
88,795
|
|
$
|
86,697
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
|
|
|
In the Event of Death
|
|
At Annuitization / Accumulation(1)
|
|
In the Event of Death
|
|
At Annuitization / Accumulation(1)
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Variable Annuity Contracts
|
|
(in millions)
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return of net deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account value
|
|
$
|
79,182
|
|
$
|
20
|
|
$
|
71,616
|
|
$
|
22
|
|
Net amount at risk
|
|
$
|
49
|
|
$
|
0
|
|
$
|
58
|
|
$
|
0
|
|
Average attained age of contractholders
|
|
|
63 years
|
|
|
71 years
|
|
|
62 years
|
|
|
70 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum return or contract value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account value
|
|
$
|
26,411
|
|
$
|
93,445
|
|
$
|
27,794
|
|
$
|
85,292
|
|
Net amount at risk
|
|
$
|
1,940
|
|
$
|
1,553
|
|
$
|
1,900
|
|
$
|
1,375
|
|
Average attained age of contractholders
|
|
|
67 years
|
|
|
62 years
|
|
|
67 years
|
|
|
62 years
|
|
Average period remaining until earliest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expected annuitization
|
|
|
N/A
|
|
|
0.11 years
|
|
|
N/A
|
|
|
0.19 years
|
(1)
|
Includes income and withdrawal benefits as described herein.
|
|
|
|
|
|
December 31,
|
||||||||
|
|
|
|
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the Event of Death
|
||||||||
|
|
|
|
|
(in millions)
|
||||||||
Variable Life, Variable Universal Life and Universal Life Contracts
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No lapse guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate account value
|
|
$
|
6,774
|
|
$
|
6,638
|
|||||||
General account value
|
|
$
|
9,919
|
|
$
|
8,965
|
|||||||
Net amount at risk
|
|
$
|
178,887
|
|
$
|
171,572
|
|||||||
Average attained age of contractholders
|
|
|
57 years
|
|
|
56 years
|
|
|
|
|
|
December 31,
|
||||||||
|
|
|
|
|
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||
Equity funds
|
|
$
|
66,281
|
|
$
|
61,207
|
|||||||
Bond funds
|
|
|
32,314
|
|
|
31,310
|
|||||||
Money market funds
|
|
|
5,552
|
|
|
4,097
|
|||||||
|
Total
|
|
$
|
104,147
|
|
$
|
96,614
|
|
|
|
GMDB
|
|
GMIB
|
|
GMAB/GMWB/ GMIWB
|
||||||
|
|
|
Variable Life, Variable Universal Life and Universal Life
|
|
Variable Annuity
|
|
Variable Annuity
|
|
Variable Annuity
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||
Balance at December 31, 2011
|
|
$
|
225
|
|
$
|
138
|
|
$
|
102
|
|
$
|
1,091
|
|
|
Incurred guarantee benefits(1)
|
|
|
94
|
|
|
197
|
|
|
112
|
|
|
461
|
|
Paid guarantee benefits and other
|
|
|
(14)
|
|
|
(72)
|
|
|
(31)
|
|
|
0
|
Balance at December 31, 2012
|
|
|
305
|
|
|
263
|
|
|
183
|
|
|
1,552
|
|
|
Incurred guarantee benefits(1)
|
|
|
101
|
|
|
39
|
|
|
(114)
|
|
|
(1,878)
|
|
Paid guarantee benefits
|
|
|
(3)
|
|
|
(48)
|
|
|
(22)
|
|
|
0
|
|
Other(2)
|
|
|
1,341
|
|
|
5
|
|
|
0
|
|
|
0
|
Balance at December 31, 2013
|
|
|
1,744
|
|
|
259
|
|
|
47
|
|
|
(326)
|
|
|
Incurred guarantee benefits(1)
|
|
|
786
|
|
|
164
|
|
|
60
|
|
|
5,403
|
|
Paid guarantee benefits
|
|
|
(18)
|
|
|
(42)
|
|
|
(14)
|
|
|
0
|
|
Other
|
|
|
284
|
|
|
4
|
|
|
0
|
|
|
0
|
Balance at December 31, 2014
|
|
$
|
2,796
|
|
$
|
385
|
|
$
|
93
|
|
$
|
5,077
|
(1)
|
Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives.
|
(2)
|
GMDB primarily includes amounts acquired from The Hartford on January 2, 2013.
|
|
|
|
Sales Inducements
|
|
|
|
|
|
|
|
|
(in millions)
|
||
Balance at December 31, 2011
|
|
$
|
555
|
|
|
Capitalization
|
|
|
199
|
|
Amortization
|
|
|
42
|
|
Change in unrealized gain/(loss) on investments
|
|
|
4
|
Balance at December 31, 2012
|
|
|
800
|
|
|
Capitalization
|
|
|
21
|
|
Amortization
|
|
|
175
|
|
Change in unrealized gain/(loss) on investments
|
|
|
8
|
Balance at December 31, 2013
|
|
|
1,004
|
|
|
Capitalization
|
|
|
9
|
|
Amortization
|
|
|
(163)
|
|
Change in unrealized gain/(loss) on investments
|
|
|
(2)
|
Balance at December 31, 2014
|
|
$
|
848
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
(in millions)
|
||||
Closed Block liabilities
|
|
|
|
|
|
|
|||||
|
Future policy benefits
|
|
$
|
49,863
|
|
$
|
50,258
|
||||
|
Policyholders' dividends payable
|
|
|
931
|
|
|
907
|
||||
|
Policyholders' dividend obligation
|
|
|
6,612
|
|
|
4,511
|
||||
|
Policyholders' account balances
|
|
|
5,310
|
|
|
5,359
|
||||
|
Other Closed Block liabilities
|
|
|
5,084
|
|
|
4,281
|
||||
|
|
Total Closed Block liabilities
|
|
|
67,800
|
|
|
65,316
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
Closed Block assets
|
|
|
|
|
|
|
|||||
|
Fixed maturities, available-for-sale, at fair value
|
|
|
40,629
|
|
|
39,169
|
||||
|
Other trading account assets, at fair value
|
|
|
302
|
|
|
291
|
||||
|
Equity securities, available-for-sale, at fair value
|
|
|
3,522
|
|
|
3,884
|
||||
|
Commercial mortgage and other loans
|
|
|
9,472
|
|
|
8,762
|
||||
|
Policy loans
|
|
|
4,914
|
|
|
5,013
|
||||
|
Other long-term investments
|
|
|
2,765
|
|
|
2,085
|
||||
|
Short-term investments
|
|
|
1,225
|
|
|
1,790
|
||||
|
|
Total investments
|
|
|
62,829
|
|
|
60,994
|
|||
|
Cash and cash equivalents
|
|
|
1,201
|
|
|
544
|
||||
|
Accrued investment income
|
|
|
527
|
|
|
542
|
||||
|
Other Closed Block assets
|
|
|
332
|
|
|
296
|
||||
|
|
Total Closed Block assets
|
|
|
64,889
|
|
|
62,376
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
Excess of reported Closed Block liabilities over Closed Block assets
|
|
|
2,911
|
|
|
2,940
|
|||||
Portion of above representing accumulated other comprehensive income:
|
|
|
|
|
|
|
|||||
|
|
Net unrealized investment gains (losses)
|
|
|
5,040
|
|
|
3,615
|
|||
|
|
Allocated to policyholder dividend obligation
|
|
|
(5,053)
|
|
|
(3,624)
|
Future earnings to be recognized from Closed Block assets and Closed Block liabilities
|
|
$
|
2,898
|
|
$
|
2,931
|
|
|
Information regarding the policyholder dividend obligation is as follows:
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
(in millions)
|
||||
Balance, January 1
|
|
$
|
4,511
|
|
$
|
6,363
|
|||||
|
Impact from earnings allocable to policyholder dividend obligation
|
|
|
672
|
|
|
2
|
||||
|
Change in net unrealized investment gains (losses) allocated to policyholder dividend
|
|
|
|
|
|
|
||||
|
|
obligation
|
|
|
1,429
|
|
|
(1,854)
|
|||
Balance, December 31
|
|
$
|
6,612
|
|
$
|
4,511
|
|
|
Closed Block revenues and benefits and expenses for the years ended December 31, were as follows:
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
(in millions)
|
|||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||
|
Premiums
|
|
$
|
2,704
|
|
$
|
2,728
|
|
$
|
2,817
|
|
|
Net investment income
|
|
|
2,809
|
|
|
2,796
|
|
|
2,919
|
|
|
Realized investment gains (losses), net
|
|
|
1,164
|
|
|
230
|
|
|
243
|
|
|
Other income
|
|
|
34
|
|
|
57
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Closed Block revenues
|
|
|
6,711
|
|
|
5,811
|
|
|
6,010
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and Expenses
|
|
|
|
|
|
|
|
|
|
||
|
Policyholders' benefits
|
|
|
3,326
|
|
|
3,334
|
|
|
3,445
|
|
|
Interest credited to policyholders' account balances
|
|
|
136
|
|
|
136
|
|
|
137
|
|
|
Dividends to policyholders
|
|
|
2,635
|
|
|
1,910
|
|
|
2,021
|
|
|
General and administrative expenses
|
|
|
444
|
|
|
467
|
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Closed Block benefits and expenses
|
|
|
6,541
|
|
|
5,847
|
|
|
6,095
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed Block revenues, net of Closed Block benefits and expenses, before
|
|
|
|
|
|
|
|
|
|
||
|
income taxes and discontinued operations
|
|
|
170
|
|
|
(36)
|
|
|
(85)
|
|
Income tax expense (benefit)
|
|
|
139
|
|
|
(57)
|
|
|
(103)
|
||
Closed Block revenues, net of Closed Block benefits and expenses and income
|
|
|
|
|
|
|
|
|
|
||
|
taxes, before discontinued operations
|
|
|
31
|
|
|
21
|
|
|
18
|
|
Income (loss) from discontinued operations, net of taxes
|
|
|
1
|
|
|
0
|
|
|
(2)
|
||
Closed Block revenues, net of Closed Block benefits and expenses, income taxes
|
|
|
|
|
|
|
|
|
|
||
|
and discontinued operations
|
|
$
|
32
|
|
$
|
21
|
|
$
|
16
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Direct premiums
|
|
$
|
15,275
|
|
$
|
10,331
|
|
$
|
41,961
|
||
Reinsurance assumed
|
|
|
2,789
|
|
|
1,955
|
|
|
1,918
|
||
Reinsurance ceded
|
|
|
(1,541)
|
|
|
(1,480)
|
|
|
(1,413)
|
||
|
Premiums
|
|
$
|
16,523
|
|
$
|
10,806
|
|
$
|
42,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct policy charges and fees
|
|
$
|
3,692
|
|
$
|
3,400
|
|
$
|
3,167
|
||
Reinsurance assumed
|
|
|
1,425
|
|
|
919
|
|
|
106
|
||
Reinsurance ceded
|
|
|
(270)
|
|
|
(147)
|
|
|
(105)
|
||
|
Policy charges and fees
|
|
$
|
4,847
|
|
$
|
4,172
|
|
$
|
3,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct policyholder benefits
|
|
$
|
18,455
|
|
$
|
12,884
|
|
$
|
44,922
|
||
Reinsurance assumed
|
|
|
4,214
|
|
|
2,231
|
|
|
1,796
|
||
Reinsurance ceded
|
|
|
(1,915)
|
|
|
(1,489)
|
|
|
(1,361)
|
||
|
Policyholders' benefits
|
|
$
|
20,754
|
|
$
|
13,626
|
|
$
|
45,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance recoverables at December 31, are as follows:
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Individual and group annuities(1)
|
|
$
|
4,664
|
|
$
|
254
|
|||||
Life insurance(2)
|
|
|
4,092
|
|
|
3,642
|
|||||
Other reinsurance
|
|
|
156
|
|
|
143
|
|||||
|
Total reinsurance recoverable
|
|
$
|
8,912
|
|
$
|
4,039
|
|
_________
|
(1)
|
Primarily represents reinsurance recoverables at December 31, 2014 of $4,523 million related to the arrangements between Pruco Life Insurance Company and Pruco Reinsurance Ltd. and $105 million related to the acquisition of the retirement business of CIGNA. Reinsurance recoverables at December 31, 2013 primarily represent $248 million related to the acquisition of the retirement business of CIGNA. The Company recorded no reinsurance payables at December 31, 2014, and reinsurance payables of $388 million at December 31, 2013 related to the reinsurance arrangements between Pruco Life Insurance Company and Pruco Reinsurance Ltd. The Company recorded reinsurance payables of $105 million and $248 million at December 31, 2014 and 2013, respectively, related to the acquisition of the retirement business of CIGNA.
|
(2)
|
Includes $2,130 million of reinsurance recoverables established at December 31, 2014 under the reinsurance arrangements associated with the acquisition of the individual life business of The Hartford. The Company has also recorded reinsurance payables related to the individual life business of The Hartford acquisition of $1,300 million at December 31, 2014.
|
14. SHORT-TERM AND LONG-TERM DEBT
|
|
|||||||
|
|
|
|
|
|
|
|
|
Short-term Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt at December 31, is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
||||
Commercial paper
|
|
$
|
386
|
|
$
|
460
|
|
|
Other notes payable(1)
|
|
|
0
|
|
|
28
|
|
|
Current portion of long-term debt(2)(3)
|
|
|
1,720
|
|
|
1,125
|
|
|
|
Total short-term debt
|
|
$
|
2,106
|
|
$
|
1,613
|
|
|
|
|
|
|
|
|
|
|
Supplemental short-term debt information:
|
|
|
|
|
|
|
|
|
|
Portion of commercial paper borrowings due overnight
|
|
$
|
174
|
|
$
|
364
|
|
|
Daily average commercial paper outstanding
|
|
$
|
1,107
|
|
$
|
1,040
|
|
|
Weighted average maturity of outstanding commercial paper, in days
|
|
|
16
|
|
|
13
|
|
|
Weighted average interest rate on outstanding short-term debt(4)
|
|
|
0.09
|
%
|
|
0.15
|
%
|
(1)
|
Includes notes due to related parties of $28 million at December 31, 2013. Related party notes at December 31, 2013, were denominated in foreign currency.
|
(2)
|
Includes collateralized borrowings from the Federal Home Loan Bank of New York of $280 million at December 31, 2014. There were no collateralized borrowings at December 31, 2013.
|
(3)
|
Includes notes due to related parties of $585 million and $1,021 million at December 31, 2014 and 2013, respectively. The related party notes payable has interest rates varying from 0.50% to 14.85% in 2014. The related party notes included $81 million and $5 million of notes denominated in foreign currency at December 31, 2014 and 2013, respectively.
|
(4)
|
Excludes the current portion of long-term debt.
|
|
|
|
|
Maturity
|
|
|
|
|
|
|
||||
|
|
|
|
Dates
|
|
Rate(1)
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||
Fixed-rate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Surplus notes(2)
|
|
|
2015-2052
|
|
|
3.80%-8.30%
|
|
$
|
6,597
|
|
$
|
2,090
|
|
|
Surplus notes subject to set-off arrangements(3)
|
|
|
2021-2034
|
|
|
3.52%-5.42%
|
|
|
4,588
|
|
|
2,400
|
|
|
Senior notes(4)(5)
|
|
|
2015-2043
|
|
|
0.55%-14.85%
|
|
|
371
|
|
|
6,118
|
|
|
Mortgage debt(6)
|
|
|
2021-2024
|
|
|
1.72%-3.80%
|
|
|
111
|
|
|
0
|
|
Floating-rate notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Surplus notes(7)
|
|
|
2016-2052
|
|
|
0.40%-3.44%
|
|
|
2,200
|
|
|
3,200
|
|
|
Surplus notes subject to set-off arrangements
|
|
|
2024
|
|
|
1.65%
|
|
|
385
|
|
|
0
|
|
|
Senior notes(8)
|
|
|
2017-2023
|
|
|
|
|
|
0
|
|
|
162
|
|
|
Mortgage debt(9)
|
|
|
2017-2024
|
|
|
1.36%-3.11%
|
|
|
391
|
|
|
0
|
|
Subtotal
|
|
|
|
|
|
|
|
|
14,643
|
|
|
13,970
|
||
Less: assets under set-off arrangements(10)
|
|
|
|
|
|
|
|
|
4,973
|
|
|
2,400
|
||
|
|
Total long-term debt
|
|
|
|
|
|
|
|
$
|
9,670
|
|
$
|
11,570
|
|
(1)
|
Ranges of interest rates are for the year ended December 31, 2014.
|
(2)
|
Fixed-rate surplus notes at December 31, 2014 and 2013 include $5,756 million and $1,149 million, respectively, due to a related party. Maturities of these notes range from 2017 through 2052. The interest rates ranged from 3.80% to 8.30% in 2014. As of December 31, 2013, $3,632 million of the related party debt was presented as fixed-rate senior notes.
|
(3)
|
Fixed-rate surplus notes subject to set-off arrangements at December 31, 2014 include $1,000 million, due to a related party. Maturities of these notes are in 2034. The interest rate was 5.42% in 2014. There were no related party balances at December 31, 2013.
|
(4)
|
Includes collateralized borrowings from the Federal Home Loan Bank of New York of $280 million at 2013. These borrowings are discussed in more detail above.
|
(5)
|
Fixed-rate senior notes at December 31, 2014 and 2013 include $197 million and $4,875 million, respectively, due to related parties. Maturities of these notes range from 2015 through 2043 and interest rates ranged from 0.55% to 14.85% in 2014. These related party notes included $9 million and $181 million at December 31, 2014 and 2013, respectively, of notes which were denominated in foreign currency.
|
(6)
|
Includes $40 million of debt at December 31, 2014 denominated in foreign currency. As of December 31, 2013, $34 million of this debt was presented as fixed-rate senior notes.
|
(7)
|
Floating-rate surplus notes at December 31, 2014 include $1,700 million due to a related party. Maturities of these notes range from 2016 to 2018 and interest rates ranged from 0.40% to 1.14% in 2014. There were no related party balances at December 31, 2013.
|
(8)
|
Includes $39 million at December 31, 2013 of notes denominated in foreign currency.
|
(9)
|
Includes $173 million of debt at December 31, 2014 denominated in foreign currency. As of December 31, 2013, $162 million of this debt was presented as floating-rate senior notes.
|
(10)
|
Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, relating to an arrangement where valid rights off set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements.
|
|
|
|
|
Long-term Debt
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||
Calendar Year:
|
|
|
|
|
2016
|
|
$
|
626
|
|
|
2017
|
|
|
722
|
|
|
2018
|
|
|
610
|
|
|
2019
|
|
|
537
|
|
|
2020 and thereafter
|
|
|
7,175
|
|
|
|
Total
|
|
$
|
9,670
|
|
|
|
Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Insurance Company of America
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency Translation Adjustment
|
|
Net Unrealized Investment Gains (Losses)(1)
|
|
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost)
|
|
Total Accumulated Other Comprehensive Income (Loss)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Balance, December 31, 2011
|
|
$
|
80
|
|
$
|
4,042
|
|
$
|
(1,504)
|
|
$
|
2,618
|
|
Change in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications
|
|
|
6
|
|
|
1,815
|
|
|
(780)
|
|
|
1,041
|
Amounts reclassified from AOCI
|
|
|
0
|
|
|
(282)
|
|
|
95
|
|
|
(187)
|
|
Income tax benefit (expense)
|
|
|
(1)
|
|
|
(496)
|
|
|
237
|
|
|
(260)
|
|
Balance, December 31, 2012
|
|
|
85
|
|
|
5,079
|
|
|
(1,952)
|
|
|
3,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications
|
|
|
3
|
|
|
(6,187)
|
|
|
729
|
|
|
(5,455)
|
Amounts reclassified from AOCI
|
|
|
4
|
|
|
549
|
|
|
117
|
|
|
670
|
|
Income tax benefit (expense)
|
|
|
(3)
|
|
|
1,974
|
|
|
(300)
|
|
|
1,671
|
|
Balance, December 31, 2013
|
|
|
89
|
|
|
1,415
|
|
|
(1,406)
|
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications
|
|
|
(52)
|
|
|
6,461
|
|
|
(1,071)
|
|
|
5,338
|
Amounts reclassified from AOCI
|
|
|
0
|
|
|
(1,194)
|
|
|
84
|
|
|
(1,110)
|
|
Income tax benefit (expense)
|
|
|
14
|
|
|
(1,878)
|
|
|
350
|
|
|
(1,514)
|
|
Balance, December 31, 2014
|
|
$
|
51
|
|
$
|
4,804
|
|
$
|
(2,043)
|
|
$
|
2,812
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
Affected line item in Consolidated
|
||||
|
|
2014
|
|
2013
|
|
Statements of Operations
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
||||
Amounts reclassified from AOCI(1)(2):
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment:
|
|
|
|
|
|
|
|
|
|||||
|
Foreign currency translation adjustment
|
|
$
|
0
|
|
$
|
(4)
|
|
Other income
|
||||
|
|
Total foreign currency translation adjustment
|
|
|
0
|
|
|
(4)
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||
Net unrealized investment gains (losses):
|
|
|
|
|
|
|
|
|
|||||
|
Cash flow hedges - Interest Rate
|
|
|
(3)
|
|
|
(1)
|
|
(3)
|
||||
|
Cash flow hedges - Currency/Interest rate
|
|
|
158
|
|
|
(45)
|
|
(3)
|
||||
|
Net unrealized investment gains (losses)
|
|
|
|
|
|
|
|
|
||||
|
on available-for-sale securities
|
|
|
1,039
|
|
|
(569)
|
|
|
||||
|
Net unrealized investment gains (losses) - all other
|
|
|
0
|
|
|
66
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net unrealized investment gains (losses)
|
|
|
1,194
|
|
|
(549)
|
|
(4)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of defined benefit items:
|
|
|
|
|
|
|
|
|
|||||
|
Prior service cost
|
|
|
13
|
|
|
14
|
|
(5)
|
||||
|
Actuarial gain (loss)
|
|
|
(97)
|
|
|
(131)
|
|
(5)
|
||||
|
|
Total amortization of defined benefit items
|
|
|
(84)
|
|
|
(117)
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period
|
|
$
|
1,110
|
|
$
|
(670)
|
|
|
(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 21 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 and policyholders’ dividends.
|
(5)
|
See Note 17 for information on employee benefit plans.
|
|
|
|
|
|
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
||
|
|
|
|
|
|
|
Costs,
|
|
Future
|
|
|
|
|
|
Other
|
||||||
|
|
|
|
|
|
|
Deferred
|
|
Policy
|
|
|
|
|
|
Comprehensive
|
||||||
|
|
|
|
|
Net
|
|
Sales
|
|
Benefits
|
|
|
|
|
|
Income (Loss)
|
||||||
|
|
|
|
|
Unrealized
|
|
Inducements,
|
|
and
|
|
|
|
Deferred
|
|
Related To Net
|
||||||
|
|
|
|
|
Gains (Losses)
|
|
and Value
|
|
Policyholders'
|
|
|
|
Income Tax
|
|
Unrealized
|
||||||
|
|
|
|
|
on
|
|
of Business
|
|
Account
|
|
Policyholders'
|
|
(Liability)
|
|
Investment
|
||||||
|
|
|
|
|
Investments
|
|
Acquired
|
|
Balances
|
|
Dividends
|
|
Benefit
|
|
Gains (Losses)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
Balance, December 31, 2011
|
|
$
|
(970)
|
|
$
|
4
|
|
$
|
13
|
|
$
|
466
|
|
$
|
164
|
|
$
|
(323)
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
504
|
|
|
|
|
|
|
|
|
|
|
|
(176)
|
|
|
328
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
310
|
|
|
|
|
|
|
|
|
|
|
|
(109)
|
|
|
201
|
||
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(1)
|
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
(58)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
2
|
|
|
(3)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
(10)
|
|
|
|
|
|
4
|
|
|
(6)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
(327)
|
|
|
114
|
|
|
(213)
|
||
Balance, December 31, 2012
|
|
$
|
(245)
|
|
$
|
(1)
|
|
$
|
3
|
|
$
|
139
|
|
$
|
30
|
|
$
|
(74)
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
(64)
|
|
|
119
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
(40)
|
|
|
75
|
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(1)
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
(5)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
2
|
|
|
(3)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
0
|
|
|
1
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
|
|
26
|
|
|
(49)
|
||
Balance, December 31, 2013
|
|
$
|
46
|
|
$
|
(6)
|
|
$
|
4
|
|
$
|
64
|
|
$
|
(44)
|
|
$
|
64
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
(53)
|
|
|
99
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
(2)
|
||
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(1)
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
|
38
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
0
|
|
|
|
|
|
|
|
|
0
|
|
|
0
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
1
|
|
|
(1)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
(96)
|
|
|
34
|
|
|
(62)
|
||
Balance, December 31, 2014
|
|
$
|
253
|
|
$
|
(6)
|
|
$
|
2
|
|
$
|
(32)
|
|
$
|
(81)
|
|
$
|
136
|
(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.
|
|
|
|
|
|
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
||
|
|
|
|
|
|
|
Costs,
|
|
Future
|
|
|
|
|
|
Other
|
||||||
|
|
|
|
|
|
|
Deferred
|
|
Policy
|
|
|
|
|
|
Comprehensive
|
||||||
|
|
|
|
|
Net
|
|
Sales
|
|
Benefits
|
|
|
|
|
|
Income (Loss)
|
||||||
|
|
|
|
|
Unrealized
|
|
Inducements,
|
|
and
|
|
|
|
Deferred
|
|
Related To Net
|
||||||
|
|
|
|
|
Gains (Losses)
|
|
and Value
|
|
Policyholders'
|
|
|
|
Income Tax
|
|
Unrealized
|
||||||
|
|
|
|
|
on
|
|
of Business
|
|
Account
|
|
Policyholders'
|
|
(Liability)
|
|
Investment
|
||||||
|
|
|
|
|
Investments(1)
|
|
Acquired
|
|
Balances
|
|
Dividends
|
|
Benefit
|
|
Gains (Losses)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Balance, December 31, 2011
|
|
$
|
12,694
|
|
$
|
(554)
|
|
$
|
(1,336)
|
|
$
|
(4,313)
|
|
$
|
(2,126)
|
|
$
|
4,365
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
2,926
|
|
|
|
|
|
|
|
|
|
|
|
(984)
|
|
|
1,942
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
(592)
|
|
|
|
|
|
|
|
|
|
|
|
207
|
|
|
(385)
|
||
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(2)
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
(31)
|
|
|
58
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
(87)
|
|
|
|
|
|
|
|
|
30
|
|
|
(57)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
117
|
|
|
|
|
|
(41)
|
|
|
76
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
(1,304)
|
|
|
456
|
|
|
(848)
|
||
Balance, December 31, 2012
|
|
$
|
15,117
|
|
$
|
(641)
|
|
$
|
(1,219)
|
|
$
|
(5,617)
|
|
$
|
(2,489)
|
|
$
|
5,151
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
(9,207)
|
|
|
|
|
|
|
|
|
|
|
|
3,224
|
|
|
(5,983)
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
434
|
|
|
|
|
|
|
|
|
|
|
|
(152)
|
|
|
282
|
||
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(2)
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
5
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
456
|
|
|
|
|
|
|
|
|
(160)
|
|
|
296
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
533
|
|
|
|
|
|
(187)
|
|
|
346
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
1,929
|
|
|
(675)
|
|
|
1,254
|
||
Balance, December 31, 2013
|
|
$
|
6,351
|
|
$
|
(185)
|
|
$
|
(686)
|
|
$
|
(3,688)
|
|
$
|
(441)
|
|
$
|
1,351
|
|||
Net investment gains (losses) on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
investments arising during the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
period
|
|
|
8,553
|
|
|
|
|
|
|
|
|
|
|
|
(3,028)
|
|
|
5,525
|
||
Reclassification adjustment for (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses included in net income
|
|
|
(1,191)
|
|
|
|
|
|
|
|
|
|
|
|
417
|
|
|
(774)
|
||
Reclassification adjustment for OTTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
losses excluded from net income(2)
|
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
(38)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on deferred policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition costs, deferred sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
inducements and value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
business acquired
|
|
|
|
|
|
(422)
|
|
|
|
|
|
|
|
|
148
|
|
|
(274)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
benefits and policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
account balances
|
|
|
|
|
|
|
|
|
(392)
|
|
|
|
|
|
137
|
|
|
(255)
|
||
Impact of net unrealized investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
(gains) losses on policyholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
dividends
|
|
|
|
|
|
|
|
|
|
|
|
(1,334)
|
|
|
467
|
|
|
(867)
|
||
Balance, December 31, 2014
|
|
$
|
13,655
|
|
$
|
(607)
|
|
$
|
(1,078)
|
|
$
|
(5,022)
|
|
$
|
(2,280)
|
|
$
|
4,668
|
(1)
|
Includes cash flow hedges. See Note 21 for information on cash flow hedges.
|
(2)
|
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.
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit obligation at the beginning of period
|
|
$
|
(9,416)
|
|
|
(10,296)
|
|
$
|
(2,078)
|
|
|
(2,347)
|
Acquisition/divestiture
|
|
|
72
|
|
|
0
|
|
|
-
|
|
|
(3)
|
Service cost
|
|
|
(163)
|
|
|
(155)
|
|
|
(16)
|
|
|
(15)
|
Interest cost
|
|
|
(460)
|
|
|
(413)
|
|
|
(95)
|
|
|
(88)
|
Plan participants’ contributions
|
|
|
0
|
|
|
0
|
|
|
(29)
|
|
|
(28)
|
Medicare Part D subsidy receipts
|
|
|
0
|
|
|
0
|
|
|
(8)
|
|
|
(12)
|
Amendments
|
|
|
0
|
|
|
(2)
|
|
|
0
|
|
|
0
|
Annuity purchase
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
Actuarial gains/(losses), net
|
|
|
(1,724)
|
|
|
876
|
|
|
(162)
|
|
|
214
|
Settlements
|
|
|
9
|
|
|
0
|
|
|
0
|
|
|
0
|
Curtailments
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Special termination benefits
|
|
|
(4)
|
|
|
(2)
|
|
|
0
|
|
|
0
|
Benefits paid
|
|
|
548
|
|
|
580
|
|
|
183
|
|
|
200
|
Foreign currency changes and other
|
|
|
16
|
|
|
(5)
|
|
|
2
|
|
|
1
|
Benefit obligation at end of period
|
|
$
|
(11,122)
|
|
$
|
(9,416)
|
|
$
|
(2,203)
|
|
$
|
(2,078)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of period
|
|
$
|
11,782
|
|
$
|
12,352
|
|
$
|
1,745
|
|
$
|
1,329
|
Actual return on plan assets
|
|
|
1,502
|
|
|
249
|
|
|
120
|
|
|
244
|
Annuity purchase
|
|
|
0
|
|
|
(1)
|
|
|
0
|
|
|
0
|
Employer contributions
|
|
|
71
|
|
|
95
|
|
|
6
|
|
|
18
|
Plan participants’ contributions
|
|
|
0
|
|
|
0
|
|
|
29
|
|
|
28
|
Disbursement for settlements
|
|
|
(9)
|
|
|
0
|
|
|
0
|
|
|
0
|
Benefits paid
|
|
|
(548)
|
|
|
(580)
|
|
|
(183)
|
|
|
(200)
|
Foreign currency changes and other
|
|
|
(22)
|
|
|
7
|
|
|
0
|
|
|
(14)
|
Effect of Section 420 transfer
|
|
|
0
|
|
|
(340)
|
|
|
0
|
|
|
340
|
Fair value of plan assets at end of period
|
|
$
|
12,776
|
|
$
|
11,782
|
|
$
|
1,717
|
|
$
|
1,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at end of period
|
|
$
|
1,654
|
|
$
|
2,366
|
|
$
|
(486)
|
|
$
|
(333)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts recognized in the Statements of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid benefit cost
|
|
$
|
2,823
|
|
$
|
3,353
|
|
$
|
0
|
|
$
|
0
|
Accrued benefit liability
|
|
|
(1,169)
|
|
|
(987)
|
|
|
(486)
|
|
|
(333)
|
Net amount recognized
|
|
$
|
1,654
|
|
$
|
2,366
|
|
$
|
(486)
|
|
$
|
(333)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items recorded in “Accumulated other comprehensive income”
|
|
|
|
|
|
|
|
|
|
|
|
|
not yet recognized as a component of net periodic (benefit) cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transition obligation
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
Prior service cost
|
|
|
(9)
|
|
|
(12)
|
|
|
(8)
|
|
|
(19)
|
Net actuarial loss
|
|
|
2,649
|
|
|
1,806
|
|
|
586
|
|
|
456
|
Net amount not recognized
|
|
$
|
2,640
|
|
$
|
1,794
|
|
$
|
578
|
|
$
|
437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated benefit obligation
|
|
$
|
(10,565)
|
|
$
|
(8,933)
|
|
$
|
(2,203)
|
|
$
|
(2,078)
|
|
|
Information for pension plans with a projected benefit obligation in excess of plan assets
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||
|
|
|
|
|
|
|
||
|
Projected benefit obligation
|
|
$
|
1,170
|
|
$
|
987
|
|
|
Fair value of plan assets
|
|
|
1
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
Information for pension plans with an accumulated benefit obligation in excess of plan assets
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||
|
|
|
|
|
|
|
||
|
Accumulated benefit obligation
|
|
$
|
980
|
|
$
|
839
|
|
|
Fair value of plan assets
|
|
|
0
|
|
|
0
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
$
|
163
|
|
$
|
155
|
|
$
|
157
|
|
$
|
16
|
|
$
|
15
|
|
$
|
13
|
Interest cost
|
|
|
460
|
|
|
413
|
|
|
443
|
|
|
95
|
|
|
88
|
|
|
100
|
Expected return on plan assets
|
|
|
(709)
|
|
|
(766)
|
|
|
(806)
|
|
|
(116)
|
|
|
(87)
|
|
|
(88)
|
Amortization of transition obligation
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Amortization of prior service cost
|
|
|
(2)
|
|
|
(2)
|
|
|
22
|
|
|
(11)
|
|
|
(11)
|
|
|
(12)
|
Amortization of actuarial (gain) loss, net
|
|
|
72
|
|
|
76
|
|
|
30
|
|
|
25
|
|
|
55
|
|
|
55
|
Settlements
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
Special termination benefits(1)
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
Net periodic (benefit) cost
|
|
$
|
(8)
|
|
$
|
(122)
|
|
$
|
(152)
|
|
$
|
9
|
|
$
|
60
|
|
$
|
68
|
(1)
|
Certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination.
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||
|
|
|
Transition Obligation
|
|
Prior Service Cost
|
|
Net Actuarial (Gain) Loss
|
|
Transition Obligation
|
|
Prior Service Cost
|
|
Net Actuarial (Gain) Loss
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011
|
|
$
|
0
|
|
$
|
59
|
|
$
|
1,521
|
|
$
|
0
|
|
$
|
(42)
|
|
$
|
852
|
|
|
Amortization for the period
|
|
|
0
|
|
|
(22)
|
|
|
(30)
|
|
|
0
|
|
|
12
|
|
|
(55)
|
|
Deferrals for the period
|
|
|
0
|
|
|
(53)
|
|
|
756
|
|
|
0
|
|
|
0
|
|
|
74
|
|
Impact of foreign currency changes and other
|
|
|
0
|
|
|
0
|
|
|
(3)
|
|
|
0
|
|
|
0
|
|
|
6
|
Balance, December 31, 2012
|
|
$
|
0
|
|
|
(16)
|
|
|
2,244
|
|
$
|
0
|
|
|
(30)
|
|
|
877
|
|
|
Amortization for the period
|
|
|
0
|
|
|
2
|
|
|
(76)
|
|
|
0
|
|
|
11
|
|
|
(55)
|
|
Deferrals for the period
|
|
|
0
|
|
|
2
|
|
|
(359)
|
|
|
0
|
|
|
0
|
|
|
(371)
|
|
Impact of foreign currency changes and other
|
|
|
0
|
|
|
0
|
|
|
(3)
|
|
|
0
|
|
|
0
|
|
|
5
|
Balance, December 31, 2013
|
|
$
|
0
|
|
$
|
(12)
|
|
$
|
1,806
|
|
$
|
0
|
|
$
|
(19)
|
|
$
|
456
|
|
|
Amortization for the period
|
|
|
0
|
|
|
2
|
|
|
(72)
|
|
|
0
|
|
|
11
|
|
|
(25)
|
|
Deferrals for the period
|
|
|
0
|
|
|
0
|
|
|
931
|
|
|
0
|
|
|
0
|
|
|
158
|
|
Impact of foreign currency changes and other
|
|
|
0
|
|
|
1
|
|
|
(16)
|
|
|
0
|
|
|
0
|
|
|
(3)
|
Balance, December 31, 2014
|
|
$
|
0
|
|
$
|
(9)
|
|
$
|
2,649
|
|
$
|
0
|
|
$
|
(8)
|
|
$
|
586
|
The amounts included in “Accumulated other comprehensive income (loss)” expected to be recognized as components of net periodic (benefit) cost in 2015 are as follows:
|
|||||||
|
|
|
|
|
|
||
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Amortization of transition obligation
|
|
$
|
0
|
|
$
|
0
|
|
Amortization of prior service cost
|
|
|
(2)
|
|
|
(5)
|
|
Amortization of actuarial (gain) loss, net
|
|
|
154
|
|
|
38
|
|
Total
|
|
$
|
152
|
|
$
|
33
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate (beginning of period)
|
|
4.95%
|
|
4.05%
|
|
4.85%
|
|
4.75%
|
|
3.85%
|
|
4.60%
|
|
Discount rate (end of period)
|
|
4.10%
|
|
4.95%
|
|
4.05%
|
|
3.95%
|
|
4.75%
|
|
3.85%
|
|
Rate of increase in compensation levels (beginning of period)
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Rate of increase in compensation levels (end of period)
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Expected return on plan assets (beginning of period)
|
|
6.25%
|
|
6.25%
|
|
6.75%
|
|
7.00%
|
|
7.00%
|
|
7.00%
|
|
Health care cost trend rates (beginning of period)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
5.00-7.08%
|
|
5.00-7.50%
|
|
5.00-7.50%
|
|
Health care cost trend rates (end of period)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
5.00-6.66%
|
|
5.00-7.08%
|
|
5.00-7.50%
|
|
For 2014, 2013 and 2012, the ultimate health care cost trend rate after
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gradual decrease until: 2019, 2019, 2017 (beginning of period)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
5.00%
|
|
5.00%
|
|
5.00%
|
For 2014, 2013 and 2012, the ultimate health care cost trend rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
after gradual decrease until: 2019, 2019, 2019 (end of period)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
5.00%
|
|
5.00%
|
|
5.00%
|
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
(in millions)
|
|
One percentage point increase
|
|
|
|
Increase in total service and interest costs
|
|
$
|
7
|
Increase in postretirement benefit obligation
|
|
|
147
|
|
|
|
|
One percentage point decrease
|
|
|
|
Decrease in total service and interest costs
|
|
$
|
6
|
Decrease in postretirement benefit obligation
|
|
|
118
|
|
|
Pension
|
|
Postretirement
|
||||
|
|
Minimum
|
|
Maximum
|
|
Minimum
|
|
Maximum
|
|
|
|
|
|
|
|
|
|
Asset Category
|
|
|
|
|
|
|
|
|
U.S. Equities
|
|
2%
|
|
15%
|
|
47%
|
|
61%
|
International Equities
|
|
2%
|
|
16%
|
|
2%
|
|
10%
|
Fixed Maturities
|
|
52%
|
|
69%
|
|
1%
|
|
38%
|
Short-term Investments
|
|
0%
|
|
15%
|
|
0%
|
|
44%
|
Real Estate
|
|
2%
|
|
15%
|
|
0%
|
|
0%
|
Other
|
|
0%
|
|
15%
|
|
0%
|
|
0%
|
|
|
|
|
|
|
As of December 31, 2014
|
||||||||||
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
U.S. Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pooled separate accounts(1)
|
|
$
|
0
|
|
$
|
881
|
|
$
|
0
|
|
$
|
881
|
|||
|
Common/collective trusts(1)
|
|
|
0
|
|
|
87
|
|
|
0
|
|
|
87
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(2)
|
|
|
0
|
|
|
323
|
|
|
0
|
|
|
323
|
|||
|
Common/collective trusts(3)
|
|
|
0
|
|
|
201
|
|
|
0
|
|
|
201
|
|||
|
United Kingdom insurance pooled funds(4)
|
|
|
0
|
|
|
45
|
|
|
0
|
|
|
45
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(5)
|
|
|
0
|
|
|
1,162
|
|
|
35
|
|
|
1,197
|
|||
|
Common/collective trusts(6)
|
|
|
0
|
|
|
271
|
|
|
0
|
|
|
271
|
|||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Mortgage backed
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
||
|
|
Other U.S. government securities
|
|
|
0
|
|
|
852
|
|
|
0
|
|
|
852
|
||
|
U.S. government securities (state & other)
|
|
|
0
|
|
|
694
|
|
|
0
|
|
|
694
|
|||
|
Non-U.S. government securities
|
|
|
0
|
|
|
12
|
|
|
0
|
|
|
12
|
|||
|
United Kingdom insurance pooled funds(7)
|
|
|
0
|
|
|
320
|
|
|
0
|
|
|
320
|
|||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Corporate bonds(8)
|
|
|
0
|
|
|
4,550
|
|
|
14
|
|
|
4,564
|
||
|
|
Asset backed
|
|
|
0
|
|
|
25
|
|
|
0
|
|
|
25
|
||
|
|
Collateralized Mortgage Obligations(9)
|
|
|
0
|
|
|
112
|
|
|
0
|
|
|
112
|
||
|
Interest rate swaps (Notional amount: $1,536)
|
|
|
0
|
|
|
(1)
|
|
|
0
|
|
|
(1)
|
|||
|
Other(10)
|
|
|
712
|
|
|
4
|
|
|
73
|
|
|
789
|
|||
|
Unrealized gain (loss) on investment of securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
collateral(11)
|
|
|
0
|
|
|
(37)
|
|
|
0
|
|
|
(37)
|
||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
8,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts
|
|
|
0
|
|
|
39
|
|
|
0
|
|
|
39
|
|||
|
United Kingdom insurance pooled funds
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(12)
|
|
|
0
|
|
|
0
|
|
|
465
|
|
|
465
|
|||
|
Partnerships
|
|
|
0
|
|
|
0
|
|
|
336
|
|
|
336
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Partnerships
|
|
|
0
|
|
|
0
|
|
|
455
|
|
|
455
|
|||
|
Hedge funds
|
|
|
0
|
|
|
0
|
|
|
1,144
|
|
|
1,144
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
1,599
|
|
|
|
|
|
Total
|
|
$
|
712
|
|
$
|
9,542
|
|
$
|
2,522
|
|
$
|
12,776
|
|
|
|
|
|
|
As of December 31, 2013
|
||||||||||
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
U.S. Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pooled separate accounts(1)
|
|
$
|
0
|
|
$
|
1,170
|
|
$
|
0
|
|
$
|
1,170
|
|||
|
Common/collective trusts(1)
|
|
|
0
|
|
|
81
|
|
|
0
|
|
|
81
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
1,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(2)
|
|
|
0
|
|
|
349
|
|
|
0
|
|
|
349
|
|||
|
Common/collective trusts(3)
|
|
|
0
|
|
|
40
|
|
|
0
|
|
|
40
|
|||
|
United Kingdom insurance pooled funds(4)
|
|
|
0
|
|
|
50
|
|
|
0
|
|
|
50
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(5)
|
|
|
0
|
|
|
1,085
|
|
|
32
|
|
|
1,117
|
|||
|
Common/collective trusts(6)
|
|
|
0
|
|
|
255
|
|
|
0
|
|
|
255
|
|||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Mortgage backed
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
2
|
||
|
|
Other U.S. government securities
|
|
|
0
|
|
|
1,005
|
|
|
0
|
|
|
1,005
|
||
|
U.S. government securities (state & other)
|
|
|
0
|
|
|
636
|
|
|
0
|
|
|
636
|
|||
|
Non-U.S. government securities
|
|
|
0
|
|
|
9
|
|
|
0
|
|
|
9
|
|||
|
United Kingdom insurance pooled funds(7)
|
|
|
0
|
|
|
266
|
|
|
0
|
|
|
266
|
|||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Corporate bonds(8)
|
|
|
0
|
|
|
3,660
|
|
|
16
|
|
|
3,676
|
||
|
|
Asset backed
|
|
|
0
|
|
|
24
|
|
|
0
|
|
|
24
|
||
|
|
Collateralized Mortgage Obligations(9)
|
|
|
0
|
|
|
137
|
|
|
0
|
|
|
137
|
||
|
Interest rate swaps (Notional amount: $623)
|
|
|
0
|
|
|
(3)
|
|
|
0
|
|
|
(3)
|
|||
|
Other(10)
|
|
|
717
|
|
|
0
|
|
|
66
|
|
|
783
|
|||
|
Unrealized gain (loss) on investment of securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
collateral(13)
|
|
|
0
|
|
|
(39)
|
|
|
0
|
|
|
(39)
|
||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
7,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts
|
|
|
0
|
|
|
78
|
|
|
0
|
|
|
78
|
|||
|
United Kingdom insurance pooled funds
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pooled separate accounts(12)
|
|
|
0
|
|
|
0
|
|
|
356
|
|
|
356
|
|||
|
Partnerships
|
|
|
0
|
|
|
0
|
|
|
320
|
|
|
320
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Partnerships
|
|
|
0
|
|
|
0
|
|
|
374
|
|
|
374
|
|||
|
Hedge funds
|
|
|
0
|
|
|
0
|
|
|
1,095
|
|
|
1,095
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
1,469
|
|
|
|
|
|
Total
|
|
$
|
717
|
|
$
|
8,806
|
|
$
|
2,259
|
|
$
|
11,782
|
(1)
|
These categories invest in U.S. equity funds whose objective is to track or outperform various indexes.
|
(2)
|
This category invests in a large cap international equity fund whose objective is to track an index.
|
(3)
|
This category invests in international equity funds, primarily large cap, whose objective is to outperform various indexes. For 2014, this category also includes a global equity fund, primarily focused on new market leaders with sustainable competitive advantage.
|
(4)
|
This category invests in an international equity fund whose objective is to track an index.
|
(5)
|
This category invests in bond funds, primarily highly rated private placement securities.
|
(6)
|
This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index.
|
(7)
|
This category invests in bond funds, primarily highly rated corporate securities.
|
(8)
|
This category invests in highly rated corporate securities.
|
(9)
|
This category invests in highly rated Collateralized Mortgage Obligations.
|
(10)
|
Primarily cash and cash equivalents, short term investments, payables and receivables and open future contract positions (including fixed income collateral).
|
(11)
|
The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $717 million and the liability for securities lending collateral is $754 million.
|
(12)
|
This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index
|
(13)
|
The contractual value of investments of securities lending collateral invested in primarily short-term bond funds is $701 million and the liability for securities lending collateral is $740 million.
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
Maturities -
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Maturities -
|
|
Corporate
|
|
|
|
|
Real Estate -
|
|||
|
|
|
|
|
|
Pooled
|
|
Debt -
|
|
Fixed
|
|
Pooled
|
||||
|
|
|
|
|
|
Separate
|
|
Corporate
|
|
Maturities -
|
|
Separate
|
||||
|
|
|
|
|
|
Accounts
|
|
Bonds
|
|
Other
|
|
Accounts
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
Fair Value, beginning of period
|
|
$
|
32
|
|
$
|
16
|
|
$
|
66
|
|
$
|
356
|
||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Relating to assets still held at the reporting date
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
49
|
||
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
||
|
Purchases, sales and settlements
|
|
|
0
|
|
|
(2)
|
|
|
7
|
|
|
55
|
|||
|
Transfers in and /or out of Level 3
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
35
|
|
$
|
14
|
|
$
|
73
|
|
$
|
465
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|||||||
|
|
|
|
|
|
|
|
|
Real Estate -
|
|
Other -
|
|
Other - Hedge
|
|||
|
|
|
|
|
|
|
|
|
Partnerships
|
|
Partnerships
|
|
Fund
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fair Value, beginning of period
|
|
$
|
320
|
|
$
|
374
|
|
$
|
1,095
|
|||||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Relating to assets still held at the reporting date
|
|
|
6
|
|
|
53
|
|
|
49
|
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
0
|
|||||
|
Purchases, sales and settlements
|
|
|
10
|
|
|
28
|
|
|
0
|
||||||
|
Transfers in and /or out of Level 3
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||
Fair Value, end of period
|
|
$
|
336
|
|
$
|
455
|
|
$
|
1,144
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
Maturities -
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Maturities -
|
|
Corporate
|
|
|
|
|
Real Estate -
|
|||
|
|
|
|
|
|
Pooled
|
|
Debt -
|
|
Fixed
|
|
Pooled
|
||||
|
|
|
|
|
|
Separate
|
|
Corporate
|
|
Maturities -
|
|
Separate
|
||||
|
|
|
|
|
|
Accounts
|
|
Bonds
|
|
Other
|
|
Accounts
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
Fair Value, beginning of period
|
|
$
|
32
|
|
$
|
12
|
|
$
|
58
|
|
$
|
322
|
||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Relating to assets still held at the reporting date
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
46
|
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Purchases, sales and settlements
|
|
|
0
|
|
|
4
|
|
|
8
|
|
|
(12)
|
|||
|
Transfers in and /or out of Level 3
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
32
|
|
$
|
16
|
|
$
|
66
|
|
$
|
356
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Real Estate -
|
|
Other -
|
|
Other - Hedge
|
|||
|
|
|
|
|
|
|
|
|
Partnerships
|
|
Partnerships
|
|
Fund
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fair Value, beginning of period
|
|
$
|
185
|
|
$
|
598
|
|
$
|
707
|
|||||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Relating to assets still held at the reporting date
|
|
|
35
|
|
|
48
|
|
|
106
|
|||||
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
4
|
|||||
|
Purchases, sales and settlements
|
|
|
100
|
|
|
7
|
|
|
(1)
|
||||||
|
Transfers in and /or out of Level 3(1)
|
|
|
0
|
|
|
(279)
|
|
|
279
|
||||||
Fair Value, end of period
|
|
$
|
320
|
|
$
|
374
|
|
$
|
1,095
|
|
|
|
|
|
|
As of December 31, 2014
|
||||||||||
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
U.S. Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies(1)
|
|
$
|
0
|
|
$
|
698
|
|
$
|
0
|
|
$
|
698
|
|||
|
Common trusts(2)
|
|
|
0
|
|
|
155
|
|
|
0
|
|
|
155
|
|||
|
Equities
|
|
|
124
|
|
|
0
|
|
|
0
|
|
|
124
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies(3)
|
|
|
0
|
|
|
61
|
|
|
0
|
|
|
61
|
|||
|
Common trusts(4)
|
|
|
0
|
|
|
22
|
|
|
0
|
|
|
22
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common trusts(5)
|
|
|
0
|
|
|
31
|
|
|
0
|
|
|
31
|
|||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Mortgage Backed
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
5
|
|
|
|
|
Other U.S. government securities
|
|
|
0
|
|
|
116
|
|
|
0
|
|
|
116
|
|
|
U.S. government securities (state & other)
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
3
|
|||
|
Non-U.S. government securities
|
|
|
0
|
|
|
7
|
|
|
0
|
|
|
7
|
|||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Corporate bonds(6)
|
|
|
0
|
|
|
254
|
|
|
1
|
|
|
255
|
||
|
|
Asset Backed
|
|
|
0
|
|
|
76
|
|
|
1
|
|
|
77
|
||
|
|
Collateralized Mortgage Obligations(7)
|
|
|
0
|
|
|
39
|
|
|
0
|
|
|
39
|
||
|
Interest rate swaps (Notional amount: $1,024)
|
|
|
0
|
|
|
(8)
|
|
|
0
|
|
|
(8)
|
|||
|
Other(8)
|
|
|
57
|
|
|
0
|
|
|
(5)
|
|
|
52
|
|
Unrealized gain (loss) on investment of securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
collateral(9)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Pooled separate accounts
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Registered investment companies
|
|
|
80
|
|
|
0
|
|
|
0
|
|
|
80
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
|
|
|
Total
|
|
$
|
261
|
|
$
|
1,459
|
|
$
|
(3)
|
|
$
|
1,717
|
|
|
|
|
|
|
As of December 31, 2013
|
||||||||||
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||
U.S. Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies(1)
|
|
$
|
0
|
|
$
|
634
|
|
$
|
0
|
|
$
|
634
|
|||
|
Common trusts(2)
|
|
|
0
|
|
|
136
|
|
|
0
|
|
|
136
|
|||
|
Equities
|
|
|
110
|
|
|
0
|
|
|
0
|
|
|
110
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies(3)
|
|
|
0
|
|
|
64
|
|
|
0
|
|
|
64
|
|||
|
Common trusts(4)
|
|
|
0
|
|
|
23
|
|
|
0
|
|
|
23
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common trusts(5)
|
|
|
0
|
|
|
29
|
|
|
0
|
|
|
29
|
|||
|
U.S. government securities (federal):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Mortgage Backed
|
|
|
0
|
|
|
7
|
|
|
0
|
|
|
7
|
|
|
|
|
Other U.S. government securities
|
|
|
0
|
|
|
289
|
|
|
0
|
|
|
289
|
|
|
U.S. government securities (state & other)
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
3
|
|||
|
Non-U.S. government securities
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
4
|
|||
|
Corporate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Corporate bonds(6)
|
|
|
0
|
|
|
235
|
|
|
1
|
|
|
236
|
||
|
|
Asset Backed
|
|
|
0
|
|
|
56
|
|
|
5
|
|
|
61
|
||
|
|
Collateralized Mortgage Obligations(7)
|
|
|
0
|
|
|
35
|
|
|
0
|
|
|
35
|
||
|
Interest rate swaps (Notional amount: $861)
|
|
|
0
|
|
|
(7)
|
|
|
0
|
|
|
(7)
|
|||
|
Other(8)
|
|
|
74
|
|
|
0
|
|
|
(6)
|
|
|
68
|
|||
|
Unrealized gain (loss) on investment of securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
collateral(10)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Variable Life Insurance Policies
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Pooled separate accounts
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Registered investment companies
|
|
|
53
|
|
|
0
|
|
|
0
|
|
|
53
|
|||
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
Total
|
|
$
|
237
|
|
$
|
1,508
|
|
$
|
0
|
|
$
|
1,745
|
(1)
|
This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies.
|
(2)
|
This category invests in U.S. equity funds, primarily large cap equities.
|
(3)
|
This category invests in international equity funds, primarily large cap international equities whose objective is to track an index.
|
(4)
|
This category fund invests in large cap international equity fund whose objective is to outperform an index.
|
(5)
|
This category invests in U.S. bonds funds.
|
(6)
|
This category invests in highly rated corporate bonds.
|
(7)
|
This category invests in highly rated Collateralized Mortgage Obligations.
|
(8)
|
Cash and cash equivalents, short term investments, payables and receivables and open future contract positions (including fixed income collateral).
|
(9)
|
In 2014, the contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $10 million and the liability for securities lending collateral is $10 million.
|
(10)
|
In 2013, the contractual net value of the investment of securities lending collateral invested in primarily short term bond funds is $16 million and the liability for securities lending collateral is $16 million.
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|||||||
|
|
|
|
|
|
Fixed
|
|
Fixed
|
|
|
|||
|
|
|
|
|
|
Maturities -
|
|
Maturities -
|
|
|
|||
|
|
|
|
|
|
Corporate
|
|
Corporate
|
|
|
|||
|
|
|
|
|
|
Debt -
|
|
Debt -
|
|
Fixed
|
|||
|
|
|
|
|
|
Corporate
|
|
Asset
|
|
Maturities -
|
|||
|
|
|
|
|
|
Bonds
|
|
Backed
|
|
Other
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fair Value, beginning of period
|
|
$
|
1
|
|
$
|
5
|
|
$
|
(6)
|
||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
|||
|
|
Relating to assets still held at the reporting date
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Purchases, sales and settlements
|
|
|
0
|
|
|
1
|
|
|
1
|
|||
|
Transfers in and /or out of Level 3(1)
|
|
|
0
|
|
|
(5)
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
1
|
|
$
|
1
|
|
$
|
(5)
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|||||||
|
|
|
|
|
|
Fixed
|
|
Fixed
|
|
|
|||
|
|
|
|
|
|
Maturities -
|
|
Maturities -
|
|
|
|||
|
|
|
|
|
|
Corporate
|
|
Corporate
|
|
|
|||
|
|
|
|
|
|
Debt -
|
|
Debt -
|
|
Fixed
|
|||
|
|
|
|
|
|
Corporate
|
|
Asset
|
|
Maturities -
|
|||
|
|
|
|
|
|
Bonds
|
|
Backed
|
|
Other
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Fair Value, beginning of period
|
|
$
|
2
|
|
$
|
0
|
|
$
|
(4)
|
||||
|
Actual Return on Assets:
|
|
|
|
|
|
|
|
|
|
|||
|
|
Relating to assets still held at the reporting date
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
|
Relating to assets sold during the period
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Purchases, sales and settlements
|
|
|
(1)
|
|
|
5
|
|
|
(2)
|
|||
|
Transfers in and /or out of Level 3
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
1
|
|
$
|
5
|
|
$
|
(6)
|
A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows:
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Pension Percentage of Plan Assets
|
|
Postretirement Percentage of Plan Assets
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
U.S. Equities
|
|
8
|
%
|
11
|
%
|
57
|
%
|
50
|
%
|
International Equities
|
|
4
|
|
4
|
|
5
|
|
5
|
|
Fixed Maturities
|
|
69
|
|
66
|
|
34
|
|
39
|
|
Short-term Investments
|
|
0
|
|
1
|
|
4
|
|
6
|
|
Real Estate
|
|
6
|
|
6
|
|
0
|
|
0
|
|
Other
|
|
13
|
|
12
|
|
0
|
|
0
|
|
Total
|
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
The expected benefit payments for the Company's pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company's postretirement plan, for the years indicated are as follows:
|
|||||||||
|
|
|
|
|
|
|
|||
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
|
Other Postretirement Benefits - Medicare Part D Subsidy Receipts
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
2015
|
|
$
|
570
|
|
$
|
172
|
|
$
|
13
|
2016
|
|
|
590
|
|
|
174
|
|
|
14
|
2017
|
|
|
614
|
|
|
176
|
|
|
15
|
2018
|
|
|
629
|
|
|
176
|
|
|
15
|
2019
|
|
|
649
|
|
|
176
|
|
|
15
|
2020-2024
|
|
|
3,552
|
|
|
866
|
|
|
83
|
Total
|
|
$
|
6,604
|
|
$
|
1,740
|
|
$
|
155
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Current tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
||||
|
U.S.
|
|
$
|
447
|
|
$
|
(596)
|
|
$
|
598
|
|||
|
State and local
|
|
|
0
|
|
|
(7)
|
|
|
13
|
|
Foreign
|
|
|
8
|
|
|
26
|
|
|
11
|
|||
|
Total
|
|
|
455
|
|
|
(577)
|
|
|
622
|
|||
Deferred tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
||||
|
U.S.
|
|
|
886
|
|
|
700
|
|
|
(553)
|
|||
|
State and local
|
|
|
0
|
|
|
3
|
|
|
0
|
|
Foreign
|
|
|
1
|
|
|
0
|
|
|
3
|
|||
|
Total
|
|
|
887
|
|
|
703
|
|
|
(550)
|
|||
Total income tax expense on continuing operations before equity in earnings of operating
|
|
|
|
|
|
|
|
|
|
||||
|
joint ventures
|
|
$
|
1,342
|
|
$
|
126
|
|
$
|
72
|
|||
Income tax expense on equity in earnings of operating joint ventures
|
|
|
0
|
|
|
23
|
|
|
22
|
||||
Income tax expense (benefit) on discontinued operations
|
|
|
4
|
|
|
(2)
|
|
|
(1)
|
||||
Income tax expense (benefit) reported in equity related to:
|
|
|
|
|
|
|
|
|
|
||||
|
Other comprehensive income (loss)
|
|
|
1,514
|
|
|
(1,671)
|
|
|
260
|
|||
|
Additional paid-in capital
|
|
|
(1)
|
|
|
(14)
|
|
|
(19)
|
|||
|
Stock-based compensation programs
|
|
|
(11)
|
|
|
(12)
|
|
|
(22)
|
|||
Total income taxes
|
|
$
|
2,848
|
|
$
|
(1,550)
|
|
$
|
312
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Expected federal income tax expense
|
|
$
|
1,743
|
|
$
|
544
|
|
$
|
358
|
||||
Non-taxable investment income
|
|
|
(296)
|
|
|
(266)
|
|
|
(228)
|
||||
Low income housing and other tax credits
|
|
|
(111)
|
|
|
(91)
|
|
|
(66)
|
||||
Medicare Part D
|
|
|
3
|
|
|
(43)
|
|
|
(1)
|
||||
Other
|
|
|
3
|
|
|
(18)
|
|
|
9
|
||||
|
Total income tax expense on continuing operations before equity in earnings of
|
|
|
|
|
|
|
|
|
|
|||
|
|
operating joint ventures
|
|
$
|
1,342
|
|
$
|
126
|
|
$
|
72
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Deferred tax assets
|
|
|
|
|
|
|
||
|
Policyholders' dividends
|
|
$
|
2,555
|
|
$
|
1,812
|
|
|
Insurance reserves
|
|
|
2,053
|
|
|
2,588
|
|
|
Employee benefits
|
|
|
69
|
|
|
0
|
|
|
Other
|
|
|
81
|
|
|
169
|
|
|
Deferred tax assets before valuation allowance
|
|
|
4,758
|
|
|
4,569
|
|
|
Valuation allowance
|
|
|
(5)
|
|
|
(7)
|
|
|
Deferred tax assets after valuation allowance
|
|
|
4,753
|
|
|
4,562
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
||
|
Net unrealized investment gains
|
|
|
4,651
|
|
|
2,193
|
|
|
Deferred policy acquisition costs
|
|
|
2,255
|
|
|
2,243
|
|
|
Investments
|
|
|
1,854
|
|
|
1,289
|
|
|
Value of business acquired
|
|
|
433
|
|
|
559
|
|
|
Deferred annuity bonus
|
|
|
297
|
|
|
351
|
|
|
Employee benefits
|
|
|
0
|
|
|
223
|
|
|
Deferred tax liabilities
|
|
|
9,490
|
|
|
6,858
|
|
Net deferred tax liability
|
|
$
|
(4,737)
|
|
$
|
(2,296)
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Valuation allowance related to state and local deferred tax assets
|
|
$
|
0
|
|
$
|
0
|
||
Valuation allowance related to foreign operations deferred tax assets
|
|
$
|
5
|
|
$
|
7
|
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Federal net operating and capital loss carryforwards
|
|
$
|
0
|
|
$
|
0
|
||
State net operating and capital loss carryforwards(1)
|
|
$
|
5
|
|
$
|
5
|
||
General business credits(2)
|
|
$
|
126
|
|
$
|
0
|
(1)
|
Expires between 2029 and 2030.
|
(2)
|
Expires between 2031 and 2034.
|
|
|
|
|
|
|
At December 31,
|
|||||||
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Undistributed earnings of foreign subsidiaries (assuming permanent reinvestment)
|
|
$
|
82
|
|
$
|
64
|
|
$
|
57
|
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
|
|
|
|
(in millions)
|
|||||||
Balance at January 1,
|
|
$
|
8
|
|
$
|
10
|
|
$
|
69
|
|
|
Increases in unrecognized tax benefits-prior years
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
(Decreases) in unrecognized tax benefits-prior years
|
|
|
0
|
|
|
(2)
|
|
|
(1)
|
|
|
Increases in unrecognized tax benefits-current year
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(Decreases) in unrecognized tax benefits-current year
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Settlements with taxing authorities
|
|
|
(2)
|
|
|
0
|
|
|
(60)
|
|
|
Balance at December 31,
|
|
$
|
6
|
|
$
|
8
|
|
$
|
10
|
|
|
Unrecognized tax benefits that, if recognized, would favorably impact the
|
|
|
|
|
|
|
|
|
|
|
|
effective rate
|
$
|
6
|
|
$
|
8
|
|
$
|
10
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Interest and penalties recognized in the consolidated statements of operations
|
|
$
|
4
|
|
$
|
1
|
|
$
|
0
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||
Interest and penalties recognized in liabilities in the consolidated statements of
|
|
|
|
|
|
|
|
|
|
||||
|
financial position
|
|
|
|
|
$
|
4
|
|
$
|
0
|
Major Tax Jurisdiction
|
|
Open Tax Years
|
United States
|
|
2007 - 2014
|
|
|
|
|
As of December 31, 2014
|
|||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||
Fixed maturities, available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. Treasury securities and obligations of U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
authorities and agencies
|
|
$
|
0
|
|
$
|
12,768
|
|
$
|
0
|
|
$
|
0
|
|
$
|
12,768
|
|
Obligations of U.S. states and their political subdivisions
|
|
|
0
|
|
|
5,875
|
|
|
6
|
|
|
0
|
|
|
5,881
|
||
Foreign government bonds
|
|
|
0
|
|
|
2,305
|
|
|
2
|
|
|
0
|
|
|
2,307
|
||
Corporate securities
|
|
|
0
|
|
|
115,062
|
|
|
859
|
|
|
0
|
|
|
115,921
|
||
Asset-backed securities
|
|
|
0
|
|
|
6,811
|
|
|
3,568
|
|
|
0
|
|
|
10,379
|
||
Commercial mortgage-backed securities
|
|
|
0
|
|
|
13,121
|
|
|
1
|
|
|
0
|
|
|
13,122
|
||
Residential mortgage-backed securities
|
|
|
0
|
|
|
4,205
|
|
|
6
|
|
|
0
|
|
|
4,211
|
||
|
Subtotal
|
|
|
0
|
|
|
160,147
|
|
|
4,442
|
|
|
0
|
|
|
164,589
|
|
Trading account assets:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. Treasury securities and obligations of U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
authorities and agencies
|
|
|
0
|
|
|
258
|
|
|
0
|
|
|
0
|
|
|
258
|
|
Obligations of U.S. states and their political subdivisions
|
|
|
0
|
|
|
199
|
|
|
0
|
|
|
0
|
|
|
199
|
||
Foreign government bonds
|
|
|
0
|
|
|
148
|
|
|
21
|
|
|
0
|
|
|
169
|
||
Corporate securities
|
|
|
0
|
|
|
13,065
|
|
|
89
|
|
|
0
|
|
|
13,154
|
||
Asset-backed securities
|
|
|
0
|
|
|
823
|
|
|
387
|
|
|
0
|
|
|
1,210
|
||
Commercial mortgage-backed securities
|
|
|
0
|
|
|
2,546
|
|
|
0
|
|
|
0
|
|
|
2,546
|
||
Residential mortgage-backed securities
|
|
|
0
|
|
|
1,675
|
|
|
2
|
|
|
0
|
|
|
1,677
|
||
Equity securities
|
|
|
44
|
|
|
0
|
|
|
207
|
|
|
0
|
|
|
251
|
||
All other(3)
|
|
|
168
|
|
|
20,052
|
|
|
0
|
|
|
(16,544)
|
|
|
3,676
|
||
|
Subtotal
|
|
|
212
|
|
|
38,766
|
|
|
706
|
|
|
(16,544)
|
|
|
23,140
|
|
Equity securities, available-for-sale
|
|
|
3,999
|
|
|
2,235
|
|
|
91
|
|
|
0
|
|
|
6,325
|
||
Commercial mortgage and other loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Other long-term investments
|
|
|
9
|
|
|
3
|
|
|
1,093
|
|
|
(2)
|
|
|
1,103
|
||
Short-term investments
|
|
|
3,887
|
|
|
1,166
|
|
|
0
|
|
|
0
|
|
|
5,053
|
||
Cash equivalents
|
|
|
1,394
|
|
|
1,415
|
|
|
0
|
|
|
0
|
|
|
2,809
|
||
Other assets
|
|
|
4
|
|
|
96
|
|
|
0
|
|
|
0
|
|
|
100
|
||
Due from parent and affiliates
|
|
|
0
|
|
|
2,827
|
|
|
5,128
|
|
|
0
|
|
|
7,955
|
||
|
Subtotal excluding separate account assets
|
|
|
9,505
|
|
|
206,655
|
|
|
11,460
|
|
|
(16,546)
|
|
|
211,074
|
|
Separate account assets(4)
|
|
|
45,845
|
|
|
180,258
|
|
|
24,126
|
|
|
0
|
|
|
250,229
|
||
|
Total assets
|
|
$
|
55,350
|
|
$
|
386,913
|
|
$
|
35,586
|
|
$
|
(16,546)
|
|
$
|
461,303
|
|
Future policy benefits(5)
|
|
|
0
|
|
|
0
|
|
|
5,077
|
|
|
0
|
|
|
5,077
|
||
Other liabilities
|
|
|
3
|
|
|
6,874
|
|
|
3
|
|
|
(6,661)
|
|
|
219
|
||
Due to parent and affiliates
|
|
|
5
|
|
|
11,464
|
|
|
0
|
|
|
(8,532)
|
|
|
2,937
|
||
|
Total liabilities
|
|
$
|
8
|
|
$
|
18,338
|
|
$
|
5,080
|
|
$
|
(15,193)
|
|
$
|
8,233
|
|
|
|
|
As of December 31, 2013
|
|||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting(1)
|
|
Total
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Fixed maturities, available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. Treasury securities and obligations of U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
authorities and agencies
|
|
$
|
0
|
|
$
|
9,328
|
|
$
|
0
|
|
$
|
0
|
|
$
|
9,328
|
|
Obligations of U.S. states and their political subdivisions
|
|
|
0
|
|
|
3,145
|
|
|
0
|
|
|
0
|
|
|
3,145
|
||
Foreign government bonds
|
|
|
0
|
|
|
1,671
|
|
|
1
|
|
|
0
|
|
|
1,672
|
||
Corporate securities
|
|
|
0
|
|
|
112,746
|
|
|
564
|
|
|
0
|
|
|
113,310
|
||
Asset-backed securities
|
|
|
0
|
|
|
6,902
|
|
|
2,948
|
|
|
0
|
|
|
9,850
|
||
Commercial mortgage-backed securities
|
|
|
0
|
|
|
12,901
|
|
|
111
|
|
|
0
|
|
|
13,012
|
||
Residential mortgage-backed securities
|
|
|
0
|
|
|
4,694
|
|
|
8
|
|
|
0
|
|
|
4,702
|
||
|
Subtotal
|
|
|
0
|
|
|
151,387
|
|
|
3,632
|
|
|
0
|
|
|
155,019
|
|
Trading account assets:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. Treasury securities and obligations of U.S. government
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
authorities and agencies
|
|
|
0
|
|
|
141
|
|
|
0
|
|
|
0
|
|
|
141
|
|
Obligations of U.S. states and their political subdivisions
|
|
|
0
|
|
|
190
|
|
|
0
|
|
|
0
|
|
|
190
|
||
Foreign government bonds
|
|
|
0
|
|
|
117
|
|
|
0
|
|
|
0
|
|
|
117
|
||
Corporate securities
|
|
|
0
|
|
|
12,898
|
|
|
83
|
|
|
0
|
|
|
12,981
|
||
Asset-backed securities
|
|
|
0
|
|
|
742
|
|
|
385
|
|
|
0
|
|
|
1,127
|
||
Commercial mortgage-backed securities
|
|
|
0
|
|
|
2,441
|
|
|
0
|
|
|
0
|
|
|
2,441
|
||
Residential mortgage-backed securities
|
|
|
0
|
|
|
1,828
|
|
|
2
|
|
|
0
|
|
|
1,830
|
||
Equity securities
|
|
|
37
|
|
|
0
|
|
|
216
|
|
|
0
|
|
|
253
|
||
All other(3)
|
|
|
550
|
|
|
15,981
|
|
|
0
|
|
|
(13,768)
|
|
|
2,763
|
||
|
Subtotal
|
|
|
587
|
|
|
34,338
|
|
|
686
|
|
|
(13,768)
|
|
|
21,843
|
|
Equity securities, available-for-sale
|
|
|
4,228
|
|
|
2,104
|
|
|
89
|
|
|
0
|
|
|
6,421
|
||
Commercial mortgage and other loans
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Other long-term investments
|
|
|
7
|
|
|
39
|
|
|
880
|
|
|
0
|
|
|
926
|
||
Short-term investments
|
|
|
5,010
|
|
|
757
|
|
|
1
|
|
|
0
|
|
|
5,768
|
||
Cash equivalents
|
|
|
768
|
|
|
1,148
|
|
|
6
|
|
|
0
|
|
|
1,922
|
||
Other assets
|
|
|
3
|
|
|
202
|
|
|
0
|
|
|
0
|
|
|
205
|
||
Due from parent and affiliates
|
|
|
0
|
|
|
550
|
|
|
379
|
|
|
0
|
|
|
929
|
||
|
Subtotal excluding separate account assets
|
|
|
10,603
|
|
|
190,525
|
|
|
5,673
|
|
|
(13,768)
|
|
|
193,033
|
|
Separate account assets(4)
|
|
|
46,079
|
|
|
168,402
|
|
|
22,550
|
|
|
0
|
|
|
237,031
|
||
|
Total assets
|
|
$
|
56,682
|
|
$
|
358,927
|
|
$
|
28,223
|
|
$
|
(13,768)
|
|
$
|
430,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits(5)
|
|
|
0
|
|
|
0
|
|
|
(326)
|
|
|
0
|
|
|
(326)
|
||
Other liabilities
|
|
|
0
|
|
|
9,336
|
|
|
5
|
|
|
(7,257)
|
|
|
2,084
|
||
Due to parent and affiliates
|
|
|
0
|
|
|
8,310
|
|
|
423
|
|
|
(6,548)
|
|
|
2,185
|
||
|
Total liabilities
|
|
$
|
0
|
|
$
|
17,646
|
|
$
|
102
|
|
$
|
(13,805)
|
|
$
|
3,943
|
(1)
|
“Netting” amounts represent cash collateral of $1.4 billion and ($37) million as of December 31, 2014 and December 31, 2013, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.
|
(2)
|
Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets”.
|
(3)
|
Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets.
|
(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 assets classified as Level 3 consist primarily of real estate and real estate investment funds. 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 Consolidated Statement of Financial Position.
|
(5)
|
For the year ended December 31, 2014, the net embedded derivative liability position of $5.1 billion includes $0.6 billion of embedded derivatives in an asset position and $5.6 billion of embedded derivatives in a liability position. For the year ended December 31, 2013, the net embedded derivative asset position of $0.3 billion includes $1.2 billion of embedded derivatives in an asset position and $0.9 billion of embedded derivatives in a liability position.
|
|
|
|
|
As of December 31, 2014
|
|||||||
|
|
|
|
Internal(1)
|
|
External(2)
|
|
Total
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
|
|
||
Obligations of U.S. states and their political subdivisions
|
|
|
6
|
|
|
0
|
|
|
6
|
||
Foreign government bonds
|
|
$
|
0
|
|
$
|
23
|
|
$
|
23
|
||
Corporate securities
|
|
|
586
|
|
|
362
|
|
|
948
|
||
Asset-backed securities
|
|
|
143
|
|
|
3,812
|
|
|
3,955
|
||
Commercial mortgage-backed securities
|
|
|
1
|
|
|
0
|
|
|
1
|
||
Residential mortgage-backed securities
|
|
|
3
|
|
|
5
|
|
|
8
|
||
Equity securities
|
|
|
91
|
|
|
207
|
|
|
298
|
||
Other long-term investments
|
|
|
4
|
|
|
1,089
|
|
|
1,093
|
||
Short-term investments
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Cash equivalents
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Other assets
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Due from parent and affiliates
|
|
|
4,555
|
|
|
573
|
|
|
5,128
|
||
|
Subtotal excluding separate account assets(3)
|
|
|
5,389
|
|
|
6,071
|
|
|
11,460
|
|
Separate account assets
|
|
|
23,160
|
|
|
966
|
|
|
24,126
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
28,549
|
|
$
|
7,037
|
|
$
|
35,586
|
|
Future policy benefits
|
|
$
|
5,077
|
|
$
|
0
|
|
$
|
5,077
|
||
Other liabilities
|
|
|
0
|
|
|
3
|
|
|
3
|
||
Due to parent and affiliates
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Total liabilities
|
|
$
|
5,077
|
|
$
|
3
|
|
$
|
5,080
|
|
|
|
|
As of December 31, 2013
|
|||||||
|
|
|
|
Internal(1)
|
|
External(2)
|
|
Total
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
|
|
|
|
|
|
|
|
|
|
||
Foreign government bonds
|
|
|
0
|
|
|
1
|
|
|
1
|
||
Corporate securities
|
|
|
477
|
|
|
170
|
|
|
647
|
||
Asset-backed securities
|
|
|
167
|
|
|
3,166
|
|
|
3,333
|
||
Commercial mortgage-backed securities
|
|
|
3
|
|
|
108
|
|
|
111
|
||
Residential mortgage-backed securities
|
|
|
3
|
|
|
7
|
|
|
10
|
||
Equity securities
|
|
|
88
|
|
|
217
|
|
|
305
|
||
Other long-term investments
|
|
|
0
|
|
|
880
|
|
|
880
|
||
Short-term investments
|
|
|
1
|
|
|
0
|
|
|
1
|
||
Cash equivalents
|
|
|
6
|
|
|
0
|
|
|
6
|
||
Other assets
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Due from parent and affiliates
|
|
|
0
|
|
|
379
|
|
|
379
|
||
|
Subtotal excluding separate account assets(3)
|
|
|
745
|
|
|
4,928
|
|
|
5,673
|
|
Separate account assets
|
|
|
21,665
|
|
|
885
|
|
|
22,550
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
22,410
|
|
$
|
5,813
|
|
$
|
28,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future policy benefits
|
|
$
|
(326)
|
|
$
|
0
|
|
$
|
(326)
|
||
Other liabilities
|
|
|
5
|
|
|
0
|
|
|
5
|
||
Due to parent and affiliates
|
|
|
423
|
|
|
0
|
|
|
423
|
||
|
Total liabilities
|
|
$
|
102
|
|
$
|
0
|
|
$
|
102
|
(1)
|
Represents valuations reflecting both internally-derived and market inputs, as well as third party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table.
|
(2)
|
Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.
|
(3)
|
Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets.
|
|
|
|
|
As of December 31, 2014
|
||||||||||||
|
|
|
|
Fair Value
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
|
Impact of Increase in Input on Fair Value(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Corporate securities
|
|
$
|
586
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.22%
|
-
|
15.0%
|
|
9.10%
|
Decrease
|
||
|
|
|
|
|
|
|
Market comparables
|
|
EBITDA multiples(2)
|
|
6.1X
|
-
|
6.1X
|
|
6.1X
|
Increase
|
|
|
|
|
|
|
|
Liquidation
|
|
Liquidation value
|
|
22.12%
|
-
|
100.0%
|
|
82.92%
|
Increase
|
Asset-backed securities
|
|
$
|
143
|
|
Discounted cash flow
|
|
Prepayment rate(3)
|
|
26.78%
|
-
|
28.03%
|
|
27.53%
|
Increase
|
||
|
|
|
|
|
|
|
|
|
Default rate(3)
|
|
3.70%
|
-
|
6.14%
|
|
5.16%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Loss severity(3)
|
|
39.77%
|
-
|
45.00%
|
|
41.88%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Liquidity premium
|
|
1.00%
|
-
|
2.00%
|
|
1.90%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Average life (years)
|
|
0.63
|
-
|
13.64
|
|
5.58
|
Increase
|
|
|
|
|
|
|
|
|
|
Comparable spreads
|
|
0.42%
|
-
|
38.00%
|
|
4.27%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Comparable security yields
|
|
0.86%
|
-
|
8.86%
|
|
8.21%
|
Decrease
|
|
Due from parent
|
|
|
|
|
|
||||||||||
|
affiliates
|
|
$
|
4,555
|
|
Fair values are primarily determined in the same manner as future policy benefits
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
benefits(4)
|
|
$
|
5,077
|
|
Discounted cash flow
|
|
Lapse rate(5)
|
|
0%
|
-
|
14%
|
|
|
Decrease
|
||
|
|
|
|
|
|
|
|
|
NPR spread(6)
|
|
0.00%
|
-
|
1.30%
|
|
|
Decrease
|
|
|
|
|
|
|
|
Utilization rate(7)
|
|
63%
|
-
|
96%
|
|
|
Increase
|
||
|
|
|
|
|
|
|
|
|
Withdrawal rate(8)
|
|
74%
|
-
|
100%
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
Mortality rate(9)
|
|
0%
|
-
|
14%
|
|
|
Decrease
|
|
|
|
|
|
|
|
Equity volatility curve
|
|
17%
|
-
|
28%
|
|
|
Increase
|
|
|
|
|
As of December 31, 2013
|
||||||||||||
|
|
|
|
Fair Value
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Minimum
|
|
Maximum
|
|
Weighted Average
|
Impact of Increase in Input on Fair Value(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Corporate securities
|
|
$
|
477
|
|
Discounted cash flow
|
|
Discount rate
|
|
6.30%
|
-
|
15.00%
|
|
10.59%
|
Decrease
|
|
|
|
|
|
|
|
Market comparables
|
|
EBITDA multiples(2)
|
|
5.0X
|
-
|
7.0X
|
|
5.71X
|
Increase
|
|
|
|
|
|
|
|
Liquidation
|
|
Liquidation value
|
|
11.61%
|
-
|
100.00%
|
|
59.17%
|
Increase
|
Asset-backed securities
|
|
$
|
167
|
|
Discounted cash flow
|
|
Prepayment rate(3)
|
|
15.0%
|
-
|
27.41%
|
|
18.36%
|
Increase
|
||
|
|
|
|
|
|
|
|
|
Default rate(3)
|
|
2.46%
|
-
|
5.11%
|
|
2.97%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Loss severity(3)
|
|
35.00%
|
-
|
45.00%
|
|
36.96%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Liquidity premium
|
|
1.00%
|
-
|
2.00%
|
|
1.90%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Average life (years)
|
|
0.67
|
-
|
14.76
|
|
6.18
|
Increase
|
|
|
|
|
|
|
|
|
|
Comparable spreads
|
|
0.19%
|
-
|
4.12%
|
|
1.20%
|
Decrease
|
|
|
|
|
|
|
|
|
|
Comparable security yields
|
|
0.61%
|
-
|
6.84%
|
|
6.25%
|
Decrease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Future policy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
benefits(4)
|
|
$
|
(326)
|
|
Discounted cash flow
|
|
Lapse rate(5)
|
|
0%
|
-
|
11%
|
|
|
Decrease
|
||
|
|
|
|
|
|
|
|
|
NPR spread(6)
|
|
0.08%
|
-
|
1.09%
|
|
|
Decrease
|
|
|
|
|
|
|
|
Utilization rate(7)
|
|
70%
|
-
|
94%
|
|
|
Increase
|
||
|
|
|
|
|
|
|
|
|
Withdrawal rate(8)
|
|
86%
|
-
|
100%
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
Mortality rate(9)
|
|
0%
|
-
|
13%
|
|
|
Decrease
|
|
|
|
|
|
|
|
Equity volatility curve
|
|
15%
|
-
|
28%
|
|
|
Increase
|
||
Due to parent and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
affiliates
|
|
$
|
423
|
|
Fair values are primarily determined in the same manner as future policy benefits
|
|
(1)
|
Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table.
|
(2)
|
EBITDA multiples represent multiples of earnings before interest, taxes, depreciation and amortization, and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments.
|
(3)
|
In isolation, an increase in prepayment rate or a decrease in default rate or loss severity would generally result in an increase in fair value, although the interrelationships between these inputs depend on specific market conditions.
|
(4)
|
Future policy benefits primarily represent general account liabilities for the optional 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.
|
(5)
|
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.
|
(6)
|
To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company and its affiliates, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium.
|
(7)
|
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.
|
(8)
|
The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions may vary based on the product type, contractholder age, tax status, and withdrawal timing. The fair value of the liability will generally increase the closer the withdrawal rate is to 100%.
|
(9)
|
Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 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.
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|||||||||||||||||||
|
|
|
|
|
|
Fixed Maturities Available-For-Sale
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
|
|
U.S. States
|
|
Foreign Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|||||||
|
|
(in millions)
|
|||||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
1
|
|
$
|
564
|
|
$
|
2,948
|
|
$
|
111
|
|
$
|
8
|
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
26
|
|
|
9
|
|
|
0
|
|
|
0
|
|
|
|
Included in other comprehensive income (loss)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(21)
|
|
|
(28)
|
|
|
0
|
|
|
0
|
||
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
17
|
|
|
0
|
|
|
0
|
|||
|
Purchases
|
|
|
0
|
|
|
2
|
|
|
2
|
|
|
791
|
|
|
2,253
|
|
|
813
|
|
|
1
|
|||
|
Sales
|
|
|
0
|
|
|
(1)
|
|
|
0
|
|
|
(418)
|
|
|
(327)
|
|
|
0
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(304)
|
|
|
(939)
|
|
|
(2)
|
|
|
(3)
|
|||
|
Other(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
310
|
|
|
1,111
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
(98)
|
|
|
(1,474)
|
|
|
(921)
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
6
|
|
$
|
2
|
|
$
|
859
|
|
$
|
3,568
|
|
$
|
1
|
|
$
|
6
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(19)
|
|
$
|
(1)
|
|
$
|
0
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|||||||||||||||||||
|
|
|
|
|
|
Trading Account Assets
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|
Equity
|
|
All Other Activity
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
0
|
|
$
|
83
|
|
$
|
385
|
|
$
|
0
|
|
$
|
2
|
|
$
|
216
|
|
$
|
0
|
||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Other income
|
|
|
0
|
|
|
(7)
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Purchases
|
|
|
21
|
|
|
169
|
|
|
117
|
|
|
87
|
|
|
0
|
|
|
24
|
|
|
0
|
|||
|
Sales
|
|
|
0
|
|
|
(151)
|
|
|
(20)
|
|
|
0
|
|
|
0
|
|
|
(19)
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
0
|
|
|
(10)
|
|
|
(26)
|
|
|
0
|
|
|
0
|
|
|
(17)
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
9
|
|
|
46
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
(4)
|
|
|
(114)
|
|
|
(87)
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
21
|
|
$
|
89
|
|
$
|
387
|
|
$
|
0
|
|
$
|
2
|
|
$
|
207
|
|
$
|
0
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Other income
|
|
$
|
0
|
|
$
|
5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
6
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Equity Securities Available-For-Sale
|
|
Other Long-term Investments
|
|
Short-term Investments
|
|
Cash equivalents
|
|
Due from parent and affiliates
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||
Fair Value, beginning of period
|
|
$
|
89
|
|
$
|
880
|
|
$
|
1
|
|
$
|
6
|
|
$
|
379
|
||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
(2)
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
4,377
|
|||||||
|
|
|
Other income
|
|
|
0
|
|
|
53
|
|
|
0
|
|
|
0
|
|
|
0
|
|||||||
|
|
Included in other comprehensive income (loss)
|
|
|
8
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(15)
|
||||||||
|
Purchases
|
|
|
2
|
|
|
241
|
|
|
0
|
|
|
0
|
|
|
475
|
|||||||||
|
Sales
|
|
|
(6)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(85)
|
|||||||||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
600
|
|||||||||
|
Settlements
|
|
|
0
|
|
|
(84)
|
|
|
(1)
|
|
|
0
|
|
|
0
|
|||||||||
|
Other(1)
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
(6)
|
|
|
(424)
|
|||||||||
|
Transfers into Level 3(2)
|
|
|
7
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
230
|
|||||||||
|
Transfers out of Level 3(2)
|
|
|
(8)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(409)
|
|||||||||
Fair Value, end of period
|
|
$
|
91
|
|
$
|
1,093
|
|
$
|
0
|
|
$
|
0
|
|
$
|
5,128
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
(1)
|
|
$
|
(1)
|
|
$
|
0
|
|
$
|
0
|
|
$
|
4,365
|
|||||||
|
|
|
Other income
|
|
$
|
0
|
|
$
|
53
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate Account Assets (4)
|
|
Future Policy Benefits
|
|
Other Liabilities
|
|
Due to parent and affiliates
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||
Fair Value, beginning of period
|
|
$
|
22,550
|
|
$
|
326
|
|
$
|
(5)
|
|
$
|
(424)
|
|||||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
6
|
|
|
(4,738)
|
|
|
2
|
|
|
0
|
||||||||||
|
|
|
Interest credited to policyholders' account balances
|
|
|
2,679
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||
|
Net investment income
|
|
|
24
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Purchases
|
|
|
1,712
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Sales
|
|
|
(684)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Issuances
|
|
|
0
|
|
|
(665)
|
|
|
0
|
|
|
0
|
||||||||||||
|
Settlements
|
|
|
(1,771)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Foreign currency translation
|
|
|
(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Other(1)
|
|
|
(369)
|
|
|
0
|
|
|
0
|
|
|
424
|
||||||||||||
|
Transfers into Level 3(2)
|
|
|
100
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Transfers out of Level 3(2)
|
|
|
(120)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
Fair Value, end of period
|
|
$
|
24,126
|
|
$
|
(5,077)
|
|
$
|
(3)
|
|
$
|
0
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
(4,732)
|
|
$
|
2
|
|
$
|
0
|
||||||||||
|
|
|
Interest credited to policyholders' account
|
|
$
|
1,755
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|||||||||||||||||||
|
|
|
|
|
|
Fixed Maturities Available-For-Sale
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
|
|
U.S. States
|
|
Foreign Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|||||||
|
|
(in millions)
|
|||||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
844
|
|
$
|
2,971
|
|
$
|
0
|
|
$
|
11
|
||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(22)
|
|
|
6
|
|
|
1
|
|
|
0
|
|
|
|
Included in other comprehensive income (loss)
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
(48)
|
|
|
(9)
|
|
|
(1)
|
|
|
0
|
||
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
34
|
|
|
0
|
|
|
0
|
|||
|
Purchases
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
385
|
|
|
2,272
|
|
|
419
|
|
|
0
|
|||
|
Sales
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
(89)
|
|
|
(219)
|
|
|
(3)
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
0
|
|
|
0
|
|
|
(2)
|
|
|
(531)
|
|
|
(1,099)
|
|
|
(8)
|
|
|
(3)
|
|||
|
Other(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(167)
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
0
|
|
|
13
|
|
|
402
|
|
|
10
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
0
|
|
|
(12)
|
|
|
(377)
|
|
|
(851)
|
|
|
(297)
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
1
|
|
$
|
564
|
|
$
|
2,948
|
|
$
|
111
|
|
$
|
8
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(48)
|
|
$
|
(4)
|
|
$
|
0
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|||||||||||||||||||
|
|
|
|
|
|
Trading Account Assets
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|
Equity
|
|
All Other Activity
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
0
|
|
$
|
93
|
|
$
|
381
|
|
$
|
1
|
|
$
|
2
|
|
$
|
205
|
|
$
|
19
|
||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(16)
|
|
|
|
|
Other income
|
|
|
0
|
|
|
(6)
|
|
|
3
|
|
|
(1)
|
|
|
0
|
|
|
13
|
|
|
1
|
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Purchases
|
|
|
0
|
|
|
18
|
|
|
321
|
|
|
75
|
|
|
0
|
|
|
17
|
|
|
0
|
|||
|
Sales
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(17)
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
0
|
|
|
(50)
|
|
|
(206)
|
|
|
(1)
|
|
|
0
|
|
|
(2)
|
|
|
(4)
|
|||
|
Other(1)
|
|
|
0
|
|
|
0
|
|
|
(75)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
52
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
(24)
|
|
|
(43)
|
|
|
(74)
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
83
|
|
$
|
385
|
|
$
|
0
|
|
$
|
2
|
|
$
|
216
|
|
$
|
0
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(16)
|
|
|
|
|
Other income
|
|
$
|
0
|
|
$
|
(5)
|
|
$
|
5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
13
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Equity Securities Available-For-Sale
|
|
Other Long-term Investments
|
|
Short-term Investments
|
|
Cash equivalents
|
|
Due from parent and affiliates
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||
Fair Value, beginning of period
|
|
$
|
44
|
|
$
|
507
|
|
$
|
0
|
|
$
|
0
|
|
$
|
1,646
|
||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
2
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
2
|
|||||||
|
|
|
Other income
|
|
|
0
|
|
|
68
|
|
|
0
|
|
|
0
|
|
|
0
|
|||||||
|
|
Included in other comprehensive income (loss)
|
|
|
39
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
(19)
|
||||||||
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
16
|
|||||||||
|
Purchases
|
|
|
16
|
|
|
437
|
|
|
0
|
|
|
7
|
|
|
436
|
|||||||||
|
Sales
|
|
|
(14)
|
|
|
0
|
|
|
(2)
|
|
|
0
|
|
|
(404)
|
|||||||||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||||||||
|
Settlements
|
|
|
(3)
|
|
|
(97)
|
|
|
(2)
|
|
|
(1)
|
|
|
(166)
|
|||||||||
|
Other(1)
|
|
|
0
|
|
|
(37)
|
|
|
0
|
|
|
0
|
|
|
(1,044)
|
|||||||||
|
Transfers into Level 3(2)
|
|
|
6
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
0
|
|||||||||
|
Transfers out of Level 3(2)
|
|
|
(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(88)
|
|||||||||
Fair Value, end of period
|
|
$
|
89
|
|
$
|
880
|
|
$
|
1
|
|
$
|
6
|
|
$
|
379
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
(4)
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(2)
|
|||||||
|
|
|
Other income
|
|
$
|
0
|
|
$
|
64
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate Account Assets (4)
|
|
Future Policy Benefits
|
|
Other Liabilities
|
|
Due to parent and affiliates
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||
Fair Value, beginning of period
|
|
$
|
21,100
|
|
$
|
(1,552)
|
|
$
|
0
|
|
$
|
(19)
|
|||||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
2
|
|
|
2,467
|
|
|
(3)
|
|
|
(2,238)
|
||||||||||
|
|
|
Other income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
|
Interest credited to policyholders' account balances
|
|
|
2,635
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||
|
Net investment income
|
|
|
20
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Purchases
|
|
|
1,640
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Sales
|
|
|
(826)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Issuances
|
|
|
0
|
|
|
(589)
|
|
|
0
|
|
|
542
|
||||||||||||
|
Settlements
|
|
|
(2,120)
|
|
|
0
|
|
|
0
|
|
|
4
|
||||||||||||
|
Other(1)
|
|
|
140
|
|
|
0
|
|
|
(2)
|
|
|
1,288
|
||||||||||||
|
Transfers into Level 3(2)
|
|
|
89
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Transfers out of Level 3(2)
|
|
|
(130)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
Fair Value, end of period
|
|
$
|
22,550
|
|
$
|
326
|
|
$
|
(5)
|
|
$
|
(424)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
2,426
|
|
$
|
(3)
|
|
$
|
(2,217)
|
||||||||||
|
|
|
Other income
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(1)
|
||||||||||
|
|
|
Interest credited to policyholders' account
|
|
$
|
1,638
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
|||||||||||||||||||
|
|
|
|
|
|
Fixed Maturities Available-For-Sale
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
|
|
U.S. States
|
|
Foreign Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|||||||
|
|
(in millions)
|
|||||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
66
|
|
$
|
0
|
|
$
|
25
|
|
$
|
803
|
|
$
|
1,657
|
|
$
|
12
|
|
$
|
16
|
||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(34)
|
|
|
12
|
|
|
0
|
|
|
0
|
|
|
|
Included in other comprehensive income (loss)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
48
|
|
|
75
|
|
|
1
|
|
|
0
|
||
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
28
|
|
|
0
|
|
|
1
|
|||
|
Purchases
|
|
|
0
|
|
|
10
|
|
|
0
|
|
|
316
|
|
|
2,523
|
|
|
43
|
|
|
0
|
|||
|
Sales
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(161)
|
|
|
(413)
|
|
|
0
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
(254)
|
|
|
(470)
|
|
|
(3)
|
|
|
(6)
|
|||
|
Other(1)
|
|
|
(64)
|
|
|
0
|
|
|
(8)
|
|
|
72
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
0
|
|
|
7
|
|
|
217
|
|
|
60
|
|
|
37
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
(10)
|
|
|
(24)
|
|
|
(168)
|
|
|
(501)
|
|
|
(90)
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
844
|
|
$
|
2,971
|
|
$
|
0
|
|
$
|
11
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
|||||||||||||||||||
|
|
|
|
|
|
Trading Account Assets
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S Government
|
|
Corporate
|
|
Asset-Backed
|
|
Commercial Mortgage-Backed
|
|
Residential Mortgage-Backed
|
|
Equity
|
|
All Other Activity
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
9
|
|
$
|
109
|
|
$
|
359
|
|
$
|
21
|
|
$
|
2
|
|
$
|
217
|
|
$
|
87
|
||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(51)
|
|
|
|
|
Other income
|
|
|
0
|
|
|
(7)
|
|
|
12
|
|
|
1
|
|
|
0
|
|
|
14
|
|
|
2
|
|
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Purchases
|
|
|
0
|
|
|
16
|
|
|
183
|
|
|
16
|
|
|
2
|
|
|
19
|
|
|
0
|
|||
|
Sales
|
|
|
0
|
|
|
(8)
|
|
|
(7)
|
|
|
0
|
|
|
(2)
|
|
|
(30)
|
|
|
0
|
|||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Settlements
|
|
|
(2)
|
|
|
(25)
|
|
|
(109)
|
|
|
(1)
|
|
|
0
|
|
|
(14)
|
|
|
(19)
|
|||
|
Other(1)
|
|
|
(7)
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(2)
|
|
|
0
|
|
|
5
|
|
|
3
|
|
|
80
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(2)
|
|
|
0
|
|
|
(4)
|
|
|
(65)
|
|
|
(116)
|
|
|
0
|
|
|
(1)
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
93
|
|
$
|
381
|
|
$
|
1
|
|
$
|
2
|
|
$
|
205
|
|
$
|
19
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(7)
|
|
|
|
|
Other income
|
|
$
|
0
|
|
$
|
0
|
|
$
|
2
|
|
$
|
0
|
|
$
|
0
|
|
$
|
3
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Securities Available-For-Sale
|
|
Commercial Mortgage and Other Loans
|
|
Other Long-term Investments
|
|
Due from parent and affiliates
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||||
Fair Value, beginning of period
|
|
$
|
66
|
|
$
|
(1)
|
|
$
|
371
|
|
$
|
2,737
|
|||||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
(5)
|
|
|
1
|
|
|
6
|
|
|
(18)
|
||||||||||
|
|
|
Other income
|
|
|
0
|
|
|
0
|
|
|
44
|
|
|
0
|
||||||||||
|
|
Included in other comprehensive income (loss)
|
|
|
8
|
|
|
0
|
|
|
0
|
|
|
23
|
|||||||||||
|
Net investment income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
30
|
||||||||||||
|
Purchases
|
|
|
64
|
|
|
0
|
|
|
173
|
|
|
161
|
||||||||||||
|
Sales
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
(72)
|
||||||||||||
|
Issuances
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
422
|
||||||||||||
|
Settlements
|
|
|
0
|
|
|
0
|
|
|
(87)
|
|
|
(378)
|
||||||||||||
|
Transfers into Level 3(2)
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Transfers out of Level 3(2)
|
|
|
(92)
|
|
|
0
|
|
|
0
|
|
|
(1,259)
|
||||||||||||
Fair Value, end of period
|
|
$
|
44
|
|
$
|
0
|
|
$
|
507
|
|
$
|
1,646
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(289)
|
||||||||||
|
|
|
Other income
|
|
$
|
0
|
|
$
|
0
|
|
$
|
10
|
|
$
|
0
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate Account Assets(4)
|
|
Future Policy Benefits
|
|
Other Liabilities
|
|
Due to parent and affiliates
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||
Fair Value, beginning of period
|
|
$
|
19,333
|
|
$
|
(1,091)
|
|
$
|
(3)
|
|
$
|
(83)
|
|||||||||||||
|
Total gains (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
(8)
|
|
|
(22)
|
|
|
68
|
|
|
|
Other income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2)
|
||||||||||
|
|
|
Interest credited to policyholders' account balances
|
|
|
1,929
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||
|
Purchases
|
|
|
4,221
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Sales
|
|
|
(1,692)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Issuances
|
|
|
0
|
|
|
(453)
|
|
|
0
|
|
|
0
|
||||||||||||
|
Settlements
|
|
|
(2,272)
|
|
|
0
|
|
|
25
|
|
|
(2)
|
||||||||||||
|
Transfers into Level 3(2)
|
|
|
326
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
|
Transfers out of Level 3(2)
|
|
|
(745)
|
|
|
0
|
|
|
0
|
|
|
0
|
||||||||||||
Fair Value, end of period
|
|
$
|
21,100
|
|
$
|
(1,552)
|
|
$
|
0
|
|
$
|
(19)
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for assets/liabilities still held(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
313
|
|
$
|
0
|
|
$
|
7
|
||||||||||
|
|
|
Interest credited to policyholders' account
|
|
$
|
156
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
(1)
|
Other primarily represents reclassifications of certain assets between reporting categories. For the year ended December 31, 2014, “Other” for separate account assets represents a revision to correctly reflect elimination of intercompany separate account investments.
|
(2)
|
Transfers into or out of Level 3 are reported as the value as of the beginning of the quarter in which the transfer occurs.
|
(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)
|
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 Consolidated Statement of Financial Position.
|
|
|
|
|
As of December 31, 2014
|
|||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Netting(1)
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest Rate
|
|
$
|
5
|
|
$
|
13,353
|
|
$
|
6
|
|
$
|
|
|
$
|
13,364
|
|
|
Currency
|
|
|
0
|
|
|
2,684
|
|
|
0
|
|
|
|
|
|
2,684
|
|
|
Credit
|
|
|
0
|
|
|
11
|
|
|
0
|
|
|
|
|
|
11
|
|
|
Currency/Interest Rate
|
|
|
0
|
|
|
2,949
|
|
|
0
|
|
|
|
|
|
2,949
|
|
|
Equity
|
|
|
2
|
|
|
1,025
|
|
|
5
|
|
|
|
|
|
1,032
|
|
|
Netting(1)
|
|
|
|
|
|
|
|
|
|
|
|
(16,546)
|
|
|
(16,546)
|
|
|
|
Total derivative assets
|
|
$
|
7
|
|
$
|
20,022
|
|
$
|
11
|
|
$
|
(16,546)
|
|
$
|
3,494
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest Rate
|
|
$
|
3
|
|
$
|
12,166
|
|
$
|
3
|
|
$
|
|
|
$
|
12,172
|
|
|
Currency
|
|
|
0
|
|
|
2,631
|
|
|
0
|
|
|
|
|
|
2,631
|
|
|
Credit
|
|
|
0
|
|
|
28
|
|
|
0
|
|
|
|
|
|
28
|
|
|
Currency/Interest Rate
|
|
|
0
|
|
|
2,419
|
|
|
0
|
|
|
|
|
|
2,419
|
|
|
Equity
|
|
|
0
|
|
|
1,024
|
|
|
0
|
|
|
|
|
|
1,024
|
|
Netting(1)
|
|
|
|
|
|
|
|
|
|
|
|
(15,194)
|
|
|
(15,194)
|
|
|
|
Total derivative liabilities
|
|
$
|
3
|
|
$
|
18,268
|
|
$
|
3
|
|
$
|
(15,194)
|
|
$
|
3,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
|
|||||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Netting(1)
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest Rate
|
|
$
|
10
|
|
$
|
12,215
|
|
$
|
8
|
|
$
|
|
|
$
|
12,233
|
|
|
Currency
|
|
|
0
|
|
|
1,434
|
|
|
0
|
|
|
|
|
|
1,434
|
|
|
Credit
|
|
|
0
|
|
|
15
|
|
|
0
|
|
|
|
|
|
15
|
|
|
Currency/Interest Rate
|
|
|
0
|
|
|
1,350
|
|
|
0
|
|
|
|
|
|
1,350
|
|
|
Equity
|
|
|
0
|
|
|
828
|
|
|
0
|
|
|
|
|
|
828
|
|
|
Netting(1)
|
|
|
|
|
|
|
|
|
|
|
|
(13,768)
|
|
|
(13,768)
|
|
|
|
Total derivative assets
|
|
$
|
10
|
|
$
|
15,842
|
|
$
|
8
|
|
$
|
(13,768)
|
|
$
|
2,092
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest Rate
|
|
$
|
5
|
|
$
|
13,475
|
|
$
|
5
|
|
$
|
|
|
$
|
13,485
|
|
|
Currency
|
|
|
0
|
|
|
1,435
|
|
|
0
|
|
|
|
|
|
1,435
|
|
|
Credit
|
|
|
0
|
|
|
48
|
|
|
0
|
|
|
|
|
|
48
|
|
|
Currency/Interest Rate
|
|
|
0
|
|
|
1,923
|
|
|
0
|
|
|
|
|
|
1,923
|
|
|
Equity
|
|
|
0
|
|
|
819
|
|
|
0
|
|
|
|
|
|
819
|
|
|
Netting(1)
|
|
|
|
|
|
|
|
|
|
|
|
(13,805)
|
|
|
(13,805)
|
|
|
|
Total derivative liabilities
|
|
$
|
5
|
|
$
|
17,700
|
|
$
|
5
|
|
$
|
(13,805)
|
|
$
|
3,905
|
(1)
|
“Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty.
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
|
|
|
|
Derivative Assets - Equity
|
|
Derivative Liability - Equity
|
|
Derivative Asset - Interest Rate
|
|
Derivative Liabilities - Interest Rate
|
||||
|
|
(in millions)
|
||||||||||||||
Fair Value, beginning of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
8
|
|
$
|
(5)
|
||||
|
Total gains or (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
0
|
|
|
0
|
|
|
(2)
|
|
|
2
|
|
|
|
|
Other income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Settlements
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(1)
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
5
|
|
$
|
0
|
|
$
|
6
|
|
$
|
(3)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for the period relating to those level 3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
assets that were still held at the end of the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(2)
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
||||||||||
|
|
|
|
|
|
Derivative Assets - Equity
|
|
Derivative Liability - Equity
|
|
Derivative Asset - Interest Rate
|
|
Derivative Liabilities - Interest Rate
|
||||
|
|
|
|
|
|
(in millions)
|
||||||||||
Fair Value, beginning of period
|
|
$
|
19
|
|
$
|
(19)
|
|
$
|
5
|
|
$
|
(2)
|
||||
|
Total gains or (losses) (realized/unrealized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
|
(15)
|
|
|
15
|
|
|
3
|
|
|
(3)
|
|
|
|
|
Other income
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Purchases
|
|
|
(4)
|
|
|
4
|
|
|
0
|
|
|
0
|
|||
|
Transfers into Level 3(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
|
Transfers out of Level 3(1)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|||
Fair Value, end of period
|
|
$
|
0
|
|
$
|
0
|
|
$
|
8
|
|
$
|
(5)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) for the period relating to those level 3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
assets that were still held at the end of the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Included in earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Realized investment gains (losses), net
|
|
$
|
(15)
|
|
$
|
15
|
|
$
|
3
|
|
$
|
(3)
|
|
|
|
|
Other income
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
(1)
|
Transfers into or out of Level 3 are generally reported as the value as of the beginning of the period in which the transfer occurs.
|
|
|
|
|
Years Ended December 31,
|
|||||||
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||
|
Other long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in fair value
|
|
|
54
|
|
|
68
|
|
|
40
|
|
|
|
|
December 31, 2014
|
|||||||||||||
|
|
|
|
Fair Value
|
|
Carrying Amount(1)
|
|||||||||||
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commercial mortgage and other loans
|
|
$
|
0
|
|
$
|
317
|
|
$
|
40,942
|
|
$
|
41,259
|
|
$
|
39,030
|
|
|
Policy loans
|
|
|
0
|
|
|
0
|
|
|
8,857
|
|
|
8,857
|
|
|
8,857
|
|
|
Other long term investments
|
|
|
0
|
|
|
0
|
|
|
1,856
|
|
|
1,856
|
|
|
1,666
|
|
|
Other affiliated notes receivable
|
|
|
0
|
|
|
6,515
|
|
|
0
|
|
|
6,515
|
|
|
5,798
|
|
|
Short-term investments
|
|
|
0
|
|
|
521
|
|
|
0
|
|
|
521
|
|
|
521
|
|
|
Cash and cash equivalents
|
|
|
856
|
|
|
169
|
|
|
0
|
|
|
1,025
|
|
|
1,025
|
|
|
Accrued investment income
|
|
|
0
|
|
|
1,991
|
|
|
0
|
|
|
1,991
|
|
|
1,991
|
|
|
Due from parents and affiliates
|
|
|
0
|
|
|
148
|
|
|
0
|
|
|
148
|
|
|
148
|
|
|
Other assets
|
|
|
93
|
|
|
884
|
|
|
109
|
|
|
1,086
|
|
|
1,086
|
|
|
|
Total assets
|
|
$
|
949
|
|
$
|
10,545
|
|
$
|
51,764
|
|
$
|
63,258
|
|
$
|
60,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Policyholders' account balances - investment contracts
|
|
$
|
0
|
|
$
|
35,170
|
|
$
|
29,606
|
|
$
|
64,776
|
|
$
|
63,145
|
|
|
Securities sold under agreements to repurchase
|
|
|
0
|
|
|
9,407
|
|
|
0
|
|
|
9,407
|
|
|
9,407
|
|
|
Cash collateral for loaned securities
|
|
|
0
|
|
|
4,236
|
|
|
0
|
|
|
4,236
|
|
|
4,236
|
|
|
Short-term debt
|
|
|
0
|
|
|
1,582
|
|
|
550
|
|
|
2,132
|
|
|
2,106
|
|
|
Long-term debt
|
|
|
0
|
|
|
7,140
|
|
|
4,031
|
|
|
11,171
|
|
|
9,670
|
|
|
Other liabilities
|
|
|
0
|
|
|
3,034
|
|
|
120
|
|
|
3,154
|
|
|
3,154
|
|
|
Due to parents and affiliates
|
|
|
0
|
|
|
108
|
|
|
0
|
|
|
108
|
|
|
108
|
|
|
Separate account liabilities - investment contracts
|
|
|
0
|
|
|
82,801
|
|
|
23,703
|
|
|
106,504
|
|
|
106,504
|
|
|
|
Total liabilities
|
|
$
|
0
|
|
$
|
143,478
|
|
$
|
58,010
|
|
$
|
201,488
|
|
$
|
198,330
|
|
|
|
|
December 31, 2013
|
|||||||||||||
|
|
|
|
Fair Value
|
|
Carrying Amount(1)
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commercial mortgage and other loans
|
|
$
|
0
|
|
$
|
287
|
|
$
|
36,511
|
|
$
|
36,798
|
|
$
|
35,249
|
|
|
Policy loans
|
|
|
0
|
|
|
0
|
|
|
8,749
|
|
|
8,749
|
|
|
8,749
|
|
|
Other long term investments
|
|
|
0
|
|
|
0
|
|
|
2,358
|
|
|
2,358
|
|
|
2,114
|
|
|
Other affiliated notes receivable
|
|
|
0
|
|
|
5,364
|
|
|
135
|
|
|
5,499
|
|
|
5,184
|
|
|
Short-term investments
|
|
|
0
|
|
|
515
|
|
|
0
|
|
|
515
|
|
|
515
|
|
|
Cash and cash equivalents
|
|
|
721
|
|
|
117
|
|
|
0
|
|
|
838
|
|
|
838
|
|
|
Accrued investment income
|
|
|
0
|
|
|
2,000
|
|
|
0
|
|
|
2,000
|
|
|
2,000
|
|
|
Due from parents and affiliates
|
|
|
0
|
|
|
54
|
|
|
0
|
|
|
54
|
|
|
54
|
|
|
Other assets
|
|
|
138
|
|
|
1,086
|
|
|
252
|
|
|
1,476
|
|
|
1,476
|
|
|
|
Total assets
|
|
$
|
859
|
|
$
|
9,423
|
|
$
|
48,005
|
|
$
|
58,287
|
|
$
|
56,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Policyholders' account balances - investment contracts
|
|
$
|
0
|
|
$
|
34,273
|
|
$
|
28,880
|
|
$
|
63,153
|
|
$
|
61,988
|
|
|
Securities sold under agreements to repurchase
|
|
|
0
|
|
|
7,898
|
|
|
0
|
|
|
7,898
|
|
|
7,898
|
|
|
Cash collateral for loaned securities
|
|
|
0
|
|
|
4,992
|
|
|
0
|
|
|
4,992
|
|
|
4,992
|
|
|
Short-term debt
|
|
|
0
|
|
|
1,648
|
|
|
0
|
|
|
1,648
|
|
|
1,613
|
|
|
Long-term debt
|
|
|
0
|
|
|
7,215
|
|
|
5,556
|
|
|
12,771
|
|
|
11,570
|
|
|
Other liabilities
|
|
|
0
|
|
|
3,150
|
|
|
266
|
|
|
3,416
|
|
|
3,416
|
|
|
Due to parents and affiliates
|
|
|
0
|
|
|
108
|
|
|
0
|
|
|
108
|
|
|
108
|
|
|
Separate account liabilities - investment contracts
|
|
|
0
|
|
|
82,070
|
|
|
22,163
|
|
|
104,233
|
|
|
104,233
|
|
|
|
Total liabilities
|
|
$
|
0
|
|
$
|
141,354
|
|
$
|
56,865
|
|
$
|
198,219
|
|
$
|
195,818
|
(1)
|
Carrying values presented herein differ from those in the Company’s Consolidated Statement of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments.
|
|
|
|
|
Maturity
|
|
|
|
|
|
|
||
|
|
|
|
Dates
|
|
Rate
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Dollar floating rate notes
|
|
2016 - 2026
|
|
0.85% - 2.30%
|
|
$
|
713
|
|
$
|
405
|
||
U.S. Dollar fixed rate notes(1)
|
|
2014 - 2044
|
|
0.53% - 9.33%
|
|
|
7,268
|
|
|
4,222
|
||
Euro-denominated fixed rate notes
|
|
2025
|
|
2.30%
|
|
|
128
|
|
|
84
|
||
Japanese Yen fixed rate notes(2)
|
|
2014 - 2021
|
|
0.44% - 2.66%
|
|
|
207
|
|
|
338
|
||
|
Total long-term notes receivable - affiliated(3)
|
|
|
|
|
|
|
8,316
|
|
|
5,049
|
|
Short-term notes receivable - affiliated(4)
|
|
|
|
|
|
|
883
|
|
|
1,065
|
||
|
|
Total notes receivable - affiliated
|
|
|
|
|
|
$
|
9,199
|
|
$
|
6,114
|
(1)
|
Includes current portion of the long-term notes receivable of $364 million at December 31, 2014 and $24 million at December 31, 2013.
|
(2)
|
Includes current portion of the long-term notes receivable of $77 million at December 31, 2014 and $50 million at December 31, 2013.
|
(3)
|
All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.
|
(4)
|
Short-term notes receivable have variable rates, which averaged 0.67% at December 31, 2014 and 0.59% at December 31, 2013. Short-term notes receivable are payable on demand.
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Underlying/
|
|
|
|
|
Gross Fair Value
|
|
|
|
|
Gross Fair Value
|
|||||||||||
Instrument Type
|
|
Notional(1)
|
|
Assets
|
|
Liabilities
|
|
Notional(1)(2)
|
|
Assets(2)
|
|
Liabilities(2)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Interest Rate Swaps
|
|
$
|
1,428
|
|
$
|
1
|
|
$
|
(177)
|
|
$
|
1,931
|
|
$
|
8
|
|
$
|
(183)
|
|
|
Foreign Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Foreign Currency Forwards
|
|
|
32
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Currency/Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Foreign Currency Swaps
|
|
|
9,131
|
|
|
408
|
|
|
(128)
|
|
|
7,590
|
|
|
88
|
|
|
(516)
|
|
|
|
Total Qualifying Derivatives
|
|
$
|
10,591
|
|
$
|
414
|
|
$
|
(305)
|
|
$
|
9,521
|
|
$
|
96
|
|
$
|
(699)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Interest Rate Swaps
|
|
$
|
293,662
|
|
|
12,531
|
|
|
(11,210)
|
|
$
|
272,059
|
|
$
|
11,563
|
|
$
|
(12,747)
|
|
|
|
Interest Rate Futures
|
|
|
32,000
|
|
|
5
|
|
|
(3)
|
|
|
34,422
|
|
|
10
|
|
|
(5)
|
|
|
|
Interest Rate Options
|
|
|
55,072
|
|
|
843
|
|
|
(841)
|
|
|
49,292
|
|
|
652
|
|
|
(654)
|
|
|
|
Interest Rate Forwards
|
|
|
832
|
|
|
1
|
|
|
(1)
|
|
|
1,452
|
|
|
0
|
|
|
(6)
|
|
Foreign Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Foreign Currency Forwards
|
|
|
57,106
|
|
|
2,673
|
|
|
(2,630)
|
|
|
39,214
|
|
|
1,430
|
|
|
(1,431)
|
|
|
|
Foreign Currency Options
|
|
|
297
|
|
|
6
|
|
|
(1)
|
|
|
212
|
|
|
5
|
|
|
(4)
|
|
|
Currency/Interest Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Foreign Currency Swaps
|
|
|
27,946
|
|
|
2,540
|
|
|
(2,291)
|
|
|
22,492
|
|
|
1,262
|
|
|
(1,407)
|
|
|
Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Credit Default Swaps
|
|
|
2,411
|
|
|
11
|
|
|
(28)
|
|
|
2,078
|
|
|
15
|
|
|
(48)
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Equity Futures
|
|
|
99
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|
Equity Options
|
|
|
74,805
|
|
|
526
|
|
|
(502)
|
|
|
80,149
|
|
|
374
|
|
|
(357)
|
|
|
|
Total Return Swaps
|
|
|
29,438
|
|
|
507
|
|
|
(521)
|
|
|
22,444
|
|
|
454
|
|
|
(463)
|
|
|
Synthetic GIC's
|
|
|
74,667
|
|
|
6
|
|
|
0
|
|
|
77,881
|
|
|
8
|
|
|
0
|
||
|
|
Total Non-Qualifying Derivatives(3)
|
|
$
|
648,335
|
|
$
|
19,649
|
|
$
|
(18,028)
|
|
$
|
601,695
|
|
$
|
15,773
|
|
$
|
(17,122)
|
|
|
|
Total Derivatives(4)
|
|
$
|
658,926
|
|
$
|
20,063
|
|
$
|
(18,333)
|
|
$
|
611,216
|
|
$
|
15,869
|
|
$
|
(17,821)
|
(1)
|
Notional amounts are presented on a gross basis and include derivatives used to offset existing positions.
|
(2)
|
Prior period has been revised to include the gross notional amount and fair value of derivative contracts used in a broker-dealer capacity.
|
(3)
|
Based on notional amounts, most of the Company’s derivatives do not qualify for hedge accounting as follows: i) derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income, ii) derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules, and iii) synthetic GICs, which are product standalone derivatives that do not qualify as hedging instruments under hedge accounting rules.
|
(4)
|
Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $5,065 million as of December 31, 2014 and a net asset of $336 million as of December 31, 2013, included primarily in “Future policy benefits”.
|
|
|
|
|
|
December 31, 2014
|
||||||||||||||
|
|
|
|
|
|
|
|
Gross
|
|
Net
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Gross
|
|
Amounts
|
|
Amounts
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Amounts of
|
|
Offset in the
|
|
Presented in
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Recognized
|
|
Statement of
|
|
the Statement
|
|
Financial
|
|
|
|
|||||
|
|
|
|
|
Financial
|
|
Financial
|
|
of Financial
|
|
Instruments/
|
|
|
Net
|
|||||
|
|
|
|
|
Instruments
|
|
Position
|
|
Position
|
|
Collateral
|
|
|
Amount
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||
Offsetting of Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Derivatives
|
|
$
|
19,913
|
|
$
|
(16,546)
|
|
$
|
3,367
|
|
$
|
(351)
|
|
|
$
|
3,016
|
|||
Securities purchased under agreement to resell
|
|
|
669
|
|
|
0
|
|
|
669
|
|
|
(669)
|
|
|
|
0
|
|||
Total Assets
|
|
$
|
20,582
|
|
$
|
(16,546)
|
|
$
|
4,036
|
|
$
|
(1,020)
|
|
|
$
|
3,016
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Offsetting of Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Derivatives
|
|
$
|
18,268
|
|
$
|
(15,194)
|
|
$
|
3,074
|
|
$
|
(906)
|
|
|
$
|
2,168
|
|||
Securities sold under agreement to repurchase
|
|
|
9,407
|
|
|
0
|
|
|
9,407
|
|
|
(9,407)
|
|
|
|
0
|
|||
Total Liabilities
|
|
$
|
27,675
|
|
$
|
(15,194)
|
|
$
|
12,481
|
|
$
|
(10,313)
|
|
|
$
|
2,168
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
December 31, 2013
|
||||||||||||||
|
|
|
|
|
|
|
|
Gross
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Amounts
|
|
Amounts
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Amounts of
|
|
Offset in the
|
|
Presented in
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Recognized
|
|
Statement of
|
|
the Statement
|
|
Financial
|
|
|
|
|||||
|
|
|
|
|
Financial
|
|
Financial
|
|
of Financial
|
|
Instruments/
|
|
|
Net
|
|||||
|
|
|
|
|
Instruments
|
|
Position
|
|
Position
|
|
Collateral
|
|
|
Amount
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||
Offsetting of Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Derivatives
|
|
$
|
15,848
|
|
$
|
(13,768)
|
|
$
|
2,080
|
|
$
|
(956)
|
|
|
$
|
1,124
|
|||
Securities purchased under agreement to resell
|
|
|
617
|
|
|
0
|
|
|
617
|
|
|
(617)
|
|
|
|
0
|
|||
Total Assets
|
|
$
|
16,465
|
|
$
|
(13,768)
|
|
$
|
2,697
|
|
$
|
(1,573)
|
|
|
$
|
1,124
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Offsetting of Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Derivatives
|
|
$
|
17,705
|
|
$
|
(13,805)
|
|
$
|
3,900
|
|
$
|
(1,999)
|
|
|
$
|
1,901
|
|||
Securities sold under agreement to repurchase
|
|
|
7,898
|
|
|
0
|
|
|
7,898
|
|
|
(7,898)
|
|
|
|
0
|
|||
Total Liabilities
|
|
$
|
25,603
|
|
$
|
(13,805)
|
|
$
|
11,798
|
|
$
|
(9,897)
|
|
|
$
|
1,901
|
|
|
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited
|
|
Accumulated
|
||||||
|
|
|
|
|
Realized
|
|
Net
|
|
|
|
|
|
To Policyholders'
|
|
Other
|
||||||
|
|
|
|
|
Investment
|
|
Investment
|
|
Other
|
|
Interest
|
|
Account
|
|
Comprehensive
|
||||||
|
|
|
|
|
Gains (Losses)
|
|
Income
|
|
Income
|
|
Expense
|
|
Balances
|
|
Income (Loss)(1)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
$
|
(4)
|
|
$
|
(57)
|
|
$
|
0
|
|
$
|
0
|
|
$
|
2
|
|
$
|
0
|
||
|
Total fair value hedges
|
|
|
(4)
|
|
|
(57)
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(3)
|
|
|
0
|
|
|
(13)
|
||
|
Currency/Interest Rate
|
|
|
0
|
|
|
15
|
|
|
104
|
|
|
0
|
|
|
0
|
|
|
600
|
||
|
Total cash flow hedges
|
|
|
0
|
|
|
15
|
|
|
104
|
|
|
(3)
|
|
|
0
|
|
|
587
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Currency…
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
Total net investment hedges
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
2,703
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency
|
|
|
80
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency/Interest Rate
|
|
|
444
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Credit
|
|
|
(16)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Equity
|
|
|
(70)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Embedded Derivatives
|
|
|
(417)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Total non-qualifying hedges
|
|
|
2,724
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Total
|
|
$
|
2,720
|
|
$
|
(42)
|
|
$
|
108
|
|
$
|
(3)
|
|
$
|
2
|
|
$
|
592
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Year Ended December 31, 2013
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited
|
|
Accumulated
|
||
|
|
|
|
|
Realized
|
|
Net
|
|
|
|
|
|
To Policyholders'
|
|
Other
|
||||||
|
|
|
|
|
Investment
|
|
Investment
|
|
Other
|
|
Interest
|
|
Account
|
|
Comprehensive
|
||||||
|
|
|
|
|
Gains (Losses)
|
|
Income
|
|
Income
|
|
Expense
|
|
Balances
|
|
Income (Loss)(1)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
(in millions)
|
||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
$
|
103
|
|
$
|
(71)
|
|
$
|
0
|
|
$
|
0
|
|
$
|
20
|
|
$
|
0
|
||
|
Total fair value hedges
|
|
|
103
|
|
|
(71)
|
|
|
0
|
|
|
0
|
|
|
20
|
|
|
0
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
0
|
|
|
6
|
||
|
Currency/Interest Rate
|
|
|
0
|
|
|
8
|
|
|
(39)
|
|
|
0
|
|
|
0
|
|
|
(216)
|
||
|
Total cash flow hedges
|
|
|
0
|
|
|
8
|
|
|
(39)
|
|
|
(1)
|
|
|
0
|
|
|
(210)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Currency(2)
|
|
|
0
|
|
|
0
|
|
|
(4)
|
|
|
0
|
|
|
0
|
|
|
4
|
||
|
Total net investment hedges
|
|
|
0
|
|
|
0
|
|
|
(4)
|
|
|
0
|
|
|
0
|
|
|
4
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
(1,703)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency/Interest Rate
|
|
|
(183)
|
|
|
0
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Credit
|
|
|
(11)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Equity
|
|
|
(182)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Embedded Derivatives
|
|
|
120
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Total non-qualifying hedges
|
|
|
(1,956)
|
|
|
0
|
|
|
(2)
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Total
|
|
$
|
(1,853)
|
|
$
|
(63)
|
|
$
|
(45)
|
|
$
|
(1)
|
|
$
|
20
|
|
$
|
(206)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited
|
|
Accumulated
|
||
|
|
|
|
|
Realized
|
|
Net
|
|
|
|
|
|
To Policyholders'
|
|
Other
|
||||||
|
|
|
|
|
Investment
|
|
Investment
|
|
Other
|
|
Interest
|
|
Account
|
|
Comprehensive
|
||||||
|
|
|
|
|
Gains (Losses)
|
|
Income
|
|
Income
|
|
Expense
|
|
Balances
|
|
Income (Loss)(1)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||
Derivatives Designated as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
$
|
25
|
|
$
|
(92)
|
|
$
|
0
|
|
$
|
0
|
|
$
|
33
|
|
$
|
0
|
||
|
Total fair value hedges
|
|
|
25
|
|
|
(92)
|
|
|
0
|
|
|
0
|
|
|
33
|
|
|
0
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1)
|
|
|
7
|
||
|
Currency/Interest Rate
|
|
|
0
|
|
|
2
|
|
|
(5)
|
|
|
0
|
|
|
0
|
|
|
(177)
|
||
|
Total cash flow hedges
|
|
|
0
|
|
|
2
|
|
|
(5)
|
|
|
0
|
|
|
(1)
|
|
|
(170)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Qualifying as Hedge Accounting Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest Rate
|
|
|
72
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency
|
|
|
(15)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Currency/Interest Rate
|
|
|
(20)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Credit
|
|
|
(48)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Equity
|
|
|
(127)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Embedded Derivatives
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
|
Total non-qualifying hedges
|
|
|
(134)
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
||
Total
|
|
$
|
(109)
|
|
$
|
(90)
|
|
$
|
(5)
|
|
$
|
0
|
|
$
|
32
|
|
$
|
(170)
|
(1)
|
Amounts deferred in “Accumulated other comprehensive income (loss).”
|
(2)
|
Relates to the sale of equity method investments.
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
Balance, December 31, 2011
|
|
$
|
2
|
|||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2012
|
|
|
(182)
|
|||
Amount reclassified into current period earnings
|
|
|
12
|
|||
Balance, December 31, 2012
|
|
|
(168)
|
|||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2013
|
|
|
(256)
|
|||
Amount reclassified into current period earnings
|
|
|
46
|
|||
Balance, December 31, 2013
|
|
|
(378)
|
|||
Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014
|
|
|
742
|
|||
Amount reclassified into current period earnings
|
|
|
(155)
|
|||
Balance, December 31, 2014
|
|
$
|
209
|
|
|
|
Operating Leases
|
|
Sub-lease Income
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
82
|
|
|
0
|
|
2016
|
|
|
69
|
|
|
0
|
|
2017
|
|
|
63
|
|
|
0
|
|
2018
|
|
|
43
|
|
|
0
|
|
2019
|
|
|
31
|
|
|
0
|
|
2020 and thereafter
|
|
|
85
|
|
|
0
|
|
|
Total
|
|
$
|
373
|
|
$
|
0
|
|
|
|
|
As of December 31,
|
||||
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
|
|
Total outstanding mortgage loan commitments
|
|
$
|
1,198
|
|
$
|
1,568
|
|
|
|
|
As of December 31,
|
||||
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
|
|
Expected to be funded from the general account and other operations outside the separate accounts(1)
|
|
$
|
4,164
|
|
$
|
4,851
|
|
|
Expected to be funded from separate accounts
|
|
$
|
28
|
|
$
|
274
|
(1)
|
Includes a remaining commitment of $194 million and $256 million at December 31, 2014 and 2013, respectively, related to the Company’s agreement to co-invest with the Fosun Group (Fosun) in a private equity fund, managed by Fosun, for the Chinese marketplace.
|
|
|
|
|
As of December 31,
|
||||
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
|
|
Guaranteed value of third parties' assets
|
|
$
|
74,667
|
|
$
|
78,061
|
|
|
Fair value of collateral supporting these assets
|
|
$
|
76,672
|
|
$
|
79,413
|
|
|
Asset associated with guarantee, carried at fair value
|
|
$
|
6
|
|
$
|
8
|
|
|
|
|
As of December 31,
|
||||
|
|
|
|
2014
|
|
2013
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
|
|
Other guarantees where amount can be determined
|
|
$
|
323
|
|
$
|
341
|
|
|
Accrued liability for other guarantees and indemnifications
|
|
$
|
0
|
|
$
|
2
|
|
|
|
|
As of December 31,
|
||||
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
||||
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
||
|
Premium tax offset for future undiscounted assessments
|
|
$
|
90
|
|
$
|
76
|
|
|
Premium tax offsets currently available for paid assessments
|
|
|
6
|
|
|
5
|
|
|
|
Total
|
|
$
|
96
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
Other liabilities:
|
|
|
|
|
|
|
||
|
Insolvency assessments
|
|
$
|
35
|
|
$
|
40
|
PART C:
|
OTHER INFORMATION
|
Item 26. EXHIBITS
|
Exhibit number Description of Exhibit
|
(a)
|
Board of Directors Resolution:
|
|
(i)
|
Resolution of Board of Directors of The Prudential Insurance Company of America establishing The Prudential Variable Appreciable Account. (Note 6)
|
|
(b)
|
Not Applicable.
|
|
(c)
|
Underwriting Contracts:
|
|
(i)
|
Distribution Agreement between Pruco Securities LLC and The Prudential Insurance Company of America. (Note 6)
|
|
(ii)
|
Proposed form of Agreement between Pruco Securities LLC and independent brokers with respect to the Sale of the Contracts. (Note 6)
|
|
(iii)
|
Schedules of Sales Commissions. (Note 6)
|
|
(d)
|
Contracts:
|
|
(i)
|
Variable Appreciable Life Insurance Contracts: (Note 7)
|
|
(a) With fixed death benefit for use in New Jersey and domicile approval states.
(b) With variable death benefit for use in New Jersey and domicile approval states.
(c) With fixed death benefit for use in non-domicile approval states.
(d) With variable death benefit for use in non-domicile approval states.
|
||
(ii)
|
Rider for Insured's Waiver of Premium Benefit. (Note 7)
|
|
(iii)
|
Rider for Applicant's Waiver of Premium Benefit. (Note 7)
|
|
(iv)
|
Rider for Insured's Accidental Death Benefit. (Note 7)
|
|
(v)
|
Rider for Level Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(vi)
|
Rider for Decreasing Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(vii)
|
Rider for Interim Term Insurance Benefit. (Note 7)
|
|
(viii)
|
Rider for Option to Purchase Additional Insurance on Life of Insured. (Note 7)
|
|
(ix)
|
Rider for Decreasing Term Insurance Benefit on Life of Insured Spouse. (Note 7)
|
|
(x)
|
Rider for Level Term Insurance Benefit on Dependent Children. (Note 7)
|
|
(xi)
|
Rider for Level Term Insurance Benefit on Dependent Children from Term Conversions. (Note 7)
|
|
(xii)
|
Rider for Level Term Insurance Benefit on Dependent Children from Term Conversions or Attained Age Change. (Note 7)
|
|
(xiii)
|
Endorsement defining Insured Spouse. (Note 7)
|
|
(xiv)
|
Rider covering lack of Evidence of Insurability on a Child. (Note 7)
|
|
(xv)
|
Rider modifying Waiver of Premium Benefit. (Note 7)
|
|
(xvi)
|
Rider to terminate a Supplementary Benefit. (Note 7)
|
|
(xvii)
|
Rider providing for election of Variable Reduced Paid-up Insurance. (Note 7)
|
|
(xviii)
|
Rider to provide for exclusion of Aviation Risk. (Note 7)
|
|
(xix)
|
Rider to provide for exclusion of Military Aviation Risk. (Note 7)
|
|
(xx)
|
Rider to provide for exclusion for War Risk. (Note 7)
|
|
(xxi)
|
Rider to provide for Reduced Paid-up Insurance. (Note 7)
|
|
(xxii)
|
Rider providing for Option to Exchange Policy. (Note 7)
|
|
(xxiii)
|
Endorsement defining Ownership and Control of the Contract. (Note 7)
|
|
(xxiv)
|
Rider providing for Modification of Incontestability and Suicide Provisions. (Note 7)
|
|
(xxv)
|
Endorsement issued in connection with Non-Smoker Qualified Contracts. (Note 7)
|
|
(xxvi)
|
Endorsement issued in connection with Smoker Qualified Contracts. (Note 7)
|
|
(xxvii)
|
Home Office Endorsement. (Note 7)
|
|
(xxviii)
|
Endorsement showing Basis of Computation for Non-Smoker Contracts. (Note 7)
|
|
(xxix)
|
Endorsement showing Basis of Computation for Smoker Contracts. (Note 7)
|
|
(xxx)
|
Rider for Term Insurance Benefit on Life of Insured-Decreasing Amount After Three Years.
(Note 7)
|
|
(xxxi)
|
Rider for Renewable Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(xxxii)
|
Rider for Level Term Insurance Benefit on Life of Insured Spouse. (Note 7)
|
|
(xxxiii)
|
Living Needs Benefit Rider:
(a) for use in Florida. (Note 7)
(b) for use in all approved jurisdictions except Florida and New York. (Note 7)
(c) for use in New York. (Note 7)
|
|
(xxxiv)
|
Rider for Renewable Term Insurance Benefit on Life of Insured Spouse. (Note 7)
|
|
(xxxv)
|
Rider for Level Term Insurance Benefit on Life of Insured Premium Increases Annually. (Note 7)
|
|
(xxxvi)
|
Rider for Term Insurance Benefit on Life of Insured Decreasing Amount. (Note 7)
|
(xxxvii)
|
Rider for a Level Premium Option. (Note 7)
|
|
(xxxviii)
|
Payment of Unscheduled Premium Benefit (Note 7)
|
|
(xxxix)
|
Rider for Scheduled Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(xl)
|
Endorsement altering the Assignment provision. (Note 7)
|
|
(xli)
|
Rider for Non-Convertible Term Insurance Benefit on Life of Insured Spouse. (Note 7)
|
|
(xlii)
|
Rider for Convertible Term Insurance Benefit on Life of Insured Spouse. (Note 7)
|
|
(xliii)
|
Rider for Level Term Insurance Benefit on Life of InsuredPremium Increases Annually (Note 7)
|
|
(xliv)
|
Rider for Non-Convertible Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(xlv)
|
Rider for Convertible Term Insurance Benefit on Life of Insured. (Note 7)
|
|
(xlvi)
|
Endorsement for altering List of Investment Options. (Note 7)
|
|
(e)
|
Application:
|
|
(i)
|
Application Form. (Note 6)
|
|
(ii)
|
Supplement to the Application for Variable Appreciable Life Insurance Contract. (Note 6)
|
|
(f)
|
Depositor’s Certificate of Incorporation and By-Laws:
|
|
(i)
|
Charter of The Prudential Insurance Company of America, as amended July 19, 2004. (Note 3)
|
|
(ii)
|
By-laws of The Prudential Insurance Company of America, as amended December 9, 2008.
(Note 6)
|
|
(g)
|
Reinsurance Contracts.
|
|
(i)
|
Agreement between Prudential and Pruco Life. (Note 4)
|
|
(ii)
|
Agreement between Prudential and Pruco Life of New Jersey. (Note 4)
|
|
(h)
|
Participation Agreements:
|
|
(i)
|
Form of 22c-2 Agreement (Note 5)
|
|
(i)
|
Administrative Contracts:
|
|
(i)
|
Service Agreement between Prudential and the Regulus Group, LLC. (Note 8)
|
|
(ii)
|
Revised Service Agreement between Prudential and the Regulus Group, LLC, a TransCentra company. (Note 9)
|
|
(iii) | Engagement Schedule No. 2 between Prudential and the Regulus Group, LLC (Note 11) | |
(j)
|
Not Applicable.
|
|
(k)
|
Opinion and Consent of Sun-Jin Moon, Esq., as to the legality of the securities being registered. (Note 1)
|
|
(l)
|
Not Applicable.
|
|
(m)
|
Not Applicable.
|
|
(n)
|
Other Opinions:
|
|
(i)
|
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm. (Note 1)
|
|
(ii)
|
Powers of Attorney: R. Axel, T. Baltimore, Jr., G. Bethune, G. Casellas, J. Cullen, R. Falzon, M. Grier, C. Horner, M. Hund-Mejean, K. Krapek, C. Poon, J., D. Scovanner, Strangfeld, Jr., J. Unruh. (Note 1)
|
|
(o)
|
None.
|
|
(p)
|
Not Applicable.
|
|
(q)
|
Redeemability Exemption:
|
|
(i)
|
Memorandum describing Prudential's issuance, transfer, and redemption procedures for the Contracts pursuant to Rule 6e-3(T)(b)(12)(iii) and method of computing adjustments in payments and cash surrender values upon conversion to fixed-benefit policies pursuant to Rule 6e-3(T)(b)(13)(v)(B). (Note 10)
|
|
(Note 1)
|
Filed herewith.
|
(Note 2)
|
Incorporated by reference to Post-Effective Amendment No. 28 to this Registration Statement, filed April 26, 2005 on behalf of The Prudential Variable Appreciable Account.
|
(Note 3)
|
Incorporated by reference to Post-Effective Amendment No. 18 to Form S-1, Registration No. 33-20083-01, filed April 14, 2005 on behalf of The Prudential Variable Contract Real Property Account.
|
(Note 4)
|
Incorporated by reference to Post-Effective Amendment No. 29 to this Registration Statement, filed April 21, 2006 on behalf of The Prudential Variable Appreciable Account.
|
(Note 5)
|
Incorporated by reference to Post-Effective Amendment No. 30 to this Registration Statement, filed April 18, 2007 on behalf of The Prudential Variable Appreciable Account.
|
(Note 6)
|
Incorporated by reference to Post-Effective Amendment No. 32 to this Registration Statement, filed April 21, 2009 on behalf of The Prudential Variable Appreciable Account.
|
(Note 7)
|
Incorporated by reference to Post-Effective Amendment No. 33 to this Registration Statement, filed April 13, 2010 on behalf of The Prudential Variable Appreciable Account.
|
(Note 8)
|
Incorporated by reference to Post-Effective Amendment No. 34 to this Registration Statement, filed April 10, 2014 on behalf of The Prudential Variable Appreciable Account.
|
(Note 9) | Incorporated by reference to Post-Effective Amendment No. 20 to Form Registration No. 333-112808, filed April 7, 2014 on behalf of The Pruco Life Variable Universal Account. |
(Note 10) | Incorporated by reference to Post-Effective Amendment No. 37 to this Registration Statement, filed April 10, 2014 on behalf of The Prudential Variable Appreciable Account. |
(Note 11) | Incorporated by reference to Post-Effective Amendment No. 28 to Form Registration No. 333-112808, filed April 7, 2015 on behalf of The Pruco Life Variable Universal Account. |
Item 27. Directors and Major Officers of Prudential
|
Item 28. Persons Controlled by or Under Common Control with the Depositor or the Registrant
|
Item 29. Indemnification
|
Item 30. Principal Underwriters
|
(b)
|
||||||
MANAGERS AND OFFICERS OF PRUCO SECURITIES, LLC
(“Prusec”)
|
||||||
Name and Principal
Business Address
--------------------------------------------------
|
Position and Office With Prusec
---------------------------------------------
|
|||||
Kent D. Sluyter (Note 1)
|
Chairman of the Board, Manager
|
|||||
John G. Gordon (Note 1)
|
President, Manager, Chief Operating Officer
|
|||||
Steven Weinreb (Note 3)
|
Vice President, Controller, Chief Financial Officer
|
|||||
Jeffrey Sheftic (Note 5)
|
|
Vice President
|
||||
John D. McGovern (Note 1)
|
Vice President, Chief Compliance Officer
|
|||||
Ronald P. Herrmann (Note 1)
|
|
Vice President, Manager
|
||||
Richard W. Kinville (Note 2)
|
Vice President, Anti-Money Laundering Officer
|
|||||
William D. Wilcox (Note 8 )
|
Chief Legal Officer
|
|||||
John D. Rosero (Note 1)
|
Secretary
|
|||||
Charles E. Anderson (Note 7 )
|
Vice President
|
|||||
Adam Scaramella (Note 1 )
|
Vice President and Assistant Secretary
|
|||||
Margaret M. Foran (Note 2)
|
Vice President
|
|||||
Mark A. Hug (Note 1)
|
Vice President, Manager
|
|||||
Patrick L. Hynes (Note 4 )
|
Vice President, Manager
|
|||||
Charles M. O'Donnell (Note 1)
|
Vice President
|
|||||
Michele Talafha (Note 3 )
|
Assistant Vice President
|
|||||
Kent D. Sluyter (Note 1)
|
Manager
|
|||||
Robert F. O'Donnell (Note 6 )
|
Manager
|
|||||
Stuart S. Parker (Note 3)
|
Manager
|
|||||
David Campen (Note 1)
|
Assistant Controller
|
|||||
Michael J. McQuade (Note 3)
|
Assistant Controller
|
|||||
Robert P. Smit (Note 3)
|
Assistant Controller
|
|||||
Robert Szuhany (Note 1)
|
Assistant Controller
|
|||||
Mary E. Yourth (Note 1)
|
Assistant Controller
|
|||||
Jason R. Chupak (Note 2)
|
Treasurer
|
|||||
Kathleen C. Hoffman (Note 2)
|
Assistant Treasurer
|
|||||
Laura J. Delaney (Note 2)
|
Assistant Treasurer
|
|||||
John M. Cafiero (Note 2)
|
Assistant Secretary
|
|||||
Sun-Jin Moon (Note 1)
|
Assistant Secretary
|
|||||
Patricia Christian (Note 1)
|
Assistant Secretary
|
|||||
Mary Jo Reich (Note 1)
|
Assistant Secretary
|
|||||
Mina Bailey (Note 2)
|
Assistant Secretary
|
|||||
(Note 1) 213 Washington Street, Newark, NJ 07102
|
||||||
(Note 2) 751 Broad Street, Newark, NJ 07102
|
||||||
(Note 3) Three Gateway Center, Newark, NJ 07102
|
||||||
(Note 4) 1 Mill Ridge Lane, Chester, NJ 07930
|
||||||
(Note 5) 200 Wood Avenue South, Iselin, NJ 08830
|
||||||
(Note 6) One Corporate Drive, Shelton, CT 06484
|
||||||
(Note 7) 13001 Bass Lake Road, Plymouth, MN 55442
|
||||||
(Note 8) 280 Trumball Street, 1 Commercial Plaza, Hartford, CT 06103
|
Compensation received by Prusec during the last fiscal year
with respect to variable life insurance products.
|
||||
Principal Underwriter
|
Gross Distribution Revenue*
|
Compensation on Events Occasioning the Deduction of a Deferred Sales Load
|
Brokerage Commissions**
|
Other Compensation
|
Prusec
|
$47,197,353
|
$-0-
|
$34,019,510
|
$-0-
|
Item 31. Location of Accounts and Records
|
Item 32. Management Services
|
Item 33. Representation of Reasonableness of Fees
|
The Prudential Variable Appreciable Account
|
(Registrant)
|
By: The Prudential Insurance Company of America
|
(Depositor)
|
By: /s/ Jordan K. Thomsen
Jordan K. Thomsen
Vice President and Corporate Counsel
|
Signature and Title
|
||
/s/ *
John R. Strangfeld, Jr.
President, Chairman of the Board, and Chief Executive Officer
|
||
/s/ *
Robert D. Axel
Senior Vice President, Principal Accounting Officer, and Corporate Controller
|
||
/s/ *
Robert M. Falzon
Executive Vice President and Chief Financial Officer
|
|
|
/s/ *
Thomas J. Baltimore, Jr.
Director
|
* By: /s/ Jordan K. Thomsen
Jordan K. Thomsen
(Attorney-in-Fact)
|
|
/s/ *
Gordon M. Bethune
Director
|
||
/s/ *
Gilbert F. Casellas
Director
|
||
/s/ *
James G. Cullen
Director
/s/ *
Mark B. Grier
Director
|
||
/s/ *
Constance J. Horner
Director
|
||
/s/ *
Martina T. Hund-Mejean
Director
|
||
/s/ *
Karl J. Krapek
Director
|
* By: /s/ Jordan K. Thomsen
Jordan K. Thomsen
(Attorney-in-Fact)
|
|
/s/ *
Christine A. Poon
Director
|
||
/s/ *
Douglas Scovanner
Director
|
||
/s/ *
James A. Unruh
Director
|
Item 26.
|
|
||
(i) Administrative Contracts:
|
(i)
|
Service Agreement between Prudential and the Regulus Group, LLC.
|
|
(ii)
|
Service Agreement between Prudential and Bank of New York Mellon.
|
||
(k) Legal Opinion and Consent:
|
Opinion and Consent of Sun-Jin Moon, Esq., as to the legality of the securities being registered.
|
||
(n) Other Opinions:
|
(i)
|
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
|
|
(ii)
|
Powers of Attorney: R. Axel, T. Baltimore, Jr., G. Bethune, G. Casellas, J. Cullen, R. Falzon, M. Grier, C. Horner, M. Hund-Mejean, K. Krapek, C. Poon, D. Scovanner , J. Strangfeld, Jr., J. Unruh.
|
||
|
1.Prudential is a corporation duly organized under the laws of the State of New Jersey and is a validly existing corporation.
|
|
2.The Account has been duly created and is validly existing as a separate account pursuant to the aforesaid provisions of New Jersey law.
|
|
3.The portion of the assets held in the Account equal to the reserve and other liabilities for variable benefits under the variable life insurance contracts is not chargeable with liabilities arising out of any other business Prudential may conduct.
|
|
4.The variable life insurance contracts are legal and binding obligations of Prudential, in accordance with their terms.
|