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Certain Long-Duration Contracts With Guarantees (Tables)
 12 Months Ended
Dec. 31, 2015
Insurance [Abstract]  
Schedule of Net Amount of Risk by Product and Guarantee
As of December 31, 2015 and 2014, the Company had the following guarantees associated with its contracts, by product and guarantee type:
 
December 31, 2015
 
December 31, 2014
 
In the Event of
Death
 
At Annuitization/
Accumulation (1)
 
In the Event of
Death
 
At Annuitization/
Accumulation (1)
 
 
 
 
 
 
 
 
Variable Annuity Contracts
(in thousands)
Return of net deposits
 
 
 
 
 
 
 
Account value
$
34,305,352

 
N/A

 
$
38,410,155

 
N/A

Net amount at risk
$
341,707

 
N/A

 
$
353,902

 
N/A

Average attained age of contractholders
66 years

 
N/A

 
65 years

 
N/A

Minimum return or contract value
 
 
 
 
 
 
 
Account value
$
6,976,880

 
$
34,565,409

 
$
7,886,833

 
$
38,471,465

Net amount at risk
$
1,194,988

 
$
2,257,837

 
$
916,016

 
$
1,358,023

Average attained age of contractholders
68 years

 
66 years

 
67 years

 
64 years

Average period remaining until expected annuitization
N/A

 
0.0 years

 
N/A

 
0.1 years


(1)
Includes income and withdrawal benefits described herein.
Schedule of Account Value of Market Value Annuities
 
December 31, 2015
 
December 31, 2014
 
Unadjusted Value
 
Adjusted Value
 
Unadjusted Value
 
Adjusted Value
 
 
 
 
 
 
 
 
Variable Annuity Contracts
(in thousands)
Market value adjusted annuities
 
 
 
 
 
 
 
Account value
$
1,056,235

 
$
1,053,952

 
$
1,244,131

 
$
1,251,084
Schedule of Fair Value of Separate Accounts by Major Category of Investment
Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows:
 
December 31, 2015
 
December 31, 2014
 
 
 
 
 
(in thousands)
Equity funds
$
24,639,438

 
$
28,191,315

Bond funds
12,264,741

 
12,844,788

Money market funds
2,081,684

 
2,783,023

Total
$
38,985,863

 
$
43,819,126
Schedule of Minimum Guaranteed Benefit Liabilities
The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits and other policyholder liabilities” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative are recorded in “Realized investment gains (losses), net.” See Note 10 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The liabilities for GMAB, GMWB and GMIWB are included in “Future policy benefits and other policyholder liabilities.” The Company and its reinsurance affiliates maintain a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP.
 
GMDB
 
GMAB/GMWB/
GMIWB
 
GMIB
 
Totals
 
Variable Annuity
(in thousands)
Balance as of December 31, 2012
$
222,527

 
$
1,793,135

 
$
23,516

 
$
2,039,178

Incurred guarantee benefits (1)
(3,191
)
 
(1,014,909
)
 
(11,650
)
 
(1,029,750
)
Paid guarantee benefits
(27,507
)
 
0

 
(747
)
 
(28,254
)
Changes in unrealized investment gains and losses
8,041

 
0

 
160

 
8,201

December 31, 2013
199,870

 
778,226

 
11,279

 
989,375

Incurred guarantee benefits (1)
81,524

 
2,334,185

 
8,506

 
2,424,215

Paid guarantee benefits
(25,909
)
 
0

 
(724
)
 
(26,633
)
Changes in unrealized investment gains and losses
128

 
0

 
43

 
171

December 31, 2014
255,613

 
3,112,411

 
19,104

 
3,387,128

Incurred guarantee benefits (1)
43,167

 
21,666

 
(4,616
)
 
60,217

Paid guarantee benefits
(29,240
)
 
0

 
(511
)
 
(29,751
)
Changes in unrealized investment gains and losses
(3,663
)
 
0

 
(113
)
 
(3,776
)
December 31, 2015
$
265,877

 
$
3,134,077

 
$
13,864

 
$
3,413,818

(1)
Incurred guarantee benefits include the portion of assessments established as additions to reserve as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features accounted for as derivatives.
Deferred Sales Inducements
Changes in DSI, reported as “Interest credited to policyholders’ account balances”, are as follows:
 
 
 
 
Sales Inducements
 
(in thousands)    
Balance as of December 31, 2012
$
556,830

Capitalization
31,370

Amortization - Impact of assumption and experience unlocking and true-ups
13,038

Amortization - All other
179,219

Change in unrealized investment gains and losses
28,790

Balance as of December 31, 2013
809,247

Capitalization
11,515

Amortization - Impact of assumption and experience unlocking and true-ups
45,417

Amortization - All other
(204,563
)
Change in unrealized investment gains and losses
3,591

Balance as of December 31, 2014
665,207

Capitalization
873

Amortization - Impact of assumption and experience unlocking and true-ups
21,125

Amortization - All other
(206,263
)
Change in unrealized investment gains and losses
11,063

Ceded DSI upon Reinsurance Treaty with Prudential Insurance (1)
(39,253
)
Balance as of December 31, 2015
$
452,752


(1)
See Note 1 for further details.