Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

DEFERRED POLICY ACQUISITION COSTS

The balances of and changes in DAC as of and for the years ended December 31, were as follows:

	2016			2015			2014
	(in thousands)
Balance, beginning of year	$	749,302		$	1,114,431		$	1,345,504
Capitalization of commissions, sales and issue expenses	269,679			1,535			2,804
Amortization-Impact of assumption and experience unlocking and true-ups	226,204			33,113			91,895
Amortization-All other	(46,388		)	(342,265		)	(330,311		)
Changes in unrealized investment gains and losses	18,772			16,352			4,539
Ceded DAC upon reinsurance agreement with Prudential Insurance(1)(2)	(7,480		)	(73,864		)	0
Assumed DAC upon reinsurance agreement with Pruco Life(1)	3,134,272			0			0
Balance, end of year	$	4,344,361		$	749,302		$	1,114,431

(1) See Note 1 and Note 13 for additional information.

(2) Represents a $7.5 million true-up in 2016 to the ceded DAC upon reinsurance agreement with Prudential Insurance in 2015.