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Business and Basis of Presentation Business and Basis of Presentation (Tables)
 12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Cash Flow Statement [Table Text Block]
Accordingly, prior period amounts to be presented in subsequent quarterly 10-Q filings will be revised, as presented below:
 
(UNAUDITED)
 
Three Months Ended March 31, 2016
 
As Previously Reported
 
Revision
 
As Revised
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Reinsurance recoverables
$
(69,025
)
 
$
5,261

 
$
(63,764
)
Cash flows from (used in) operating activities
35,727

 
5,261

 
40,988

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Ceded policyholders’ account deposits
0

 
(16,249
)
 
(16,249
)
Ceded policyholders’ account withdrawals
0

 
10,988

 
10,988

Cash flows from (used in) financing activities
(5,823
)
 
(5,261
)
 
(11,084
)
 
(UNAUDITED)
 
Six Months Ended June 30, 2016
 
As Previously Reported
 
Revision
 
As Revised
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Policy charges and fee income
$
248

 
$
(355
)
 
$
(107
)
Future policy benefits
122,101

 
193,147

 
315,248

Reinsurance recoverables
(15,315
)
 
279,718

 
264,403

Derivatives, net
10,192,618

 
(233,295
)
 
9,959,323

Other, net
84,739

 
(279,768
)
 
(195,029
)
Cash flows from (used in) operating activities
10,936,664

 
(40,553
)
 
10,896,111

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Policyholders’ account deposits
637,886

 
497,834

 
1,135,720

Ceded policyholders’ account deposits
0

 
(19,498
)
 
(19,498
)
Policyholders’ account withdrawals
(736,708
)
 
(454,971
)
 
(1,191,679
)
Ceded policyholders’ account withdrawals
0

 
17,188

 
17,188

Cash flows from (used in) financing activities
534,651

 
40,553

 
575,204


 
(UNAUDITED)
 
Nine Months Ended September 30, 2016
 
As Previously Reported
 
Revision
 
As Revised
 
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Policy charges and fee income
$
(803
)
 
$
920

 
$
117

Future policy benefits
(5,224
)
 
535,604

 
530,380

Net payable to/receivable from parent and affiliates
171,317

 
(226,317
)
 
(55,000
)
Reinsurance recoverables
(213,844
)
 
421,353

 
207,509

Other, net
650,903

 
(791,800
)
 
(140,897
)
Cash flows from (used in) operating activities
10,149,084

 
(60,241
)
 
10,088,843

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Contributed capital
781,125

 
79,448

 
860,573

Policyholders’ account deposits
2,203,234

 
(678,706
)
 
1,524,528

Ceded policyholders’ account deposits
0

 
(21,033
)
 
(21,033
)
Policyholders’ account withdrawals
(2,346,701
)
 
655,334

 
(1,691,367
)
Ceded policyholders’ account withdrawals
0

 
25,198

 
25,198

Cash flows from (used in) financing activities
508,274

 
60,241

 
568,515
Effects of Reinsurance
The financial statement impacts of these transactions were as follows:

Affected Financial Statement Lines Only
Interim Statement of Financial Position
 
Balance as of
March 31, 2016
Impacts of Recapture
Impacts of Reinsurance
Total
 
(in millions)
ASSETS
 
 
 
 
Total investments(1)
$
3,343

$
3,084

$
10,624

$
17,051

Cash and cash equivalents
106

11

1,024

1,141

Deferred policy acquisition costs
537

0

3,134

3,671

Reinsurance recoverables
3,776

(3,401
)
320

695

Deferred sales inducements
327

0

500

827

Income tax receivable(2)
0

115

2,441

2,556

TOTAL ASSETS
46,694

(191
)
18,043

64,546

LIABILITIES AND EQUITY
 
 
 
 
LIABILITIES
 
 
 
 
Policyholders' account balances
$
2,422

$
0

$
2,387

$
4,809

Future policy benefits
4,295

0

6,972

11,267

Short-term and long-term debt(3)
0

0

1,268

1,268

Other liabilities
114

0

630

744

TOTAL LIABILITIES
45,472

0

11,257

56,729

EQUITY
 
 
 
 
Additional paid-in capital(4)
901

0

8,422

9,323

Retained earnings
254

(191
)
(1,600
)
(1,537
)
Accumulated other comprehensive income
64

0

(36
)
28

TOTAL EQUITY
1,222

(191
)
6,786

7,817

TOTAL LIABILITIES AND EQUITY
46,694

(191
)
18,043

64,546


Significant Non-Cash Transactions
(1) The increase in total investments includes non-cash activities of $3.1 billion for assets received related to the recapture transaction with Pruco Re, $7.1 billion for assets received related to the reinsurance transaction with Pruco Life and $3.6 billion related to non-cash capital contributions from PAI.
(2) Prudential Financial contributed current tax receivables through PAI of $1.5 billion to the Company as part of the Variable Annuities Recapture.
(3) The Company incurred ceding commissions of $3.6 billion, of which $1.1 billion was in the form of reassignment of debt from Pruco Life.
(4) The increase in additional paid-in capital ("APIC") includes non-cash capital contributions from PAI of $3.6 billion in invested assets, $1.5 billion of current tax receivables and $2.5 billion funding for the ceding commission for the reinsurance transaction with Pruco Life.

Statement of Operations and Comprehensive Income (Loss)
Day 1 Impact of the Variable Annuities Recapture
Impacts of Recapture
Impacts of Reinsurance
Total Impacts
 
(in millions)
REVENUES
 
 
 
Premiums
$
0

$
832

$
832

Realized investment gains (losses), net
(305
)
(2,561
)
(2,866
)
TOTAL REVENUES
(305
)
(1,729
)
(2,034
)
BENEFITS AND EXPENSES
 
 
 
Policyholders' benefits
0

522

522

General, administrative and other expenses
0

310

310

TOTAL BENEFITS AND EXPENSES
0

832

832

INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES
(305
)
(2,561
)
(2,866
)
Income tax expense (benefit)
(114
)
(961
)
(1,075
)
NET INCOME (LOSS)
$
(191
)
$
(1,600
)
$
(1,791
)

As part of the Variable Annuities Recapture, the Company received invested assets of $3.1 billion as consideration from Pruco Re, which is equivalent to the amount of statutory reserve credit taken as of March 31, 2016, and unwound the associated reinsurance recoverable of $3.4 billion. As a result of the recapture transaction, the Company recognized a loss of $0.3 billion immediately.

For the Variable Annuities Recapture, the Company received invested assets of $7.1 billion as consideration from Pruco Life and established reserves of $9.4 billion. In addition, the Company incurred ceding commissions of $3.6 billion, of which $1.1 billion was in the form of reassignment of debt from Pruco Life. Also, the Company established deferred policy acquisition costs ("DAC") and deferred sales inducements ("DSI") balances, which were equivalent to the ceding commission incurred by the Company. For the reinsurance of the variable annuity base contracts, the Company recognized a benefit of $0.3 billion, which was deferred and will subsequently be amortized through General, administrative and other expenses. For the reinsurance of the living benefit guarantees, the Company recognized a loss of $2.6 billion immediately since the reinsurance contract is accounted for as free-standing derivative.

The Company also received a capital contribution of $8.4 billion from PAI.

As a result of the Variable Annuities Recapture, Pruco Re no longer had any material active reinsurance with affiliates. On September 30, 2016, Pruco Re was merged with and into the Company.

The following table summarizes the asset transfers related to Variable Annuities Recapture between the Company and its affiliates.

Affiliate
 
Period
 
Transaction
 
Security Type
 
Fair Value
 
Book Value
 
APIC Increase/ (Decrease)
 
Realized Investment Gain/(Loss), Net
 
 
 
 
 
 
 
 
(in millions)
Pruco Re
 
Apr - June 2016
 
Purchase
 
Derivatives
 
$
3,084

 
$
3,084

 
$
0

 
$
0

Pruco Life
 
Apr - June 2016
 
Purchase
 
Fixed Maturities, Trading Account Assets, Commercial Mortgages, Derivatives, JV/LP Investments and Short-Term Investments
 
$
6,994

 
$
6,994

 
$
0

 
$
0

PAI
 
Apr - June 2016
 
Contributed Capital
 
Fixed Maturities, Trading Account Assets and Derivatives
 
$
3,517

 
$
3,517

 
$
3,517

 
$
0