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Reinsurance
 12 Months Ended
Dec. 31, 2019
Reinsurance Disclosures [Abstract]  
Reinsurance REINSURANCE
The Company uses reinsurance as part of its risk management and capital management strategies for certain of its living benefit guarantees and variable annuity base contracts. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to affiliates. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance. This reinsurance covers new and in force business and excludes business reinsured externally.
Effective December 31, 2015, the Company surrendered its New York license and reinsured the majority of its New York business, both the living benefit guarantees and base contracts, to Prudential Insurance. See Note 1 for additional information. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely.
Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through "Realized investment gains (losses), net". See Note 4 for additional information related to the accounting for embedded derivatives.
Reinsurance amounts included in the Company's Statements of Financial Position as of December 31, were as follows:
 
2019
 
2018
 
(in thousands)
Reinsurance recoverables
$
621,510

 
$
572,102

Deferred policy acquisition costs
3,725,719

 
3,703,166

Deferred sales inducements
437,594

 
476,608

Value of business acquired
(2,275
)
 
(2,431
)
Other assets
65,819

 
79,992

Policyholders’ account balances
3,253,474

 
3,098,537

Future policy benefits
8,328,777

 
5,680,939

Reinsurance payables(1)
235,318

 
232,937

Other liabilities
337,909

 
290,330


(1)
Includes $0.1 million of unaffiliated activity as of both December 31, 2019 and 2018.

The reinsurance recoverables by counterparty are broken out below:
 
December 31, 2019
 
December 31, 2018
 
(in thousands)
Prudential Insurance
$
387,355

 
$
335,349

Pruco Life
233,933

 
236,716

Unaffiliated
222

 
37

Total reinsurance recoverables
$
621,510

 
$
572,102




Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows:
 
2019
 
2018
 
2017
 
(in thousands)
Premiums:
 
 
 
 
 
Direct
$
29,022

 
$
37,895

 
$
33,908

Assumed
31,570

 
31,989

 
32,890

Ceded
(1,042
)
 
(2,619
)
 
(3,225
)
Net premiums
59,550

 
67,265

 
63,573

Policy charges and fee income:
 
 
 
 
 
Direct
477,478

 
549,500

 
622,099

Assumed
1,638,023

 
1,661,484

 
1,632,132

Ceded(1)
(34,455
)
 
(39,706
)
 
(44,652
)
Net policy charges and fee income
2,081,046

 
2,171,278

 
2,209,579

Asset administration fees and other income:
 
 
 
 
 
Direct
141,884

 
96,743

 
129,847

Assumed
306,945

 
301,549

 
293,275

Ceded
(8,346
)
 
(9,136
)
 
(9,747
)
Net asset administration fees and other income
440,483

 
389,156

 
413,375

Realized investment gains (losses), net:
 
 
 
 
 
Direct
(1,137,422
)
 
81,120

 
(1,335,253
)
Assumed
(1,584,764
)
 
823,129

 
554,686

Ceded
40,866

 
(20,176
)
 
(24,833
)
Realized investment gains (losses), net
(2,681,320
)
 
884,073

 
(805,400
)
Policyholders' benefits (including change in reserves):
 
 
 
 
 
Direct
58,308

 
81,045

 
52,477

Assumed
89,284

 
110,358

 
46,375

Ceded(2)
(3,667
)
 
(4,315
)
 
15,216

Net policyholders' benefits (including change in reserves)
143,925

 
187,088

 
114,068

Interest credited to policyholders’ account balances:
 
 
 
 
 
Direct
82,444

 
127,018

 
9,834

Assumed
84,182

 
132,324

 
24,708

Ceded
(5,417
)
 
(10,167
)
 
(4,262
)
Net interest credited to policyholders’ account balances
161,209

 
249,175

 
30,280

Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization
988,951

 
1,131,351

 
725,749


(1)
Includes $(1) million, $(1) million and $(2) million of unaffiliated activity for the years ended December 31, 2019, 2018 and 2017, respectively.
(2)
Includes $(0.1) million, $(0.3) million and $(0.1) million of unaffiliated activity for the years ended December 31, 2019, 2018 and 2017, respectively.