Reinsurance (Tables)

3 Months Ended

Mar. 31, 2021

Reinsurance Impact on Statements of Financial Position

Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of March 31, 2021 and December 31, 2020 were as follows:


	March 31, 2021		December 31, 2020
	(in thousands)
Reinsurance recoverables	$	543,849	$	694,040
Deferred policy acquisition costs	3,282,938		3,414,620
Deferred sales inducements	354,475		374,631
Value of business acquired	(2,101)		(2,124)
Other assets	59,572		61,471
Policyholders’ account balances	3,238,339		3,273,863
Future policy benefits	7,457,026		12,610,942
Reinsurance payables(1)	160,279		178,860
Other liabilities	243,013		262,462

(1)Includes $0.4 million and $2.3 million of unaffiliated activity as of March 31, 2021 and December 31, 2020, respectively.

Reinsurance Recoverables by Counterparty

The reinsurance recoverables by counterparty are broken out below:


	March 31, 2021		December 31, 2020
	(in thousands)
Prudential Insurance	$	356,434	$	494,611
Pruco Life	187,113		198,547
Unaffiliated	302		882
Total reinsurance recoverables	$	543,849	$	694,040

Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss)

Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:


	Three Months Ended March 31,
	2021		2020
	(in thousands)
Premiums:
Direct	$	6,137	$	6,498
Assumed	10,076		10,427
Ceded	(451)		(346)
Net premiums	15,762		16,579
Policy charges and fee income:
Direct	107,332		106,254
Assumed	407,138		398,661
Ceded(1)	(6,887)		(8,046)
Net policy charges and fee income	507,583		496,869
Asset management and service fees(2):
Direct	23,916		23,048
Assumed	81,622		76,781
Ceded	(2,017)		(1,979)
Net asset management and service fees	103,521		97,850
Realized investment gains (losses), net:
Direct	(2,106,085)		9,042,990
Assumed	5,377,897		(10,060,454)
Ceded	(142,676)		259,773
Realized investment gains (losses), net	3,129,136		(757,691)
Policyholders' benefits (including change in reserves):
Direct	17,289		59,166
Assumed	12,390		188,524
Ceded(3)	(51)		(5,161)
Net policyholders' benefits (including change in reserves)	29,628		242,529
Interest credited to policyholders’ account balances:
Direct	81,621		45,839
Assumed	70,946		68,415
Ceded	(4,657)		(1,284)
Net interest credited to policyholders’ account balances	147,910		112,970
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	339,711		545,464

(1)Includes $(0.3) million of unaffiliated activity for both the three months ended March 31, 2021 and 2020.

(2)Prior period amounts updated to conform to current period presentation.

(3)Includes $(0.1) million and $0.1 million of unaffiliated activity for the three months ended March 31, 2021 and 2020, respectively.