Reinsurance (Tables)

6 Months Ended

Jun. 30, 2021

Reinsurance Impact on Statements of Financial Position

Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021		December 31, 2020
	(in thousands)
Reinsurance recoverables	$	567,185	$	694,040
Deferred policy acquisition costs	3,231,384		3,414,620
Deferred sales inducements	361,178		374,631
Value of business acquired	(2,170)		(2,124)
Other assets	57,701		61,471
Policyholders’ account balances	3,199,407		3,273,863
Future policy benefits	9,047,794		12,610,942
Reinsurance payables(1)	147,807		178,860
Other liabilities	244,944		262,462

(1)Includes $1.3 million and $2.3 million of unaffiliated activity as of June 30, 2021 and December 31, 2020, respectively.

Reinsurance Recoverables by Counterparty

The reinsurance recoverables by counterparty are broken out below:


	June 30, 2021		December 31, 2020
	(in thousands)
Prudential Insurance	$	385,194	$	494,611
Pruco Life	180,793		198,547
Unaffiliated	1,198		882
Total reinsurance recoverables	$	567,185	$	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 and six months ended June 30, were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Premiums:
Direct	$	6,581	$	7,717	$	12,718	$	14,215
Assumed	6,017		8,003		16,093		18,430
Ceded	(1,321)		(707)		(1,772)		(1,053)
Net premiums	11,277		15,013		27,039		31,592
Policy charges and fee income:
Direct	108,788		95,670		216,120		201,924
Assumed	412,053		367,194		819,191		765,855
Ceded(1)	(6,693)		(7,182)		(13,580)		(15,228)
Net policy charges and fee income	514,148		455,682		1,021,731		952,551
Asset management and service fees(2):
Direct	24,568		21,195		48,484		44,242
Assumed	83,554		72,285		165,176		149,065
Ceded	(2,072)		(1,840)		(4,089)		(3,818)
Net asset management and service fees	106,050		91,640		209,571		189,489
Realized investment gains (losses), net:
Direct	493,028		(4,643,352)		(1,613,057)		4,399,638
Assumed	(1,355,940)		1,305,763		4,021,957		(8,754,691)
Ceded	25,948		(38,175)		(116,728)		221,598
Realized investment gains (losses), net	(836,964)		(3,375,764)		2,292,172		(4,133,455)
Policyholders' benefits (including change in reserves):
Direct	7,216		467		24,505		59,633
Assumed	(9,606)		(38,289)		2,784		150,235
Ceded(3)	(1,221)		54		(1,272)		(5,107)
Net policyholders' benefits (including change in reserves)	(3,611)		(37,768)		26,017		204,761
Interest credited to policyholders’ account balances:
Direct	14,546		(12,284)		96,167		33,555
Assumed	6,363		(22,561)		77,309		45,854
Ceded	350		1,591		(4,307)		307
Net interest credited to policyholders’ account balances	21,259		(33,254)		169,169		79,716
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	174,726		38,342		514,437		583,806

(1)Includes $(0.1) million and $(0.4) million of unaffiliated activity for the three months ended June 30, 2021 and 2020, respectively, and $(0.4) million and $(0.7) million for the six months ended June 30, 2021 and 2020, respectively.

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

(3)Includes $(0.3) million and $(0.5) million of unaffiliated activity for the three months ended June 30, 2021 and 2020, respectively, and $(0.4) million and $(0.4) million for the six months ended June 30, 2021 and 2020, respectively.