Reinsurance (Tables)

9 Months Ended

Sep. 30, 2021

Reinsurance Impact on Statements of Financial Position

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


	September 30, 2021		December 31, 2020
	(in thousands)
Reinsurance recoverables	$	384,614	$	694,040
Deferred policy acquisition costs	(53,181)		3,414,620
Deferred sales inducements	(25,952)		374,631
Value of business acquired	(2,053)		(2,124)
Other assets	55,470		61,471
Policyholders’ account balances	0		3,273,863
Future policy benefits	0		12,610,942
Reinsurance payables(1)	31,437		178,860
Other liabilities	0		262,462

(1)Includes $0 million and $2.3 million of unaffiliated activity as of September 30, 2021 and December 31, 2020, respectively.

Reinsurance Recoverables by Counterparty

The reinsurance recoverables by counterparty are broken out below:


	September 30, 2021		December 31, 2020
	(in thousands)
Prudential Insurance	$	384,614	$	494,611
Pruco Life	0		198,547
Unaffiliated	0		882
Total reinsurance recoverables	$	384,614	$	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 nine months ended September 30, were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Premiums:
Direct	$	6,520	$	6,161	$	19,238	$	20,376
Assumed	0		8,630		16,093		27,060
Ceded	(863)		(855)		(2,635)		(1,908)
Net premiums	5,657		13,936		32,696		45,528
Policy charges and fee income:
Direct	112,675		102,669		328,795		304,593
Assumed	0		395,381		819,191		1,161,236
Ceded(1)	(6,538)		(8,610)		(20,118)		(23,838)
Net policy charges and fee income	106,137		489,440		1,127,868		1,441,991
Asset management and service fees(2):
Direct	24,892		22,904		73,375		67,147
Assumed	0		78,549		165,177		227,614
Ceded	(2,207)		(2,034)		(6,296)		(5,852)
Net asset management and service fees	22,685		99,419		232,256		288,909
Realized investment gains (losses), net:
Direct	(3,242,554)		(2,520,872)		(4,855,611)		1,878,766
Assumed	8,328,213		2,332,646		12,350,171		(6,422,045)
Ceded	(4,968)		(57,748)		(121,697)		163,850
Realized investment gains (losses), net	5,080,691		(245,974)		7,372,863		(4,379,429)
Policyholders' benefits (including change in reserves):
Direct	19,028		14,018		43,533		73,651
Assumed	(256,596)		30,844		(253,812)		181,079
Ceded(3)	(4,203)		(1,038)		(5,475)		(6,145)
Net policyholders' benefits (including change in reserves)	(241,771)		43,824		(215,754)		248,585
Interest credited to policyholders’ account balances:
Direct	43,018		40,428		139,185		73,983
Assumed	399,099		43,457		476,408		89,311
Ceded	(1,662)		(2,601)		(5,969)		(2,294)
Net interest credited to policyholders’ account balances	440,455		81,284		609,624		161,000
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	1,193,211		307,043		1,707,648		890,849

(1)Includes $(0.4) million and $(1.7) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(0.4) million and $(2.4) million for the nine months ended September 30, 2021 and 2020, respectively.

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

(3)Includes $(2.9) million and $0.1 million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively, and $(3.3) million and $(0.3) million for the nine months ended September 30, 2021 and 2020, respectively.