Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

	June 30, 2014							December 31, 2013
			Notional	Gross Fair Value					Notional	Gross Fair Value
			Amount	Assets		Liabilities			Amount	Assets		Liabilities
		(in thousands)
Derivatives Designated as Hedge Accounting Instruments:
Currency/Interest Rate		$	82,247	$	739	$	(4,852)	$	72,747	$	940	$	(4,635)
Total Qualifying Hedges		$	82,247	$	739	$	(4,852)	$	72,747	$	940	$	(4,635)

Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate
Interest Rate Swaps		$	1,792,750	$	77,502	$	(49,373)	$	1,533,750	$	59,872	$	(80,601)
Interest Rate Options			100,000		8,780		-		100,000		6,534		-
Currency/Interest Rate
Foreign Currency Swaps			57,015		29		(1,723)		55,919		19		(1,349)
Credit
Credit Default Swaps			1,200		-		(71)		6,050		-		(115)
Equity
Total Return Swaps			210,652		232		(1,004)		219,896		-		(4,712)
Equity Options			11,567,467		446		(108)		13,170,805		6,170		(3,168)
Total Non-Qualifying Hedges		$	13,729,084	$	86,989	$	(52,279)	$	15,086,420	$	72,595	$	(89,945)

Total Derivatives (1)		$	13,811,331	$	87,728	$	(57,131)	$	15,158,667	$	73,535	$	(94,580)

(1) Excludes embedded derivatives which contain multiple underlyings. The fair value of these embedded derivatives was a liability of $1,663 million and $778 million as of June 30, 2014 and December 31, 2013, respectively, included in “Future policy benefits.” The fair value of the embedded derivatives related to the reinsurance of certain of these benefits to Pruco Re and Prudential Insurance included in "Reinsurance recoverables" was an asset of $1,595 million and $748 million as of June 30, 2014 and December 31, 2013, respectively.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

		Three Months Ended June 30, 2014
			Realized Investment Gains/(Losses)		Net Investment Income		Other Income		Accumulated Other Comprehensive Income (Loss) (1)
		(in thousands)
Derivatives Designated as Hedging Instruments:
Cash flow hedges
	Currency/Interest Rate	$	-	$	(5)	$	(15)	$	(1,060)
	Total cash flow hedges		-		(5)		(15)		(1,060)

Derivatives Not Qualifying as Hedging Instruments:
	Interest Rate		26,012		-		-		-
	Currency		-		-		-		-
	Currency/Interest Rate		(1,038)		-		(9)		-
	Credit		(4)		-		-		-
	Equity		(11,334)		-		-		-
	Embedded Derivatives		(17,902)		-		-		-
	Total non-qualifying hedges		(4,266)		-		(9)		-
Total		$	(4,266)	$	(5)	$	(24)	$	(1,060)

		Six Months Ended June 30, 2014
			Realized Investment Gains/(Losses)		Net Investment Income		Other Income		Accumulated Other Comprehensive Income (Loss) (1)
		(in thousands)
Derivatives Designated as Hedging Instruments:
Cash flow hedges
	Currency/Interest Rate	$	-		(17)		(17)		(423)
	Total cash flow hedges		-		(17)		(17)		(423)

Derivatives Not Qualifying as Hedging Instruments:
	Interest Rate		63,598		-		-		-
	Currency		-		-		-		-
	Currency/Interest Rate		(214)		-		8		-
	Credit		(11)		-		-		-
	Equity		(15,982)		-		-		-
	Embedded Derivatives		(52,635)		-		-		-
	Total non-qualifying hedges		(5,244)		-		8		-
Total		$	(5,244)		(17)		(9)		(423)

		Three Months Ended June 30, 2013
			Realized Investment Gains/(Losses)		Net Investment Income		Other Income		Accumulated Other Comprehensive Income (Loss) (1)
		(in thousands)
Derivatives Designated as Hedging Instruments:
Cash flow hedges
	Currency/Interest Rate	$	-		(16)		27		598
	Total cash flow hedges		-		(16)		27		598

Derivatives Not Qualifying as Hedging Instruments:
	Interest Rate		(56,393)		-		-		-
	Currency		-		-		-		-
	Currency/Interest Rate		474		-		46		-
	Credit		(22)		-		-		-
	Equity		(10,976)		-		-		-
	Embedded Derivatives		18,078		-		-		-
	Total non-qualifying hedges		(48,839)		-		46		-
Total		$	(48,839)		(16)		73		598


		Six Months Ended June 30, 2013
			Realized Investment Gains/(Losses)		Net Investment Income		Other Income		Accumulated Other Comprehensive Income (Loss) (1)
		(in thousands)
Derivatives Designated as Hedging Instruments:
Cash flow hedges
	Currency/Interest Rate	$	-		(50)		32		2,343
	Total cash flow hedges		-		(50)		32		2,343

Derivatives Not Qualifying as Hedging Instruments:
	Interest Rate		(82,230)		-		-		-
	Currency		-		-		-		-
	Currency/Interest Rate		1,784		-		41		-
	Credit		(59)		-		-		-
	Equity		(41,427)		-		-		-
	Embedded Derivatives		32,267		-		-		-
	Total non-qualifying hedges		(89,665)		-		41		-
Total		$	(89,665)		(50)		73		2,343

(1) Amounts deferred in “Accumulated other comprehensive income (loss).”

Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes

Offsetting of Financial Assets and Liabilities

	June 30, 2014
			Gross		Net
	Gross		Amounts		Amounts
	Amounts of		Offset in the		Presented in
	Recognized		Statement of		the Statement		Financial
	Financial		Financial		of Financial		Instruments/		Net
	Instruments		Position		Position		Collateral		Amount

	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	87,728	$	(67,715)	$	20,013	$	(18,099)	$	1,914

Offsetting of Financial Liabilities:
Derivatives	$	57,131	$	(57,131)	$	-	$	-	$	-


	December 31, 2013
			Gross		Net
	Gross		Amounts		Amounts
	Amounts of		Offset in the		Presented in
	Recognized		Statement of		the Statement		Financial
	Financial		Financial		of Financial		Instruments/		Net
	Instruments		Position		Position		Collateral		Amount

	(in thousands)
Offsetting of Financial Assets:
Derivatives	$	73,535	$	(73,535)	$	-	$	-	$	-

Offsetting of Financial Liabilities:
Derivatives	$	94,580	$	(72,822)	$	21,758	$	(24,491)	$	(2,733)

(in thousands)

Balance, December 31, 2013

Net deferred gains (losses) on cash flow hedges from January 1 to June 30, 2014

Amount reclassified into current period earnings

Balance, June 30, 2014