District of Columbia. We further provide IMOs with our product development expertise, administrative capabilities and technology platform.
We operate our core business through three subsidiaries under one reportable segment. American Life is a Nebraska-domiciled life insurance company that is currently licensed to sell, underwrite, and market life insurance and annuity products in 22 states and the District of Columbia. In late 2018, American Life obtained a financial strength rating of B++ (“Good”) from A.M. Best Company (“A.M. Best”), a leading rating agency for insurance companies, that was affirmed in December 2020 and February 2022. A.M. Best also upgraded American Life’s long-term issuer credit rating to bbb+ from bbb in December 2020 which was affirmed in February 2022. All of our annuities are written by American Life.
Our other insurance subsidiary, Seneca Re, is a Vermont-domiciled sponsored captive reinsurance company established in early 2020 to reinsure various types of risks on behalf of American Life and third-party capital providers through special purpose reinsurance entities known as “protected cells.” Through Seneca Re, we assist capital market investors in establishing and licensing new protected cells. We also own 1505 Capital, which is an SEC registered investment adviser that provides financial, investment advisory, and management services. At June 30, 2022, 1505 Capital had approximately $471.1 million total third-party assets under management.
We seek to deliver long-term value by growing our annuity volumes and generating profitable fee-based revenue. We generate fees and other revenue based on the gross deposits received on the annuity policies we issue, reinsure, and administer.
We seek to create value for our distribution and reinsurance partners by facilitating product innovation, rapid speed to market for new products, competitively priced products, streamlined customer and agent experience, and efficient technology-enabled operations. We generate fee income from reinsurers in the form of ceding commissions, policy administration fees, and asset management fees. We typically receive upfront ceding commissions and expense reimbursements at the time the policies are reinsured and policy administration fees over the policy lifetimes. We also earn asset management fees on the assets we hold that support the obligations of a majority of our reinsurers. In investing on behalf of our insurance and reinsurance company subsidiaries, we seek to maximize yield by constructing portfolios that include a diversified portfolio of bonds, mortgages, private credit and structured securities (including collateralized loan obligations), while minimizing the difference in duration between our investment assets and liabilities.
By reinsuring a significant portion of the annuity policies we issue, the level of capital needed for American Life is significantly less than retaining all of the business on its books. We believe this “capital light” approach has the potential to produce enhanced returns for our business compared to a traditional insurance company capital structure. This strategy helps alleviate our insurance regulatory capital requirements because policies that are reinsured require substantially less capital and surplus than policies retained by us.
As of June 30, 2022, approximately 61% of the deposits received in 2022 for our annuity products were ceded to reinsurance vehicles capitalized by third party reinsurers or held in protected cells within Seneca Re for future reinsurance transactions.
We receive ceding commissions and expense reimbursement from reinsurers at the time we cede our primary insurance liabilities to them, providing meaningful cash flow. During the three months ended June 30, 2022 and 2021, we generated $2.5 million and $4.3 million, respectively, in upfront ceding commissions. For the six months ended June 30, 2022 and 2021, we generated $4.4 million and $6.6 million, respectively, in upfront ceding commissions. On our balance sheet is an item “deferred gains on reinsurance” equaling $32.2 million and $28.6 million as of June 30, 2022, and December 31, 2021, respectively which will be earned as revenue over the relevant reinsured annuity contract periods. Amortization of the deferred gain on reinsurance was $1.0 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and was recognized as revenue under GAAP. Amortization of the deferred gain on reinsurance was $2.0 million and $1.1 million for the six months ended June 30, 2022 and 2021, respectively, and was recognized as revenue under GAAP.
For the three months ended June 30, 2022 and 2021, we generated negative $0.1 million and positive $8.9 million of revenue from investment income, realized gains on investments, ceding commissions earned, policy administration, and asset management fees. For the six months ended June 30, 2022 and 2021, we generated $2.5 million and $8.3 million of revenue from investment income, realized gains on investments, ceding commissions earned, policy administration, and asset management fees.