Insurance (Tables)

12 Months Ended

Dec. 31, 2013

Insurance liabilities are comprised of future policy benefits, PABs and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at:



	December 31,
	2013		2012
	(In millions)
Retail	$	134,915	$	138,082
Group, Voluntary & Worksite Benefits	29,521		29,996
Corporate Benefit Funding	112,591		117,065
Latin America	16,162		16,055
Asia	93,066		103,064
EMEA	21,657		20,200
Corporate & Other	8,129		9,173
Total	$	416,041	$	433,635

Liabilities for Guarantees

Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows:



	Annuity Contracts						Universal and Variable Life Contracts
	GMDBs			GMIBs			Secondary Guarantees			Paid-Up Guarantees		Total
	(In millions)
Direct and Assumed
Balance at January 1, 2011	$	272		$	623		$	3,991		$	198	$	5,084
Incurred guaranteed benefits (1)	273			269			496			23		1,061
Paid guaranteed benefits	(113		)	(10		)	(24		)	—		(147		)
Balance at December 31, 2011	432			882			4,463			221		5,998
Incurred guaranteed benefits (1)	252			771			348			25		1,396
Paid guaranteed benefits	(117		)	(18		)	(26		)	—		(161		)
Balance at December 31, 2012	567			1,635			4,785			246		7,233
Incurred guaranteed benefits (1)	200			229			(64		)	20		385
Paid guaranteed benefits	(82		)	(13		)	(23		)	—		(118		)
Balance at December 31, 2013	$	685		$	1,851		$	4,698		$	266	$	7,500
Ceded
Balance at January 1, 2011	$	39		$	(1	)	$	594		$	139	$	771
Incurred guaranteed benefits	35			9			20			16		80
Paid guaranteed benefits	(20		)	—			—			—		(20		)
Balance at December 31, 2011	54			8			614			155		831
Incurred guaranteed benefits	22			1			139			18		180
Paid guaranteed benefits	(20		)	—			—			—		(20		)
Balance at December 31, 2012	56			9			753			173		991
Incurred guaranteed benefits	(5		)	—			175			14		184
Paid guaranteed benefits	(10		)	(2		)	—			—		(12		)
Balance at December 31, 2013	$	41		$	7		$	928		$	187	$	1,163
Net
Balance at January 1, 2011	$	233		$	624		$	3,397		$	59	$	4,313
Incurred guaranteed benefits	238			260			476			7		981
Paid guaranteed benefits	(93		)	(10		)	(24		)	—		(127		)
Balance at December 31, 2011	378			874			3,849			66		5,167
Incurred guaranteed benefits	230			770			209			7		1,216
Paid guaranteed benefits	(97		)	(18		)	(26		)	—		(141		)
Balance at December 31, 2012	511			1,626			4,032			73		6,242
Incurred guaranteed benefits	205			229			(239		)	6		201
Paid guaranteed benefits	(72		)	(11		)	(23		)	—		(106		)
Balance at December 31, 2013	$	644		$	1,844		$	3,770		$	79	$	6,337

______________


(1)	Secondary guarantees include the effects of foreign currency translation of ($597) million, ($39) million and $231 million at December 31, 2013, 2012 and 2011, respectively.

Fund Groupings

Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at:



	December 31,
	2013		2012
	(In millions)
Fund Groupings:
Equity	$	79,036	$	66,469
Balanced	75,928		67,230
Bond	10,632		11,188
Money Market	1,157		1,291
Total	$	166,753	$	146,178

Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at:



	December 31,
	2013				2012
	In the Event of Death		At Annuitization		In the Event of Death		At Annuitization
	(In millions)
Annuity Contracts (1)
Variable Annuity Guarantees
Total contract account value (2)	$	201,395	$	100,527	$	184,095	$	89,137
Separate account value	$	164,500	$	96,459	$	143,893	$	84,354
Net amount at risk	$	4,203	$	1,219	$	9,501	$	4,593
Average attained age of contractholders	63 years		63 years		62 years		62 years
Two Tier Annuities
General account value	N/A		$	880	N/A		$	848
Net amount at risk	N/A		$	234	N/A		$	232
Average attained age of contractholders	N/A		50 years		N/A		51 years



	December 31,
	2013				2012
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account)	$	16,048	$	3,700	$	14,256	$	3,828
Net amount at risk	$	185,920	$	21,737	$	189,197	$	23,276
Average attained age of policyholders	55 years		60 years		54 years		60 years

______________


(1)	The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.


(2)	Includes amounts, which are not reported in the consolidated balance sheets, from assumed reinsurance of certain variable annuity products from the Company’s former operating joint venture in Japan.

Schedule of Federal Home Loan Bank, common stock holdings, by branch of FHLB Bank

Certain of the Company’s subsidiaries are members of regional banks in the FHLB system (“FHLBanks”). Holdings of common stock of FHLBanks, included in equity securities, were as follows at:



	December 31,
	2013		2012
	(In millions)
FHLB of NY	$	700	$	736
FHLB of Des Moines	$	76	$	83
FHLB of Boston	$	64	$	67
FHLB of Pittsburgh	$	30	$	14

Schedule of liability recorded and collateral pledged for funding agreements

Such subsidiaries have also entered into funding agreements with FHLBanks and the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in PABs. Information related to such funding agreements was as follows at:



	Liability				Collateral
	December 31,
	2013		2012		2013			2012
	(In millions)
FHLB of NY (1)	$	12,770	$	13,512	$	14,287	(2)	$	14,611	(2)
Farmer Mac (3)	$	2,750	$	2,750	$	3,159		$	3,159
FHLB of Des Moines (1)	$	1,405	$	1,405	$	1,596	(2)	$	1,902	(2)
FHLB of Boston (1)	$	450	$	450	$	808	(2)	$	537	(2)
FHLB of Pittsburgh (1)	$	375	$	—	$	976	(2)	$	810	(2)

______________

(1)

Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, such FHLBank’s recovery on the collateral is limited to the amount of the Company’s liability to such FHLBank.


(2)	Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.

(3)

Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.

Liabilities for Unpaid Claims and Claim Expenses

Information regarding the liabilities for unpaid claims and claim expenses relating to property and casualty, group accident and non-medical health policies and contracts, which are reported in future policy benefits and other policy-related balances, was as follows:



	Years Ended December 31,
	2013			2012			2011
	(In millions)
Balance at January 1,	$	10,436		$	10,117		$	10,708
Less: Reinsurance recoverables	1,581			1,436			2,198
Net balance at January 1,	8,855			8,681			8,510
Incurred related to:
Current year	8,660			8,399			9,028
Prior years (1)	(86		)	(69		)	(199		)
Total incurred	8,574			8,330			8,829
Paid related to:
Current year	(6,083		)	(5,689		)	(6,238		)
Prior years	(2,377		)	(2,467		)	(2,420		)
Total paid	(8,460		)	(8,156		)	(8,658		)
Net balance at December 31,	8,969			8,855			8,681
Add: Reinsurance recoverables	1,661			1,581			1,436
Balance at December 31,	$	10,630		$	10,436		$	10,117

______________


(1)	During 2013, 2012 and 2011, as a result of changes in estimates of insured events in the respective prior year, claims and claim adjustment expenses associated with prior years decreased due to a reduction in prior year automobile bodily injury and homeowners’ severity and improved loss ratio for non-medical health claim liabilities.