Insurance

6 Months Ended

Jun. 30, 2012

Insurance [Abstract]

Insurance

8. Insurance

Insurance Liabilities

Insurance liabilities were as follows:

	Future Policy Benefits				Policyholder Account Balances				Other Policy-Related Balances
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
	(In millions)
Retail	$	63,046	$	62,295	$	68,073	$	69,553	$	2,720	$	2,807
Group, Voluntary & Worksite Benefits		21,643		20,465		9,168		9,273		3,493		3,378
Corporate Benefit Funding		51,113		49,657		63,317		56,367		185		201
Latin America		7,078		6,299		6,703		6,159		1,535		1,432
Asia		31,996		31,555		61,659		59,578		5,778		5,876
EMEA		7,562		7,728		14,528		14,396		1,479		1,482
Corporate & Other		6,071		6,276		2,461		2,374		474		423
Total	$	188,509	$	184,275	$	225,909	$	217,700	$	15,664	$	15,599

Guarantees

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. The non-life-contingent portion of GMWB, GMAB and the portion of certain GMIB that does not require annuitization are accounted for as embedded derivatives in PABs. These guarantees are recorded at estimated fair value with changes in estimated fair value recorded in net derivative gains (losses), and are excluded from the net amount at risk and other disclosures below.

The Company issues annuity contracts that apply a lower rate of funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize (“two tier annuities”). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.

Based on the type of guarantee, the Company defines net amount at risk as listed below. These amounts include direct and assumed business, but exclude offsets from hedging or reinsurance, if any.

• In the Event of Death — Defined as the guaranteed minimum death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

• At Annuitization — Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that only allow annuitization of the guaranteed amount after the 10th anniversary of the contract, which not all contractholders have achieved.

• Two Tier Annuities — Defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. These contracts apply a lower rate of funds if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize.

• Universal and Variable Life Contracts — Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

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

	June 30, 2012					December 31, 2011
	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 (3)	$	173,414	$	80,272		$	163,845	$	72,016
Separate account value	$	133,114	$	75,717		$	121,841	$	66,739
Net amount at risk	$	13,667	$	3,310	(2)	$	16,641	$	2,686	(2)
Average attained age of contractholders		62 years		62 years			62 years		61 years
Two Tier Annuities
General account value		N/A	$	401			N/A	$	386
Net amount at risk		N/A	$	59			N/A	$	60
Average attained age of contractholders		N/A		61 years			N/A		60 years

	June 30, 2012				December 31, 2011
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(In millions)
Universal and Variable Life Contracts (1)
Account value (general and separate account)	$	13,588	$	3,895	$	12,946	$	3,963
Net amount at risk	$	190,287	$	24,107	$	188,642	$	24,991
Average attained age of policyholders		54 years		59 years		53 years		59 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) The Company had previously disclosed the net amount at risk based on the excess of the benefit base over the contractholder’s total contract account value on the balance sheet date. Such amounts were $11.1 billion and $12.1 billion at June 30, 2012 and December 31, 2011, respectively. The Company has provided, in the table above, the net amount as risk as defined above. The Company believes that this definition is more representative of the potential economic exposures of these guarantees as the contractholders do not have access to this difference other than through annuitization.

(3) 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.

See Note 8 of the Notes to the Consolidated Financial Statements included in the 2011 Annual Report.