Reinsurance

6 Months Ended

Jun. 30, 2011

Reinsurance

Reinsurance

7. Reinsurance

The effects of reinsurance on premiums and contract charges are as follows:

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Direct	$	542	$	566	$	1,115	$	1,117
Assumed
Affiliate		28		26		56		53
Non-affiliate		5		6		10		11
Ceded--non-affiliate		(179)		(196)		(367)		(380)
Premiums and contract charges, net of reinsurance	$	396	$	402	$	814	$	801

The effects of reinsurance on contract benefits are as follows:

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Direct	$	379	$	590	$	815	$	1,058
Assumed
Affiliate		18		18		38		35
Non-affiliate		4		8		8		12
Ceded--non-affiliate		(51)		(210)		(129)		(335)
Contract benefits, net of reinsurance	$	350	$	406	$	732	$	770

The effects of reinsurance on interest credited to contractholder funds are as follows:

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2011		2010		2011		2010
Direct	$	408	$	441	$	818	$	895
Assumed
Affiliate		2		3		5		5
Non-affiliate		3		4		6		7
Ceded--non-affiliate		(6)		(9)		(14)		(16)
Interest credited to contractholder funds, net of reinsurance	$	407	$	439	$	815	$	891