Reinsurance

9 Months Ended

Sep. 30, 2011

Reinsurance

Reinsurance

7. Reinsurance

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

($ in millions)		Three months ended September 30,				Nine months ended September 30,
		2011		2010		2011		2010
Direct	$	540	$	554	$	1,655	$	1,671
Assumed
Affiliate		28		27		84		80
Non-affiliate		5		5		15		16
Ceded--non-affiliate		(173)		(186)		(540)		(566)
Premiums and contract charges, net of reinsurance	$	400	$	400	$	1,214	$	1,201

The effects of reinsurance on contract benefits are as follows:

($ in millions)		Three months ended September 30,				Nine months ended September 30,
		2011		2010		2011		2010
Direct	$	557	$	602	$	1,372	$	1,660
Assumed
Affiliate		18		18		56		53
Non-affiliate		4		6		12		18
Ceded--non-affiliate		(202)		(261)		(331)		(596)
Contract benefits, net of reinsurance	$	377	$	365	$	1,109	$	1,135

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

($ in millions)		Three months ended September 30,				Nine months ended September 30,
		2011		2010		2011		2010
Direct	$	398	$	438	$	1,216	$	1,333
Assumed
Affiliate		2		3		7		8
Non-affiliate		3		2		9		9
Ceded--non-affiliate		(7)		(8)		(21)		(24)
Interest credited to contractholder funds, net of reinsurance	$	396	$	435	$	1,211	$	1,326