Reinsurance

9 Months Ended

Sep. 30, 2012

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,
		2012		2011		2012		2011
Direct	$	520	$	540	$	1,591	$	1,655
Assumed
Affiliate		29		28		86		84
Non-affiliate		13		5		22		15
Ceded–non-affiliate		(156)		(173)		(484)		(540	)
Premiums and contract charges, net of reinsurance	$	406	$	400	$	1,215	$	1,214

The effects of reinsurance on contract benefits are as follows:

($ in millions)		Three months ended September 30,				Nine months ended September 30,
		2012		2011		2012		2011
Direct	$	525	$	557	$	1,426	$	1,372
Assumed
Affiliate		19		18		54		56
Non-affiliate		11		4		21		12
Ceded–non-affiliate		(179)		(202)		(373)		(331	)
Contract benefits, net of reinsurance	$	376	$	377	$	1,128	$	1,109

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,
		2012		2011		2012		2011
Direct	$	208	$	398	$	942	$	1,216
Assumed
Affiliate		2		2		7		7
Non-affiliate		5		3		11		9
Ceded–non-affiliate		(7)		(7)		(21)		(21	)
Interest credited to contractholder funds, net of reinsurance	$	208	$	396	$	939	$	1,211