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Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)
12 Months Ended
Dec. 31, 2020
Reserve for Life-Contingent Contract Benefits and Contractholder Funds  
Schedule of reserve for life-contingent contract benefits
As of December 31, the reserve for life-contingent contract benefits consists of the following:
($ in millions)20202019
Immediate fixed annuities:  
Structured settlement annuities$7,407 $6,840 
Other immediate fixed annuities1,507 1,607 
Traditional life insurance2,650 2,552 
Accident and health insurance169 195 
Other67 78 
Total reserve for life-contingent contract benefits$11,800 $11,272 
Summary of key assumptions generally used in calculating the reserve for life-contingent contract benefits
The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits.
Product Mortality Interest rate Estimation method
Structured settlement annuities 
Actual company experience with projected calendar year improvements
 
4.7%
 Present value of contractually specified future benefits and expenses
Other immediate fixed annuities 
Actual company experience with projected calendar year improvements
 
4.7%
 Present value of expected future benefits and expenses
Traditional life insurance Actual company experience plus loading 
Interest rate assumptions range from 2.5% to 11.3%
 Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance Actual company experience plus loading 
Interest rate assumptions range from 3.0% to 7.0%
 Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other:
Variable annuity guaranteed minimum death benefits (1)
 Annuity 2012 mortality table with internal modifications 
Interest rate assumptions range from 1.4% to 5.8%
 Projected benefit ratio applied to cumulative assessments
______________________
(1)In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”)
Schedule of contractholder funds
As of December 31, contractholder funds consist of the following:
($ in millions)20202019
Interest-sensitive life insurance$7,794 $7,442 
Investment contracts:  
Fixed annuities8,163 8,811 
Other investment contracts524 458 
Total contractholder funds$16,481 $16,711 
Schedule of key contract provisions relating to contractholder funds
The following table highlights the key contract provisions relating to contractholder funds.
Product Interest rate Withdrawal/surrender charges
Interest-sensitive life insurance 
Interest rates credited range from 0.0% to 9.0% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products
 
Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities 
Interest rates credited range from 0.5% to 7.5% for immediate annuities; (8.0)% to 9.0%for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 5.0% for all other products
 
Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 11.0% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts:
Guaranteed minimum income, accumulation and withdrawal benefits on variable (1) and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities
 
Interest rates used in establishing reserves range from 1.7% to 10.3%
 Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract
______________________
(1)In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.
Schedule of contractholder funds activity
Contractholder funds activity for the years ended December 31 is as follows:
($ in millions)202020192018
Balance, beginning of year$16,711 $17,470 $18,592 
Deposits818 834 863 
Interest credited574 581 597 
Benefits(733)(769)(810)
Surrenders and partial withdrawals(649)(844)(1,095)
Contract charges(643)(637)(645)
Net transfers from separate accounts11 
Reinsurance assumed from AAC256 — — 
Other adjustments142 65 (39)
Balance, end of year$16,481 $16,711 $17,470 
Schedule of variable annuity contracts with guarantees
The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.
($ in millions)As of December 31,
 20202019
In the event of death  
Separate account value$3,174 $2,908 
Net amount at risk (1)
$308 $373 
Average attained age of contractholders72 years71 years
At annuitization (includes income benefit guarantees)  
Separate account value$925 $848 
Net amount at risk (2)
$140 $173 
Weighted average waiting period until annuitization options availableNoneNone
For cumulative periodic withdrawals  
Separate account value$178 $190 
Net amount at risk (3)
$12 $13 
Accumulation at specified dates  
Separate account value$93 $123 
Net amount at risk (4)
$11 $15 
Weighted average waiting period until guarantee date3 years4 years
____________
(1)Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.
(2)Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.
(3)Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.
(4)Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.
Schedule of liabilities for guarantees
The following table summarizes the liabilities for guarantees.
($ in millions)Liability for guarantees related to death benefits and interest-sensitive life productsLiability for guarantees related to income benefitsLiability for guarantees related to accumulation and withdrawal benefitsTotal
Balance, December 31, 2019$292 $23 $103 $418 
Less reinsurance recoverables81 20 32 133 
Net balance as of December 31, 2019211 71 285 
Incurred guarantee benefits49 — 17 66 
Paid guarantee benefits(2)— — (2)
Reinsurance assumed from AAC
— — 
Net change49 — 17 66 
Net balance as of December 31, 2020260 88 351 
Plus reinsurance recoverables69 23 33 125 
Balance, December 31, 2020$329 $26 $121 $476 
Balance, December 31, 2018$307 $38 $98 $443 
Less reinsurance recoverables111 35 39 185 
Net balance as of December 31, 2018196 59 258 
Incurred guarantee benefits18 — 12 30 
Paid guarantee benefits(3)— — (3)
Net change15 — 12 27 
Net balance as of December 31, 2019211 71 285 
Plus reinsurance recoverables81 20 32 133 
Balance, December 31, 2019$292 $23 $103 $418 
Reserves included in total liability balance for guarantees
The following table summarizes reserves included in total liability balance for guarantees by type of benefit as of December 31.
($ in millions)202020192018
Variable annuity
Death benefits$67 $78 $109 
Income benefits24 21 36 
Accumulation benefits18 18 25 
Withdrawal benefits15 14 14 
Other guarantees352 287 259 
Total$476 $418 $443