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Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)
12 Months Ended
Dec. 31, 2021
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)20212020
Immediate fixed annuities:  
Structured settlement annuities$5,166 $7,407 
Other immediate fixed annuities1,357 1,507 
Traditional life insurance2,425 2,650 
Accident and health insurance102 169 
Other69 67 
Total reserve for life-contingent contract benefits$9,119 $11,800 
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
 
6.0%
 Present value of contractually specified future benefits and expenses
Other immediate fixed annuities 
Actual company experience with projected calendar year improvements
 
6.0%
 Present value of expected future benefits based on historical experience 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 Industry data with internal modifications 
4.5%
 Unearned premium; additional contract reserves for morbidity risk and unpaid claims
Other:
Variable annuity guaranteed minimum death benefits (1)
 Annuity 2012 mortality table with internal modifications 
Interest rate assumptions range from 2.0% 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)20212020
Interest-sensitive life insurance$6,883 $7,794 
Investment contracts:  
Fixed annuities6,000 8,163 
Other investment contracts511 524 
Total contractholder funds$13,394 $16,481 
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 8.8% 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 0.0% to 8.7% 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 5.5% for all other products
 
Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 11.3% 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)202120202019
Balance, beginning of year$16,481 $16,711 $17,470 
Deposits904 818 834 
Interest credited449 574 581 
Benefits(693)(733)(769)
Surrenders and partial withdrawals(590)(649)(844)
Contract charges(705)(643)(637)
Net transfers from separate accounts11 
Decrease related to sale of ALNY(2,368)— — 
Decrease related to AHL recapture of reinsurance(146)— — 
Reinsurance assumed from EAC— 256 — 
Other adjustments55 142 65 
Balance, end of year$13,394 $16,481 $16,711 
Schedule of variable annuity contracts with guarantees
The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.
($ in millions)As of December 31,
 20212020
In the event of death  
Separate account value$2,885 $3,174 
Net amount at risk (1)
$267 $308 
Average attained age of contractholders68 years72 years
At annuitization (includes income benefit guarantees)  
Separate account value$914 $925 
Net amount at risk (2)
$113 $140 
Weighted average waiting period until annuitization options availableNoneNone
For cumulative periodic withdrawals  
Separate account value$156 $178 
Net amount at risk (3)
$11 $12 
Accumulation at specified dates  
Separate account value$66 $93 
Net amount at risk (4)
$$11 
Weighted average waiting period until guarantee date3 years3 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, 2020$329 $26 $121 $476 
Less reinsurance recoverables69 23 33 125 
Net balance as of December 31, 2020260 88 351 
Incurred guarantee benefits36 — 19 55 
Paid guarantee benefits(5)— — (5)
Decrease related to sale of ALNY(41)— — (41)
Reinsurance ceded to ERL
(87)— — (87)
Net change(97)— 19 (78)
Net balance as of December 31, 2021163 107 273 
Plus reinsurance recoverables161 17 23 201 
Balance, December 31, 2021$324 $20 $130 $474 
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 EAC— — 
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 $476 
Reserves included in total liability balance for guarantees
The following table summarizes reserves included in total liability balance for guarantees by type of benefit as of December 31.
($ in millions)202120202019
Variable annuity
Death benefits$69 $67 $78 
Income benefits18 24 21 
Accumulation benefits12 18 18 
Withdrawal benefits11 15 14 
Other guarantees364 352 287 
Total$474 $476 $418