Guaranteed Benefit Features

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

8. Guaranteed Benefit Features

Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows (our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive):

		As of				As of
	June 30,				December 31,
		2011				2010
Return of Net Deposits
Total account value		$	55,648			$	52,211
Net amount at risk⁽¹⁾			591				816
Average attained age of contract holders			58 years				58 years
Minimum Return
Total account value⁽²⁾		$	178			$	187
Net amount at risk⁽¹⁾			40				46
Average attained age of contract holders			71 years				70 years
Guaranteed minimum return			5	%			5	%
Anniversary Contract Value
Total account value		$	23,757			$	23,483
Net amount at risk⁽¹⁾			1,633				2,183
Average attained age of contract holders			66 years				66 years

Represents the amount of death benefit in excess of the account balance. The decrease in net amount at risk when comparing June 30, 2011, to December 31, 2010, was attributable primarily to the rise in equity markets and associated increase in the account values.
The decrease in total account value when comparing June 30, 2011, to December 31, 2010, was attributable primarily to an increase in contract surrender rates.

The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDB (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets:

			For the Six
			Months Ended
			June 30,
			2011		2010
Balance as of beginning-of-year			$	44	$	71
	Changes in reserves			16		81
	Benefits paid			(19)		(46)
		Balance as of end-of-period	$	41	$	106

Account balances of variable annuity contracts with guarantees (in millions) were invested in separate account investment options as follows:

			As of				As of
		June 30,				December 31,
			2011				2010
Asset Type
Domestic equity			$	37,280			$	35,659
International equity				14,763				14,172
Bonds				17,256				15,913
Money market				6,016				5,725
	Total		$	75,315			$	71,469

Percent of total variable annuity separate account values				98	%			98	%

Future contract benefits also includes reserves for our products with secondary guarantees for our products sold through our Insurance Solutions – Life Insurance segment. These UL and VUL products with secondary guarantees represented approximately 38% of permanent life insurance in force as of June 30, 2011, and approximately 51% of total sales for these products for the three and six months ended June 30, 2011.