INSURANCE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes the direct GMDB and GMIB with no NLG features liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities:



	GMDB			GMIB			Total
	(in millions)
Balance at January 1, 2015	$	1,725		$	4,702		$	6,427
Paid guarantee benefits	(313		)	(89		)	(402		)
Other changes in reserve	1,579			(727		)	852
Balance at December 31, 2015	2,991			3,886			6,877
Paid guarantee benefits	(357		)	(281		)	(638		)
Other changes in reserve	531			265			796
Balance at December 31, 2016	3,165			3,870			7,035
Paid guarantee benefits	(354		)	(151		)	(505		)
Other changes in reserve	1,269			1,083			2,352
Balance at December 31, 2017	$	4,080		$	4,802		$	8,882

Guaranteed Minimum Death Benefit Reinsurance Ceded

The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in amounts due from reinsurers:



	GMDB
	(in millions)
Balance at January 1, 2015	$	833
Paid guarantee benefits	(148		)
Other changes in reserve	745
Balance at December 31, 2015	1,430
Paid guarantee benefits	(174		)
Other changes in reserve	302
Balance at December 31, 2016	1,558
Paid guarantee benefits	(171		)
Other changes in reserve	643
Balance at December 31, 2017	$	2,030

Schedule of Liability for GMxB Derivative and other Features

The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at December 31, 2017 and 2016:



	December 31,
	2017			2016
	(In millions)

GMIBNLG ⁽¹⁾	$	4,056		$	5,155
SCS, MSO, IUL features⁽²⁾	1,698			887
GWBL/GMWB⁽¹⁾	130			114
GIB⁽¹⁾	(27		)	30
GMAB⁽¹⁾	5			20
Total Embedded and Freestanding derivative liability	$	5,862		$	6,206

GMIB reinsurance contract asset ⁽³⁾	$	10,488		$	10,314


(1)	Reported in future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets.


(2)	Reported in policyholders' account balances in the consolidated balance sheets.


(3)	Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets.

Schedule of Net Amount of Risk by Product and Guarantee

The December 31, 2017 values for direct variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of utilization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive:



	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(Dollars In millions)
GMDB:
Account values invested in:
General Account	$	13,820		$	109		$	65		$	200		$	14,194
Separate Accounts	$	45,816		$	9,556		$	3,516		$	35,784		$	94,672
Net amount at risk, gross	$	169		$	57		$	1,961		$	15,340		$	17,527
Net amount at risk, net of amounts reinsured	$	169		$	39		$	1,344		$	6,294		$	7,846
Average attained age of contractholders’	51.3			66.3			72.9			68.2			55.1
Percentage of contractholders’ over age 70	9.6		%	40.2		%	63.1		%	46.5		%	18.1		%
Range of contractually specified interest rates	N.A.			N.A.			3% - 6%			3% - 6.5%			3% - 6.5%
GMIB:
Account values invested in:
General Account	N.A.			N.A.			$	23		$	293		$	316
Separate Accounts	N.A.			N.A.			$	21,195		$	41,091		$	62,286
Net amount at risk, gross	N.A.			N.A.			$	917		$	6,337		$	7,254
Net amount at risk, net of amounts reinsured	N.A.			N.A.			$	287		$	1,561		$	1,848
Weighted average years remaining until utilization	N.A.			N.A.			1.6			0.7			0.8
Range of contractually specified interest rates	N.A.			N.A.			3% - 6%			3% - 6.5%			3% - 6.5%

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Investment in Variable Insurance Trust Mutual Funds



	December 31,
	2017		2016
	(in millions)
GMDB:
Equity	$	78,069	$	69,625
Fixed income	2,234		2,483
Balanced	14,084		14,434
Other	285		348
Total	$	94,672	$	86,890
GMIB:
Equity	$	50,429	$	45,931
Fixed income	1,568		1,671
Balanced	10,165		10,097
Other	124		149
Total	$	62,286	$	57,848

No Lapse Guarantee Liabilities

The following table summarizes the NLG liabilities, reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets:



	Direct Liability			Reinsurance Ceded			Net
	(in millions)
Balance at January 1, 2015	$	979		$	(526	)	$	453
Other changes in reserves	165			16			181
Balance at December 31, 2015	1,144			(510		)	634
Other changes in reserves	53			(99		)	(46		)
Balance at December 31, 2016	1,197			(609		)	588
Paid Guaranteed Benefits	(24		)	—			(24		)
Other changes in reserves	(487		)	(55		)	(542		)
Balance at December 31, 2017	$	686		$	(664	)	$	22