The Company offers various guarantees to certain policyholders, including a return of no less than (a) total deposits made on the contract, adjusted for any customer withdrawals, (b) total deposits made on the contract, adjusted for any customer withdrawals, plus a minimum return, or (c) the highest contract value on a specified anniversary date, minus any customer withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death, upon annuitization, or at specified dates during the accumulation period of an annuity.

The table below represents information regarding the Company's variable annuity contracts with guarantees at September 30, 2011 (in 000's, except for age data):

Benefit Type	Account Balance		Net Amount at Risk 1		Average Attained Age
Minimum death	$	19,297,218	$	2,617,171	66.3
Minimum income	$	131,908	$	73,141	62.7
Minimum accumulation or withdrawal	$	12,645,258	$	1,033,663	63.8

The table below represents information regarding the Company's variable annuity contracts with guarantees at December 31, 2010 (in 000's, except for age data):

Benefit Type	Account Balance		Net Amount at Risk 1		Average Attained Age
Minimum death	$	20,061,043	$	1,742,139	66.0
Minimum income	$	179,878	$	59,322	62.2
Minimum accumulation or withdrawal	$	12,233,731	$	152,571	63.2

1 Net amount at risk represents the excess of the guaranteed benefits over account balance for contracts that have an account value less than the guarantee.

The following roll-forward summarizes the change in reserves for the Company's GMDB and guaranteed minimum income benefits (“GMIB”) for the nine-month period ended September 30, 2011 (in 000's):

	Guaranteed Minimum Death Benefit		Guaranteed Minimum Income Benefit		Total
Balance at December 31, 2010	$	123,605	$	14,630	$	138,235

Benefit ratio change / Assumption changes		30,480		(1,655)		28,825
Incurred guaranteed benefits		18,557		873		19,430
Paid guaranteed benefits		(29,356)		(841)		(30,197)
Interest		6,696		682		7,378

Balance at September 30, 2011	$	149,982	$	13,689	$	163,671

The following roll-forward summarizes the change in reserves for the Company's GMDB and GMIB for the nine-month period ended September 30, 2010 (in 000's):


	Guaranteed Minimum Death Benefit		Guaranteed Minimum Income Benefit		Total
Balance at December 31, 2009	$	96,267	$	10,058	$	106,325

Benefit ratio change / Assumption changes		40,494		8,789		49,283
Incurred guaranteed benefits		22,498		1,161		23,659
Paid guaranteed benefits		(28,465)		(2,898)		(31,363)
Interest		5,766		533		6,299

Balance at September 30, 2010	$	136,560	$	17,643	$	154,203

The liability for death and income benefit guarantees is established equal to a benefit ratio, multiplied by the cumulative contract charges earned, plus accrued interest less contract benefit payments. The benefit ratio is calculated as the estimated present value of all expected contract benefits divided by the present value of all expected contract charges. The benefit ratio may be in excess of 100%. For guarantees in the event of death, benefits represent the current guaranteed minimum death payments in excess of the current account balance. For guarantees at annuitization, benefits represent the present value of the minimum guaranteed annuity benefits in excess of the current account balance.

Projected benefits and assessments used in determining the liability for contract guarantees are developed using a projection model and stochastic scenarios. Underlying assumptions for the liability related to income benefits include assumed future annuitization elections based upon factors such as eligibility conditions and the annuitant's attained age.

The liability for guarantees is re-calculated and adjusted regularly. Changes to the liability balance are recorded as a charge or credit to policyowner benefits.

GMABs and GMWBs are considered to be derivatives under FASB ASC Topic 815 and are recorded at fair value through earnings. The Company incorporates actively-managed volatility adjustments, a credit standing adjustment, and a behavior risk margin in its calculation of the embedded derivative. The net balance of GMABs and GMWBs constituted a liability in the amount of $1,229.3 million and $2.3 million at September 30, 2011 and December 31, 2010, respectively. The Company records GMAB and GMWB assets or liabilities in its condensed consolidated balance sheets as part of contractholder deposit funds and other policy liabilities.