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 June 30, 2011 (in 000's, except for age data):

Benefit Type	Account Balance		Net Amount at Risk 1		Average Attained Age
Minimum death	$	21,247,973	$	1,558,058	66.5
Minimum income	$	165,929	$	49,276	62.4
Minimum accumulation and withdrawal	$	13,641,410	$	133,017	63.9

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 GMDBs and guaranteed minimum income benefits (“GMIB”) for the six-month period ended June 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		(319)		(1,748)		(2,067)
Incurred guaranteed benefits		10,056		588		10,644
Paid guaranteed benefits		(18,688)		(604)		(19,292)
Interest		4,182		454		4,636

Balance at June 30, 2011	$	118,836	$	13,320	$	132,156

The following roll-forward summarizes the change in reserves for the Company's GMDBs and GMIBs for the Company's guaranteed minimum death and income benefits for the six-month period ended June 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		15,471		2,651		18,122
Incurred guaranteed benefits		4,536		755		5,291
Paid guaranteed benefits		(16,678)		(1,997)		(18,675)
Interest		13,687		336		14,023

Balance at June 30, 2010	$	113,283	$	11,803	$	125,086

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 an asset (a liability) in the amount of $10.2 million and $(2.3) million at June 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.