Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)

12 Months Ended

Dec. 31, 2012

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for life-contingent contract benefits

($ in millions)	2012		2011

Immediate fixed annuities:
Structured settlement annuities	$	7,274	$	7,075
Other immediate fixed annuities		2,386		2,350
Traditional life insurance		3,110		3,004
Accident and health insurance		2,011		1,859
Other		114		118

Total reserve for life-contingent contract benefits	$	14,895	$	14,406

Key assumptions generally used in calculating the reserve for life-contingent contract benefits

Product	Mortality	Interest rate	Estimation method

Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 1.3% to 9.2%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0.1% to 11.5%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 4.0% to 11.3%	Net level premium reserve method using the Company's withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 7.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other:
Variable annuity guaranteed minimum death benefits ⁽¹⁾	Annuity 2000 mortality table with internal modifications	Interest rate assumptions range from 4.0% 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").

Contractholder funds

($ in millions)	2012		2011

Interest-sensitive life insurance	$	11,011	$	10,826
Investment contracts:
Fixed annuities		25,881		29,049
Funding agreements backing medium-term notes		1,867		1,929
Other investment contracts		560		528

Total contractholder funds	$	39,319	$	42,332

Key contract provisions relating to contractholder funds

Product	Interest rate	Withdrawal/surrender charges

Interest-sensitive life insurance	Interest rates credited range from 0% to 11.0% 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% to 9.8% for immediate annuities; (8.0)% to 13.5% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.3% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 24.3% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Funding agreements backing medium-term notes	Interest rates credited range from 3.0% to 5.4% (excluding currency-swapped medium-term notes)	Not applicable
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.

Contractholder funds activity

($ in millions)	2012			2011

Balance, beginning of year	$	42,332		$	48,195
Deposits		2,275			2,318
Interest credited		1,323			1,629
Benefits		(1,463	)		(1,461	)
Surrenders and partial withdrawals		(3,990	)		(4,935	)
Bank withdrawals		—			(1,463	)
Maturities of and interest payments on institutional products		(138	)		(867	)
Contract charges		(1,066	)		(1,028	)
Net transfers from separate accounts		11			12
Fair value hedge adjustments for institutional products		—			(34	)
Other adjustments		35			(34	)

Balance, end of year	$	39,319		$	42,332

Variable annuity contracts with guarantees

($ in millions)	December 31,

	2012		2011
In the event of death
Separate account value	$	5,947	$	6,372
Net amount at risk ⁽¹⁾	$	1,044	$	1,502
Average attained age of contractholders		67 years		66 years
At annuitization (includes income benefit guarantees)
Separate account value	$	1,416	$	1,489
Net amount at risk ⁽²⁾	$	418	$	574
Weighted average waiting period until annuitization options available		None		1 year
For cumulative periodic withdrawals
Separate account value	$	532	$	587
Net amount at risk ⁽³⁾	$	16	$	27
Accumulation at specified dates
Separate account value	$	811	$	906
Net amount at risk ⁽⁴⁾	$	50	$	78
Weighted average waiting period until guarantee date		6 years		6 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.

Liabilities for guarantees

($ in millions)	Liability for guarantees related to death benefits and interest- sensitive life products			Liability for guarantees related to income benefits			Liability for guarantees related to accumulation and withdrawal benefits		Total

Balance, December 31, 2011 ⁽¹⁾	$	289		$	191		$	164	$	644
Less reinsurance recoverables		116			175			162		453

Net balance as of December 31, 2011		173			16			2		191
Incurred guarantee benefits		25			(1	)		2		26
Paid guarantee benefits		(2	)		—			—		(2	)

Net change		23			(1	)		2		24
Net balance as of December 31, 2012		196			15			4		215
Plus reinsurance recoverables		113			220			125		458

Balance, December 31, 2012 ⁽²⁾	$	309		$	235		$	129	$	673

Balance, December 31, 2010 ⁽³⁾	$	236		$	227		$	136	$	599
Less reinsurance recoverables		93			210			135		438

Net balance as of December 31, 2010		143			17			1		161
Incurred guarantee benefits		30			(1	)		1		30
Paid guarantee benefits		—			—			—		—

Net change		30			(1	)		1		30
Net balance as of December 31, 2011		173			16			2		191
Plus reinsurance recoverables		116			175			162		453

Balance, December 31, 2011 ⁽¹⁾	$	289		$	191		$	164	$	644

(1): Included in the total liability balance as of December 31, 2011 are reserves for variable annuity death benefits of $116 million, variable annuity income benefits of $175 million, variable annuity accumulation benefits of $105 million, variable annuity withdrawal benefits of $57 million and other guarantees of $191 million.
(2): Included in the total liability balance as of December 31, 2012 are reserves for variable annuity death benefits of $112 million, variable annuity income benefits of $221 million, variable annuity accumulation benefits of $86 million, variable annuity withdrawal benefits of $39 million and other guarantees of $215 million.
(3): Included in the total liability balance as of December 31, 2010 are reserves for variable annuity death benefits of $85 million, variable annuity income benefits of $211 million, variable annuity accumulation benefits of $88 million, variable annuity withdrawal benefits of $47 million and other guarantees of $168 million.

- Definition

The entire disclosure for the present values of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums using assumptions such as estimates of expected investment yields, mortality, morbidity, terminations and expenses, applicable at the time the insurance contracts are made and unpaid claim costs relating to insurance contracts including estimates of costs relating to incurred but not reported claims based on the estimated ultimate cost of settling the claims (including effects of inflation and other societal and economic factors), using past experience adjusted for current trends and any other factors that would modify past experience by element such as business segment, country and interest rate range.

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- Definition

Tabular disclosure of minimum guaranteed benefits to policyholders and contract holders, such as guaranteed minimum death benefit, guaranteed minimum income benefit, and guaranteed annuitization benefits, discloses the amount of liability reported for additional insurance benefits, annuitization benefits and other minimum guarantees, by type of benefit, for the most recent balance sheet date and the incurred and paid amounts for periods presented for traditional and nontraditional products.

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- Definition

Tabular disclosure of the guaranteed benefits in excess of the current account balance, quantifies such excesses (the net amounts at risk) and includes other relevant, pertinent information as of the most recent balance sheet date by product type.

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