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Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)
 12 Months Ended
Dec. 31, 2013
Reserve for Life-Contingent Contract Benefits and Contractholder Funds  
Reserve for life-contingent contract benefits
($ in millions)
   2013   2012  

Immediate fixed annuities:

              

Structured settlement annuities

   $ 6,645   $ 7,274  

Other immediate fixed annuities

     2,283     2,386  

Traditional life insurance

     2,542     3,110  

Accident and health insurance

     816     2,011  

Other

     100     114  
           
​ ​ ​ ​ ​ ​ ​ ​

Total reserve for life-contingent contract benefits

   $ 12,386   $ 14,895  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
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 0% to 9.0%   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% 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 2.5% 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)
   2013   2012  

Interest-sensitive life insurance

   $ 7,777   $ 11,011  

Investment contracts:

              

Fixed annuities

     16,199     25,881  

Funding agreements backing medium-term notes

     89     1,867  

Other investment contracts

     239     560  
           
​ ​ ​ ​ ​ ​ ​ ​

Total contractholder funds

   $ 24,304   $ 39,319  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Key contract provisions relating to contractholder funds
Product   Interest rate   Withdrawal/surrender charges

Interest-sensitive life insurance

   Interest rates credited range from 0% to 10.0% 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 6.0% for all other products

  

Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 25.8% of fixed annuities are subject to market value adjustment for discretionary withdrawals

Funding agreements backing medium-term notes

  

Interest rates credited range from 1.8% to 5.4%

  

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)
   2013   2012   2011  

Balance, beginning of year

   $ 39,319   $ 42,332   $ 48,195  

Deposits

     2,440     2,275     2,318  

Interest credited

     1,295     1,323     1,629  

Benefits

     (1,535 )   (1,463 )   (1,461 )

Surrenders and partial withdrawals

     (3,299 )   (3,990 )   (4,935 )

Bank withdrawals

     —     —     (1,463 )

Maturities of and interest payments on institutional products

     (1,799 )   (138 )   (867 )

Contract charges

     (1,112 )   (1,066 )   (1,028 )

Net transfers from separate accounts

     12     11     12  

Fair value hedge adjustments for institutional products

     —     —     (34 )

Other adjustments

     (72 )   35     (34 )

Classified as held for sale

     (10,945 )   —     —  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balance, end of year

   $ 24,304   $ 39,319   $ 42,332  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
Variable annuity contracts with guarantees
($ in millions)
   December 31,  
 
   2013   2012  

In the event of death

              

Separate account value

   $ 5,951   $ 5,947  

Net amount at risk (1)

   $ 636   $ 1,044  

Average attained age of contractholders

     68 years     67 years  

At annuitization (includes income benefit guarantees)

    
 		    
 		  

Separate account value

   $ 1,463   $ 1,416  

Net amount at risk (2)

   $ 252   $ 418  

Weighted average waiting period until annuitization options available

     None     None  

For cumulative periodic withdrawals

    
 		    
 		  

Separate account value

   $ 488   $ 532  

Net amount at risk (3)

   $ 9   $ 16  

Accumulation at specified dates

    
 		    
 		  

Separate account value

   $ 732   $ 811  

Net amount at risk (4)

   $ 27   $ 50  

Weighted average waiting period until guarantee date

     5 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, 2012 (1)

   $ 309   $ 235   $ 129   $ 673  

Less reinsurance recoverables

     113     220     125     458  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net balance as of December 31, 2012

     196     15     4     215  

Incurred guarantee benefits

     83     (1 )   5     87  

Paid guarantee benefits

     (2 )   —     —     (2 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net change

     81     (1 )   5     85  

Net balance as of December 31, 2013

     277     14     9     300  

Plus reinsurance recoverables

     100     99     56     255  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balance, December 31, 2013 (2)

   $ 377   $ 113   $ 65   $ 555  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Balance, December 31, 2011 (3)

  
$
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 (1)

   $ 309   $ 235   $ 129   $ 673  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
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.
(2)
Included in the total liability balance as of December 31, 2013 are reserves for variable annuity death benefits of $98 million, variable annuity income benefits of $99 million, variable annuity accumulation benefits of $43 million, variable annuity withdrawal benefits of $13 million and other guarantees of $302 million.
(3)
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.