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Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Tables)
 3 Months Ended
Mar. 31, 2013
Insurance [Abstract]  
Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees
Separate Account Investments of Account Balances of Variable Annuity Contracts with Insurance Guarantees:
March 31,
 
December 31,
($ in millions)
2013
 
2012
 
 
 
 
Debt securities
$
356.6

 
$
369.3

Equity funds
1,571.6

 
1,516.3

Other
47.7

 
49.7

Total
$
1,975.9

 
$
1,935.3
Changes in Guaranteed Insurance Benefit Liability Balances
Changes in Guaranteed Insurance Benefit Liability Balances:
As of
($ in millions)
March 31, 2013
 
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Liability balance as of January 1, 2013
$
10.8

 
$
20.9

Incurred
0.4

 
1.2

Paid
(0.7
)
 
—

Change due to net unrealized gains or losses included in AOCI
0.1

 
(0.1
)
Assumption unlocking
—

 
—

Liability balance as of March 31, 2013
$
10.6

 
$
22.0


Changes in Guaranteed Insurance Benefit Liability Balances:
Year Ended
($ in millions)
December 31, 2012
 
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Liability balance as of January 1, 2012
$
10.8

 
$
17.0

Incurred
1.0

 
3.8

Paid
(1.0
)
 
—

Change due to net unrealized gains or losses included in AOCI
—

 
0.3

Assumption unlocking
—

 
(0.2
)
Liability balance as of December 31, 2012
$
10.8

 
$
20.9
GMDB Benefits by Type
Following are the major types of death benefits currently in force as defined in the 2012 Form 10-K:

GMDB and GMIB Benefits by Type:
 
 
 
 
 
($ in millions)
Account
Value
 
NAR
after Reinsurance
 
Average
Attained Age
of Annuitant
 
 
 
 
 
 
March 31, 2013
 
 
 
 
 
GMDB return of premium
$
761.6

 
$
3.1

 
62
GMDB step up
1,443.6

 
11.8

 
63
GMDB earnings enhancement benefit (“EEB”)
37.5

 
—

 
63
GMDB greater of annual step up and roll up
26.7

 
6.2

 
67
Total GMDB at March 31, 2013
2,269.4

 
$
21.1

 
 
Less: General account value with GMDB
306.0

 
 

 
 
Subtotal separate account liabilities with GMDB
1,963.4

 
 

 
 
Separate account liabilities without GMDB
146.1

 
 

 
 
Total separate account liabilities
$
2,109.5

 
 

 
 
GMIB [1] at March 31, 2013
$
409.7

 
 

 
64
 
 
 
 
 
 
December 31, 2012
 

 
 

 
 
GMDB return of premium
$
755.9

 
$
5.7

 
62
GMDB step up
1,412.4

 
21.7

 
62
GMDB earnings enhancement benefit (“EEB”)
37.4

 
0.1

 
63
GMDB greater of annual step up and roll up
26.7

 
7.4

 
67
Total GMDB at December 31, 2012
2,232.4

 
$
34.9

 
 
Less: General account value with GMDB
311.3

 
 

 
 
Subtotal separate account liabilities with GMDB
1,921.1

 
 

 
 
Separate account liabilities without GMDB
140.7

 
 

 
 
Total separate account liabilities
$
2,061.8

 
 

 
 
GMIB [1] at December 31, 2012
$
403.3

 
 

 
64
———————
[1]
Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released.
Changes in Guaranteed Liability Balances
Changes in Guaranteed Liability Balances:
Fixed Indexed Annuity
($ in millions)
GMWB & GMDB
 
March 31,
 
December 31,
 
2013
 
2012
 
 
 
 
Liability balance, beginning of period
$
103.6

 
$
5.6

Incurred
12.6

 
40.1

Paid
(0.1
)
 
—

Change due to net unrealized gains or losses included in AOCI
1.4

 
57.9

Assumption unlocking
—

 
—

Liability balance, end of period
$
117.5

 
$
103.6


Universal life

Liabilities for universal life contracts, in excess of the account balance, some of which contain secondary guarantees, are generally determined by estimating the expected value of benefits and expenses when claims are triggered and recognizing those benefits and expenses over the accumulation period based on total expected assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC.

Changes in Guaranteed Liability Balances:
Universal Life
($ in millions)
Secondary Guarantees
 
March 31,
 
December 31,
 
2013
 
2012
 
 
 
 
Liability balance, beginning of period
$
115.8

 
$
100.6

Incurred
15.2

 
22.6

Paid
(3.4
)
 
(9.5
)
Change due to net unrealized gains or losses included in AOCI
0.4

 
2.1

Assumption unlocking
—

 
—

Liability balance, end of period
$
128.0

 
$
115.8

Changes in Additional Liability Balances:
Universal Life
($ in millions)
Profits Followed by Losses
 
March 31,
 
December 31,
 
2013
 
2012
 
 
 
 
Liability balance, beginning of period
$
300.4

 
$
203.0

Expenses
13.8

 
37.1

Change due to net unrealized gains or losses included in AOCI
10.6

 
16.9

Assumption unlocking
—

 
43.4

Liability balance, end of period
$
324.8

 
$
300.4
Non-Insurance Guaranteed Product Features
Certain separate account variable products may contain a GMWB, GMAB and/or COMBO rider as defined in the 2012 Form 10-K. These features are accounted for as embedded derivatives as described below.

Non-Insurance Guaranteed Product Features:
 
 
 
($ in millions)
Account
Value
 
Average
Attained Age
of Annuitant
 
 
 
 
March 31, 2013
 
 
 
GMWB
$
564.5

 
63
GMAB
389.3

 
58
COMBO
8.0

 
61
Total at March 31, 2013
$
961.8

 
 
 
 
 
 
December 31, 2012
 

 
 
GMWB
$
547.4

 
63
GMAB
379.5

 
58
COMBO
8.3

 
61
Total at December 31, 2012
$
935.2

 
 
Variable Annuity Embedded Derivative Liabilities
Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below.

Variable Annuity Embedded Derivative Liabilities:
March 31,
 
December 31,
($ in millions)
2013
 
2012
 
 
 
 
GMWB
$
10.1

 
$
14.3

GMAB
8.6

 
14.3

COMBO
(0.3
)
 
(0.3
)
Total variable annuity embedded derivative liabilities
$
18.4

 
$
28.3