Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

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:	September 30,		December 31,
($ in millions)	2013		2012

Debt securities	$	326.8	$	369.3
Equity funds	1,537.3		1,516.3
Other	47.8		49.7
Total	$	1,911.9	$	1,935.3

Changes in Guaranteed Insurance Benefit Liability Balances



Changes in Guaranteed Insurance Benefit Liability Balances:	As of
($ in millions)	September 30, 2013
	Annuity GMDB			Annuity GMIB

Liability balance as of January 1, 2013	$	10.8		$	20.9
Incurred	1.8			(2.2		)
Paid	(2.4		)	—
Change due to net unrealized gains or losses included in AOCI	—			(0.1		)
Assumption unlocking	—			—
Liability balance as of September 30, 2013	$	10.2		$	18.6



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

September 30, 2013
GMDB return of premium	$	732.4	$	2.3	63
GMDB step up	1,405.6		8.8		63
GMDB earnings enhancement benefit (“EEB”)	35.8		0.1		64
GMDB greater of annual step up and roll up	26.7		5.6		67
Total GMDB at September 30, 2013	2,200.5		$	16.8
Less: General account value with GMDB	299.1
Subtotal separate account liabilities with GMDB	1,901.4
Separate account liabilities without GMDB	148.1
Total separate account liabilities	$	2,049.5
GMIB [1] at September 30, 2013	$	388.5			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
	September 30,			December 31,
	2013			2012

Liability balance, beginning of period	$	103.6		$	5.6
Incurred	44.9			40.1
Paid	(0.2		)	—
Change due to net unrealized gains or losses included in AOCI	(47.7		)	57.9
Assumption unlocking	—			—
Liability balance, end of period	$	100.6		$	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
	September 30,			December 31,
	2013			2012

Liability balance, beginning of period	$	115.8		$	100.6
Incurred	31.9			22.6
Paid	(11.8		)	(9.5		)
Change due to net unrealized gains or losses included in AOCI	(1.8		)	2.1
Assumption unlocking	—			—
Liability balance, end of period	$	134.1		$	115.8

In addition, the universal life block of business has experience which produces profits in earlier periods followed by losses in later periods for which additional reserves are required to be held above the account value liability. These reserves are accrued ratably over historical and anticipated positive income to offset the future anticipated losses. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC.



Changes in Additional Liability Balances:	Universal Life
($ in millions)	Profits Followed by Losses
	September 30,			December 31,
	2013			2012

Liability balance, beginning of period	$	300.4		$	203.0
Expenses	45.3			37.1
Change due to net unrealized gains or losses included in AOCI	(17.0		)	16.9
Assumption unlocking	—			43.4
Liability balance, end of period	$	328.7		$	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

September 30, 2013
GMWB	$	553.3	64
GMAB	377.3		58
COMBO	7.2		62
Total at September 30, 2013	$	937.8

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



Variable Annuity Embedded Derivative Liabilities:	September 30,			December 31,
($ in millions)	2013			2012

GMWB	$	(0.2	)	$	14.3
GMAB	4.2			14.3
COMBO	(0.4		)	(0.3		)
Total variable annuity embedded derivative liabilities	$	3.6		$	28.3