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Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivative (Tables)
 3 Months Ended
Mar. 31, 2014
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)
2014
 
2013
 
 
 
 
Debt securities
$
313.4

 
$
322.1

Equity funds
1,476.4

 
1,538.7

Other
45.7

 
47.4

Total
$
1,835.5

 
$
1,908.2
Changes in Guaranteed Insurance Benefit Liability Balances
Changes in Variable Annuity Guaranteed Insurance Benefit
Liability Balances:
Three Months Ended 
 March 31, 2014
 
Three Months Ended 
 March 31, 2013
($ in millions)
Annuity
GMDB
 
Annuity
GMIB
 
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
 
 
 
 
Balance, beginning of period
$
17.0

 
$
9.5

 
$
10.8

 
$
20.9

Incurred
(0.1
)
 
(0.7
)
 
0.4

 
1.2

Paid
(0.3
)
 
—

 
(0.7
)
 
—

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

 
(0.1
)
 
0.1

 
(0.1
)
Assumption unlocking
—

 
—

 
—

 
—

Balance, end of period
$
16.6

 
$
8.7

 
$
10.6

 
$
22.0
GMDB Benefits by Type
Following are the major types of death benefits currently in force as defined in the 2013 Form 10-K:

GMDB and GMIB Benefits by Type:
March 31, 2014
($ in millions)
Account
Value
 
NAR
before Reinsurance
 
NAR
after Reinsurance
 
Average
Attained Age
of Annuitant
 
 
 
 
 
 
 
 
GMDB return of premium
$
704.2

 
$
1.7

 
$
1.7

 
63
GMDB step up
1,353.0

 
65.7

 
6.9

 
64
GMDB earnings enhancement benefit (“EEB”)
35.5

 
—

 
—

 
64
GMDB greater of annual step up and roll up
26.2

 
4.8

 
4.8

 
68
Total GMDB at March 31, 2014
2,118.9

 
$
72.2

 
$
13.4

 
 
Less: General account value with GMDB
289.8

 
 
 
 
 
 
Subtotal separate account liabilities with GMDB
1,829.1

 
 
 
 
 
 
Separate account liabilities without GMDB
150.2

 
 
 
 
 
 
Total separate account liabilities
$
1,979.3

 
 
 
 
 
 
GMIB [1] at March 31, 2014
$
367.0

 
 
 
 
 
65
 
 
 
 
 
 
 
 
GMDB and GMIB Benefits by Type:
December 31, 2013
($ in millions)
Account
Value
 
NAR
before Reinsurance
 
NAR
after Reinsurance
 
Average
Attained Age
of Annuitant
 
 
 
 
 
 
 
 
GMDB return of premium
$
728.8

 
$
1.8

 
$
1.8

 
63
GMDB step up
1,401.0

 
66.7

 
7.0

 
63
GMDB earnings enhancement benefit (“EEB”)
35.9

 
0.1

 
0.1

 
64
GMDB greater of annual step up and roll up
26.7

 
4.8

 
4.8

 
68
Total GMDB at December 31, 2013
2,192.4

 
$
73.4

 
$
13.7

 
 
Less: General account value with GMDB
294.7

 
 
 
 
 
 
Subtotal separate account liabilities with GMDB
1,897.7

 
 
 
 
 
 
Separate account liabilities without GMDB
155.0

 
 
 
 
 
 
Total separate account liabilities
$
2,052.7

 
 
 
 
 
 
GMIB [1] at December 31, 2013
$
385.7

 
 
 
 
 
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 Universal Life Additional Liability Balances:
Universal Life
($ in millions)
Profits Followed by Losses
 
Three Months Ended 
 March 31,
 
2014
 
2013
 
 
 
 
Balance, beginning of period
$
273.4

 
$
300.4

Expenses
19.6

 
13.8

Change due to net unrealized gains or losses included in AOCI
15.4

 
10.6

Assumption unlocking
—

 
—

Balance, end of period
$
308.4

 
$
324.8

Changes in Fixed Indexed Annuity Guaranteed Liability Balances:
Fixed Indexed Annuity
($ in millions)
GMWB & GMDB
 
Three Months Ended 
 March 31,
 
2014
 
2013
 
 
 
 
Balance, beginning of period
$
90.0

 
$
103.6

Incurred
5.0

 
12.6

Paid
(0.1
)
 
(0.1
)
Change due to net unrealized gains or losses included in AOCI
19.8

 
1.4

Assumption unlocking
—

 
—

Balance, end of period
$
114.7

 
$
117.5


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 generally consistent with those used for amortizing DAC.

Changes in Universal Life Guaranteed Liability Balances:
Universal Life
($ in millions)
Secondary Guarantees
 
Three Months Ended 
 March 31,
 
2014
 
2013
 
 
 
 
Balance, beginning of period
$
153.2

 
$
115.8

Incurred
4.0

 
15.2

Paid
(1.9
)
 
(3.4
)
Change due to net unrealized gains or losses included in AOCI
0.8

 
0.4

Assumption unlocking
—

 
—

Balance, end of period
$
156.1

 
$
128.0
Non-Insurance Guaranteed Product Features
Certain separate account variable products may contain a GMWB, guaranteed minimum accumulation benefit (“GMAB”) and/or combination (“COMBO”) rider as defined in the 2013 Form 10-K. These features are accounted for as embedded derivatives as described below.

Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features:
March 31, 2014
($ in millions)
Account
Value
 
Average
Attained Age
of Annuitant
 
 
 
 
GMWB
$
530.9

 
64
GMAB
352.8

 
59
COMBO
7.0

 
63
Balance, end of period
$
890.7

 
 
 
 
 
 
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features:
December 31, 2013
($ in millions)
Account
Value
 
Average
Attained Age
of Annuitant
 
 

 
 
GMWB
$
551.1

 
64
GMAB
370.9

 
59
COMBO
7.0

 
63
Balance, end of period
$
929.0

 
 
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, 2014
 
December 31, 2013
($ in millions)
 
 
 
 
 
GMWB
$
(3.2
)
 
$
(5.1
)
GMAB
—

 
1.4

COMBO
(0.3
)
 
(0.4
)
Total variable annuity embedded derivative liabilities
$
(3.5
)
 
$
(4.1
)