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Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Tables)
 12 Months Ended
Dec. 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:
As of December 31,
($ in millions)
2014
 
2013
 
 
 
 
Debt securities
$
276.0

 
$
322.1

Equity funds
1,303.1

 
1,538.7

Other
35.5

 
47.4

Total
$
1,614.6

 
$
1,908.2
Changes in Guaranteed Insurance Benefit Liability Balances

Changes in Variable Annuity Guaranteed Insurance Benefit
Liability Balances:
For the year ended
December 31, 2014
($ in millions)
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Balance, beginning of period
$
17.0

 
$
9.5

Incurred
2.1

 
2.0

Paid
(3.0
)
 
(0.2
)
Change due to net unrealized gains or losses included in AOCI
—

 
(0.1
)
Assumption unlocking
0.2

 
5.2

Balance, end of period
$
16.3

 
$
16.4


Changes in Variable Annuity Guaranteed Insurance Benefit
Liability Balances:
For the year ended
December 31, 2013
($ in millions)
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Balance, beginning of period
$
10.8

 
$
20.9

Incurred
2.0

 
(3.4
)
Paid
(2.7
)
 
—

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

 
(0.1
)
Assumption unlocking
6.9

 
(7.9
)
Balance, end of period
$
17.0

 
$
9.5
Changes in Guaranteed Liability Balances
Changes in Fixed Indexed Annuity Guaranteed
Liability Balances:
Fixed Indexed Annuity
GMWB and GMDB
($ in millions)
For the years ended December 31,
 
2014
 
2013
 
2012
 
 
 
 
 
 
Balance, beginning of period
$
85.4

 
$
102.1

 
$
5.6

Incurred
33.4

 
60.8

 
37.2

Paid
(0.3
)
 
(0.3
)
 
—

Change due to net unrealized gains or losses included in AOCI
35.9

 
(58.5
)
 
59.3

Assumption unlocking
(7.4
)
 
(18.7
)
 
—

Balance, end of period
$
147.0

 
$
85.4

 
$
102.1


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
Secondary Guarantees
($ in millions)
For the years ended December 31,
 
2014
 
2013
 
2012
 
 
 
 
 
 
Balance, beginning of period
$
145.8

 
$
118.0

 
$
98.5

Incurred
35.0

 
33.6

 
21.1

Paid
(14.8
)
 
(14.3
)
 
(9.5
)
Change due to net unrealized gains or losses included in AOCI
2.1

 
(2.1
)
 
2.1

Assumption unlocking
(1.8
)
 
10.6

 
5.8

Balance, end of period
$
166.3

 
$
145.8

 
$
118.0


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 generally consistent with those used for amortizing DAC. The most significant driver of the positive 2014 unlock results in these reserves was the extension of mortality improvement for an additional year, which reduced overall expected mortality expense.

Changes in Universal Life Additional
Liability Balances:
Universal Life
Profits Followed by Losses
($ in millions)
For the years ended December 31,
 
2014
 
2013
 
2012
 
 
 
 
 
 
Balance, beginning of period
$
270.3

 
$
302.6

 
$
212.0

Incurred
93.2

 
53.2

 
35.1

Change due to net unrealized gains or losses included in AOCI
7.6

 
0.7

 
15.9

Assumption unlocking
(4.5
)
 
(86.2
)
 
39.6

Balance, end of period
$
366.6

 
$
270.3

 
$
302.6

Changes in Variable Annuity Guaranteed Insurance Benefit
Liability Balances:
For the year ended
December 31, 2012
($ in millions)
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Balance, beginning of period
$
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
)
Balance, end of period
$
10.8

 
$
20.9
Variable Annuity GMDB Benefits
Following are the major types of death benefits currently in force:

GMDB and GMIB Benefits by Type:
December 31, 2014
($ in millions)
Account
Value
 
NAR
before
Reinsurance
 
NAR
after
Reinsurance
 
Average
Attained Age
of Annuitant
 
 
 
 
 
 
 
 
GMDB return of premium
$
626.6

 
$
1.4

 
$
1.4

 
63
GMDB step up
1,200.7

 
65.7

 
10.6

 
64
GMDB earnings enhancement benefit (“EEB”)
29.1

 
—

 
—

 
65
GMDB greater of annual step up and roll up
22.7

 
4.8

 
4.8

 
69
Total GMDB at December 31, 2014
1,879.1

 
$
71.9

 
$
16.8

 
 
Less: General account value with GMDB
270.7

 
 
 
 
 
 
Subtotal separate account liabilities with GMDB
1,608.4

 
 
 
 
 
 
Separate account liabilities without GMDB
149.1

 
 
 
 
 
 
Total separate account liabilities
$
1,757.5

 
 
 
 
 
 
GMIB [1] at December 31, 2014
$
308.4

 
 
 
 
 
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.
Non-Insurance Guaranteed Product Features
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features:
As of December 31, 2014
($ in millions)
Account
Value
 
Average
Attained Age
of Annuitant
 
 
 
 
GMWB
$
471.3

 
65
GMAB
305.8

 
59
COMBO
6.9

 
64
Balance, end of period
$
784.0

 
 
 
 
 
 
Variable Annuity Embedded Derivatives Non-Insurance Guaranteed Product Features:
As of 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
Variable Annuity Embedded Derivative Liabilities:
December 31,
($ in millions)
2014
 
2013
 
 
 
 
GMWB
$
6.9

 
$
(5.1
)
GMAB
(0.3
)
 
1.4

COMBO
(0.2
)
 
(0.4
)
Total variable annuity embedded derivative liabilities
$
6.4

 
$
(4.1
)