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Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Tables)
 3 Months Ended
Mar. 31, 2015
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, 2015
 
December 31, 2014
($ in millions)
 
 
 
Debt securities
$
265.5

 
$
276.0

Equity funds
1,264.6

 
1,303.1

Other
35.1

 
35.5

Total
$
1,565.2

 
$
1,614.6
Changes in Guaranteed Insurance Benefit Liability Balances
Changes in Guaranteed Insurance Benefit
Liability Balances:
Three Months Ended 
 March 31, 2015
($ in millions)
Annuity
GMDB
 
Annuity
GMIB
 
 
 
 
Balance, beginning of period
$
16.3

 
$
16.4

Incurred
(0.4
)
 
(2.4
)
Paid
(0.3
)
 
—

Assumption unlocking
0.3

 
—

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

 
—

Balance, end of period
$
16.0

 
$
14.0


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

 
$
9.5

Incurred
(0.1
)
 
(0.2
)
Paid
(0.3
)
 
—

Assumption unlocking
—

 
—

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

 
(0.1
)
Balance, end of period
$
16.6

 
$
9.2
GMDB Benefits by Type
Following are the major types of death benefits currently in force as defined in Note 8 to our financial statements in the 2014 Form 10-K:

GMDB and GMIB Benefits by Type:
March 31, 2015
($ in millions)
Account
Value
 
NAR
before
Reinsurance
 
NAR
after Reinsurance
 
Average
Attained Age
of Annuitant
 
 
 
 
 
 
 
 
GMDB return of premium
$
604.6

 
$
1.2

 
$
1.2

 
64
GMDB step up
1,170.1

 
60.8

 
7.9

 
65
GMDB earnings enhancement benefit (“EEB”)
29.0

 
—

 
—

 
65
GMDB greater of annual step up and roll up
22.4

 
4.8

 
4.8

 
69
Total GMDB at March 31, 2015
1,826.1

 
$
66.8

 
$
13.9

 
 
Less: General account value with GMDB
267.1

 
 
 
 
 
 
Subtotal separate account liabilities with GMDB
1,559.0

 
 
 
 
 
 
Separate account liabilities without GMDB
148.9

 
 
 
 
 
 
Total separate account liabilities
$
1,707.9

 
 
 
 
 
 
GMIB [1] at March 31, 2015
$
297.5

 
 
 
 
 
65
 
 
 
 
 
 
 
 
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
———————
[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
GMWB and GMDB
($ in millions)
Three Months Ended 
 March 31,
 
2015
 
2014
 
 
 
 
Balance, beginning of period
$
147.0

 
$
85.4

Incurred
10.5

 
0.4

Paid
(0.1
)
 
(0.1
)
Assumption unlocking
—

 
—

Change due to net unrealized gains or losses included in AOCI
13.9

 
18.5

Balance, end of period
$
171.3

 
$
104.2


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 Guaranteed
Liability Balances:
Universal Life
Secondary Guarantees
($ in millions)
Three Months Ended 
 March 31,
 
2015
 
2014
 
 
 
 
Balance, beginning of period
$
166.3

 
$
145.8

Incurred
9.3

 
7.8

Paid
(6.4
)
 
(1.9
)
Assumption unlocking
—

 
—

Change due to net unrealized gains or losses included in AOCI
1.2

 
0.8

Balance, end of period
$
170.4

 
$
152.5


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.

Changes in Additional
Liability Balances:
Universal Life
Profits Followed by Losses
($ in millions)
Three Months Ended 
 March 31,
 
2015
 
2014
 
 
 
 
Balance, beginning of period
$
366.6

 
$
270.3

Incurred
12.1

 
16.4

Assumption unlocking
(4.6
)
 
—

Change due to net unrealized gains or losses included in AOCI
23.5

 
13.6

Balance, end of period
$
397.6

 
$
300.3
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 Note 8 to our financial statements in the 2014 Form 10-K. These features are accounted for as embedded derivatives as described below.

Embedded Derivatives Non-Insurance Guaranteed Product Features:
March 31, 2015
($ in millions)
Account
Value
 
Average
Attained Age
of Annuitant
 
 
 
 
GMWB
$
453.6

 
65
GMAB
290.9

 
59
COMBO
5.2

 
63
Balance, end of period
$
749.7

 
 
 
 
 
 
Embedded Derivatives Non-Insurance Guaranteed Product Features:
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 Derivative Liabilities
The fair value of the GMWB, GMAB and COMBO obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. As markets change, contracts mature and actual policyholder behavior emerges, these assumptions are continually evaluated and may from time to time be adjusted. Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below.

Embedded Derivative Liabilities:
($ in millions)
March 31, 2015
 
December 31, 2014
 
 
 
 
GMWB
$
9.0

 
$
6.9

GMAB
(0.7
)
 
(0.3
)
COMBO
(0.1
)
 
(0.2
)
Total variable annuity embedded derivative liabilities
$
8.2

 
$
6.4