Certain Long-Duration Contracts with Guarantees (Tables)

12 Months Ended

Dec. 31, 2017

Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract]

Schedule of Net Amount of Risk by Product and Guarantee

As of December 31, 2017 and 2016, the Company had the following guarantees associated with these contracts, by product and guarantee type:

	December 31, 2017				December 31, 2016
	In the Event of Death		At Annuitization / Accumulation(1)		In the Event of Death		At Annuitization / Accumulation(1)
	($ in millions)
Annuity Contracts
Return of net deposits
Account value	$	129,231	$	100	$	119,433	$	152
Net amount at risk	$	288	$	0	$	493	$	0
Average attained age of contractholders	66 years		66 years		65 years		66 years
Minimum return or contract value
Account value	$	35,431	$	146,319	$	33,843	$	135,462
Net amount at risk	$	2,611	$	3,762	$	3,714	$	5,788
Average attained age of contractholders	68 years		66 years		67 years		65 years
Average period remaining until earliest expected annuitization	N/A		0.24 years		N/A		0.27 years

__________

(1) Includes income and withdrawal benefits.

	December 31,
	2017		2016
	In the Event of Death
	($ in millions)
Variable Life, Variable Universal Life and Universal Life Contracts
No-lapse guarantees
Separate account value	$	9,365	$	8,144
General account value	$	15,969	$	14,513
Net amount at risk	$	241,598	$	225,084
Average attained age of contractholders	55 years		56 years

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows:

	December 31,
	2017		2016
	(in millions)
Equity funds	$	93,798	$	86,751
Bond funds	58,939		48,789
Balanced funds	1,382		914
Money market funds	4,391		10,124
Total	$	158,510	$	146,578

Schedule of Minimum Guaranteed Benefit Liabilities

The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”), and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”), and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 20 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 13 for further information regarding the external reinsurance arrangement.

	GMDB						GMIB			GMAB/GMWB/GMIWB
	Variable Life, Variable Universal Life and Universal Life			Annuity			Annuity			Annuity
	(in millions)
Balance at December 31, 2014	$	2,850		$	642		$	467		$	8,182
Incurred guarantee benefits(1)(3)	517			167			(40		)	252
Paid guarantee benefits and other	(22		)	(85		)	(16		)	0
Change in unrealized investment gains and losses(3)	(193		)	(10		)	41			0
Other(2)(3)	(2		)	0			(12		)	(1		)
Balance at December 31, 2015	3,150			714			440			8,433
Incurred guarantee benefits(1)(3)	927			98			(18		)	(194		)
Paid guarantee benefits	(36		)	(91		)	(15		)	0
Change in unrealized investment gains and losses(3)	102			0			49			0
Other(2)(3)	0			0			18			(1		)
Balance at December 31, 2016	4,143			721			474			8,238
Incurred guarantee benefits(1)	685			37			(20		)	479
Paid guarantee benefits	(15		)	(74		)	(15		)	0
Change in unrealized investment gains and losses	290			13			(30		)	0
Other(2)	7			0			10			4
Balance at December 31, 2017	$	5,110		$	697		$	419		$	8,721

__________

(1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives.

(2) Other primarily represents foreign currency translation.

(3) Prior period amounts are presented on a basis consistent with the current period presentation.

Deferred Sales Inducements

Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows:

	Sales Inducements
	(in millions)
Balance at December 31, 2014	$	1,514
Capitalization	8
Amortization—Impact of assumption and experience unlocking and true-ups	43
Amortization—All other	(392		)
Change in unrealized investment gains and losses	16
Balance at December 31, 2015	1,189
Capitalization	47
Amortization—Impact of assumption and experience unlocking and true-ups	118
Amortization—All other	(231		)
Change in unrealized investment gains and losses	4
Balance at December 31, 2016	1,127
Capitalization	2
Amortization—Impact of assumption and experience unlocking and true-ups	157
Amortization—All other	(105		)
Change in unrealized investment gains and losses	(13		)
Balance at December 31, 2017	$	1,168