Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits

12 Months Ended

Dec. 31, 2012

Investment Contracts Insurance Liabilities And Insurance Annuity Benefits [Abstract]

GECC Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits

NOTE 9. INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS

Investment contracts, insurance liabilities and insurance annuity benefits comprise mainly obligations to annuitants and policyholders in our run-off insurance operations and holders of guaranteed investment contracts.

December 31 (In millions)	2012		2011
Investment contracts	$	3,321	$	3,493
Guaranteed investment contracts		1,644		4,226
Total investment contracts		4,965		7,719
Life insurance benefits(a)		20,427		19,257
Other(b)		3,304		3,222
Total	$	28,696	$	30,198

• Life insurance benefits are accounted for mainly by a net-level-premium method using estimated yields generally ranging from 3.0% to 8.5% in both 2012 and 2011.
• Substantially all unpaid claims and claims adjustment expenses and unearned premiums.

When insurance affiliates cede insurance risk to third parties, such as reinsurers, they are not relieved of their primary obligation to policyholders. When losses on ceded risks give rise to claims for recovery, we establish allowances for probable losses on such receivables from reinsurers as required. Reinsurance recoverables are included in the caption “Other receivables” on our Statement of Financial Position, and amounted to $1,542million and $1,411million atDecember 31, 2012 and 2011, respectively.

We recognize reinsurance recoveries as a reduction of the Statement of Earnings caption “Investment contracts, insurance losses and insurance annuity benefits.” Reinsurance recoveries were $234 million, $224 million and $174 million for the years ended December 31, 2012, 2011 and 2010, respectively.