Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits

12 Months Ended

Dec. 31, 2013

Investment Contracts Insurance Liabilities And Insurance Annuity Benefits [Abstract]

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)	2013		2012
Investment contracts	$	3,144	$	3,321
Guaranteed investment contracts		1,471		1,644
Total investment contracts		4,615		4,965
Life insurance benefits(a)		18,959		20,427
Other(b)		3,405		3,304
Total	$	26,979	$	28,696

• 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 2013 and 2012.
• 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 $1,685 million and $1,542 million at December 31, 2013 and 2012, 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 $250 million, $234 million and $224 million for the years ended December 31, 2013, 2012 and 2011, respectively.