Guaranteed Benefit Features

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements [Abstract]

8. Guaranteed Benefit Features

Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows (our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive):

		As of				As of
	September 30,				December 31,
		2012				2011
Return of Net Deposits
Total account value		$	61,418			$	54,004
Net amount at risk⁽¹⁾			460				1,379
Average attained age of contract holders			60 years				59 years
Minimum Return
Total account value		$	152			$	155
Net amount at risk⁽¹⁾			37				48
Average attained age of contract holders			72 years				72 years
Guaranteed minimum return			5	%			5	%
Anniversary Contract Value
Total account value		$	22,968			$	21,648
Net amount at risk⁽¹⁾			1,305				2,939
Average attained age of contract holders			67 years				67 years

Represents the amount of death benefit in excess of the account balance. The decrease in net amount at risk when comparing September 30, 2012, to December 31, 2011, was attributable primarily to the increase in the equity markets during the first nine months of 2012.

The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDB (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets:

			For the Nine
			Months Ended
			September 30,
			2012		2011
Balance as of beginning-of-year			$	84	$	44
	Changes in reserves			54		108
	Benefits paid			(36)		(34)
		Balance as of end-of-period	$	102	$	118

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

		As of			As of
		September 30,			December 31,
		2012			2011
Asset Type
Domestic equity		$	37,679		$	34,286
International equity			14,466			13,095
Bonds			20,347			17,735
Money market			7,225			5,892
	Total	$	79,717		$	71,008

Percent of total variable annuity separate account values			98	%		98	%

Future contract benefits also includes reserves for our products with secondary guarantees for our products sold through our Life Insurance segment. These UL and VUL products with secondary guarantees represented 38% of permanent life insurance in force as of September 30, 2012, and 26% and 31% of total sales for these products for the three and nine months ended September 30, 2012, respectively.