Guaranteed Benefit Features

6 Months Ended

Jun. 30, 2020

Guaranteed Benefit Features [Abstract]

8. Guaranteed Benefit Features

Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows:


	As of		As of
	June 30,		December 31,
	2020 ⁽¹⁾			2019 ⁽¹⁾
Return of Net Deposits
Total account value	$	97,611		$	101,601
Net amount at risk ⁽²⁾		340			71
Average attained age of contract holders		66 years			65 years

Minimum Return
Total account value	$	87		$	92
Net amount at risk ⁽²⁾		13			13
Average attained age of contract holders		78 years			77 years
Guaranteed minimum return		5%			5%

Anniversary Contract Value
Total account value	$	24,457		$	25,763
Net amount at risk ⁽²⁾		663			384
Average attained age of contract holders		72 years			71 years

⁽¹⁾Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.

⁽²⁾Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations.

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 GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets:


	For the Six
	Months Ended
	June 30,
	2020			2019
Balance as of beginning-of-year	$	117		$	161
Changes in reserves		35			(35	)
Benefits paid		(17	)		(11	)
Balance as of end-of-period	$	135		$	115

Variable Annuity Contracts

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


	As of			As of
	June 30,		December 31,
	2020			2019
Asset Type
Domestic equity	$	60,993		$	64,093
International equity		18,372			19,852
Fixed income		39,824			41,405
Total	$	119,189		$	125,350

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

Secondary Guarantee Products

Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 37% of total life insurance in-force reserves as of June 30, 2020, and December 31, 2019. UL and VUL products with secondary guarantees represented 37% and 33% of total life insurance sales for the three and six months ended June 30, 2020, respectively, compared to 29% for the corresponding periods in 2019.