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Variable Annuity and Insurance Guarantees
 9 Months Ended
Sep. 30, 2013
Insurance [Abstract]  
Variable Annuity and Insurance Guarantees
Variable Annuity and Insurance Guarantees
 
The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.
 
Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.
 
The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:
 
 
September 30, 2013
 
December 31, 2012
Variable Annuity Guarantees by
Benefit Type(1)
 
Total Contract Value
 
Contract Value in Separate Accounts
 
Net Amount at Risk(2)
 
Weighted Average Attained Age
 
Total Contract Value
 
Contract Value in Separate Accounts
 
Net Amount at Risk(2)
 
Weighted Average Attained Age
 
 
(in millions, except age)
GMDB:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Return of premium
 
$
50,219

 
$
48,406

 
$
37

 
63
 
$
45,697

 
$
43,942

 
$
61

 
63
Five/six-year reset
 
11,096

 
8,549

 
55

 
64
 
11,233

 
8,722

 
115

 
63
One-year ratchet
 
7,508

 
7,088

 
54

 
65
 
7,367

 
6,933

 
106

 
65
Five-year ratchet
 
1,712

 
1,657

 
2

 
62
 
1,616

 
1,563

 
3

 
61
Other
 
997

 
977

 
45

 
69
 
912

 
885

 
62

 
68
Total — GMDB
 
$
71,532

 
$
66,677

 
$
193

 
63
 
$
66,825

 
$
62,045

 
$
347

 
63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GGU death benefit
 
$
1,015

 
$
962

 
$
110

 
64
 
$
958

 
$
907

 
$
93

 
63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMIB
 
$
410

 
$
386

 
$
45

 
66
 
$
425

 
$
399

 
$
72

 
66
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMWB:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
GMWB
 
$
3,873

 
$
3,857

 
$
14

 
67
 
$
3,898

 
$
3,880

 
$
34

 
66
GMWB for life
 
32,290

 
32,143

 
211

 
65
 
28,588

 
28,462

 
263

 
64
Total — GMWB
 
$
36,163

 
$
36,000

 
$
225

 
65
 
$
32,486

 
$
32,342

 
$
297

 
64
GMAB
 
$
4,026

 
$
4,012

 
$
2

 
57
 
$
3,773

 
$
3,762

 
$
5

 
57
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.
(2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract.

Changes in variable annuity and insurance guarantees were as follows:
 
GMDB & GGU
 
GMIB
 
GMWB
 
GMAB
 
UL
 
(in millions)
Balance at January 1, 2012
$
5

 
$
9

 
$
1,377

 
$
237

 
$
111

Incurred claims
5

 
1

 
(304
)
 
(103
)
 
39

Paid claims
(6
)
 
(1
)
 
—

 
—

 
(8
)
Balance at September 30, 2012
$
4

 
$
9

 
$
1,073

 
$
134

 
$
142

 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2013
$
4

 
$
9

 
$
799

 
$
103

 
$
155

Incurred claims
2

 
(2
)
 
(908
)
 
(127
)
 
45

Paid claims
(3
)
 
—

 
—

 
—

 
(11
)
Balance at September 30, 2013
$
3

 
$
7

 
$
(109
)
 
$
(24
)
 
$
189


The liabilities for guaranteed benefits are supported by general account assets.
 
The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
 
September 30, 2013
 
December 31, 2012
 
(in millions)
Mutual funds:
 

 
 

Equity
$
34,204

 
$
32,054

Bond
25,366

 
26,165

Other
7,184

 
3,991

Total mutual funds
$
66,754

 
$
62,210