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:



	March 31, 2014							December 31, 2013
Variable Annuity Guarantees by Benefit Type ⁽¹⁾	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	53,368	$	51,554	$	26	64	$	52,616	$	50,790	$	28	64
Five/six-year reset	10,938		8,392		36		64	11,220		8,663		42		64
One-year ratchet	7,608		7,203		36		66	7,676		7,261		38		65
Five-year ratchet	1,790		1,734		1		62	1,781		1,725		1		62
Other	1,002		983		37		69	1,015		996		36		69
Total — GMDB	$	74,706	$	69,866	$	136	64	$	74,308	$	69,435	$	145	64

GGU death benefit	$	1,051	$	999	$	121	66	$	1,052	$	998	$	121	64

GMIB	$	396	$	372	$	8	66	$	413	$	389	$	8	66

GMWB:
GMWB	$	3,864	$	3,850	$	1	67	$	3,936	$	3,921	$	1	67
GMWB for life	34,821		34,695		92		65	34,069		33,930		77		64
Total — GMWB	$	38,685	$	38,545	$	93	65	$	38,005	$	37,851	$	78	64

GMAB	$	4,201	$	4,190	$	1	58	$	4,194	$	4,181	$	2	58

⁽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.

The net amount at risk for GMDB, GGU and GMAB guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models.

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:



	March 31, 2014			December 31, 2013
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	5,749	62	$	5,674	62

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder value.

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:



	GMDB & GGU			GMIB		GMWB ⁽¹⁾			GMAB ⁽¹⁾			UL
	(in millions)
Balance at January 1, 2013	$	4		$	9	$	799		$	103		$	155
Incurred claims	1			—		(480		)	(80		)	17
Paid claims	(1		)	—		—			—			(3		)
Balance at March 31, 2013	$	4		$	9	$	319		$	23		$	169

Balance at January 1, 2014	$	4		$	6	$	(383	)	$	(62	)	$	206
Incurred claims	1			—		116			(7		)	11
Paid claims	(1		)	—		—			—			4
Balance at March 31, 2014	$	4		$	6	$	(267	)	$	(69	)	$	221

⁽¹⁾The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities).

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:



	March 31, 2014		December 31, 2013
	(in millions)
Mutual funds:
Equity	$	39,742	$	39,195
Bond	25,965		26,519
Other	4,168		3,764
Total mutual funds	$	69,875	$	69,478