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:



	June 30, 2015							December 31, 2014
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	$	56,176	$	54,345	$	47	64	$	55,378	$	53,565	$	24	64
Five/six-year reset	10,008		7,462		31		65	10,360		7,821		28		64
One-year ratchet	7,223		6,846		69		67	7,392		7,006		39		66
Five-year ratchet	1,734		1,677		4		63	1,773		1,717		2		63
Other	926		909		45		70	959		941		38		70
Total — GMDB	$	76,067	$	71,239	$	196	64	$	75,862	$	71,050	$	131	64

GGU death benefit	$	1,097	$	1,045	$	123	67	$	1,072	$	1,019	$	123	67
GMIB	$	310	$	288	$	10	67	$	343	$	321	$	9	67

GMWB:
GMWB	$	3,478	$	3,467	$	1	68	$	3,671	$	3,659	$	1	68
GMWB for life	37,753		37,629		137		66	36,843		36,735		95		65
Total — GMWB	$	41,231	$	41,096	$	138	66	$	40,514	$	40,394	$	96	65

GMAB	$	4,246	$	4,229	$	5	58	$	4,247	$	4,234	$	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:



	June 30, 2015			December 31, 2014
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,258	63	$	6,076	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, 2014	$	4		$	6	$	(383	)	$	(62	)	$	206
Incurred claims	2			—		252			(14		)	39
Paid claims	(2		)	—		—			—			(9		)
Balance at June 30, 2014	$	4		$	6	$	(131	)	$	(76	)	$	236

Balance at January 1, 2015	$	9		$	7	$	693		$	(41	)	$	263
Incurred claims	1			—		(225		)	(4		)	45
Paid claims	(1		)	—		—			—			(12		)
Balance at June 30, 2015	$	9		$	7	$	468		$	(45	)	$	296

⁽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:



	June 30, 2015		December 31, 2014
	(in millions)
Mutual funds:
Equity	$	41,180	$	41,403
Bond	24,736		25,060
Other	5,062		4,490
Total mutual funds	$	70,978	$	70,953