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:



Variable Annuity Guarantees by Benefit Type ⁽¹⁾	March 31, 2016							December 31, 2015
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	$	54,991	$	53,127	$	310	65	$	54,716	$	52,871	$	297	65
Five/six-year reset	9,135		6,529		71		65	9,307		6,731		78		65
One-year ratchet	6,650		6,280		247		67	6,747		6,379		266		67
Five-year ratchet	1,590		1,531		18		63	1,613		1,556		20		63
Other	896		877		86		71	887		869		82		71
Total — GMDB	$	73,262	$	68,344	$	732	65	$	73,270	$	68,406	$	743	65

GGU death benefit	$	1,049	$	997	$	111	68	$	1,056	$	1,004	$	113	67

GMIB	$	261	$	242	$	18	68	$	270	$	251	$	17	68

GMWB:
GMWB	$	3,015	$	3,006	$	2	69	$	3,118	$	3,109	$	2	69
GMWB for life	37,795		37,675		383		66	37,301		37,179		330		66
Total — GMWB	$	40,810	$	40,681	$	385	66	$	40,419	$	40,288	$	332	66

GMAB	$	3,921	$	3,912	$	31	58	$	4,018	$	4,006	$	31	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, 2016			December 31, 2015
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,276	64	$	6,601	63

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

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, 2015	$	9		$	7	$	693	$	(41	)	$	263
Incurred claims	1			—		347		6			22
Paid claims	(1		)	—		—		—			(6		)
Balance at March 31, 2015	$	9		$	7	$	1,040	$	(35	)	$	279

Balance at January 1, 2016	$	14		$	8	$	1,057	$	—		$	332
Incurred claims	4			—		649		31			22
Paid claims	(4		)	—		—		—			(6		)
Balance at March 31, 2016	$	14		$	8	$	1,706	$	31		$	348

⁽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, 2016		December 31, 2015
	(in millions)
Mutual funds:
Equity	$	39,138	$	39,806
Bond	23,818		23,700
Other	5,719		5,241
Total mutual funds	$	68,675	$	68,747