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, 2017							December 31, 2016
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	$	57,540	$	55,555	$	50	66	$	56,143	$	54,145	$	208	65
Five/six-year reset	8,919		6,198		16		66	8,878		6,170		22		66
One-year ratchet	6,474		6,102		33		68	6,426		6,050		110		68
Five-year ratchet	1,560		1,501		2		64	1,542		1,483		7		64
Other	997		973		71		71	965		942		86		71
Total — GMDB	$	75,490	$	70,329	$	172	66	$	73,954	$	68,790	$	433	65
GGU death benefit	$	1,070	$	1,019	$	115	69	$	1,047	$	996	$	108	68
GMIB	$	240	$	222	$	9	68	$	245	$	227	$	13	68
GMWB:
GMWB	$	2,615	$	2,607	$	2	70	$	2,650	$	2,642	$	2	70
GMWB for life	40,729		40,594		221		66	39,436		39,282		495		66
Total — GMWB	$	43,344	$	43,201	$	223	66	$	42,086	$	41,924	$	497	66
GMAB	$	3,385	$	3,378	$	4	59	$	3,484	$	3,476	$	21	59

⁽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, 2017			December 31, 2016
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,407	64	$	6,376	64

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, 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

Balance at January 1, 2017	$	16		$	8		$	1,017		$	(24	)	$	434
Incurred claims	1			—			(380		)	(29		)	23
Paid claims	(1		)	(1		)	—			—			(8		)
Balance at March 31, 2017	$	16		$	7		$	637		$	(53	)	$	449

⁽¹⁾The incurred claims for GMWB and GMAB represent the change in the fair value of the liabilities (contra liabilities) less paid claims.

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, 2017		December 31, 2016
	(in millions)
Mutual funds:
Equity	$	42,276	$	40,622
Bond	23,220		23,142
Other	5,145		5,326
Total mutual funds	$	70,641	$	69,090