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⁾	June 30, 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	$	58,588	$	56,613	$	19	66	$	56,143	$	54,145	$	208		65
Five/six-year reset	8,883		6,156		14		66	8,878		6,170		22			66
One-year ratchet	6,475		6,106		20		68	6,426		6,050		110			68
Five-year ratchet	1,556		1,496		1		65	1,542		1,483		7			64
Other	1,031		1,008		64		71	965		942		86			71
Total — GMDB	$	76,533	$	71,379	$	118	66	$	73,954	$	68,790	$	433		65
GGU death benefit	$	1,089	$	1,038	$	120	69	$	1,047	$	996	$	108		68
GMIB	$	236	$	218	$	8	68	$	245	$	227	$	13		68
GMWB:
GMWB	$	2,553	$	2,544	$	2	71	$	2,650	$	2,642	$	2		70
GMWB for life	41,803		41,674		189		67	39,436		39,282		289		⁽²⁾	66
Total — GMWB	$	44,356	$	44,218	$	191	67	$	42,086	$	41,924	$	291		66
GMAB	$	3,257	$	3,252	$	—	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.

⁽²⁾ Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

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



	June 30, 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	$	6,420	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	3			—			1,099			45			44
Paid claims	(6		)	—			—			(1		)	(12		)
Balance at June 30, 2016	$	11		$	8		$	2,156		$	44		$	364

Balance at January 1, 2017	$	16		$	8		$	1,017		$	(24	)	$	434
Incurred claims	1			—			(278		)	(33		)	52
Paid claims	(1		)	(1		)	—			—			(16		)
Balance at June 30, 2017	$	16		$	7		$	739		$	(57	)	$	470

⁽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:



	June 30, 2017		December 31, 2016
	(in millions)
Mutual funds:
Equity	$	43,034	$	40,622
Bond	23,363		23,142
Other	5,289		5,326
Total mutual funds	$	71,686	$	69,090