Future Policy Benefits and Claims and Separate Account Liabilities

6 Months Ended

Jun. 30, 2012

Future Policy Benefits and Claims and Separate Account Liabilities

Future Policy Benefits and Claims and Separate Account Liabilities

7.  Future Policy Benefits and Claims and Separate Account Liabilities

As described in Note 1 and Note 2, the Company retrospectively adopted a new accounting standard on DAC in the first quarter of 2012.

Future policy benefits and claims (subsequent to the adjustment for the new accounting standard) consisted of the following:

	June 30, 2012		December 31, 2011
	(in millions)
Fixed annuities	$	16,325	$	16,401
Equity indexed annuity (“EIA”) accumulated host values	41		58
EIA embedded derivatives	2		2
Variable annuity fixed sub-accounts	4,829		4,852
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)	1,258		1,377
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)	180		237
Other variable annuity guarantees	10		14
Total annuities	22,645		22,941
Variable universal life (“VUL”)/universal life (“UL”) insurance	2,708		2,662
Indexed universal life (“IUL”) accumulated host values	19		4
IUL embedded derivatives	22		3
VUL/UL insurance additional liabilities	264		220
Other life, disability income and long term care insurance	5,477		5,339
Auto, home and other insurance	415		420
Policy claims and other policyholders’ funds	125		121
Total	$	31,675	$	31,710

Separate account liabilities consisted of the following:

	June 30, 2012		December 31, 2011
	(in millions)
Variable annuity variable sub-accounts	$	60,437	$	57,556
VUL insurance variable sub-accounts	5,792		5,575
Other insurance variable sub-accounts	41		43
Threadneedle investment liabilities	3,033		3,606
Total	$	69,303	$	66,780