Separate Accounts, Death Benefits and Other Insurance Benefit Features (Tables)

3 Months Ended

Mar. 31, 2014

Separate Accounts, Death Benefits and Other Insurance Benefit Features [Abstract]

Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits

Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits are as follows:

	U.S. GMDB			International GMDB/GMIB			UL Secondary Guarantees
Liability balance as of January 1, 2014	$	849		$	272		$	1,802
Incurred	46			15			56
Paid	(30		)	(8		)	—
Unlock	(11		)	3			—
Currency translation adjustment	—			6			—
Liability balance as of March 31, 2014	$	854		$	288		$	1,858
Reinsurance recoverable asset, as of January 1, 2014	$	533		$	23		$	1,802
Incurred	26			2			56
Paid	(22		)	(2		)	—
Unlock	(5		)	6			—
Currency translation adjustment	—			—			—
Reinsurance recoverable asset, as of March 31, 2014	$	532		$	29		$	1,858

	U.S. GMDB			International GMDB/GMIB			UL Secondary Guarantees
Liability balance as of January 1, 2013	$	918		$	661		$	363
Incurred	46			30			66
Paid	(40		)	(32		)	—
Unlock	(52		)	(113		)	—
Impact of reinsurance transaction	—			—			1,145
Currency translation adjustment	—			(54		)	—
Liability balance as of March 31, 2013	$	872		$	492		$	1,574
Reinsurance recoverable asset, as of January 1, 2013	$	608		$	36		$	21
Incurred	27			3			68
Paid	(28		)	(6		)	—
Unlock	(28		)	(10		)	—
Impact of reinsurance transaction	—			—			1,485
Currency translation adjustment	—			(3		)	—
Reinsurance recoverable asset, as of March 31, 2013	$	579		$	20		$	1,574

Individual Variable and Group Annuity Account Value By GMDB GMIB Type

The following table provides details concerning GMDB and GMIB exposure as of March 31, 2014:

Individual Variable and Group Annuity Account Value by GMDB/GMIB Type
Maximum anniversary value (“MAV”) [1]	Account Value (“AV”) [8]		Net Amount at Risk (“NAR”) [10]		Retained Net Amount at Risk (“RNAR”) [10]		Weighted Average Attained Age of Annuitant
MAV only	$	18,971	$	2,836	$	492	69
With 5% rollup [2]	1,563		227		64		69
With Earnings Protection Benefit Rider (“EPB”) [3]	4,735		615		85		68
With 5% rollup & EPB	576		117		26		70
Total MAV	25,845		3,795		667
Asset Protection Benefit (“APB”) [4]	17,717		256		174		68
Lifetime Income Benefit (“LIB”) — Death Benefit [5]	733		8		8		67
Reset [6] (5-7 years)	3,205		66		65		69
Return of Premium (“ROP”) [7]/Other	12,047		67		57		67
Subtotal U.S. GMDB	59,547		4,192		971		68
Less: General Account Value with U.S. GMDB	4,249
Subtotal Separate Account Liabilities with GMDB	55,298
Separate Account Liabilities without U.S. GMDB	83,194
Total Separate Account Liabilities	$	138,492
Japan GMDB [9], [11]	$	17,800	$	955	$	668	71
Japan GMIB [9], [11]	$	16,309	$	164	$	164	71

[1] MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 years (adjusted for withdrawals).

[2] Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums.

[3] EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net of withdrawals.

[4] APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months).

[5] LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a benefit amount that ratchets over time, generally based on market performance.

[6] Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 years (adjusted for withdrawals).

[7] ROP GMDB is the greater of current AV or net premiums paid.

[8] AV includes the contract holder’s investment in the separate account and the general account.

[9] GMDB includes a ROP and MAV (before age 80 years) paid in a single lump sum. GMIB is a guarantee to return initial investment, adjusted for earnings liquidity which allows for free withdrawal of earnings, paid through a fixed payout annuity, after a minimum deferral period of 10 years, 15 years or 20 years . The GRB related to the Japan GMIB was $15.1 billion as of March 31, 2014. The GRB related to the Japan GMAB and GMWB was $353 as of March 31, 2014. These liabilities are not included in the Separate Account as they are not legally insulated from the general account liabilities of the insurance enterprise. As of March 31, 2014, 30% of the GMDB RNAR and 74% of the GMIB NAR is reinsured to a Hartford affiliate, as a result, the effects of the reinsurance are not reflected in this disclosure.

[10] NAR is defined as the guaranteed benefit in excess of the current AV. RNAR represents NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity markets movements and increase when equity markets decline. Additionally Japan’s NAR and RNAR are highly sensitive to currency movements and increase when the Yen strengthens.

[11] Policies with a guaranteed living benefit (GMIB in Japan) also have a guaranteed death benefit. The NAR for each benefit is shown in the table above, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR is released.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

In the U.S., account balances of contracts with guarantees were invested in variable separate accounts as follows:

Asset type	As of March 31, 2014		As of December 31, 2013
Equity securities (including mutual funds)	$	50,866	$	52,858
Cash and cash equivalents	4,432		4,605
Total	$	55,298	$	57,463