XML 79 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)
12 Months Ended
Dec. 31, 2013
Schedule of Reserve for Life-Contingent Contract Benefits

As of December 31, the reserve for life-contingent contract benefits consists of the following:

 

($ in thousands)    2013      2012  

Traditional life insurance

   $ 1,548,134       $ 1,519,650   

Immediate fixed annuities

     676,565         677,986   

Accident and health insurance

     1,324,268         1,217,648   

Other

     8,444         9,395   
  

 

 

    

 

 

 

Total reserve for life-contingent contract benefits

   $ 3,557,411       $ 3,424,679   
  

 

 

    

 

 

 

Schedule of Key Assumptions Used In Calculation Reserve for Life-Contingent Contract Benefits

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits:

 

Product

  

Mortality

   Interest rate    Estimation method
Traditional life insurance    Actual company experience plus loading    Interest rate
assumptions range
from 2.5% to 8.0%
   Net level premium
reserve method using
the Company’s
withdrawal experience
rates; includes reserves
for unpaid claims
Immediate fixed annuities    1983 individual annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications    Interest rate
assumptions range
from 0% to 8.8%
   Present value of
expected future
benefits based on
historical experience
Accident and health insurance    Actual company experience plus loading    Interest rate
assumptions range
from 4.0% to 5.3%
   Unearned premium;
additional contract
reserves for mortality
risk and unpaid claims

Other:

 

Variable annuity guaranteed minimum death benefits

  

 

Annuity 2000 mortality table with internal modifications

  

 

Interest rate
assumptions range
from 4.0% to 5.8%

  

 

Projected benefit ratio
applied to cumulative
assessments

Schedule of Contractholder Funds

As of December 31, contractholder funds consist of the following:

 

($ in thousands)    2013      2012  

Interest-sensitive life insurance

   $ 5,020,265       $ 4,814,410   

Investment contracts:

     

Fixed annuities

     7,803,892         9,201,641   

Other investment contracts

     299,958         239,793   
  

 

 

    

 

 

 

Total contractholder funds

   $ 13,124,115       $ 14,255,844   
  

 

 

    

 

 

 

Schedule of Contract Provisions Related to Contractholder Funds

The following table highlights the key contract provisions relating to contractholder funds:

 

Product

  

Interest rate

  

Withdrawal/surrender charges

Interest-sensitive life insurance

   Interest rates credited range from 0% to 10.0% for equity-indexed life (whose returns are indexed to the S&P 500) and 2.6% to 6.0% for all other products    Either a percentage of account balance or dollar amount grading off generally over 20 years

Fixed annuities

   Interest rates credited range from 0% to 8.8% for immediate annuities; 0% to 7.0% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 1.0% to 6.0% for all other products    Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 18.7% of fixed annuities are subject to market value adjustment for discretionary withdrawals.

Other investment contracts:

 

Guaranteed minimum income, accumulation and withdrawal benefits on variable and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities

  

 

 

Interest rates used in establishing reserves range from 1.7% to 10.3%

  

 

 

Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

Schedule of Contractholder Funds Activity

Contractholder funds activity for the years ended December 31 is as follows:

 

($ in thousands)    2013     2012     2011  

Balance, beginning of year

   $ 14,255,844      $ 15,489,624     $ 17,247,071   

Deposits

     1,109,108        1,070,374       1,007,316   

Interest credited

     524,801        406,805       576,331   

Benefits

     (353,687     (473,329     (459,991

Surrenders and partial withdrawals

     (1,880,495     (1,703,966     (2,412,295

Contract charges

     (601,609     (558,519     (513,068

Net transfers from separate accounts

     18,477        16,463       18,935   

Other adjustments

     51,676        8,392       25,325   
  

 

 

   

 

 

   

 

 

 

Balance, end of year

   $ 13,124,115      $ 14,255,844     $ 15,489,624   
  

 

 

   

 

 

   

 

 

 

Summary of Variable Annuity Contracts with Guarantees

The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.

 

     December 31,  
($ in millions)    2013      2012  

In the event of death

     

Separate account value

   $ 877.0       $ 926.1   

Net amount at risk(1)

   $ 63.2       $ 101.6   

Average attained age of contractholders

     59 years         59 years   

At annuitization (includes income benefit guarantees)

     

Separate account value

   $ 170.5       $ 168.1   

Net amount at risk(2)

   $ 16.6       $ 29.6   

Weighted average waiting period until annuitization options available

     None         1 year   

For cumulative periodic withdrawals

     

Separate account value

   $ 21.8       $ 24.8   

Net amount at risk(3)

   $ 0.1       $ 0.2   

Accumulation at specified dates

     

Separate account value

   $ 151.1       $ 172.0   

Net amount at risk(4)

   $ 7.3       $ 13.7   

Weighted average waiting period until guarantee date

     6 years         7 years   

 

(1) 

Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.

(2) 

Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.

(3) 

Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.

(4) 

Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.