| 9. |
Policyholder Account
Balances |
As of December 31, 2014 and 2013, policyholders’ account
balances consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
| |
|
Successor |
|
|
|
|
Predecessor |
|
|
($ in thousands)
|
|
December 31, 2014 |
|
|
|
|
December 31, 2013 |
|
|
Interest-sensitive life contracts
|
|
$ |
5,008,094 |
|
|
|
|
$ |
5,020,265 |
|
|
Individual annuities
|
|
|
4,806,270 |
|
|
|
|
|
7,803,892 |
|
|
Other
|
|
|
14,973 |
|
|
|
|
|
299,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total policyholders’ account balances
|
|
$ |
9,829,337 |
|
|
|
|
$ |
13,124,115 |
|
|
|
|
|
|
|
|
|
|
|
|
Successor
Policyholders’ account balances represent an accumulation of
account deposits plus credited interest less withdrawals, expenses
and mortality charges, if applicable. These policyholders’
account balances also include provisions for benefits under
non-life contingent payout annuities. Interest crediting rates
range from 0.4% to 6.0% for interest sensitive contracts. Interest
crediting rates for individual annuities range from 0.0% to
6.0%.
Predecessor
The following table highlights the key contract provisions relating
to policyholders’ account balances:
|
|
|
|
|
|
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 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 |
|