Allstate 2015 Annual Report Download - page 229

The Allstate Corporation 2015 Annual Report 223
As of December31, contractholder funds consist of the following:
($ in millions) 2015 2014
Interest‑sensitive life insurance $ 7,975 $ 7,880
Investment contracts:
Fixed annuities 12,974 14,310
Funding agreements backing medium‑term notes 85 85
Other investment contracts 261 254
Total contractholder funds $ 21,295 $ 22,529
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 10.5% for equity‑indexed life (whose
returns are indexed to the S&P 500)
and 1.0% 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 9.8% for immediate annuities;
(8.0)% to 13.5% for equity‑indexed
annuities (whose returns are indexed
to the S&P 500); and 0.1% to 6.0% for
all other products
Either a declining or a level percentage
charge generally over ten years or less.
Additionally, approximately 19.2% of
fixed annuities are subject to market
value adjustment for discretionary
withdrawals
Funding agreements backing medium‑
term notes
Interest rate credited is a floating rate,
currently 0%
Not applicable
Other investment contracts:
Guaranteed minimum income,
accumulation and withdrawal
benefits on variable (1) 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
(1) In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.
Contractholder funds include funding agreements held by a VIE, Allstate Life Global Funding, that issued medium-
term notes. The VIE’s primary assets are funding agreements used exclusively to back medium-term note programs.
Contractholder funds activity for the years ended December31 is as follows:
($ in millions) 2015 2014 2013
Balance, beginning of year $ 22,529 $ 24,304 $ 39,319
Classified as held for sale, beginning balance — 10,945 —
Total, including those classified as held for sale 22,529 35,249 39,319
Deposits 1,203 1,333 2,440
Interest credited 760 919 1,295
Benefits (1,077) (1,197) (1,535)
Surrenders and partial withdrawals (1,278) (2,273) (3,299)
Maturities of and interest payments on institutional products (1) (2) (1,799)
Contract charges (818) (881) (1,112)
Net transfers from separate accounts 7 7 12
Other adjustments (30) 36 (72)
Sold in LBL disposition — (10,662) —
Classified as held for sale, ending balance — — (10,945)
Balance, end of year $ 21,295 $ 22,529 $ 24,304