Ameriprise 2008 Annual Report Download - page 134

Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing
the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the
end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest
anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a
lump sum will be added to the contract value to make the contract value equal to the guarantee value.
Certain universal life contracts offered by the Company provide secondary guarantee benefits. The secondary guarantee
ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if
there is insufficient policy value to cover the monthly deductions and charges.
The following table provides summary information related to all variable annuity guarantees for which the Company has
established additional liabilities:
December 31, 2008 December 31, 2007
Contract Contract
Variable annuity Total value in Net Weighted Total value in Net Weighted
guarantees by contract separate amount average contract separate amount average
benefit type(1) value accounts at risk(2) attained age value accounts at risk(2) attained age
(in millions, except age)
GMDB:
Return of Premium $ 22,249 $ 20,153 $ 4,873 61 $ 25,804 $ 23,892 $ 26 60
Six-Year Reset 12,719 10,063 2,802 61 20,231 17,617 167 60
One-Year Ratchet 5,770 5,061 2,163 62 7,908 7,143 81 61
Five-Year Ratchet 951 888 199 59 1,211 1,163 1 58
Other 471 429 192 66 693 639 12 65
Total—GMDB $ 42,160 $ 36,594 $ 10,229 61 $ 55,847 $ 50,454 $ 287 60
GGU death benefit $ 699 $ 619 $ 65 63 $ 950 $ 873 $ 80 62
GMIB $ 567 $ 511 $ 245 63 $ 927 $ 859 $ 18 62
GMWB:
GMWB $ 3,513 $ 3,409 $ 1,312 63 $ 5,104 $ 4,980 $ 22 62
GMWB for life 9,194 8,764 2,704 63 7,958 7,685 33 62
Total—GMWB $ 12,707 $ 12,173 $ 4,016 63 $ 13,062 $ 12,665 $ 55 62
GMAB $ 2,006 $ 1,937 $ 608 56 $ 2,260 $ 2,205 $ 3 55
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type.
Variable annuity contracts for which the death benefit equals account value are not shown in this table.
(2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject
to waiting periods and payment periods specified in the contract. As a result of the recent market decline, the amount by which
guarantees exceed the accumulation value has increased significantly.
Changes in additional liabilities (assets) were as follows:
GMDB & GGU GMIB GMWB GMAB UL
(in millions)
Liability (asset) balance on January 1, 2007 $ 26 $ 5 $ (12) $ (5) $ 1
Incurred claims 1 — 148 38 4
Paid claims (3) (2) — — (1)
Liability balance at December 31, 2007 24 3 136 33 4
Incurred claims 58 10 1,335 334 6
Paid claims (27) (1) — — (3)
Liability balance at December 31, 2008 $ 55 $ 12 $ 1,471 $ 367 $ 7
The liabilities for guaranteed benefits are supported by general account assets.
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