Ameriprise 2013 Annual Report Download - page 150

10. Policyholder Account Balances, Future Policy Benefits and Claims and
Separate Account Liabilities
Policyholder account balances, future policy benefits and claims consisted of the following:
December 31,
2013 2012
(in millions)
Policyholder account balances
Fixed annuities $ 13,826 $ 14,420
Variable annuity fixed sub-accounts 4,926 4,833
VUL/UL insurance 2,790 2,725
IUL insurance 315 137
Other life insurance 878 909
Total policyholder account balances 22,735 23,024
Future policy benefits
Variable annuity GMWB (383)(1) 799
Variable annuity GMAB (62)(1) 103
Other annuity liabilities 76 158
Fixed annuities life contingent liabilities 1,523 1,520
EIA 29 33
Life, DI and LTC insurance 4,739 4,703
VUL/UL and other life insurance additional liabilities 336 330
Total future policy benefits 6,258 7,646
Policy claims and other policyholders’ funds 627 547
Total policyholder account balances, future policy benefits and claims $ 29,620 $ 31,217
(1) Includes the value of GMWB and GMAB embedded derivatives which was a net asset at December 31, 2013 and the amount is
reported as a contra liability.
Separate account liabilities consisted of the following:
December 31,
2013 2012
(in millions)
Variable annuity $ 70,687 $ 63,302
VUL insurance 6,885 6,051
Other insurance 44 42
Threadneedle investment liabilities 3,607 3,002
Total $ 81,223 $ 72,397
Fixed Annuities
Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest
and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the
contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities.
The Index 500 Annuity, the Company’s EIA product, is a single premium deferred fixed annuity. The contract is issued with
an initial term of seven years and interest earnings are linked to the performance of the S&P 500 Indexᓼ. This annuity has
a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company
generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative
instruments. See Note 16 for additional information regarding the Company’s derivative instruments. In 2007, the
Company discontinued new sales of EIAs.
Variable Annuities
Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a
fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where
the assets are held for the exclusive benefit of those contractholders.
Most of the variable annuity contracts currently issued by the Company contain one or more guaranteed benefits, including
GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2
and Note 11 for additional information regarding the Company’s variable annuity guarantees. The Company does not
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