Ameriprise 2014 Annual Report Download - page 151

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,
2014 2013
(in millions)
Policyholder account balances
Fixed annuities $ 12,700 $ 13,826
Variable annuity fixed sub-accounts 4,860 4,926
VUL/UL insurance 2,856 2,790
IUL insurance 534 315
Other life insurance 840 878
Total policyholder account balances 21,790 22,735
Future policy benefits
Variable annuity GMWB 693 (383)(1)
Variable annuity GMAB (41)(2) (62)(2)
Other annuity liabilities 115 76
Fixed annuities life contingent liabilities 1,511 1,523
EIA 29 29
Life, DI and LTC insurance 5,106 4,739
VUL/UL and other life insurance additional liabilities 437 336
Total future policy benefits 7,850 6,258
Policy claims and other policyholders’ funds 710 627
Total policyholder account balances, future policy benefits and claims $ 30,350 $ 29,620
(1) Includes the value of GMWB embedded derivatives that was a net asset at December 31, 2013 reported as a contra liability.
(2) Includes the value of GMAB embedded derivatives that was a net asset at both December 31, 2014 and 2013 reported as a contra
liability.
Separate account liabilities consisted of the following:
December 31,
2014 2013
(in millions)
Variable annuity $ 72,125 $ 70,687
VUL insurance 7,016 6,885
Other insurance 37 44
Threadneedle investment liabilities 4,078 3,607
Total $ 83,256 $ 81,223
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 contracts 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 Index. 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 contracts in fixed rate securities and hedges the equity risk with derivative
instruments. See Note 16 for additional information regarding the Company’s derivative instruments used to hedge the risk
related to EIA. In 2007, the Company discontinued new sales of EIA.
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
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