Ameriprise 2015 Annual Report Download - page 150

comprised of the S&P 500 Index, the MSCI EAFE Index and MSCI EM Index. Both options offer two crediting durations,
one-year and two-year. The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed
account.
The Company also offers term life insurance as well as disability products. The Company no longer offers standalone LTC
products and whole life insurance but has in force policies from prior years.
Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims,
unpaid reported claims and claim adjustment expenses.
The balance of insurance liabilities related to unpaid reported claims and claim adjustment expenses for auto and home
was $640 million and $518 million as of December 31, 2015 and 2014, respectively. The balance of insurance liabilities
related to unpaid reported claims and claim adjustment expenses for life, DI and LTC policies was $1.1 billion and
$1.0 billion as of December 31, 2015 and 2014, respectively.
The change in the liability for prior year incurred unpaid reported claims and claim adjustment expenses related to auto
and home, life, DI and LTC policies was a decrease of $2 million, an increase of $9 million and an increase of $2 million
for the years 2015, 2014 and 2013, respectively.
• In 2015, there was a $60 million decrease primarily reflecting favorable closed claim trends of DI and LTC policies and
from an update to assumptions related to life rider benefits partially offset by an increase of $58 million related to
elevated frequency and severity experience for auto injury claims for 2014 and prior accident years as well as a more
gradual than anticipated improvement of 2014 and prior years existing claims and unfavorable prior year catastrophe
reserve development associated with 2014 hail storms.
• In 2014, there was a $42 million decrease related to favorable closed claim trends primarily related to DI and LTC
policies more than offset by a $54 million increase primarily reflecting adverse development in the 2013 and prior
accident years auto liability coverage.
• In 2013, there was a $38 million decrease related to favorable closed claim trends primarily related to DI and LTC
policies more than offset by a $42 million increase reflecting the unfavorable prior year reserve development for 2009
through 2012 auto liability claims and prior year catastrophe reserve development related to Superstorm Sandy.
Portions of the Company’s fixed and variable universal life policies have product features that result in profits followed by
losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure
of the product or secondary guarantees in the policy. 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.
Threadneedle Investment Liabilities
Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash. The
investments are selected by the clients and are based on the level of risk they are willing to assume. All investment
performance, net of fees, is passed through to the investors. The value of the liabilities represents the fair value of the
pooled pension funds.
Separate Account Liabilities
Separate account liabilities consisted of the following:
December 31,
2015 2014
(in millions)
Variable annuity $ 69,333 $ 72,125
VUL insurance 6,637 7,016
Other insurance 34 37
Threadneedle investment liabilities 4,345 4,078
Total $ 80,349 $ 83,256
11. Variable Annuity and Insurance Guarantees
The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers
variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB
provisions. See Note 2 and Note 10 for additional information regarding the Company’s variable annuity guarantees.
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