Changes in Reserves for Future Policy Benefits



	Universal Life-Type Contracts
	GMDB/GMWB [1]			Life Secondary Guarantees		Traditional Annuity and Other Contracts [2]			Total Future Policy Benefits
Liability balance as of January 1, 2016	$	863		$	2,313	$	10,683		$	13,859
Less Shadow Reserve	—			—		(245		)	(245		)
Liability balance as of January 1, 2016, excluding shadow reserve	863			2,313		10,438			13,614
Incurred [3]	37			314		604			955
Paid	(114		)	—		(813		)	(927		)
Liability balance as of December 31, 2016, excluding shadow reserve	786			2,627		10,229			13,642
Add Shadow Reserve	—			—		287			287
Liability balance as of December 31, 2016	786			2,627		10,516			13,929
Reinsurance recoverable asset, as of January 1, 2016	523			2,313		1,478			4,314
Incurred [3]	—			314		(16		)	298
Paid	(91		)	—		(70		)	(161		)
Reinsurance recoverable asset, as of December 31, 2016	$	432		$	2,627	$	1,392		$	4,451



	Universal Life-Type Contracts
	GMDB/GMWB [1]			Life Secondary Guarantees		Traditional Annuity and Other Contracts [2]			Total Future Policy Benefits
Liability balance as of January 1, 2015	$	812		$	2,041	$	10,772		$	13,625
Less Shadow Reserve	—			—		(292		)	(292		)
Liability balance as of January 1, 2015, excluding shadow reserve	812			2,041		10,480			13,333
Incurred [3]	163			272		776			1,211
Paid	(112		)	—		(818		)	(930		)
Liability balance as of December 31, 2015, excluding shadow reserve	863			2,313		10,438			13,614
Add Shadow Reserve	—			—		245			245
Liability balance as of December 31, 2015	863			2,313		10,683			13,859
Reinsurance recoverable asset, as of January 1, 2015	481			2,041		1,412			3,934
Incurred [3]	131			272		147			550
Paid	(89		)	—		(81		)	(170		)
Reinsurance recoverable asset, as of December 31, 2015	$	523		$	2,313	$	1,478		$	4,314


[1]	These liability balances include all GMDB benefits, plus the life-contingent portion of GMWB benefits in excess of the return of the GRB. GMWB benefits that make up a shortfall between the account value and the GRB are embedded derivatives held at fair value and are excluded from these balances.


[2]	Represents life-contingent reserves for which the company is subject to insurance and investment risk.


[3]	Includes the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves.

Account Value by GMDB/GMWB Type



	As of December 31, 2016
Maximum Anniversary Value (“MAV”) [1]	Account Value (“AV”) [8]		Net Amount at Risk (“NAR”) [9]		Retained Net Amount at Risk (“RNAR”) [9]		Weighted Average Attained Age of Annuitant
MAV only	$	13,565	$	2,285	$	350	71
With 5% rollup [2]	1,156		187		60		71
With Earnings Protection Benefit Rider (“EPB”) [3]	3,436		464		75		70
With 5% rollup & EPB	467		102		22		73
Total MAV	18,624		3,038		507
Asset Protection Benefit (“APB”) [4]	10,438		172		114		69
Lifetime Income Benefit (“LIB”) – Death Benefit [5]	464		6		6		70
Reset [6] (5-7 years)	2,406		13		12		70
Return of Premium (“ROP”) [7]/Other	8,766		69		65		69
Subtotal Variable Annuity with GMDB/GMWB [10]	40,698		$	3,298	$	704	70
Less: General Account Value with GMDB/GMWB	3,773
Subtotal Separate Account Liabilities with GMDB	36,925
Separate Account Liabilities without GMDB	78,740
Total Separate Account Liabilities	$	115,665


[1]	MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 years (adjusted for withdrawals).


[2]	Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums.


[3]	EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net of withdrawals.


[4]	APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months).


[5]	LIB GMDB is the greatest of current AV; net premiums paid; or for certain contracts, a benefit amount generally based on market performance that ratchets over time.


[6]	Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 years (adjusted for withdrawals).


[7]	ROP GMDB is the greater of current AV or net premiums paid.


[8]	AV includes the contract holder’s investment in the separate account and the general account.


[9]	NAR is defined as the guaranteed benefit in excess of the current AV. RNAR represents NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity markets movements and increase when equity markets decline.


[10]	Some variable annuity contracts with GMDB also have a life-contingent GMWB that may provide for benefits in excess of the return of the GRB. Such contracts included in this amount have $6.4 billion of total account value and weighted average attained age of 72 years. There is no NAR or retained NAR related to these contracts.

Account Balance Breakdown of Variable Separate Account Investments for Contracts with Guarantees



Asset Type	As of December 31, 2016		As of December 31, 2015
Equity securities (including mutual funds)	$	33,880	$	36,970
Cash and cash equivalents	3,045		3,453
Total	$	36,925	$	40,423

As of December 31, 2016 and December 31, 2015, approximately 16% and 17%, respectively, of the equity securities (including mutual funds), in the preceding table were funds invested in fixed income securities and approximately 84% and 83%, respectively, were funds invested in equity securities.

For further information on guaranteed living benefits that are accounted for at fair value, such as GMWB, see Note 5 - Fair Value Measurements of Notes to Consolidated Financial Statements.