XML 65 R50.htm IDEA: XBRL DOCUMENT
v3.20.4

Policy Claims and Benefits (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Insurance [Abstract] |
Short-duration Insurance Contracts, Claims Development [Table Text Block] |
U.S. and Latin America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | As of
(dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, 2020
Incurred Claims and Allocated Claim Adjustments, Net of Reinsurance (1) |  | Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year |  | For the Years Ended December 31, |
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |
2012 |  | $ | 323 |  |  | $ | 309 |  |  | $ | 297 |  |  | $ | 298 |  |  | $ | 299 |  |  | $ | 298 |  |  | $ | 297 |  |  | $ | 297 |  |  | $ | 296 |  |  | $ | — |
2013 |  |  |  | 349 |  |  | 333 |  |  | 339 |  |  | 337 |  |  | 336 |  |  | 336 |  |  | 337 |  |  | 335 |  |  | — |
2014 |  |  |  |  |  | 408 |  |  | 411 |  |  | 396 |  |  | 397 |  |  | 396 |  |  | 399 |  |  | 399 |  |  | — |
2015 |  |  |  |  |  |  |  | 460 |  |  | 461 |  |  | 465 |  |  | 462 |  |  | 462 |  |  | 463 |  |  | — |
2016 |  |  |  |  |  |  |  |  |  | 501 |  |  | 500 |  |  | 501 |  |  | 497 |  |  | 497 |  |  | — |
2017 |  |  |  |  |  |  |  |  |  |  |  | 485 |  |  | 514 |  |  | 509 |  |  | 504 |  |  | 3 |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  | 538 |  |  | 538 |  |  | 524 |  |  | 8 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 491 |  |  | 473 |  |  | 30 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 469 |  |  | 197 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 3,960 |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (1) |  |
Accident Year |  | For the Years Ended December 31, |  |
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  |
2012 |  | $ | 109 |  |  | $ | 222 |  |  | $ | 244 |  |  | $ | 252 |  |  | $ | 258 |  |  | $ | 264 |  |  | $ | 268 |  |  | $ | 272 |  |  | $ | 275 |  |  |
2013 |  |  |  | 114 |  |  | 249 |  |  | 277 |  |  | 286 |  |  | 292 |  |  | 297 |  |  | 302 |  |  | 305 |  |  |
2014 |  |  |  |  |  | 129 |  |  | 305 |  |  | 337 |  |  | 349 |  |  | 356 |  |  | 364 |  |  | 368 |  |  |
2015 |  |  |  |  |  |  |  | 146 |  |  | 361 |  |  | 407 |  |  | 422 |  |  | 431 |  |  | 437 |  |  |
2016 |  |  |  |  |  |  |  |  |  | 185 |  |  | 393 |  |  | 437 |  |  | 451 |  |  | 460 |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  | 190 |  |  | 403 |  |  | 448 |  |  | 462 |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  | 183 |  |  | 415 |  |  | 465 |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 180 |  |  | 372 |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 159 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 3,303 |  |  |
|  |  |  |  |  | All outstanding claims prior to 2012, net of reinsurance |  | 131 |  |  |
|  |  |  | Liabilities for claims and claim adjustment expense, net of reinsurance |  | $ | 788 |  |  |
(1)2012-2019 Unaudited.
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | As of
(dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, 2020
Incurred Claims and Allocated Claim Adjustments, Net of Reinsurance (1) |  | Total of Incurred-but-Not-Reported Liabilities Plus Expected Development on Reported Claims
Accident Year |  | For the Years Ended December 31, |
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |
2012 |  | $ | 227 |  |  | $ | 305 |  |  | $ | 309 |  |  | $ | 313 |  |  | $ | 321 |  |  | $ | 332 |  |  | $ | 338 |  |  | $ | 343 |  |  | $ | 345 |  |  | $ | 5 |
2013 |  |  |  | 320 |  |  | 342 |  |  | 332 |  |  | 329 |  |  | 343 |  |  | 358 |  |  | 361 |  |  | 359 |  |  | 7 |
2014 |  |  |  |  |  | 302 |  |  | 328 |  |  | 290 |  |  | 296 |  |  | 310 |  |  | 312 |  |  | 313 |  |  | 9 |
2015 |  |  |  |  |  |  |  | 304 |  |  | 281 |  |  | 273 |  |  | 292 |  |  | 291 |  |  | 292 |  |  | 14 |
2016 |  |  |  |  |  |  |  |  |  | 248 |  |  | 225 |  |  | 232 |  |  | 240 |  |  | 240 |  |  | 15 |
2017 |  |  |  |  |  |  |  |  |  |  |  | 232 |  |  | 234 |  |  | 234 |  |  | 237 |  |  | 21 |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  | 277 |  |  | 295 |  |  | 290 |  |  | 50 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 277 |  |  | 286 |  |  | 82 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 163 |  |  | 84 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 2,525 |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (1) |  |
Accident Year |  | For the Years Ended December 31, |  |
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  |
2012 |  | $ | 54 |  |  | $ | 148 |  |  | $ | 202 |  |  | $ | 243 |  |  | $ | 266 |  |  | $ | 284 |  |  | $ | 300 |  |  | $ | 310 |  |  | $ | 318 |  |  |
2013 |  |  |  | 54 |  |  | 157 |  |  | 229 |  |  | 258 |  |  | 285 |  |  | 309 |  |  | 322 |  |  | 332 |  |  |
2014 |  |  |  |  |  | 38 |  |  | 148 |  |  | 194 |  |  | 225 |  |  | 250 |  |  | 265 |  |  | 276 |  |  |
2015 |  |  |  |  |  |  |  | 53 |  |  | 129 |  |  | 183 |  |  | 221 |  |  | 242 |  |  | 255 |  |  |
2016 |  |  |  |  |  |  |  |  |  | 42 |  |  | 107 |  |  | 145 |  |  | 167 |  |  | 182 |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  | 39 |  |  | 95 |  |  | 126 |  |  | 149 |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  | 35 |  |  | 116 |  |  | 160 |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42 |  |  | 111 |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 26 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 1,809 |  |  |
|  |  |  |  |  | All outstanding claims prior to 2012, net of reinsurance |  | 90 |  |  |
|  |  |  |  |  | Liabilities for claims and claim adjustment expense, net of reinsurance |  | $ | 806 |  |  |
(1)2012-2019 Unaudited.
Short-duration Insurance Contracts, Schedule of Historical Claims Duration [Table Text Block] | The following is unaudited supplementary information about average historical claims duration as of December 31, 2020:
Average Annual Payout of Incurred Claims by Age, Net of Reinsurance
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9
U.S. and Latin America |  | 35.2 | % |  | 42.2 | % |  | 8.8 | % |  | 2.9 | % |  | 1.9 | % |  | 1.6 | % |  | 1.3 | % |  | 1.2 | % |  | 1.2 | %
Asia Pacific |  | 15.2 | % |  | 27.6 | % |  | 16.1 | % |  | 10.3 | % |  | 7.2 | % |  | 5.3 | % |  | 4.0 | % |  | 2.8 | % |  | 2.4 | %
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense in the consolidated balance sheet as of December 31, 2020, is as follows (dollars in millions):
| 2020
Liabilities for claims and claim adjustment expense, net of reinsurance: |
U.S. and Latin America | $ | 788 |
Asia Pacific | 806 |
Liabilities for claims and claim adjustment expense, net of reinsurance | 1,594 |
Adjustments to reconcile to total policy claims and future policy benefits: |
Reinsurance recoverable | 12 |
Effect of discounting | (120) |
Unallocated claims adjustment expense | 7 |
Total adjustments | (101) |
Other short-duration contracts: |
Canada | 90 |
Europe, Middle East and Africa | 587 |
Other | 277 |
Liability for unpaid claims and claim adjustment expense – short-duration | 2,447 |
Liability for unpaid claims and claim adjustment expense – long-duration | 5,109 |
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) | $ | 7,556 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The liability for unpaid claims is reported in future policy benefits and other policy-related balances within the Company’s consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):
|  | 2020 |  | 2019 |  | 2018
Balance at beginning of year |  | $ | 6,786 |  |  | $ | 6,585 |  |  | $ | 5,896 |
Less: reinsurance recoverable |  | (564) |  |  | (433) |  |  | (456) |
Net balance at beginning of year |  | 6,222 |  |  | 6,152 |  |  | 5,440 |
Incurred: |  |  |  |  |  |
Current year |  | 11,195 |  |  | 10,307 |  |  | 10,049 |
Prior years |  | 123 |  |  | 154 |  |  | 131 |
Total incurred |  | 11,318 |  |  | 10,461 |  |  | 10,180 |
Payments: |  |  |  |  |  |
Current year |  | (5,617) |  |  | (5,140) |  |  | (4,602) |
Prior years |  | (5,204) |  |  | (5,305) |  |  | (4,692) |
Total payments |  | (10,821) |  |  | (10,445) |  |  | (9,294) |
Other changes: |  |  |  |  |  |
Interest accretion |  | 36 |  |  | 33 |  |  | 25 |
Foreign exchange adjustments |  | 160 |  |  | 21 |  |  | (199) |
Total other changes |  | 196 |  |  | 54 |  |  | (174) |
Net balance at end of year |  | 6,915 |  |  | 6,222 |  |  | 6,152 |
Plus: reinsurance recoverable |  | 641 |  |  | 564 |  |  | 433 |
Balance at end of year |  | $ | 7,556 |  |  | $ | 6,786 |  |  | $ | 6,585 |

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
Name: | us-gaap_ScheduleOfLiabilityForUnpaidClaimsAndClaimsAdjustmentExpense
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of undiscounted information about claims development by accident year for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671311-158438 + Details
Name: | us-gaap_ShortdurationInsuranceContractsClaimsDevelopmentTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for the reconciliation of claims development to the liability for unpaid claims and claim adjustment expense for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671315-158438 + Details
Name: | us-gaap_ShortdurationInsuranceContractsReconciliationOfClaimsDevelopmentToLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of average annual percentage payout of incurred claims by age, after reinsurance, for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4G -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671329-158438 + Details
Name: | us-gaap_ShortdurationInsuranceContractsScheduleOfHistoricalClaimsDurationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration