Policy Claims and Benefits

9 Months Ended

Sep. 30, 2021

Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Policy Claims and Benefits

Rollforward of Claims and Claim Adjustment Expenses

The liability for unpaid claims is reported in future policy benefits and other policy claims and benefits on the Company’s condensed consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):


	Nine Months Ended September 30,
	2021		2020
Balance, beginning of period	$	7,556	$	6,786
Less: reinsurance recoverable	(641)		(564)
Net balance, beginning of period	6,915		6,222
Incurred:
Current year	9,948		8,382
Prior years	(159)		162
Total incurred	9,789		8,544
Payments:
Current year	(3,712)		(3,394)
Prior years	(5,229)		(4,683)
Total payments	(8,941)		(8,077)
Other changes:
Interest accretion	30		27
Foreign exchange adjustments	(135)		(28)
Total other changes	(105)		(1)

Net balance, end of period	7,658		6,688
Plus: reinsurance recoverable	538		627
Balance, end of period	$	8,196	$	7,315

Incurred claims associated with prior periods are primarily due to events, related to long-duration business, which were incurred in prior periods but were reported in the current period, and to a lesser extent, the development of short-duration business claims for prior years being different than were anticipated when the liabilities for unpaid claims were originally estimated. These trends have been considered in establishing the current year liability for unpaid claims.