XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Unpaid Claims and Claim Expense Short Duration Contracts | 12 Months Ended
--- | ---
Dec. 31, 2023
Insurance [Abstract] |
Short-Duration Insurance and Deposit Contracts [Text Block] | UNPAID CLAIMS AND CLAIM EXPENSE – SHORT DURATION CONTRACTS Liabilities for Unpaid Claims and Claim Expense The Company uses several actuarial methods to compute incurred-but-not reported liabilities. These methods use historical claim reporting patterns to develop a triangle of reported claim amounts. The claim triangle is then used to develop the ultimate claims amount and the incurred-but-not reported liabilities. Expected claim methods use exposure data such as premiums to develop the ultimate claim amount. The final method blends the estimates from the development and the expected claim methods. There were no significant changes in methodologies during 2023. The following tables provide information on incurred and paid claims development, net of retrocession, for short-duration reinsurance contracts for the Company’s U.S. and Latin America and Asia Pacific Traditional segments, which primarily relate to group life and health (including disability) business. The short-duration business for the Company’s other segments is immaterial. Liabilities for claims and claims adjustment expenses, net of reinsurance, equals total incurred claims less cumulative paid claims plus outstanding liabilities prior to 2014. The Company provides reinsurance on large quota share transactions. It is common industry practice for cedants to provide loss information on a bulk basis without comprehensive claim details. Additionally, a claim under aggregate stop loss coverage may be the result of thousands of claims, but the Company only pays the excess amount. Therefore, it is impractical to provide meaningful claim count detail by accident year in the tables shown below.
U.S. and Latin America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | As of
(dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, 2023
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, |
| 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |
2014 |  | $ | 408 |  |  | $ | 411 |  |  | $ | 396 |  |  | $ | 397 |  |  | $ | 396 |  |  | $ | 399 |  |  | $ | 399 |  |  | $ | 401 |  |  | $ | 401 |  |  | $ | 402 |  |  | $ | — |
2015 |  |  |  | 460 |  |  | 461 |  |  | 465 |  |  | 462 |  |  | 462 |  |  | 463 |  |  | 463 |  |  | 464 |  |  | 464 |  |  | — |
2016 |  |  |  |  |  | 501 |  |  | 500 |  |  | 501 |  |  | 497 |  |  | 497 |  |  | 498 |  |  | 499 |  |  | 500 |  |  | — |
2017 |  |  |  |  |  |  |  | 485 |  |  | 514 |  |  | 509 |  |  | 504 |  |  | 503 |  |  | 504 |  |  | 503 |  |  | — |
2018 |  |  |  |  |  |  |  |  |  | 538 |  |  | 538 |  |  | 524 |  |  | 517 |  |  | 520 |  |  | 519 |  |  | — |
2019 |  |  |  |  |  |  |  |  |  |  |  | 491 |  |  | 473 |  |  | 456 |  |  | 453 |  |  | 453 |  |  | 2 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 469 |  |  | 426 |  |  | 415 |  |  | 415 |  |  | 3 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 509 |  |  | 492 |  |  | 493 |  |  | 4 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 519 |  |  | 480 |  |  | 33 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 543 |  |  | 240 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 4,772 |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (1) |  |
Accident Year |  | For the Years Ended December 31, |  |
| 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2014 |  | $ | 129 |  |  | $ | 305 |  |  | $ | 337 |  |  | $ | 349 |  |  | $ | 356 |  |  | $ | 364 |  |  | $ | 368 |  |  | $ | 374 |  |  | $ | 378 |  |  | $ | 382 |  |  |
2015 |  |  |  | 146 |  |  | 361 |  |  | 407 |  |  | 422 |  |  | 431 |  |  | 437 |  |  | 441 |  |  | 446 |  |  | 450 |  |  |
2016 |  |  |  |  |  | 185 |  |  | 393 |  |  | 437 |  |  | 451 |  |  | 460 |  |  | 467 |  |  | 472 |  |  | 477 |  |  |
2017 |  |  |  |  |  |  |  | 190 |  |  | 403 |  |  | 448 |  |  | 462 |  |  | 468 |  |  | 474 |  |  | 478 |  |  |
2018 |  |  |  |  |  |  |  |  |  | 183 |  |  | 415 |  |  | 465 |  |  | 479 |  |  | 489 |  |  | 494 |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 180 |  |  | 372 |  |  | 418 |  |  | 428 |  |  | 432 |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 159 |  |  | 356 |  |  | 388 |  |  | 394 |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 177 |  |  | 414 |  |  | 454 |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 182 |  |  | 395 |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 179 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 4,135 |  |  |
|  |  |  |  |  | All outstanding claims prior to 2014, net of reinsurance |  | 110 |  |  |
|  |  |  | Liabilities for claims and claim adjustment expense, net of reinsurance |  | $ | 747 |  |  |
(1)2014 – 2022 unaudited.
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | As of
(dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 31, 2023
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, |
| 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |
2014 |  | $ | 267 |  |  | $ | 290 |  |  | $ | 257 |  |  | $ | 262 |  |  | $ | 275 |  |  | $ | 277 |  |  | $ | 277 |  |  | $ | 276 |  |  | $ | 275 |  |  | $ | 276 |  |  | $ | 3 |
2015 |  |  |  | 269 |  |  | 249 |  |  | 242 |  |  | 258 |  |  | 258 |  |  | 258 |  |  | 258 |  |  | 258 |  |  | 259 |  |  | 4 |
2016 |  |  |  |  |  | 220 |  |  | 199 |  |  | 206 |  |  | 213 |  |  | 212 |  |  | 209 |  |  | 210 |  |  | 211 |  |  | 3 |
2017 |  |  |  |  |  |  |  | 205 |  |  | 207 |  |  | 207 |  |  | 210 |  |  | 198 |  |  | 196 |  |  | 198 |  |  | 2 |
2018 |  |  |  |  |  |  |  |  |  | 245 |  |  | 262 |  |  | 256 |  |  | 245 |  |  | 239 |  |  | 239 |  |  | 4 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 245 |  |  | 253 |  |  | 260 |  |  | 251 |  |  | 253 |  |  | 8 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 145 |  |  | 141 |  |  | 142 |  |  | 145 |  |  | 14 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 67 |  |  | 61 |  |  | 61 |  |  | 7 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 93 |  |  | 96 |  |  | 21 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 131 |  |  | 76 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 1,869 |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance (1) |  |
Accident Year |  | For the Years Ended December 31, |  |
| 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
2014 |  | $ | 33 |  |  | $ | 131 |  |  | $ | 171 |  |  | $ | 199 |  |  | $ | 221 |  |  | $ | 234 |  |  | $ | 244 |  |  | $ | 251 |  |  | $ | 255 |  |  | $ | 259 |  |  |
2015 |  |  |  | 47 |  |  | 115 |  |  | 162 |  |  | 195 |  |  | 214 |  |  | 226 |  |  | 235 |  |  | 240 |  |  | 243 |  |  |
2016 |  |  |  |  |  | 37 |  |  | 94 |  |  | 129 |  |  | 148 |  |  | 161 |  |  | 172 |  |  | 180 |  |  | 187 |  |  |
2017 |  |  |  |  |  |  |  | 34 |  |  | 84 |  |  | 111 |  |  | 132 |  |  | 147 |  |  | 160 |  |  | 169 |  |  |
2018 |  |  |  |  |  |  |  |  |  | 31 |  |  | 103 |  |  | 142 |  |  | 171 |  |  | 191 |  |  | 206 |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  | 99 |  |  | 136 |  |  | 174 |  |  | 194 |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 22 |  |  | 53 |  |  | 80 |  |  | 95 |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8 |  |  | 23 |  |  | 34 |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  | 42 |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 1,451 |  |  |
|  |  |  |  |  | All outstanding claims prior to 2014, net of reinsurance |  | 91 |  |  |
|  |  |  |  |  | Liabilities for claims and claim adjustment expense, net of reinsurance |  | $ | 509 |  |  |
(1)2014 – 2022 unaudited. The following is unaudited supplementary information about average historical claims duration as of December 31, 2023:
Average Annual Payout of Incurred Claims by Age, Net of Reinsurance
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
U.S. and Latin America |  | 35.8 | % |  | 44.6 | % |  | 8.9 | % |  | 2.6 | % |  | 1.6 | % |  | 1.3 | % |  | 1.0 | % |  | 1.2 | % |  | 0.8 | % |  | 1.0 | %
Asia Pacific |  | 14.9 | % |  | 27.3 | % |  | 16.3 | % |  | 11.5 | % |  | 7.6 | % |  | 5.4 | % |  | 4.0 | % |  | 2.6 | % |  | 1.4 | % |  | 1.2 | %
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claims Adjustment Expenses 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, 2023, is as follows (dollars in millions):
| 2023
Liabilities for claims and claim adjustment expense, net of reinsurance: |
U.S. and Latin America | $ | 747 |
Asia Pacific | 509 |
Liabilities for claims and claim adjustment expense, net of reinsurance | 1,256 |
Adjustments to reconcile to total policy claims: |
Reinsurance recoverable | 11 |
Effect of discounting | (103) |
Unallocated claims adjustment expense | 9 |
Total adjustments | (83) |
Other short-duration contracts not included in the tables above: |
U.S. and Latin America | 221 |
Canada | 378 |
Europe, Middle East and Africa | 833 |
Asia Pacific | 119 |
Corporate and Other | 6 |
Total liability for unpaid claims and claim adjustment expense | $ | 2,730 |
Rollforward of Claims and Claim Adjustment Expenses The liability for unpaid claims is reported in other policy claims and benefits on the Company’s consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):
|  | 2023 |  | 2022
Balance, beginning of year |  | $ | 2,480 |  |  | $ | 2,110 |
Less: reinsurance recoverable |  | (57) |  |  | (81) |
Net balance, beginning of year |  | 2,423 |  |  | 2,029 |
Incurred: |  |  |  |
Current year |  | 1,561 |  |  | 1,778 |
Prior years |  | (111) |  |  | (125) |
Total incurred |  | 1,450 |  |  | 1,653 |
Payments: |  |  |  |
Current year |  | (473) |  |  | (440) |
Prior years |  | (804) |  |  | (800) |
Total payments |  | (1,277) |  |  | (1,240) |
Other changes: |  |  |  |
Interest accretion |  | 39 |  |  | 34 |
Foreign exchange adjustments |  | 15 |  |  | (53) |
Total other changes |  | 54 |  |  | (19) |
Net balance, end of period |  | 2,650 |  |  | 2,423 |
Plus: reinsurance recoverable |  | 80 |  |  | 57 |
Balance, end of period |  | $ | 2,730 |  |  | $ | 2,480 |
Incurred claims associated with prior periods are primarily due to the development of 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.

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 The entire disclosure for insurance products considered to be short-duration contracts because the contract provides insurance protection for a fixed period of short duration and enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided, and on contracts on which amounts are paid but insurance risk is not transferred. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944/tableOfContent + Details
Name: | us-gaap_ShortDurationInsuranceAndDepositContractsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration