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Liability for Unpaid Claims and Claim Adjustment Expenses | 6 Months Ended
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Jun. 30, 2022
Insurance [Abstract] |
Liability for Unpaid Claims and Claims Adjustment Expenses Disclosure | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
| 2022 |  | 2021
| (in millions of dollars)
Balance at January 1 | $ | 23,664.7 |  |  | $ | 24,180.2 |
Less Reinsurance Recoverable | $ | 8,697.8 |  |  | $ | 8,378.9 |
Net Balance at January 1 | $ | 14,966.9 |  |  | $ | 15,801.3 |
Incurred Related to |  |  |
Current Year | $ | 3,525.6 |  |  | $ | 3,631.4 |
Prior Years |  |  |
Interest | $ | 317.8 |  |  | $ | 359.2 |
All Other Incurred | $ | (366.6) |  |  | $ | (236.4) |
Foreign Currency | $ | (220.4) |  |  | $ | 25.0 |
Total Incurred | $ | 3,256.4 |  |  | $ | 3,779.2 |
Paid Related to |  |  |
Current Year | $ | (1,248.2) |  |  | $ | (1,274.7) |
Prior Years | $ | (2,254.4) |  |  | $ | (2,243.7) |
Total Paid | $ | (3,502.6) |  |  | $ | (3,518.4) |
Reserves Ceded Pursuant to Reinsurance Transaction | $ | — |  |  | $ | (990.0) |
Net Balance at June 30 | $ | 14,720.7 |  |  | $ | 15,072.1 |
Plus Reinsurance Recoverable | $ | 8,372.3 |  |  | $ | 9,042.2 |
Balance at June 30 | $ | 23,093.0 |  |  | $ | 24,114.3 |
Certain prior year amounts were reclassified to conform to current year presentation. The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half of the period's claim payments relative to prior years at our average reserve discount rate for the respective periods. "Incurred Related to Prior Years - All Other Incurred" shown in the preceding chart reflects the current year development of the prior year unpaid claims and claim adjustment expenses. For 2021, this amount includes the increase in benefits and change in reserves for future benefits resulting from the realization of previously unrealized investment gains and losses as a result of the Closed Block individual disability reinsurance transaction, which impacts the comparability between the years presented. Excluding that adjustment, the variability exhibited year over year is primarily caused by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves, primarily in our Unum US group long-term disability and Closed Block long-term care product lines. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. Closed Block Individual Disability Reinsurance Transaction In connection with the second phase of the Closed Block individual disability reinsurance transaction that closed in March 2021, we recorded a reinsurance recoverable of $990.0 million representing the ceded reserves related to the cohort of policies on claim status as of January 1, 2021 and an increase in benefits and change in reserves for future benefits of $133.1 million resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income (loss). These impacts are reflected in the chart shown above and the reconciliation shown below. See Note 12 for further discussion regarding the total impacts of the Closed Block individual disability reinsurance transaction. Reconciliation A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
| June 30
| 2022 |  | 2021
| (in millions of dollars)
Policy and Contract Benefits | $ | 1,815.9 |  |  | $ | 1,890.4 |
Reserves for Future Policy and Contract Benefits | 43,088.0 |  |  | 48,952.0 |
Total | 44,903.9 |  |  | 50,842.4 |
Less: |  |  |
Life Reserves for Future Policy and Contract Benefits | 8,418.8 |  |  | 8,431.1 |
Accident and Health Active Life Reserves | 13,287.9 |  |  | 12,910.4 |
Adjustment Related to Unrealized Investment Gains and Losses | 104.2 |  |  | 5,386.6 |
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | 23,093.0 |  |  | $ | 24,114.3 |
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income (loss).

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI https://asc.fasb.org/subtopic&trid=2560295 + Details
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