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Liability for Policy and Contract Claims
 9 Months Ended
Sep. 30, 2019
Liability for Policy and Contract Claims
(7) Liability for Policy and Contract Claims
The following table sets forth changes in our liability for policy and contract claims as of the dates indicated:
                 
 
As of or for the nine
months ended
September 30,
  
(Amounts in millions)
  
2019
    
2018
  
Beginning balance
  $
10,295
     $
9,507
  
Less reinsurance recoverables
   
(2,379
 )    
(2,419
 )
                 
Net beginning balance
   
7,916
      
7,088
  
                 
Incurred related to insured events of:
   
     
 
Current year
   
2,865
     
2,768
  
Prior years
   
(237
)    
(238
 )
                 
Total incurred
   
2,628
     
2,530
  
                 
Paid related to insured events of:
   
     
 
Current year
   
(659
)    
(702
 )
Prior years
   
(1,794
)    
(1,738
 )
                 
Total paid
   
(2,453
)    
(2,440
 )
                 
Interest on liability for policy and contract claims
   
285
     
248
  
Foreign currency translation
   
(9
)    
(16
 )
                 
Net ending balance
   
8,367
     
7,410
  
Add reinsurance recoverables
   
2,413
     
2,352
  
                 
Ending balance
  $
10,780
    $
9,762
  
                 
 
 
 
 
 
 
The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and
adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity.
For the nine months ended September 30, 2019, the favorable development of $237 million related to insured events of prior years was primarily attributable to our long-term care insurance business from favorable development on prior year incurred but not reported claims and favorable claim terminations, including pending claims that terminate before becoming an active claim. The favorable development for the nine months ended September 30, 2019 was also related to our U.S. mortgage insurance business predominantly from an improvement in net cures and aging of existing delinquencies, including a favorable reserve adjustment of $9 million during the second quarter of 2019.
For the nine months ended September 30, 2018, the favorable development of $238 million related to insured events of prior years was primarily attributable to our long-term care insurance business from favorable claim terminations, including pending claims that terminate before becoming an active claim. The favorable development for the nine months ended September 30, 2018 was also impacted by our mortgage insurance businesses, primarily from an improvement in net cures and aging of existing claims, including a favorable reserve adjustment of $26 million in our U.S. mortgage insurance business during the second quarter of 2018.