XML 63 R41.htm IDEA: XBRL DOCUMENT v3.20.4
Insurance and Contractholder Liabilities (Tables)
12 Months Ended
Dec. 31, 2020
Insurance Loss Reserves [Abstract]  
Summary of Insurance and Contractholder Liabilities, Activity in the Unpaid Claims Liability and Liability Details for Unpaid Claims and Claim Expenses
As of December 31, 2020 and December 31, 2019, the Company’s insurance and contractholder liabilities were comprised of the following:
December 31, 2020December 31, 2019
(In millions)CurrentNon-currentTotalCurrentNon-currentTotal
Contractholder deposit funds$350 $6,823 $7,173 $600 $7,139 $7,739 
Future policy benefits327 9,317 9,644 553 9,281 9,834 
Unearned premiums485 394 879 453 360 813 
Unpaid claims and claim expenses
U.S. Medical
3,166 18 3,184 2,875 17 2,892 
Other segments980 292 1,272 2,529 3,474 6,003 
Total7,010 20,271 27,281 
Insurance and contractholder liabilities classified as liabilities of business held for sale (1)
(2,089)(4,219)(6,308)
Total insurance and contractholder liabilities$5,308 $16,844 $22,152 $4,921 $16,052 $20,973 
(1)Amounts classified as Liabilities of business held for sale primarily include $4.9 billion of unpaid claims, $717 million of contractholder deposit funds and $653 million of future policy benefits as of December 31, 2019.
Activity, net of intercompany transactions, in the unpaid claims liability for the U.S. Medical segment for the years ended December 31 was as follows:
(In millions)202020192018
Beginning balance$2,892 $2,697 $2,420 
Less: Reinsurance and other amounts recoverable303 264 262 
Beginning balance, net2,589 2,433 2,158 
Acquired, net — 40 
Incurred costs related to:
Current year25,889 24,368 21,331 
Prior years(115)(165)(173)
Total incurred25,774 24,203 21,158 
Paid costs related to:
Current year23,005 21,851 18,978 
Prior years2,398 2,196 1,945 
Total paid25,403 24,047 20,923 
Ending balance, net2,960 2,589 2,433 
Add: Reinsurance and other amounts recoverable224 303 264 
Ending balance$3,184 $2,892 $2,697 
The liability details for unpaid claims and claim expenses for the years ended December 31 are as follows:
(In millions)
2020
2019 (1)
Group Disability and Other
Group Disability and Life$150 $4,972 
Other Operations159 187 
Total Group Disability and Other
309 5,159 
International Markets
963 844 
Unpaid claims and claim expenses Group Disability and Other and International Markets
$1,272 $6,003 
(1)Includes unpaid claim amounts classified as Liabilities of business held for sale, see Note 5.
Activity in the Company’s liabilities for unpaid claims and claim expenses, excluding Other Operations, are presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been fully reinsured.
(In millions)
2020
2019 (1)
2018
Beginning balance$5,816 $5,432 $5,274 
Less: Reinsurance184 156 140 
Beginning balance, net5,632 5,276 5,134 
Incurred claims related to:
Current year5,810 5,616 5,350 
Prior years:
Interest accretion154 152 156 
All other incurred19 (40)(147)
Total incurred5,983 5,728 5,359 
Paid claims related to:
Current year3,595 3,488 3,391 
Prior years2,015 1,873 1,808 
Total paid5,610 5,361 5,199 
Acquisitions — 23 
Foreign currency42 (11)(41)
Divestiture of Group Disability and Life business(5,093)— — 
Ending balance, net954 5,632 5,276 
Add: Reinsurance159 184 156 
Ending balance$1,113 $5,816 $5,432 
(1)Includes unpaid claims amounts classified as Liabilities of business held for sale.
Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses
Variances in incurred costs related to prior years’ unpaid claims and claim expenses that resulted from the differences between actual experience and the Company’s key assumptions for the years ended December 31 were as follows:
Year Ended
(Dollars in millions)December 31, 2020December 31, 2019
$
%(1)
$
%(2)
Actual completion factors$42 0.2 %$90 0.4 %
Medical cost trend73 0.3 75 0.4 
Total favorable variance$115 0.5 %$165 0.8 %
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2019.
(2)Percentage of current year incurred costs as reported for the year ended December 31, 2018.
Favorable prior year development in both years reflects lower than expected utilization of medical services.
Summary of Incurred and Paid Claims Development, Claims Frequency Metrics and Incurred but Not Yet Reported Liabilities
The following table depicts the incurred and paid claims development as of December 31, 2020 (net of reinsurance), claims frequency metrics and incurred but not reported liabilities reported in the U.S. Medical segment. The information about incurred and paid claims development for the year ended December 31, 2019 is presented as supplementary information and is unaudited.
 Incurred Costs  
Incurral Year2019
(Unaudited)
2020Unpaid Claims & Claim ExpensesClaims Frequency
(In millions)   
2019$23,306 $23,211 60 3.5  million
202024,927 2,764 3.7  million
Cumulative incurred costs for the periods presented$48,138   
 Cumulative Costs Paid  
Incurral Year2019
(Unaudited)
2020  
2019$20,920 $23,151   
202022,163   
Cumulative paid costs for the periods presented$45,314   
Outstanding liabilities for the periods presented, net of reinsurance$2,824   
Other long-duration liabilities not included in development table above136   
Net unpaid claims and claims expenses - U.S. Medical
2,960   
Reinsurance and other amounts recoverable224   
Unpaid claims and claim expenses - U.S. Medical
$3,184   
Details of Group Disability and Life Unpaid Claim Discounted Liability Balance
Details of the Company’s Group Disability and Life unpaid claim discounted liability balance as of December 31, 2019 were as follows:
(In billions)
2019 (1)
Discounted liabilities$4.5 
Aggregate amount of discount$1.2 
Range of discount rates4.0 % 5.2 %
(1)Includes unpaid claims amounts classified as Liabilities held for sale.