INSURANCE LIABILITIES AND ANNUITY BENEFITS |
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INSURANCE LIABILITIES AND ANNUITY BENEFITS | NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS Insurance liabilities and annuity benefits comprise mainly obligations to annuitants and insureds in our run-off insurance activities.
(a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through Accumulated other comprehensive income (loss) in our consolidated Statement of Earnings (Loss). The decrease in insurance liabilities and annuity benefits of $1,586 million from December 31, 2019 to March 31, 2020, is primarily due to an adjustment of $1,604 million resulting from a decrease in unrealized gains on investment securities that would result in a premium deficiency should those gains be realized. Claim reserves included incurred claims of $507 million and $473 million, of which insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation for the three months ended March 31, 2020 and 2019, respectively. Paid claims were $405 million and $421 million in the three months ended March 31, 2020 and 2019, respectively. |