POLICY LIABILITIES

3 Months Ended

Mar. 31, 2017

Insurance Loss Reserves [Abstract]

POLICY LIABILITIES

POLICY LIABILITIES

Changes in the liability for unpaid policy claims were as follows for the three-month periods ended March 31:

(In millions)	2017				2016
Unpaid supplemental health claims, beginning of year		$	3,707			$	3,548
Less reinsurance recoverables		27				26
Net balance, beginning of year		3,680				3,522
Add claims incurred during the year related to:
Current year		1,737				1,705
Prior years		(111		)		(142		)
Total incurred		1,626				1,563
Less claims paid during the year on claims incurred during:
Current year		505				493
Prior years		1,055				1,046
Total paid		1,560				1,539
Effect of foreign exchange rate changes on unpaid claims		80				136
Net balance, end of period		3,826				3,682
Add reinsurance recoverables		29				28
Unpaid supplemental health claims, end of period		3,855				3,710
Unpaid life claims, end of period		375				280
Total liability for unpaid policy claims		$	4,230			$	3,990

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates, primarily in our lines of business in Japan.