Policy Claims and Benefits

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Short-Duration Insurance and Deposit Contracts [Text Block]

Policy Claims and Benefits

Rollforward of Claims and Claim Adjustment Expenses

The liability for unpaid claims is reported in future policy benefits and other policy claims and benefits on the Company’s condensed consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):

	Three months ended March 31,
	2022		2021
Balance at beginning of year	$	8,053	$	7,556
Less: reinsurance recoverable	(556)		(641)
Net balance at beginning of year	7,497		6,915
Incurred:
Current year	3,438		4,097
Prior years	(82)		(59)
Total incurred	3,356		4,038
Payments:
Current year	(161)		(164)
Prior years	(3,051)		(3,196)
Total payments	(3,212)		(3,360)
Other changes:
Interest accretion	8		10
Foreign exchange adjustments	17		(51)
Total other changes	25		(41)
Net balance at end of period	7,666		7,552
Plus: reinsurance recoverable	567		732
Balance at end of period	$	8,233	$	8,284

Incurred claims associated with prior periods are primarily due to events, related to long-duration business, which were incurred in prior periods but were reported in the current period, and to a lesser extent, the development of short-duration business claims for prior years being different than were anticipated when the liabilities for unpaid claims were originally estimated.  These trends have been considered in establishing the current year liability for unpaid claims.