Insurance

12 Months Ended

Dec. 31, 2018

Insurance [Abstract]

Insurance

4. Insurance

Insurance Liabilities

Insurance liabilities are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at:

	December 31,
	2018		2017
	(In millions)
U.S.	$	141,641	$	136,065
Asia	108,456		99,404
Latin America	16,131		16,758
EMEA	17,069		19,579
MetLife Holdings	102,371		103,372
Corporate & Other	1,334		829
Total	$	387,002	$	376,007

Future policy benefits are measured as follows:

Product Type:	Measurement Assumptions:
Participating life	Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7% for U.S. business and less than 1% to 14% for non-U.S. business and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for U.S. business.
Nonparticipating life	Aggregate of the present value of future expected benefit payments and related expenses less the present value of future expected net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 11% for U.S. business and less than 1% to 13% for non-U.S. business.
Individual and group traditional fixed annuities after annuitization	Present value of future expected payments. Interest rate assumptions used in establishing such liabilities range from 1% to 11% for U.S. business and less than 1% to 11% for non-U.S. business.
Non-medical health insurance	The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 1% to 7% (primarily related to U.S. business).
Disabled lives	Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8% for U.S. business and less than 1% to 9% for non-U.S. business.
Property and casualty insurance	The amount estimated for claims that have been reported but not settled and claims incurred but not reported are based upon the Company’s historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.

Participating business represented 3% of the Company’s life insurance in-force at both December 31, 2018 and 2017. Participating policies represented 14%, 15% and 16% of gross traditional life insurance premiums for the years ended December 31, 2018, 2017 and 2016, respectively.

Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments and investment performance; (ii) credited interest, ranging from less than 1% to 13% for U.S. business and less than 1% to 15% for non-U.S. business, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations.

Guarantees

The Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include:

Guarantee:			Measurement Assumptions:
GMDBs	•	A return of purchase payment upon death even if the account value is reduced to zero.	•	Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments.
	•	An enhanced death benefit may be available for an additional fee.	•	Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk.
			•	Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index.
			•	Benefit assumptions are based on the average benefits payable over a range of scenarios.
GMIBs	•	After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount.	•	Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments.
	•	Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit.	•	Assumptions are consistent with those used for estimating GMDB liabilities.
			•	Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder.
GMWBs	•	A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit.	•	Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities.
	•	Certain contracts include guaranteed withdrawals that are life contingent.

The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.

Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows:

	Annuity Contracts						Universal and Variable Life Contracts
	GMDBs and GMWBs			GMIBs			Secondary Guarantees			Paid-Up Guarantees		Total
	(In millions)
Direct and Assumed:
Balance at January 1, 2016	$	364		$	524		$	2,726		$	306	$	3,920
Incurred guaranteed benefits (1)	102			78			291			25		496
Paid guaranteed benefits	(15		)	(1		)	(28		)	—		(44		)
Balance at December 31, 2016	451			601			2,989			331		4,372
Incurred guaranteed benefits (1)	91			121			233			16		461
Paid guaranteed benefits	(14		)	(2		)	(34		)	—		(50		)
Balance at December 31, 2017	528			720			3,188			347		4,783
Incurred guaranteed benefits (1)	(78		)	178			291			12		403
Paid guaranteed benefits	(22		)	—			(37		)	—		(59		)
Balance at December 31, 2018	$	428		$	898		$	3,442		$	359	$	5,127
Ceded:
Balance at January 1, 2016	$	19		$	6		$	218		$	214	$	457
Incurred guaranteed benefits	—			(1		)	(27		)	17		(11		)
Paid guaranteed benefits	5			—			—			—		5
Balance at December 31, 2016	24			5			191			231		451
Incurred guaranteed benefits	4			1			50			11		66
Paid guaranteed benefits	6			—			—			—		6
Balance at December 31, 2017	34			6			241			242		523
Incurred guaranteed benefits	(38		)	4			28			9		3
Paid guaranteed benefits	4			—			—			—		4
Balance at December 31, 2018	$	—		$	10		$	269		$	251	$	530
Net:
Balance at January 1, 2016	$	345		$	518		$	2,508		$	92	$	3,463
Incurred guaranteed benefits	102			79			318			8		507
Paid guaranteed benefits	(20		)	(1		)	(28		)	—		(49		)
Balance at December 31, 2016	427			596			2,798			100		3,921
Incurred guaranteed benefits	87			120			183			5		395
Paid guaranteed benefits	(20		)	(2		)	(34		)	—		(56		)
Balance at December 31, 2017	494			714			2,947			105		4,260
Incurred guaranteed benefits	(40		)	174			263			3		400
Paid guaranteed benefits	(26		)	—			(37		)	—		(63		)
Balance at December 31, 2018	$	428		$	888		$	3,173		$	108	$	4,597

__________________

(1) Secondary guarantees include the effects of foreign currency translation of $62 million, $78 million and $119 million at December 31, 2018, 2017 and 2016, respectively.

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:

	December 31,
	2018							2017
	In the Event of Death			At Annuitization				In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	56,235		$	21,628			$	66,724		$	26,223
Separate account value (1)	$	37,342		$	19,839			$	45,431		$	24,336
Net amount at risk (2)	$	2,768	(4)	$	483	(5)		$	1,238	(4)	$	525	(5)
Average attained age of contractholders	66 years			65 years				65 years			65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	1,272			N/A			$	1,424
Net amount at risk	N/A			$	489	(6	)	N/A			$	569	(6)
Average attained age of contractholders	N/A			50 years				N/A			50 years

	December 31,
	2018				2017
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	8,943	$	3,070	$	9,036	$	3,207
Net amount at risk (7)	$	64,154	$	15,539	$	66,956	$	16,615
Average attained age of policyholders	57 years		64 years		56 years		63 years

__________________

(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2) Includes amounts, which are not reported on the consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(3) Includes the contractholder’s investments in the general account and separate account, if applicable.

(4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Account balances of contracts with guarantees were invested in separate account asset classes as follows at:

	December 31,
	2018		2017
	(In millions)
Fund Groupings:
Equity	$	19,579	$	23,213
Balanced	17,073		20,859
Bond	5,299		5,983
Money Market	277		252
Total	$	42,228	$	50,307

Obligations Under Funding Agreements

The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain unconsolidated special purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2018, 2017 and 2016, the Company issued $41.8 billion, $42.7 billion and $39.7 billion, respectively, and repaid $43.7 billion, $41.4 billion and $38.5 billion, respectively, of such funding agreements. At December 31, 2018 and 2017, liabilities for funding agreements outstanding, which are included in policyholder account balances, were $32.3 billion and $34.2 billion, respectively.

Certain of the Company’s subsidiaries are members of FHLBanks. Holdings of common stock of FHLBanks, included in other invested assets, were as follows at:

	December 31,
	2018		2017
	(In millions)
FHLB of New York	$	724	$	733
FHLB of Des Moines	$	17	$	35
FHLB of Pittsburgh	$	19	$	11

Such subsidiaries have also entered into funding agreements with FHLBanks and a subsidiary of the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in policyholder account balances. Information related to such funding agreements was as follows at:

	Liability				Collateral
	December 31,
	2018		2017		2018			2017
	(In millions)
FHLB of New York (1)	$	14,245	$	14,445	$	16,557	(2)	$	16,605	(2)
Farmer Mac (3)	$	2,550	$	2,550	$	2,639		$	2,644
FHLB of Des Moines (1)	$	425	$	625	$	709	(2)	$	701	(2)
FHLB of Pittsburgh (1)	$	450	$	250	$	590	(2)	$	311	(2)

__________________

(1) Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certain assets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under advances evidenced by funding agreements. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custody of such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by such subsidiary, the applicable FHLBank’s recovery on the collateral is limited to the amount of such subsidiary’s liability to such FHLBank.

(2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.

(3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac. The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.

Liabilities for Unpaid Claims and Claim Expenses

The following is information about incurred and paid claims development by segment as of December 31, 2018. Such amounts are presented net of reinsurance, and are not discounted. The tables present claims development and cumulative claim payments by incurral year. The development tables are only presented for significant short-duration product liabilities within each segment. Where practical, up to 10 years of history has been provided. In order to eliminate potential fluctuations related to foreign exchange rates, liabilities and payments denominated in a foreign currency have been translated using the 2018 year end spot rates for all periods presented. The information about incurred and paid claims development prior to 2016 is presented as supplementary information.

U.S.

Group Life - Term

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																	At December 31, 2018
	For the Years Ended December 31,																	Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2011	$	6,318	$	6,290	$	6,293	$	6,269	$	6,287	$	6,295	$	6,294	$	6,295		$	1	207,608
2012			6,503		6,579		6,569		6,546		6,568		6,569		6,569			1		209,047
2013					6,637		6,713		6,719		6,720		6,730		6,720			3		211,341
2014							6,986		6,919		6,913		6,910		6,914			5		213,388
2015									7,040		7,015		7,014		7,021			11		213,243
2016											7,125		7,085		7,095			14		210,706
2017													7,432		7,418			31		246,364
2018															7,757			899		203,329
Total															55,789
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance															(53,786		)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance															9
Total unpaid claims and claim adjustment expenses, net of reinsurance															$	2,012

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2011	$	4,982	$	6,194	$	6,239	$	6,256	$	6,281	$	6,290	$	6,292	$	6,295
2012			5,132		6,472		6,518		6,532		6,558		6,565		6,566
2013					5,216		6,614		6,664		6,678		6,711		6,715
2014							5,428		6,809		6,858		6,869		6,902
2015									5,524		6,913		6,958		6,974
2016											5,582		6,980		7,034
2017													5,761		7,292
2018															6,008
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance															$	53,786

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8
Group Life - Term	78.2%	20.2%	0.7%	0.2%	0.4%	0.1%	—%	—%

Group Long-Term Disability

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																	At December 31, 2018
	For the Years Ended December 31,																	Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2011	$	955	$	916	$	894	$	914	$	924	$	923	$	918	$	917		$	—	21,643
2012			966		979		980		1,014		1,034		1,037		1,021			—		20,085
2013					1,008		1,027		1,032		1,049		1,070		1,069			—		21,135
2014							1,076		1,077		1,079		1,101		1,109			—		22,846
2015									1,082		1,105		1,093		1,100			—		21,177
2016											1,131		1,139		1,159			6		17,897
2017													1,244		1,202			29		15,968
2018															1,240			621		8,208
Total															8,817
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance															(3,815		)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance															2,110
Total unpaid claims and claim adjustment expenses, net of reinsurance															$	7,112

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2011	$	44	$	217	$	337	$	411	$	478	$	537	$	588	$	635
2012			43		229		365		453		524		591		648
2013					43		234		382		475		551		622
2014							51		266		428		526		609
2015									50		264		427		524
2016											49		267		433
2017													56		290
2018															54
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance															$	3,815

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8
Group Long-Term Disability	4.4%	18.9%	14.0%	8.6%	7.2%	6.5%	5.6%	5.1%

Significant Methodologies and Assumptions

Group Life - Term and Group Long-Term Disability incurred but not paid (“IBNP”) liabilities are developed using a combination of loss ratio and development methods. Claims in the course of settlement are then subtracted from the IBNP liabilities, resulting in the IBNR liabilities. The loss ratio method is used in the period in which the claims are neither sufficient nor credible. In developing the loss ratios, any material rate increases that could change the underlying premium without affecting the estimated incurred losses are taken into account. For periods where sufficient and credible claim data exists, the development method is used based on the claim triangles which categorize claims according to both the period in which they were incurred and the period in which they were paid, adjudicated or reported. The end result is a triangle of known data that is used to develop known completion ratios and factors. Claims paid are then subtracted from the estimated ultimate incurred claims to calculate the IBNP liability.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims (IBNR and pending). This is expressed as a percentage of the underlying claims liability and is based on past experience and the anticipated future expense structure.

For Group Life - Term and Group Long-Term Disability, first year incurred claims and allocated loss adjustment expenses increased in 2018 compared to the 2017 incurral year due to the growth in the size of the business.

There were no significant changes in methodologies during 2018. The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Life - Term and Group Long-Term Disability are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for Group Life - Term unpaid claims and claim adjustment expenses are not discounted.

The liabilities for Group Long-Term Disability unpaid claims and claim adjustment expenses were $6.0 billionat both December 31, 2018 and 2017. Using interest rates ranging from 3% to 8%, based on the incurral year, the total discount applied to these liabilities was $1.3 billionat both December 31, 2018 and 2017. The amount of interest accretion recognized was $509 million, $510 million and $565 million for the years ended December 31, 2018, 2017 and 2016, respectively. These amounts were reflected in policyholder benefits and claims.

For Group Life - Term, claims were based upon individual death claims. For Group Long-Term Disability, claim frequency was determined by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts initially include claims that do not ultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability.

The Group Long-Term Disability IBNR included in the development tables above was developed using discounted cash flows, and is presented on a discounted basis.

Property & Casualty - Auto Liability

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																					At December 31, 2018
	For the Years Ended December 31,																					Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2009	$	862	$	877	$	853	$	826	$	823	$	817	$	815	$	815	$	814	$	814		$	—	204,751
2010			863		873		853		847		833		826		825		822		823			—		204,481
2011					863		876		869		855		846		843		843		842			1		204,974
2012							882		881		869		851		846		847		846			1		199,362
2013									911		900		882		878		876		876			3		204,367
2014											897		910		913		910		911			6		207,572
2015													975		984		979		980			14		212,693
2016															1,012		1,002		997			36		210,627
2017																	957		960			64		190,601
2018																			938			166		167,521
Total																			8,987
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(7,854		)
All outstanding liabilities for incurral years prior to 2009, net of reinsurance																			27
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	1,160

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2009	$	321	$	563	$	681	$	755	$	789	$	803	$	810	$	813	$	813	$	814
2010			319		572		695		762		796		810		816		818		820
2011					324		590		711		777		810		825		831		835
2012							333		600		715		783		815		831		840
2013									346		618		743		809		843		859
2014											352		648		777		844		884
2015													384		691		822		903
2016															396		702		842
2017																	379		686
2018																			371
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	7,854

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Auto Liability	39.2%	31.2%	14.2%	8.0%	4.0%	1.8%	0.9%	0.4%	0.1%	—%

Property & Casualty - Home

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																					At December 31, 2018
	For the Years Ended December 31,																					Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2009	$	506	$	523	$	510	$	507	$	503	$	501	$	498	$	497	$	497	$	497		$	—	106,620
2010			573		589		587		584		582		581		580		579		579			—		115,517
2011					891		868		843		840		835		835		834		833			—		166,461
2012							714		713		703		698		696		694		693			2		146,545
2013									654		652		635		635		634		632			1		107,548
2014											707		702		704		705		701			3		113,649
2015													759		753		752		746			4		107,211
2016															740		743		743			14		107,128
2017																	747		763			19		115,043
2018																			671			67		91,726
Total																			6,858
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(6,634		)
All outstanding liabilities for incurral years prior to 2009, net of reinsurance																			1
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	225

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2009	$	385	$	476	$	486	$	492	$	495	$	495	$	496	$	496	$	496	$	496
2010			436		546		562		571		574		577		578		578		579
2011					690		804		819		825		827		830		832		833
2012							559		668		681		687		689		690		690
2013									505		604		618		626		628		629
2014											574		670		685		692		695
2015													603		717		731		736
2016															593		704		720
2017																	610		727
2018																			529
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	6,634

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Home	79.8%	15.7%	2.1%	1.0%	0.4%	0.2%	0.2%	—%	—%	0.1%

Significant Methodologies and Assumptions

The liability for unpaid claim and claim adjustment expenses for the Property & Casualty business is determined by examining the historical claims and allocated claim adjustment expenses data. This data, which is gross of salvage and subrogation, is classified by incurral year and coverage and includes paid claims data and reported liabilities. For homeowners and auto liability injury claims, the reported liabilities are set by the Company’s claims adjusters based on the individual case, and a supplemental liability is added based on the historical development of reported claims. These supplemental liabilities are estimated by coverage based on adjusted report year data triangles to determine the estimated ultimate claim liability. Adjustments are made for settlement rates and average case liabilities. For auto non-injury claims, the Company holds an average statistical liability for every reported claim. This statistical liability is based on an estimated average payment that varies by coverage, report year and state. These average estimated payments are updated monthly.

For all property and casualty coverages, many actuarial methods such as adjusted loss development (adjusted for settlement rates and average case liabilities) and loss ratio methods are employed to develop a best estimate of the IBNR for each coverage type. Similar actuarial methods are used to determine the best estimate of the expected salvage and subrogation; methods that look at recoveries by age and ratios of recoveries to paid loss are compared for each coverage. A liability for unpaid allocated claim adjustment expenses is held for the future claim adjustment costs associated with the payment of incurred but not yet paid claims. This liability is calculated as a percentage of the underlying unpaid claims liability. The percentage is based on historical ratios of essential claim department expenses compared with paid losses.

There were no significant changes in methodologies or assumptions during 2018. The assumptions used in calculating the unpaid claims and claim adjustment expenses for Property & Casualty - Auto Liability and Property & Casualty - Home are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

The cumulative number of reported claims for auto liability coverages are counted by individual coverages (i.e. bodily injury and property damage) and, if multiple occupants are injured, then each injury is counted as a separate claim. For home coverages, each exposure is counted separately, so a house fire would, for example, have separate claim counts for the building, the contents, and additional living expenses. Claim counts include claims that do not ultimately result in a liability. Any liability established upon receipt of these claims would subsequently be reversed.

Asia

Group Disability & Group Life

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																			At December 31, 2018
	For the Years Ended December 31,																			Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2010		2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2010	$	74	$	70	$	75	$	96	$	96	$	93	$	122	$	130	$	121		$	9	2,781
2011			58		61		80		80		84		112		119		116			16		2,985
2012					88		94		92		106		107		110		120			18		4,434
2013							134		135		157		152		151		159			12		5,064
2014									267		251		230		231		242			38		5,890
2015											252		240		244		238			50		5,606
2016													211		214		202			63		3,499
2017															273		254			90		3,382
2018																	333			178		2,122
Total																	1,785
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																	(1,223		)
All outstanding liabilities for incurral years prior to 2010, net of reinsurance																	16
Total unpaid claims and claim adjustment expenses, net of reinsurance																	$	578

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2010		2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2010	$	18	$	36	$	48	$	58	$	71	$	80	$	102	$	108	$	113
2011			12		36		49		60		73		92		98		100
2012					27		58		77		89		96		101		102
2013							39		89		109		123		134		147
2014									62		130		162		182		204
2015											73		139		173		187
2016													59		122		139
2017															80		144
2018																	87
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																	$	1,223

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9
Group Disability & Group Life	23.9%	25.2%	12.2%	8.9%	8.9%	8.8%	8.3%	3.9%	3.8%

Significant Methodologies and Assumptions

This business line consists of employer sponsored and industry sponsored Group Life and Group Disability risks.

For Group Life, the IBNR liability is determined by using the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. A pending liability is also calculated for claims that have been reported but have not been paid. A claim eligibility ratio based on past experience is applied to the face amount of individual claims.

For Group Disability, the IBNR liability is calculated by applying a percentage to premiums in-force based on the expected delay as evidenced by the experience in the portfolio. This is then allocated back into different incurral years based on an assumed run-off. A claims in course of payment liability is also calculated for claims that have been admitted and are in the course of payment. The assumptions employed are based on economic conditions and industry experience, as adjusted for the Company’s own experience.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims. This is expressed as a percentage of the underlying claims liability and is based on past experience and the future expense structure.

There werenosignificant changes in methodologies during2018.The assumptions used in calculating the unpaid claims and claim adjustment expenses for Group Disability and Group Life are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

The liabilities for unpaid claims and claim adjustment expenses were $733 million and $756 million at December 31, 2018 and 2017, respectively. These amounts were discounted using interest rates ranging from 3% to 7%, based on the incurral year. The total discount applied to these liabilities was $61 million and $57 million at December 31, 2018 and 2017, respectively. The amount of interest accretion recognized was $19 million, $26 million and $22 million for the years ended December 31, 2018, 2017 and 2016, respectively. These amounts were reflected in policyholder benefits and claims.

The Company tracks claim frequency by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts include claims that do not ultimately result in a liability. A liability is only established for those claims that are expected to result in a liability, based on historical factors.

Latin America

Protection Life

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																					At December 31, 2018
	For the Years Ended December 31,																					Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2009	$	229	$	309	$	314	$	315	$	315	$	315	$	315	$	315	$	317	$	320		$	—	30,643
2010			251		323		330		331		331		331		331		332		334			—		32,102
2011					141		218		224		225		226		226		222		226			—		26,146
2012							150		204		209		210		211		209		211			—		26,105
2013									166		232		239		240		239		242			—		29,581
2014											242		366		377		346		350			—		38,071
2015													316		451		422		428			1		43,426
2016															340		437		448			3		37,555
2017																	351		345			16		30,116
2018																			328			119		21,926
Total																			3,232
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(2,933		)
All outstanding liabilities for incurral years prior to 2009, net of reinsurance																			9
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	308

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2009	$	227	$	302	$	306	$	307	$	307	$	307	$	307	$	307	$	311	$	312
2010			231		301		308		309		309		309		309		311		312
2011					139		213		220		220		221		221		222		222
2012							149		201		206		207		208		207		208
2013									162		225		230		230		230		232
2014											216		322		327		331		335
2015													259		363		386		394
2016															235		420		440
2017																	206		312
2018																			166
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	2,933

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Protection Life	62.4%	28.4%	2.7%	0.7%	0.2%	0.1%	0.2%	0.3%	0.7%	0.3%

Protection Health

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																					At December 31, 2018
	For the Years Ended December 31,																					Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(Dollars in millions)
2009	$	152	$	170	$	172	$	172	$	173	$	173	$	173	$	173	$	175	$	175		$	—	92,576
2010			179		200		201		202		202		202		203		206		206			—		96,334
2011					215		239		240		241		242		242		239		239			—		106,023
2012							208		233		235		236		236		234		235			—		99,576
2013									225		254		255		256		253		253			—		103,132
2014											233		260		262		260		259			—		96,296
2015													201		228		229		228			1		84,767
2016															263		303		300			2		102,167
2017																	381		355			4		113,183
2018																			407			30		101,992
Total																			2,657
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(2,588		)
All outstanding liabilities for incurral years prior to 2009, net of reinsurance																			4
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	73

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(In millions)
2009	$	152	$	170	$	172	$	172	$	173	$	173	$	173	$	173	$	175	$	175
2010			179		200		201		202		202		202		203		205		206
2011					215		239		240		241		242		242		239		239
2012							208		233		235		236		236		235		235
2013									225		254		255		256		253		253
2014											231		258		260		256		256
2015													200		228		227		227
2016															247		296		298
2017																	310		350
2018																			349
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	2,588

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Protection Health	87.3%	11.3%	0.6%	—%	—%	—%	(0.3)%	0.5%	0.7%	0.1%

Significant Methodologies and Assumptions

The Latin America segment establishes liabilities for unpaid losses, which are equal to the accumulation of unpaid reported claims, plus an estimate for claims IBNR.

In general terms, for both the Protection Life and Protection Health products, the methodology for IBNR is a weighted loss ratio combined with the Bornhuetter-Ferguson Method. The factors are derived by examining the experience of historical claims. In the initial months, the credibility is higher on premiums and lower on claims. As the premiums are earned, the credibility grows for the factors. For one major medical Protection Health product, a different methodology is employed, which estimates the IBNR based on a percentage of policy cancellations and the accrued premium.

For Protection Health products, claim duration can be very long due to the multiple incidences over time that may occur for a single claim. The number of claims reported per year is based on the original claim occurrence date for each individual claim. Any subsequent claims that are considered part of the original claim occurrence are not counted as a new claim. For Protection Life products, claims are based upon individual death claims.

There were no significant changes in methodologies or assumptions during 2018. The assumptions used in calculating the unpaid claims and claim adjustment expenses for Protection Life and Protection Health are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

For Protection Life and Protection Health products, claim counts initially include claims that do not ultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability.

Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses

The reconciliation of the net incurred and paid claims development tables to the liability for unpaid claims and claims adjustment expenses on the consolidated balance sheet was as follows at:

	December 31, 2018
	(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term	$	2,012
Group Long-Term Disability	7,112
Property & Casualty - Auto	1,160
Property & Casualty - Home	225
Total			$	10,509
Asia - Group Disability & Group Life			578
Latin America:
Protection Life	308
Protection Health	73
Total			381
Other insurance lines - all segments combined			1,107
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance			12,575
Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term	20
Group Long-Term Disability	109
Property & Casualty - Auto	66
Property & Casualty - Home	4
Total			199
Asia - Group Disability & Group Life			216
Latin America:
Protection Life	4
Protection Health	6
Total			10
Other insurance lines - all segments combined			353
Total reinsurance recoverable on unpaid claims			778
Total unpaid claims and allocated claims adjustment expense			13,353
Unallocated claims adjustment expenses			90
Discounting			(1,314		)
Liability for unpaid claims and claim adjustment liabilities - short-duration			12,129
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines			5,659
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances)			$	17,788

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

	Years Ended December 31,
	2018			2017			2016
	(In millions)
Balance at December 31 of prior period	$	17,094		$	16,157		$	9,669
Less: Reinsurance recoverables	2,198			1,968			476
Net balance at December 31 of prior period	14,896			14,189			9,193
Cumulative adjustment (1)	—			—			4,819
Net balance at January 1,	14,896			14,189			14,012
Incurred related to:
Current year	24,571			24,370			24,011
Prior years (2)	454			133			382
Total incurred	25,025			24,503			24,393
Paid related to:
Current year	(18,757		)	(18,525		)	(18,696		)
Prior years	(5,708		)	(5,271		)	(5,520		)
Total paid	(24,465		)	(23,796		)	(24,216		)
Net balance at December 31,	15,456			14,896			14,189
Add: Reinsurance recoverables	2,332			2,198			1,968
Balance at December 31,	$	17,788		$	17,094		$	16,157

__________________

(1) Reflects the accumulated adjustment, net of reinsurance, upon implementation of the short-duration contracts guidance which clarified the requirement to include claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented.

(2) During 2018 and 2017, claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported during current year. During 2016, claims and claim adjustment expenses associated with prior years increased due to the implementation of guidance related to short-duration contracts.

Separate Accounts

Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $129.2 billion and $148.2 billion at December 31, 2018 and 2017, respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $46.4 billion and $56.8 billion at December 31, 2018 and 2017, respectively. The latter category consisted primarily of guaranteed interest contracts (“GICs”). The average interest rate credited on these contracts was 2.60% and 2.34% at December 31, 2018 and 2017, respectively.

For the years ended December 31, 2018, 2017 and 2016, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts.