Insurance (Tables)

6 Months Ended

Jun. 30, 2020

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:



	June 30, 2020								December 31, 2019
	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)	$	59,965			$	22,146			$	64,506			$	24,036
Separate account value (1)	$	38,210			$	20,440			$	41,305			$	22,291
Net amount at risk (2)	$	2,199	(4	)	$	823	(5	)	$	1,572	(4	)	$	584	(5	)
Average attained age of contractholders	67 years				66 years				67 years				65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A				$	5,201			N/A				$	5,671
Net amount at risk	N/A				$	392	(6	)	N/A				$	408	(6	)
Average attained age of contractholders	N/A				51 years				N/A				51 years



	June 30, 2020				December 31, 2019
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	11,841	$	2,872	$	11,937	$	2,940
Net amount at risk (7)	$	82,915	$	14,021	$	86,221	$	14,500
Average attained age of policyholders	54 years		65 years		53 years		65 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 interim condensed 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.

Liabilities for Unpaid Claims and Claim Expenses

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



	Six Months Ended June 30,
	2020			2019
	(In millions)
Balance, beginning of period	$	19,216		$	17,788
Less: Reinsurance recoverables	2,377			2,332
Net balance, beginning of period	16,839			15,456
Incurred related to:
Current period	12,751			13,521
Prior periods (1)	170			78
Total incurred	12,921			13,599
Paid related to:
Current period	(8,214		)	(9,098		)
Prior periods	(4,375		)	(4,034		)
Total paid	(12,589		)	(13,132		)
Net balance, end of period	17,171			15,923
Add: Reinsurance recoverables	2,519			2,393
Balance, end of period (included in future policy benefits and other policy-related balances)	$	19,690		$	18,316

__________________

(1)

For both the six months ended June 30, 2020 and 2019, claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period.