Insurance

12 Months Ended

Dec. 31, 2020

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,
	2020		2019
	(In millions)
U.S.	$	162,524	$	150,327
Asia	126,912		118,027
Latin America	16,849		15,911
EMEA	17,252		16,951
MetLife Holdings	103,937		101,945
Corporate & Other	1,459		1,546
Total	$	428,933	$	404,707

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. businesses and less than 1% to 11% for non-U.S. businesses and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends for U.S. businesses.
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. businesses and less than 1% to 11% for non-U.S. businesses.
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. businesses and less than 1% to 9% for non-U.S. businesses.
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. businesses).
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. businesses and less than 1% to 9% for non-U.S. businesses.

Participating business represented 3% of the Company’s life insurance in-force at both December 31, 2020 and 2019. Participating policies represented 14%, 15% and 14% of gross traditional life insurance premiums for the years ended December 31, 2020, 2019 and 2018, 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 8% for U.S. businesses and less than 1% to 12% for non-U.S. businesses, 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, 2018	$	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
Incurred guaranteed benefits (1)	62		(3)		358		68		485
Paid guaranteed benefits	(25)		(1)		(38)		—		(64)
Balance at December 31, 2019	465		894		3,762		427		5,548
Incurred guaranteed benefits (1)	195		240		602		26		1,063
Paid guaranteed benefits	(21)		(5)		(99)		(45)		(170)
Balance at December 31, 2020	$	639	$	1,129	$	4,265	$	408	$	6,441
Ceded:
Balance at January 1, 2018	$	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
Incurred guaranteed benefits	(4)		—		80		30		106
Paid guaranteed benefits	4		—		—		—		4
Balance at December 31, 2019	—		10		349		281		640
Incurred guaranteed benefits	(11)		(3)		96		43		125
Paid guaranteed benefits	9		—		(18)		(32)		(41)
Balance at December 31, 2020	$	(2)	$	7	$	427	$	292	$	724
Net:
Balance at January 1, 2018	$	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
Incurred guaranteed benefits	66		(3)		278		38		379
Paid guaranteed benefits	(29)		(1)		(38)		—		(68)
Balance at December 31, 2019	465		884		3,413		146		4,908
Incurred guaranteed benefits	206		243		506		(17)		938
Paid guaranteed benefits	(30)		(5)		(81)		(13)		(129)
Balance at December 31, 2020	$	641	$	1,122	$	3,838	$	116	$	5,717

__________________

(1)Secondary guarantees include the effects of foreign currency translation of $125 million, $23 million and $62 million at December 31, 2020, 2019 and 2018, 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,
	2020						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)	$	65,044		$	24,170		$	64,506		$	24,036
Separate account value (1)	$	42,585		$	22,370		$	41,305		$	22,291
Net amount at risk (2)	$	1,579	(4)	$	614	(5)	$	1,572	(4)	$	584	(5)
Average attained age of contractholders	68 years			66 years			67 years			65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	6,030		N/A			$	5,671
Net amount at risk	N/A			$	459	(6)	N/A			$	408	(6)
Average attained age of contractholders	N/A			50 years			N/A			51 years

	December 31,
	2020				2019
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	13,426	$	2,808	$	11,937	$	2,940
Net amount at risk (7)	$	82,940	$	13,557	$	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 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.

Guarantees — Separate Accounts

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

	December 31,
	2020		2019
	(In millions)
Fund Groupings:
Equity	$	28,581	$	25,097
Balanced	18,385		19,014
Bond	5,567		5,565
Money Market	149		117
Total	$	52,682	$	49,793

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 that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. For the years ended December 31, 2020, 2019 and 2018, the Company issued $40.4 billion, $37.3 billion and $41.8 billion, respectively, and repaid $36.7 billion, $36.4 billion and $43.7 billion, respectively, of such funding agreements. At December 31, 2020 and 2019, liabilities for funding agreements outstanding, which are included in policyholder account balances, were $39.9 billion and $34.6 billion, respectively.

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

	December 31,
	2020		2019
	(In millions)
FHLB of New York	$	812	$	737
FHLB of Des Moines	$	2	$	4
FHLB of Pittsburgh	$	—	$	35

Certain subsidiaries have also entered into funding agreements with regional FHLBs 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,
	2020		2019		2020			2019
	(In millions)
FHLB of New York (1)	$	16,200	$	14,445	$	18,539	(2)	$	16,570	(2)
Farmer Mac (3)	$	2,375	$	2,550	$	2,450		$	2,670
FHLB of Des Moines (1)	$	50	$	100	$	72	(2)	$	141	(2)
FHLB of Pittsburgh (1)	$	—	$	775	$	—		$	895	(2)

__________________

(1)Represents funding agreements issued to the applicable regional FHLB in exchange for cash and for which such regional FHLB has been granted a lien on certain assets, some of which are in the custody of such regional FHLB, including residential mortgage-backed securities (“RMBS”), to collateralize obligations under such funding agreements. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custody of such regional FHLB 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 regional FHLB’s recovery on the collateral is limited to the amount of such subsidiary’s liability to such regional FHLB.

(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. 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 at December 31, 2020. 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 2020 year end spot rates for all periods presented. The information about incurred and paid claims development prior to 2020 is presented as supplementary information.

U.S.

Group Life - Term

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2020
	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		2019		2020
	(Dollars in millions)
2011	$	6,318	$	6,290	$	6,293	$	6,269	$	6,287	$	6,295	$	6,294	$	6,295	$	6,297	$	6,299	$	1	208,202
2012			6,503		6,579		6,569		6,546		6,568		6,569		6,569		6,572		6,574		1		209,960
2013					6,637		6,713		6,719		6,720		6,730		6,720		6,723		6,724		1		212,572
2014							6,986		6,919		6,913		6,910		6,914		6,919		6,920		3		215,388
2015									7,040		7,015		7,014		7,021		7,024		7,025		3		217,729
2016											7,125		7,085		7,095		7,104		7,105		6		218,487
2017													7,432		7,418		7,425		7,427		9		257,925
2018															7,757		7,655		7,646		14		242,815
2019																	7,935		7,900		23		239,317
2020																			8,913		757		206,427
Total																			72,533
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(70,179)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance																			18
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	2,372

	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		2019		2020
	(In millions)
2011	$	4,982	$	6,194	$	6,239	$	6,256	$	6,281	$	6,290	$	6,292	$	6,295	$	6,296	$	6,297
2012			5,132		6,472		6,518		6,532		6,558		6,565		6,566		6,569		6,572
2013					5,216		6,614		6,664		6,678		6,711		6,715		6,720		6,721
2014							5,428		6,809		6,858		6,869		6,902		6,912		6,915
2015									5,524		6,913		6,958		6,974		7,008		7,018
2016											5,582		6,980		7,034		7,053		7,086
2017													5,761		7,292		7,355		7,374
2018															6,008		7,521		7,578
2019																	6,178		7,756
2020																			6,862
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	70,179

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2020:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Life - Term	78.2%	20.0%	0.7%	0.2%	0.5%	0.1%	—%	—%	—%	—%

Group Long-Term Disability

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2020
	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		2019		2020
	(Dollars in millions)
2011	$	955	$	916	$	894	$	914	$	924	$	923	$	918	$	917	$	914	$	910	$	—	21,644
2012			966		979		980		1,014		1,034		1,037		1,021		1,015		1,011		—		20,086
2013					1,008		1,027		1,032		1,049		1,070		1,069		1,044		1,032		—		21,138
2014							1,076		1,077		1,079		1,101		1,109		1,098		1,097		—		22,852
2015									1,082		1,105		1,093		1,100		1,087		1,081		—		21,209
2016											1,131		1,139		1,159		1,162		1,139		—		17,967
2017													1,244		1,202		1,203		1,195		—		16,313
2018															1,240		1,175		1,163		7		15,135
2019																	1,277		1,212		33		15,044
2020																			1,253		630		8,387
Total																			11,093
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(5,657)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance																			1,543
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	6,979

	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		2019		2020
	(In millions)
2011	$	44	$	217	$	337	$	411	$	478	$	537	$	588	$	635	$	670	$	703
2012			43		229		365		453		524		591		648		694		730
2013					43		234		382		475		551		622		676		722
2014							51		266		428		526		609		677		732
2015									50		264		427		524		601		665
2016											49		267		433		548		628
2017													56		290		476		579
2018															54		314		497
2019																	57		342
2020																			59
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	5,657

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2020:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Long-Term Disability	4.6%	20.0%	14.6%	8.9%	7.2%	6.4%	5.4%	4.7%	3.7%	3.6%

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 2020 compared to the 2019 incurral year due to the growth in the size of the business.

There were no significant changes in methodologies for the year ended December 31, 2020. 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 billion at both December 31, 2020 and 2019. Using interest rates ranging from 3% to 8%, based on the incurral year, the total discount applied to these liabilities was $1.2 billion at both December 31, 2020 and 2019. The amount of interest accretion recognized was $452 million, $470 million and $509 million for the years ended December 31, 2020, 2019 and 2018, 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 incurred and paid claims disclosed for the Group Life - Term product includes activity related to the product’s continued protection feature; however, the associated actuarial reserve for future benefit obligations under this feature is excluded from the liability for unpaid claims.

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.

Asia

Group Disability & Group Life

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2020
	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		2019		2020
	(Dollars in millions)
2011	$	63	$	66	$	87	$	87	$	93	$	123	$	130	$	127	$	120	$	118	$	3	3,561
2012			96		103		101		117		117		121		132		125		124		5		5,586
2013					147		148		171		166		165		174		174		177		12		6,503
2014							292		275		252		253		265		260		261		25		6,706
2015									276		264		267		260		272		275		27		6,570
2016											231		235		221		236		239		32		4,472
2017													299		278		286		307		52		5,052
2018															365		333		347		110		5,097
2019																	394		369		175		4,530
2020																			438		341		2,429
Total																			2,655
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(1,874)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance																			11
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	792

	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		2019		2020
	(In millions)
2011	$	12	$	40	$	53	$	66	$	80	$	100	$	107	$	110	$	114	$	115
2012			30		64		84		97		105		110		112		115		119
2013					43		98		120		134		147		161		157		166
2014							69		142		177		199		224		225		237
2015									80		152		190		205		232		248
2016											65		133		152		190		206
2017													87		157		208		255
2018															96		176		237
2019																	106		194
2020																			97
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	1,874

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2020:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Group Disability & Group Life	24.8%	26.1%	13.6%	10.6%	8.6%	7.0%	2.5%	3.3%	3.3%	0.8%

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. The IBNR liability is then allocated back into different incurral years based on historical run-off patterns. As the benefit for this class of business is a regular series of payments, an additional reserve is required for the liability for ongoing benefit payments - claims in course of payment (“CICP”). The assumptions employed in the calculation of the CICP are 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 were no significant changes in methodologies for the year ended December 31, 2020. 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 $1.0 billion and $814 million at December 31, 2020 and 2019, respectively. These amounts were discounted using interest rates ranging from 1% to 7%, based on the incurral year. The total discount applied to these liabilities was $68 million and $52 million at December 31, 2020 and 2019, respectively. The amount of interest accretion recognized was $24 million, $20 million and $19 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020
	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		2019		2020
	(Dollars in millions)
2011	$	129	$	201	$	207	$	208	$	208	$	208	$	204	$	207	$	207	$	207	$	—	27,458
2012			138		187		191		193		193		191		192		193		195		—		27,645
2013					150		212		218		219		218		220		221		221		—		32,040
2014							226		345		354		323		326		327		328		—		40,796
2015									295		424		395		399		399		401		—		46,605
2016											313		409		420		427		428		—		40,431
2017													323		314		314		313		(1)		32,201
2018															300		290		288		1		30,565
2019																	325		297		10		32,072
2020																			490		201		26,643
Total																			3,168
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(2,772)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance																			8
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	404

	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		2019		2020
	(In millions)
2011	$	127	$	197	$	202	$	203	$	203	$	203	$	204	$	204	$	206	$	206
2012			136		184		188		190		190		189		190		192		192
2013					147		205		210		210		209		211		213		214
2014							201		301		306		309		313		315		316
2015									240		339		360		367		373		376
2016											221		395		414		421		424
2017													191		286		302		306
2018															151		257		268
2019																	169		257
2020																			213
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	2,772

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2020:

	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	58.4%	30.8%	3.4%	1.0%	0.5%	0.4%	0.6%	0.5%	0.5%	—%

Protection Health

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2020
	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		2019		2020
	(Dollars in millions)
2011	$	212	$	236	$	238	$	239	$	239	$	239	$	236	$	236	$	236	$	237	$	—	106,659
2012			205		230		232		233		233		232		232		232		232		—		100,420
2013					222		251		252		253		250		250		250		251		—		104,293
2014							231		257		259		257		256		255		256		—		97,855
2015									198		225		227		226		225		225		—		87,290
2016											260		299		296		297		297		1		106,170
2017													376		350		351		350		2		120,810
2018															403		423		401		4		143,040
2019																	134		175		9		127,651
2020																			486		44		103,841
Total																			2,910
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(2,808)
All outstanding liabilities for incurral years prior to 2011, net of reinsurance																			4
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	106

	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		2019		2020
	(In millions)
2011	$	212	$	236	$	238	$	238	$	239	$	239	$	236	$	236	$	236	$	237
2012			205		230		232		233		233		232		232		232		232
2013					222		251		252		253		250		250		250		250
2014							229		255		257		253		253		253		254
2015									198		225		224		225		225		225
2016											244		292		295		295		296
2017													307		346		348		349
2018															344		392		395
2019																	113		159
2020																			411
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	2,808

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2020:

	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	84.9%	13.4%	0.6%	—%	(0.1%)	(0.1)%	(0.2%)	—%	—%	0.4%

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 the Bornhuetter-Ferguson Method, with factors derived by examining the experience of historical claims. In the more recent incurral months, the credibility is higher on expected loss ratios and lower on claims calculated using the experience-derived factors. The credibility grows for the factors as incurral months become older.

For Protection Health products, claim duration can be very long due to the multiple incidences that may occur over time 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 for the year ended December 31, 2020. 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, 2020
	(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term	$	2,372
Group Long-Term Disability	6,979
Total			$	9,351
Asia - Group Disability & Group Life			792
Latin America:
Protection Life	404
Protection Health	106
Total			510
Other insurance lines - all segments combined			1,991
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance			12,644
Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term	12
Group Long-Term Disability	128
Total			140
Asia - Group Disability & Group Life			313
Latin America:
Protection Life	8
Protection Health	12
Total			20
Other insurance lines - all segments combined			437
Total reinsurance recoverable on unpaid claims			910
Total unpaid claims and allocated claims adjustment expense			13,554
Unallocated claims adjustment expenses			2
Discounting			(1,254)
Liability for unpaid claims and claim adjustment liabilities - short-duration			12,302
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines			6,289
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) (1)			$	18,591

__________________

(1)Excludes unpaid claims and allocated claims adjustment expense reclassified to liabilities held-for-sale. See Note 3 for information on the pending disposition of MetLife P&C.

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,
	2020		2019		2018
	(In millions)
Balance at January 1,	$	19,216	$	17,788	$	17,094
Less: Reinsurance recoverables	2,377		2,332		2,198
Net balance at January 1,	16,839		15,456		14,896
Incurred related to:
Current year	27,272		27,093		24,571
Prior years (1)	192		313		454
Total incurred	27,464		27,406		25,025
Paid related to:
Current year	(20,230)		(20,141)		(18,757)
Prior years	(6,241)		(5,882)		(5,708)
Total paid	(26,471)		(26,023)		(24,465)
Reclassified to liabilities held-for-sale (2)	(1,658)		—		—
Net balance at December 31,	16,174		16,839		15,456
Add: Reinsurance recoverables	2,417		2,377		2,332
Balance at December 31,	$	18,591	$	19,216	$	17,788

__________________

(1)For the years ended December 31, 2020, 2019 and 2018, claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported in the current year.

(2)See Note 3 for information on the pending disposition of MetLife P&C.

Separate Accounts

Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $149.0 billion and $142.5 billion at December 31, 2020 and 2019, 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 $51.0 billion and $45.9 billion at December 31, 2020 and 2019, respectively. The latter category consisted primarily of guaranteed interest contracts (“GICs”). The average interest rate credited on these contracts was 2.55% and 2.92% at December 31, 2020 and 2019, respectively.

For the years ended December 31, 2020, 2019 and 2018, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts.