Insurance (Tables)

6 Months Ended

Jun. 30, 2021

Insurance [Abstract]

Guarantees related to Annuity, Universal and Variable Life Contracts

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, 2021						December 31, 2020
	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)	$	64,788		$	24,095		$	65,044		$	24,170
Separate account value (1)	$	43,396		$	22,393		$	42,585		$	22,370
Net amount at risk (2)	$	1,462	(4)	$	451	(5)	$	1,579	(4)	$	614	(5)
Average attained age of contractholders	68 years			67 years			68 years			66 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	5,349		N/A			$	6,030
Net amount at risk	N/A			$	195	(6)	N/A			$	459	(6)
Average attained age of contractholders	N/A			56 years			N/A			50 years

	June 30, 2021				December 31, 2020
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	13,830	$	2,743	$	13,426	$	2,808
Net amount at risk (7)	$	79,880	$	13,102	$	82,940	$	13,557
Average attained age of policyholders	55 years		66 years		54 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,
	2021		2020
	(In millions)
Balance, beginning of period	$	18,591	$	19,216
Less: Reinsurance recoverables	2,417		2,377
Net balance, beginning of period	16,174		16,839
Incurred related to:
Current period	13,640		12,751
Prior periods (1)	802		170
Total incurred	14,442		12,921
Paid related to:
Current period	(8,806)		(8,214)
Prior periods	(5,408)		(4,375)
Total paid	(14,214)		(12,589)
Reclassified to liabilities held-for-sale (2)	(59)		—
Dispositions (3)	(53)		—
Net balance, end of period	16,290		17,171
Add: Reinsurance recoverables	2,883		2,519
Balance, end of period (included in future policy benefits and other policy-related balances)	$	19,173	$	19,690

__________________

(1)For both the six months ended June 30, 2021 and 2020, incurred claim activity and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period.

(2)See Note 3 for information on the pending disposition of MetLife Poland and Greece.

(3)See Note 3 for information on the Company’s business dispositions.