Insurance

12 Months Ended

Dec. 31, 2021

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,
	2021		2020
	(In millions)
U.S.	$	162,999	$	162,524
Asia	125,839		126,912
Latin America	15,564		16,849
EMEA	13,031		17,252
MetLife Holdings	102,291		103,937
Corporate & Other	1,221		1,459
Total	$	420,945	$	428,933

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 10% 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 10% 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, 2021 and 2020. Participating policies represented 12%, 14% and 15% of gross traditional life insurance premiums for the years ended December 31, 2021, 2020 and 2019, 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 10% 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, 2019	$	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
Incurred guaranteed benefits (1)	133		87		(37)		43		226
Paid guaranteed benefits	(29)		(7)		(102)		(47)		(185)
Reclassified to liabilities held-for-sale (2)	—		(32)		—		—		(32)
Balance at December 31, 2021	$	743	$	1,177	$	4,126	$	404	$	6,450
Ceded:
Balance at January 1, 2019	$	—	$	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
Incurred guaranteed benefits	(6)		2		57		30		83
Paid guaranteed benefits	8		—		(33)		(34)		(59)
Reclassified to liabilities held-for-sale (2)	—		—		—		—		—
Balance at December 31, 2021	$	—	$	9	$	451	$	288	$	748
Net:
Balance at January 1, 2019	$	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
Incurred guaranteed benefits	139		85		(94)		13		143
Paid guaranteed benefits	(37)		(7)		(69)		(13)		(126)
Reclassified to liabilities held-for-sale (2)	—		(32)		—		—		(32)
Balance at December 31, 2021	$	743	$	1,168	$	3,675	$	116	$	5,702

__________________

(1)Secondary guarantees include the effects of foreign currency translation of ($260) million, $125 million and $23 million at December 31, 2021, 2020 and 2019, respectively.

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

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,
	2021						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)	$	62,281		$	23,121		$	65,044		$	24,170
Separate account value (1)	$	42,043		$	21,508		$	42,585		$	22,370
Net amount at risk (2)	$	1,490	(4)	$	500	(5)	$	1,579	(4)	$	614	(5)
Average attained age of contractholders	68 years			66 years			68 years			66 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	5,002		N/A			$	6,030
Net amount at risk	N/A			$	196	(6)	N/A			$	459	(6)
Average attained age of contractholders	N/A			56 years			N/A			50 years

	December 31,
	2021				2020
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	13,678	$	2,694	$	13,426	$	2,808
Net amount at risk (7)	$	78,762	$	12,657	$	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 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,
	2021		2020
	(In millions)
Fund Groupings:
Equity	$	29,346	$	28,581
Balanced	17,393		18,385
Bond	5,041		5,567
Money Market	218		149
Total	$	51,998	$	52,682

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, 2021, 2020 and 2019, the Company issued $40.8 billion, $40.4 billion and $37.3 billion, respectively, and repaid $41.2 billion, $36.7 billion and $36.4 billion, respectively, of such funding agreements. At December 31, 2021 and 2020, liabilities for funding agreements outstanding, which are included in policyholder account balances, were $39.5 billion and $39.9 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,
	2021		2020
	(In millions)
FHLB of New York	$	769	$	812
FHLB of Des Moines	$	—	$	2

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,
	2021		2020		2021			2020
	(In millions)
FHLB of New York (1)	$	15,750	$	16,200	$	17,981	(2)	$	18,539	(2)
Farmer Mac (3)	$	2,050	$	2,375	$	2,159		$	2,450
FHLB of Des Moines (1)	$	—	$	50	$	—		$	72	(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, 2021. 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. In order to eliminate potential fluctuations related to foreign exchange rates, liabilities and payments denominated in a foreign currency have been translated using the 2021 year end spot rates for all periods presented. The information about incurred and paid claims development prior to 2021 is presented as supplementary information.

U.S.

Group Life - Term

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	6,503	$	6,579	$	6,569	$	6,546	$	6,568	$	6,569	$	6,569	$	6,572	$	6,574	$	6,575	$	1	210,236
2013			6,637		6,713		6,719		6,720		6,730		6,720		6,723		6,724		6,726		2		212,892
2014					6,986		6,919		6,913		6,910		6,914		6,919		6,920		6,918		1		215,694
2015							7,040		7,015		7,014		7,021		7,024		7,025		7,026		2		218,188
2016									7,125		7,085		7,095		7,104		7,105		7,104		3		219,581
2017											7,432		7,418		7,425		7,427		7,428		6		260,807
2018													7,757		7,655		7,646		7,650		10		246,519
2019															7,935		7,900		7,907		13		246,245
2020																	8,913		9,367		27		281,696
2021																			10,555		1,029		221,955
Total																			77,256
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(74,255)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			21
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	3,022

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	5,132	$	6,472	$	6,518	$	6,532	$	6,558	$	6,565	$	6,566	$	6,569	$	6,572	$	6,572
2013			5,216		6,614		6,664		6,678		6,711		6,715		6,720		6,721		6,723
2014					5,428		6,809		6,858		6,869		6,902		6,912		6,915		6,916
2015							5,524		6,913		6,958		6,974		7,008		7,018		7,022
2016									5,582		6,980		7,034		7,053		7,086		7,096
2017											5,761		7,292		7,355		7,374		7,400
2018													6,008		7,521		7,578		7,595
2019															6,178		7,756		7,820
2020																	6,862		9,103
2021																			8,008
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	74,255

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:

	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	77.5%	20.5%	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, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	966	$	979	$	980	$	1,014	$	1,034	$	1,037	$	1,021	$	1,015	$	1,011	$	1,007	$	—	20,086
2013			1,008		1,027		1,032		1,049		1,070		1,069		1,044		1,032		1,025		—		21,139
2014					1,076		1,077		1,079		1,101		1,109		1,098		1,097		1,081		—		22,853
2015							1,082		1,105		1,093		1,100		1,087		1,081		1,067		—		21,213
2016									1,131		1,139		1,159		1,162		1,139		1,124		—		17,971
2017											1,244		1,202		1,203		1,195		1,165		—		16,324
2018													1,240		1,175		1,163		1,147		—		15,172
2019															1,277		1,212		1,169		7		15,318
2020																	1,253		1,223		30		15,381
2021																			1,552		687		10,503
Total																			11,560
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(5,943)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			1,559
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	7,176

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	43	$	229	$	365	$	453	$	524	$	591	$	648	$	694	$	730	$	766
2013			43		234		382		475		551		622		676		722		764
2014					51		266		428		526		609		677		732		778
2015							50		264		427		524		601		665		718
2016									49		267		433		548		628		696
2017											56		290		476		579		655
2018													54		314		497		594
2019															57		342		522
2020																	59		355
2021																			95
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	5,943

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:

	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	4.8%	20.9%	15.0%	9.1%	7.2%	6.4%	5.2%	4.4%	3.8%	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 2021 compared to the 2020 incurral year due to the growth in the size of the business.

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.

Certain of our Group Life - Term customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

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 $6.2 billion and $6.0 billion at December 31, 2021 and 2020, respectively. Using interest rates ranging from 2% to 8%, based on the incurral year, the total discount applied to these liabilities was $1.1 billion and $1.2 billion at December 31, 2021 and 2020, respectively. The amount of interest accretion recognized was $518 million, $452 million and $470 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	91	$	97	$	95	$	110	$	111	$	114	$	124	$	118	$	117	$	117	$	3	5,644
2013			138		140		161		156		156		164		164		168		168		9		6,554
2014					276		259		238		238		249		245		246		246		18		6,798
2015							260		249		252		245		257		259		262		21		6,708
2016									217		221		209		222		225		231		27		4,616
2017											282		262		270		289		297		40		5,268
2018													344		314		327		338		78		5,511
2019															372		347		364		127		5,321
2020																	413		385		221		3,983
2021																			394		311		2,474
Total																			2,802
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(1,947)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			12
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	867

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	28	$	60	$	79	$	92	$	99	$	104	$	105	$	108	$	112	$	114
2013			41		92		113		127		138		152		148		157		159
2014					65		134		167		188		211		212		223		228
2015							76		143		179		193		219		233		241
2016									61		126		143		179		194		204
2017											82		148		196		240		257
2018													90		166		224		260
2019															100		183		237
2020																	91		164
2021																			83
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	1,947

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:

	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	25.6%	25.1%	13.9%	10.6%	7.3%	4.5%	1.5%	3.3%	2.3%	1.7%

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.

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 $1.2 billion and $1.0 billion at December 31, 2021 and 2020, 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 $73 million and $68 million at December 31, 2021 and 2020, respectively. The amount of interest accretion recognized was $22 million, $24 million and $20 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	133	$	180	$	185	$	186	$	186	$	184	$	185	$	186	$	188	$	188	$	—	27,664
2013			145		204		210		211		210		212		213		213		213		—		32,091
2014					218		333		342		313		316		316		317		317		—		40,904
2015							286		410		382		386		386		387		382		—		46,917
2016									302		395		407		413		414		415		—		40,751
2017											312		303		304		302		303		(1)		32,326
2018													290		280		278		280		(1)		30,855
2019															313		286		289		—		32,925
2020																	473		474		23		41,053
2021																			601		222		38,013
Total																			3,462
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(3,028)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			10
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	444

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	131	$	178	$	182	$	183	$	183	$	183	$	183	$	185	$	185	$	188
2013			142		198		202		203		202		204		205		207		208
2014					194		291		296		299		302		305		306		307
2015							232		328		348		355		361		363		364
2016									214		383		401		408		411		413
2017											184		277		292		295		298
2018													146		248		259		263
2019															163		247		267
2020																	205		410
2021																			310
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	3,028

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:

	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	57.4%	31.9%	3.9%	1.1%	0.6%	0.6%	0.3%	0.8%	0.2%	1.6%

Protection Health

	Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance																				At December 31, 2021
	For the Years Ended December 31,																				Total IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Dollars in millions)
2012	$	200	$	224	$	226	$	227	$	227	$	226	$	226	$	226	$	226	$	225	$	—	100,436
2013			216		244		246		246		244		244		244		244		244		—		104,332
2014					224		250		252		250		249		249		249		250		—		97,929
2015							193		219		221		220		219		220		220		—		87,412
2016									253		291		289		289		289		289		—		106,380
2017											366		341		342		341		341		—		121,221
2018													393		412		391		390		1		143,930
2019															131		170		164		4		130,963
2020																	473		465		10		146,176
2021																			608		38		121,301
Total																			3,196
Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			(3,100)
All outstanding liabilities for incurral years prior to 2012, net of reinsurance																			4
Total unpaid claims and claim adjustment expenses, net of reinsurance																			$	100

	Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Incurral Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(In millions)
2012	$	200	$	224	$	226	$	227	$	227	$	226	$	226	$	226	$	226	$	227
2013			216		244		246		246		243		244		244		244		244
2014					223		248		250		246		247		247		247		247
2015							193		219		218		219		219		219		220
2016									238		285		287		288		288		288
2017											299		337		339		339		340
2018													335		382		385		386
2019															110		155		158
2020																	400		453
2021																			537
Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance																			$	3,100

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration at December 31, 2021:

	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	85.2%	13.6%	0.7%	—%	(0.1%)	—%	0.1%	—%	—%	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.

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.

Certain of our Protection Life customers have experience-rated contracts, whereby the group sponsor participates in the favorable and/or adverse claim experience, including favorable and/or adverse prior year development. Claim experience adjustments on these contracts are not reflected in the foregoing incurred and paid claim development tables, but are instead reflected as an increase (adverse experience) or decrease (favorable experience) to premiums on the consolidated statements of operations.

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, 2021
	(In millions)
Short-Duration:
Unpaid claims and allocated claims adjustment expenses, net of reinsurance:
U.S.:
Group Life - Term	$	3,022
Group Long-Term Disability	7,176
Total			$	10,198
Asia - Group Disability & Group Life			867
Latin America:
Protection Life	444
Protection Health	100
Total			544
Other insurance lines - all segments combined			2,023
Total unpaid claims and allocated claims adjustment expenses, net of reinsurance			13,632
Reinsurance recoverables on unpaid claims:
U.S.:
Group Life - Term	14
Group Long-Term Disability	166
Total			180
Asia - Group Disability & Group Life			375
Latin America:
Protection Life	10
Protection Health	13
Total			23
Other insurance lines - all segments combined			291
Total reinsurance recoverable on unpaid claims			869
Total unpaid claims and allocated claims adjustment expense			14,501
Unallocated claims adjustment expenses			2
Discounting			(1,205)
Liability for unpaid claims and claim adjustment liabilities - short-duration			13,298
Liability for unpaid claims and claim adjustment liabilities - all long-duration lines			6,715
Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-related balances) (1)			$	20,013

__________________

(1)Excludes unpaid claims and allocated claims adjustment expense reclassified to liabilities held-for-sale. See Note 3 for information on the on the Company’s business dispositions.

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,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	18,591	$	19,216	$	17,788
Less: Reinsurance recoverables	2,417		2,377		2,332
Net balance at January 1,	16,174		16,839		15,456
Incurred related to:
Current year	28,270		27,272		27,093
Prior years (1)	934		192		313
Total incurred	29,204		27,464		27,406
Paid related to:
Current year	(21,111)		(20,230)		(20,141)
Prior years	(7,256)		(6,241)		(5,882)
Total paid	(28,367)		(26,471)		(26,023)
Reclassified to liabilities held-for-sale (2)	(55)		(1,658)		—
Dispositions (2)	(64)		—		—
Net balance at December 31,	16,892		16,174		16,839
Add: Reinsurance recoverables	3,121		2,417		2,377
Balance at December 31,	$	20,013	$	18,591	$	19,216

__________________

(1)For the years ended December 31, 2021, 2020 and 2019, incurred claim activity and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported in the current year. The increase in the 2021 incurred claim activity and claim adjustment expenses associated with prior years is primarily due to the impacts from the COVID-19 pandemic, which are partially offset by additional premiums recorded for experience-rated contracts and are not reflected in the table above.

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

Separate AccountsSeparate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $134.4 billion and $149.0 billion at December 31, 2021 and 2020, 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 $45.5 billion and $51.0 billion at December 31, 2021 and 2020, respectively. The latter category consisted primarily of guaranteed interest contracts (“GICs”). The average interest rate credited on these contracts was 2.18% and 2.55% at December 31, 2021 and 2020, respectively.