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Future Policy Benefits

6 Months Ended

Jun. 30, 2023

Liability for Future Policy Benefits and Unpaid Claims Disclosure

3. Future Policy Benefits

The Company establishes liabilities for amounts payable under insurance policies. These liabilities are comprised of traditional and limited-payment contracts and associated DPLs, additional insurance liabilities, participating life and short-duration contracts.

The LDTI transition adjustments related to traditional and limited-payment contracts, DPLs, and additional insurance liabilities, as well as the associated ceded recoverables, as described in Note 1, were as follows at the Transition Date:


	U.S. Annuities		Asia Whole and Term Life & Endowments		Asia Accident & Health		Latin America Fixed Annuities		MetLife Holdings Long-Term Care		MetLife Holdings Participating Life		Other Long- Duration		Short-Duration and Other		Total
	(In millions)
Balance, future policy benefits, at December 31, 2020	$	66,030	$	17,990	$	16,330	$	8,393	$	14,281	$	51,148	$	19,128	$	13,356	$	206,656
Removal of additional insurance liabilities for separate presentation (1)	(4)		—		—		—		—		—		(6,561)		—		(6,565)
Subtotal - pre-adoption balance, excluding additional liabilities	66,026		17,990		16,330		8,393		14,281		51,148		12,567		13,356		200,091
Removal of related amounts in AOCI	(5,914)		—		—		(295)		(1,210)		—		(492)		—		(7,911)
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		—		—		—		—		(176)		—		(176)
Adjustment of future policy benefits to remeasure cohorts where net premiums exceed gross premiums under the modified retrospective approach	337		51		154		121		—		—		56		—		719
Effect of remeasurement of future policy benefits to an upper-medium grade discount rate	15,834		4,386		285		2,869		8,270		—		2,475		—		34,119
Other balance sheet reclassifications and adjustments upon adoption of the LDTI standard	(7,416)		4		47		(1)		—		—		(124)		—		(7,490)
Removal of remeasured deferred profit liabilities for separate presentation (1)	(2,897)		(225)		(691)		(570)		—		—		(275)		—		(4,658)
Balance, traditional and limited-payment contracts, at January 1, 2021	$	65,970	$	22,206	$	16,125	$	10,517	$	21,341	$	51,148	$	14,031	$	13,356	$	214,694

Balance, deferred profit liabilities at January 1, 2021	$	2,897	$	225	$	691	$	570	$	—	$	—	$	275	$	—	$	4,658

Balance, ceded recoverables on traditional and limited-payment contracts at December 31, 2020	$	203	$	—	$	32	$	—	$	—			$	1,052			$	1,287
Effect of remeasurement of the ceded recoverable to an upper-medium grade discount rate	135		(15)		(66)		—		—				297				351
Adjustments for loss contracts (with net premiums in excess of gross premiums) under the modified retrospective approach	—		—		—		—		—				32				32
Adjustments for the cumulative effect of adoption on ceded recoverables on traditional and limited-payment contract	6		—		(2)		—		—				10				14
Balance ceded recoverables on traditional and limited-payment contracts at January 1, 2021	$	344	$	(15)	$	(36)	$	—	$	—			$	1,391			$	1,684

__________________

(1) LDTI requires separate disaggregated rollforwards of the additional insurance liabilities balance and the traditional and limited-payment FPBs. Therefore, the additional insurance liabilities and DPL amounts that are recorded in the FPB financial statement line item are removed to derive the opening balance of traditional and limited-payment contracts at the Transition Date.


	Asia Variable Life		Asia Universal and Variable Universal Life		MetLife Holdings Universal and Variable Universal Life		Other Long- Duration		Total
	(In millions)
Additional insurance liabilities at December 31, 2020	$	1,824	$	788	$	1,976	$	1,977	$	6,565
Reclassification of carrying amount of contracts and contract features that are market risk benefits	—		—		—		(1,642)		(1,642)
Adjustments for the cumulative effect of adoption on additional insurance liabilities	—		—		38		45		83
Additional insurance liabilities at January 1, 2021	$	1,824	$	788	$	2,014	$	380	$	5,006

Ceded recoverables on additional insurance liabilities at December 31, 2020	$	—	$	—	$	719	$	8	$	727
Reclassification of carrying amount of contracts and contract features that are reinsured market risk benefits	—		—		—		(8)		(8)
Adjustments for the cumulative effect of adoption on ceded recoverables on additional insurance liabilities	—		—		1		—		1
Ceded recoverables on additional insurance liabilities at January 1, 2021	$	—	$	—	$	720	$	—	$	720

Balance, traditional and limited-payment contracts, at January 1, 2021									$	214,694
Balance, deferred profit liabilities at January 1, 2021									4,658
Balance, additional insurance liabilities at January 1, 2021									5,006
Total future policy benefits at January 1, 2021									$	224,358

The Company’s future policy benefits on the interim condensed consolidated balance sheets was as follows at:


	June 30, 2023		December 31, 2022
	(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities	$	60,281	$	58,495
Asia:
Whole and term life & endowments	12,499		12,792
Accident & health	10,662		10,040
Latin America - Fixed annuities	10,192		9,265
MetLife Holdings - Long-term care	14,498		13,845
Deferred Profit Liabilities:
U.S. - Annuities	3,417		3,327
Asia:
Whole and term life & endowments	560		510
Accident & health	765		760
Latin America - Fixed annuities	605		560
Additional Insurance Liabilities:
Asia:
Variable life	1,243		1,381
Universal and variable universal life	410		455
MetLife Holdings - Universal and variable universal life	2,268		2,156
MetLife Holdings - Participating life	49,919		50,371
Other long-duration (1)	10,076		10,101
Short-duration and other	13,079		13,164
Total	$	190,474	$	187,222

__________________

(1) This balance represents liabilities for various smaller product lines across multiple segments, as well as Corporate & Other.

Rollforwards - Traditional and Limited-Payment Contracts

The following information about the direct and assumed liability for future policy benefits includes disaggregated rollforwards of expected future net premiums and expected future benefits. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

U.S. - Annuities

The U.S segment’s annuities products include pension risk transfers, certain structured settlements and certain institutional income annuities, which are mainly single premium spread-based products. Information regarding these products was as follows:


	Six Months Ended June 30,
	2023			2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—		$	—

Balance, beginning of period, at original discount rate	$	—		$	—
Effect of actual variances from expected experience (1)	(29)			(2)
Adjusted balance	(29)			(2)
Issuances	2,558			3,929
Net premiums collected	(2,529)			(3,927)
Ending balance at original discount rate	—			—
Balance, end of period, at current discount rate at balance sheet date	$	—		$	—

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	58,695		$	62,954

Balance, beginning of period, at original discount rate	$	61,426		$	50,890
Effect of actual variances from expected experience (1)	(167)			(79)
Adjusted balance	61,259			50,811
Issuances	2,561			3,933
Interest accrual	1,411			1,182
Benefit payments	(2,726)			(2,185)
Ending balance at original discount rate	62,505			53,741
Effect of changes in discount rate assumptions	(2,020)			797
Balance, end of period, at current discount rate at balance sheet date	60,485			54,538

Cumulative amount of fair value hedging adjustments	(204)			52
Net liability for future policy benefits	60,281			54,590
Less: Reinsurance recoverables	—			230
Net liability for future policy benefits, net of reinsurance	$	60,281		$	54,360

Undiscounted - Expected future benefit payments	$	115,364		$	101,128
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	60,485		$	54,538
Weighted-average duration of the liability	9 years			10 years
Weighted-average interest accretion (original locked-in) rate	4.7		%	4.6		%
Weighted-average current discount rate at balance sheet date	5.3		%	4.8		%

_________________

(1) For the six months ended June 30, 2023 and 2022, the net effect of actual variances from expected experience was largely offset by the corresponding impact in DPL associated with the U.S. segment’s annuities products of $98 million and $53 million, respectively.

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB for the U.S. segment’s annuities products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions.

For the six months ended June 30, 2023, the net effect of actual variances from expected experience was primarily driven by favorable mortality and model refinements. For the six months ended June 30, 2022, the net effect of actual variances from expected experience was primarily driven by favorable mortality.

Asia

Whole and Term Life & Endowments

The Asia segment’s whole and term life & endowment products in Japan and Korea offer various life insurance contracts to customers. Information regarding these products was as follows:


	Six Months Ended June 30,
		2023			2022
		(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date		$	4,682		$	5,986

Balance, beginning of period, at original discount rate		$	4,943		$	5,881
Effect of actual variances from expected experience		(26)			(17)
Adjusted balance		4,917			5,864
Issuances		328			106
Interest accrual		27			24
Net premiums collected		(300)			(323)
Effect of foreign currency translation		(384)			(826)
Ending balance at original discount rate		4,588			4,845
Effect of changes in discount rate assumptions		(196)			(90)
Effect of foreign currency translation on the effect of changes in discount rate assumptions		15			(3)
Balance, end of period, at current discount rate at balance sheet date		$	4,407		$	4,752

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date		$	17,463		$	24,453

Balance, beginning of period, at original discount rate		$	18,209		$	21,276
Effect of actual variances from expected experience		1			9
Adjusted balance		18,210			21,285
Issuances		328			106
Interest accrual		185			191
Benefit payments		(624)			(787)
Effect of foreign currency translation		(1,360)			(2,901)
Ending balance at original discount rate		16,739			17,894
Effect of changes in discount rate assumptions		154			804
Effect of foreign currency translation on the effect of changes in discount rate assumptions		11			(180)
Balance, end of period, at current discount rate at balance sheet date		16,904			18,518

Cumulative impact of flooring the future policyholder benefits reserve		2			19
Net liability for future policy benefits		12,499			13,785
Less: Amount due to reinsurer		(2)			(7)
Net liability for future policy benefits, net of reinsurance		$	12,501		$	13,792

Undiscounted:
Expected future gross premiums		$	8,786		$	9,211
Expected future benefit payments		$	26,771		$	27,795
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums		$	7,691		$	8,271
Expected future benefit payments		$	16,904		$	18,518
Weighted-average duration of the liability		17 years			16 years
Weighted -average interest accretion (original locked-in) rate		2.5		%	2.4		%
Weighted-average current discount rate at balance sheet date		2.5		%	2.2		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for Asia segment’s whole and term life & endowment products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, the current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

Accident & Health

The Asia segment’s accident & health products in Japan and Korea offer various hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Information regarding these products was as follows:


	Six Months Ended June 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	21,181	$	26,543

Balance, beginning of period, at original discount rate	$	22,594	$	25,937
Effect of actual variances from expected experience	(33)		26
Adjusted balance	22,561		25,963
Issuances	536		813
Interest accrual	120		132
Net premiums collected	(1,055)		(1,140)
Effect of foreign currency translation	(1,849)		(3,792)
Ending balance at original discount rate	20,313		21,976
Effect of changes in discount rate assumptions	(1,006)		(487)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	83		(2)
Balance, end of period, at current discount rate at balance sheet date	$	19,390	$	21,487

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	30,879	$	41,874

Balance, beginning of period, at original discount rate	$	37,189	$	41,517
Effect of actual variances from expected experience	(53)		54
Adjusted balance	37,136		41,571
Issuances	536		814
Interest accrual	246		261
Benefit payments	(653)		(767)
Effect of foreign currency translation	(3,017)		(6,020)
Ending balance at original discount rate	34,248		35,859
Effect of changes in discount rate assumptions	(4,664)		(3,733)
Effect of foreign currency translation on the effect of changes in discount rate assumptions	385		276
Balance, end of period, at current discount rate at balance sheet date	29,969		32,402

Cumulative impact of flooring the future policyholder benefits reserve	83		193
Net liability for future policy benefits	10,662		11,108
Less: Reinsurance recoverables/(Amount due to reinsurer)	149		(11)
Net liability for future policy benefits, net of reinsurance	$	10,513	$	11,119

Undiscounted:
Expected future gross premiums	$	39,362	$	42,467
Expected future benefit payments	$	44,435	$	46,153
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	33,399	$	37,169
Expected future benefit payments	$	29,969	$	32,402
Weighted-average duration of the liability	26 years		26 years
Weighted-average interest accretion (original locked-in) rate	1.8%		1.8%
Weighted-average current discount rate at balance sheet date	2.3%		2.1%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for the Asia segment’s accident & health products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, and morbidity.

Latin America - Fixed Annuities

The Latin America segment’s fixed annuities products in Chile and Mexico offer fixed income annuities that provide for asset distribution needs. Information regarding these products was as follows:


	Six Months Ended June 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	—	$	—

Balance, at beginning of period, at original discount rate	$	—	$	—
Effect of actual variances from expected experience (1)	—		1
Adjusted balance	—		1
Issuances	525		352
Interest accrual	5		(1)
Net premiums collected	(530)		(352)
Ending balance at original discount rate	—		—
Balance, end of period, at current discount rate at balance sheet date	$	—	$	—

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	9,265	$	7,343

Balance, beginning of period, at original discount rate	$	8,240	$	6,851
Effect of actual variances from expected experience (1)	(9)		(33)
Adjusted balance	8,231		6,818
Issuances	577		376
Interest accrual	173		145
Benefit payments	(336)		(291)
Inflation adjustment	243		469
Effect of foreign currency translation	538		(663)
Ending balance at original discount rate	9,426		6,854
Effect of changes in discount rate assumptions	706		916
Effect of foreign currency translation on the effect of changes in discount rate assumptions	60		(95)
Balance, end of period, at current discount rate at balance sheet date	10,192		7,675

Net liability for future policy benefits	$	10,192	$	7,675

Undiscounted - Expected future benefit payments	$	14,343	$	10,626
Discounted - Expected future benefit payments (at current discount rate at balance sheet date)	$	10,192	$	7,675
Weighted-average duration of the liability	11 years		11 years
Weighted-average interest accretion (original locked-in) rate	3.9%		4.4%
Weighted-average current discount rate at balance sheet date	2.9%		2.7%

__________________

(1) For the six months ended June 30, 2023 and 2022, the net effect of actual variances from expected experience was partially offset by the corresponding impact in DPL associated with the Latin America segment’s fixed annuities products of $3 million and $18 million, respectively.

Significant Methodologies and AssumptionsThe principal inputs used in the establishment of the FPB reserve for the Latin America segment’s fixed annuities products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate mortality assumptions

MetLife Holdings - Long-term Care

The MetLife Holdings segment’s long-term care products offer protection against potentially high costs of long-term health care services. Information regarding these products was as follows:


	Six Months Ended June 30,
	2023		2022
	(Dollars in millions)
Present Value of Expected Net Premiums
Balance, beginning of period, at current discount rate at balance sheet date	$	5,775	$	7,058

Balance, beginning of period, at original discount rate	$	5,807	$	5,699
Effect of actual variances from expected experience	83		106
Adjusted balance	5,890		5,805
Interest accrual	149		147
Net premiums collected	(293)		(288)
Ending balance at original discount rate	5,746		5,664
Effect of changes in discount rate assumptions	3		288
Balance, end of period, at current discount rate at balance sheet date	$	5,749	$	5,952

Present Value of Expected Future Policy Benefits
Balance, beginning of period, at current discount rate at balance sheet date	$	19,619	$	27,627

Balance, beginning of period, at original discount rate	$	20,165	$	19,406
Effect of actual variances from expected experience	99		116
Adjusted balance	20,264		19,522
Interest accrual	534		515
Benefit payments	(382)		(345)
Ending balance at original discount rate	20,416		19,692
Effect of changes in discount rate assumptions	(169)		1,088
Balance, end of period, at current discount rate at balance sheet date	20,247		20,780

Net liability for future policy benefits	$	14,498	$	14,828

Undiscounted:
Expected future gross premiums	$	10,893	$	11,062
Expected future benefit payments	$	45,653	$	45,787
Discounted (at current discount rate at balance sheet date):
Expected future gross premiums	$	7,089	$	7,501
Expected future benefit payments	$	20,247	$	20,780
Weighted-average duration of the liability	15 years		16 years
Weighted-average interest accretion (original locked-in) rate	5.4%		5.5%
Weighted-average current discount rate at balance sheet date	5.5%		5.0%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the FPB reserve for long-term care products include actual premiums, actual benefits, in-force data, locked-in claim-related expense, the locked-in interest accretion rate, current upper-medium grade discount rate at the balance sheet date and best estimate assumptions. The best estimate assumptions include mortality, lapse, incidence, claim utilization, claim cost inflation, claim continuance, and premium rate increases.

Rollforwards - Additional Insurance Liabilities

The Company establishes additional insurance liabilities for annuitization, death or other insurance benefits for variable life, universal life, and variable universal life contract features where the Company guarantees to the contractholder either a secondary guarantee or a guaranteed paid-up benefit. The policy can remain in force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met.

The following information about the direct liability for additional insurance liabilities includes disaggregated rollforwards. The products grouped within these rollforwards were selected based upon common characteristics and valuations using similar inputs, judgments, assumptions and methodologies within a particular segment of the business. The adjusted balance in each disaggregated rollforward reflects the remeasurement (gains) losses.

Asia

The Asia segment’s variable life, universal life, and variable universal life products in Japan offer a contract feature where the Company guarantees to the contractholder a secondary guarantee. Information regarding these additional insurance liabilities was as follows:


	Six Months Ended June 30,
	2023			2022			2023			2022
	Variable Life						Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	1,381		$	1,595		$	455		$	655
Less: AOCI adjustment	—			—			(33)			56
Balance, beginning of period, before AOCI adjustment	1,381			1,595			488			599
Effect of actual variances from expected experience	(8)			1			(22)			(41)
Adjusted balance	1,373			1,596			466			558
Assessments accrual	(2)			(2)			—			—
Interest accrual	10			11			3			4
Excess benefits paid	(19)			(20)			—			—
Effect of foreign currency translation and other, net	(119)			(241)			(41)			(89)
Balance, end of period, before AOCI adjustment	1,243			1,344			428			473
Add: AOCI adjustment	—			—			(18)			(19)
Balance, end of period	$	1,243		$	1,344		$	410		$	454

Weighted-average duration of the liability	17 years			18 years			43 years			42 years
Weighted-average interest accretion rate	1.5		%	1.5		%	1.5		%	1.5		%

Significant Methodologies and Assumptions

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s variable life product include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the long-term average return and volatility for each fund, and the correlation matrix for each fund. For newer products, the discount rate is determined based on the weighting and return of each fund.

The principal inputs used in the establishment of the additional insurance liability for the Asia segment’s universal and variable universal life products include historical actual fees and benefits, in-force data, the locked-in discount rate, the stochastic fund return scenario assumption, and best estimate lapse and mortality assumptions.

The stochastic fund return scenario assumption includes the foreign currency exchange long-term average trend, foreign currency exchange volatility, long-term U.S. swap and treasury yield, U.S. swap volatility and the correlation between foreign currency exchange and U.S. swap rates.

The locked-in discount rate used for these products is based on the earned rate and foreign currency exchange rates at acquisition.

MetLife Holdings

The MetLife Holdings segment’s universal life and variable universal life products offer a contract feature where the Company guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding these additional insurance liabilities was as follows:


	Six Months Ended June 30,
	2023			2022
	Universal and Variable Universal Life
	(Dollars in millions)
Balance, beginning of period	$	2,156		$	2,117
Less: AOCI adjustment	(63)			67
Balance, beginning of period, before AOCI adjustment	2,219			2,050
Effect of actual variances from expected experience	(6)			19
Adjusted balance	2,213			2,069
Assessments accrual	55			53
Interest accrual	61			56
Excess benefits paid	(63)			(62)
Balance, end of period, before AOCI adjustment	2,266			2,116
Add: AOCI adjustment	2			(35)
Balance, end of period	2,268			2,081
Less: Reinsurance recoverables	744			753
Balance, end of period, net of reinsurance	$	1,524		$	1,328

Weighted-average duration of the liability	16 years			16 years
Weighted-average interest accretion rate	5.6		%	5.5		%

Significant Methodologies and Assumptions

Liabilities for ULSG and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the life of the contract based on total expected assessments.

The guaranteed benefits are estimated over a range of scenarios. The significant assumptions used in estimating the ULSG and paid-up guarantee liabilities are investment income, mortality, lapses, and premium payment pattern and persistency. In addition, projected earned rate and crediting rates are used to project the account values and excess death benefits and assessments. The discount rate is equal to the crediting rate for each annual cohort and is locked-in at inception.

The Company’s revenue and interest recognized in the interim condensed consolidated statements of operations and comprehensive income (loss) for long-duration contracts, excluding MetLife Holdings’ participating life contracts, were as follows:


		Six Months Ended June 30,
		2023				2022
		Gross Premiums or Assessments (1)		Interest Expense (2)		Gross Premiums or Assessments (1)		Interest Expense (2)
	(In millions)
Traditional and Limited-Payment Contracts:
U.S. - Annuities		$	2,592	$	1,411	$	4,038	$	1,182
Asia:
Whole and term life & endowments		555		158		609		167
Accident & health		1,762		126		1,917		129
Latin America - Fixed annuities		529		168		352		146
MetLife Holdings - Long-term care		366		385		367		368
Deferred Profit Liabilities:
U.S. - Annuities		N/A		81		N/A		75
Asia:
Whole and term life & endowments		N/A		14		N/A		13
Accident & health		N/A		9		N/A		8
Latin America - Fixed annuities		N/A		11		N/A		10
Additional Insurance Liabilities:
Asia:
Variable life		11		10		12		11
Universal and variable universal life		(14)		3		(1)		4
MetLife Holdings - Universal and variable universal life		380		61		387		56
Other long-duration		2,015		227		1,794		229
Total		$	8,196	$	2,664	$	9,475	$	2,398

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(1)Gross premiums are related to traditional and limited-payment contracts and are included in premiums. Assessments are related to additional insurance liabilities and are included in universal life and investment-type product policy fees and net investment income.

(2)Interest expense is included in policyholder benefits and claims.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

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


	Six Months Ended June 30,
	2023		2022
	(In millions)
Balance, beginning of period	$	16,098	$	15,598
Less: Reinsurance recoverables	2,452		2,629
Net balance, beginning of period	13,646		12,969
Incurred related to:
Current period	13,580		13,101
Prior periods (1)	306		634
Total incurred	13,886		13,735
Paid related to:
Current period	(8,546)		(8,291)
Prior periods	(4,959)		(4,831)
Total paid	(13,505)		(13,122)


Net balance, end of period	14,027		13,582
Add: Reinsurance recoverables	2,590		2,537
Balance, end of period (included in future policy benefits and other policy-related balances)	$	16,617	$	16,119

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(1)For the six months ended June 30, 2023, incurred claims and claim adjustment expenses associated with prior periods increased due to events incurred in prior periods but reported in the current period. For the six months ended June 30, 2022, incurred claims and claim adjustment expenses include expenses associated with prior periods but reported in the respective current period, which contain impacts related to the COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.