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INSURANCE CONTRACTS
 12 Months Ended
Dec. 31, 2021
Insurance Contracts [Abstract]  
INSURANCE CONTRACTS INSURANCE CONTRACTS
    The following summarizes the balances related to the partnership’s insurance contracts from its residential mortgage insurer:
(a)    Premiums and unearned premiums reserve
    The following table presents movement in the unearned premiums reserve:
(US$ MILLIONS)20212020
Unearned premiums reserve, beginning of year$1,889 $1,625 
Premiums written during the year967 744 
Premiums earned during the year(639)(521)
Foreign currency translation11 41 
Unearned premiums reserve, end of year$2,228 1,889 
    Key methodologies and assumptions
    Premiums written are recognized as premiums earned using a factor-based premium recognition curve that is based on expected loss emergence pattern. Approximately 80% of the mortgage insurance premiums written are recognized as premiums earned within the first five years of policy inception based on the current premium recognition curve.
    An appointed actuary performs a liability adequacy test on the unearned premiums reserve using a dynamic regression model. The purpose of the test is to ensure the unearned premiums liability at year end is sufficient to pay for future claims and expenses that may arise from unexpired insurance contracts. The liability adequacy test for the year ended December 31, 2021 and 2020 identified a surplus in the unearned premiums reserve and thus no premium deficiency reserve is required at this reporting date.
(b)    Losses on claims and loss reserves
    The carrying value of loss reserves reflects the present value of expected claims expenses and provisions for adverse deviation and is considered to be an indicator of fair value.
    Loss reserves comprise the following:
(US$ MILLIONS)20212020
Case reserves$54 $78 
Incurred but not reported reserves13 53 
Discounting(1)(1)
Provisions for adverse deviation5 14 
Total loss reserves$71 $144 
    The following table presents movement in loss reserves and the impact on losses on claims:
(US$ MILLIONS)20212020
Loss reserves, beginning of year$144 $105 
Claims paid during the year(48)(50)
Changes in loss reserves related to the current year44 85 
Favorable development on losses on claims related to prior years(71)— 
Foreign currency translation2 4 
Loss reserves, end of year$71 $144