INSURANCE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2014

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS

Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense

Years Ended December 31,
(in millions)		2014		2013		2012
Liability for unpaid losses and loss adjustment expenses, beginning of year	$	81,547	$	87,991	$	91,145
Reinsurance recoverable		(17,231)		(19,209)		(20,320)
Net liability for unpaid losses and loss adjustment expenses, beginning of year		64,316		68,782		70,825
Foreign exchange effect(a)		(1,061)		(617)		(90)
Dispositions		-		(79)		(11)
Changes in net loss reserves due to retroactive asbestos reinsurance transaction		141		22		90
Total		63,396		68,108		70,814
Losses and loss adjustment expenses incurred:
Current year		21,279		22,171		25,385
Prior years, excluding discount(b)		703		557		421
Prior years, discount charge (benefit)		478		(309)		(63)
Total		22,460		22,419		25,743
Losses and loss adjustment expenses paid(c):
Current year		6,358		7,431		8,450
Prior years		17,886		18,780		19,325
Total		24,244		26,211		27,775
Balance, end of year:
Net liability for unpaid losses and loss adjustment expenses		61,612		64,316		68,782
Reinsurance recoverable		15,648		17,231		19,209
Total	$	77,260	$	81,547	$	87,991

(a)For the 2012 amounts, $847 million was reclassified from "Foreign exchange effect" to "Losses and loss adjustment expenses paid (current year)". The impact of this reclassification was a decrease of $847 million for foreign exchange and loss expenses paid (current year), with no income statement or balance sheet impact.

(b)In 2014, included $545 million, $381 million, $(195)million, $135 million and $109 million related to primary casualty, environmental and asbestos, natural catastrophes, financial lines and healthcare, respectively. In 2013, included $(144)million, $269 million, $498 million and $(54)million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively. In 2012, includes $157 million, $200 million, $531 million and $68 million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively.

(c)Includes amounts related to dispositions through the date of disposition.

Schedule of Policyholder contract deposits by product type

At December 31,
(in millions)		2014		2013
Policyholder contract deposits:
Fixed Annuities	$	53,370	$	54,515
Group Retirement		37,693		37,695
Life		13,717		13,644
Retirement Income Solutions		10,040		6,729
Institutional Markets		9,793		9,433
Total Policyholder contract deposits	$	124,613	$	122,016