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

12 Months Ended

Dec. 31, 2013

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)	2013			2012			2011
Liability for unpaid claims and claims adjustment expense, beginning of year	$	87,991		$	91,145		$	91,151
Reinsurance recoverable		(19,209	)		(20,320	)		(19,644	)
Net liability for unpaid claims and claims adjustment expense, beginning of year		68,782			70,825			71,507
Foreign exchange effect(a)		(617	)		(90	)		353
Dispositions		(79	)		(11	)		–
Changes in net loss reserves due to retroactive asbestos reinsurance transaction		22			90			(1,703	)
Total		68,108			70,814			70,157
Losses and loss expenses incurred:
Current year		22,171			25,385			27,931
Prior years, other than accretion of discount(b)		557			421			195
Prior years, accretion of discount		(309	)		(63	)		34
Total		22,419			25,743			28,160
Losses and loss expenses paid(c):
Current year		7,431			8,450			11,534
Prior years		18,780			19,325			15,958
Total		26,211			27,775			27,492
Balance, end of year:
Net liability for unpaid claims and claims adjustment expense		64,316			68,782			70,825
Reinsurance recoverable		17,231			19,209			20,320
Total	$	81,547		$	87,991		$	91,145

(a)  For the 2012 amounts, $847 million was reclassified from "Foreign exchange effect" to "Losses and loss 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 2013, includes $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. In 2011, includes $(588) million, $385 million, $686 million and $45 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)	2013		2012
Policyholder contract deposits:
Life Insurance and A&H	$	13,081	$	12,201
Fixed Annuities		54,515		55,985
Retirement Income Solutions		6,729		5,451
Group Retirement		37,694		36,778
Institutional Markets		9,433		12,056
All other Institutional		564		509
Total Policyholder contract deposits	$	122,016	$	122,980