Liability for Unpaid Claims and Claim Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

Changes in the liability for unpaid claims and claim adjustment expenses are as follows:


	2020		2019		2018
	(in millions of dollars)
Balance at January 1	$	23,076.7	$	23,149.0	$	23,222.0
Less Reinsurance Recoverable	2,246.8		2,227.3		2,182.0
Net Balance at January 1	20,829.9		20,921.7		21,040.0

Incurred Related to
Current Year	6,327.8		6,113.2		5,832.3
Prior Years
Interest	997.8		1,036.5		1,049.8
All Other Incurred	878.7		(274.1)		(106.2)
Foreign Currency	65.9		76.0		(110.7)
Total Incurred	8,270.2		6,951.6		6,665.2

Paid Related to
Current Year	(2,727.0)		(2,532.4)		(2,354.7)
Prior Years	(4,430.3)		(4,511.0)		(4,428.8)
Total Paid	(7,157.3)		(7,043.4)		(6,783.5)

Reserves Ceded Pursuant to Reinsurance Transaction	(6,141.5)		—		—

Net Balance at December 31	15,801.3		20,829.9		20,921.7
Plus Reinsurance Recoverable	8,378.9		2,246.8		2,227.3
Balance at December 31	$	24,180.2	$	23,076.7	$	23,149.0

Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits to Balance Sheet Amounts

A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:


	December 31
	2020		2019		2018
	(in millions of dollars)
Policy and Contract Benefits	$	1,855.4	$	1,745.5	$	1,695.7
Reserves for Future Policy and Contract Benefits	49,653.0		47,780.1		44,841.9
Total	51,508.4		49,525.6		46,537.6
Less:
Life Reserves for Future Policy and Contract Benefits	8,371.7		8,435.7		8,330.9
Accident and Health Active Life Reserves	12,730.9		12,210.1		11,837.4
Adjustment Related to Unrealized Investment Gains and Losses	6,225.6		5,803.1		3,220.3
Liability for Unpaid Claims and Claim Adjustment Expenses	$	24,180.2	$	23,076.7	$	23,149.0

The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss.