The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows:



	For the Six
	Months Ended
	June 30,
	2019			2018
Balance as of beginning-of-year	$	5,335		$	2,222
Reinsurance recoverable		143			57
Net balance as of beginning-of-year		5,192			2,165
Business acquired ⁽¹⁾		-			2,836
Incurred related to:
Current year		1,577			986
Prior years:
Interest		80			50
All other incurred ⁽²⁾		(144	)		(87	)
Total incurred		1,513			949
Paid related to:
Current year		(593	)		(393	)
Prior years		(810	)		(517	)
Total paid		(1,403	)		(910	)
Net balance as of end-of-period		5,302			5,040
Reinsurance recoverable		147			136
Balance as of end-of-period	$	5,449		$	5,176

⁽¹⁾Represents Liberty group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information.

⁽²⁾All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably.

The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate.