Policy Claims and Benefits (Notes)

6 Months Ended

Jun. 30, 2020

Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Policy Claims and Benefits

The liability for unpaid claims is reported in future policy benefits and other policy claims and benefits on the Company’s condensed consolidated balance sheets. Activity associated with unpaid claims is summarized below (dollars in millions):

	Six months ended June 30,
	2020			2019
Balance at beginning of year	$	6,786		$	6,585
Less: reinsurance recoverable	(564		)	(433		)
Net balance at beginning of year	6,222			6,152
Incurred:
Current year	5,740			5,457
Prior years	59			58
Total incurred	5,799			5,515
Payments:
Current year	(1,332		)	(1,063		)
Prior years	(3,903		)	(3,979		)
Total payments	(5,235		)	(5,042		)
Other changes:
Interest accretion	18			13
Foreign exchange adjustments	(142		)	3
Total other changes	(124		)	16
Net balance at end the period	6,662			6,641
Plus: reinsurance recoverable	633			525
Balance at end of the period	$	7,295		$	7,166

Incurred claims associated with prior periods are primarily due to events, related to long-duration business, which were incurred in prior periods but were reported in the current period, and to a lesser extent, the development of short-duration business claims for prior years being different than were anticipated when the liabilities for unpaid claims were originally estimated.  These trends have been considered in establishing the current year liability for unpaid claims.