Insurance (Tables)

9 Months Ended

Sep. 30, 2020

Insurance [Abstract]

Guarantees related to Annuity, Universal and Variable Life Contracts

Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at:

	September 30, 2020						December 31, 2019
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2)	$	47,122		$	20,026		$	49,207		$	21,472
Separate account value (1)	$	37,655		$	19,180		$	39,679		$	20,666
Net amount at risk	$	1,456	(3)	$	640	(4)	$	1,195	(3)	$	524	(4)
Average attained age of contractholders	68 years			67 years			68 years			66 years
Other Annuity Guarantees:
Total account value (1), (2)	N/A			$	142		N/A			$	143
Net amount at risk	N/A			$	75	(5)	N/A			$	80	(5)
Average attained age of contractholders	N/A			54 years			N/A			54 years

	September 30, 2020				December 31, 2019
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (2)	$	5,135	$	870	$	4,909	$	899
Net amount at risk (6)	$	39,919	$	5,612	$	41,385	$	5,884
Average attained age of policyholders	58 years		64 years		57 years		64 years

__________________

(1)The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2)Includes the contractholder’s investments in the general account and separate account, if applicable.

(3)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(4)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(5)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(6)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Liabilities for Unpaid Claims and Claim Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

	Nine Months Ended September 30,
	2020		2019
	(In millions)
Balance, beginning of period	$	13,140	$	12,590
Less: Reinsurance recoverables	1,525		1,497
Net balance, beginning of period	11,615		11,093
Incurred related to:
Current period	13,768		13,138
Prior periods (1)	(71)		(50)
Total incurred	13,697		13,088
Paid related to:
Current period	(9,502)		(8,868)
Prior periods	(3,905)		(3,667)
Total paid	(13,407)		(12,535)
Net balance, end of period	11,905		11,646
Add: Reinsurance recoverables	1,694		1,594
Balance, end of period (included in future policy benefits and other policy-related balances)	$	13,599	$	13,240

__________________

(1)For both the nine months ended September 30, 2020 and 2019, claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience in the current period.