MetLife 2008 Annual Report Download - page 179

Liabilities for Unpaid Claims and Claim Expenses
Information regarding the liabilities for unpaid claims and claim expenses relating to property and casualty, group accident and non-
medical health policies and contracts, which are reported in future policy benefits and other policyholder funds, is as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
BalanceatJanuary1,............................................ $7,836 $7,244 $6,977
Less:Reinsurancerecoverables.................................... (955) (937) (940)
NetbalanceatJanuary1, ......................................... 6,881 6,307 6,037
Incurred related to:
Currentyear................................................. 6,263 5,796 5,064
Prioryears.................................................. (353) (325) (329)
5,910 5,471 4,735
Paid related to:
Currentyear................................................. (3,861) (3,297) (2,975)
Prioryears.................................................. (1,712) (1,600) (1,490)
(5,573) (4,897) (4,465)
NetbalanceatDecember31,....................................... 7,218 6,881 6,307
Add:Reinsurancerecoverables .................................... 1,042 955 937
BalanceatDecember31,.......................................... $8,260 $7,836 $7,244
During 2008, 2007 and 2006, as a result of changes in estimates of insured events in the respective prior year, claims and claim
adjustment expenses associated with prior years decreased by $353 million, $325 million and $329 million, respectively, due to a
reduction in prior year automobile bodily injury and homeowners’ severity, reduced loss adjustment expenses, improved loss ratio for non-
medical health claim liabilities and improved claim management.
Guarantees
The Company issues annuity contracts which may include contractual guarantees to the contractholder for: (i) return of no less than
total deposits made to the contract less any partial withdrawals (“return of net deposits”); and (ii) the highest contract value on a specified
anniversary date minus any withdrawals following the contract anniversary, or total deposits made to the contract less any partial
withdrawals plus a minimum return (“anniversary contract value” or “minimum return”). The Company also issues annuity contracts that
apply a lower rate of funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder
elects to annuitize (“two tier annuities”). These guarantees include benefits that are payable in the event of death or at annuitization.
The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a
secondary guarantee or a guaranteed paid-up benefit.
Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts is as follows:
In the
Event of Death At Annuitization In the Event of Death At Annuitization
2008 2007
December 31,
(In millions)
Annuity Contracts(1)
Return of Net Deposits
Separateaccountvalue........................ $ 15,882 N/A $ 18,573 N/A
Netamountatrisk(2).......................... $ 4,384(3) N/A $ 52(3) N/A
Averageattainedageofcontractholders ............. 62years N/A 61years N/A
Anniversary Contract Value or Minimum Return
Separateaccountvalue........................ $ 62,345 $ 24,328 $ 87,168 $ 29,603
Netamountatrisk(2).......................... $ 18,637(3) $ 11,312(4) $ 2,331(3) $ 441(4)
Averageattainedageofcontractholders ............. 60years 61years 58years 60years
Two Tier Annuities
Generalaccountvalue......................... N/A $ 283 N/A $ 286
Netamountatrisk(2).......................... N/A $ 50(5) N/A $ 51(5)
Averageattainedageofcontractholders ............. N/A 60years N/A 60years
F-56 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)