MetLife 2009 Annual Report Download - page 166

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:
2009 2008 2007
Years Ended December 31,
(In millions)
BalanceatJanuary1,............................................ $8,260 $7,836 $7,244
Less:Reinsurancerecoverables.................................... (1,042) (955) (937)
NetbalanceatJanuary1, ......................................... 7,218 6,881 6,307
Incurred related to:
Currentyear................................................. 6,569 6,263 5,796
Prioryears.................................................. (152) (353) (325)
6,417 5,910 5,471
Paid related to:
Currentyear................................................. (3,972) (3,861) (3,297)
Prioryears.................................................. (1,991) (1,712) (1,600)
(5,963) (5,573) (4,897)
NetbalanceatDecember31,....................................... 7,672 7,218 6,881
Add:Reinsurancerecoverables .................................... 547 1,042 955
BalanceatDecember31, ......................................... $8,219 $8,260 $7,836
During 2009, 2008 and 2007, 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 $152 million, $353 million and $325 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.
F-82 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)