MetLife 2011 Annual Report Download - page 184

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
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 policy-related balances, was as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Balance at January 1, ....................................................... $ 10,708 $ 8,219 $ 8,260
Less: Reinsurance recoverables ............................................. 2,198 547 1,042
Net balance at January 1, .................................................... 8,510 7,672 7,218
Acquisitions, net ............................................................ — 583 —
Incurred related to:
Current year ............................................................. 9,028 6,482 6,569
Prior years .............................................................. (199) (75) (152)
Total incurred .......................................................... 8,829 6,407 6,417
Paid related to:
Current year ............................................................. (6,238) (4,050) (3,972)
Prior years .............................................................. (2,420) (2,102) (1,991)
Total paid ............................................................. (8,658) (6,152) (5,963)
Net balance at December 31, ................................................. 8,681 8,510 7,672
Add: Reinsurance recoverables .............................................. 1,436 2,198 547
Balance at December 31, .................................................... $ 10,117 $ 10,708 $ 8,219
During 2011, 2010 and 2009, 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 $199 million, $75 million and $152 million, respectively, due to a reduction in prior year automobile
bodily injury and homeowners’ severity and improved loss ratio for non-medical health claim liabilities.
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, maturity 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.
180 MetLife, Inc.