The Hartford 2015 Annual Report Download - page 200

Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
10. Reserves for Future Policy Benefits and Unpaid Losses and Loss Adjustment Expenses (continued)
F-69
Life Insurance, Disability and Accident Products Unpaid Losses and Loss Adjustment Expenses
A roll-forward of liabilities for group life, disability and accident, for unpaid losses and loss adjustment expenses follows:
For the years ended December 31,
2015 2014 2013
Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 6,084 $ 6,308 $ 6,547
Reinsurance recoverables 271 267 252
Beginning liabilities for unpaid losses and loss adjustment expenses, net 5,813 6,041 6,295
Provision for unpaid losses and loss adjustment expenses
Current accident year 2,371 2,370 2,534
Prior accident year development 64 (11) (17)
Total provision for unpaid losses and loss adjustment expenses 2,435 2,359 2,517
Less: payments
Current accident year 1,214 1,161 1,207
Prior accident years 1,354 1,426 1,564
Total payments 2,568 2,587 2,771
Ending liabilities for unpaid losses and loss adjustment expenses, net 5,680 5,813 6,041
Reinsurance recoverables 285 271 267
Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 5,965 $ 6,084 $ 6,308
The liability for unpaid losses and loss adjustment expenses for group life, disability and accident contracts was discounted to present
value using rates based on the Company’s earned investment yield estimated at the time the claims are incurred. The increase in the
provision for unpaid losses and loss adjustment expenses is primarily due to higher claim severity on the long-term disability product.
The liability for future policy benefits and unpaid losses and loss adjustment expenses is as follows:
As of December 31,
2015 2014
Group life term, disability and accident unpaid losses and loss adjustment expenses $ 5,965 $ 6,084
Group life other unpaid losses and loss adjustment expenses 174 203
Individual life unpaid losses and loss adjustment expenses 257 171
Future policy benefits 13,351 13,180
Future policy benefits, unpaid losses and loss adjustment expenses $ 19,747 $ 19,638