2020 2019 2018 (in millions of dollars) Balance at January 1 $ 23,076.7  $ 23,149.0  $ 23,222.0  Less Reinsurance Recoverable 2,246.8  2,227.3  2,182.0  Net Balance at January 1 20,829.9  20,921.7  21,040.0  Incurred Related to Current Year 6,327.8  6,113.2  5,832.3  Prior Years Interest 997.8  1,036.5  1,049.8  All Other Incurred 878.7  (274.1) (106.2) Foreign Currency 65.9  76.0  (110.7) Total Incurred 8,270.2  6,951.6  6,665.2  Paid Related to Current Year (2,727.0) (2,532.4) (2,354.7) Prior Years (4,430.3) (4,511.0) (4,428.8) Total Paid (7,157.3) (7,043.4) (6,783.5) Reserves Ceded Pursuant to Reinsurance Transaction (6,141.5) —  —  Net Balance at December 31 15,801.3  20,829.9  20,921.7  Plus Reinsurance Recoverable 8,378.9  2,246.8  2,227.3  Balance at December 31 $ 24,180.2  $ 23,076.7  $ 23,149.0  The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half of the year’s claim payments relative to prior years at our average reserve discount rate for the respective periods. "Incurred Related to Prior Years - All Other Incurred" shown in the preceding chart includes the increase in benefits and change in reserves for future benefits resulting from the realization of previously unrealized investment gains and losses as a result of the Closed Block individual disability reinsurance agreement and reserve adjustments as discussed in the following paragraphs, which impact the comparability between the years presented. Excluding those adjustments, the variability exhibited year over year is primarily caused by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. In connection with the first phase of the Closed Block individual disability coinsurance agreement that closed in December 2020, we recorded a reinsurance recoverable of $6,141.5 million representing the ceded reserves related to the cohort of policies on claim status as of July 1, 2020 (DLR cohort) and an increase in benefits and change in reserves for future benefits of $1,284.5 million resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income. These impacts are reflected in the chart shown above and the reconciliation shown below. 172 Closed Block Individual Disability Reinsurance Transaction Changes in the liability for unpaid claims and claim adjustment expenses are as follows: Note 6 - Liability for Unpaid Claims and Claim Adjustment Expenses NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued Unum Group and Subsidiaries