Deferred Policy Acquisition Costs

6 Months Ended

Jun. 30, 2013

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

A progression of deferred policy acquisition costs is presented below (in millions):

	P&C			Annuity and Other (*)
	Deferred			Deferred			Sales			Present Value									Consolidated
	Costs			Costs			Inducements			of Future Profits			Unrealized			Total			Total
Balance at March 31, 2013	$	203		$	793		$	165		$	95		$	(691	)	$	362		$	565
Additions	123			49			2			—			—			51			174
Amortization:
Periodic amortization	(117		)	(46		)	(8		)	(3		)	—			(57		)	(174		)
Included in realized gains	—			1			—			—			—			1			1
Foreign currency translation	(1		)	—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			253			253			253
Balance at June 30, 2013	$	208		$	797		$	159		$	92		$	(438	)	$	610		$	818
Balance at March 31, 2012	$	191		$	939		$	186		$	139		$	(539	)	$	725		$	916
Additions	118			70			6			—			—			76			194
Amortization:
Periodic amortization	(111		)	(39		)	(8		)	(4		)	—			(51		)	(162		)
Included in realized gains	—			1			—			—			—			1			1
Change in unrealized	—			—			—			—			(103		)	(103		)	(103		)
Balance at June 30, 2012	$	198		$	971		$	184		$	135		$	(642	)	$	648		$	846
Balance at December 31, 2012	$	204		$	787		$	170		$	99		$	(710	)	$	346		$	550
Additions	242			83			4			—			—			87			329
Amortization:
Periodic amortization	(237		)	(73		)	(15		)	(7		)	—			(95		)	(332		)
Included in realized gains	—			—			—			—			—			—			—
Foreign currency translation	(1		)	—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			272			272			272
Balance at June 30, 2013	$	208		$	797		$	159		$	92		$	(438	)	$	610		$	818
Balance at December 31, 2011	$	189		$	916		$	189		$	144		$	(537	)	$	712		$	901
Additions	221			129			11			—			—			140			361
Amortization:
Periodic amortization	(212		)	(75		)	(16		)	(9		)	—			(100		)	(312		)
Included in realized gains	—			1			—			—			—			1			1
Change in unrealized	—			—			—			—			(105		)	(105		)	(105		)
Balance at June 30, 2012	$	198		$	971		$	184		$	135		$	(642	)	$	648		$	846

(*) Includes AFG’s run-off long-term care and life segment and Medicare supplement and critical illness segment (sold in August 2012).

The PVFP amounts in the table above are net of $191 million and $184 million of accumulated amortization at June 30, 2013 and December 31, 2012, respectively.