Deferred Policy Acquisition Costs

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



	P&C			Annuity and Run-off Long-term Care and Life
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized			Total			Total
Balance at December 31, 2012	$	204		$	787		$	170		$	99		$	1,056		$	(710	)	$	346		$	550
Additions	468			222			11			—			233			—			233			701
Amortization:
Periodic amortization	(460		)	(140		)	(30		)	(14		)	(184		)	—			(184		)	(644		)
Annuity unlocking	—			4			(2		)	—			2			—			2			2
Included in realized gains	—			2			—			—			2			—			2			2
Foreign currency translation	(1		)	—			—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			—			365			365			365
Balance at December 31, 2013	211			875			149			85			1,109			(345		)	764			975

Additions	497			198			8			—			206			—			206			703
Amortization:
Periodic amortization	(485		)	(130		)	(26		)	(11		)	(167		)	—			(167		)	(652		)
Annuity unlocking	—			(20		)	—			—			(20		)	—			(20		)	(20		)
Included in realized gains	—			2			1			—			3			—			3			3
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			(186		)	(186		)	(186		)
Balance at December 31, 2014	221			925			132			74			1,131			(531		)	600			821

Additions	519			224			11			—			235			—			235			754
Amortization:
Periodic amortization	(511		)	(162		)	(26		)	(11		)	(199		)	—			(199		)	(710		)
Annuity unlocking	—			31			4			—			35			—			35			35
Included in realized gains	—			8			1			—			9			—			9			9
Sale of subsidiaries	—			(8		)	(3		)	(8		)	(19		)	—			(19		)	(19		)
Foreign currency translation	(3		)	—			—			—			—			—			—			(3		)
Change in unrealized	—			—			—			—			—			297			297			297
Balance at December 31, 2015	$	226		$	1,018		$	119		$	55		$	1,192		$	(234	)	$	958		$	1,184

The present value of future profits (“PVFP”) amounts in the table above are net of $220 million and $209 million of accumulated amortization at December 31, 2015 and 2014, respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-sixth of the balance at the beginning of each respective year.