Deferred Policy Acquisition Costs

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



	P&C			Annuity and Other
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized (*)			Total			Total
Balance at March 31, 2018	$	279		$	1,208		$	97		$	47		$	1,352		$	(214	)	$	1,138		$	1,417
Additions	181			70			1			—			71			—			71			252
Amortization:
Periodic amortization	(160		)	(66		)	(5		)	(2		)	(73		)	—			(73		)	(233		)
Annuity unlocking	—			28			1			—			29			—			29			29
Included in realized gains	—			3			—			—			3			—			3			3
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			116			116			116
Balance at June 30, 2018	$	298		$	1,243		$	94		$	45		$	1,382		$	(98	)	$	1,284		$	1,582

Balance at March 31, 2017	$	243		$	1,137		$	105		$	44		$	1,286		$	(324	)	$	962		$	1,205
Additions	151			66			1			—			67			—			67			218
Amortization:
Periodic amortization	(136		)	(36		)	(4		)	(2		)	(42		)	—			(42		)	(178		)
Included in realized gains	—			—			1			—			1			—			1			1
Foreign currency translation	—			—			—			—			—			—			—			—
Change in unrealized	—			—			—			—			—			(90		)	(90		)	(90		)
Balance at June 30, 2017	$	258		$	1,167		$	103		$	42		$	1,312		$	(414	)	$	898		$	1,156

Balance at December 31, 2017	$	270		$	1,217		$	102		$	49		$	1,368		$	(422	)	$	946		$	1,216
Additions	343			127			1			—			128			—			128			471
Amortization:
Periodic amortization	(314		)	(135		)	(10		)	(4		)	(149		)	—			(149		)	(463		)
Annuity unlocking	—			28			1			—			29			—			29			29
Included in realized gains	—			6			—			—			6			—			6			6
Foreign currency translation	(1		)	—			—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			—			324			324			324
Balance at June 30, 2018	$	298		$	1,243		$	94		$	45		$	1,382		$	(98	)	$	1,284		$	1,582

Balance at December 31, 2016	$	238		$	1,110		$	110		$	46		$	1,266		$	(265	)	$	1,001		$	1,239
Additions	290			133			2			—			135			—			135			425
Amortization:
Periodic amortization	(271		)	(78		)	(10		)	(4		)	(92		)	—			(92		)	(363		)
Included in realized gains	—			2			1			—			3			—			3			3
Foreign currency translation	1			—			—			—			—			—			—			1
Change in unrealized	—			—			—			—			—			(149		)	(149		)	(149		)
Balance at June 30, 2017	$	258		$	1,167		$	103		$	42		$	1,312		$	(414	)	$	898		$	1,156


(*)	Unrealized adjustments to DPAC includes net unrealized gains/losses on securities and net unrealized gains/losses on cash flow hedges.

The present value of future profits (“PVFP”) amounts in the table above are net of $145 million and $141 million of accumulated amortization at June 30, 2018 and December 31, 2017, respectively.