Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2018

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															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized (*)			Total			Total
Balance at June 30, 2018	$	298		$	1,243		$	94		$	45		$	1,382		$	(98	)	$	1,284		$	1,582
Additions	181			65			1			—			66			—			66			247
Amortization:
Periodic amortization	(171		)	(58		)	(5		)	(2		)	(65		)	—			(65		)	(236		)
Included in realized gains	—			3			—			—			3			—			3			3
Foreign currency translation	—			—			—			—			—			—			—			—
Change in unrealized	—			—			—			—			—			73			73			73
Balance at September 30, 2018	$	308		$	1,253		$	90		$	43		$	1,386		$	(25	)	$	1,361		$	1,669
Balance at June 30, 2017	$	258		$	1,167		$	103		$	42		$	1,312		$	(414	)	$	898		$	1,156
Additions	149			44			1			—			45			—			45			194
Amortization:
Periodic amortization	(142		)	(44		)	(4		)	(2		)	(50		)	—			(50		)	(192		)
Included in realized gains	—			4			—			—			4			—			4			4
Foreign currency translation	1			—			—			—			—			—			—			1
Change in unrealized	—			—			—			—			—			(44		)	(44		)	(44		)
Balance at September 30, 2017	$	266		$	1,171		$	100		$	40		$	1,311		$	(458	)	$	853		$	1,119
Balance at December 31, 2017	$	270		$	1,217		$	102		$	49		$	1,368		$	(422	)	$	946		$	1,216
Additions	524			192			2			—			194			—			194			718
Amortization:
Periodic amortization	(485		)	(193		)	(15		)	(6		)	(214		)	—			(214		)	(699		)
Annuity unlocking	—			28			1			—			29			—			29			29
Included in realized gains	—			9			—			—			9			—			9			9
Foreign currency translation	(1		)	—			—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			—			397			397			397
Balance at September 30, 2018	$	308		$	1,253		$	90		$	43		$	1,386		$	(25	)	$	1,361		$	1,669
Balance at December 31, 2016	$	238		$	1,110		$	110		$	46		$	1,266		$	(265	)	$	1,001		$	1,239
Additions	439			177			3			—			180			—			180			619
Amortization:
Periodic amortization	(413		)	(122		)	(14		)	(6		)	(142		)	—			(142		)	(555		)
Included in realized gains	—			6			1			—			7			—			7			7
Foreign currency translation	2			—			—			—			—			—			—			2
Change in unrealized	—			—			—			—			—			(193		)	(193		)	(193		)
Balance at September 30, 2017	$	266		$	1,171		$	100		$	40		$	1,311		$	(458	)	$	853		$	1,119

(*) 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 $147 million and $141 million of accumulated amortization at September 30, 2018 and December 31, 2017, respectively.