Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2020

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, 2020	$	296	$	1,342	$	73	$	33	$	1,448	$	(926)	$	522	$	818
Additions	142		33		—		—		33		—		33		175
Amortization:
Periodic amortization	(170)		(39)		(2)		(1)		(42)		—		(42)		(212)
Annuity unlocking	—		(118)		4		—		(114)		—		(114)		(114)
Included in realized gains	—		(2)		—		—		(2)		—		(2)		(2)
Foreign currency translation	1		—		—		—		—		—		—		1
Change in unrealized	—		—		—		—		—		(169)		(169)		(169)
Balance at September 30, 2020	$	269	$	1,216	$	75	$	32	$	1,323	$	(1,095)	$	228	$	497
Balance at June 30, 2019	$	330	$	1,373	$	81	$	38	$	1,492	$	(619)	$	873	$	1,203
Additions	188		43		1		—		44		—		44		232
Amortization:
Periodic amortization	(194)		(29)		(3)		(1)		(33)		—		(33)		(227)
Annuity unlocking	—		(76)		(1)		—		(77)		—		(77)		(77)
Included in realized gains	—		3		—		—		3		—		3		3
Foreign currency translation	(1)		—		—		—		—		—		—		(1)
Change in unrealized	—		—		—		—		—		(169)		(169)		(169)
Balance at September 30, 2019	$	323	$	1,314	$	78	$	37	$	1,429	$	(788)	$	641	$	964
Balance at December 31, 2019	$	322	$	1,303	$	75	$	36	$	1,414	$	(699)	$	715	$	1,037
Additions	448		112		1		—		113		—		113		561
Amortization:
Periodic amortization	(500)		(87)		(6)		(4)		(97)		—		(97)		(597)
Annuity unlocking	—		(118)		4		—		(114)		—		(114)		(114)
Included in realized gains	—		6		1		—		7		—		7		7
Foreign currency translation	(1)		—		—		—		—		—		—		(1)
Change in unrealized	—		—		—		—		—		(396)		(396)		(396)
Balance at September 30, 2020	$	269	$	1,216	$	75	$	32	$	1,323	$	(1,095)	$	228	$	497
Balance at December 31, 2018	$	299	$	1,285	$	86	$	42	$	1,413	$	(30)	$	1,383	$	1,682
Additions	569		163		2		—		165		—		165		734
Amortization:
Periodic amortization	(544)		(63)		(10)		(5)		(78)		—		(78)		(622)
Annuity unlocking	—		(76)		(1)		—		(77)		—		(77)		(77)
Included in realized gains	—		5		1		—		6		—		6		6
Foreign currency translation	(1)		—		—		—		—		—		—		(1)
Change in unrealized	—		—		—		—		—		(758)		(758)		(758)
Balance at September 30, 2019	$	323	$	1,314	$	78	$	37	$	1,429	$	(788)	$	641	$	964

(*)Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges.

The present value of future profits (“PVFP”) amounts in the table above are net of $158 million and $154 million of accumulated amortization at September 30, 2020 and December 31, 2019, respectively.