DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

12 Months Ended

Dec. 31, 2019

Deferred Policy Acquisition Costs Disclosures [Abstract]

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES

Consolidated policy acquisition costs deferred were $1.5 billion in 2019, 2018 and 2017. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.

	2019								2018
(In millions)	Japan				U.S.				Japan				U.S.
Deferred policy acquisition costs:
Balance, beginning of year		$	6,384			$	3,491			$	6,150			$	3,355
Capitalization		825				626				833				669
Amortization		(709		)		(573		)		(710		)		(534		)
Foreign currency translation and other		84				0				111				1
Balance, end of year		$	6,584			$	3,544			$	6,384			$	3,491

Commissions deferred as a percentage of total acquisition costs deferred were 74% in 2019, compared with 72% in both 2018 and 2017.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 57% in 2019, compared with 54% in 2018 and 56% in 2017. Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31:

(In millions)	2019			2018			2017
Advertising expense:
Aflac Japan		$	101		$	108		$	100
Aflac U.S.		118			110			110
Total advertising expense		$	219		$	218		$	210

Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:

(In millions)	2019			2018			2017
Depreciation expense		$	40		$	48		$	50
Other amortization expense		1			1			3
Total depreciation and other amortization expense		$	41		$	49		$	53