DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2016

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2016		2015		2014
Balance, beginning of year	$	11,115	$	9,828	$	9,436
Dispositions		(110)		-		-
Acquisition costs deferred		5,216		5,825		5,919
Amortization expense		(4,521)		(5,236)		(5,330)
Change in net unrealized gains (losses) on securities		(259)		848		(360)
Other, including foreign exchange		72		(150)		163
Reclassified to Assets held for sale		(471)		-		-
Balance, end of year*	$	11,042	$	11,115	$	9,828
Supplemental Information:
VOBA amortization expense included in DAC amortization		40		64		17
VOBA, end of year included in DAC balance		393		453		510

* Net of reductions in DAC of $842million, $583million, and $1.4 billion at December 31,2016, 2015 and 2014, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).