DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2017

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2017		2016		2015
Balance, beginning of year	$	11,042	$	11,115	$	9,828
Dispositions		(35)		(110)		-
Acquisition costs deferred		4,820		5,216		5,825
Amortization expense		(4,288)		(4,521)		(5,236)
Change in net unrealized gains (losses) on securities		(505)		(259)		848
Other, including foreign exchange		(40)		72		(150)
Reclassified to Assets held for sale		-		(471)		-
Balance, end of year*	$	10,994	$	11,042	$	11,115
Supplemental Information:
VOBA amortization expense included in DAC amortization		20		40		64
VOBA, end of year included in DAC balance		381		393		453

* Net of reductions in DAC of $1.3billion, $842million, and $583million at December 31,2017, 2016 and 2015, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).