Deferred Acquisition Costs and Deferred Sales Inducement Costs

6 Months Ended

Jun. 30, 2018

Deferred Charges, Insurers [Abstract]

Deferred acquisition costs and deferred sales inducement costs [Text Block]

Deferred Acquisition Costs and Deferred Sales Inducement Costs

The balances of and changes in deferred acquisition costs (“DAC”) were as follows:

	2018			2017
	(in millions)
Balance at January 1	$	2,676		$	2,648
Capitalization of acquisition costs	164			145
Amortization	(155		)	(141		)
Impact of change in net unrealized securities (gains) losses	83			(15		)
Balance at June 30	$	2,768		$	2,637

The balances of and changes in deferred sales inducement costs (“DSIC”), which is included in other assets, were as follows:

	2018			2017
	(in millions)
Balance at January 1	$	276		$	302
Capitalization of sales inducement costs	1			3
Amortization	(20		)	(19		)
Impact of change in net unrealized securities (gains) losses	14			—
Balance at June 30	$	271		$	286