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Deferred Acquisition Costs and Deferred Sales Inducement Costs
 12 Months Ended
Dec. 31, 2019
Deferred Charges, Insurers [Abstract]  
Deferred acquisition costs and deferred sales inducement costs [Text Block] Deferred Acquisition Costs and Deferred Sales Inducement Costs
In the third quarter of the year, management updates market-related inputs and implements model changes related to the living benefit valuation. In addition, management conducts its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2019 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The impact of unlocking to DAC for the year ended December 31, 2018 primarily reflected updated mortality assumptions on UL and VUL insurance products and lower surrender rate assumptions on variable annuities, partially offset by an unfavorable impact from updates
to assumptions on utilization of guaranteed withdrawal benefits. The impact of unlocking to DAC for the year ended December 31, 2017 primarily reflected improved persistency and mortality on UL and VUL insurance products and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation.
The balances of and changes in DAC were as follows:
 
2019
 
2018
 
2017
(in millions)
Balance at January 1
$
2,776

 
$
2,676

 
$
2,648

Capitalization of acquisition costs
291

 
318

 
302

Amortization, excluding the impact of valuation assumptions review
(165
)
 
(355
)
 
(279
)
Amortization, impact of valuation assumptions review
(14
)
 
33

 
12

Impact of change in net unrealized (gains) losses on securities
(175
)
 
104

 
(7
)
Disposal of business
(15
)
 
—

 
—

Balance at December 31
$
2,698

 
$
2,776

 
$
2,676


The balances of and changes in DSIC, which is included in other assets, were as follows:
 
2019
 
2018
 
2017
(in millions)
Balance at January 1
$
251

 
$
276

 
$
302

Capitalization of sales inducement costs
1

 
2

 
4

Amortization, excluding the impact of valuation assumptions review
(15
)
 
(43
)
 
(35
)
Amortization, impact of valuation assumptions review
—

 
—

 
(1
)
Impact of change in net unrealized (gains) losses on securities
(19
)
 
16

 
6

Balance at December 31
$
218

 
$
251

 
$
276