Deferred Acquisition Costs and Deferred Sales Inducement Costs

6 Months Ended

Jun. 30, 2011

Deferred Acquisition Costs and Deferred Sales Inducement Costs

Deferred Acquisition Costs and Deferred Sales Inducement Costs

6.  Deferred Acquisition Costs and Deferred Sales Inducement Costs

The balances of and changes in DAC were as follows:

	2011			2010
	(in millions)
Balance at January 1	$	4,619		$	4,334
Capitalization of acquisition costs	249			233
Amortization	(254		)	(289		)
Impact of change in net unrealized securities gains	(32		)	(155		)
Balance at June 30	$	4,582		$	4,123

The balances of and changes in DSIC, which is included in other assets, were as follows:

	2011			2010
	(in millions)
Balance at January 1	$	545		$	524
Capitalization of sales inducement costs	5			26
Amortization	(30		)	(35		)
Impact of change in net unrealized securities gains	(5		)	(22		)
Balance at June 30	$	515		$	493