Deferred Acquisition Costs and Deferred Sales Inducement Costs

3 Months Ended

Mar. 31, 2013

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:

	2013			2012
	(in millions)
Balance at January 1	$	2,399		$	2,440
Capitalization of acquisition costs	78			82
Amortization	(75		)	(31		)
Impact of change in net unrealized securities losses (gains)	33			(19		)
Balance at March 31	$	2,435		$	2,472

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

	2013			2012
	(in millions)
Balance at January 1	$	404		$	464
Capitalization of sales inducement costs	2			2
Amortization	(12		)	(2		)
Impact of change in net unrealized securities losses (gains)	3			(4		)
Balance at March 31	$	397		$	460