Deferred Acquisition Costs and Deferred Sales Inducement Costs

6 Months Ended

Jun. 30, 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	167			156
Amortization	(167		)	(130		)
Impact of change in net unrealized securities losses (gains)	107			(35		)
Balance at June 30	$	2,506		$	2,431

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	3			4
Amortization	(30		)	(22		)
Impact of change in net unrealized securities losses (gains)	15			(6		)
Balance at June 30	$	392		$	440