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Deferred Policy Acquisition Costs
 12 Months Ended
Dec. 31, 2020
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred Policy Acquisition Costs DEFERRED POLICY ACQUISITION COSTS
The following reflects the amounts of policy acquisition costs deferred and amortized (dollars in millions): 
Years ended December 31,202020192018
Balance, beginning of year$3,512 $3,398 $3,240 
Capitalization478 526 608 
Amortization (including interest)(405)(315)(438)
Change in value of embedded derivatives22 (15)14 
Attributed to unrealized investment gains (losses)(26)(97)27 
Foreign currency translation35 15 (53)
Balance, end of year$3,616 $3,512 $3,398 
Some reinsurance agreements involve reimbursing the ceding company for allowances and commissions in excess of first-year premiums. These amounts represent acquisition costs and are capitalized to the extent deemed recoverable from the future premiums and amortized against future profits of the business. This type of agreement presents a risk to the extent that the business lapses faster than originally anticipated, resulting in future profits being insufficient to recover the Company’s investment.