Deferred Policy Acquisition Costs (Tables)

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Deferred Policy Acquisition Costs

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Traditional business for the three months ended March 31, 2024 and 2023 (dollars in millions): 

For the three months ended March 31, 2024:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	2,191	$	173	$	347	$	1,098
Capitalization	84		2		19		43
Amortization expense	(37)		(3)		(13)		(14)
Foreign currency translation	—		(4)		(6)		(16)
Balance, end of period	$	2,238	$	168	$	347	$	1,111

For the three months ended March 31, 2023:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	2,087	$	171	$	294	$	1,043
Capitalization	57		3		25		19
Amortization expense	(35)		(3)		(10)		(15)
Foreign currency translation	—		—		—		(3)
Balance, end of period	$	2,109	$	171	$	309	$	1,044

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the three months ended March 31, 2024 and 2023 (dollars in millions):

For the three months ended March 31, 2024:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Balance, beginning of year	$	552	$	—	$	—	$	250
Capitalization	1		—		—		20
Amortization expense	(15)		—		—		(10)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	538	$	—	$	—	$	259

For the three months ended March 31, 2023:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Balance, beginning of year	$	341	$	—	$	—	$	188
Capitalization	—		—		—		108
Amortization expense	(11)		—		—		(6)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	330	$	—	$	—	$	289

The reconciliation of deferred policy acquisition costs to the condensed consolidated balance sheets as of March 31, 2024 and 2023 is as follows (dollars in millions):

	March 31,
	2024		2023
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	2,238	$	2,109
Canada	168		171
Europe, Middle East and Africa	347		309
Asia Pacific	1,111		1,044
Financial Solutions:
U.S. and Latin America	538		330
Canada	—		—
Europe, Middle East and Africa	—		—
Asia Pacific	259		289
Other long-duration business:
Corporate and Other	12		5
Total deferred policy acquisition costs	$	4,673	$	4,257