Deferred Policy Acquisition Costs

6 Months Ended

Jun. 30, 2024

Insurance [Abstract]

Deferred Policy Acquisition Costs

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 six months ended June 30, 2024 and 2023 (dollars in millions): 

For the six months ended June 30, 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	156		4		35		80
Amortization expense	(78)		(6)		(23)		(29)
Foreign currency translation	—		(5)		(5)		(21)
Balance, end of period	$	2,269	$	166	$	354	$	1,128

For the six months ended June 30, 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	119		5		44		52
Amortization expense	(73)		(6)		(18)		(30)
Foreign currency translation	1		4		(2)		(15)
Balance, end of period	$	2,134	$	174	$	318	$	1,050

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the six months ended June 30, 2024 and 2023 (dollars in millions):

For the six months ended June 30, 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		—		—		48
Amortization expense	(30)		—		—		(32)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	523	$	—	$	—	$	265

For the six months ended June 30, 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	—		—		—		116
Amortization expense	(21)		—		—		(15)
Foreign currency translation	—		—		—		(4)
Balance, end of period	$	320	$	—	$	—	$	285

The reconciliation of deferred policy acquisition costs to the condensed consolidated balance sheets as of June 30, 2024 and 2023 is as follows (dollars in millions):

	June 30,
	2024		2023
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	2,269	$	2,134
Canada	166		174
Europe, Middle East and Africa	354		318
Asia Pacific	1,128		1,050
Financial Solutions:
U.S. and Latin America	523		320
Canada	—		—
Europe, Middle East and Africa	—		—
Asia Pacific	265		285
Other long-duration business:
Corporate and Other	15		5
Total deferred policy acquisition costs	$	4,720	$	4,286