Deferred Policy Acquisition Costs

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023 (dollars in millions): 

For the nine months ended September 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	899		6		56		117
Amortization expense	(121)		(8)		(36)		(44)
Foreign currency translation	(2)		(4)		12		(1)
Balance, end of period	$	2,967	$	167	$	379	$	1,170

For the nine months ended September 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	183		7		75		94
Amortization expense	(111)		(9)		(28)		(44)
Foreign currency translation	1		—		(10)		(24)
Balance, end of period	$	2,160	$	169	$	331	$	1,069

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

For the nine months ended September 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		—		—		67
Amortization expense	(44)		—		—		(33)
Other	(14)		—		—		—
Foreign currency translation	—		—		—		1
Balance, end of period	$	495	$	—	$	—	$	285

For the nine months ended September 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	—		—		—		89
Amortization expense	(32)		—		—		(24)
Foreign currency translation	—		—		—		(6)
Balance, end of period	$	309	$	—	$	—	$	247

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

	September 30,
	2024		2023
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	2,967	$	2,160
Canada	167		169
Europe, Middle East and Africa	379		331
Asia Pacific	1,170		1,069
Financial Solutions:
U.S. and Latin America	495		309
Canada	—		—
Europe, Middle East and Africa	—		—
Asia Pacific	285		247
Other long-duration business:
Corporate and Other	14		4
Total deferred policy acquisition costs	$	5,477	$	4,289