Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2019

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

Note 11 Deferred Policy Acquisition and Sales Inducement Costs

Deferred policy acquisition costs activity
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	4,784		$	4,191		$	3,954
SquareTrade acquisition	—			—			66
Acquisition costs deferred	5,622			5,663			5,001
Amortization charged to income	(5,533		)	(5,222		)	(4,784		)
Effect of unrealized gains and losses	(174		)	152			(46		)
Balance, end of year	$	4,699		$	4,784		$	4,191

Deferred sales inducement costs activity (1)
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	34		$	36		$	40
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(2		)	2			—
Balance, end of year	$	27		$	34		$	36

⁽¹⁾ 

Deferred sales inducement costs primarily relate to fixed annuities and interest-sensitive life contracts and are recorded as part of other assets on the Consolidated Statements of Financial Position.