Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2012

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

11.   Deferred Policy Acquisition and Sales Inducement Costs

       Deferred policy acquisition costs for the years ended December 31 are as follows:

	2012
($ in millions)	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	2,523		$	1,348		$	3,871
Acquisition costs deferred		371			3,531			3,902
Amortization charged to income		(401	)		(3,483	)		(3,884	)
Effect of unrealized gains and losses		(268	)		—			(268	)
Balance, end of year	$	2,225		$	1,396		$	3,621

	2011
($ in millions)	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	2,859		$	1,321		$	4,180
Esurance acquisition present value of future profits		—			42			42
Acquisition costs deferred		333			3,462			3,795
Amortization charged to income		(494	)		(3,477	)		(3,971	)
Effect of unrealized gains and losses		(175	)		—			(175	)
Balance, end of year	$	2,523		$	1,348		$	3,871

	2010
	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	3,398		$	1,355		$	4,753
Acquisition costs deferred		385			3,483			3,868
Amortization charged to income		(290	)		(3,517	)		(3,807	)
Effect of unrealized gains and losses		(634	)		—			(634	)
Balance, end of year	$	2,859		$	1,321		$	4,180

       DSI activity for Allstate Financial, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:

($ in millions)	2012			2011			2010
Balance, beginning of year	$	41		$	86		$	195
Sales inducements deferred		22			7			14
Amortization charged to income		(14	)		(23	)		(27	)
Effect of unrealized gains and losses		(8	)		(29	)		(96	)
Balance, end of year	$	41		$	41		$	86