Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2013

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

12.  Deferred Policy Acquisition and Sales Inducement Costs

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

	2013
($ in millions)	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	2,225		$	1,396		$	3,621
Acquisition costs deferred		364			3,903			4,267
Amortization charged to income		(328	)		(3,674	)		(4,002	)
Effect of unrealized gains and losses		229			—			229
Classified as held for sale		(743	)		—			(743	)
Balance, end of year	$	1,747		$	1,625		$	3,372

	2012
	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
	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

       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)	2013			2012			2011
Balance, beginning of year	$	41		$	41		$	86
Sales inducements deferred		24			22			7
Amortization charged to income		(7	)		(14	)		(23	)
Effect of unrealized gains and losses		12			(8	)		(29	)
Classified as held for sale		(28	)		—			—
Balance, end of year	$	42		$	41		$	41