Deferred Policy Acquisition Costs

6 Months Ended

Jun. 30, 2020

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

A progression of deferred policy acquisition costs is presented below (in millions):

	P&C		Annuity and Other
	Deferred		Deferred		Sales										Consolidated
	Costs		Costs		Inducements		PVFP		Subtotal		Unrealized (*)		Total		Total
Balance at March 31, 2020	$	310	$	1,264	$	73	$	34	$	1,371	$	(108)	$	1,263	$	1,573
Additions	148		30		—		—		30		—		30		178
Amortization:
Periodic amortization	(160)		50		(1)		(1)		48		—		48		(112)
Included in realized gains	—		(2)		1		—		(1)		—		(1)		(1)
Foreign currency translation	(2)		—		—		—		—		—		—		(2)
Change in unrealized	—		—		—		—		—		(818)		(818)		(818)
Balance at June 30, 2020	$	296	$	1,342	$	73	$	33	$	1,448	$	(926)	$	522	$	818
Balance at March 31, 2019	$	312	$	1,336	$	84	$	40	$	1,460	$	(325)	$	1,135	$	1,447
Additions	194		56		—		—		56		—		56		250
Amortization:
Periodic amortization	(175)		(19)		(4)		(2)		(25)		—		(25)		(200)
Included in realized gains	—		—		1		—		1		—		1		1
Foreign currency translation	(1)		—		—		—		—		—		—		(1)
Change in unrealized	—		—		—		—		—		(294)		(294)		(294)
Balance at June 30, 2019	$	330	$	1,373	$	81	$	38	$	1,492	$	(619)	$	873	$	1,203
Balance at December 31, 2019	$	322	$	1,303	$	75	$	36	$	1,414	$	(699)	$	715	$	1,037
Additions	306		79		1		—		80		—		80		386
Amortization:
Periodic amortization	(330)		(48)		(4)		(3)		(55)		—		(55)		(385)
Included in realized gains	—		8		1		—		9		—		9		9
Foreign currency translation	(2)		—		—		—		—		—		—		(2)
Change in unrealized	—		—		—		—		—		(227)		(227)		(227)
Balance at June 30, 2020	$	296	$	1,342	$	73	$	33	$	1,448	$	(926)	$	522	$	818
Balance at December 31, 2018	$	299	$	1,285	$	86	$	42	$	1,413	$	(30)	$	1,383	$	1,682
Additions	381		120		1		—		121		—		121		502
Amortization:
Periodic amortization	(350)		(34)		(7)		(4)		(45)		—		(45)		(395)
Included in realized gains	—		2		1		—		3		—		3		3
Foreign currency translation	—		—		—		—		—		—		—		—
Change in unrealized	—		—		—		—		—		(589)		(589)		(589)
Balance at June 30, 2019	$	330	$	1,373	$	81	$	38	$	1,492	$	(619)	$	873	$	1,203

(*)Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges.

The present value of future profits (“PVFP”) amounts in the table above are net of $157 million and $154 million of accumulated amortization at June 30, 2020 and December 31, 2019, respectively.