Deferred Policy Acquisition Costs and Value of Business Acquired

12 Months Ended

Dec. 31, 2011

Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract]

Deferred Policy Acquisition Costs and Value of Business Acquired

6.  Deferred Policy Acquisition Costs and Value of Business Acquired

Information regarding DAC and VOBA was as follows:

	DAC			VOBA			Total
	(In millions)
Balance at January 1, 2009	$	16,510		$	3,491		$	20,001
Capitalizations		2,976			—			2,976
Subtotal		19,486			3,491			22,977
Amortization related to:
Net investment gains (losses)		625			87			712
Other expenses		(1,736	)		(265	)		(2,001	)
Total amortization		(1,111	)		(178	)		(1,289	)
Unrealized investment gains (losses)		(2,314	)		(505	)		(2,819	)
Effect of foreign currency translation and other		158			56			214
Balance at December 31, 2009		16,219			2,864			19,083
Capitalizations		3,299			—			3,299
Acquisitions		—			9,210			9,210
Subtotal		19,518			12,074			31,592
Amortization related to:
Net investment gains (losses)		(108	)		(16	)		(124	)
Other expenses		(2,225	)		(494	)		(2,719	)
Total amortization		(2,333	)		(510	)		(2,843	)
Unrealized investment gains (losses)		(1,258	)		(125	)		(1,383	)
Effect of foreign currency translation and other		77			(351	)		(274	)
Balance at December 31, 2010		16,004			11,088			27,092
Capitalizations		6,858			—			6,858
Acquisitions		—			11			11
Subtotal		22,862			11,099			33,961
Amortization related to:
Net investment gains (losses)		(523	)		(49	)		(572	)
Other expenses		(3,062	)		(1,757	)		(4,819	)
Total amortization		(3,585	)		(1,806	)		(5,391	)
Unrealized investment gains (losses)		(518	)		(361	)		(879	)
Effect of foreign currency translation and other		(167	)		447			280
Balance at December 31, 2011	$	18,592		$	9,379		$	27,971

See Note 2 for a description of acquisitions and dispositions.

The estimated future amortization expense allocated to other expenses for the next five years for VOBA is $1.3 billion in 2012, $1.1 billion in 2013, $917 million in 2014, $774 million in 2015 and $661 million in 2016.

Amortization of DAC and VOBA is attributed to both investment gains and losses and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized.

Information regarding DAC and VOBA by segment was as follows:

	DAC				VOBA				Total
	December 31,
	2011		2010		2011		2010		2011		2010
	(In millions)
U.S. Business:
Insurance Products	$	8,228	$	8,247	$	381	$	833	$	8,609	$	9,080
Retirement Products		4,659		4,706		830		1,094		5,489		5,800
Corporate Benefit Funding		101		74		3		1		104		75
Auto & Home		194		190		—		—		194		190
Total U.S. Business		13,182		13,217		1,214		1,928		14,396		15,145
International:
Japan		1,989		135		6,509		6,853		8,498		6,988
Other International Regions		3,420		2,650		1,655		2,306		5,075		4,956
Total International		5,409		2,785		8,164		9,159		13,573		11,944
Corporate & Other		1		2		1		1		2		3
Total	$	18,592	$	16,004	$	9,379	$	11,088	$	27,971	$	27,092