Deferred Policy Acquisition Costs and Value of Business Acquired

6 Months Ended

Jun. 30, 2012

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 value of business acquired (“VOBA”) was as follows:

	Six Months Ended June 30,
	2012									2011
	DAC			VOBA			Total			DAC			VOBA			Total
	(In millions)
Balance, beginning of period	$	15,240		$	9,379		$	24,619		$	13,377		$	11,088		$	24,465
Capitalizations		2,679			—			2,679			2,631			—			2,631
Subtotal		17,919			9,379			27,298			16,008			11,088			27,096
Amortization related to:
Net investment gains (losses)		(62	)		(3	)		(65	)		(87	)		1			(86	)
Other expenses		(1,442	)		(686	)		(2,128	)		(1,195	)		(912	)		(2,107	)
Total amortization		(1,504	)		(689	)		(2,193	)		(1,282	)		(911	)		(2,193	)
Unrealized investment gains (losses)		(285	)		(125	)		(410	)		(124	)		(74	)		(198	)
Effect of foreign currency translation and other		(55	)		(135	)		(190	)		137			392			529
Balance, end of period	$	16,075		$	8,430		$	24,505		$	14,739		$	10,495		$	25,234

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.

See Note 1 for information on the retrospective application of the adoption of new accounting guidance related to DAC.

Information regarding DAC and VOBA by segment, as well as Corporate & Other, was as follows:

	DAC				VOBA				Total
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
	(In millions)
Retail	$	10,182	$	10,103	$	1,010	$	1,211	$	11,192	$	11,314
Group, Voluntary & Worksite Benefits		759		744		—		—		759		744
Corporate Benefit Funding		88		86		2		3		90		89
Latin America		769		693		355		357		1,124		1,050
Asia		3,181		2,647		6,027		6,553		9,208		9,200
EMEA		1,095		966		1,036		1,254		2,131		2,220
Corporate & Other		1		1		—		1		1		2
Total	$	16,075	$	15,240	$	8,430	$	9,379	$	24,505	$	24,619