Deferred Policy Acquisition Costs and Value of Business Acquired

9 Months Ended

Sep. 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 VOBA was as follows:

	Nine Months Ended September 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		3,981			—			3,981			4,158			—			4,158
Acquisitions		—			55			55			—			—			—
Subtotal		19,221			9,434			28,655			17,535			11,088			28,623
Amortization related to:
Net investment gains (losses)		(78	)		(1	)		(79	)		(465	)		(46	)		(511	)
Other expenses		(2,138	)		(984	)		(3,122	)		(2,049	)		(1,351	)		(3,400	)
Total amortization		(2,216	)		(985	)		(3,201	)		(2,514	)		(1,397	)		(3,911	)
Unrealized investment gains (losses)		(617	)		(221	)		(838	)		(402	)		(352	)		(754	)
Effect of foreign currency translation and other		73			(85	)		(12	)		(100	)		658			558
Balance, end of period	$	16,461		$	8,143		$	24,604		$	14,519		$	9,997		$	24,516

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. See also Note 17 for information on the continued realignment of certain products and businesses among the Company’s existing segments during the third quarter of 2012, which was retrospectively applied.

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

	DAC				VOBA				Total
	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011
	(In millions)
Retail	$	10,487	$	10,470	$	863	$	1,211	$	11,350	$	11,681
Group, Voluntary & Worksite Benefits		382		377		—		—		382		377
Corporate Benefit Funding		97		86		2		3		99		89
Latin America		838		693		362		357		1,200		1,050
Asia		3,796		2,990		5,855		6,564		9,651		9,554
EMEA		861		623		1,061		1,243		1,922		1,866
Corporate & Other		—		1		—		1		—		2
Total	$	16,461	$	15,240	$	8,143	$	9,379	$	24,604	$	24,619