Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2012

Deferred Policy Acquisition Costs

(4)  Deferred Policy Acquisition Costs

Effective January 1, 2012, the Corporation adopted new guidance related to the accounting for costs associated with acquiring or renewing insurance contracts. The accounting change has been retrospectively applied; accordingly, prior period amounts have been adjusted to reflect the change in accounting described in Note (2). Policy acquisition costs deferred and the related amortization reflected in operating results were as follows:

	Years Ended December 31
	2012			2011			2010
				(in millions)
Balance, beginning of year	$	1,210		$	1,142		$	1,113
Costs deferred during year
Commissions and brokerage		1,919			1,910			1,734
Premium taxes and assessments		247			235			232
Underwriting and policy issuance costs		248			248			247
		2,414			2,393			2,213
Foreign currency translation effect		(7	)		5			(1	)
Amortization during year		(2,411	)		(2,330	)		(2,183	)
Balance, end of year	$	1,206		$	1,210		$	1,142