Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition and Sales Inducement Costs

Schedule of deferred policy acquisition costs

Deferred policy acquisition costs for the years ended December 31 are as follows:

($ in millions)	2016			2015			2014
Balance, beginning of year	$	1,314		$	1,271		$	1,331
Classified as held for sale, beginning balance	—			—			743
Total, including those classified as held for sale	1,314			1,271			2,074
Acquisition costs deferred	79			124			163
Amortization charged to income	(134		)	(151		)	(162		)
Effect of unrealized gains and losses	(72		)	99			(97		)
Reinsurance ceded (1)	—			(29		)	—
Sold in LBL disposition	—			—			(707		)
Balance, end of year	$	1,187		$	1,314		$	1,271

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⁽¹⁾  In 2015, DAC decreased as a result of a reinsurance agreement with AAC.

Schedule of DSI activity for Allstate Financial

DSI activity, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:

($ in millions)	2016			2015			2014
Balance, beginning of year	$	45		$	44		$	42
Classified as held for sale, beginning balance	—			—			28
Total, including those classified as held for sale	45			44			70
Sales inducements deferred	1			3			4
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(1		)	2			(3		)
Sold in LBL disposition	—			—			(23		)
Balance, end of year	$	40		$	45		$	44