Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2017

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

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

($ in millions)	2017			2016			2015
Balance, beginning of year	$	1,187		$	1,314		$	1,271
Acquisition costs deferred	122			79			124
Amortization charged to income	(152		)	(134		)	(151		)
Effect of unrealized gains and losses	(46		)	(72		)	99
Reinsurance assumed from (ceded to)AAC	45			—			(29		)
Balance, end of year	$	1,156		$	1,187		$	1,314

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

($ in millions)	2017			2016			2015
Balance, beginning of year	$	40		$	45		$	44
Sales inducements deferred	—			1			3
Amortization charged to income	(4		)	(5		)	(4		)
Effect of unrealized gains and losses	—			(1		)	2
Balance, end of year	$	36		$	40		$	45