Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2018

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)	2018			2017			2016
Balance, beginning of year	$	1,156		$	1,187		$	1,314
Acquisition costs deferred	78			122			79
Amortization charged to income	(146		)	(152		)	(134		)
Effect of unrealized gains and losses	144			(46		)	(72		)
Reinsurance assumed from AAC	—			45			—
Balance, end of year	$	1,232		$	1,156		$	1,187

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

($ in millions)	2018			2017			2016
Balance, beginning of year	$	36		$	40		$	45
Sales inducements deferred	—			—			1
Amortization charged to income	(4		)	(4		)	(5		)
Effect of unrealized gains and losses	2			—			(1		)
Balance, end of year	$	34		$	36		$	40