Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2013

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

11.  Deferred Policy Acquisition and Sales Inducement Costs

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

($ in millions)		2013		2012		2011
Balance, beginning of year	$	1,834	$	2,165	$	2,526
Acquisition costs deferred		254		262		241
Amortization charged to income		(240)		(324)		(430)
Effect of unrealized gains and losses		226		(269)		(172)
Classified as held for sale		(743)		--		--
Balance, end of year	$	1,331	$	1,834	$	2,165

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

($ in millions)		2013		2012		2011
Balance, beginning of year	$	41	$	41	$	86
Sales inducements deferred		24		22		7
Amortization charged to income		(7)		(14)		(23)
Effect of unrealized gains and losses		12		(8)		(29)
Classified as held for sale		(28)		--		--
Balance, end of year	$	42	$	41	$	41