Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Balance, beginning of year	$	947	$	1,232	$	1,156
Acquisition costs deferred	51		55		78
Amortization charged to income	(147)		(180)		(146)
Effect of unrealized gains and losses	(123)		(160)		144
Reinsurance assumed from AAC	245		—		—
Balance, end of year	$	973	$	947	$	1,232

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)	2020		2019		2018
Balance, beginning of year	$	27	$	34	$	36
Amortization charged to income	(5)		(5)		(4)
Effect of unrealized gains and losses	3		(2)		2
Balance, end of year	$	25	$	27	$	34