DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2014

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2014		2013		2012
Non-Life Insurance Companies:
Balance, beginning of year	$	2,493	$	2,342	$	2,306
Acquisition costs deferred		4,805		4,803		4,834
Amortization expense		(4,599)		(4,481)		(4,764)
Other		(148)		(171)		(34)
Balance, end of year	$	2,551	$	2,493	$	2,342
Life Insurance Companies:
Balance, beginning of year	$	6,920	$	5,815	$	6,607
Acquisition costs deferred		1,114		1,034		788
Amortization expense		(727)		(674)		(945)
Change in net unrealized gains (losses) on securities		(360)		784		(621)
Decrease due to foreign exchange		(32)		(39)		(14)
Other		343		-		-
Balance, end of year	$	7,258	$	6,920	$	5,815
Consolidation and eliminations		18		23		25
Total deferred policy acquisition costs*	$	9,827	$	9,436	$	8,182
Supplemental Information:
VOBA amortization expense included in Life Insurance Companies DAC amortization		17		23		58
VOBA, end of year included in Life Insurance Companies DAC balance		510		373		368

*Net of reductions in DAC of $1.4billion, $1.1billion, and $1.8 billion for Life Insurance Companies at December 31, 2014, 2013 and 2012, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).