DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2015

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2015		2014		2013
Non-Life Insurance Companies:
Balance, beginning of year	$	2,551	$	2,493	$	2,342
Acquisition costs deferred		4,537		4,805		4,803
Amortization expense		(4,313)		(4,599)		(4,481)
Other		(144)		(148)		(171)
Balance, end of year	$	2,631	$	2,551	$	2,493
Life Insurance Companies:
Balance, beginning of year	$	7,258	$	6,920	$	5,815
Acquisition costs deferred		1,288		1,114		1,034
Amortization expense		(916)		(727)		(674)
Change in net unrealized gains (losses) on securities		848		(360)		784
Decrease due to foreign exchange		(34)		(32)		(39)
Other		23		343		-
Balance, end of year	$	8,467	$	7,258	$	6,920
Consolidation and eliminations		17		18		23
Total deferred policy acquisition costs*	$	11,115	$	9,827	$	9,436
Supplemental Information:
VOBA amortization expense included in Life Insurance Companies DAC amortization		64		17		23
VOBA, end of year included in Life Insurance Companies DAC balance		453		510		373

*Net of reductions in DAC of $583million, $1.4billion, and $1.1 billion for Life Insurance Companies at December 31,2015, 2014 and 2013, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).