DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2018

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2018		2017		2016
Balance, beginning of year	$	10,994	$	11,042	$	11,115
Acquisitions		298		-		-
Dispositions		-		(35)		(110)
Acquisition costs deferred		5,832		4,820		5,216
Amortization expense		(5,386)		(4,288)		(4,521)
Change related to unrealized appreciation (depreciation) of investments		1,063		(505)		(259)
Other, including foreign exchange		(107)		(40)		72
Reclassified to Assets held for sale		-		-		(471)
Balance, end of year(a)	$	12,694	$	10,994	$	11,042
Supplemental Information:
VOBA amortization expense included in DAC amortization	$	243	$	20	$	40
VOBA, end of year included in DAC balance(b)		438		381		393

(a) Net of reductions in DAC of $1.0billion, $1.3billion, and $842million at December 31,2018, 2017 and 2016, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC).

(b) Includes $101 million of VOBA from the acquisition of Validus, the majority of which will be amortized within the next 12 to 18 months.