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Deferred Policy Acquisition Costs
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Deferred Policy Acquisition Costs
9. Deferred Policy Acquisition Costs
DAC represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such DAC generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. Commissions that are not deferred to DAC are recorded in General operating and other expenses in the Condensed Consolidated Statements of Income (Loss).
We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates.
DAC for all contracts, except for those with limited to no exposure to policyholder behavior risk, (i.e., certain investment contracts), is grouped and amortized on a constant level basis over the expected term of the related contracts.
The following table presents a rollforward of DAC:
Three Months Ended March 31, 2024General
Insurance		Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
(in millions)Total
Balance, beginning of year$2,075 $4,735 $1,056 $4,149 $70 $12,085 
Capitalization882 170 22 134 13 1,221 
Amortization expense(828)(148)(21)(104)(3)(1,104)
Other, including foreign exchange(56)— — (7)— (63)
Reclassified to held for sale*(1)— — (27)— (28)
Balance, end of period$2,072 $4,757 $1,057 $4,145 $80 $12,111 
Three Months Ended March 31, 2023
Balance, beginning of year$2,310 $4,597 $1,060 $4,839 $51 $12,857 
Capitalization1,358 187 20 120 4 1,689 
Amortization expense(1,034)(137)(21)(99)(2)(1,293)
Other, including foreign exchange40 — — 11 — 51 
Balance, end of period$2,674 $4,647 $1,059 $4,871 $53 $13,304 
*Represents changes in DAC included in Assets held for sale. For additional information, see Note 4.
DEFERRED SALES INDUCEMENTS
We offer DSI which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. To qualify for accounting treatment as an asset, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest and are higher than the contracts’ expected ongoing crediting rates for periods after the bonus period. DSI is reported in Other assets, while amortization related to DSI is recorded in Interest credited to policyholder account balances. DSI amounts are deferred and amortized on a constant level basis over the life of the contract consistent with DAC.
The following table presents a rollforward of DSI:
Three Months Ended March 31,20242023
(in millions)Individual
Retirement		Group
Retirement		TotalIndividual
Retirement		Group
Retirement		Total
Balance, beginning of year$333 $164 $497 $381 $177 $558 
Capitalization1 — 1 2 — 2 
Amortization expense(13)(3)(16)(14)(3)(17)
Balance, end of period*$321 $161 $482 $369 $174 $543 
*At March 31, 2024 and 2023, Other assets, excluding DSI, totaled $11.8 billion and $12.4 billion, respectively.