DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2019

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC

Years Ended December 31,
(in millions)		2019		2018		2017
Balance, beginning of year	$	12,694	$	10,994	$	11,042
Acquisitions		-		298		-
Dispositions		-		-		(35)
Acquisition costs deferred		5,403		5,832		4,820
Amortization expense		(5,164)		(5,386)		(4,288)
Change related to unrealized appreciation (depreciation) of investments		(1,768)		1,063		(505)
Other, including foreign exchange		42		(107)		(40)
Reclassified to Assets held for sale		-		-		-
Balance, end of year(a)	$	11,207	$	12,694	$	10,994
Supplemental Information:
VOBA amortization expense included in DAC amortization	$	171	$	243	$	20
VOBA, end of year included in DAC balance(b)		317		438		381

(a)Net of reductions in DAC of $1.8 billion, $1.0 billion and $1.3 billion at December 31, 2019, 2018 and 2017, 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 in 2018, the majority of which was amortized in 2019.