Deferred Policy Acquisition Costs and Present Value of Future Profits

6 Months Ended

Jun. 30, 2011

Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract]

Deferred Policy Acquisition Costs and Present Value of Future Profits

6. Deferred Policy Acquisition Costs and Present Value of Future Profits

Changes in the DAC balance are as follows:

	2011			2010
Balance, January 1	$	9,857		$	10,686
Deferred Costs		1,306			1,338
Amortization — DAC		(1,439	)		(1,445	)
Amortization — DAC from discontinued operations		—			(7	)
Amortization — Unlock charge, pre-tax		(60	)		(137	)
Adjustments to unrealized gains and losses on securities available-for-sale and other		(87	)		(828	)
Effect of currency translation		7			82
Balance, June 30	$	9,584		$	9,689

The Unlock charge, pre-tax, for the six months ended June 30, 2011 consisted of a charge related to the impact of the macro hedge program, which includes an extension of existing hedging duration implemented in the second quarter of 2011 for U.S. annuity business, and a benefit from actual separate account returns for the six months ended June 30, 2011 being above the Company’s aggregated estimated return. The Unlock charge, pre-tax, for the six months ended June 30, 2010 consisted of a charge due to the macro hedge program and a charge from actual separate account returns for the six months ended June 30, 2010 being below the Company’s aggregated estimated return.