Deferred acquisition costs

6 Months Ended

Jun. 30, 2023

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

Deferred acquisition costs

Deferred acquisition costs comprise capitalized costs on short-duration contracts of $3,201 million and $2,876 million and long-duration contracts of $3,465 million and $2,929 million at June 30, 2023, and June 30, 2022, respectively. The assumptions used to amortize DAC were consistent with the assumptions used to estimate the liability for future policy benefits for nonparticipating traditional and limited-payment contracts.

The following tables present a roll-forward of deferred acquisitions costs on long-duration contracts included in the Life Insurance segment:

	Six Months Ended June 30, 2023
(in millions of U.S. dollars)	Term Life		Universal Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	320	$	776	$	395	$	902	$	121	$	2,514
Capitalizations	75		54		62		246		7		444
Amortization expense	(49)		(38)		(11)		(63)		(10)		(171)
Other (including foreign exchange)	10		11		10		(4)		—		27
Balance - end of period	$	356	$	803	$	456	$	1,081	$	118	$	2,814
Overseas General Insurance segment excluded from table											651
Total deferred acquisition costs on long-duration contracts											$	3,465

	Six Months Ended June 30, 2022
(in millions of U.S. dollars)	Term Life		Universal Life		Whole Life		A&H		Other		Total
Balance – beginning of period	$	246	$	771	$	334	$	745	$	108	$	2,204
Capitalizations	72		58		19		50		29		228
Amortization expense	(36)		(37)		(9)		(47)		(10)		(139)
Other (including foreign exchange)	1		(27)		(8)		(8)		(9)		(51)
Balance - end of period	$	283	$	765	$	336	$	740	$	118	$	2,242
Overseas General Insurance segment excluded from table											687
Total deferred acquisition costs on long-duration contracts											$	2,929