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Deferred Policy Acquisition Costs
 12 Months Ended
Dec. 31, 2019
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred Policy Acquisition Costs DEFERRED POLICY ACQUISITION COSTS
The following reflects the amounts of policy acquisition costs deferred and amortized (dollars in millions):
 
Years ended December 31,
 
2019
 
2018
 
2017
Balance, beginning of year
 
$
3,398

 
$
3,240

 
$
3,339

Capitalization
 
526

 
608

 
348

Amortization (including interest)
 
(315
)
 
(438
)
 
(433
)
Change in value of embedded derivatives
 
(15
)
 
14

 
(70
)
Attributed to unrealized investment gains (losses)
 
(97
)
 
27

 
(8
)
Foreign currency translation
 
15

 
(53
)
 
64

Balance, end of year
 
$
3,512

 
$
3,398

 
$
3,240


Some reinsurance agreements involve reimbursing the ceding company for allowances and commissions in excess of first-year premiums. These amounts represent acquisition costs and are capitalized to the extent deemed recoverable from the future premiums and amortized against future profits of the business. This type of agreement presents a risk to the extent that the business lapses faster than originally anticipated, resulting in future profits being insufficient to recover the Company’s investment.