Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2024

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

DEFERRED POLICY ACQUISITION COSTS

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Traditional business for the years ended December 31, 2024 and 2023 (dollars in millions): 

For the year ended December 31, 2024:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	2,191	$	173	$	347	$	1,098
Capitalization	970		9		70		167
Amortization expense	(174)		(11)		(49)		(58)
Foreign currency translation	(1)		(14)		(14)		(29)
Balance, end of period	$	2,986	$	157	$	354	$	1,178

For the year ended December 31, 2023:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	2,087	$	171	$	294	$	1,043
Capitalization	248		9		100		121
Amortization expense	(145)		(12)		(50)		(59)
Foreign currency translation	1		5		3		(7)
Balance, end of period	$	2,191	$	173	$	347	$	1,098

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the years ended December 31, 2024 and 2023 (dollars in millions):

For the year ended December 31, 2024:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Balance, beginning of year	$	552	$	—	$	—	$	250
Capitalization	6		21		—		122
Amortization expense	(52)		—		—		(45)
Foreign currency translation	—		(1)		—		(3)
Balance, end of period	$	506	$	20	$	—	$	324

For the year ended December 31, 2023:	U.S. and Latin America – Financial Solutions		Canada – Financial Solutions		Europe, Middle East and Africa – Financial Solutions		Asia Pacific – Financial Solutions
Balance, beginning of year	$	341	$	—	$	—	$	188
Capitalization	259		—		—		99
Amortization expense	(48)		—		—		(33)
Foreign currency translation	—		—		—		(4)
Balance, end of period	$	552	$	—	$	—	$	250

The reconciliation of deferred policy acquisition costs to the consolidated balance sheets as of December 31, 2024 and 2023 is as follows (dollars in millions):

	December 31,
	2024		2023
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	2,986	$	2,191
Canada	157		173
Europe, Middle East and Africa	354		347
Asia Pacific	1,178		1,098
Financial Solutions:
U.S. and Latin America	506		552
Canada	20		—
Europe, Middle East and Africa	—		—
Asia Pacific	324		250
Other long-duration business:
Corporate and Other	18		6
Total deferred policy acquisition costs	$	5,543	$	4,617