Deferred Policy Acquisition Costs

6 Months Ended

Jun. 30, 2025

Insurance [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 six months ended June 30, 2025 and 2024 (dollars in millions): 

For the six months ended June 30, 2025:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	2,986	$	157	$	354	$	1,178
Capitalization	151		7		74		89
Amortization expense	(113)		(6)		(27)		(33)
Foreign currency translation	1		9		42		30
Balance, end of period	$	3,025	$	167	$	443	$	1,264

For the six months ended June 30, 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	156		4		35		80
Amortization expense	(78)		(6)		(23)		(29)
Foreign currency translation	—		(5)		(5)		(21)
Balance, end of period	$	2,269	$	166	$	354	$	1,128

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the six months ended June 30, 2025 and 2024 (dollars in millions):

For the six months ended June 30, 2025:	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	$	506	$	20	$	—	$	324
Capitalization	38		—		—		76
Amortization expense	(32)		—		—		(27)
Foreign currency translation	—		1		—		2
Balance, end of period	$	512	$	21	$	—	$	375

For the six months ended June 30, 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	1		—		—		48
Amortization expense	(30)		—		—		(32)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	523	$	—	$	—	$	265

The reconciliation of deferred policy acquisition costs to the condensed consolidated balance sheets as of June 30, 2025 and 2024 is as follows (dollars in millions):

	June 30,
	2025		2024
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	3,025	$	2,269
Canada	167		166
Europe, Middle East and Africa	443		354
Asia Pacific	1,264		1,128
Financial Solutions:
U.S. and Latin America	512		523
Canada	21		—
Europe, Middle East and Africa	—		—
Asia Pacific	375		265
Other long-duration business:
Corporate and Other	16		15
Total deferred policy acquisition costs	$	5,823	$	4,720