Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2017

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

Note 11 Deferred Policy Acquisition and Sales Inducement Costs

Deferred policy acquisition costs activity
	For the years ended December 31,
($ in millions)	2017			2016			2015
Balance, beginning of year	$	3,954		$	3,861		$	3,525
SquareTrade acquisition	66			—			—
Acquisition costs deferred	5,001			4,717			4,596
Amortization charged to income	(4,784		)	(4,550		)	(4,364		)
Effect of unrealized gains and losses	(46		)	(74		)	104
Balance, end of year	$	4,191		$	3,954		$	3,861

Deferred sales inducement costs activity (1)
	For the years ended December 31,
($ in millions)	2017			2016			2015
Balance, beginning of year	$	40		$	45		$	44
Sales inducements deferred	—			1			3
Amortization charged to income	(4		)	(5		)	(4		)
Effect of unrealized gains and losses	—			(1		)	2
Balance, end of year	$	36		$	40		$	45

⁽¹⁾  Deferred sales inducement costs primarily relate to fixed annuities and interest-sensitive life contracts.