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Deferred Policy Acquisition Costs | 9 Months Ended
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Sep. 30, 2025
Deferred Costs [Abstract] |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income. The table below shows the deferred policy acquisition costs and asset reconciliation.
(Dollars in millions) | Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Property casualty: |  |  |  |  |  |  |
Deferred policy acquisition costs asset, beginning of period | $ | 1,005 |  |  | $ | 878 |  |  | $ | 886 |  |  | $ | 749 |
Capitalized deferred policy acquisition costs | 458 |  |  | 436 |  |  | 1,456 |  |  | 1,318 |
Amortized deferred policy acquisition costs | (469) |  |  | (427) |  |  | (1,348) |  |  | (1,180) |
Deferred policy acquisition costs asset, end of period | $ | 994 |  |  | $ | 887 |  |  | $ | 994 |  |  | $ | 887 |
Life: |  |  |  |  |  |  |
Deferred policy acquisition costs asset, beginning of period | $ | 362 |  |  | $ | 351 |  |  | $ | 356 |  |  | $ | 344 |
Capitalized deferred policy acquisition costs | 11 |  |  | 11 |  |  | 33 |  |  | 33 |
Amortized deferred policy acquisition costs | (7) |  |  | (8) |  |  | (23) |  |  | (23) |
Deferred policy acquisition costs asset, end of period | $ | 366 |  |  | $ | 354 |  |  | $ | 366 |  |  | $ | 354 |
Consolidated: |  |  |  |  |  |  |
Deferred policy acquisition costs asset, beginning of period | $ | 1,367 |  |  | $ | 1,229 |  |  | $ | 1,242 |  |  | $ | 1,093 |
Capitalized deferred policy acquisition costs | 469 |  |  | 447 |  |  | 1,489 |  |  | 1,351 |
Amortized deferred policy acquisition costs | (476) |  |  | (435) |  |  | (1,371) |  |  | (1,203) |
Deferred policy acquisition costs asset, end of period | $ | 1,360 |  |  | $ | 1,241 |  |  | $ | 1,360 |  |  | $ | 1,241 |
The table below shows the life deferred policy acquisition costs asset by product:
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |
Three months ended September 30, 2025 |  | Term |  | Whole life |  | Deferred annuity |  | Universal life |  |  |  | Total
Balance, beginning of period |  | $ | 251 |  |  | $ | 53 |  |  | $ | 7 |  |  | $ | 51 |  |  |  |  | $ | 362 |
Capitalized deferred policy acquisition costs |  | 9 |  |  | 1 |  |  | 1 |  |  | — |  |  |  |  | 11 |
Amortized deferred policy acquisition costs |  | (6) |  |  | — |  |  | — |  |  | (1) |  |  |  |  | (7) |
Balance, end of period |  | $ | 254 |  |  | $ | 54 |  |  | $ | 8 |  |  | $ | 50 |  |  |  |  | $ | 366 |
Three months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 241 |  |  | $ | 50 |  |  | $ | 8 |  |  | $ | 52 |  |  |  |  | $ | 351 |
Capitalized deferred policy acquisition costs |  | 9 |  |  | 1 |  |  | — |  |  | 1 |  |  |  |  | 11 |
Amortized deferred policy acquisition costs |  | (7) |  |  | — |  |  | — |  |  | (1) |  |  |  |  | (8) |
Balance, end of period |  | $ | 243 |  |  | $ | 51 |  |  | $ | 8 |  |  | $ | 52 |  |  |  |  | $ | 354 |
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |
Nine months ended September 30, 2025 |  | Term |  | Whole life |  | Deferred annuity |  | Universal life |  |  |  | Total
Balance, beginning of period |  | $ | 245 |  |  | $ | 52 |  |  | $ | 8 |  |  | $ | 51 |  |  |  |  | $ | 356 |
Capitalized deferred policy acquisition costs |  | 27 |  |  | 4 |  |  | 1 |  |  | 1 |  |  |  |  | 33 |
Amortized deferred policy acquisition costs |  | (18) |  |  | (2) |  |  | (1) |  |  | (2) |  |  |  |  | (23) |
Balance, end of period |  | $ | 254 |  |  | $ | 54 |  |  | $ | 8 |  |  | $ | 50 |  |  |  |  | $ | 366 |
Nine months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 236 |  |  | $ | 48 |  |  | $ | 8 |  |  | $ | 52 |  |  |  |  | $ | 344 |
Capitalized deferred policy acquisition costs |  | 25 |  |  | 5 |  |  | 1 |  |  | 2 |  |  |  |  | 33 |
Amortized deferred policy acquisition costs |  | (18) |  |  | (2) |  |  | (1) |  |  | (2) |  |  |  |  | (23) |
Balance, end of period |  | $ | 243 |  |  | $ | 51 |  |  | $ | 8 |  |  | $ | 52 |  |  |  |  | $ | 354 |

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- Definition The entire disclosure for deferred policy acquisition costs. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Name Accounting Standards Codification -SubTopic 30 -Topic 944 -Publisher FASB -URI https://asc.fasb.org/944-30/tableOfContent + Details
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