Deferred Policy Acquisition Costs (Tables)

9 Months Ended

Sep. 30, 2025

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