Deferred Policy Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2023

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs [Table Text Block]

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, 2023 and 2022 (dollars in millions):


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


For the year ended December 31, 2022:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	1,947	$	191	$	270	$	1,056
Capitalization	284		10		83		86
Amortization expense	(144)		(17)		(38)		(67)
Foreign currency translation	—		(13)		(21)		(32)
Balance, end of period	$	2,087	$	171	$	294	$	1,043

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, 2023 and 2022 (dollars in millions):


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


For the year ended December 31, 2022:	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	$	312	$	—	$	—	$	81
Capitalization	87		—		—		121
Amortization expense	(58)		—		—		(13)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	341	$	—	$	—	$	188

The reconciliation of deferred policy acquisition costs to the consolidated balance sheets as of December 31, 2023 and 2022 is as follows (dollars in millions):


	December 31,
	2023		2022
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	2,191	$	2,087
Canada	173		171
Europe, Middle East and Africa	347		294
Asia Pacific	1,098		1,043
Financial Solutions:
U.S. and Latin America	552		341
Canada	—		—
Europe, Middle East and Africa	—		—
Asia Pacific	250		188
Other long-duration business:
Corporate and Other	6		4
Total deferred policy acquisition costs	$	4,617	$	4,128