Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2025

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 three months ended March 31, 2025 and 2024 (dollars in millions):


For the three months ended March 31, 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	72		4		31		34
Amortization expense	(56)		(3)		(12)		(16)
Foreign currency translation	—		—		14		3
Balance, end of period	$	3,002	$	158	$	387	$	1,199


For the three months ended March 31, 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	84		2		19		43
Amortization expense	(37)		(3)		(13)		(14)
Foreign currency translation	—		(4)		(6)		(16)
Balance, end of period	$	2,238	$	168	$	347	$	1,111

The following tables provide the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the three months ended March 31, 2025 and 2024 (dollars in millions):


For the three months ended March 31, 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	21		—		—		38
Amortization expense	(10)		—		—		(13)
Foreign currency translation	—		—		—		—
Balance, end of period	$	517	$	20	$	—	$	349


For the three months ended March 31, 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		—		—		20
Amortization expense	(15)		—		—		(10)
Foreign currency translation	—		—		—		(1)
Balance, end of period	$	538	$	—	$	—	$	259

The reconciliation of deferred policy acquisition costs to the condensed consolidated balance sheets as of March 31, 2025 and 2024 is as follows (dollars in millions):


	March 31,
	2025		2024
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	3,002	$	2,238
Canada	158		168
Europe, Middle East and Africa	387		347
Asia Pacific	1,199		1,111
Financial Solutions:
U.S. and Latin America	517		538
Canada	20		—
Europe, Middle East and Africa	—		—
Asia Pacific	349		259
Other long-duration business:
Corporate and Other	17		12
Total deferred policy acquisition costs	$	5,649	$	4,673