Deferred Policy Acquisition Costs (Tables)

9 Months Ended

Sep. 30, 2025

The following tables provide the balances of, and changes in, deferred policy acquisition costs for the Company’s Traditional business for the nine months ended September 30, 2025 and 2024 (dollars in millions):


For the nine months ended September 30, 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	228		9		98		124
Amortization expense	(168)		(9)		(43)		(51)
Foreign currency translation	—		7		41		21
Balance, end of period	$	3,046	$	164	$	450	$	1,272


For the nine months ended September 30, 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	899		6		56		117
Amortization expense	(121)		(8)		(36)		(44)
Foreign currency translation	(2)		(4)		12		(1)
Balance, end of period	$	2,967	$	167	$	379	$	1,170

The following tables provide the balances of, and changes in, deferred policy acquisition costs for the Company’s Financial Solutions business for the nine months ended September 30, 2025 and 2024 (dollars in millions):


For the nine months ended September 30, 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	44		—		—		182
Amortization expense	(41)		—		—		(45)

Foreign currency translation	—		1		—		2
Balance, end of period	$	509	$	21	$	—	$	463


For the nine months ended September 30, 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		—		—		67
Amortization expense	(44)		—		—		(33)
Other	(14)		—		—		—
Foreign currency translation	—		—		—		1
Balance, end of period	$	495	$	—	$	—	$	285

The reconciliation of deferred policy acquisition costs included in the rollforwards to deferred policy acquisition costs and other on the condensed consolidated balance sheets as of September 30, 2025 and 2024 is as follows (dollars in millions):


	September 30,
	2025		2024
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	3,046	$	2,967
Canada	164		167
Europe, Middle East and Africa	450		379
Asia Pacific	1,272		1,170
Financial Solutions:
U.S. and Latin America	509		495
Canada	21		—
Europe, Middle East and Africa	—		—
Asia Pacific	463		285
Other deferred policy acquisition costs:
Corporate and Other	15		14
Total deferred policy acquisition costs	5,940		5,477
Cost of reinsurance asset	14		—
Total deferred policy acquisition costs and other	$	5,954	$	5,477