Deferred Policy Acquisition Costs

A progression of deferred policy acquisition costs is presented below (in millions):



	P&C			Annuity and Run-off Long-term Care and Life
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized (*)			Total			Total
Balance at December 31, 2014	$	221		$	925		$	132		$	74		$	1,131		$	(531	)	$	600		$	821
Additions	519			224			11			—			235			—			235			754
Amortization:
Periodic amortization	(511		)	(162		)	(26		)	(11		)	(199		)	—			(199		)	(710		)
Annuity unlocking	—			31			4			—			35			—			35			35
Included in realized gains	—			8			1			—			9			—			9			9
Sale of subsidiaries	—			(8		)	(3		)	(8		)	(19		)	—			(19		)	(19		)
Foreign currency translation	(3		)	—			—			—			—			—			—			(3		)
Change in unrealized	—			—			—			—			—			297			297			297
Balance at December 31, 2015	226			1,018			119			55			1,192			(234		)	958			1,184

Additions	535			230			9			—			239			—			239			774
Amortization:
Periodic amortization	(520		)	(169		)	(24		)	(9		)	(202		)	—			(202		)	(722		)
Annuity unlocking	—			25			4			—			29			—			29			29
Included in realized gains	—			6			2			—			8			—			8			8
Foreign currency translation	(3		)	—			—			—			—			—			—			(3		)
Change in unrealized	—			—			—			—			—			(31		)	(31		)	(31		)
Balance at December 31, 2016	238			1,110			110			46			1,266			(265		)	1,001			1,239

Additions	588			225			4			—			229			—			229			817
Amortization:
Periodic amortization	(556		)	(161		)	(19		)	(8		)	(188		)	—			(188		)	(744		)
Annuity unlocking	—			34			6			1			41			—			41			41
Included in realized gains	—			9			1			—			10			—			10			10
Foreign currency translation	—			—			—			—			—			—			—			—
Other	—			—			—			10			10			—			10			10
Change in unrealized	—			—			—			—			—			(157		)	(157		)	(157		)
Balance at December 31, 2017	$	270		$	1,217		$	102		$	49		$	1,368		$	(422	)	$	946		$	1,216


(*)	Unrealized adjustments to DPAC includes net unrealized gains/losses on securities and net unrealized gains/losses on cash flow hedges.

The present value of future profits (“PVFP”) amounts in the table above are net of $141 million and $134 million of accumulated amortization at December 31, 2017 and 2016, respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-eighth of the balance at the beginning of each respective year.