Deferred Policy Acquisition Costs (Tables)

The following table presents a rollforward of deferred policy acquisition costs and value of business acquired related to long-duration contracts for the six months ended June 30, 2024 and 2023:


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Total
(in millions)
DAC:
Balance at January 1, 2024 (a)	$	4,777	$	1,055	$	4,092	$	70	$	9,994
Capitalization	395		41		226		22		684
Amortization expense	(301)		(42)		(177)		(6)		(526)
Other, including foreign exchange	—		—		(7)		—		(7)
Dispositions	—		—		(27)		—		(27)
Balance at June 30, 2024	$	4,871	$	1,054	$	4,107	$	86	$	10,118

Balance at January 1, 2023	$	4,643	$	1,060	$	4,718	$	51	$	10,472
Capitalization	358		37		221		10		626
Amortization expense	(274)		(41)		(189)		(4)		(508)
Other, including foreign exchange	—		—		33		—		33
Balance at June 30, 2023	$	4,727	$	1,056	$	4,783	$	57	$	10,623







VOBA:
Balance at January 1, 2024 (b)	$	2	$	1	$	14	$	—	$	17

Amortization expense	—		—		(1)		—		(1)
Other, including foreign exchange	—		—		(1)		—		(1)

Balance at June 30, 2024	$	2	$	1	$	12	$	—	$	15

Balance at January 1, 2023	$	3	$	1	$	87	$	—	$	91

Amortization expense	(1)		—		(5)		—		(6)
Other, including foreign exchange	—		(1)		8		—		7
Balance at June 30, 2023	$	2	$	—	$	90	$	—	$	92






Total DAC and VOBA:
Balance at June 30, 2024									$	10,133
Balance at June 30, 2023									$	10,715

(a) Excludes $740 million of DAC reclassified to Assets held-for-sale at the beginning of the period and was derecognized concurrent with the closing of the sale of AIG Life U.K..

(b) Excludes $74 million of VOBA reclassified to Assets held-for-sale at the beginning of the period and was derecognized concurrent with the closing of the sale of AIG Life U.K..

The following table presents a rollforward of deferred sales inducement assets related to long-duration contracts for the six months ended June 30, 2024 and 2023:


Six Months Ended June 30,	2024						2023
	Individual Retirement		Group Retirement		Total		Individual Retirement		Group Retirement		Total
(in millions)


Balance, beginning of year	$	333	$	164	$	497	$	381	$	177	$	558
Capitalization	3		1		4		4		1		5
Amortization expense	(26)		(7)		(33)		(27)		(7)		(34)

Balance, end of period	$	310	$	158	$	468	$	358	$	171	$	529
Other reconciling items*					1,872						2,151
Other assets, including restricted cash					$	2,340					$	2,680

*Other reconciling items include prepaid expenses, goodwill, intangible assets and any similar items.