Expenses directly related to successfully acquired insurance policies – primarily commissions, premium taxes and underwriting costs – are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience. For property casualty, we evaluate the costs for recoverability. No premium deficiencies were recorded in the condensed consolidated statements of income, as the sum of the anticipated loss and loss expenses, policyholder dividends and unamortized deferred acquisition expenses did not exceed the related unearned premiums and anticipated investment income.


(Dollars in millions)	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Property casualty:
Deferred policy acquisition costs asset, beginning of period	$	937	$	796	$	886	$	749
Capitalized deferred policy acquisition costs	513		475		998		882
Amortized deferred policy acquisition costs	(445)		(393)		(879)		(753)
Deferred policy acquisition costs asset, end of period	$	1,005	$	878	$	1,005	$	878

Life:
Deferred policy acquisition costs asset, beginning of period	$	360	$	347	$	356	$	344
Capitalized deferred policy acquisition costs	10		12		22		22
Amortized deferred policy acquisition costs	(8)		(8)		(16)		(15)

Deferred policy acquisition costs asset, end of period	$	362	$	351	$	362	$	351

Consolidated:
Deferred policy acquisition costs asset, beginning of period	$	1,297	$	1,143	$	1,242	$	1,093
Capitalized deferred policy acquisition costs	523		487		1,020		904
Amortized deferred policy acquisition costs	(453)		(401)		(895)		(768)

Deferred policy acquisition costs asset, end of period	$	1,367	$	1,229	$	1,367	$	1,229


(Dollars in millions)
Three months ended June 30, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	248	$	53	$	8	$	51	$	360
Capitalized deferred policy acquisition costs	9		1		—		—		10
Amortized deferred policy acquisition costs	(6)		(1)		(1)		—		(8)
Balance, end of period	$	251	$	53	$	7	$	51	$	362

Three months ended June 30, 2024
Balance, beginning of period	$	238	$	49	$	8	$	52	$	347
Capitalized deferred policy acquisition costs	8		2		1		1		12
Amortized deferred policy acquisition costs	(5)		(1)		(1)		(1)		(8)
Balance, end of period	$	241	$	50	$	8	$	52	$	351


(Dollars in millions)
Six months ended June 30, 2025	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	245	$	52	$	8	$	51	$	356
Capitalized deferred policy acquisition costs	18		3		—		1		22
Amortized deferred policy acquisition costs	(12)		(2)		(1)		(1)		(16)
Balance, end of period	$	251	$	53	$	7	$	51	$	362

Six months ended June 30, 2024
Balance, beginning of period	$	236	$	48	$	8	$	52	$	344
Capitalized deferred policy acquisition costs	16		4		1		1		22
Amortized deferred policy acquisition costs	(11)		(2)		(1)		(1)		(15)
Balance, end of period	$	241	$	50	$	8	$	52	$	351