Deferred policy acquisition costs and other on the condensed consolidated balance sheets include deferred policy acquisition costs and cost of reinsurance assets.

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, 2026 and 2025 (dollars in millions):


For the three months ended March 31, 2026:	U.S. and Latin America – Traditional		Canada – Traditional		Europe, Middle East and Africa – Traditional		Asia Pacific – Traditional
Balance, beginning of year	$	3,068	$	166	$	478	$	1,285
Capitalization	85		4		14		29
Amortization expense	(56)		(3)		(17)		(17)
Foreign currency translation	—		(3)		(9)		(4)
Balance, end of period	$	3,097	$	164	$	466	$	1,293


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

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, 2026 and 2025 (dollars in millions):


For the three months ended March 31, 2026:	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	$	508	$	21	$	—	$	525
Capitalization	11		—		—		52
Amortization expense	(15)		—		—		(20)
Foreign currency translation	—		—		—		1
Balance, end of period	$	504	$	21	$	—	$	558


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

The reconciliation of deferred policy acquisition costs included in the rollforwards to deferred policy acquisitions costs and other on the condensed consolidated balance sheets as of March 31, 2026 and 2025 are as follows (dollars in millions):


	March 31,
	2026		2025
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	3,097	$	3,002
Canada	164		158
Europe, Middle East and Africa	466		387
Asia Pacific	1,293		1,199
Financial Solutions:
U.S. and Latin America	504		517
Canada	21		20
Europe, Middle East and Africa	—		—
Asia Pacific	558		349
Other deferred policy acquisition costs:
Corporate and Other	13		17
Total deferred policy acquisition costs	6,116		5,649
Cost of reinsurance asset	$	75	—
Total deferred policy acquisition costs and other	$	6,191	$	5,649