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,
	2026		2025		2026		2025
Property casualty:
Deferred policy acquisition costs asset, beginning of period	$	1,011	$	937	$	974	$	886
Capitalized deferred policy acquisition costs	534		513		1,046		998
Amortized deferred policy acquisition costs	(480)		(445)		(955)		(879)
Deferred policy acquisition costs asset, end of period	$	1,065	$	1,005	$	1,065	$	1,005

Life:
Deferred policy acquisition costs asset, beginning of period	$	373	$	360	$	370	$	356
Capitalized deferred policy acquisition costs	12		10		23		22
Amortized deferred policy acquisition costs	(8)		(8)		(16)		(16)

Deferred policy acquisition costs asset, end of period	$	377	$	362	$	377	$	362

Consolidated:
Deferred policy acquisition costs asset, beginning of period	$	1,384	$	1,297	$	1,344	$	1,242
Capitalized deferred policy acquisition costs	546		523		1,069		1,020
Amortized deferred policy acquisition costs	(488)		(453)		(971)		(895)

Deferred policy acquisition costs asset, end of period	$	1,442	$	1,367	$	1,442	$	1,367


(Dollars in millions)
Three months ended June 30, 2026	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	260	$	56	$	8	$	49	$	373
Capitalized deferred policy acquisition costs	10		1		1		—		12
Amortized deferred policy acquisition costs	(6)		(1)		(1)		—		(8)
Balance, end of period	$	264	$	56	$	8	$	49	$	377

Three months ended June 30, 2025
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


(Dollars in millions)
Six months ended June 30, 2026	Term		Whole life		Deferred annuity		Universal life		Total
Balance, beginning of period	$	257	$	55	$	8	$	50	$	370
Capitalized deferred policy acquisition costs	19		3		1		—		23
Amortized deferred policy acquisition costs	(12)		(2)		(1)		(1)		(16)
Balance, end of period	$	264	$	56	$	8	$	49	$	377

Six months ended June 30, 2025
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