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 present the balances of and changes in deferred policy acquisition costs for the Company’s Traditional business for the six months ended June 30, 2026 and 2025 (dollars in millions):


For the six months ended June 30, 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	176		7		33		66
Amortization expense	(110)		(6)		(37)		(35)
Foreign currency translation	—		(5)		(9)		(6)
Balance, end of period	$	3,134	$	162	$	465	$	1,310


For the six months ended June 30, 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	151		7		74		89
Amortization expense	(113)		(6)		(27)		(33)
Foreign currency translation	1		9		42		30
Balance, end of period	$	3,025	$	167	$	443	$	1,264

The following tables present the balances of and changes in deferred policy acquisition costs for the Company’s Financial Solutions business for the six months ended June 30, 2026 and 2025 (dollars in millions):


For the six months ended June 30, 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	24		—		—		187
Amortization expense	(28)		—		—		(42)

Foreign currency translation	—		—		—		—
Balance, end of period	$	504	$	21	$	—	$	670


For the six months ended June 30, 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	38		—		—		76
Amortization expense	(32)		—		—		(27)

Foreign currency translation	—		1		—		2
Balance, end of period	$	512	$	21	$	—	$	375

The following table presents the reconciliation of deferred policy acquisition costs included in the rollforwards to deferred policy acquisition costs and other on the condensed consolidated balance sheets as of June 30, 2026 and 2025 (dollars in millions):


	June 30,
	2026		2025
Deferred policy acquisition costs included in the rollforwards:
Traditional:
U.S. and Latin America	$	3,134	$	3,025
Canada	162		167
Europe, Middle East and Africa	465		443
Asia Pacific	1,310		1,264
Financial Solutions:
U.S. and Latin America	504		512
Canada	21		21
Europe, Middle East and Africa	—		—
Asia Pacific	670		375
Other deferred policy acquisition costs:
Corporate and Other	12		16
Total deferred policy acquisition costs	6,278		5,823
Cost of reinsurance asset	105		—
Total deferred policy acquisition costs and other	$	6,383	$	5,823