AIG 2011 Annual Report Download - page 296

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents a rollforward of deferred policy acquisition costs:
Years Ended December 31,
(in millions) 2011 2010 2009
Chartis:
Balance, beginning of year $ 4,973 $ 4,759 $ 4,959
Dispositions(a) -- (418)
Acquisition costs deferred 6,575 6,849 6,490
Amortization expense (6,455) (6,728) (6,663)
Increase due to foreign exchange and other 261 93 391
Balance, end of year $ 5,354 $ 4,973 $ 4,759
SunAmerica:
Balance, beginning of year $ 9,606 $ 11,098 $ 14,447
Dispositions(b) -- (479)
Acquisition costs deferred 1,194 990 1,014
Amortization expense (1,535) (1,368) (1,553)
Change in net unrealized losses on securities(c) (674) (1,111) (960)
Increase (decrease) due to foreign exchange 21 (10)
Other(d) -(4) (1,361)
Balance, end of year(e) $ 8,593 $ 9,606 $ 11,098
Other operations:
Balance, beginning of year $47$ 24,908 $ 26,321
Dispositions(b) -(22,244) -
Acquisition costs deferred 27 1,496 1,545
Amortization expense (29) (1,038) (1,226)
Change in net unrealized gains (losses) on securities(c) -34 (44)
Increase due to foreign exchange 1377 826
Activity of discontinued operations -220 868
Reclassified to Assets held for sale -(3,521) (3,322)
Other(d) (2) (185) (60)
Subtotal $44$ 47 $ 24,908
Consolidation and eliminations 35 42 49
Balance, end of year(e) $79$ 89 $ 24,957
Total deferred policy acquisition costs $ 14,026 $ 14,668 $ 40,814
(a) In 2009, Transatlantic was deconsolidated and 21st Century and HSB were sold.
(b) For 2010, includes AIG Star and AIG Edison, which were sold in February 2011, AIA which was deconsolidated and ALICO which was sold
in 2010 and AIG Life Canada, which was sold in 2009.
(c) In 2009, includes an increase of $1.3 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary
impairments accounting standard for SunAmerica and Divested businesses, respectively.
(d) In 2009, includes a decrease of $1.3 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary impairments
accounting standard for SunAmerica and Divested businesses, respectively.
(e) Includes $(646) million, $(1.0) billion, and $86 million for SunAmerica at December 31, 2011, 2010 and 2009, respectively, and $(34) million
for Divested businesses at 2010 related to the effect of net unrealized gains and losses on available for sale securities. For the year ended
December 31, 2010, there were no net unrealized gains and losses on available for sale securities associated with divested businesses.
282 AIG 2011 Form 10-K
10. DEFERRED POLICY ACQUISITION COSTS