Allstate 2011 Annual Report Download - page 244

10. Deferred Policy Acquisition and Sales Inducement Costs
Deferred policy acquisition costs for the years ended December 31 are as follows:
2010
($ in millions)
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 4,060 $ 1,410 $ 5,470
Acquisition costs deferred 483 3,645 4,128
Amortization charged to income (356) (3,678) (4,034)
Effect of unrealized gains and losses (795) — (795)
Balance, end of year $ 3,392 $ 1,377 $ 4,769
2009
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 7,089 $ 1,453 $ 8,542
Impact of adoption of new OTTI accounting
guidance before unrealized impact (1) (176) — (176)
Impact of adoption of new OTTI accounting
guidance effect of unrealized capital gains and
losses (2) 176 — 176
Acquisition costs deferred 495 3,746 4,241
Amortization charged to income (965) (3,789) (4,754)
Effect of unrealized gains and losses (2,559) — (2,559)
Balance, end of year $ 4,060 $ 1,410 $ 5,470
2008
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 4,291 $ 1,477 $ 5,768
Acquisition costs deferred 684 3,951 4,635
Amortization charged to income (704) (3,975) (4,679)
Effect of unrealized gains and losses 2,818 — 2,818
Balance, end of year $ 7,089 $ 1,453 $ 8,542
(1) The adoption of new OTTI accounting guidance on April 1, 2009 resulted in an adjustment to DAC to reverse previously
recorded DAC accretion related to realized capital losses that were reclassified to other comprehensive income upon
adoption.
(2) The adoption of new OTTI accounting guidance resulted in an adjustment to DAC due to the change in unrealized
capital gains and losses that occurred upon adoption on April 1, 2009 when previously recorded realized capital losses
were reclassified to other comprehensive income. The adjustment was recorded as an increase of the DAC balance
and unrealized capital gains and losses.
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Notes