AIG · 10-Q · 2026Q2 · Full report

Deferred Acquisition Cost Growth

AMERICAN INTERNATIONAL GROUP, INC. · 2026-08-07 · Importance 36 · Surprise 40 · Matches filing data

Deferred policy acquisition costs increased to $2.217 billion at June 30, 2026 from $2.106 billion at December 31, 2025, a 5.3% increase. AIG capitalized $1.885 billion of acquisition costs during the six months ended June 30, 2026, up 13.1% from $1.667 billion in the prior-year period. Amortization expense rose to $1.724 billion from $1.672 billion, while the ending balance remained above the prior-year $2.151 billion level.

Key facts

• Amortization of deferred policy acquisition costs (three months ended June 30, 2026): $1,724 million and (three months ended June 30, 2025): $1,672 million. source
• Balance of Deferred Acquisition Costs at beginning of year: $2,106 million and $2,065 million (comparative); capitalization for six months ended June 30: $1,885 million and $1,667 million; amortization expense for six months ended June 30: $(1,724) million and $(1,672) million; balance at end of period: $2,217 million and $2,151 million. source
• Deferred policy acquisition costs (DAC): $2,217 million as of June 30, 2026 and $2,106 million as of December 31, 2025. source
• VOBA (Value of Business Acquired) is the present value of future pre-tax profits from in-force policies of acquired businesses discounted at yields applicable at the time of purchase and VOBA is reported in DAC in the Condensed Consolidated Balance Sheets. source
• DAC (Deferred Policy Acquisition Costs) are deferred costs that are incremental and directly related to the successful acquisition of new business or renewal of existing business. source

Impact estimates