Deferred Acquisition Costs


Also found in: Dictionary, Medical, Acronyms, Encyclopedia.

Deferred Acquisition Costs

In insurance, an expense to a customer that an insurance company initially pays, but recoups the funds from the customer gradually over the life of the insurance policy or other contract.
References in periodicals archive ?
Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from the replaced contract in an internal replacement transaction that results in a substantially changed contract should not be deferred in connection with the replacement contract.
Other causes include a reduction in estimated premium accruals, increased retrocession costs, a write-down of deferred acquisition costs due to higher-than-expected lapse rates on some fixed annuity treaties, and severance and retirement costs, Scottish Re says.
Securities analysts on the call seemed to be asking about information they could use to estimate unusual charges, such as writedowns of deferred acquisition costs, that Genworth might take in connection with the LTC business in a future quarter.
Also helpful would be measures of the value of intangible assets, such as deferred acquisition costs, distribution systems, technology capabilities, and the quality of customer relations.
Life carriers are facing a significant drop in demand for variable products, acceleration of deferred acquisition costs and increased customer sophistication putting significant pressure on margins.
"What questions should we ask?" Healy's reply was to ask about deferred acquisition costs.