97 specifies that unamortized deferred acquisition costs related to traditional life insurance contracts replaced with universal life-type contracts issued by the same insurance enterprise shall not be deferred in connection with the replacement contract.
Subsequent modifications made only to the nonintegrated contract feature or coverage should be evaluated under paragraphs 9 through 15 of this SOP separately from the base contract, and any deferred acquisition costs related to the nonintegrated contract feature or coverage accounted for accordingly.
Insurance Products operating earnings were $400 million, up 55% due in large part to higher net investment income, solid underwriting results in both group life and individual life, as well as the positive impact of the unlocking of deferred acquisition costs and other adjustments in individual life.
The fourth quarter of 2009 benefited from increased fee revenue due to higher equity market levels, the positive impact of the unlocking of deferred acquisition costs and other adjustments as well as a significant improvement in net investment income.
The adoption of the SOP required us to increase our deferred acquisition costs
by approximately $36.
This current unprecedented low persistency environment significantly impacts both our earned premium stream and accelerates the amortization of our deferred acquisition cost
As a result of the transaction, the Company incurred a loss of $26,382,167, primarily as a result of a write down of deferred acquisition costs of approximately $38.
Losses associated with recaptures of other contracts reflect the write down of deferred acquisition costs and cash payments made to cedents net of reserve releases associated with recaptures executed in 2002.
The fourth quarter 2001 earnings reflect an adjustment in the Company's deferred acquisition costs and related amortization against earnings to incorporate improved persistency on its annuity block of business and to factor in realized investment loss experience.
In addition to the positive earnings impact from the adjustment of deferred acquisition costs in 2001, Mr.
The operating earnings growth was partially offset by an increase in amortization of deferred acquisition costs of $6 million, net of income tax, resulting from the adoption of SOP 05-1.
During the quarter, International also benefited from a $10 million, net of income tax, benefit from an adjustment to deferred acquisition costs and an $8 million, net of income tax, claim liability reduction in the Latin America region.