6 Deferred acquisition costs (DAC) and acquired present value of future profits (PVFP)

As of 31 December, the DAC were as follows:

2017 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Opening balance as of 1 January	2 280	3 465	444	11	6 200
Deferred	4 068	1 294	553	71	5 986
Effect of acquisitions/disposals and retrocessions		–5	2	5	2
Amortisation	–4 255	–508	–549	–67	–5 379
Effect of foreign currency translation and other changes	53	–12	4	17	62
Closing balance	2 146	4 234	454	37	6 871

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2018 USD millions	Property & Casualty Reinsurance	Life & Health Reinsurance	Corporate Solutions	Life Capital	Total
Opening balance as of 1 January	2 146	4 234	454	37	6 871
Deferred	4 048	1 235	634	978	6 895
Amortisation	–4 012	–496	–595	–187	–5 290
Effect of foreign currency translation and other changes	–26	–189	–5	–39	–259
Closing balance	2 156	4 784	488	789	8 217

Retroceded DAC may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.

As of 31 December, the PVFP was as follows:

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	Life & Health Reinsurance	Life Capital			Total
2017 USD millions		Positive PVFP	Negative PVFP	Total
Opening balance as of 1 January	966	1 558	–521	1 037	2 003
Amortisation	–135	–143	45	–98	–233
Interest accrued on unamortised PVFP	52	102	–17	85	137
Effect of change in unrealised gains/losses		–1		–1	–1
Effect of foreign currency translation	38	96	–51	45	83
Closing balance	921	1 612	–544	1 068	1 989

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	Life & Health Reinsurance	Life Capital			Total
2018 USD millions		Positive PVFP	Negative PVFP	Total
Opening balance as of 1 January	921	1 612	–544	1 068	1 989
Amortisation	–140	–170	40	–130	–270
Interest accrued on unamortised PVFP	45	107	–17	90	135
Effect of change in unrealised gains/losses		18		18	18
Effect of foreign currency translation	–22	–62	30	–32	–54
Closing balance	804	1 505	–491	1 014	1 818

Retroceded PVFP may arise on retrocession of reinsurance portfolios, including reinsurance undertaken as part of a securitisation. The associated potential retrocession recoveries are determined by the nature of the retrocession agreements and by the terms of the securitisation.

The percentage of PVFP which is expected to be amortised in each of the next five years is 14%, 13%, 12%, 11% and 10%.