Your DAC

At a conference call with some actuaries and financial analysts:

Financial Analyst: My DAC is too small. And I'm not happy with it
Actuary A: Excuse me, your what is too small? I can't hear you!
Actuary B: I think you may need to call some helpline or counseling service, we can't help you with that. And it's not that appropriate to discuss such private matter in a conference call, don't you think?



DAC (pronounced as "Dack") means Deferrable Acquisition Costs. It's a common daily GAAP term in our work. In FAS 60, the acquisition costs vary with and are primarily related to the acquisiton of new and renewal insurance contracts, e.g. commissions, issue costs and underwriting costs.


Sometimes if you don't say the word clearly, other people may think you are saying another word which means a human body part.