Deferred Policy Acquisition Costs and Value of Business Acquired

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs and Value of Business Acquired

The following table presents a rollforward of DAC and VOBA for the periods indicated:

	DAC						VOBA
	Wealth Solutions Deferred and Individual Annuities		Health Solutions Voluntary(1)		Businesses exited
Balance as of January 1, 2022	$	691	$	144	$	1,158	$	473
Deferrals of commissions and expenses	59		55		—		5
Amortization expense	(59)		(28)		(115)		(39)
Balance as of December 31, 2022	$	691	$	171	$	1,043	$	439
Deferrals of commissions and expenses	59		54		—		4
Amortization expense	(55)		(32)		(105)		(37)
Balance as of December 31, 2023	$	695	$	193	$	938	$	406
Deferrals of commissions and expenses	60		58		—		3
Amortization expense	(54)		(36)		(100)		(33)
Balance as of December 31, 2024	$	701	215		$	838	$	376

(1) During the second quarter of 2024, the Company reclassified certain insurance products within the Health Solutions segment from Group to Voluntary. As a result, the rollforward above and the reconciliation table below have been updated for all periods presented to reflect this change.

The following table shows a reconciliation of DAC and VOBA balances to the Consolidated Balance Sheets for the periods indicated:

	December 31, 2024		December 31, 2023
DAC:
Wealth Solutions Deferred and Individual Annuities	$	701	$	695
Health Solutions Voluntary	215		193
Businesses exited	838		938
Other	18		18
VOBA	376		406
Total	$	2,148	$	2,250

The estimated amount of VOBA amortization expense, net of interest, during the next five years is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results.

Year	Amount
2025	$	30
2026	27
2027	25
2028	23
2029	22