Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows:




	VOBA			DAC			DSI			Total
Balance at December 31, 2017	$	821		$	22		$	10		$	853
Deferrals	—			219			98			317
Amortization	(75		)	(6		)	(5		)	(86		)
Interest	15			2			1			18
Unlocking	(4		)	—			—			(4		)
Adjustment for net unrealized investment (gains) losses	96			6			5			107
Balance at September 30, 2018	$	853		$	243		$	109		$	1,205




Predecessor	VOBA			DAC			DSI			Total
Balance at December 31, 2016	$	118		$	1,024		$	86		$	1,228
Deferrals	—			205			31			236
Amortization	(34		)	(98		)	(12		)	(144		)
Interest	9			32			3			44
Unlocking	26			6			(2		)	30
Adjustment for net unrealized investment (gains) losses	(119		)	(146		)	—			(265		)
Balance at September 30, 2017	$	—		$	1,023		$	106		$	1,129

Amortization of VOBA, DAC, and DSI is based on the historical, current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0.05% to 4.01%. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the Consolidated Statements of Operations. As of September 30, 2018, and September 30, 2017, the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $78 and $(159), respectively, and the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $5 and $(139), respectively. As of September 30, 2018, the DSI balance included net unrealized investment (gains) losses of $5.

Estimated amortization expense for VOBA in future fiscal periods is as follows:



		Estimated Amortization Expense
Fiscal Year
2018		15
2019		69
2020		89
2021		85
2022		79
Thereafter		438

The Company had an unearned revenue balance of $26 as of September 30, 2018, including deferrals of $(28), amortization of $18, unlocking of $2, and adjustment for net unrealized investment (gains) losses of $(18).

Definite Lived Intangible Assets

Amortizable intangible assets as of September 30, 2018 consist of the following:



	September 30, 2018
	Cost	Accumulated amortization	Net	Weighted Average Useful Life (Years)
Trade names	16	2	14	10

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Carrying amount

Weighted Average Useful Life (Years)

State insurance licenses

Indefinite

Trade marks / trade names