DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [Abstract]

DAC, VOBA, DSI and DFEL

8. DAC, VOBA, DSI and DFEL

Changes in DAC (in millions) were as follows:

				For the Years Ended December 31,
				2011		2010		2009
Balance as of beginning-of-year				$	7,552	$	7,424	$	7,640
	Business acquired (sold) through reinsurance				-		-		(37)
	Deferrals				1,681		1,641		1,621
	Amortization, net of interest:
		Prospective unlocking - assumption changes			(274)		(31)		(15)
		Prospective unlocking - model refinements			114		145		-
		Retrospective unlocking			96		41		19
		Other amortization			(959)		(930)		(746)
	Adjustment related to realized (gains) losses				(23)		(50)		148
	Adjustment related to unrealized (gains) losses				(1,051)		(688)		(1,206)
			Balance as of end-of-year	$	7,136	$	7,552	$	7,424

Changes in VOBA (in millions) were as follows:

				For the Years Ended December 31,
				2011		2010		2009
Balance as of beginning-of-year				$	1,378	$	2,086	$	3,762
	Business acquired (sold) through reinsurance				12		-		(255)
	Deferrals				20		26		30
	Amortization:
		Prospective unlocking - assumption changes			72		(41)		(20)
		Prospective unlocking - model refinements			102		(7)		-
		Retrospective unlocking			21		11		(44)
		Other amortization			(300)		(361)		(349)
	Accretion of interest (1)				78		89		102
	Adjustment related to realized (gains) losses				(6)		(8)		43
	Adjustment related to unrealized (gains) losses				(322)		(417)		(1,183)
			Balance as of end-of-year	$	1,055	$	1,378	$	2,086

• The interest accrual rates utilized to calculate the accretion of interest ranged from 3.40% to 7.25%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2011, was as follows:

2012	$	117
2013		101
2014		76
2015		68
2016		64

Changes in DSI (in millions) were as follows:

				For the Years Ended December 31,
				2011		2010		2009
Balance as of beginning-of-year				$	286	$	323	$	263
	Deferrals				39		66		76
	Amortization, net of interest:
		Prospective unlocking - assumption changes			(2)		(3)		-
		Retrospective unlocking			17		7		5
		Other amortization			(55)		(58)		(33)
	Adjustment related to realized (gains) losses				(1)		(8)		13
	Adjustment related to unrealized (gains) losses				(13)		(41)		(1)
			Balance as of end-of-year	$	271	$	286	$	323

Changes in DFEL (in millions) were as follows:

				For the Years Ended December 31,
				2011		2010		2009
Balance as of beginning-of-year				$	1,502	$	1,338	$	1,019
	Business acquired (sold) through reinsurance				-		-		(11)
	Deferrals				544		546		497
	Amortization, net of interest:
		Prospective unlocking - assumption changes			5		(57)		(22)
		Prospective unlocking - model refinements			26		56		-
		Retrospective unlocking			15		(23)		(16)
		Other amortization			(180)		(173)		(129)
	Adjustment related to realized (gains) losses				(9)		(8)		(1)
	Adjustment related to unrealized (gains) losses				(534)		(177)		1
			Balance as of end-of-year	$	1,369	$	1,502	$	1,338