DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2015

Deferred Policy Acquisition Costs and Value of Business Acquired [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,
	2015			2014			2013
Balance as of beginning-of-year	$	7,558		$	7,695		$	5,943
Business acquired (sold) through reinsurance		38			-			-
Deferrals		1,490			1,537			1,564
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(879	)		(988	)		(816	)
Unlocking		(238	)		17			42
Adjustment related to realized (gains) losses		(15	)		(31	)		(8	)
Adjustment related to unrealized (gains) losses		663			(672	)		970
Balance as of end-of-year	$	8,617		$	7,558		$	7,695

Changes in VOBA (in millions) were as follows:

	For the Years Ended December 31,
	2015			2014			2013
Balance as of beginning-of-year	$	649		$	1,191		$	724
Business acquired (sold) through reinsurance		(22	)		2			4
Deferrals		8			9			13
Amortization:
Amortization, excluding unlocking		(129	)		(186	)		(179	)
Unlocking		(82	)		(21	)		(52	)
Accretion of interest (1)		56			64			68
Adjustment related to realized (gains) losses		(1	)		(1	)		(1	)
Adjustment related to unrealized (gains) losses		414			(409	)		614
Balance as of end-of-year	$	893		$	649		$	1,191

⁽¹⁾ The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2015, was as follows:

2016	$	61
2017		65
2018		68
2019		73
2020		82

Changes in DSI (in millions) were as follows:

	For the Years Ended December 31,
	2015			2014			2013
Balance as of beginning-of-year	$	240		$	267		$	253
Deferrals		29			13			10
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(33	)		(38	)		(43	)
Unlocking		2			2			8
Adjustment related to realized (gains) losses		(1	)		(4	)		(1	)
Adjustment related to unrealized (gains) losses		19			-			40
Balance as of end-of-year	$	256		$	240		$	267

Changes in DFEL (in millions) were as follows:

	For the Years Ended December 31,
	2015			2014			2013
Balance as of beginning-of-year	$	1,401		$	1,938		$	1,373
Deferrals		539			402			320
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(308	)		(335	)		(216	)
Unlocking		(68	)		(50	)		(14	)
Adjustment related to realized (gains) losses		(4	)		(6	)		(2	)
Adjustment related to unrealized (gains) losses		392			(548	)		477
Balance as of end-of-year	$	1,952		$	1,401		$	1,938