DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2019

DAC, VOBA, DSI and DFEL [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,
	2019			2018			2017
Balance as of beginning-of-year	$	9,448		$	7,887		$	8,243
Business acquired (sold) through reinsurance		-			(246	)		-
Deferrals		1,902			1,600			1,348
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(950	)		(951	)		(965	)
Unlocking		(489	)		(115	)		61
Adjustment related to realized (gains) losses		54			(47	)		(12	)
Adjustment related to unrealized (gains) losses		(2,613	)		1,320			(788	)
Balance as of end-of-year	$	7,352		$	9,448		$	7,887

Changes in VOBA (in millions) were as follows:

	For the Years Ended December 31,
	2019			2018			2017
Balance as of beginning-of-year	$	816		$	516		$	891
Business acquired (sold) through reinsurance		-			(11	)		-
Business acquired		-			30			-
Deferrals		6			7			7
Amortization:
Amortization, excluding unlocking		(114	)		(127	)		(105	)
Unlocking		140			(60	)		(48	)
Accretion of interest (1)		45			48			52
Adjustment related to realized (gains) losses		(1	)		(2	)		(1	)
Adjustment related to unrealized (gains) losses		(550	)		415			(280	)
Balance as of end-of-year	$	342		$	816		$	516

⁽¹⁾The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2019, was as follows:

2020	$	72
2021		66
2022		67
2023		65
2024		61

Changes in DSI (in millions) were as follows:

	For the Years Ended December 31,
	2019			2018			2017
Balance as of beginning-of-year	$	248		$	238		$	243
Business acquired (sold) through reinsurance		-			(21	)		-
Deferrals		26			47			29
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(29	)		(28	)		(30	)
Unlocking		(3	)		-			(4	)
Adjustment related to realized (gains) losses		2			(1	)		(1	)
Adjustment related to unrealized (gains) losses		(10	)		13			1
Balance as of end-of-year	$	234		$	248		$	238

Changes in DFEL (in millions) were as follows:

	For the Years Ended December 31,
	2019			2018			2017
Balance as of beginning-of-year	$	2,769		$	1,445		$	1,874
Deferrals		1,095			875			755
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(544	)		(482	)		(396	)
Unlocking		(426	)		(53	)		1
Adjustment related to realized (gains) losses		-			(20	)		(14	)
Adjustment related to unrealized (gains) losses		(2,244	)		1,004			(775	)
Balance as of end-of-year	$	650		$	2,769		$	1,445