DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2024

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

DAC, VOBA, DSI and DFEL

DAC, VOBA, DSI and DFEL

The following table reconciles DAC, VOBA and DSI (in millions) to the Consolidated Balance Sheets:

	As of December 31,
	2024		2023
DAC, VOBA and DSI
Variable Annuities	$	3,964	$	3,873
Fixed Annuities	423		455
Traditional Life	1,370		1,418
UL and Other	6,318		6,232
Group Protection	178		154
Retirement Plan Services	284		265
Total DAC, VOBA and DSI	$	12,537	$	12,397

The following table reconciles DFEL (in millions) to the Consolidated Balance Sheets:

	As of December 31,
	2024		2023
DFEL
Variable Annuities	$	273	$	278
UL and Other (1)	6,406		5,579
Other Operations (2)	51		44
Total DFEL	$	6,730	$	5,901

(1) We reported $256 million and $257 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

(2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $51 million and $44 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

The following tables summarize the changes in DAC (in millions):

	For the Year Ended December 31, 2024
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	3,751	$	421	$	1,376	$	5,791	$	154	$	239
Deferrals	454		44		107		434		135		21
Amortization	(354)		(71)		(148)		(309)		(111)		(18)
Balance as of end-of-year	$	3,851	$	394	$	1,335	$	5,916	$	178	$	242

	For the Year Ended December 31, 2023
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	3,751	$	439	$	1,333	$	5,605	$	141	$	236
Deferrals	361		49		188		482		113		21
Amortization	(361)		(67)		(145)		(296)		(100)		(18)
Balance as of end-of-year	$	3,751	$	421	$	1,376	$	5,791	$	154	$	239

DAC amortization expense of $1.0 billion, $987 million and $964 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022, respectively.

The following tables summarize the changes in VOBA (in millions):

	For the Year Ended December 31, 2024
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	15	$	42	$	413
Deferrals	–		–		1
Amortization	(2)		(7)		(39)
Balance as of end-of-year	$	13	$	35	$	375

	For the Year Ended December 31, 2023
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	17	$	50	$	465
Business acquired (sold)
through reinsurance	–		–		(11)
Deferrals	–		–		2
Amortization	(2)		(8)		(43)
Balance as of end-of-year	$	15	$	42	$	413

VOBA amortization expense of $48 million, $53 million and $60 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022, respectively. No additions or write-offs were recorded for each respective year.

Estimated future amortization of VOBA (in millions), as of December 31, 2024, was as follows:

2025	$	37
2026	33
2027	29
2028	24
2029	21

The following tables summarize the changes in DSI (in millions):

	For the Year Ended December 31, 2024
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	122	$	19	$	28	$	26
Deferrals	2		–		1		17
Amortization	(11)		(3)		(2)		(1)
Balance as of end-of-year	$	113	$	16	$	27	$	42

	For the Year Ended December 31, 2023
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	128	$	23	$	30	$	17
Deferrals	6		–		–		10
Amortization	(12)		(4)		(2)		(1)
Balance as of end-of-year	$	122	$	19	$	28	$	26

DSI amortization expense of $17 million, $19 million and $19 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022, respectively.

The following tables summarize the changes in DFEL (in millions):

	For the Year Ended  December 31, 2024				For the Year Ended  December 31, 2023
	Variable Annuities		UL and Other		Variable Annuities		UL and Other
Balance as of beginning-of-year	$	278	$	5,579	$	286	$	4,766
Deferrals	19		1,114		19		1,074
Amortization	(24)		(287)		(27)		(261)
Balance as of end-of-year	273		6,406		278		5,579
Less: reinsurance recoverables	–		256		–		257
Balance as of end-of-year, net of reinsurance	273		$	6,150	$	278	$	5,322

DFEL amortization of $311 million, $288 million and $257 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022, respectively.