DAC, VOBA, DSI and DFEL

6 Months Ended

Jun. 30, 2025

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 deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2025		2024
DAC, VOBA and DSI
Variable Annuities	$	4,028	$	3,964
Fixed Annuities	416		423
Traditional Life	1,339		1,370
UL and Other	6,339		6,318
Group Protection	186		178
Retirement Plan Services	292		284
Other Operations	4		–
Total DAC, VOBA and DSI	$	12,604	$	12,537

The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2025		2024
DFEL
Variable Annuities	$	268	$	273
UL and Other	6,796		6,406
Other Operations (1)	55		51
Total DFEL	$	7,119	$	6,730

(1) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $55 million and $51 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2025, and December 31, 2024, respectively.

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

	As of or For the Six Months Ended June 30, 2025
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	3,851	$	394	$	1,335	$	5,916	$	178	$	242
Deferrals	264		26		45		198		67		9
Amortization	(195)		(31)		(72)		(158)		(59)		(10)
Balance as of end-of-period	$	3,920	$	389	$	1,308	$	5,956	$	186	$	241

	As of or For the Six Months Ended June 30, 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	190		23		59		205		71		10
Amortization	(180)		(32)		(74)		(153)		(53)		(9)
Balance as of end-of-period	$	3,761	$	412	$	1,361	$	5,843	$	172	$	240

DAC amortization expense of $262 million and $525 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $252 million and $501 million, respectively, was recorded for the corresponding periods in 2024.

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

	As of or For the Six Months Ended June 30, 2025
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	13	$	35	$	375
Amortization	(1)		(4)		(18)
Balance as of end-of-period	$	12	$	31	$	357

	As of or For the Six Months Ended June 30, 2024
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	15	$	42	$	413
Deferrals	–		–		1
Amortization	(1)		(4)		(20)
Balance as of end-of-period	$	14	$	38	$	394

VOBA amortization expense of $11 million and $23 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $12 million and $25 million, respectively, was recorded for the corresponding periods in 2024. No additions or write-offs were recorded for each respective period.

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

	As of or For the Six Months Ended June 30, 2025
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	113	$	16	$	27	$	42
Deferrals	–		–		–		10
Amortization	(5)		(1)		(1)		(1)
Balance as of end-of-period	$	108	$	15	$	26	$	51

	As of or For the Six Months Ended June 30, 2024
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	122	$	19	$	28	$	26
Deferrals	1		–		–		12
Amortization	(6)		(1)		(1)		–
Balance as of end-of-period	$	117	$	18	$	27	$	38

DSI amortization expense of $4 million and $8 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $4 million and $8 million, respectively, was recorded for the corresponding periods in 2024.

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

	As of or For the Six Months Ended June 30, 2025				As of or For the Six Months Ended June 30, 2024
	Variable Annuities		UL and Other		Variable Annuities		UL and Other
Balance as of beginning-of-year	$	273	$	6,406	$	278	$	5,579
Deferrals	7		573		9		544
Amortization	(12)		(183)		(12)		(139)
Balance as of end-of-period	268		6,796		275		5,984
Less: Ceded DFEL	–		233		–		257
Balance as of end-of-period, net of reinsurance	$	268	$	6,563	$	275	$	5,727

DFEL amortization of $91 million and $195 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2025, respectively, and $77 million and $151 million, respectively, was recorded for the corresponding periods in 2024.