DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2022

DAC, VOBA, DSI and DFEL [Abstract]

DAC, VOBA, DSI and DFEL

7. DAC, VOBA, DSI and DFEL

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

	As of December 31,
	2022		2021
DAC, VOBA and DSI
Traditional Life	$	1,383	$	1,254
UL and Other		6,100		5,902
Variable Annuities		3,879		3,856
Fixed Annuities		479		495
Group Protection		141		140
Retirement Plan Services		253		249
Total DAC, VOBA and DSI	$	12,235	$	11,896

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

	As of December 31,
	2022		2021
DFEL
UL and Other	$	4,766	$	3,934
Variable Annuities		286		291
Total DFEL	$	5,052	$	4,225

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

	For the Year Ended December 31, 2022
																Retirement
	Traditional			UL and			Variable			Fixed			Group			Plan
	Life			Other			Annuities			Annuities			Protection			Services
Balance as of beginning-of-year	$	1,195		$	5,360		$	3,717		$	448		$	140		$	235
Deferrals		266			539			391			60			98			20
Amortization		(128	)		(294	)		(357	)		(69	)		(97	)		(19	)
Balance as of end-of-year	$	1,333		$	5,605		$	3,751		$	439		$	141		$	236

	For the Year Ended December 31, 2021
																Retirement
	Traditional			UL and			Variable			Fixed			Group			Plan
	Life			Other			Annuities			Annuities			Protection			Services
Balance as of beginning-of-year	$	1,082		$	5,425		$	3,570		$	479		$	187		$	232
Business acquired (sold) through
reinsurance		-			(294	)		-			-			-			-
Deferrals		220			523			487			29			91			22
Amortization		(107	)		(294	)		(340	)		(60	)		(138	)		(19	)
Balance as of end-of-year	$	1,195		$	5,360		$	3,717		$	448		$	140		$	235

DAC amortization expense of $964 million, $958 million and $1.1 billion was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020, respectively.

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

	For the Year Ended December 31, 2022
	Traditional			UL and			Fixed
	Life			Other			Annuities
Balance as of beginning-of-year	$	59		$	511		$	20
Deferrals		-			2			-
Amortization		(9	)		(48	)		(3	)
Balance as of end-of-year	$	50		$	465		$	17

	For the Year Ended December 31, 2021
	Traditional			UL and			Fixed
	Life			Other			Annuities
Balance as of beginning-of-year	$	67		$	810		$	23
Business acquired (sold) through
reinsurance		-			(234	)		-
Deferrals		1			-			-
Amortization		(9	)		(65	)		(3	)
Balance as of end-of-year	$	59		$	511		$	20

VOBA amortization expense of $60 million, $77 million and $266 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020, respectively. No additions or write-offs were recorded for each respective year.

Estimated future amortization of VOBA (in millions), as of December 31, 2022, was as follows:

2023	$	45
2024		41
2025		38
2026		35
2027		30

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

	For the Year Ended December 31, 2022
										Retirement
	UL and			Variable			Fixed			Plan
	Other			Annuities			Annuities			Services
Balance as of beginning-of-year	$	31		$	139		$	27		$	14
Deferrals		1			1			-			4
Amortization		(2	)		(12	)		(4	)		(1	)
Balance as of end-of-year	$	30		$	128		$	23		$	17

	For the Year Ended December 31, 2021
										Retirement
	UL and			Variable			Fixed			Plan
	Other			Annuities			Annuities			Services
Balance as of beginning-of-year	$	35		$	150		$	30		$	14
Deferrals		1			3			-			1
Amortization		(5	)		(14	)		(3	)		(1	)
Balance as of end-of-year	$	31		$	139		$	27		$	14

DSI amortization expense of $19 million, $23 million and $21 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020, respectively.

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

	For the Year Ended						For the Year Ended
	December 31, 2022						December 31, 2021
	UL and			Variable			UL and			Variable
	Other			Annuities			Other			Annuities
Balance as of beginning-of-year	$	3,934		$	291		$	3,298		$	293
Business acquired (sold) through
reinsurance		-			-			(161	)		-
Deferrals		1,061			23			988			27
Amortization		(229	)		(28	)		(191	)		(29	)
Balance as of end-of-year	$	4,766		$	286		$	3,934		$	291

DFEL amortization of $257 million, $220 million and $815 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020, respectively.