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DAC, VOBA, DSI and DFEL
 12 Months Ended
Dec. 31, 2018
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,

 



2018

 

2017

 

2016

 

Balance as of beginning-of-year

$

 7,909

 

$

 8,269

 

$

 8,620

 

Business acquired (sold) through reinsurance

 

 (246

)

 

 -

 

 

 -

 

Deferrals

 

 1,596

 

 

 1,345

 

 

 1,339

 

Amortization, net of interest:

 

 

 

 

 

 

 

 

 

Amortization, excluding unlocking, net of interest

 

 (913

)

 

 (922

)

 

 (879

)

Unlocking

 

 (115

)

 

 61

 

 

 (276

)

Adjustment related to realized gains (losses)

 

 (42

)

 

 (55

)

 

 (51

)

Adjustment related to unrealized gains (losses)

 

 1,320

 

 

 (789

)

 

 (484

)

Balance as of end-of-year

$

 9,509

 

$

 7,909

 

$

 8,269

 



Changes in VOBA (in millions) were as follows:







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



For the Years Ended December 31,

 



2018

 

2017

 

2016

 

Balance as of beginning-of-year

$

 499

 

$

 874

 

$

 873

 

Business acquired (sold) through reinsurance

 

 (11

)

 

 -

 

 

 -

 

Business acquired

 

 30

 

 

 -

 

 

 -

 

Deferrals

 

 7

 

 

 7

 

 

 3

 

Amortization:

 

 

 

 

 

 

 

 

 

Amortization, excluding unlocking

 

 (127

)

 

 (105

)

 

 (105

)

Unlocking

 

 (60

)

 

 (48

)

 

 36

 

Accretion of interest (1)

 

 48

 

 

 52

 

 

 52

 

Adjustment related to realized gains (losses)

 

 (2

)

 

 (1

)

 

 (2

)

Adjustment related to unrealized gains (losses)

 

 415

 

 

 (280

)

 

 17

 

Balance as of end-of-year

$

 799

 

$

 499

 

$

 874

 



(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, 2018, was as follows:













 

 

 



 

 

 

2019

$

 81 

 

2020

 

 77 

 

2021

 

 73 

 

2022

 

 67 

 

2023

 

 64 

 



Changes in DSI (in millions) were as follows:











 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



For the Years Ended December 31,

 



2018

 

2017

 

2016

 

Balance as of beginning-of-year

$

 287

 

$

 293

 

$

 301

 

Business acquired (sold) through reinsurance

 

 (21

)

 

 -

 

 

 -

 

Deferrals

 

 48

 

 

 29

 

 

 25

 

Amortization, net of interest:

 

 

 

 

 

 

 

 

 

Amortization, excluding unlocking, net of interest

 

 (28

)

 

 (30

)

 

 (28

)

Unlocking

 

 -

 

 

 (4

)

 

 (2

)

Adjustment related to realized gains (losses)

 

 (1

)

 

 (2

)

 

 (2

)

Adjustment related to unrealized gains (losses)

 

 13

 

 

 1

 

 

 (1

)

Balance as of end-of-year

$

 298

 

$

 287

 

$

 293

 



Changes in DFEL (in millions) were as follows:











 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



For the Years Ended December 31,

 



2018

 

2017

 

2016

 

Balance as of beginning-of-year

$

 1,429

 

$

 1,855

 

$

 1,923

 

Deferrals

 

 874

 

 

 753

 

 

 628

 

Amortization, net of interest:

 

 

 

 

 

 

 

 

 

Amortization, excluding unlocking, net of interest

 

 (474

)

 

 (383

)

 

 (345

)

Unlocking

 

 (52

)

 

 (3

)

 

 (63

)

Adjustment related to realized (gains) losses

 

 (19

)

 

 (18

)

 

 (11

)

Adjustment related to unrealized (gains) losses

 

 1,005

 

 

 (775

)

 

 (277

)

Balance as of end-of-year

$

 2,763

 

$

 1,429

 

$

 1,855