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	$	9,509		$	7,909		$	8,269
Business acquired (sold) through reinsurance		-			(246	)		-
Business recaptured through reinsurance		59			-			-
Deferrals		1,900			1,596			1,345
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(922	)		(913	)		(922	)
Unlocking		(471	)		(115	)		61
Adjustment related to realized (gains) losses		(43	)		(42	)		(55	)
Adjustment related to unrealized (gains) losses		(2,614	)		1,320			(789	)
Balance as of end-of-year	$	7,418		$	9,509		$	7,909

Changes in VOBA (in millions) were as follows:

	For the Years Ended December 31,
	2019			2018			2017
Balance as of beginning-of-year	$	799		$	499		$	874
Business acquired (sold) through reinsurance		-			(11	)		-
Business acquired		-			30			-
Deferrals		6			7			7
Amortization:
Amortization, excluding unlocking		(115	)		(127	)		(105	)
Unlocking		143			(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	$	327		$	799		$	499

⁽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	$	298		$	287		$	293
Business acquired (sold) through reinsurance		-			(21	)		-
Deferrals		26			48			29
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(28	)		(28	)		(30	)
Unlocking		(3	)		-			(4	)
Adjustment related to realized (gains) losses		(2	)		(1	)		(2	)
Adjustment related to unrealized (gains) losses		(10	)		13			1
Balance as of end-of-year	$	281		$	298		$	287

Changes in DFEL (in millions) were as follows:

	For the Years Ended December 31,
	2019			2018			2017
Balance as of beginning-of-year	$	2,763		$	1,429		$	1,855
Business recaptured through reinsurance		5			-			-
Deferrals		1,092			874			753
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(533	)		(474	)		(383	)
Unlocking		(426	)		(52	)		(3	)
Adjustment related to realized (gains) losses		(11	)		(19	)		(18	)
Adjustment related to unrealized (gains) losses		(2,244	)		1,005			(775	)
Balance as of end-of-year	$	646		$	2,763		$	1,429