DAC, VOBA, DSI and DFEL

3 Months Ended

Mar. 31, 2023

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		As of
	March 31,		December 31,
	2023		2022
DAC, VOBA and DSI
Traditional Life	$	1,354	$	1,336
UL and Other		6,037		6,002
Variable Annuities		4,035		4,047
Fixed Annuities		475		479
Group Protection		142		141
Retirement Plan Services		261		258
Total DAC, VOBA and DSI	$	12,304	$	12,263

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

	As of		As of
	March 31,		December 31,
	2023		2022
DFEL
UL and Other	$	4,936	$	4,735
Variable Annuities		308		310
Total DFEL	$	5,244	$	5,045

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

	For the Three Months Ended March 31, 2023
																Retirement
	Traditional			UL and			Variable			Fixed			Group			Plan
	Life			Other			Annuities			Annuities			Protection			Services
Balance as of beginning-of-year	$	1,286		$	5,518		$	3,880		$	439		$	141		$	241
Deferrals		55			119			85			14			25			6
Amortization		(35	)		(72	)		(93	)		(17	)		(24	)		(5	)
Balance as of end-of-period	$	1,306		$	5,565		$	3,872		$	436		$	142		$	242

	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	$	1,146		$	5,269		$	3,860		$	448		$	140		$	239
Deferrals		266			537			390			60			98			21
Amortization		(126	)		(288	)		(370	)		(69	)		(97	)		(19	)
Balance as of end-of-year	$	1,286		$	5,518		$	3,880		$	439		$	141		$	241

DAC amortization expense of $246 million and $241 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022, respectively.

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

	For the Three Months Ended March 31, 2023
	Traditional			UL and			Fixed
	Life			Other			Annuities
Balance as of beginning-of-year	$	50		$	454		$	17
Deferrals		-			-			1
Amortization		(2	)		(11	)		(1	)
Balance as of end-of-period	$	48		$	443		$	17

	For the Year Ended December 31, 2022
	Traditional			UL and			Fixed
	Life			Other			Annuities
Balance as of beginning-of-year	$	59		$	499		$	20
Deferrals		-			2			-
Amortization		(9	)		(47	)		(3	)
Balance as of end-of-year	$	50		$	454		$	17

VOBA amortization expense of $13 million and $15 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022, respectively. No additions or write-offs were recorded for each respective year.

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

	For the Three Months Ended March 31, 2023
										Retirement
	UL and			Variable			Fixed			Plan
	Other			Annuities			Annuities			Services
Balance as of beginning-of-year	$	30		$	167		$	23		$	17
Deferrals		-			-			-			2
Amortization		(1	)		(4	)		(1	)		-
Balance as of end-of-period	$	29		$	163		$	22		$	19

	For the Year Ended December 31, 2022
										Retirement
	UL and			Variable			Fixed			Plan
	Other			Annuities			Annuities			Services
Balance as of beginning-of-year	$	31		$	181		$	27		$	14
Deferrals		1			2			-			4
Amortization		(2	)		(16	)		(4	)		(1	)
Balance as of end-of-year	$	30		$	167		$	23		$	17

DSI amortization expense of $6 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022.

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

	For the Three Months Ended				For the Year Ended
	March 31, 2023				December 31, 2022
	UL and		Variable		UL and		Variable
	Other		Annuities		Other		Annuities
Balance as of beginning-of-year	$	4,735	$	310	$	3,902	$	318

Deferrals		262			5			1,060			22
Amortization		(61	)		(7	)		(227	)		(30	)
Balance as of end-of-period	$	4,936		$	308		$	4,735		$	310

DFEL amortization of $68 million and $65 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022, respectively.