DAC, VOBA, DSI and DFEL

6 Months Ended

Jun. 30, 2023

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
	June 30,		December 31,
	2023		2022
DAC, VOBA and DSI
Traditional Life	$	1,366	$	1,336
UL and Other		6,074		6,002
Variable Annuities		4,030		4,047
Fixed Annuities		465		479
Group Protection		145		141
Retirement Plan Services		261		258
Total DAC, VOBA and DSI	$	12,341	$	12,263

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


	As of		As of
	June 30,		December 31,
	2023		2022
DFEL
UL and Other	$	5,139	$	4,735
Variable Annuities		305		310
Total DFEL	$	5,444	$	5,045

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



	For the Six Months Ended June 30, 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		105			239			176			23			53			10
Amortization		(71	)		(144	)		(187	)		(34	)		(49	)		(9	)
Balance as of end-of-period	$	1,320		$	5,613		$	3,869		$	428		$	145		$	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 $248 million and $494 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, 2023, respectively, and $242 million and $483 million for the corresponding periods in 2022.

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



	For the Six Months Ended June 30, 2023
	Traditional			UL and			Fixed
	Life			Other			Annuities

Balance as of beginning-of-year	$	50		$	454		$	17
Deferrals		-			1			-
Amortization		(4	)		(23	)		(1	)
Balance as of end-of-period	$	46		$	432		$	16



	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 $14 million and $28 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, 2023, respectively, and $15 million and $30 million for the corresponding periods in 2022. No additions or write-offs were recorded for each respective year.

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



	For the Six Months Ended June 30, 2023
										Retirement
	UL and			Variable			Fixed			Plan
	Other			Annuities			Annuities			Services

Balance as of beginning-of-year	$	30		$	167		$	23		$	17
Deferrals		-			2			-			2
Amortization		(1	)		(8	)		(2	)		-
Balance as of end-of-period	$	29		$	161		$	21		$	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 $5 million and $11 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023, respectively, and $6 million and $12 million for the corresponding periods in 2022.

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


	For the Six Months Ended						For the Year Ended
	June 30, 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		529			10			1,060			22
Amortization		(125	)		(15	)		(227	)		(30	)
Balance as of end-of-period	$	5,139		$	305		$	4,735		$	310

DFEL amortization of $71 million and $140 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023, respectively, and $63 million and $128 million for the corresponding periods in 2022.