DAC, VOBA, DSI and DFEL

3 Months Ended

Mar. 31, 2026

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

DAC, VOBA, DSI and DFEL

DAC, VOBA, DSI and DFEL

The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:

	As of  March 31, 2026		As of  December 31, 2025
DAC, VOBA and DSI
Variable Annuities	$	4,267	$	4,240
Fixed Annuities	504		477
Traditional Life	1,176		1,208
UL and Other	6,232		6,219
Group Protection	179		178
Retirement Plan Services	310		308
Other Operations	9		7
Total DAC, VOBA and DSI	$	12,677	$	12,637

The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:

	As of  March 31, 2026		As of  December 31, 2025
DFEL
Variable Annuities	$	280	$	282
UL and Other	7,485		7,266
Other Operations (1)	57		57
Total DFEL	$	7,822	$	7,605

(1) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $57 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of March 31, 2026, and December 31, 2025.

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

	As of or For the Three Months Ended March 31, 2026
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	4,107	$	452	$	1,180	$	5,864	$	178	$	247
Business acquired (sold) through
reinsurance	–		–		–		(1)		–		–
Deferrals	141		45		3		104		29		6
Amortization	(111)		(17)		(33)		(81)		(28)		(5)
Balance as of end-of-period	$	4,137	$	480	$	1,150	$	5,886	$	179	$	248

	As of or For the Three Months Ended March 31, 2025
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	3,959	$	393	$	1,294	$	5,754	$	136	$	246
Business acquired (sold) through
reinsurance	–		–		–		–		13		–
Deferrals	135		11		22		87		33		5
Amortization	(99)		(16)		(36)		(77)		(14)		(5)
Balance as of end-of-period	$	3,995	$	388	$	1,280	$	5,764	$	168	$	246

DAC amortization expense of $275 million and $247 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025, respectively.

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

	As of or For the Three Months Ended March 31, 2026
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	11	$	28	$	330
Amortization	–		(2)		(9)
Balance as of end-of-period	$	11	$	26	$	321

	As of or For the Three Months Ended March 31, 2025
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	13	$	35	$	366
Amortization	–		(2)		(9)
Balance as of end-of-period	$	13	$	33	$	357

VOBA amortization expense of $11 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for each of the three months ended March 31, 2026 and 2025. No additions or write-offs were recorded for each respective period.

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

	As of or For the Three Months Ended March 31, 2026
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	133	$	14	$	25	$	61
Deferrals	–		–		–		1
Amortization	(3)		(1)		–		–
Balance as of end-of-period	$	130	$	13	$	25	$	62

	As of or For the Three Months Ended March 31, 2025
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	145	$	17	$	26	$	42
Deferrals	–		–		–		4
Amortization	(3)		(2)		–		–
Balance as of end-of-period	$	142	$	15	$	26	$	46

DSI amortization expense of $4 million and $5 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025, respectively.

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

	As of or For the Three Months Ended March 31, 2026				As of or For the Three Months Ended March 31, 2025
	Variable Annuities		UL and Other		Variable Annuities		UL and Other
Balance as of beginning-of-year	$	282	$	7,266	$	293	$	6,406
Deferrals	4		314		4		279
Amortization	(6)		(95)		(7)		(98)
Balance as of end-of-period	280		7,485		290		6,587
Less: reinsurance recoverables	–		2,594		–		2,456
Balance as of end-of-period, net of reinsurance	$	280	$	4,891	$	290	$	4,131

DFEL amortization of $101 million and $105 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025, respectively.