DAC AND OTHER DEFERRED ASSETS/LIABILITIES

6 Months Ended

Jun. 30, 2024

Contract Holder Bonus Interest Credits [Abstract]

DAC AND OTHER DEFERRED ASSETS/LIABILITIES

DAC AND OTHER DEFERRED ASSETS/LIABILITIES

The following table presents a reconciliation of DAC to the consolidated balance sheets:

	June 30, 2024		December 31, 2023
	(in millions)
Term	$	326	$	338
UL	25		22
VUL	217		182
GMxB Core	1,432		1,483
EQUI-VEST Individual	147		150
Investment Edge	150		150
SCS	1,278		1,282
GMxB Legacy	205		208
EQUI-VEST Group	725		723
Momentum	85		82
Closed Block	112		117
Other	20		22
Total	$	4,722	$	4,759

Annually, or as circumstances warrant, we review the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.

Changes in the DAC asset were as follows:

	Six Months Ended June 30, 2024
	Term		UL		VUL		GMxB Core		EI		IE		SCS		GMxB Legacy		EG		Momentum		CB (1)		Total
	(in millions)
Balance, beginning of period	$	338	$	22	$	182	$	1,483	$	150	$	150	$	1,282	$	208	$	723	$	82	$	117	$	4,737
Capitalization (2)	7		4		40		28		6		10		110		14		32		5		—		256
Amortization (3)	(19)		(1)		(5)		(69)		(6)		(7)		(106)		(12)		(21)		(2)		(5)		(253)
Recovery of acquisition cost (4)	—		—		—		(10)		(3)		(3)		(8)		(5)		(9)		—		—		(38)
Balance, end of period	$	326	$	25	$	217	$	1,432	$	147	$	150	$	1,278	$	205	$	725	$	85	$	112	$	4,702

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(1)“CB” defined as Closed Block.

(2)DAC capitalization of $1 million related to Other not reflected in table above.

(3)DAC amortization of $2 million related to Other not reflected in table above.

(4)Related to the Internal Reinsurance Transaction and is recorded in other income.

	Six Months Ended June 30, 2023
	Term		UL		VUL		GMxB Core		EI		IE		SCS		GMxB Legacy		EG		Momentum		CB		Total
	(in millions)
Balance, beginning of period	$	362	$	20	$	112	$	1,585	$	156	$	147	$	1,266	$	213	$	711	$	89	$	127	$	4,788
Capitalization	7		2		36		26		5		12		113		14		33		5		—		253
Amortization	(19)		(1)		(4)		(68)		(6)		(7)		(92)		(12)		(21)		(8)		(5)		(243)
Recovery of acquisition cost	—		—		—		(6)		(2)		(1)		(4)		(2)		(6)		—		—		(21)
Balance, end of period	$	350	$	21	$	144	$	1,537	$	153	$	151	$	1,283	$	213	$	717	$	86	$	122	$	4,777

Changes in the sales inducement assets were as follows:

	Six Months Ended June 30,
	2024				2023
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(in millions)
Balance, beginning of period	$	126	$	179	$	137	$	200
Capitalization	—		—		—		—
Amortization	(6)		(10)		(6)		(10)
Balance, end of period	$	120	$	169	$	131	$	190

Changes in the unearned revenue liability were as follows:

	Six Months Ended June 30,
	2024				2023
	UL		VUL		UL		VUL
	(in millions)
Balance, beginning of period	$	105	$	551	$	95	$	525
Capitalization	8		34		9		29
Amortization	(4)		(17)		(3)		(17)
Recovery of unearned revenue	(1)		—		(1)		—
Balance, end of period	$	108	$	568	$	100	$	537