Other Revenues and Other Expenses

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

9. Other Revenues and Other Expenses

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $53 million and $168 million for the three months and nine months ended September 30, 2022, respectively, and $67 million and $198 million for the three months and nine months ended September 30, 2021, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In millions)
Compensation	$	85	$	92	$	247	$	266
Contracted services and other labor costs	65		60		175		175
Transition services agreements	15		30		42		89
Establishment costs	20		24		45		68
Premium and other taxes, licenses and fees	12		11		37		35
Volume related costs, excluding compensation, net of DAC capitalization	122		149		349		477
Interest expense on debt	18		17		51		50
Other	70		52		332		164
Total other expenses	$	407	$	435	$	1,278	$	1,324

Related Party Expenses

See Note 11 for a discussion of related party expenses included in the table above.