Other Revenues and Other Expenses

12 Months Ended

Dec. 31, 2023

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

14. 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 $199 million, $217 million and $264 million for the years ended December 31, 2023, 2022 and 2021, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Years Ended December 31,
	2023		2022		2021
	(In millions)
Compensation	$	383	$	336	$	360
Contracted services and other labor costs	282		266		249
Transition services agreements	30		55		119
Establishment costs	—		63		93
Premium and other taxes, licenses and fees	55		49		47
Volume related costs, excluding compensation, net of DAC capitalization	536		496		666
Interest expense on debt	70		70		67
Other	269		359		223
Total other expenses	$	1,625	$	1,694	$	1,824

Capitalization of DAC

See Note 7 for additional information on the capitalization of DAC.

Interest Expense on Debt

See Note 12 for attribution of interest expense by debt issuance.

Related Party Expenses

See Note 17 for a discussion of related party expenses included in the table above.