Other Revenues and Other Expenses

3 Months Ended

Mar. 31, 2024

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

11. 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 $51 million and $50 million for the three months ended March 31, 2024 and 2023, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended March 31,
	2024		2023
	(In millions)
Compensation	$	103	$	89
Contracted services and other labor costs	58		62
Transition services agreements	6		11
Premium and other taxes, licenses and fees	10		13
Volume related costs, excluding compensation, net of DAC capitalization	147		135
Interest expense on debt	17		18
Other	88		66
Total other expenses	$	429	$	394

Capitalization of DAC

See Note 6 for additional information on the capitalization of DAC.

Related Party Expenses

See Note 13 for a discussion of related party expenses included in the table above.