Other Revenues and Other Expenses

6 Months Ended

Jun. 30, 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 $102 million for the three months and six months ended June 30, 2024, respectively, and $50 million and $100 million for the three months and six months ended June 30, 2023, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(In millions)
Compensation	$	94	$	96	$	197	$	185
Contracted services and other labor costs	63		72		121		134
Transition services agreements	5		7		11		18
Premium and other taxes, licenses and fees	12		18		22		31
Volume related costs, excluding compensation, net of DAC capitalization	138		142		285		277
Interest expense on debt	16		18		33		36
Other	55		57		143		123
Total other expenses	$	383	$	410	$	812	$	804

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.