Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements

9 Months Ended

Sep. 30, 2023

Deferred Charges, Insurers [Abstract]

Deferred Policy Acquisition Costs, Deferred Reinsurance Losses, Deferred Reinsurance Gains And Deferred Sales Inducements

DEFERRED POLICY ACQUISITION COSTS, DEFERRED REINSURANCE AND DEFERRED SALES INDUCEMENTS

Deferred Policy Acquisition Costs

The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance:

	Nine Months Ended September 30, 2023
	Fixed Annuities		Variable Annuities		Term Life		Variable / Universal Life		Total
	(in thousands)
Balance, beginning of period	$	102,251	$	3,736,454	$	648,837	$	2,442,883	$	6,930,425
Capitalization	77,409		180,239		114,860		412,902		785,410
Amortization expense	(15,270)		(245,590)		(47,256)		(90,768)		(398,884)
Other(1)	0		(393,385)		0		(12)		(393,397)
Balance, end of period	$	164,390	$	3,277,718	$	716,441	$	2,765,005	$	6,923,554

(1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information.

	Nine Months Ended September 30, 2022
	Fixed Annuities		Variable Annuities		Term Life		Variable / Universal Life		Total
	(in thousands)
Balance, beginning of period	$	84,479	$	3,806,733	$	577,084	$	2,561,011	$	7,029,307
Capitalization	14,235		213,698		97,395		395,907		721,235
Amortization expense	(10,059)		(255,420)		(40,383)		(78,522)		(384,384)
Other(1)	0		0		(322)		(541,429)		(541,751)
Balance, end of period	$	88,655	$	3,765,011	$	633,774	$	2,336,967	$	6,824,407

(1) Other includes the impact of the reinsurance agreement with Lotus Re.

Deferred Reinsurance Losses

The following tables show a rollforward for the lines of business that contain DRL balances, along with a reconciliation to the Company's total DRL balance:

	Nine Months Ended September 30, 2023
	Variable Annuities		Term Life		Total
	(in thousands)
Balance, beginning of period	$	223,515	$	69,378	$	292,893
Amortization expense	(22,283)		(6,350)		(28,633)
Other	(8)		0		(8)
Balance, end of period	$	201,224	$	63,028	$	264,252

	Nine Months Ended September 30, 2022
	Variable Annuities		Term Life		Total
	(in thousands)
Balance, beginning of period	$	254,577	$	78,426	$	333,003
Amortization expense	(23,225)		(6,841)		(30,066)
Other	(8)		0		(8)
Balance, end of period	$	231,344	$	71,585	$	302,929

Deferred Reinsurance Gains

The following tables show a rollforward for the lines of business that contain DRG balances, along with a reconciliation to the Company's total DRG balance:

	Nine Months Ended September 30, 2023
	Fixed Annuities		Variable Annuities		Variable / Universal Life		Total
	(in thousands)
Balance, beginning of period	$	57,898	$	0	$	1,434,958	$	1,492,856
Amortization	(7,141)		(10,265)		(53,834)		(71,240)
Other(1)	28		277,133		0		277,161
Balance, end of period	$	50,785	$	266,868	$	1,381,124	$	1,698,777

(1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information.

	Nine Months Ended September 30, 2022
	Fixed Annuities		Variable Annuities		Variable / Universal Life		Total
	(in thousands)
Balance, beginning of period	$	78,138	$	0	$	174,598	$	252,736
Amortization	(4,815)		0		(61,631)		(66,446)
Other(1)	(13,803)		0		1,340,312		1,326,509
Balance, end of period	$	59,520	$	0	$	1,453,279	$	1,512,799

(1) Includes $1,352 million deferred gain related to the reinsurance agreement with Lotus Re, entered into January 1, 2022.

Deferred Sales Inducements

The following table shows a rollforward of DSI balances for variable annuity products, which is the only line of business that contains a DSI balance, along with a reconciliation to the Company's total DSI balance:

	Nine Months Ended September 30,
	2023		2022
	Variable Annuities
	(in thousands)
Balance, beginning of period	$	381,504	$	414,619
Capitalization	2,053		751
Amortization expense	(23,881)		(25,546)
Other	(2)		0
Balance, end of period	$	359,674	$	389,824