DEFERRED POLICY ACQUISITION COSTS, DEFERRED SALES INDUCEMENTS AND VALUE OF BUSINESS ACQUIRED (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Rollforward of Deferred Acquisition Costs and Value of Business Acquired

The following tables present a rollforward of deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA asset”) for the periods indicated:


AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2024 US$ MILLIONS	Annuity		Life		P&C		Total
DAC:
Balance, beginning of period	$	1,314	$	217	$	171	$	1,702
Additions	257		57		261		575
Derecognition1	(1,129)		—		—		(1,129)
Amortization	(36)		(10)		(235)		(281)
Net change	(908)		47		26		(835)
Balance, end of period	$	406	$	264	$	197	$	867
DSI:
Balance, beginning of period	$	257	$	—	$	—	$	257
Additions	96		—		—		96
Derecognition1	(246)		—		—		(246)
Amortization	(5)		—		—		(5)
Net change	(155)		—		—		(155)
Balance, end of period	$	102	$	—	$	—	$	102
VOBA asset:
Balance, beginning of period	$	40	$	301	$	168	$	509
Acquisition from business combination	9,276		—		—		9,276

Amortization	(134)		(11)		(70)		(215)

Net change	9,142		(11)		(70)		9,061
Balance, end of period	$	9,182	$	290	$	98	$	9,570
Total DAC, DSI and VOBA asset	$	9,690	$	554	$	295	$	10,539

1.See Note 16 for the details of effective settlement of a reinsurance arrangement, resulting in the derecognition of DAC and DSI.


AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2023 US$ MILLIONS	Annuity		Life		P&C		Total
DAC:
Balance, beginning of period	$	886	$	86	$	124	$	1,096
Additions	253		79		269		601
Amortization	(34)		(7)		(233)		(274)
Net change	219		72		36		327
Balance, end of period	$	1,105	$	158	$	160	$	1,423
DSI:
Balance, beginning of period	$	85	$	—	$	—	$	85
Additions	96		—		—		96
Amortization	(3)		—		—		(3)
Net change	93		—		—		93
Balance, end of period	$	178	$	—	$	—	$	178
VOBA asset:
Balance, beginning of period	$	26	$	310	$	68	$	404

Additions	18		18		—		36
Amortization	(1)		(13)		(41)		(55)
Net change	17		5		(41)		(19)
Balance, end of period	$	43	$	315	$	27	$	385
Total DAC, DSI and VOBA asset	$	1,326	$	473	$	187	$	1,986

Schedule of Projected VOBA Asset Amortization Expenses

The following table provides the projected VOBA asset amortization expenses for a five-year period and thereafter as of June 30, 2024:


Years	US$ MILLIONS
20241	$	461
2025	776
2026	717
2027	660
2028	616
Thereafter	6,340
Total amortization expense	$	9,570

1.Expected amortization for the remainder of 2024.