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Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired

12 Months Ended

Dec. 31, 2023

Deferred Charges, Insurers [Abstract]

Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired

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

Deferred Policy Acquisition Costs

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

			Year Ended December 31, 2023
			Retirement Strategies						Individual Life												International Businesses												Total
			Individual Variable						Term Life						Variable/ Universal Life						Life Planner						Gibraltar Life and Other
			(in millions)
Balance, BOP			$	4,171					$	2,288					$	5,000					$	4,710					$	4,231					$	20,400
Capitalization			261						160						608						586						610						2,225
Amortization expense			(366)						(212)						(244)						(326)						(315)						(1,463)
Other adjustments(1)			(390)						1						0						20						0						(369)
Foreign currency adjustment			0						0						0						(81)						(84)						(165)
Balance, EOP			$	3,676					$	2,237					$	5,364					$	4,909					$	4,442					20,628
Other businesses																																	228
Total DAC balance																																	$	20,856

__________

(1)Includes the impact of the reinsurance transaction with AuguStar in Individual Retirement Strategies. See Note 15 for additional information.

			Year Ended December 31, 2022
			Retirement Strategies						Individual Life												International Businesses												Total
			Individual Variable						Term Life						Variable/ Universal Life						Life Planner						Gibraltar Life and Other
			(in millions)
Balance, BOP			$	4,872					$	2,372					$	4,679					$	4,685					$	4,135					$	20,743
Capitalization			277						127						556						579						600						2,139
Amortization expense			(401)						(211)						(235)						(318)						(300)						(1,465)
Other adjustments(1)			(577)						0						0						22						0						(555)
Foreign currency adjustment			0						0						0						(258)						(204)						(462)
Balance, EOP			$	4,171					$	2,288					$	5,000					$	4,710					$	4,231					20,400
Other businesses																																	146
Total DAC balance																																	$	20,546

__________

(1)Includes $(584) million in Individual Retirement Strategies related to the sale of PALAC. See Note 1 for additional information.

			Year Ended December 31, 2021
			Retirement Strategies						Individual Life												International Businesses												Total
			Individual Variable						Term Life						Variable/ Universal Life						Life Planner						Gibraltar Life and Other
			(in millions)
Balance, BOP			$	4,916					$	2,417					$	4,229					$	4,615					$	3,960					$	20,137
Capitalization			360						169						682						654						672						2,537
Amortization expense			(422)						(214)						(232)						(329)						(309)						(1,506)
Other adjustments			18						0						0						23						0						41
Foreign currency adjustment			0						0						0						(278)						(188)						(466)
Balance, EOP			$	4,872					$	2,372					$	4,679					$	4,685					$	4,135					20,743
Other businesses																																	230
Reclassified to “Assets held-for-sale”(1)																																	(1,210)
Total DAC balance																																	$	19,763

__________

(1)Represents “Assets held-for-sale” of $(1,112) million and $(98) million related to the sales of PALAC in Individual Retirement Strategies and the Full Service Retirement business in Other businesses, respectively.

Deferred Sales Inducements

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

			Year Ended December 31,
			2023						2022						2021
			(in millions)
Balance, BOP			$	446					$	799					$	866
Capitalization			2						1						1
Amortization expense			(38)						(46)						(73)
Other adjustments(1)			0						(308)						5
Balance, EOP			410						446						799
Other businesses			33						34						37
Reclassified to “Assets held-for-sale”(2)			0						0						(342)
Total DSI balance			$	443					$	480					$	494

__________

(1)The 2022 amount relates to the sale of PALAC. See Note 1 for additional information.

(2)Represents “Assets held-for-sale” in Individual Retirement Strategies.

Value of Business Acquired

The following table shows a rollforward of VOBA balances for Gibraltar Life and Other, which is the only line of business that contains a material VOBA balance, along with a reconciliation to the Company’s total VOBA balance:

			Year Ended December 31,
			2023						2022						2021
			(in millions)
Balance, BOP			$	597					$	746					$	911
Amortization expense			(49)						(58)						(75)
Other adjustments			0						0						(1)
Foreign currency adjustment			(37)						(91)						(89)
Balance, EOP			511						597						746
Other businesses			19						24						237
Reclassified to “Assets held-for-sale”(1)			0						0						(205)
Total VOBA balance			$	530					$	621					$	778

__________

(1)Represents “Assets held-for-sale” of $(27) million and $(178) million related to the sales of PALAC in Individual Retirement Strategies and the Full Services Retirement business in Other businesses, respectively.

The following table provides VOBA balances for the applicable businesses for the period ended December 31:

			2023
			(in millions)
Gibraltar Life			$	511
Aoba Life			19
Total			$	530

The following table provides estimated future amortization for the periods indicated:

			2024						2025						2026						2027						2028						Thereafter						Total
			(in millions)
Estimated future VOBA amortization			$	47					$	43					$	39					$	36					$	32					$	333					$	530

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- References

No definition available.

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X

- Definition

The entire disclosure for cost related directly to successful acquisition of new and renewal of insurance contract. Includes, but is not limited to, deferred policy acquisition cost, deferred sale inducement cost, and present value of future profit of insurance contract acquired in business combination.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479735/944-20-S99-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479432/944-30-50-2A

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//944-30/tableOfContent

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