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Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements
The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022.
March 31, 2023December 31, 2022
(In millions)
VOBA$1,572 $1,615 
DAC1,676 1,411 
DSI225 200 
Value of distribution asset97 100 
Computer software65 61 
Definite lived trademarks, tradenames, and other21 22 
Indefinite lived tradenames and other21 20 
Total Other intangible assets, net$3,677 $3,429 
The following tables roll forward VOBA by product for the three months ended March 31, 2023 and March 31, 2022.
FIAFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
(In millions)
Balance at January 1, 2023
$1,166 $32 $201 $143 $73 $1,615 
Amortization(36)(1)(3)(2)(1)(43)
Balance at March 31, 2023
$1,130 $31 $198 $141 $72 $1,572 
FIAFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
(In millions)
Balance at January 1, 2022
$1,314 $39 $212 $153 $25 $1,743 
Amortization(38)(2)(3)(3)(1)(47)
Shadow Premium Deficiency Testing (“PDT”)— — — — 53 53 
Balance at March 31, 2022
$1,276 $37 $209 $150 $77 $1,749 

The following table presents a reconciliation of VOBA to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
(In millions)
FIA$1,130 $1,166 
Fixed Rate Annuities31 32 
Immediate Annuities198 201 
Universal Life141 143 
Traditional Life72 73 
Total$1,572 $1,615 
The following tables roll forward DAC for the three months ended March 31, 2023 and March 31, 2022.
FIAFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2023
$971 $83 $348 $1,402 
Capitalization113 52 56 221 
Amortization(22)(5)(8)(35)
Reinsurance related adjustments— 79 — 79 
Balance at March 31, 2023
$1,062 $209 $396 $1,667 
FIAFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2022
$564 $38 $173 $775 
Capitalization98 8 47 153 
Amortization(13)(2)(4)(19)
Balance at March 31, 2022
$649 $44 $216 $909 
(a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”)
The following table presents a reconciliation of DAC to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 :
March 31, 2023December 31, 2022
(In millions)
FIA$1,062 $971 
Fixed Rate Annuities209 83 
Universal Life396 348 
Funding Agreements9 9 
Total$1,676 $1,411 
The following tables roll forward DSI for the three months ended March 31, 2023 and March 31, 2022:
FIATotal
(In millions)
Balance at January 1, 2023
$200 $200 
Capitalization29 29 
Amortization(4)(4)
Balance at March 31, 2023
$225 $225 
FIATotal
(In millions)
Balance at January 1, 2022
$127 $127 
Capitalization16 16 
Amortization(3)(3)
Balance at March 31, 2022
$140 $140 
The following table presents a reconciliation of DSI to the table above, which is included in Other intangible assets, net in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
(In millions)
FIA$225 $200 
Total$225 $200 
The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the FPB for life contingent immediate annuity and PRT contracts, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For FIA contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the company’s best estimates for policyholder behavior, consistent with the development of assumptions for FIA, immediate annuity, and PRT.
We review cash flow assumptions annually, generally in the third quarter. In 2022, F&G undertook a review of all significant assumptions and revised GMWB utilization for our deferred annuity contracts (FIA and fixed rate annuities) to reflect internal and industry experience in the first several contract years.
For the in-force liabilities as of March 31, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows:
Estimated Amortization Expense
Fiscal Year(In millions)
2023$122 
2024151 
2025139 
2026128 
2027117 
Thereafter915