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Other Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Other Intangible Assets | Other Intangible Assets The following table reconciles to Other intangible assets, net, on the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022:
|  | December 31, 2023 |  | December 31, 2022
|  | (In millions)
Customer relationships and contracts |  | $ | 174 |  |  | $ | 202 |
VOBA |  | 1,446 |  |  | 1,615 |
DAC |  | 2,215 |  |  | 1,411 |
DSI |  | 346 |  |  | 200 |
Value of distribution asset |  | 86 |  |  | 100 |
Computer software |  | 266 |  |  | 196 |
Trademarks, tradenames, and other |  | 94 |  |  | 87 |
Total Other intangible assets, net |  | $ | 4,627 |  |  | $ | 3,811 |
The following tables roll forward VOBA by product for the years ended December 31, 2023 and December 31, 2022:
| FIA |  | Fixed Rate Annuities |  | Immediate Annuities |  | Universal Life |  | Traditional Life |  |  |  |  |  |  | Total
| (In millions)
Balance at January 1, 2023 | $ | 1,166 |  |  | $ | 32 |  |  | $ | 201 |  |  | $ | 143 |  |  | $ | 73 |  |  |  |  |  |  |  | $ | 1,615 |
Amortization | (141) |  |  | (5) |  |  | (10) |  |  | (9) |  |  | (4) |  |  |  |  |  |  |  | (169) |
Balance at December 31, 2023 | $ | 1,025 |  |  | $ | 27 |  |  | $ | 191 |  |  | $ | 134 |  |  | $ | 69 |  |  |  |  |  |  |  | $ | 1,446 |
| FIA |  | Fixed Rate Annuities |  | Immediate Annuities |  | Universal Life |  | Traditional Life |  |  |  |  |  |  | Total
| (In millions)
Balance at January 1, 2022 | $ | 1,314 |  |  | $ | 39 |  |  | $ | 212 |  |  | $ | 153 |  |  | $ | 25 |  |  |  |  |  |  |  | $ | 1,743 |
Amortization | (148) |  |  | (7) |  |  | (11) |  |  | (10) |  |  | (4) |  |  |  |  |  |  |  | (180) |
Shadow Premium Deficiency Testing (“PDT”) | — |  |  | — |  |  | — |  |  | — |  |  | 52 |  |  |  |  |  |  |  | 52 |
Balance at December 31, 2022 | $ | 1,166 |  |  | $ | 32 |  |  | $ | 201 |  |  | $ | 143 |  |  | $ | 73 |  |  |  |  |  |  |  | $ | 1,615 |
VOBA amortization expense of $169 million, $180 million, and $195 million, was recorded in Depreciation and amortization on the Consolidated Statements of Earnings for the years ended December 31, 2023, 2022, and 2021 respectively. The following table presents a reconciliation of VOBA to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022:
|  | December 31, 2023 |  | December 31, 2022
|  | (In millions)
FIA |  | $ | 1,025 |  |  | $ | 1,166 |
Fixed Rate Annuities |  | 27 |  |  | 32 |
Immediate Annuities |  | 191 |  |  | 201 |
Universal Life |  | 134 |  |  | 143 |
Traditional Life |  | 69 |  |  | 73 |
Total |  | $ | 1,446 |  |  | $ | 1,615 |
The following tables roll forward DAC by product for the years ended December 31, 2023 and December 31, 2022:
| FIA |  | Fixed Rate Annuities |  | Universal Life |  | Total (a)
| (In millions)
Balance at January 1, 2023 | $ | 971 |  |  | $ | 83 |  |  | $ | 348 |  |  | $ | 1,402 |
Capitalization | 510 |  |  | 177 |  |  | 229 |  |  | 916 |
Amortization | (103) |  |  | (51) |  |  | (32) |  |  | (186) |
Reinsurance related adjustments | — |  |  | 79 |  |  | — |  |  | 79 |
Balance at December 31, 2023 | $ | 1,378 |  |  | $ | 288 |  |  | $ | 545 |  |  | $ | 2,211 |
| FIA |  | Fixed Rate Annuities |  | Universal Life |  | Total (a)
| (In millions)
Balance at January 1, 2022 | $ | 564 |  |  | $ | 38 |  |  | $ | 173 |  |  | $ | 775 |
Capitalization | 474 |  |  | 56 |  |  | 196 |  |  | 726 |
Amortization | (67) |  |  | (11) |  |  | (21) |  |  | (99) |
Balance at December 31, 2022 | $ | 971 |  |  | $ | 83 |  |  | $ | 348 |  |  | $ | 1,402 |
(a) Excludes insignificant amounts of DAC related to FABN. DAC amortization expense of $186 million, $99 million, and $46 million, was recorded in Depreciation and amortization on the Consolidated Statements of Earnings for the year s ended December 31, 2023, 2022, and 2021, respectively, excluding insignificant amounts related to FABN. The following table presents a reconciliation of DAC to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022:
|  | December 31, 2023 |  | December 31, 2022
|  | (In millions)
FIA |  | $ | 1,378 |  |  | $ | 971 |
Fixed Rate Annuities |  | 288 |  |  | 83 |
Universal Life |  | 545 |  |  | 348 |
Funding Agreements |  | 4 |  |  | 9 |
Total |  | $ | 2,215 |  |  | $ | 1,411 |
The following tables roll forward DSI for the years ended December 31, 2023 and December 31, 2022:
| FIA |  | Total
| (In millions)
Balance at January 1, 2023 | $ | 200 |  |  | $ | 200 |
Capitalization | 168 |  |  | 168 |
Amortization | (22) |  |  | (22) |
Balance at December 31, 2023 | $ | 346 |  |  | $ | 346 |
| FIA |  | Total
| (In millions)
Balance at January 1, 2022 | $ | 127 |  |  | $ | 127 |
Capitalization | 87 |  |  | 87 |
Amortization | (14) |  |  | (14) |
Balance at December 31, 2022 | $ | 200 |  |  | $ | 200 |
DSI amortization expense of $22 million, $14 million, and $7 million, was recorded in Depreciation and amortization on the Consolidated Statements of Earnings for the years ended December 31, 2023, 2022, and 2021, respectively. The following table presents a reconciliation of DSI to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022:
|  | December 31, 2023 |  | December 31, 2022
|  | (In millions)
FIA |  | $ | 346 |  |  | $ | 200 |
Total |  | $ | 346 |  |  | $ | 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 annuities, 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 and immediate annuity. Refer to Note A - Business and Summary of Significant Accounting Policies for further information about accounting policies for amortization of VOBA, DAC and DSI. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuity (FIA and fixed rate annuity) and IUL products, including surrender rates, partial withdrawal rates, mortality improvement, premium persistency, and option budgets. All updates to these assumptions brought us more in line with our company and overall industry experience since the prior assumption update. 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 December 31, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows:
| Estimated Amortization Expense
Fiscal Year | (In millions)
2024 | $ | 149 |
2025 | 139 |
2026 | 127 |
2027 | 116 |
2028 | 105 |
Thereafter | 810 |
Total | $ | 1,446 |
Definite and Indefinite Lived Other Intangible Assets Other intangible assets as of December 31, 2023, consist of the following:
| Cost |  | Accumulated amortization |  | Net carrying amount |  | Weighted average useful life (years)
| (In millions)
Customer relationships and contracts | $ | 948 |  |  | $ | (774) |  |  | $ | 174 |  |  | 10
Computer software | 651 |  |  | (385) |  |  | 266 |  |  | 2 to 10
Value of distribution asset (VODA) | 140 |  |  | (54) |  |  | 86 |  |  | 15
Trademarks, tradenames, and other | 146 |  |  | (52) |  |  | 94 |  |  | Varies
Total |  |  |  |  | $ | 620 |  |  |
Other intangible assets as of December 31, 2022, consist of the following:
| Cost |  | Accumulated amortization |  | Net carrying amount |  | Weighted average useful life (years)
| (In millions)
Customer relationships and contracts | $ | 916 |  |  | $ | (714) |  |  | $ | 202 |  |  | 10
Computer software | 537 |  |  | (341) |  |  | 196 |  |  | 2 to 10
Value of distribution Asset (VODA) | 140 |  |  | (40) |  |  | 100 |  |  | 15
Trademarks, tradenames, and other | 129 |  |  | (42) |  |  | 87 |  |  | Varies
Total |  |  |  |  | $ | 585 |  |  |
Amortization expense for amortizable intangible assets, which consist primarily of VODA, customer relationships and computer software and definite lived trademarks, tradenames and other, was $152 million, $134 million, and $136 million for the years ended December 31, 2023, 2022 and 2021, respectively. Estimated amortization expense for the next five years for assets owned at December 31, 2023, is $126 million in 2024, $101 million in 2025, $78 million in 2026, $61 million in 2027 and $47 million in 2028.

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