XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Value of Business Acquired, Deferred Acquisition Costs and Deferred Sales Inducements | 3 Months Ended
--- | ---
Mar. 31, 2024
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, 2024 and December 31, 2023.
|  | March 31, 2024 |  | December 31, 2023
|  | (In millions)
Customer relationships and contracts |  | $ | 340 |  |  | $ | 174 |
VOBA |  | 1,407 |  |  | 1,446 |
DAC |  | 2,412 |  |  | 2,215 |
DSI |  | 392 |  |  | 346 |
Value of distribution asset |  | 83 |  |  | 86 |
Computer software |  | 270 |  |  | 266 |
Trademarks, tradenames, and other |  | 123 |  |  | 94 |
Total Other intangible assets, net |  | $ | 5,027 |  |  | $ | 4,627 |
The following tables roll forward VOBA by product for the three months ended March 31, 2024 and March 31, 2023.
| Indexed Annuities |  | Fixed Rate Annuities |  | Immediate Annuities |  | Universal Life |  | Traditional Life |  |  |  |  |  |  | Total
| (In millions)
Balance at January 1, 2024 | $ | 1,025 |  |  | $ | 27 |  |  | $ | 191 |  |  | $ | 134 |  |  | $ | 69 |  |  |  |  |  |  |  | $ | 1,446 |
Amortization | (33) |  |  | (1) |  |  | (2) |  |  | (2) |  |  | (1) |  |  |  |  |  |  |  | (39) |
Balance at March 31, 2024 | $ | 992 |  |  | $ | 26 |  |  | $ | 189 |  |  | $ | 132 |  |  | $ | 68 |  |  |  |  |  |  |  | $ | 1,407 |
| Indexed Annuities |  | 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 | (36) |  |  | (1) |  |  | (3) |  |  | (2) |  |  | (1) |  |  |  |  |  |  |  | (43) |
Balance at March 31, 2023 | $ | 1,130 |  |  | $ | 31 |  |  | $ | 198 |  |  | $ | 141 |  |  | $ | 72 |  |  |  |  |  |  |  | $ | 1,572 |
VOBA amortization expense of $39 million and $43 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The following tables roll forward DAC by product for the three months ended March 31, 2024 and March 31, 2023.
| Indexed Annuities |  | Fixed Rate Annuities |  | Universal Life |  | Total (a)
| (In millions)
Balance at January 1, 2024 | $ | 1,378 |  |  | $ | 288 |  |  | $ | 545 |  |  | $ | 2,211 |
Capitalization | 147 |  |  | 44 |  |  | 66 |  |  | 257 |
Amortization | (33) |  |  | (19) |  |  | (8) |  |  | (60) |
Balance at March 31, 2024 | $ | 1,492 |  |  | $ | 313 |  |  | $ | 603 |  |  | $ | 2,408 |
| Indexed Annuities |  | Fixed Rate Annuities |  | Universal Life |  | Total (a)
| (In millions)
Balance at January 1, 2023 | $ | 971 |  |  | $ | 83 |  |  | $ | 348 |  |  | $ | 1,402 |
Capitalization | 113 |  |  | 52 |  |  | 56 |  |  | 221 |
Amortization | (22) |  |  | (5) |  |  | (8) |  |  | (35) |
Reinsurance related adjustments | — |  |  | 79 |  |  | — |  |  | 79 |
Balance at March 31, 2023 | $ | 1,062 |  |  | $ | 209 |  |  | $ | 396 |  |  | $ | 1,667 |
(a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) DAC amortization expense of $60 million and $35 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively, excluding insignificant amounts related to FABN. The following table presents a reconciliation of DAC to the table above, which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:
|  | March 31, 2024 |  | December 31, 2023
|  | (In millions)
Indexed Annuities |  | $ | 1,492 |  |  | $ | 1,378 |
Fixed Rate Annuities |  | 313 |  |  | 288 |
Universal Life |  | 603 |  |  | 545 |
Funding Agreements |  | 4 |  |  | 4 |
Total |  | $ | 2,412 |  |  | $ | 2,215 |
The following table rolls forward DSI for our indexed annuity products for the three months ended March 31, 2024 and March 31, 2023:
| Three Months Ended March 31,
| 2024 |  | 2023
| (In millions)
Balance at January 1, | $ | 346 |  |  | $ | 200 |
Capitalization | 54 |  |  | 29 |
Amortization | (8) |  |  | (4) |
Balance at March 31, | $ | 392 |  |  | $ | 225 |
DSI amortization expense of $8 million and $4 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the future policy benefits (“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 indexed annuity 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 indexed annuities and immediate annuities. 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 (indexed annuity 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. For the in-force liabilities as of March 31, 2024, the estimated amortization expense for VOBA in future fiscal periods is as follows:
| Estimated Amortization Expense
Fiscal Year | (In millions)
2024 | $ | 111 |
2025 | 138 |
2026 | 126 |
2027 | 115 |
2028 | 105 |
Thereafter | 812 |
Total | $ | 1,407 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration