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Value of Business Acquired ("VOBA"), Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI")
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Value of Business Acquired ("VOBA"), Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI") Value of Business Acquired ("VOBA"), Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI")
The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024.
June 30, 2025December 31, 2024
(In millions)
Customer relationships and contracts$397 $435 
Value of business acquired 1,272 1,349 
Deferred acquisition costs 3,359 3,036 
Deferred sales inducements 753 625 
Value of distribution asset68 74 
Computer software281 277 
Trademarks, tradenames, and other 196 180 
Total Other intangible assets, net$6,326 $5,976 
The following tables roll forward VOBA by product for the six months ended June 30, 2025 and 2024.
Indexed AnnuitiesFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
(In millions)
Balance at January 1, 2025
$892 $22 $184 $126 $125 $1,349 
Amortization(62)(2)(3)(4)(6)(77)
Balance at June 30, 2025
$830 $20 $181 $122 $119 $1,272 

Indexed AnnuitiesFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
(In millions)
Balance at January 1, 2024
$1,025 $27 $191 $134 $69 $1,446 
Amortization(66)(3)(4)(4)(3)(80)
Actuarial model updates and refinements (a)— — — — 63 63 
Balance at June 30, 2024
$959 $24 $187 $130 $129 $1,429 
(a) net of amortization of ($15 million).
VOBA amortization expense of $77 million and $95 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2025 and 2024, respectively.
The following tables roll forward DAC by product for the six months ended June 30, 2025 and 2024.
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2025
$1,874 $376 $781 $3,031 
Capitalization262 87 138 487 
Amortization(92)(51)(24)(167)
Balance at June 30, 2025
$2,044 $412 $895 $3,351 
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2024
$1,378 $288 $545 $2,211 
Capitalization336 92 134 562 
Amortization(69)(39)(17)(125)
Balance at June 30, 2024
$1,645 $341 $662 $2,648 
(a) Excludes insignificant amounts of DAC related to funding agreement backed notes ("FABN") and PRT.
DAC amortization expense of $167 million and $125 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2025 and 2024, respectively, excluding insignificant amounts related to FABN and PRT.
The following table presents a reconciliation of DAC to the table above, which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024:
June 30, 2025December 31, 2024
(In millions)
Indexed Annuities$2,044 $1,874 
Fixed Rate Annuities412 376 
Universal Life895 781 
Funding Agreements4 4 
PRT4 1 
Total$3,359 $3,036 
The following table rolls forward DSI for our indexed annuity products for the six months ended June 30, 2025 and 2024:
Six Months Ended June 30,
20252024
(In millions)
Balance at January 1,$625 $346 
Capitalization158 120 
Amortization(30)(16)
Balance at June 30,$753 $450 
DSI amortization expense of $30 million and $16 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the six months ended June 30, 2025 and 2024, 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 PRT. Those assumptions 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, and DAC reflect the Company’s best estimates for policyholder behavior, consistent with the development of assumptions for indexed annuities and immediate annuities.
F&G reviews cash flow assumptions annually, generally in the third quarter. In 2024, 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. For the six months ended June 30, 2025, F&G updated the assumption for option budgets. For the year ended December 31, 2024, F&G updated assumptions including surrender rates, GMWB election timing, premium persistency, mortality improvement and option budgets. All updates to these assumptions brought F&G more in line with our Company and overall industry experience since the prior assumption update.
There has been no material change to the estimated future amortization expense of intangible assets since December 31, 2024.