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Value of Business Acquired ("VOBA"), Deferred Acquisition Costs ("DAC"), and Deferred Sales Inducements ("DSI")
 9 Months Ended
Sep. 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 September 30, 2025 and December 31, 2024.
September 30, 2025December 31, 2024
(In millions)
Customer relationships and contracts$371 $435 
Value of business acquired 1,232 1,349 
Deferred acquisition costs 3,495 3,036 
Deferred sales inducements 821 625 
Value of distribution asset65 74 
Computer software284 277 
Trademarks, tradenames, and other 203 180 
Total Other intangible assets, net$6,471 $5,976 
The following tables roll forward VOBA by product for the nine months ended September 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(93)(3)(5)(5)(11)(117)
Balance at September 30, 2025
$799 $19 $179 $121 $114 $1,232 

Indexed AnnuitiesFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
(In millions)
Balance at January 1, 2024
$1,025 $27 $191 $134 $69 $1,446 
Amortization(101)(4)(5)(5)(5)(120)
Actuarial model updates and refinements (a)— — — — 63 63 
Balance at September 30, 2024
$924 $23 $186 $129 $127 $1,389 
(a) net of amortization of ($15 million).

VOBA amortization expense of $117 million and $135 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2025 and 2024, respectively.
The following tables roll forward DAC by product for the nine months ended September 30, 2025 and 2024.
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2025
$1,874 $376 $781 $3,031 
Capitalization388 118 207 713 
Amortization(145)(78)(37)(260)
Balance at September 30, 2025
$2,117 $416 $951 $3,484 
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
(In millions)
Balance at January 1, 2024
$1,378 $288 $545 $2,211 
Capitalization496 147 199 842 
Amortization(112)(61)(27)(200)
Balance at September 30, 2024
$1,762 $374 $717 $2,853 
(a) Excludes insignificant amounts of DAC related to funding agreement backed notes ("FABN") and PRT.
DAC amortization expense of $260 million and $200 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the nine months ended September 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 September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
(In millions)
Indexed Annuities$2,117 $1,874 
Fixed Rate Annuities416 376 
Universal Life951 781 
FABN6 4 
PRT5 1 
Total$3,495 $3,036 
The following table rolls forward DSI for our indexed annuity products for the nine months ended September 30, 2025 and 2024:
Nine Months Ended September 30,
20252024
(In millions)
Balance at January 1,$625 $346 
Capitalization243 219 
Amortization(47)(27)
Balance at September 30,$821 $538 
DSI amortization expense of $47 million and $27 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Earnings for the nine months ended September 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 and 2025, F&G undertook a review of all significant assumptions and revised several assumptions relating to their deferred annuity (indexed annuity and fixed rate annuity) and IUL products. For the nine months ended September 30, 2025, F&G updated the assumption for option budgets, surrenders, lapses, mortality, and free partial withdrawals. For the year ended December 31, 2024, F&G updated assumptions including surrender rates, GMWB election timing, premium persistency, mortality improvement, and option budgets. For both periods, these assumption updates resulted in increased amortization rates on some DAC and DSI balances, primarily for indexed annuities. 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.