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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 6 Months Ended
Jun. 30, 2023
Contract holder Bonus Interest Credits [Abstract]  
DAC AND OTHER DEFERRED ASSETS/LIABILITIES
6)    DAC AND OTHER DEFERRED ASSETS/LIABILITIES
Changes in the DAC asset for the six months ended June 30, 2023 and 2022 were as follows:
Six Months Ended June 30, 2023
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of period$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
Capitalization 8 3 73 6 54 6 21 228 14 33 5 — 451 
Amortization (2)(20)(6)(28)(5)(70)(6)(7)(96)(32)(20)(9)(5)(304)
Balance, end of period$350 $176 $934 $186 $1,609 $156 $162 $1,411 $575 $723 $85 $122 $6,489 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $2 million related to Other not reflected in table above.
Six Months Ended June 30, 2022
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of period$385 $180 $799 $180 $1,653 $156 $121 $1,070 $631 $677 $94 $138 $6,084 
Capitalization9 6 72 8 60 6 21 189 16 36 7 — 430 
Amortization (2)(21)(6)(25)(5)(67)(6)(7)(81)(33)(20)(10)(6)(287)
Balance, end of period$373 $180 $846 $183 $1,646 $156 $135 $1,178 $614 $693 $91 $132 $6,227 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $2 million related to Other not reflected in table above.

Changes in the Individual Retirement sales inducement assets for the six months ended June 30, 2023 and 2022 were as follows:
Six Months Ended June 30,
20232022
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$137 $200 $147 $222 
Capitalization1 — 1 — 
Amortization(6)(11)(6)(11)
Balance, end of period$132 $189 $142 $211 

Changes in the Protection Solutions unearned revenue liability for the six months ended June 30, 2023 and 2022 were as follows:
Six Months Ended June 30,
20232022
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$95 $684 $157 $80 $619 $94 
Capitalization9 56 33 11 50 36 
Amortization(3)(22)(5)(3)(20)(3)
Balance, end of period$101 $718 $185 $88 $649 $127 
The following table presents a reconciliation of DAC to the consolidated balance sheet as of June 30, 2023 and December 31, 2022.
June 30, 2023December 31, 2022
(in millions)
Protection Solutions
Term$350 $362 
Universal Life
176 179 
Variable Universal Life
934 889 
Indexed Universal Life
186 185 
Individual Retirement
GMxB Core
1,609 1,625 
EQUI-VEST Individual
156 156 
Investment Edge162 148 
SCS1,411 1,279 
Legacy Segment
GMxB Legacy575 593 
Group Retirement
EQUI-VEST Group
723 710 
Momentum85 89 
Corporate and Other
122 127 
Other
23 27 
Total$6,512 $6,369 

Annually, or as circumstances warrant, we will review the associated decrements assumptions. (i.e. mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the unearned revenue liability and sales inducement asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Protection SolutionsIndividual RetirementLegacy Corporate & OtherProtection SolutionsIndividual RetirementLegacy Corporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$2,100 $— $— $— $(5)$2,485 $— $— $— $22 
Beginning balance at original discount rate2,078 — — — (5)1,864 — — — 19 
Effect of changes in cash flow assumptions8 — — — (1)— — — — — 
Effect of actual variances from expected experience4 — — — (6)62 — — — (12)
Adjusted beginning of period balance2,090 — — — (12)1,926 — — — 7 
Issuances32 — — — — 45 — — — — 
Interest accrual50 — — — — 48 — — — — 
Net premiums collected(100)— — — 1 (97)— — — — 
Ending Balance at original discount rate2,072 — — — (11)1,922 — — — 7 
Effect of changes in discount rate assumptions36 — — — — 174 — — — 1 
Balance, end of period$2,108 $— $— $— $(11)$2,096 $— $— $— $8 


Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Protection SolutionsIndividual RetirementLegacyCorporate & OtherProtection SolutionsIndividual RetirementLegacyCorporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(Dollars in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$3,465 $828 $2,689 $523 $1,553 $4,294 $1,114 $2,547 $683 $2,092 
Beginning balance of original discount rate3,391 845 3,024 583 1,795 3,241 883 2,400 632 1,915 
Effect of changes in cash flow assumptions9 — — — (1)— — — — — 
Effect of actual variances from expected experience5 — — — (6)68 — (2)— (13)
Adjusted beginning of period balance3,405 845 3,024 583 1,788 3,309 883 2,398 632 1,902 
Issuances34 26 473 — — 47 14 342 — — 
Interest accrual84 19 44 10 29 83 20 32 11 31 
Benefits payments(183)(46)(131)(34)(71)(219)(51)(96)(35)(84)
Ending Balance at original discount rate3,340 844 3,410 559 1,746 3,220 866 2,676 608 1,849 
Effect of changes in discount rate assumptions91 (10)(309)(56)(224)310 36 (233)(36)(154)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Protection SolutionsIndividual RetirementLegacyCorporate & OtherProtection SolutionsIndividual RetirementLegacyCorporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(Dollars in millions)
Balance, end of period$3,431 $834 $3,101 $503 $1,522 $3,530 $902 $2,443 $572 $1,695 
Impact of flooring LFPB at zero1 — — — — — — — — — 
Net liability for future policy benefits$1,324 $834 $3,101 $503 $1,533 $1,437 $902 $2,443 $572 $1,687 
Less: Reinsurance recoverable24 — (680)— (1,217)14 — (276)— (1,342)
Net liability for future policy benefits, after reinsurance recoverable$1,348 $834 $2,421 $503 $316 $1,451 $902 $2,167 $572 $345 
Weighted-average duration of liability for future policyholder benefits (years)7.09.47.87.18.87.59.68.47.28.9


The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheet as of June 30, 2023 and December 31, 2022.
June 30, 2023December 31, 2022
(in millions)
Reconciliation
Term$1,324 $1,365 
Individual Retirement - Payout834 828 
Legacy - Payout3,101 2,689 
Group Pension - Benefit Reserve & DPL503 523 
Health1,533 1,558 
UL1,145 1,109 
Subtotal8,440 8,072 
  Whole Life Closed Block and Open Block products5,542 5,664 
Other (1)890 908 
Future policyholder benefits total14,872 14,644 
  Other policyholder funds and dividends payable1,914 1,959 
Total$16,786 $16,603 
_____________
(1)Primarily consists of Future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and Employee Benefits.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,918 $6,022 
Expected future gross premiums (undiscounted)7,134 7,273 
Expected future benefit payments and expenses (discounted; AOCI basis)3,431 3,465 
Expected future gross premiums (discounted; AOCI basis)3,875 3,904 
Payout - Legacy
Expected future benefit payments and expenses (undiscounted)4,533 3,947 
June 30, 2023December 31, 2022
(in millions)
Expected future gross premiums (undiscounted)— — 
Expected future benefit payments and expenses (discounted; AOCI basis)3,018 2,607 
Expected future gross premiums (discounted; AOCI basis)— — 
Payout
Expected future benefit payments and expenses (undiscounted)1,446 1,460 
Expected future gross premiums (undiscounted)— — 
Expected future benefit payments and expenses (discounted; AOCI basis)806 801 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)698 730 
Expected future gross premiums (undiscounted)— — 
Expected future benefit payments and expenses (discounted; AOCI basis)483 563 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,432 2,510 
Expected future gross premiums (undiscounted)91 99 
Expected future benefit payments and expenses (discounted; AOCI basis)1,503 1,533 
Expected future gross premiums (discounted; AOCI basis)$72 $78 

The tables below summarize the revenue and interest related to nonparticipating traditional and limited payment contracts for the six months ended June 30, 2023 and 2022:
Six Months Ended June 30,Six Months Ended June 30,
2023202220232022
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$140 $137 $34 $35 
Payout - Legacy66 45 44 32 
Payout25 12 20 20 
Group Pension— — 10 11 
Health4 5 29 31 
Total$235 $199 $137 $129 
The following table provides the weighted average interest rates for the liability for future policy benefits as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.7 %
Current discount rate5.0 %5.1 %
Payout - Legacy
Interest accretion rate3.8 %3.4 %
Current discount rate5.1 %5.0 %
Payout
Interest accretion rate4.9 %4.9 %
Current discount rate5.1 %5.2 %
Group Pension
Interest accretion rate3.4 %3.4 %
Current discount rate5.0 %5.1 %
Health
Interest accretion rate3.4 %3.3 %
Current discount rate5.2 %5.2 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities for the six months ended June 30, 2023 and 2022:
Six months ended June 30,
20232022
Protection Solutions
UL
(Dollars in millions)
Balance, beginning of period$1,109 $1,087 
Beginning balance before AOCI adjustments1,135 1,076 
Effect of changes in interest rate & cash flow assumptions and model changes— 5 
Effect of actual variances from expected experience3 7 
Adjusted beginning of period balance1,138 1,088 
Interest accrual25 24 
Net assessments collected36 33 
Benefit payments(30)(36)
Ending balance before shadow reserve adjustments1,169 1,109 
Effect of reserve adjustment recorded in AOCI(24)(16)
Balance, end of period$1,145 $1,093 
Net liability for additional liability $1,145 $1,093 
Less: Reinsurance recoverable— — 
Net liability for additional liability, after reinsurance recoverable$1,145 $1,093 
Weighted-average duration of additional liability - death benefit (years)21.422.9
The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022.
Six Months Ended June 30,
2023202220232022
AssessmentsInterest Accretion
Revenue and Interest Accretion
UL$350 $310 $25 $24 
Total$350 $310 $25 $24 

Six Months Ended June 30,
20232022
Weighted Average Interest Rate
UL4.5 %4.5 %
Interest accretion rate4.5 %4.5 %

The discount rate used for additional insurance liabilities reserve is based on the crediting rate at issue.