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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
 12 Months Ended
Dec. 31, 2023
Insurance [Abstract]  
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS DAC AND OTHER DEFERRED ASSETS/LIABILITIES
The following table presents a reconciliation of DAC to the consolidated balance sheets:
December 31,
20232022
(in millions)
Protection Solutions
Term$337 $362 
Universal Life
174 179 
Variable Universal Life
987 889 
Indexed Universal Life
188 185 
Individual Retirement
GMxB Core
1,602 1,625 
EQUI-VEST Individual
155 156 
Investment Edge172 148 
SCS1,571 1,279 
Legacy Segment
GMxB Legacy555 593 
Group Retirement
EQUI-VEST Group
742 710 
Momentum82 89 
Corporate and Other
116 127 
Other
24 27 
Total$6,705 $6,369 

Annually, or as circumstances warrant, we 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.
During the third quarter of 2023, 2022 and 2021, we completed our annual assumption update and the impact to the current period amortization of DAC and DAC like balances due to the new assumptions is immaterial. There were as no other material changes to the inputs, judgements or calculation processes used in the DAC calculation this period or year.
Changes in the DAC asset were as follows:
Year Ended December 31, 2023
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of year$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
Capitalization 14 7 155 14 121 11 38 507 26 73 10 — 976 
Amortization (2)(39)(12)(57)(11)(144)(12)(14)(215)(64)(41)(17)(11)(637)
Balance, end of year$337 $174 $987 $188 $1,602 $155 $172 $1,571 $555 $742 $82 $116 $6,681 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $4 million related to Other not reflected in table above.
Year Ended December 31, 2022
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG Momentum
CB
(in millions)
Balance, beginning of year$385 $180 $799 $180 $1,653 $156 $121 $1,070 $631 $677 $94 $138 $6,084 
Capitalization18 11 142 16 109 12 40 378 27 74 14 — 841 
Amortization (1)
(41)(12)(52)(11)(137)(12)(13)(169)(65)(41)(19)(11)(583)
Balance, end of year$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
______________
(1)DAC amortization of $3 million related to Other not reflected in table above.

Year Ended December 31, 2021
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVULIULGMxB CoreEI IE SCSGMxB LegacyEGMomentum
CB
(in millions)
Balance beginning of the year$403 $177 $714 $162 $1,646 $154 $94 $855 $667 $634 $101 $150 $5,757 
Capitalization26 15 133 28 141 15 38 350 30 84 16 — 876 
Amortization (2)(44)(12)(48)(10)(134)(13)(11)(135)(66)(41)(23)(12)(549)
Balance, December 31, 2021$385 $180 $799 $180 $1,653 $156 $121 $1,070 $631 $677 $94 $138 $6,084 
______________
(1)    DAC amortization of $3 million related to Other not reflected in table above.
Changes in the Individual Retirement sales inducement assets were as follows:
Year Ended December 31,
20232022
2021
GMxB CoreGMxB LegacyGMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of year$137 $200 $147 $222 $158 $246 
Capitalization2 — 2 — 1 — 
Amortization(12)(21)(12)(22)(12)(24)
Balance, end of year$127 $179 $137 $200 $147 $222 
Changes in the Protection Solutions unearned revenue liability were as follows:
Year Ended December 31,
20232022
2021
ULVULIULULVULIULULVULIUL
(in millions)
Balance, beginning of year$95 $684 $157 $80 $619 $94 $60 $566 $24 
Capitalization19 115 64 21 105 71 25 92 74 
Amortization(7)(45)(11)(6)(40)(8)(5)(39)(4)
Balance, end of year$107 $754 $210 $95 $684 $157 $80 $619 $94 
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS
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 sheets:
December 31,
20232022
(in millions)
Reconciliation
Term$1,348 $1,365 
Individual Retirement - Payout844 828 
Legacy - Payout3,620 2,689 
Group Pension - Benefit Reserve & DPL490 523 
Health1,505 1,558 
UL1,193 1,109 
Subtotal9,000 8,072 
  Whole Life Closed Block and Open Block products5,444 5,664 
Other (1)970 908 
Future policyholder benefits total15,414 14,644 
  Other policyholder funds and dividends payable1,949 1,959 
Total$17,363 $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 summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts:
Year Ended December 31,
20232022
Protection SolutionsIndividual RetirementLegacy Corporate & OtherProtection SolutionsIndividual RetirementLegacy Corporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of year$2,100 $— $— $— $(5)$2,485 $— $— $— $22 
Beginning balance at original discount rate2,078 — — — (5)1,864 — — — 19 
Effect of changes in cash flow assumptions47 — — — (6)204 — — — (10)
Effect of actual variances from expected experience(37)— — — (12)31 — — — (15)
Adjusted beginning of period balance2,088 — — — (23)2,099 — — — (6)
Issuances65 — — — — 76 — — — — 
Interest accrual100 — — — (1)97 — — — — 
Net premiums collected(195)— — — 2 (194)— — — 1 
Ending Balance at original discount rate2,058 — — — (22)2,078 — — — (5)
Year Ended December 31,
20232022
Protection SolutionsIndividual RetirementLegacy Corporate & OtherProtection SolutionsIndividual RetirementLegacy Corporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(in millions)
Effect of changes in discount rate assumptions75 — — — 1 22 — — — — 
Balance, end of year$2,133 $— $— $— $(21)$2,100 $— $— $— $(5)
Present Value of Expected Future Policy Benefits
Balance, beginning of year$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 assumptions59 — — — (6)222 (2)(1)— (5)
Effect of actual variances from expected experience(45)— (4)— (22)31 (1)(4)1 (13)
Adjusted beginning of period balance3,405 845 3,020 583 1,767 3,494 880 2,395 633 1,897 
Issuances70 47 997 — — 82 23 758 — — 
Interest accrual167 39 88 20 57 168 40 63 21 61 
Benefits payments(312)(91)(265)(67)(152)(353)(98)(192)(71)(163)
Ending Balance at original discount rate3,330 840 3,840 536 1,672 3,391 845 3,024 583 1,795 
Effect of changes in discount rate assumptions150 4 (220)(46)(188)74 (17)(335)(60)(242)
Balance, end of year$3,480 $844 $3,620 $490 $1,484 $3,465 $828 $2,689 $523 $1,553 
Impact of flooring LFPB at zero1 — — — — — — — — — 
Net liability for future policy benefits$1,348 844 3,620 490 1,505 1,365 828 2,689 523 1,558 
Less: Reinsurance recoverable25 (1)(968)— (1,191)21 — (465)— (1,242)
Net liability for future policy benefits, after reinsurance recoverable$1,373 $843 $2,652 $490 $314 $1,386 $828 $2,224 $523 $316 
Weighted-average duration of liability for future policyholder benefits (years)7.09.37.77.18.77.09.58.17.28.7
Year Ended December 31, 2021
Protection SolutionsIndividual RetirementLegacyCorporate & Other
TermPayoutPayoutGroup PensionHealth
Present Value of Expected Net Premiums
Balance, beginning of year$2,492 $— $— $— $35 
Beginning balance at original discount rate1,762 — — — 29 
Effect of changes in cash flow assumptions69 — — — — 
Effect of actual variances from expected experience15 — — — (8)
Adjusted beginning of year balance1,846 — — — 21 
Issuances111 — — — — 
Interest accrual92 — — — 1 
Net premiums collected(185)— — — (3)
Ending Balance at original discount rate1,864 — — — 19 
Effect of changes in discount rate assumptions621 — — — 3 
Balance, end of year$2,485 $— $— $— $22 
Present Value of Expected Future Policy Benefits
Balance, beginning of year$4,475 $1,158 $2,250 $780 $2,334 
Beginning balance of original discount rate3,184 883 1,993 686 2,028 
Effect of changes in cash flow assumptions69 34 4 (2)— 
Effect of actual variances from expected experience11 (8)9 1 (4)
Adjusted beginning of year balance3,264 909 2,006 685 2,024 
Issuances117 26 490 — — 
Interest accrual168 40 61 23 65 
Benefits payments(308)(92)(157)(76)(174)
Ending Balance at original discount rate3,241 883 2,400 632 1,915 
Effect of changes in discount rate assumptions1,053 231 147 51 177 
Balance, end of year$4,294 $1,114 $2,547 $683 $2,092 
Net liability for future policy benefits$1,809 $1,114 $2,547 $683 $2,070 
Less: Reinsurance recoverable(42)— (143)— (1,641)
Net liability for future policy benefits, after reinsurance recoverable$1,767 $1,114 $2,404 $683 $429 
Weighted-average duration of liability for future policyholder benefits (years)7.59.68.47.28.9
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:
December 31,
20232022
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,878 $6,022 
Expected future gross premiums (undiscounted)
6,979 7,273 
Expected future benefit payments and expenses (discounted; AOCI basis)3,480 3,465 
December 31,
20232022
Expected future gross premiums (discounted; AOCI basis)3,879 3,904 
Payout - Legacy
Expected future benefit payments and expenses (undiscounted)5,204 3,947 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)3,538 2,607 
Expected future gross premiums (discounted; AOCI basis)— — 
Payout
Expected future benefit payments and expenses (undiscounted)1,426 1,460 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)812 801 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)668 730 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)471 563 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,318 2,510 
Expected future gross premiums (undiscounted)
85 99 
Expected future benefit payments and expenses (discounted; AOCI basis)1,468 1,533 
Expected future gross premiums (discounted; AOCI basis)$68 $78 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Year Ended December 31,
202320222021202320222021
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$352 $275 $282 $67 $70 $75 
Payout - Legacy220 101 106 109 63 60 
Payout46 22 — 39 40 40 
Group Pension— — — 20 21 24 
Health15 9 10 58 61 64 
Total$633 $407 $398 $293 $255 $263 
The following table provides the weighted average interest rates for the liability for future policy benefits:
December 31,
20232022
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.7 %
Current discount rate4.8 %5.1 %
Payout - Legacy
Interest accretion rate4.0 %3.4 %
Current discount rate4.9 %5.0 %
Payout
Interest accretion rate5.0 %4.9 %
Current discount rate4.9 %5.2 %
Group Pension
Interest accretion rate3.3 %3.4 %
Current discount rate4.8 %5.1 %
Health
Interest accretion rate3.4 %3.3 %
Current discount rate4.9 %5.2 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Year Ended December 31,
202320222021
Protection Solutions
UL
(Dollars in millions)
Balance, beginning of year$1,109 $1,087 $1,021 
Beginning balance before AOCI adjustments1,135 1,076 1,005 
Effect of changes in interest rate & cash flow assumptions and model changes21 8 (4)
Effect of actual variances from expected experience10 25 8 
Adjusted beginning of period balance1,166 1,109 1,009 
Interest accrual52 49 45 
Net assessments collected69 68 85 
Benefit payments(57)(91)(63)
Ending balance before shadow reserve adjustments1,230 1,135 1,076 
Effect of reserve adjustment recorded in AOCI(37)(26)11 
Balance, end of year$1,193 $1,109 $1,087 
Net liability for additional liability $1,193 $1,109 $1,087 
Less: Reinsurance recoverable— — — 
Net liability for additional liability, after reinsurance recoverable$1,193 $1,109 $1,087 
Weighted-average duration of additional liability - death benefit (years)19.922.023.2
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Year Ended December 31,
202320222021202320222021
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$670 $666 $850 $51 $49 $45 
Total$670 $666 $850 $51 $49 $45 

Year Ended December 31,
202320222021
Weighted Average Interest Rate
UL4.5 %4.5 %4.5 %
Interest accretion rate4.5 %4.5 %4.5 %

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