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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 3 Months Ended
Mar. 31, 2024
Contract Holder Bonus Interest Credits [Abstract]  
DAC AND OTHER DEFERRED ASSETS/LIABILITIES DAC AND OTHER DEFERRED ASSETS/LIABILITIES
The following table presents a reconciliation of DAC to the consolidated balance sheets:
March 31,December 31,
20242023
(in millions)
Protection Solutions
Term$331 $337 
Universal Life
174 174 
Variable Universal Life
1,009 987 
Indexed Universal Life
187 188 
Individual Retirement
GMxB Core
1,604 1,602 
EQUI-VEST Individual
154 155 
Investment Edge180 172 
SCS1,655 1,571 
Legacy Segment
GMxB Legacy546 555 
Group Retirement
EQUI-VEST Group
747 742 
Momentum80 82 
Corporate and Other
114 116 
Other
23 24 
Total$6,804 $6,705 

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.
Changes in the DAC asset were as follows:
Three Months Ended March 31, 2024
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of period$337 $174 $987 $188 $1,602 $155 $172 $1,571 $555 $742 $82 $116 $6,681 
Capitalization 4 3 37 2 39 2 12 148 7 15 2 — 271 
Amortization (2)(10)(3)(15)(3)(37)(3)(4)(64)(16)(10)(4)(2)(171)
Balance, end of period$331 $174 $1,009 $187 $1,604 $154 $180 $1,655 $546 $747 $80 $114 $6,781 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $1 million related to Other not reflected in table above.

Three Months Ended March 31, 2023
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG Momentum
CB
(in millions)
Balance, beginning of period$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
Capitalization4 1 35 3 19 3 11 101 6 16 3 — 202 
Amortization (1)
(10)(3)(14)(3)(35)(3)(3)(47)(16)(10)(5)(3)(152)
Balance, end of period$356 $177 $910 $185 $1,609 $156 $156 $1,333 $583 $716 $87 $124 $6,392 
Changes in the Individual Retirement sales inducement assets were as follows:
Three Months Ended March 31,
20242023
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$127 $179 $137 $200 
Capitalization1 — — — 
Amortization(3)(5)(3)(5)
Balance, end of period$125 $174 $134 $195 
Changes in the Protection Solutions unearned revenue liability were as follows:
Three Months Ended March 31,
20242023
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$107 $754 $210 $95 $684 $157 
Capitalization4 32 14 5 27 17 
Amortization(2)(12)(3)(2)(10)(3)
Balance, end of period$109 $774 $221 $98 $701 $171 
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:
March 31, 2024December 31, 2023
(in millions)
Reconciliation
Term$1,316 $1,348 
Individual Retirement - Payout820 844 
Legacy - Payout3,767 3,620 
Group Pension - Benefit Reserve & DPL473 490 
Health1,450 1,505 
UL1,194 1,193 
Subtotal9,020 9,000 
  Whole Life Closed Block and Open Block products5,384 5,444 
Other (1)948 970 
Future policyholder benefits total15,352 15,414 
  Other policyholder funds and dividends payable1,972 1,949 
Total$17,324 $17,363 
_____________
(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:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Protection SolutionsIndividual RetirementLegacy Corporate & OtherProtection SolutionsIndividual RetirementLegacy Corporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$2,133 $— $— $— $(21)$2,100 $— $— $— $(5)
Beginning balance at original discount rate2,058 — — — (22)2,078 — — — (5)
Effect of changes in cash flow assumptions(18)— — — — 8 — — — — 
Effect of actual variances from expected experience(18)— — — 1 3 — — — (6)
Adjusted beginning of period balance2,022 — — — (21)2,089 — — — (11)
Issuances11 — — — — 15 — — — — 
Interest accrual25 — — — — 25 — — — — 
Net premiums collected(49)— — — 1 (51)— — — 1 
Ending Balance at original discount rate2,009 — — — (20)2,078 — — — (10)
Effect of changes in discount rate assumptions17 — — — 1 82 — — — — 
Balance, end of period$2,026 $— $— $— $(19)$2,160 $— $— $— $(10)
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
Protection SolutionsIndividual RetirementLegacy Corporate & OtherProtection SolutionsIndividual RetirementLegacy Corporate & Other
TermPayoutPayoutGroup PensionHealthTermPayoutPayoutGroup PensionHealth
(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$3,480 $844 $3,620 $490 $1,484 $3,465 $828 $2,689 $523 $1,553 
Beginning balance of original discount rate3,330 840 3,840 536 1,672 3,391 845 3,024 583 1,795 
Effect of changes in cash flow assumptions(20)(1)— — — 9 — — — — 
Effect of actual variances from expected experience(23)(1)(2)1 1 4 1 — (1)(7)
Adjusted beginning of period balance3,287 838 3,838 537 1,673 3,404 846 3,024 582 1,788 
Issuances12 11 269 — — 16 15 222 — — 
Interest accrual41 10 35 5 14 42 10 21 5 15 
Benefits payments(64)(23)(89)(16)(41)(95)(23)(65)(17)(33)
Ending Balance at original discount rate3,276 836 4,053 526 1,646 3,367 848 3,202 570 1,770 
Effect of changes in discount rate assumptions65 (16)(286)(53)(215)164 6 (258)(48)(197)
Balance, end of period$3,341 $820 $3,767 $473 $1,431 $3,531 $854 $2,944 $522 $1,573 
Impact of flooring LFPB at zero1 — — — — — — — — — 
Net liability for future policy benefits$1,316 820 3,767 473 1,450 1,371 854 2,944 522 1,583 
Less: Reinsurance recoverable24 (1)(1,068)— (1,147)27 — (589)— (1,258)
Net liability for future policy benefits, after reinsurance recoverable$1,340 $819 $2,699 $473 $303 $1,398 $854 $2,355 $522 $325 
Weighted-average duration of liability for future policyholder benefits (years)6.99.37.67.08.67.09.47.97.18.7
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:
March 31, 2024December 31, 2023
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,768 $5,878 
Expected future gross premiums (undiscounted)
6,900 6,979 
Expected future benefit payments and expenses (discounted; AOCI basis)3,341 3,480 
Expected future gross premiums (discounted; AOCI basis)3,738 3,879 
March 31, 2024December 31, 2023
(in millions)
Payout - Legacy
Expected future benefit payments and expenses (undiscounted)5,530 5,204 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)3,682 3,538 
Expected future gross premiums (discounted; AOCI basis)— — 
Payout
Expected future benefit payments and expenses (undiscounted)1,414 1,426 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)786 812 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)654 668 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)454 471 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,278 2,318 
Expected future gross premiums (undiscounted)
82 85 
Expected future benefit payments and expenses (discounted; AOCI basis)1,415 1,468 
Expected future gross premiums (discounted; AOCI basis)$64 $68 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Three Months Ended March 31,
2024202320242023
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$88 $70 $16 $17 
Payout - Legacy59 27 39 21 
Payout9 15 10 10 
Group Pension— — 5 5 
Health3 2 14 15 
Total$159 $114 $84 $68 
The following table provides the weighted average interest rates for the liability for future policy benefits:
March 31, 2024December 31, 2023
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate5.1 %4.8 %
Payout - Legacy
Interest accretion rate4.1 %4.0 %
Current discount rate5.1 %4.9 %
Payout
Interest accretion rate5.0 %5.0 %
Current discount rate5.2 %4.9 %
Group Pension
Interest accretion rate3.3 %3.3 %
Current discount rate5.1 %4.8 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate5.2 %4.9 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Three Months Ended March 31,
20242023
Protection Solutions
UL
(Dollars in millions)
Balance, beginning of period$1,193 $1,109 
Beginning balance before AOCI adjustments1,230 1,135 
Effect of changes in interest rate & cash flow assumptions and model changes— — 
Effect of actual variances from expected experience1 6 
Adjusted beginning of period balance1,231 1,141 
Interest accrual14 13 
Net assessments collected18 18 
Benefit payments(21)(18)
Ending balance before shadow reserve adjustments1,242 1,154 
Effect of reserve adjustment recorded in AOCI(48)(21)
Balance, end of period$1,194 $1,133 
Net liability for additional liability $1,194 $1,133 
Less: Reinsurance recoverable— — 
Net liability for additional liability, after reinsurance recoverable$1,194 $1,133 
Weighted-average duration of additional liability - death benefit (years)19.721.6
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Three Months Ended March 31,
2024202320242023
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$164 $172 $14 $13 
Total$164 $172 $14 $13 

Three Months Ended March 31,
20242023
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.