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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 12 Months Ended
Dec. 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:
December 31
20242023
(in millions)
Protection Solutions
Term$314 $337 
Universal Life
170 174 
Variable Universal Life
1,083 987 
Indexed Universal Life
186 188 
Individual Retirement
GMxB Core
1,605 1,602 
EQUI-VEST Individual
154 155 
Investment Edge225 172 
SCS1,938 1,571 
Legacy Segment
GMxB Legacy517 555 
December 31
20242023
(in millions)
Group Retirement
EQUI-VEST Group
768 742 
Momentum83 82 
Corporate and Other
107 116 
Other
20 24 
Total$7,170 $6,705 
Annually, or as circumstances warrant, the Company reviews 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 2024, 2023 and 2022, the Company completed its 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 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, 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 14 8 159 10 153 11 70 645 24 70 11 — 1,175 
Amortization (2)(37)(12)(63)(12)(150)(12)(17)(278)(62)(44)(10)(9)(706)
Balance, end of period$314 $170 $1,083 $186 $1,605 $154 $225 $1,938 $517 $768 $83 $107 $7,150 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $5 million related to Other not reflected in table above.

Year Ended December 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 
Capitalization14 7 155 14 121 11 38 507 26 73 10 — 976 
Amortization (1)(39)(12)(57)(11)(144)(12)(14)(215)(64)(41)(17)(11)(637)
Balance, end of period$337 $174 $987 $188 $1,602 $155 $172 $1,571 $555 $742 $82 $116 $6,681 
______________
(1)    DAC amortization of $4 million related to Other not reflected in table above.
Year Ended December 31, 2022
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVULIULGMxB CoreEI IE SCSGMxB LegacyEGMomentum
CB
(in millions)
Balance, beginning of period$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 (2)(41)(12)(52)(11)(137)(12)(13)(169)(65)(41)(19)(11)(583)
Balance, end of period$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.
Changes in the Individual Retirement sales inducement assets were as follows:
Year Ended December 31,
202420232022
GMxB CoreGMxB LegacyGMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$127 $179 $137 $200 $147 $222 
Capitalization2 — 2 — 2 — 
Amortization(12)(19)(12)(21)(12)(22)
Balance, end of period$117 $160 $127 $179 $137 $200 
Changes in the Protection Solutions unearned revenue liability were as follows:
Year Ended December 31,
202420232022
ULVULIULULVULIULULVULIUL
(in millions)
Balance, beginning of period$107 $754 $210 $95 $684 $157 $80 $619 $94 
Capitalization15 135 55 19 115 64 21 105 71 
Amortization(8)(49)(15)(7)(45)(11)(6)(40)(8)
Balance, end of period$114 $840 $250 $107 $754 $210 $95 $684 $157 
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,
20242023
(in millions)
Reconciliation
Term$1,285 $1,348 
Payout
5,050 4,464 
Group Pension - Benefit Reserve & DPL460 490 
Health1,362 1,505 
UL1,246 1,193 
Subtotal9,403 9,000 
  Whole Life Closed Block and Open Block products5,204 5,444 
Other (1)901 970 
Future policyholder benefits total15,508 15,414 
  Other policyholder funds and dividends payable2,105 1,949 
Total$17,613 $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 EB.
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,
20242023
Protection SolutionsIndividual RetirementCorporate & OtherProtection SolutionsIndividual RetirementCorporate & Other
TermPayoutGroup PensionHealthTermPayoutGroup 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 assumptions21 — — (3)47 — — (6)
Effect of actual variances from expected experience(82)— — (5)(37)— — (12)
Adjusted beginning of period balance1,997 — — (30)2,088 — — (23)
Issuances52 — — — 65 — — — 
Interest accrual97 — — (1)100 — — (1)
Net premiums collected(187)— — 5 (195)— — 2 
Ending Balance at original discount rate1,959 — — (26)2,058 — — (22)
Effect of changes in discount rate assumptions(27)— — 1 75 — — 1 
Balance, end of period$1,932 $— $— $(25)$2,133 $— $— $(21)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$3,480 $4,464 $490 $1,484 $3,465 $3,517 $523 $1,553 
Beginning balance of original discount rate3,330 4,680 536 1,672 3,391 3,869 583 1,795 
Effect of changes in cash flow assumptions39 — — — 59 — — (6)
Effect of actual variances from expected experience(103)(2)2 (11)(45)(4)— (22)
Adjusted beginning of period balance3,266 4,678 538 1,661 3,405 3,865 583 1,767 
Issuances56 994 20 — 70 1,044 — — 
Interest accrual163 174 18 54 167 127 20 57 
Benefits payments(270)(456)(62)(160)(312)(356)(67)(152)
Ending Balance at original discount rate3,215 5,390 514 1,555 3,330 4,680 536 1,672 
Effect of changes in discount rate assumptions1 (340)(54)(218)150 (216)(46)(188)
Balance, end of period$3,216 $5,050 $460 $1,337 $3,480 $4,464 $490 $1,484 
Impact of flooring LFPB at zero1 — — — 1 — — — 
Net liability for future policy benefits1,285 5,050 460 1,362 1,348 4,464 490 1,505 
Less: Reinsurance recoverable8 (1,347)— (1,070)25 (969)— (1,191)
Net liability for future policy benefits, after reinsurance recoverable$1,293 $3,703 $460 $292 $1,373 $3,495 $490 $314 
Weighted-average duration of liability for future policyholder benefits (years)6.77.76.98.47.08.07.18.7
Year Ended December 31, 2022
Protection SolutionsIndividual RetirementCorporate & Other
TermPayoutGroup PensionHealth
( in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$2,485 $— $— $22 
Beginning balance at original discount rate1,864 — — 19 
Effect of changes in cash flow assumptions204 — — (10)
Effect of actual variances from expected experience31 — — (15)
Adjusted beginning of period balance
2,099 — — (6)
Issuances76 — — — 
Interest accrual97 — — — 
Net premiums collected(194)— — 1 
Ending Balance at original discount rate2,078 — — (5)
Effect of changes in discount rate assumptions22 — — — 
Balance, end of period$2,100 $— $— $(5)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$4,294 $3,661 $683 $2,092 
Beginning balance of original discount rate3,241 3,283 632 1,915 
Effect of changes in cash flow assumptions222 (3)— (5)
Effect of actual variances from expected experience31 (5)1 (13)
Adjusted beginning of period balance
3,494 3,275 $633 1,897 
Issuances82 781 — — 
Interest accrual168 103 21 61 
Benefits payments(353)(290)(71)(163)
Ending Balance at original discount rate3,391 3,869 583 1,795 
Effect of changes in discount rate assumptions74 (352)(60)(242)
Balance, end of period$3,465 $3,517 $523 $1,553 
Impact of flooring LFPB at zero— — — — 
Net liability for future policy benefits1,365 3,517 523 1,558 
Less: Reinsurance recoverable21 (466)— (1,242)
Net liability for future policy benefits, after reinsurance recoverable$1,386 $3,051 $523 $316 
Weighted-average duration of liability for future policyholder benefits (years)7.08.57.28.7
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:
December 31,
20242023
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,613 $5,878 
Expected future gross premiums (undiscounted)
6,597 6,979 
Expected future benefit payments and expenses (discounted; AOCI basis)3,216 3,480 
December 31,
20242023
Expected future gross premiums (discounted; AOCI basis)3,507 3,879 
Payout
Expected future benefit payments and expenses (undiscounted)7,686 6,630 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)4,938 4,350 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)630 668 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)436 471 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,139 2,318 
Expected future gross premiums (undiscounted)
70 85 
Expected future benefit payments and expenses (discounted; AOCI basis)1,323 1,468 
Expected future gross premiums (discounted; AOCI basis)$55 $68 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Year Ended December 31,
20242023
2022
20242023
2022
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$336 $352 $275 $66 $67 $70 
Payout
271 266 123 207 149 103 
Group Pension— — — 18 19 21 
Health12 15 9 54 58 61 
Total$619 $633 $407 $345 $293 $255 
The following table provides the weighted average interest rates for the liability for future policy benefits:
December 31,
20242023
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate5.2 %4.8 %
Payout
Interest accretion rate4.4 %4.2 %
Current discount rate5.3 %4.9 %
Group Pension
Interest accretion rate3.4 %3.3 %
Current discount rate5.2 %4.8 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate5.4 %4.9 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Year Ended December 31,
202420232022
Protection Solutions
UL
(in millions)
Balance, beginning of period$1,193 $1,109 $1,087 
Beginning balance before AOCI adjustments1,230 1,135 1,076 
Effect of changes in interest rate & cash flow assumptions and model changes17 21 8 
Effect of actual variances from expected experience2 10 25 
Adjusted beginning of period balance1,249 1,166 1,109 
Interest accrual56 52 49 
Net assessments collected70 69 68 
Benefit payments(73)(57)(91)
Ending balance before shadow reserve adjustments1,302 1,230 1,135 
Effect of reserve adjustment recorded in AOCI(56)(37)(26)
Balance, end of period$1,246 $1,193 $1,109 
Net liability for additional liability $1,246 $1,193 $1,109 
Less: Reinsurance recoverable— — — 
Net liability for additional liability, after reinsurance recoverable$1,246 $1,193 $1,109 
Weighted-average duration of additional liability - death benefit (years)19.419.922.0
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Year Ended December 31,
202420232022202420232022
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$663 $670 $666 $56 $51 $49 
Total$663 $670 $666 $56 $51 $49 
Year Ended December 31,
202420232022
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.