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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 3 Months Ended
Mar. 31, 2025
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 31December 31
20252024
(in millions)
Protection Solutions
Term$307 $314 
Universal Life
172 170 
Variable Universal Life
1,102 1,083 
Indexed Universal Life
186 186 
Individual Retirement
GMxB Core
1,604 1,605 
EQUI-VEST Individual
154 154 
Investment Edge236 225 
SCS2,018 1,938 
Legacy Segment
GMxB Legacy504 517 
Group Retirement
EQUI-VEST Group
771 768 
Momentum82 83 
Corporate and Other
105 107 
Other
21 20 
Total$7,262 $7,170 
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.
Changes in the DAC asset were as follows:
Three Months Ended March 31, 2025
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of period$314 $170 $1,083 $186 $1,605 $154 $225 $1,938 $517 $768 $83 $107 $7,150 
Capitalization 2 5 35 3 37 3 16 157 5 15 3 — 281 
Amortization (2)
(9)(3)(16)(3)(38)(3)(5)(77)(18)(12)(4)(2)(190)
Balance, end of period$307 $172 $1,102 $186 $1,604 $154 $236 $2,018 $504 $771 $82 $105 $7,241 
______________
(1)“CB” defined as Closed Block.
(2)Includes an immaterial impact from Novation. See Note 1 for additional details.

Three Months Ended March 31, 2024
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG Momentum
CB
(in millions)
Balance, beginning of period$337 $174 $987 $188 $1,602 $155 $172 $1,571 $555 $742 $82 $116 $6,681 
Capitalization4 3 37 2 39 2 12 148 7 15 2 — 271 
Amortization (1)(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)    DAC amortization of $1 million related to Other not reflected in table above.
Changes in the Individual Retirement sales inducement assets were as follows:
Three Months Ended March 31,
20252024
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$117 $160 $127 $179 
Capitalization— — 1 — 
Amortization(3)(5)(3)(5)
Balance, end of period$114 $155 $125 $174 
Changes in the Protection Solutions unearned revenue liability were as follows:
Three Months Ended March 31,
20252024
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$114 $840 $250 $107 $754 $210 
Capitalization3 37 12 4 32 14 
Amortization(2)(13)(4)(2)(12)(3)
Balance, end of period$115 $864 $258 $109 $774 $221 
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, 2025December 31, 2024
(in millions)
Reconciliation
Term$1,292 $1,285 
Payout
4,782 5,050 
Group Pension - Benefit Reserve & DPL454 460 
Health1,353 1,362 
UL1,264 1,246 
Subtotal9,145 9,403 
  Whole Life Closed Block and Open Block products5,142 5,204 
Other (1)908 901 
Future policyholder benefits total15,195 15,508 
  Other policyholder funds and dividends payable2,177 2,105 
Total$17,372 $17,613 
_____________
(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:
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Protection SolutionsIndividual RetirementCorporate & OtherProtection SolutionsIndividual RetirementCorporate & Other
TermPayoutGroup PensionHealthTermPayoutGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$1,932 $— $— $(25)$2,133 $— $— $(21)
Beginning balance at original discount rate1,959 — — (26)2,058 — — (22)
Effect of changes in cash flow assumptions— — — — (18)— — — 
Effect of actual variances from expected experience(29)— — (2)(18)— — 1 
Adjusted beginning of period balance1,930 — — (28)2,022 — — (21)
Issuances11 — — — 11 — — — 
Interest accrual24 — — — 25 — — — 
Net premiums collected(46)— — 1 (49)— — 1 
Ending Balance at original discount rate1,919 — — (27)2,009 — — (20)
Effect of changes in discount rate assumptions(7)— — 1 17 — — 1 
Balance, end of period$1,912 $— $— $(26)$2,026 $— $— $(19)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$3,216 $5,050 $460 $1,337 $3,480 $4,464 $490 $1,484 
Beginning balance of original discount rate3,215 5,390 514 1,555 3,330 4,680 536 1,672 
Effect of changes in cash flow assumptions (1)
— (468)— — (20)— — — 
Effect of actual variances from expected experience(39)(1)— (6)(23)(3)1 1 
Adjusted beginning of period balance3,176 4,921 514 1,549 3,287 4,677 537 1,673 
Issuances11 201 — — 12 279 — — 
Interest accrual40 51 5 13 41 45 5 14 
Benefits payments(58)(127)(16)(38)(64)(113)(16)(41)
Ending Balance at original discount rate3,169 5,046 503 1,524 3,276 4,888 526 1,646 
Effect of changes in discount rate assumptions34 (264)(49)(197)65 (302)(53)(215)
Balance, end of period$3,203 $4,782 $454 $1,327 $3,341 $4,586 $473 $1,431 
Impact of flooring LFPB at zero1 — — — 1 — — — 
Net liability for future policy benefits$1,292 4,782 454 1,353 1,316 4,586 473 1,450 
Less: Reinsurance recoverable6 (960)— (1,060)24 (1,069)— (1,147)
Net liability for future policy benefits, after reinsurance recoverable$1,298 $3,822 $454 $293 $1,340 $3,517 $473 $303 
Weighted-average duration of liability for future policyholder benefits (years)6.87.76.98.36.98.07.08.6
______________
(1)For the first quarter 2025, this is the net income impact due to novation as described in Note 1.
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, 2025December 31, 2024
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,530 $5,613 
Expected future gross premiums (undiscounted)
6,511 6,597 
Expected future benefit payments and expenses (discounted; AOCI basis)3,203 3,216 
Expected future gross premiums (discounted; AOCI basis)3,503 3,507 
Payout
Expected future benefit payments and expenses (undiscounted)7,166 7,686 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)4,662 4,938 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)616 630 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)432 436 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,093 2,139 
Expected future gross premiums (undiscounted)
67 70 
Expected future benefit payments and expenses (discounted; AOCI basis)1,313 1,323 
Expected future gross premiums (discounted; AOCI basis)$53 $55 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Three Months Ended March 31,
2025202420252024
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$83 $88 $16 $16 
Payout
67 68 53 49 
Group Pension— — 5 5 
Health2 3 13 14 
Total$152 $159 $87 $84 
The following table provides the weighted average interest rates for the liability for future policy benefits:
March 31, 2025December 31, 2024
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate5.1 %5.2 %
Payout
Interest accretion rate4.4 %4.4 %
Current discount rate5.2 %5.3 %
Group Pension
Interest accretion rate3.4 %3.4 %
Current discount rate5.0 %5.2 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate5.2 %5.4 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Three Months Ended March 31,
20252024
Protection Solutions
UL
(in millions)
Balance, beginning of period$1,246 $1,208 
Beginning balance before AOCI adjustments1,302 1,245 
Effect of changes in interest rate & cash flow assumptions and model changes— — 
Effect of actual variances from expected experience5 2 
Adjusted beginning of period balance1,307 1,247 
Interest accrual14 13 
Net assessments collected17 18 
Benefit payments(22)(21)
Ending balance before shadow reserve adjustments1,316 1,257 
Effect of reserve adjustment recorded in AOCI(52)(47)
Balance, end of period$1,264 $1,210 
Net liability for additional liability $1,264 $1,210 
Less: Reinsurance recoverable— — 
Net liability for additional liability, after reinsurance recoverable$1,264 $1,210 
Weighted-average duration of additional liability - death benefit (years)19.319.7
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Three Months Ended March 31,
2025202420252024
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$145 $164 $14 $14 
Total$145 $164 $14 $14 
Three Months Ended March 31,
20252024
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.