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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 6 Months Ended
Jun. 30, 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:
June 30December 31
20252024
(in millions)
Protection Solutions
Term$301 $314 
Universal Life
171 170 
Variable Universal Life
1,122 1,083 
Indexed Universal Life
186 186 
Individual Retirement
GMxB Core
1,599 1,605 
EQUI-VEST Individual
154 154 
Investment Edge250 225 
SCS2,107 1,938 
Legacy Segment
GMxB Legacy494 517 
Group Retirement
EQUI-VEST Group
776 768 
Momentum80 83 
Corporate and Other
103 107 
Other
18 20 
Total$7,361 $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:
Six Months Ended June 30, 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 5 7 72 6 70 5 36 326 9 31 5 — 572 
Amortization (2)
(18)(6)(33)(6)(76)(5)(11)(157)(32)(23)(8)(4)(379)
Balance, end of period$301 $171 $1,122 $186 $1,599 $154 $250 $2,107 $494 $776 $80 $103 $7,343 
______________
(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, 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 
Capitalization8 4 77 5 74 6 29 306 14 32 5 — 560 
Amortization (1)(19)(6)(30)(6)(74)(6)(8)(131)(31)(21)(2)(5)(339)
Balance, end of period$326 $172 $1,034 $187 $1,602 $155 $193 $1,746 $538 $753 $85 $111 $6,902 
______________
(1)    DAC amortization of $2 million related to Other not reflected in table above.
Changes in the Individual Retirement sales inducement assets were as follows:
Six Months Ended June 30,
20252024
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$117 $160 $127 $179 
Capitalization1 — 1 — 
Amortization(6)(9)(6)(10)
Balance, end of period$112 $151 $122 $169 
Changes in the Protection Solutions unearned revenue liability were as follows:
Six Months Ended June 30,
20252024
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$114 $840 $250 $107 $754 $210 
Capitalization7 74 23 8 65 28 
Amortization(4)(27)(8)(4)(24)(7)
Balance, end of period$117 $887 $265 $111 $795 $231 
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:
June 30, 2025December 31, 2024
(in millions)
Reconciliation
Term$1,287 $1,285 
Payout
4,936 5,050 
Group Pension - Benefit Reserve & DPL447 460 
Health1,336 1,362 
UL1,271 1,246 
Subtotal9,277 9,403 
  Whole Life Closed Block and Open Block products5,083 5,204 
Other (1)915 901 
Future policyholder benefits total15,275 15,508 
  Other policyholder funds and dividends payable2,282 2,105 
Total$17,557 $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:
Six Months Ended June 30, 2025Six Months Ended June 30, 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)— — (3)
Effect of actual variances from expected experience(54)— — (2)(51)— — 2 
Adjusted beginning of period balance1,905 — — (28)1,989 — — (23)
Issuances20 — — — 26 — — — 
Interest accrual47 — — (1)49 — — — 
Net premiums collected(90)— — 3 (95)— — 1 
Ending Balance at original discount rate1,882 — — (26)1,969 — — (22)
Effect of changes in discount rate assumptions— — — 1 (21)— — 1 
Balance, end of period$1,882 $— $— $(25)$1,948 $— $— $(21)
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(73)(3)— (7)(66)(2)1 7 
Adjusted beginning of period balance3,142 4,919 514 1,548 3,244 4,678 537 1,679 
Issuances22 398 — — 28 522 — — 
Interest accrual79 99 9 25 82 89 9 27 
Benefits payments(120)(251)(31)(75)(116)(228)(31)(79)
Ending Balance at original discount rate3,123 5,165 492 1,498 3,238 5,061 515 1,627 
Effect of changes in discount rate assumptions45 (229)(45)(187)6 (359)(58)(234)
Balance, end of period$3,168 $4,936 $447 $1,311 $3,244 $4,702 $457 $1,393 
Impact of flooring LFPB at zero1 — — — 1 — — — 
Net liability for future policy benefits1,287 4,936 447 1,336 1,297 4,702 457 1,414 
Less: Reinsurance recoverable2 (1,027)— (1,044)14 (1,144)— (1,116)
Net liability for future policy benefits, after reinsurance recoverable$1,289 $3,909 $447 $292 $1,311 $3,558 $457 $298 
Weighted-average duration of liability for future policyholder benefits (years)6.87.66.98.36.97.97.08.6
______________
(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:
June 30, 2025December 31, 2024
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,444 $5,613 
Expected future gross premiums (undiscounted)
6,424 6,597 
Expected future benefit payments and expenses (discounted; AOCI basis)3,168 3,216 
Expected future gross premiums (discounted; AOCI basis)3,473 3,507 
Payout
Expected future benefit payments and expenses (undiscounted)7,338 7,686 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)4,814 4,938 
Expected future gross premiums (discounted; AOCI basis)— — 
Group Pension
Expected future benefit payments and expenses (undiscounted)603 630 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)425 436 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,053 2,139 
Expected future gross premiums (undiscounted)
65 70 
Expected future benefit payments and expenses (discounted; AOCI basis)1,299 1,323 
Expected future gross premiums (discounted; AOCI basis)$52 $55 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Six Months Ended June 30,
2025202420252024
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$161 $171 $32 $33 
Payout
116 127 105 99 
Group Pension— — 9 9 
Health5 6 26 28 
Total$282 $304 $172 $169 
The following table provides the weighted average interest rates for the liability for future policy benefits:
June 30, 2025December 31, 2024
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate5.0 %5.2 %
Payout
Interest accretion rate4.5 %4.4 %
Current discount rate5.1 %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:
Six Months Ended June 30,
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 experience4 (1)
Adjusted beginning of period balance1,306 1,244 
Interest accrual29 27 
Net assessments collected34 35 
Benefit payments(45)(35)
Ending balance before shadow reserve adjustments1,324 1,271 
Effect of reserve adjustment recorded in AOCI(53)(51)
Balance, end of period$1,271 $1,220 
Net liability for additional liability $1,271 $1,220 
Less: Reinsurance recoverable— — 
Net liability for additional liability, after reinsurance recoverable$1,271 $1,220 
Weighted-average duration of additional liability - death benefit (years)19.119.5
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Six Months Ended June 30,
2025202420252024
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$316 $338 $29 $27 
Total$316 $338 $29 $27 
Six Months Ended June 30,
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.