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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 9 Months Ended
Sep. 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:
September 30December 31
20252024
(in millions)
Retirement
GMxB Core
$1,592 $1,605 
EQUI-VEST Individual
153 154 
Investment Edge261 225 
SCS2,188 1,938 
EQUI-VEST Group
781 768 
Momentum79 83 
Corporate and Other
Term294 314 
Universal Life
169 170 
Variable Universal Life
1,128 1,083 
Indexed Universal Life
183 186 
GMxB Legacy
482 517 
Closed Block
100 107 
Other
20 20 
Total$7,430 $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 judgments 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:
Nine Months Ended September 30, 2025
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB LegacyCB (1)
(in millions)
Balance, beginning of period$1,605 $154 $225 $1,938 $768 $83 $314 $170 $1,083 $186 $517 $107 $7,150 
Capitalization 104 8 53 495 47 7 7 10 103 8 12 — 854 
Amortization (2)
(117)(9)(17)(245)(34)(11)(27)(9)(51)(9)(47)(7)(583)
Recovery of acquisition costs (3)
— — — — — — — (2)(7)(2)— — (11)
Balance, end of period$1,592 $153 $261 $2,188 $781 $79 $294 $169 $1,128 $183 $482 $100 $7,410 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $1 million related to Other not reflected in table above.
(3)Related to the RGA Reinsurance Transaction.

Nine Months Ended September 30, 2024
Retirement
Corporate and OtherTotal
GMxB CoreEI IE SCSEG MomentumTermULVUL IUL GMxB Legacy
CB (1)
(in millions)
Balance, beginning of period$1,602 $155 $172 $1,571 $742 $82 $337 $174 $987 $188 $555 $116 $6,681 
Capitalization104 9 51 473 49 8 10 6 114 8 19 — 851 
Amortization (2)
(112)(9)(12)(204)(33)(6)(27)(9)(46)(9)(47)(7)(521)
Balance, end of period$1,594 $155 $211 $1,840 $758 $84 $320 $171 $1,055 $187 $527 $109 $7,011 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $4 million related to Other not reflected in table above.
Changes in the Retirement and Corporate and Other sales inducement assets were as follows:
Nine Months Ended September 30,
20252024
Retirement
Corporate and OtherRetirementCorporate and Other
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$117 $160 $127 $179 
Capitalization2 — 2 — 
Amortization(9)(15)(9)(15)
Balance, end of period$110 $145 $120 $164 
Changes in the Corporate and Other unearned revenue liability were as follows:
Nine Months Ended September 30,
20252024
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$114 $840 $250 $107 $754 $210 
Capitalization10 111 34 12 99 42 
Amortization(6)(41)(12)(6)(36)(11)
Recovery of unearned revenue reserves (3)
(4)(47)(16)— — — 
Balance, end of period$114 $863 $256 $113 $817 $241 
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:
September 30, 2025December 31, 2024
(in millions)
Reconciliation
Term$1,263 $1,285 
Payout
5,119 5,050 
Group Pension - Benefit Reserve & DPL442 460 
Health1,336 1,362 
UL1,309 1,246 
Subtotal9,469 9,403 
  Whole Life Closed Block and Open Block products5,028 5,204 
Other (1)928 901 
Future policyholder benefits total15,425 15,508 
  Other policyholder funds and dividends payable2,186 2,105 
Total$17,611 $17,613 
_____________
(1)Primarily consists of future policy benefits related to Protective Life and Annuity, Assumed Life and Disability, Group Life Run off, Variable Interest Sensitive Life rider and EB.
The following table summarizes balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts:
Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
Retirement
Corporate & Other
Retirement
Corporate & Other
PayoutTermGroup PensionHealthPayoutTermGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$— $1,932 $— $(25)$— $2,133 $— $(21)
Beginning balance at original discount rate— 1,959 — (26)— 2,058 — (22)
Effect of changes in cash flow assumptions— (30)— — — 21 — (3)
Effect of actual variances from expected experience— (68)— (2)— (79)— (5)
Adjusted beginning of period balance— 1,861 — (28)— 2,000 — (30)
Issuances— 28 — — — 40 — — 
Interest accrual— 69 — (1)— 73 — (1)
Net premiums collected— (131)— 4 — (139)— 3 
Ending Balance at original discount rate— 1,827 — (25)— 1,974 — (28)
Effect of changes in discount rate assumptions— 28 — 1 — 79 — 1 
Balance, end of period$— $1,855 $— $(24)$— $2,053 $— $(27)
Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
Retirement
Corporate & Other
Retirement
Corporate & Other
PayoutTermGroup PensionHealthPayoutTermGroup PensionHealth
(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$5,050 $3,216 $460 $1,337 $4,464 $3,480 $490 $1,484 
Beginning balance of original discount rate5,390 3,215 514 1,555 4,680 3,330 536 1,672 
Effect of changes in cash flow assumptions (1)
(459)(46)— — — 39 — — 
Effect of actual variances from expected experience(3)(88)1 (4)(1)(101)2 (12)
Adjusted beginning of period balance4,928 3,081 515 1,551 4,679 3,268 538 1,660 
Issuances579 30 — — 765 43 21 — 
Interest accrual146 117 13 38 131 123 14 41 
Benefits payments(376)(196)(46)(111)(342)(182)(47)(122)
Ending Balance at original discount rate5,277 3,032 482 1,478 5,233 3,252 526 1,579 
Effect of changes in discount rate assumptions(158)85 (40)(166)(130)167 (39)(158)
Balance, end of period$5,119 $3,117 $442 $1,312 $5,103 $3,419 $487 $1,421 
Impact of flooring LFPB at zero— 1 — — — 1 — — 
Net liability for future policy benefits5,119 1,263 442 1,336 5,103 1,367 487 1,448 
Less: Reinsurance recoverable(1,113)(943)— (1,042)(1,299)3 — (1,136)
Net liability for future policy benefits, after reinsurance recoverable$4,006 $320 $442 $294 $3,804 $1,370 $487 $312 
Weighted-average duration of liability for future policyholder benefits (years)7.56.86.88.27.86.87.08.5
______________
(1)Includes the net income impact due to novation that occurred during the first quarter of 2025 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:
September 30, 2025December 31, 2024
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,294 $5,613 
Expected future gross premiums (undiscounted)
6,333 6,597 
Expected future benefit payments and expenses (discounted; AOCI basis)3,117 3,216 
Expected future gross premiums (discounted; AOCI basis)3,485 3,507 
Payout
Expected future benefit payments and expenses (undiscounted)7,503 7,686 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)4,999 4,938 
Expected future gross premiums (discounted; AOCI basis)— — 
September 30, 2025December 31, 2024
(in millions)
Group Pension
Expected future benefit payments and expenses (undiscounted)591 630 
Expected future gross premiums (undiscounted)
— — 
Expected future benefit payments and expenses (discounted; AOCI basis)422 436 
Expected future gross premiums (discounted; AOCI basis)— — 
Health
Expected future benefit payments and expenses (undiscounted)2,021 2,139 
Expected future gross premiums (undiscounted)
63 70 
Expected future benefit payments and expenses (discounted; AOCI basis)1,299 1,323 
Expected future gross premiums (discounted; AOCI basis)$50 $55 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Nine Months Ended September 30,
2025202420252024
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$238 $254 $48 $50 
Payout
164 201 158 153 
Group Pension— — 13 13 
Health8 9 39 41 
Total$410 $464 $258 $257 
The following table provides the weighted average interest rates for the liability for future policy benefits:
September 30, 2025December 31, 2024
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate4.9 %5.2 %
Payout
Interest accretion rate4.5 %4.4 %
Current discount rate4.9 %5.3 %
Group Pension
Interest accretion rate3.4 %3.4 %
Current discount rate4.8 %5.2 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate5.0 %5.4 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Nine Months Ended September 30,
20252024
Corporate and Other
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 changes5 — 
Effect of actual variances from expected experience62 (1)
Adjusted beginning of period balance1,369 1,244 
Interest accrual44 42 
Net assessments collected(9)53 
Benefit payments(78)(44)
Ending balance before shadow reserve adjustments1,326 1,295 
Effect of reserve adjustment recorded in AOCI(17)(39)
Balance, end of period$1,309 $1,256 
Net liability for additional liability $1,309 $1,256 
Less: Reinsurance recoverable(1,089)— 
Net liability for additional liability, after reinsurance recoverable$220 $1,256 
Weighted-average duration of additional liability - death benefit (years)18.619.7
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Nine Months Ended September 30,
2025202420252024
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$227 $499 $44 $41 
Total$227 $499 $44 $41 

Nine Months Ended September 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.