DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2020

8. DAC, VOBA, DSI and DFEL

Changes in DAC (in millions) were as follows:


	For the Years Ended December 31,
	2020			2019			2018
Balance as of beginning-of-year	$	7,352		$	9,448		$	7,887
Cumulative effect from adoption of new accounting
standard		5			-			-
Business acquired (sold) through reinsurance		(10	)		-			(246	)
Deferrals		1,446			1,902			1,600
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(796	)		(950	)		(951	)
Unlocking		(231	)		(489	)		(115	)
Adjustment related to realized (gains) losses		(19	)		54			(47	)
Adjustment related to unrealized (gains) losses		(2,182	)		(2,613	)		1,320
Balance as of end-of-year	$	5,565		$	7,352		$	9,448

Changes in VOBA (in millions) were as follows:


	For the Years Ended December 31,
	2020			2019			2018
Balance as of beginning-of-year	$	342		$	816		$	516
Business acquired (sold) through reinsurance		-			-			(11	)
Business acquired		-			-			30
Deferrals		3			6			7
Amortization:
Amortization, excluding unlocking		(105	)		(114	)		(127	)
Unlocking		(205	)		140			(60	)
Accretion of interest ⁽¹⁾		44			45			48
Adjustment related to realized (gains) losses		-			(1	)		(2	)
Adjustment related to unrealized (gains) losses		168			(550	)		415
Balance as of end-of-year	$	247		$	342		$	816

⁽¹⁾The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2020, was as follows:

Changes in DSI (in millions) were as follows:


	For the Years Ended December 31,
	2020			2019			2018
Balance as of beginning-of-year	$	234		$	248		$	238
Business acquired (sold) through reinsurance		-			-			(21	)
Deferrals		7			26			47
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(20	)		(29	)		(28	)
Unlocking		(1	)		(3	)		-
Adjustment related to realized (gains) losses		(1	)		2			(1	)
Adjustment related to unrealized (gains) losses		(6	)		(10	)		13
Balance as of end-of-year	$	213		$	234		$	248

Changes in DFEL (in millions) were as follows:


	For the Years Ended December 31,
	2020			2019			2018
Balance as of beginning-of-year	$	650		$	2,769		$	1,445
Cumulative effect from adoption of new accounting
standard		4			-			-
Deferrals		1,003			1,095			875
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(538	)		(544	)		(482	)
Unlocking		(275	)		(426	)		(53	)
Adjustment related to realized (gains) losses		25			-			(20	)
Adjustment related to unrealized (gains) losses		(468	)		(2,244	)		1,004
Balance as of end-of-year	$	401		$	650		$	2,769