Other Revenues and Other Expenses

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other Revenues

The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues consisted primarily of 12b-1 fees of $67 million and $82 million for the three months ended March 31, 2023 and 2022, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:


	Three Months Ended March 31,
		2023		2022
		(In millions)
Compensation		$	98	$	85
Contracted services and other labor costs		69		56
Transition services agreements		11		28
Establishment costs		—		15
Premium and other taxes, licenses and fees		14		13
Separate account fees		92		114
Volume related costs, excluding compensation, net of DAC capitalization		137		146
Interest expense on debt		38		38
Other		19		14
Total other expenses		$	478	$	509

Capitalization of DAC

See Note 5 for additional information on the capitalization of DAC.