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Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired | 6 Months Ended
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Jun. 30, 2023
Insurance [Abstract] |
Deferred Acquisition Costs, Deferred Sales Inducements, and Value of Business Acquired | 8. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See Note 9 – Long-duration Contracts for more information on our products.
| Six months ended June 30, 2023
| DAC |  | DSI |  | VOBA |  | Total DAC, DSI and VOBA
(In millions) | Traditional deferred annuities |  | Indexed annuities |  | Funding agreements |  | Other investment-type |  | Indexed annuities |  |
Balance at December 31, 2022 | $ | 304 |  |  | $ | 755 |  |  | $ | 11 |  |  | $ | 9 |  |  | $ | 399 |  |  | $ | 2,988 |  |  | $ | 4,466 |
Additions | 298 |  |  | 405 |  |  | 1 |  |  | 2 |  |  | 285 |  |  | — |  |  | 991 |
Amortization | (42) |  |  | (41) |  |  | (2) |  |  | — |  |  | (23) |  |  | (183) |  |  | (291) |
Balance at June 30, 2023 | $ | 560 |  |  | $ | 1,119 |  |  | $ | 10 |  |  | $ | 11 |  |  | $ | 661 |  |  | $ | 2,805 |  |  | $ | 5,166 |
| Six months ended June 30, 2022
| DAC |  | DSI |  | VOBA |  | Total DAC, DSI and VOBA
(In millions) | Traditional deferred annuities |  | Indexed annuities |  | Funding agreements |  | Other investment-type |  | Indexed annuities |  |
Balance at January 1, 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,372 |  |  | $ | 3,372 |
Additions | 58 |  |  | 358 |  |  | 13 |  |  | 5 |  |  | 160 |  |  | — |  |  | 594 |
Amortization | (1) |  |  | (8) |  |  | (1) |  |  | — |  |  | (1) |  |  | (195) |  |  | (206) |
Balance at June 30, 2022 | $ | 57 |  |  | $ | 350 |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 159 |  |  | $ | 3,177 |  |  | $ | 3,760 |
Deferred costs related to universal life-type policies and investment contracts with significant revenue streams from sources other than investment of the policyholder funds, including traditional deferred annuities and indexed annuities, are amortized on a constant-level basis for a cohort of contracts using initial premium or deposit. Significant inputs and assumptions are required for determining the expected duration of the cohort and involves using accepted actuarial methods to determine decrement rates related to policyholder behavior for lapses, withdrawals (surrenders) and mortality. The assumptions used to determine the amortization of DAC and DSI are consistent with those used to estimate the related liability balance. Deferred costs related to investment contracts without significant revenue streams from sources other than investment of policyholder funds are amortized using the effective interest method, which primarily includes funding agreements. The effective interest method requires inputs to project future cash flows, which for funding agreements includes contractual terms of notional value, periodic interest payments based on either fixed or floating interest rates, and duration. For other investment-type contracts which include immediate annuities and assumed endowments without significant mortality risks, assumptions are required related to policyholder behavior for lapses and withdrawals (surrenders). The expected amortization of VOBA for the next five years is as follows:
(In millions) | Expected amortization
2023 1 | $ | 169 |
2024 | 316 |
2025 | 289 |
2026 | 260 |
2027 | 230 |
2028 | 200 |
1 Expected amortization for the remainder of 2023.

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- Definition The entire disclosure for deferred policy acquisition costs. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 944 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944-30/tableOfContent + Details
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- References No definition available. + Details
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