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Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired
6 Months Ended
Jun. 30, 2024
Deferred Charges, Insurers [Abstract]  
Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired DEFERRED POLICY ACQUISITION COSTS, DEFERRED SALES INDUCEMENTS AND VALUE OF BUSINESS ACQUIRED
Deferred Policy Acquisition Costs (“DAC”)

The following tables show a rollforward for the lines of business that contain material DAC balances, along with a reconciliation to the Company’s total DAC balance:
Six Months Ended June 30, 2024
Retirement StrategiesIndividual LifeInternational BusinessesTotal
Individual VariableTerm LifeVariable/
Universal Life
Life PlannerGibraltar Life
and Other
(in millions)
Balance, BOP$3,676 $2,237 $5,364 $4,909 $4,442 $20,628 
Capitalization193 90 338 287 274 1,182 
Amortization expense(190)(104)(121)(170)(164)(749)
Other adjustments(1)
(2)(280)(53)(332)
Foreign currency adjustment(303)(159)(462)
Balance, EOP$3,679 $2,221 $5,301 $4,670 $4,396 20,267 
Other businesses297 
Total DAC balance$20,564 
__________
(1)Includes the impact of the reinsurance transaction with Somerset Reinsurance Ltd. in Individual Life (Universal Life). See Note 12 for additional information.


Six Months Ended June 30, 2023
Retirement StrategiesIndividual LifeInternational BusinessesTotal
Individual VariableTerm LifeVariable/
Universal Life
Life PlannerGibraltar Life
and Other
(in millions)
Balance, BOP$4,171 $2,288 $5,000 $4,710 $4,231 $20,400 
Capitalization124 72 291 300 294 1,081 
Amortization expense(186)(107)(121)(163)(156)(733)
Other adjustments(1)
(393)(384)
Foreign currency adjustment(124)(117)(241)
Balance, EOP$3,716 $2,253 $5,170 $4,732 $4,252 20,123 
Other businesses197 
Total DAC balance$20,320 
__________
(1)Includes the impact of the reinsurance transaction with AuguStar in Individual Retirement Strategies. See Note 12 for additional information.

Deferred Sales Inducements (“DSI”)

The following table shows a rollforward of DSI balances for variable annuity products within Individual Retirement Strategies, which is the only line of business that contains a material DSI balance, along with a reconciliation to the Company’s total DSI balance:

Six Months Ended June 30,
20242023
(in millions)
Balance, BOP
$410 $446 
Capitalization
Amortization expense
(17)(20)
Balance, EOP
394 428 
Other businesses
31 34 
Total DSI balance
$425 $462 
Value of Business Acquired (“VOBA”)

The following table shows a rollforward of VOBA balances for Gibraltar Life and Other, which is the only line of business that contains a material VOBA balance, along with a reconciliation to the Company’s total VOBA balance:

Six Months Ended June 30,
20242023
(in millions)
Balance, BOP
$511 $597 
Amortization expense
(21)(26)
Foreign currency adjustment
(59)(48)
Balance, EOP
431 523 
Other businesses(1)
15 19 
Total VOBA balance
$446 $542 
__________
(1)Represents Aoba Life business.

The following table provides estimated future amortization for the periods indicated:

2024 (July-December)2025202620272028ThereafterTotal
(in millions)
Estimated future VOBA amortization$21 $39 $35 $32 $29 $290 $446