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DAC AND OTHER DEFERRED ASSETS/LIABILITIES
9 Months Ended
Sep. 30, 2024
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 30, 2024December 31, 2023
(in millions)
Protection Solutions
Term$320 $337 
Universal Life
171 174 
Variable Universal Life
1,055 987 
Indexed Universal Life
187 188 
Individual Retirement
GMxB Core
1,594 1,602 
EQUI-VEST Individual
155 155 
Investment Edge211 172 
SCS1,840 1,571 
Legacy Segment
GMxB Legacy527 555 
Group Retirement
EQUI-VEST Group
758 742 
Momentum84 82 
Corporate and Other
109 116 
Other
20 24 
Total$7,031 $6,705 

Annually, or as circumstances warrant, we review the associated decrements assumptions (i.e., mortality and lapse) based on our multi-year average of companies experience with actuarial judgements 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, 2024
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG MomentumCB (1)
(in millions)
Balance, beginning of period$337 $174 $987 $188 $1,602 $155 $172 $1,571 $555 $742 $82 $116 $6,681 
Capitalization 10 6 114 8 104 9 51 473 19 49 8  851 
Amortization (2)(27)(9)(46)(9)(112)(9)(12)(204)(47)(33)(6)(7)(521)
Balance, end of period$320 $171 $1,055 $187 $1,594 $155 $211 $1,840 $527 $758 $84 $109 $7,011 
______________
(1)“CB” defined as Closed Block.
(2)DAC amortization of $4 million related to Other not reflected in table above.

Nine Months Ended September 30, 2023
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVUL IUL GMxB CoreEI IE SCSGMxB LegacyEG Momentum
CB
(in millions)
Balance, beginning of period$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
Capitalization11 109 10 87 30 364 19 51 — 701 
Amortization (1)
(29)(9)(42)(8)(107)(9)(11)(154)(48)(31)(13)(8)(469)
Balance, end of period$344 $175 $956 $187 $1,605 $155 $167 $1,489 $564 $730 $83 $119 $6,574 
______________
(1)    DAC amortization of $3 million related to Other not reflected in table above.
Changes in the Individual Retirement sales inducement assets were as follows:
Nine Months Ended September 30,
20242023
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
(in millions)
Balance, beginning of period$127 $179 $137 $200 
Capitalization2  — 
Amortization(9)(15)(9)(16)
Balance, end of period$120 $164 $130 $184 
Changes in the Protection Solutions unearned revenue liability were as follows:
Nine Months Ended September 30,
20242023
ULVULIULULVULIUL
(in millions)
Balance, beginning of period$107 $754 $210 $95 $684 $157 
Capitalization12 99 42 14 86 49 
Amortization(6)(36)(11)(5)(34)(8)
Balance, end of period$113 $817 $241 $104 $736 $198 
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, 2024December 31, 2023
(in millions)
Reconciliation
Term$1,367 $1,348 
Payout
5,103 4,464 
Group Pension - Benefit Reserve & DPL487 490 
Health1,448 1,505 
UL1,256 1,193 
Subtotal9,661 9,000 
  Whole Life Closed Block and Open Block products5,259 5,444 
Other (1)932 970 
Future policyholder benefits total15,852 15,414 
  Other policyholder funds and dividends payable2,084 1,949 
Total$17,936 $17,363 
_____________
(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, 2024Nine Months Ended September 30, 2023
Protection SolutionsIndividual RetirementCorporate & OtherProtection SolutionsIndividual RetirementCorporate & Other
TermPayoutGroup PensionHealthTermPayoutGroup PensionHealth
(in millions)
Present Value of Expected Net Premiums
Balance, beginning of period$2,133 $ $ $(21)$2,100 $— $— $(5)
Beginning balance at original discount rate2,058   (22)2,078 — — (5)
Effect of changes in cash flow assumptions21   (3)32 — — (8)
Effect of actual variances from expected experience(79)  (5)(14)— — (6)
Adjusted beginning of period balance2,000   (30)2,096 — — (19)
Issuances40    49 — — — 
Interest accrual73   (1)75 — — (1)
Net premiums collected(139)  3 (147)— — 
Ending Balance at original discount rate1,974   (28)2,073 — — (18)
Effect of changes in discount rate assumptions79   1 (82)— — 
Balance, end of period$2,053 $ $ $(27)$1,991 $— $— $(17)
Present Value of Expected Future Policy Benefits
Balance, beginning of period$3,480 $4,464 $490 $1,484 $3,465 $3,517 $523 $1,553 
Beginning balance of original discount rate3,330 4,680 536 1,672 3,391 3,869 583 1,795 
Effect of changes in cash flow assumptions39    40 — — (12)
Effect of actual variances from expected experience(101)(1)2 (12)(16)— (5)
Adjusted beginning of period balance3,268 4,679 538 1,660 3,415 3,870 583 1,778 
Issuances43 765 21  53 771 — — 
Interest accrual123 131 14 41 126 94 15 43 
Benefits payments(182)(342)(47)(122)(254)(268)(50)(111)
Ending Balance at original discount rate3,252 5,233 526 1,579 3,340 4,467 548 1,710 
Effect of changes in discount rate assumptions167 (130)(39)(158)(84)(486)(73)(290)
Balance, end of period$3,419 $5,103 $487 $1,421 $3,256 $3,981 $475 $1,420 
Impact of flooring LFPB at zero1    — — — 
Net liability for future policy benefits$1,367 5,103 487 1,448 1,266 3,981 475 1,437 
Less: Reinsurance recoverable3 (1,299) (1,136)25 (777)— (1,145)
Net liability for future policy benefits, after reinsurance recoverable$1,370 $3,804 $487 $312 $1,291 $3,204 $475 $292 
Weighted-average duration of liability for future policyholder benefits (years)6.87.87.08.57.18.17.18.7
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, 2024December 31, 2023
(in millions)
Term
Expected future benefit payments and expenses (undiscounted)$5,691 $5,878 
Expected future gross premiums (undiscounted)
6,679 6,979 
Expected future benefit payments and expenses (discounted; AOCI basis)3,420 3,480 
Expected future gross premiums (discounted; AOCI basis)3,747 3,879 
Payout
Expected future benefit payments and expenses (undiscounted)7,464 6,630 
Expected future gross premiums (undiscounted)
 — 
Expected future benefit payments and expenses (discounted; AOCI basis)4,995 4,350 
Expected future gross premiums (discounted; AOCI basis) — 
Group Pension
Expected future benefit payments and expenses (undiscounted)627 668 
Expected future gross premiums (undiscounted)
 — 
Expected future benefit payments and expenses (discounted; AOCI basis)470 471 
Expected future gross premiums (discounted; AOCI basis) — 
Health
Expected future benefit payments and expenses (undiscounted)2,177 2,318 
Expected future gross premiums (undiscounted)
75 85 
Expected future benefit payments and expenses (discounted; AOCI basis)1,405 1,468 
Expected future gross premiums (discounted; AOCI basis)$60 $68 
The table below summarizes the revenue and interest related to nonparticipating traditional and limited payment contracts:
Nine Months Ended September 30,
2024202320242023
Gross PremiumInterest Accretion
(in millions)
Revenue and Interest Accretion
Term$254 $206 $50 $50 
Payout
201 135 153 103 
Group Pension — 13 15 
Health9 41 44 
Total$464 $347 $257 $212 
The following table provides the weighted average interest rates for the liability for future policy benefits:
September 30, 2024December 31, 2023
Weighted Average Interest Rate
Term
Interest accretion rate5.6 %5.6 %
Current discount rate4.6 %4.8 %
Payout
Interest accretion rate4.4 %4.2 %
Current discount rate4.7 %4.9 %
Group Pension
Interest accretion rate3.3 %3.3 %
Current discount rate4.6 %4.8 %
Health
Interest accretion rate3.4 %3.4 %
Current discount rate4.8 %4.9 %
The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:
Nine Months Ended September 30,
20242023
Protection Solutions
UL
(Dollars in millions)
Balance, beginning of period$1,193 $1,109 
Beginning balance before AOCI adjustments1,230 1,135 
Effect of changes in interest rate & cash flow assumptions and model changes17 (12)
Effect of actual variances from expected experience(2)14 
Adjusted beginning of period balance1,245 1,137 
Interest accrual41 38 
Net assessments collected53 50 
Benefit payments(44)(39)
Ending balance before shadow reserve adjustments1,295 1,186 
Effect of reserve adjustment recorded in AOCI(39)(55)
Balance, end of period$1,256 $1,131 
Net liability for additional liability $1,256 $1,131 
Less: Reinsurance recoverable — 
Net liability for additional liability, after reinsurance recoverable$1,256 $1,131 
Weighted-average duration of additional liability - death benefit (years)19.719.2
The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:
Nine Months Ended September 30,
2024202320242023
AssessmentsInterest Accretion
(in millions)
Revenue and Interest Accretion
UL$499 $487 $41 $38 
Total$499 $487 $41 $38 
Nine Months Ended September 30,
20242023
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.