Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Deferred Acquisition Costs

The following table summarizes the change in deferred acquisition costs, deferred sales inducements and value of business acquired:

(In millions)	VOBA
Balance as of January 1, 2022	$	4,527
Change in discount rate assumptions for future policy benefits	(22)
Fair value adjustment of market risk benefits	(1,133)
Adjusted balance as of January 1, 2022	$	3,372

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 Sales Inducements

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

Present Value of Future Insurance Profits

The expected amortization of VOBA for the next five years is as follows:

(In millions)	Expected amortization
20231	$	169
2024	316
2025	289
2026	260
2027	230
2028	200
1 Expected amortization for the remainder of 2023.