Other Revenues and Other Expenses

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

8. Other Revenues and Other Expenses

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 $91 million and $270 million for the three months and nine months ended September 30, 2021, respectively, and $83 million and $240 million for the three months and nine months ended September 30, 2020, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(In millions)
Compensation	$	96	$	85	$	284	$	247
Contracted services and other labor costs	67		56		197		202
Transition services agreements	32		37		93		90
Establishment costs	25		19		71		72
Premium and other taxes, licenses and fees	12		11		39		37
Separate account fees	129		118		381		343
Volume related costs, excluding compensation, net of DAC capitalization	160		155		503		445
Interest expense on debt	41		47		122		139
Other	17		52		59		99
Total other expenses	$	579	$	580	$	1,749	$	1,674