Other Revenues and Other Expenses

6 Months Ended

Jun. 30, 2022

Other Income and Expenses [Abstract]

Other Revenues and Other Expenses

. 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 $74 million and $156 million for the three months and six months ended June 30, 2022, respectively, and $91 million and $179 million for the three months and six months ended June 30, 2021, respectively, of which substantially all were reported in the Annuities segment.

Other Expenses

Information on other expenses was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Compensation	$	80	$	96	$	165	$	188
Contracted services and other labor costs	68		70		124		130
Transition services agreements	1		29		29		61
Establishment costs	11		29		26		46
Premium and other taxes, licenses and fees	15		12		28		27
Separate account fees	102		127		216		252
Volume related costs, excluding compensation, net of DAC capitalization	99		180		244		343
Interest expense on debt	38		40		76		81
Other	177		25		193		42
Total other expenses	$	591	$	608	$	1,101	$	1,170