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Intangibles
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles Intangibles
The following table reconciles to Other intangible assets, net, on the Consolidated Balance Sheets as of December 31, 2023 and 2022 (in millions):
December 31, 2023December 31, 2022
VOBA$1,446 $1,615 
DAC2,215 1,411 
DSI346 200 
Value of distribution asset86 100 
Computer software65 61 
Definite lived trademarks, tradenames, and other41 34 
Indefinite lived tradenames and other8 8 
Total Other intangible assets, net$4,207 $3,429 
The following tables roll forward VOBA by product for the years ended December 31, 2023 and 2022 (in millions):
FIAFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
Balance at January 1, 2023
$1,166 $32 $201 $143 $73 $1,615 
Amortization(141)(5)(10)(9)(4)(169)
Balance at December 31, 2023
$1,025 $27 $191 $134 $69 $1,446 
FIAFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
Balance at January 1, 2022
$1,314 $39 $212 $153 $25 $1,743 
Amortization(148)(7)(11)(10)(4)(180)
Shadow Premium Deficiency Testing (“PDT”)— — — — 52 52 
Balance at December 31, 2022
$1,166 $32 $201 $143 $73 $1,615 
VOBA amortization expense of $169 million, $180 million, and $195 million, was recorded in Depreciation and amortization on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022, and 2021 respectively.
The following table presents a reconciliation of VOBA to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and 2022 (in millions):
December 31, 2023December 31, 2022
FIA$1,025 $1,166 
Fixed Rate Annuities27 32 
Immediate Annuities191 201 
Universal Life134 143 
Traditional Life69 73 
Total$1,446 $1,615 
The following tables roll forward DAC by product for the years ended December 31, 2023 and 2022 (in millions):
FIAFixed Rate AnnuitiesUniversal LifeTotal (a)
Balance at January 1, 2023
$971 $83 $348 $1,402 
Capitalization510 177 229 916 
Amortization(103)(51)(32)(186)
Reinsurance related adjustments— 79 — 79 
Balance at December 31, 2023
$1,378 $288 $545 $2,211 
FIAFixed Rate AnnuitiesUniversal LifeTotal (a)
Balance at January 1, 2022
$564 $38 $173 $775 
Capitalization474 56 196 726 
Amortization(67)(11)(21)(99)
Balance at December 31, 2022
$971 $83 $348 $1,402 
(a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”).
DAC amortization expense of $186 million, $99 million, and $46 million, was recorded in Depreciation and amortization on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022, and 2021, respectively, excluding insignificant amounts related to FABN.
The following table presents a reconciliation of DAC to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and 2022 (in millions):
December 31, 2023December 31, 2022
FIA$1,378 $971 
Fixed Rate Annuities288 83 
Universal Life545 348 
Funding Agreements4 9 
Total$2,215 $1,411 
The following tables roll forward DSI for the years ended December 31, 2023 and 2022 (in millions):
FIATotal
Balance at January 1, 2023
$200 $200 
Capitalization168 168 
Amortization(22)(22)
Balance at December 31, 2023
$346 $346 
FIATotal
Balance at January 1, 2022
$127 $127 
Capitalization87 87 
Amortization(14)(14)
Balance at December 31, 2022
$200 $200 
DSI amortization expense of $22 million, $14 million, and $7 million, was recorded in Depreciation and amortization on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022, and 2021, respectively.
The following table presents a reconciliation of DSI to the table above which is reconciled to the Consolidated Balance Sheets as of December 31, 2023 and 2022 (in millions):
December 31, 2023December 31, 2022
FIA$346 $200 
Total$346 $200 
The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the FPB for life contingent immediate annuities, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For FIA contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the Company’s best estimates for policyholder behavior, consistent with the development of assumptions for FIA and immediate annuity. Refer to Note A - Business and Summary of Significant Accounting Policies for further information about accounting policies for amortization of VOBA, DAC and DSI.
We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuity (FIA and fixed rate annuity) and IUL products, including surrender rates, partial withdrawal rates, mortality improvement, premium persistency, and option budgets. All updates to these assumptions brought us more in line with our company and overall industry experience since the prior assumption update. In 2022, F&G undertook a review of all significant assumptions and revised GMWB utilization for our deferred annuity contracts (FIA and fixed rate annuities) to reflect internal and industry experience in the first several contract years.
For the in-force liabilities as of December 31, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions):
Estimated Amortization Expense
Fiscal Year
2024$149 
2025139 
2026127 
2027116 
2028105 
Thereafter810 
Total$1,446 
Definite and Indefinite Lived Other Intangible Assets
Other intangible assets as of December 31, 2023 consist of the following (in millions):
CostAccumulated amortizationNet carrying amountWeighted average useful life (years)
Value of distribution asset (VODA)$140 $(54)$86 15
Computer software94 (29)65 
2 to 10
Definite lived trademarks, tradenames, and other54 (13)41 10
Indefinite lived tradenames and other 8 N/A8 Indefinite
Total$200 
Other intangible assets as of December 31, 2022 consist of the following (in millions):
CostAccumulated amortizationNet carrying amountWeighted average useful life (years)
Value of distribution asset (VODA)$140 $(40)$100 15
Computer software82 (21)61 
2 to 10
Definite lived trademarks, tradenames and other43 (9)34 10
Indefinite lived tradenames and other 8 N/A8 Indefinite
Total$203 
Amortization expense for amortizable intangible assets, which consist primarily of VODA, computer software, and definite lived trademarks, tradenames and other was $26 million, $25 million and $28 million for the years ended December 31, 2023, 2022 and 2021, respectively. We recorded $13 million, $14 million and $0 of impairment expense related to computer software during the years ended December 31, 2023, 2022 and 2021, respectively. Estimated amortization expense for the next five years for assets owned at December 31, 2023, is $31 million in 2024, $26 million in 2025, $23 million in 2026, $22 million in 2027, $19 million in 2028 and $71 million thereafter.