DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements [Abstract]

DAC, VOBA, DSI and DFEL

8. DAC, VOBA, DSI and DFEL

Changes in DAC (in millions) were as follows:

				For the Years Ended December 31,
				2012		2011		2010
Balance as of beginning-of-year				$	5,721	$	6,036	$	7,424
	Cumulative effect from adoption of new accounting standards				-		-		(1,578)
	Deferrals				1,294		1,375		1,357
	Amortization, net of interest:
		Unlocking			(71)		(130)		92
		Amortization, excluding unlocking, net of interest			(785)		(687)		(690)
	Adjustment related to realized (gains) losses				(70)		(18)		(42)
	Adjustment related to unrealized (gains) losses				(146)		(855)		(527)
			Balance as of end-of-year	$	5,943	$	5,721	$	6,036

Changes in VOBA (in millions) were as follows:

				For the Years Ended December 31,
				2012		2011		2010
Balance as of beginning-of-year				$	1,055	$	1,378	$	2,086
	Business acquired (sold) through reinsurance				2		12		-
	Deferrals				12		20		26
	Amortization:
		Unlocking			(23)		174		(47)
		Amortization, excluding unlocking			(225)		(279)		(351)
	Accretion of interest (1)				73		78		89
	Adjustment related to realized (gains) losses				9		(6)		(8)
	Adjustment related to unrealized (gains) losses				(179)		(322)		(417)
			Balance as of end-of-year	$	724	$	1,055	$	1,378

• The interest accrual rates utilized to calculate the accretion of interest ranged from 3.30% to 7.05%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2012, was as follows:

2013	$	94
2014		72
2015		64
2016		57
2017		52

Changes in DSI (in millions) were as follows:

				For the Years Ended December 31,
				2012		2011		2010
Balance as of beginning-of-year				$	271	$	286	$	323
	Deferrals				39		39		66
	Amortization, net of interest:
		Unlocking			14		(2)		(3)
		Amortization, excluding unlocking, net of interest			(46)		(38)		(51)
	Adjustment related to realized (gains) losses				(8)		(1)		(8)
	Adjustment related to unrealized (gains) losses				(17)		(13)		(41)
			Balance as of end-of-year	$	253	$	271	$	286

Changes in DFEL (in millions) were as follows:

				For the Years Ended December 31,
				2012		2011		2010
Balance as of beginning-of-year				$	1,369	$	1,502	$	1,338
	Deferrals				349		544		546
	Amortization, net of interest:
		Unlocking			(69)		31		(1)
		Amortization, excluding unlocking, net of interest			(216)		(166)		(196)
	Adjustment related to realized (gains) losses				(18)		(9)		(8)
	Adjustment related to unrealized (gains) losses				(42)		(533)		(177)
			Balance as of end-of-year	$	1,373	$	1,369	$	1,502