DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2014

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,
	2014			2013			2012
Balance as of beginning-of-year	$	7,695		$	5,943		$	5,721
Deferrals		1,537			1,564			1,294
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(988	)		(816	)		(785	)
Unlocking		17			42			(71	)
Adjustment related to realized (gains) losses		(31	)		(8	)		(70	)
Adjustment related to unrealized (gains) losses		(672	)		970			(146	)
Balance as of end-of-year	$	7,558		$	7,695		$	5,943

Changes in VOBA (in millions) were as follows:

	For the Years Ended December 31,
	2014			2013			2012
Balance as of beginning-of-year	$	1,191		$	724		$	1,055
Business acquired (sold) through reinsurance		2			4			2
Deferrals		9			13			12
Amortization:
Amortization, excluding unlocking		(186	)		(179	)		(225	)
Unlocking		(21	)		(52	)		(23	)
Accretion of interest (1)		64			68			73
Adjustment related to realized (gains) losses		(1	)		(1	)		9
Adjustment related to unrealized (gains) losses		(409	)		614			(179	)
Balance as of end-of-year	$	649		$	1,191		$	724

⁽¹⁾ The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2014, was as follows:

2015	$	49
2016		46
2017		43
2018		41
2019		41

Changes in DSI (in millions) were as follows:

	For the Years Ended December 31,
	2014			2013			2012
Balance as of beginning-of-year	$	267		$	253		$	271
Deferrals		13			10			39
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(38	)		(43	)		(46	)
Unlocking		2			8			14
Adjustment related to realized (gains) losses		(4	)		(1	)		(8	)
Adjustment related to unrealized (gains) losses		-			40			(17	)
Balance as of end-of-year	$	240		$	267		$	253

Changes in DFEL (in millions) were as follows:

	For the Years Ended December 31,
	2014			2013			2012
Balance as of beginning-of-year	$	1,938		$	1,373		$	1,369
Deferrals		402			320			349
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(335	)		(216	)		(216	)
Unlocking		(50	)		(14	)		(69	)
Adjustment related to realized (gains) losses		(6	)		(2	)		(18	)
Adjustment related to unrealized (gains) losses		(548	)		477			(42	)
Balance as of end-of-year	$	1,401		$	1,938		$	1,373