DAC, VOBA, DSI and DFEL

12 Months Ended

Dec. 31, 2022

7. DAC, VOBA, DSI and DFEL

Changes in DAC (in millions) were as follows:


	For the Years Ended December 31,
	2022			2021			2020
Balance as of beginning-of-year	$	5,888		$	5,565		$	7,352
Cumulative effect from adoption of new accounting
standard		-			-			5
Business acquired (sold) through reinsurance		-			(362	)		(10	)
Deferrals		1,372			1,373			1,446
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(811	)		(1,001	)		(796	)
Unlocking		(210	)		(565	)		(231	)
Adjustment related to realized (gains) losses		(129	)		86			(19	)
Adjustment related to unrealized (gains) losses		6,648			792			(2,182	)
Balance as of end-of-year	$	12,758		$	5,888		$	5,565

Changes in VOBA (in millions) were as follows:


	For the Years Ended December 31,
	2022			2021			2020
Balance as of beginning-of-year	$	193		$	247		$	342
Business acquired (sold) through reinsurance		-			(288	)		-
Deferrals		2			-			3
Amortization:
Amortization, excluding unlocking		(75	)		(94	)		(105	)
Unlocking		60			(7	)		(205	)
Accretion of interest ⁽¹⁾		23			33			44
Adjustment related to realized (gains) losses		(2	)		(3	)		-
Adjustment related to unrealized (gains) losses		629			305			168
Balance as of end-of-year	$	830		$	193		$	247

⁽¹⁾The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9%.

Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2022, was as follows:

Changes in DSI (in millions) were as follows:


	For the Years Ended December 31,
	2022			2021			2020
Balance as of beginning-of-year	$	203		$	213		$	234
Deferrals		6			5			7
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(15	)		(26	)		(20	)
Unlocking		2			-			(1	)
Adjustment related to realized (gains) losses		(2	)		3			(1	)
Adjustment related to unrealized (gains) losses		21			8			(6	)
Balance as of end-of-year	$	215		$	203		$	213

Changes in DFEL (in millions) were as follows:


	For the Years Ended December 31,
	2022			2021			2020
Balance as of beginning-of-year	$	415		$	401		$	650
Cumulative effect from adoption of new accounting
standard		-			-			4
Business acquired (sold) through reinsurance		-			(290	)		-
Deferrals		1,083			1,015			1,003
Amortization, net of interest:
Amortization, excluding unlocking, net of interest		(565	)		(595	)		(538	)
Unlocking		(49	)		(387	)		(275	)
Adjustment related to realized (gains) losses		(35	)		(10	)		25
Adjustment related to unrealized (gains) losses		4,820			281			(468	)
Balance as of end-of-year	$	5,669		$	415		$	401