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DAC AND POLICYHOLDER BONUS INTEREST CREDITS

12 Months Ended

Dec. 31, 2021

Contract holder Bonus Interest Credits [Abstract]

DAC AND POLICYHOLDER BONUS INTEREST CREDITS

Changes in the DAC asset for the years ended December 31, 2021, 2020 and 2019 were as follows:


	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year (1)	$	3,816	$	4,225	$	4,959
Capitalization of commissions, sales and issue expenses	724		564		646
Amortization:
Impact of assumptions updates and model changes	19		(866)		77
All other	(475)		(467)		(597)
Total amortization	(456)		(1,333)		(520)
Change in unrealized investment gains and losses	183		360		(863)

Balance, end of year	$	4,267	$	3,816	$	4,222

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(1) December 31, 2020 DAC beginning balance is $3 million more than December 31, 2019 ending balance due to impact of CECL.

The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus Interest credits are reported in interest credited to policyholders’ account balances. For the years ended December 31, 2021, 2020 and 2019 changes were as follows:


	Year Ended December 31,
	2021		2020		2019
	(in millions)
Balance, beginning of year	$	405	$	431	$	448

Amortization charged to income	(44)		(26)		(17)
Balance, end of year	$	361	$	405	$	431