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Deferred Acquisition Costs and Deferred Sales Inducement Costs
 12 Months Ended
Dec. 31, 2022
Deferred Charges, Insurers [Abstract]  
Deferred Acquisition Costs and Deferred Sales Inducement Costs Deferred Acquisition Costs and Deferred Sales Inducement Costs Management updates market-related inputs on a quarterly basis and implements model changes related to the living benefit valuation. In addition, management conducts its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC for the year ended December 31, 2022 primarily reflected a $49 million increase from lower
surrenders on variable annuities with living benefits and UL and VUL insurance products partially offset by a $27 million decrease from updating mortality assumptions for variable annuities and a $13 million decrease from updating the discount rate for variable annuities. The impact of unlocking to DAC for the year ended December 31, 2021 primarily reflected a favorable impact from lower surrenders on variable annuities with living benefits and UL and VUL insurance products. The impact of unlocking to DAC for the year ended December 31, 2020 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit.
The balances of and changes in DAC were as follows:
202220212020
(in millions)
Balance at January 1$2,782 $2,532 $2,698 
Capitalization of acquisition costs197 280 228 
Amortization(216)(184)(177)
Amortization, impact of valuation assumptions review8 60 (100)
Impact of change in net unrealized (gains) losses on securities389 94 (117)
Balance at December 31$3,160 $2,782 $2,532 
The balances of and changes in DSIC, which is included in Other assets, were as follows:
202220212020
(in millions)
Balance at January 1$189 $189 $218 
Capitalization of sales inducement costs1 1 1 
Amortization(24)(16)(13)
Amortization, impact of valuation assumptions review2 2 (16)
Impact of change in net unrealized (gains) losses on securities15 13 (1)
Balance at December 31$183 $189 $189