Deferred Acquisition Costs and Deferred Sales Inducement Costs

9 Months Ended

Sep. 30, 2023

The following tables summarize the balances of and changes in DAC, including the January 1, 2021 adoption of ASU 2018-12:


	Variable Annuities		Structured Variable Annuities		Fixed Annuities		Fixed Indexed Annuities		Universal Life Insurance		Variable Universal Life Insurance
	(in millions)
Pre-adoption balance at December 31, 2020	$	1,690	$	22	$	43	$	7	$	100	$	452
Effect of shadow reserve adjustments	42		4		18		1		31		53
Post-adoption balance at January 1, 2021	1,732		26		61		8		131		505
Capitalization of acquisition costs	111		71		—		—		3		54
Amortization	(147)		(6)		(8)		(1)		(9)		(47)
Balance at December 31, 2021	$	1,696	$	91	$	53	$	7	$	125	$	512

	Indexed Universal Life Insurance		Other Life Insurance		Life Contingent Payout Annuities		Term and Whole Life Insurance		Disability Insurance		Total, All Products
	(in millions)
Pre-adoption balance at December 31, 2020	$	108	$	(3)	$	—	$	19	$	89	$	2,527
Effect of shadow reserve adjustments	149		6		—		—		—		304
Post-adoption balance at January 1, 2021	257		3		—		19		89		2,831
Capitalization of acquisition costs	9		—		1		2		4		255
Amortization	(18)		—		—		(2)		(9)		(247)
Balance at December 31, 2021	$	248	$	3	$	1	$	19	$	84	$	2,839
Other broker dealer acquisition costs											5
Balance at December 31, 2021 including broker dealer acquisition costs											$	2,844


	Variable Annuities		Structured Variable Annuities		Fixed Annuities		Fixed Indexed Annuities		Universal Life Insurance		Variable Universal Life Insurance
	(in millions)
Balance at January 1, 2022	$	1,696	$	91	$	53	$	7	$	125	$	512
Capitalization of acquisition costs	38		73		—		—		1		55
Amortization	(136)		(15)		(8)		(1)		(8)		(46)
Balance at December 31, 2022	$	1,598	$	149	$	45	$	6	$	118	$	521

	Indexed Universal Life Insurance		Other Life Insurance		Life Contingent Payout Annuities		Term and Whole Life Insurance		Disability Insurance		Total, All Products
	(in millions)
Balance at January 1, 2022	$	248	$	3	$	1	$	19	$	84	$	2,839
Capitalization of acquisition costs	5		—		1		1		4		178
Amortization	(17)		—		—		(2)		(9)		(242)
Balance at December 31, 2022	$	236	$	3	$	2	$	18	$	79	$	2,775
Other broker dealer acquisition costs											2
Balance at December 31, 2022 including broker dealer acquisition costs											$	2,777


	Variable Annuities		Structured Variable Annuities		Fixed Annuities		Fixed Indexed Annuities		Universal Life Insurance		Variable Universal Life Insurance
	(in millions)
Balance at January 1, 2023	$	1,598	$	149	$	45	$	6	$	118	$	521
Capitalization of acquisition costs	17		61		—		—		—		41
Amortization	(96)		(18)		(8)		(1)		(6)		(33)
Balance at September 30, 2023	$	1,519	$	192	$	37	$	5	$	112	$	529

	Indexed Universal Life Insurance		Other Life Insurance		Life Contingent Payout Annuities		Term and Whole Life Insurance		Disability Insurance		Total, All Products
	(in millions)
Balance at January 1, 2023	$	236	$	3	$	2	$	18	$	79	$	2,775
Capitalization of acquisition costs	3		—		3		1		3		129
Amortization	(12)		—		—		(1)		(6)		(181)
Balance at September 30, 2023	$	227	$	3	$	5	$	18	$	76	$	2,723
Other broker dealer acquisition costs											2
Balance at September 30, 2023 including broker dealer acquisition costs											$	2,725

The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12:


	Variable Annuities		Fixed Annuities		Total, All Products
	(in millions)
Pre-adoption balance at December 31, 2020	$	175	$	14	$	189
Effect of shadow reserve adjustments	8		8		16
Post-adoption balance at January 1, 2021	183		22		205
Capitalization of sales inducement costs	1		—		1
Amortization	(18)		(3)		(21)
Balance at December 31, 2021	$	166	$	19	$	185


	Variable Annuities		Fixed Annuities		Total, All Products
	(in millions)
Balance at January 1, 2022	$	166	$	19	$	185
Capitalization of sales inducement costs	1		—		1
Amortization	(16)		(3)		(19)
Balance at December 31, 2022	$	151	$	16	$	167