Deferred Acquisition Costs and Deferred Sales Inducement Costs

12 Months Ended

Dec. 31, 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 Income 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 Income 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	23		83		—		—		—		57
Amortization	(125)		(24)		(10)		(1)		(8)		(44)
Balance at December 31, 2023	$	1,496	$	208	$	35	$	5	$	110	$	534

	Indexed Universal Life Insurance		Other Life Insurance		Life Contingent Payout Annuities		Term and Whole Life Insurance		Disability Income Insurance		Total, All Products
	(in millions)
Balance at January 1, 2023	$	236	$	3	$	2	$	18	$	79	$	2,775
Capitalization of acquisition costs	4		—		4		1		4		176
Amortization	(17)		(1)		—		(2)		(8)		(240)
Balance at December 31, 2023	$	223	$	2	$	6	$	17	$	75	$	2,711
Other broker dealer acquisition costs											2
Balance at December 31, 2023 including broker dealer acquisition costs											$	2,713

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