XML 24 R13.htm IDEA: XBRL DOCUMENT v3.23.1
DAC AND OTHER DEFERRED ASSETS/LIABILITIES
 3 Months Ended
Mar. 31, 2023
Contract holder Bonus Interest Credits [Abstract]  
DAC AND OTHER DEFERRED ASSETS/LIABILITIES DAC AND OTHER DEFERRED ASSETS/LIABILITIES
Changes in the DAC asset for the three months ended March 31, 2023 and 2022 were as follows:

VUL (1)IUL (2)GMxB CoreInvestment
Edge		SCSTotal
(in millions)
Balance, beginning of the period
$410 $296 $40 $1 $13 $760 
Capitalization 17 3 9 5 42 76 
Amortization
(6)(4)(1)— (1)(12)
Balance, March 31, 2023$421 $295 $48 $6 $54 $824 
______________
(1)    “VUL” defined as Variable Universal Life.
(2)    “IUL” defined as Indexed Universal Life.
VUL (1)IUL (2)GMxB CoreInvestment
Edge		SCSTotal
(in millions)
Balance, beginning of the period
$361 $297 $14 $— $— $672 
Capitalization 17 5 4 — — 26 
Amortization
(5)(5)— — — (10)
Balance, March 31, 2022$373 $297 $18 $— $— $688 
______________
(1)    “VUL” defined as Variable Universal Life.
(2)    “IUL” defined as Indexed Universal Life.
Changes in the Sales Inducement Assets for the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
20232022
GMxB Core
(in millions)
Balance, beginning of the period
$1 $— 
Capitalization— — 
Amortization— — 
Balance, end of the period
$1 $— 

Changes in the Unearned Revenue Liability for the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
20232022
VULIULVULIUL
(in millions)
Balance, beginning of the period
$159 $157 $118 $94 
Capitalization13 17 12 18 
Amortization(2)(3)(2)(2)
Balance, end of the period
$170 $171 $128 $110 

The following table presents a reconciliation of DAC to the balance sheet.
March 31, 2023December 31, 2022
(in millions)
VUL$421 $410 
IUL295 296 
GMxB Core
48 40 
Investment Edge6 1 
SCS54 13 
Total$824 $760 
Annually, or as circumstances warrant, we will review the associated decrements assumptions. (i.e. mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the Unearned Revenue Liability and Sales Inducement Asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.