v3.25.2
Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired
 6 Months Ended
Jun. 30, 2025
Deferred Charges, Insurers [Abstract]  
Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired DEFERRED POLICY ACQUISITION COSTS, DEFERRED SALES INDUCEMENTS AND VALUE OF BUSINESS ACQUIRED
Deferred Policy Acquisition Costs (“DAC”)

The following tables show a rollforward for the lines of business that contain material DAC balances, along with a reconciliation to the Company’s total DAC balance:
Six Months Ended June 30, 2025
Retirement StrategiesIndividual LifeInternational BusinessesTotal
Individual VariableTerm LifeVariable/
Universal Life
(in millions)
Balance, BOP$3,713 $2,215 $4,878 $9,304 $20,110 
Capitalization327 95 326 603 1,351 
Amortization expense(236)(104)(117)(344)(801)
Other adjustments(1)
17 0 5 (214)(192)
Foreign currency adjustment0 0 0 330 330 
Balance, EOP$3,821 $2,206 $5,092 $9,679 20,798 
Other businesses424 
Total DAC balance$21,222 
__________
(1)Includes the impact of the reinsurance transaction with Prismic Re International in International Businesses. See Note 12 for additional information.


Six Months Ended June 30, 2024
Retirement StrategiesIndividual Life
International Businesses(1)
Total
Individual VariableTerm LifeVariable/
Universal Life
(in millions)
Balance, BOP$3,676 $2,237 $5,364 $9,351 $20,628 
Capitalization193 90 338 561 1,182 
Amortization expense(190)(104)(121)(334)(749)
Other adjustments(2)
0 (2)(280)(50)(332)
Foreign currency adjustment0 0 0 (462)(462)
Balance, EOP$3,679 $2,221 $5,301 $9,066 20,267 
Other businesses297 
Total DAC balance$20,564 
__________
(1)Prior period amounts have been updated to conform to current presentation.
(2)Includes the impact of the reinsurance transaction with Somerset Re in Individual Life (Universal Life). See Note 12 for additional information.

Deferred Sales Inducements (“DSI”)

The following table shows a rollforward of DSI balances for variable annuity products within Individual Retirement Strategies, which is the only line of business that contains a material DSI balance, along with a reconciliation to the Company’s total DSI balance:

Six Months Ended June 30,
20252024
(in millions)
Balance, BOP
$376 $410 
Capitalization
1 1 
Amortization expense
(16)(17)
Balance, EOP
361 394 
Other businesses
28 31 
Total DSI balance
$389 $425 
Value of Business Acquired (“VOBA”)

The following table shows a rollforward of VOBA balances for the acquisition of the Star and Edison Businesses for International Businesses, along with a reconciliation to the Company’s total VOBA balance:

Six Months Ended June 30,
20252024
(in millions)
Balance, BOP
$421 $511 
Amortization expense
(20)(21)
Foreign currency adjustment
35 (59)
Balance, EOP
436 431 
Other businesses(1)
14 15 
Total VOBA balance
$450 $446 
__________
(1)Represents Aoba Life business.

The following table provides estimated future amortization for the periods indicated:

2025 (July - December)
2026202720282029ThereafterTotal
(in millions)
Estimated future VOBA amortization$22 $40 $36 $33 $29 $290 $450