| DAC, VOBA, DSI and DFEL |
DAC, VOBA, DSI and DFEL The following table reconciles DAC, VOBA and DSI (in millions) to the Consolidated Balance Sheets:
| | | | | | | | | | | | | As of December 31, | | 2025 | | 2024 | | DAC, VOBA and DSI | | | | | Variable Annuities | $ | 4,240 | | | $ | 4,104 | | | Fixed Annuities | 477 | | | 423 | | | Traditional Life | 1,208 | | | 1,329 | | | UL and Other | 6,219 | | | 6,146 | | | Group Protection | 178 | | | 136 | | | Retirement Plan Services | 308 | | | 288 | | | Other Operations | 7 | | | – | | | Total DAC, VOBA and DSI | $ | 12,637 | | | $ | 12,426 | |
The following table reconciles DFEL (in millions) to the Consolidated Balance Sheets:
| | | | | | | | | | | | | As of December 31, | | 2025 | | 2024 | | DFEL | | | | | Variable Annuities | $ | 282 | | | $ | 293 | | UL and Other (1) | 7,266 | | | 6,406 | | Other Operations (2) | 57 | | | 51 | | | Total DFEL | $ | 7,605 | | | $ | 6,750 | |
(1) We reported $2.6 billion and $2.4 billion of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. (2) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $57 million and $51 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. The following tables summarize the changes in DAC (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | Variable
Annuities | | Fixed
Annuities | | Traditional
Life | | UL and
Other | | Group Protection | | Retirement
Plan
Services | | Balance as of beginning-of-year | $ | 3,959 | | | $ | 393 | | | $ | 1,294 | | | $ | 5,754 | | | $ | 136 | | | $ | 246 | | | Business acquired (sold) through | | | | | | | | | | | | | reinsurance | – | | | – | | | (19) | | | – | | | (4) | | | – | | | Deferrals | 570 | | | 124 | | | 42 | | | 424 | | | 143 | | | 20 | | | Amortization | (422) | | | (65) | | | (137) | | | (314) | | | (97) | | | (19) | | | Balance as of end-of-year | $ | 4,107 | | | $ | 452 | | | $ | 1,180 | | | $ | 5,864 | | | $ | 178 | | | $ | 247 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2024 | | Variable
Annuities | | Fixed
Annuities | | Traditional
Life | | UL and
Other | | Group Protection | | Retirement
Plan
Services | | Balance as of beginning-of-year | $ | 3,868 | | | $ | 421 | | | $ | 1,332 | | | $ | 5,709 | | | $ | 154 | | | $ | 244 | | | Business acquired (sold) through | | | | | | | | | | | | | reinsurance | – | | | – | | | – | | | (73) | | | (38) | | | – | | | Deferrals | 454 | | | 44 | | | 107 | | | 420 | | | 134 | | | 21 | | | Amortization | (363) | | | (72) | | | (145) | | | (302) | | | (114) | | | (19) | | | Balance as of end-of-year | $ | 3,959 | | | $ | 393 | | | $ | 1,294 | | | $ | 5,754 | | | $ | 136 | | | $ | 246 | |
DAC amortization expense of $1.1 billion, $1.0 billion and $992 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023, respectively.
The following tables summarize the changes in VOBA (in millions):
| | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | Fixed
Annuities | | Traditional
Life | | UL and
Other | | Balance as of beginning-of-year | $ | 13 | | | $ | 35 | | | $ | 366 | | | | | | | | | | | | | | | Deferrals | – | | | – | | | 1 | | | Amortization | (2) | | | (7) | | | (37) | | | Balance as of end-of-year | $ | 11 | | | $ | 28 | | | $ | 330 | |
| | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2024 | | Fixed
Annuities | | Traditional
Life | | UL and
Other | | Balance as of beginning-of-year | $ | 15 | | | $ | 42 | | | $ | 402 | | | | | | | | | | | | | | | Deferrals | – | | | – | | | 2 | | | Amortization | (2) | | | (7) | | | (38) | | | Balance as of end-of-year | $ | 13 | | | $ | 35 | | | $ | 366 | |
VOBA amortization expense of $46 million, $47 million and $53 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023, respectively. No additions or write-offs were recorded for each respective year. Estimated future amortization of VOBA (in millions), as of December 31, 2025, was as follows:
| | | | | | | 2026 | $ | 36 | | | 2027 | 31 | | | 2028 | 26 | | | 2029 | 22 | | | 2030 | 20 | |
The following tables summarize the changes in DSI (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | Variable Annuities | | Fixed
Annuities | | UL and
Other | | Retirement
Plan
Services | | Balance as of beginning-of-year | $ | 145 | | | $ | 17 | | | $ | 26 | | | $ | 42 | | | Deferrals | 1 | | | – | | | – | | | 20 | | | Amortization | (13) | | | (3) | | | (1) | | | (1) | | | Balance as of end-of-year | $ | 133 | | | $ | 14 | | | $ | 25 | | | $ | 61 | |
| | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2024 | | Variable Annuities | | Fixed
Annuities | | UL and
Other | | Retirement
Plan
Services | | Balance as of beginning-of-year | $ | 157 | | | $ | 20 | | | $ | 28 | | | $ | 26 | | | Deferrals | 2 | | | – | | | 1 | | | 17 | | | Amortization | (14) | | | (3) | | | (3) | | | (1) | | | Balance as of end-of-year | $ | 145 | | | $ | 17 | | | $ | 26 | | | $ | 42 | |
DSI amortization expense of $18 million, $21 million and $21 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023, respectively.
The following tables summarize the changes in DFEL (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | For the Year Ended December 31, 2024 | | Variable Annuities | | UL and
Other | | Variable Annuities | | UL and
Other | | Balance as of beginning-of-year | $ | 293 | | | $ | 6,406 | | | $ | 300 | | | $ | 5,579 | | | Deferrals | 15 | | | 1,222 | | | 19 | | | 1,114 | | | Amortization | (26) | | | (362) | | | (26) | | | (287) | | | Balance as of end-of-year | 282 | | | 7,266 | | | 293 | | | 6,406 | | | Less: Reinsurance recoverables | – | | | 2,563 | | | – | | | 2,436 | | | Balance as of end-of-year, net of reinsurance | $ | 282 | | | $ | 4,703 | | | $ | 293 | | | $ | 3,970 | |
DFEL amortization of $388 million, $313 million and $290 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023, respectively.
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