The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees, which are included in other revenues, are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees.

To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees.

Other revenues included 12b-1 fees of $49 million for both the three months ended March 31, 2026 and 2025, of which substantially all were reported in the Annuities segment.


	Three Months Ended March 31,
		2026		2025
		(In millions)
Compensation		$	109	$	124
Contracted services and other labor costs		66		66
Transition services agreements		3		3

Premium and other taxes, licenses and fees		14		15
Volume related costs, excluding compensation, net of DAC capitalization		128		128
Interest expense on debt		17		17
Other		55		57
Total other expenses		$	392	$	410