v3.26.1
DAC, VOBA, DSI and DFEL
 6 Months Ended
Jun. 30, 2026
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]  
DAC, VOBA, DSI and DFEL DAC, VOBA, DSI and DFEL
The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:

As of
June 30, 		As of
December 31,
20262025
DAC, VOBA and DSI
Variable Annuities$4,158 $4,112 
Fixed Annuities525 478 
Traditional Life1,279 1,308 
UL and Other6,448 6,421 
Group Protection193 198 
Retirement Plan Services305 304 
Other Operations10 6 
Total DAC, VOBA and DSI$12,918 $12,827 
The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:

As of
June 30, 		As of
December 31,
20262025
DFEL
Variable Annuities$259 $264 
UL and Other7,699 7,265 
Other Operations (1)
101 57 
Total DFEL$8,059 $7,586 

(1) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $101 million and $57 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively.

The following tables summarize the changes in DAC (in millions):

As of or For the Six Months Ended June 30, 2026
Variable
Annuities		Fixed
Annuities		Traditional
Life		UL and
Other		Group
Protection		Retirement
Plan
Services
Balance as of beginning-of-year$4,008 $452 $1,281 $6,057 $198 $242 
Deferrals270 85 45 213 60 9 
Amortization(219)(36)(71)(167)(65)(9)
Balance as of end-of-period$4,059 $501 $1,255 $6,103 $193 $242 

As of or For the Six Months Ended June 30, 2025
Variable
Annuities		Fixed
Annuities		Traditional
Life		UL and
Other		Group
Protection		Retirement
Plan
Services
Balance as of beginning-of-year$3,851 $394 $1,335 $5,916 $178 $242 
Deferrals264 26 45 198 67 9 
Amortization(195)(31)(72)(158)(59)(10)
Balance as of end-of-period$3,920 $389 $1,308 $5,956 $186 $241 

DAC amortization expense of $285 million and $567 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $262 million and $525 million, respectively, was recorded for the corresponding periods in 2025.

The following tables summarize the changes in VOBA (in millions):

As of or For the Six Months Ended
June 30, 2026
Fixed
Annuities		Traditional
Life		UL and
Other
Balance as of beginning-of-year$12 $27 $339 
Amortization(1)(3)(19)
Balance as of end-of-period$11 $24 $320 
As of or For the Six Months Ended
June 30, 2025
Fixed
Annuities		Traditional
Life		UL and
Other
Balance as of beginning-of-year$13 $35 $375 
Amortization(1)(4)(18)
Balance as of end-of-period$12 $31 $357 

VOBA amortization expense of $11 million and $23 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $11 million and $23 million, respectively, was recorded for the corresponding periods in 2025. No additions or write-offs were recorded for each respective period.

The following tables summarize the changes in DSI (in millions):

As of or For the Six Months Ended
June 30, 2026
Variable
Annuities		Fixed
Annuities		UL and
Other		Retirement
Plan
Services
Balance as of beginning-of-year$104 $14 $25 $62 
Deferrals– – 1 2 
Amortization(5)(1)(1)(1)
Balance as of end-of-period$99 $13 $25 $63 

As of or For the Six Months Ended
June 30, 2025
Variable
Annuities		Fixed
Annuities		UL and
Other		Retirement
Plan
Services
Balance as of beginning-of-year$113 $16 $27 $42 
Deferrals– – – 10 
Amortization(5)(1)(1)(1)
Balance as of end-of-period$108 $15 $26 $51 
 
DSI amortization expense of $4 million and $8 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $4 million and $8 million, respectively, was recorded for the corresponding periods in 2025.

The following tables summarize the changes in DFEL (in millions):

As of or For the Six
Months Ended
June 30, 2026		As of or For the Six
Months Ended
June 30, 2025
Variable
Annuities		UL and
Other		Variable
Annuities		UL and
Other
Balance as of beginning-of-year$264 $7,265 $273 $6,406 
Deferrals7 627 7 573 
Amortization(12)(193)(12)(183)
Balance as of end-of-period259 7,699 268 6,796 
Less: reinsurance recoverables– 217 – 233 
Balance as of end-of-period, net of reinsurance$259 $7,482 $268 $6,563 
DFEL amortization of $104 million and $205 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $91 million and $195 million, respectively, was recorded for the corresponding periods in 2025.