Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired

14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired

The following tables present a rollforward of deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) for the periods indicated:


	Three Months Ended June 30, 2026
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	2,068	$	387	$	2,455
Additions	187		10		197
Amortization	(50)		(6)		(56)
Net change	137		4		141
Balance, end of period	2,205		391		2,596

DSI
Balance, beginning of period	1,224		—		1,224
Additions	124		—		124
Amortization	(26)		—		(26)
Net change	98		—		98
Balance, end of period	1,322		—		1,322

VOBA
Balance, beginning of period	7,876		60		7,936


Amortization	(188)		(1)		(189)


Balance, end of period	7,688		59		7,747
Total DAC, DSI, and VOBA Asset	$	11,215	$	450	$	11,665

	Three Months Ended June 30, 2025
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	1,100	$	317	$	1,417
Additions	289		27		316
Amortization	(35)		(9)		(44)
Net change	254		18		272
Balance, end of period	1,354		335		1,689

DSI
Balance, beginning of period	528		—		528
Additions	206		—		206
Amortization	(11)		—		(11)
Net change	195		—		195
Balance, end of period	723		—		723

VOBA
Balance, beginning of period	8,654		64		8,718


Amortization	(190)		(1)		(191)


Balance, end of period	8,464		63		8,527
Total DAC, DSI, and VOBA Asset	$	10,541	$	398	$	10,939


	Six Months Ended June 30, 2026
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	1,893	$	377	$	2,270
Additions	412		25		437
Amortization	(100)		(11)		(111)
Net change	312		14		326
Balance, end of period	2,205		391		2,596

DSI
Balance, beginning of period	1,114		—		1,114
Additions	258		—		258
Amortization	(50)		—		(50)
Net change	208		—		208
Balance, end of period	1,322		—		1,322

VOBA
Balance, beginning of period	8,068		61		8,129


Amortization	(380)		(2)		(382)


Balance, end of period	7,688		59		7,747
Total DAC, DSI, and VOBA Asset	$	11,215	$	450	$	11,665

	Six Months Ended June 30, 2025
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	892	$	306	$	1,198
Additions	525		45		570
Amortization	(63)		(16)		(79)
Net change	462		29		491
Balance, end of period	1,354		335		1,689

DSI
Balance, beginning of period	393		—		393
Additions	349		—		349
Amortization	(19)		—		(19)
Net change	330		—		330
Balance, end of period	723		—		723

VOBA
Balance, beginning of period	8,848		65		8,913


Amortization	(384)		(2)		(386)


Balance, end of period	8,464		63		8,527
Total DAC, DSI, and VOBA Asset	$	10,541	$	398	$	10,939

The following table provides the projected VOBA asset amortization expenses for a five-year period and thereafter as of June 30, 2026:


Years	(Dollars in millions)
2026 (1)	$	363
2027	679
2028	623
2029	568
2030	520
Thereafter	4,994
Total amortization expense	$	7,747

(1)Expected amortization for the remainder of 2026.