v3.26.3
Intangibles
 9 Months Ended
Sep. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Intangibles Intangibles
The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025 (in millions):
September 30, 2026December 31, 2025
Value of business acquired (“VOBA”)$1,095 $1,196 
Deferred acquisition costs (“DAC”)3,974 3,637 
Deferred sales inducements (“DSI”)1,102 891 
Value of distribution asset54 62 
Computer software75 80 
Definite lived trademarks, tradenames, and other200 173 
Customer relationships and contracts199 228 
Indefinite lived tradenames and other8 8 
Total Other intangible assets, net$6,707 $6,275 

The following tables roll forward VOBA by product for the nine months ended September 30, 2026 and 2025 (in millions):
Indexed AnnuitiesFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
Balance at January 1, 2026
$770 $18 $178 $119 $111 $1,196 
Amortization(86)(2)(4)(5)(4)(101)
Balance at September 30, 2026
$684 $16 $174 $114 $107 $1,095 

Indexed AnnuitiesFixed Rate AnnuitiesImmediate AnnuitiesUniversal LifeTraditional LifeTotal
Balance at January 1, 2025
$892 $22 $184 $126 $125 $1,349 
Amortization(93)(3)(5)(5)(11)(117)
Balance at September 30, 2025
$799 $19 $179 $121 $114 $1,232 

VOBA amortization expense of $101 million and $117 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2026 and 2025, respectively.

The following tables roll forward DAC by product for the nine months ended September 30, 2026 and 2025 (in millions):
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
Balance at January 1, 2026
$2,205 $402 $1,021 $3,628 
Capitalization407 19 218 644 
Amortization(177)(83)(49)(309)
Balance at September 30, 2026
$2,435 $338 $1,190 $3,963 
Indexed AnnuitiesFixed Rate AnnuitiesUniversal LifeTotal (a)
Balance at January 1, 2025
$1,874 $376 $781 $3,031 
Capitalization388 118 207 713 
Amortization(145)(78)(37)(260)
Balance at September 30, 2025
$2,117 $416 $951 $3,484 
(a)Excludes insignificant amounts of DAC related to FABN and PRT.
DAC amortization expense of $309 million and $260 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2026 and 2025, respectively, excluding insignificant amounts related to FABN and PRT.

The following table presents a reconciliation of DAC to the table above which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025 (in millions):
September 30, 2026December 31, 2025
Indexed Annuities $2,435 $2,205 
Fixed Rate Annuities338 402 
Universal Life1,190 1,021 
FABN5 5 
PRT6 4 
Total$3,974 $3,637 

The following table rolls forward DSI for our indexed annuity products for the nine months ended September 30, 2026 and 2025 (in millions):
Nine months ended September 30,
20262025
Balance at January 1,$891 $625 
Capitalization278243 
Amortization(67)(47)
Balance at September 30,
$1,102 $821 

DSI amortization expense of $67 million and $47 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2026 and 2025, respectively.

The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the future policy benefits (“FPB”) for life contingent immediate annuities and PRT. Those assumptions will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For indexed annuity contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA and DAC reflect the Company’s best estimates for policyholder behavior, consistent with the development of assumptions for indexed annuities and immediate annuities.
We review cash flow assumptions annually, generally in the third quarter. In 2025 and 2026, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuity (indexed annuity and fixed rate annuity) and IUL products. For the nine months ended September 30, 2026, we updated the assumptions for option budgets, surrenders, mortality, and GMWB utilization. For the year ended December 31, 2025, we updated the assumptions for option budgets, surrenders, lapses, mortality and mortality improvement, and free partial withdrawals. For both periods, these assumption updates resulted in increased amortization rates on some DAC and DSI balances, primarily for indexed annuities. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update.
The following table rolls forward the customer relationship intangibles acquired in the Roar and PALH acquisitions for the nine months ended September 30, 2026 and 2025 (in millions):
Nine months ended September 30,
20262025
Balance at January 1,
$228 $273 
Acquired and related adjustments— 6 
Amortization (29)(38)
Balance at September 30,
$199 $241 
There has been no material change to the estimated future amortization expense of VOBA, customer relationship intangibles and definite lived other intangible assets since December 31, 2025.

The following table presents the changes in carrying amount of goodwill for the nine months ended September 30, 2026 (in millions):
Nine months ended September 30,
2026
Balance at January 1,
$2,180 
Sale of F&G Life Re(51)
Balance at September 30,
$2,129