Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired (Tables)

12 Months Ended

Dec. 31, 2023

The following table summarizes the change in deferred acquisition costs, deferred sales inducements and value of business acquired:


(In millions)	VOBA
Balance as of January 1, 2022	$	4,527
Change in discount rate assumptions for future policy benefits	(22)
Fair value adjustment of market risk benefits	(1,133)
Adjusted balance as of January 1, 2022	$	3,372

The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 12 for more information on Athene’s products.


	DAC								DSI		VOBA		Total DAC, DSI and VOBA
(In millions)	Traditional deferred annuities		Indexed annuities		Funding agreements		Other investment-type		Indexed annuities
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	—	$	3,372	$	3,372
Additions	320		784		14		9		411		—		1,538

Amortization	(16)		(29)		(3)		—		(12)		(384)		(444)
Balance at December 31, 2022	304		755		11		9		399		2,988		4,466
Additions	701		863		3		3		634		—		2,204

Amortization	(115)		(101)		(4)		(1)		(63)		(404)		(688)
Other	—		—		—		—		—		(3)		(3)
Balance at December 31, 2023	$	890	$	1,517	$	10	$	11	$	970	$	2,581	$	5,979

The following table summarizes the change in deferred acquisition costs, deferred sales inducements and value of business acquired:


(In millions)	VOBA
Balance as of January 1, 2022	$	4,527
Change in discount rate assumptions for future policy benefits	(22)
Fair value adjustment of market risk benefits	(1,133)
Adjusted balance as of January 1, 2022	$	3,372

The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 12 for more information on Athene’s products.


	DAC								DSI		VOBA		Total DAC, DSI and VOBA
(In millions)	Traditional deferred annuities		Indexed annuities		Funding agreements		Other investment-type		Indexed annuities
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	—	$	3,372	$	3,372
Additions	320		784		14		9		411		—		1,538

Amortization	(16)		(29)		(3)		—		(12)		(384)		(444)
Balance at December 31, 2022	304		755		11		9		399		2,988		4,466
Additions	701		863		3		3		634		—		2,204

Amortization	(115)		(101)		(4)		(1)		(63)		(404)		(688)
Other	—		—		—		—		—		(3)		(3)
Balance at December 31, 2023	$	890	$	1,517	$	10	$	11	$	970	$	2,581	$	5,979

The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 12 for more information on Athene’s products.


	DAC								DSI		VOBA		Total DAC, DSI and VOBA
(In millions)	Traditional deferred annuities		Indexed annuities		Funding agreements		Other investment-type		Indexed annuities
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	—	$	3,372	$	3,372
Additions	320		784		14		9		411		—		1,538

Amortization	(16)		(29)		(3)		—		(12)		(384)		(444)
Balance at December 31, 2022	304		755		11		9		399		2,988		4,466
Additions	701		863		3		3		634		—		2,204

Amortization	(115)		(101)		(4)		(1)		(63)		(404)		(688)
Other	—		—		—		—		—		(3)		(3)
Balance at December 31, 2023	$	890	$	1,517	$	10	$	11	$	970	$	2,581	$	5,979

The expected amortization of VOBA for the next five years is as follows: