10. GOODWILL AND INTANGIBLE ASSETS
The following table presents a rollforward of goodwill at December 31, 2023 and 2022.
| | | | | | | | | | | | | | |
| December 31, | | 2023 | | 2022 |
| Beginning balance | | $ | 61 | | | $ | 46 | |
| Business acquisitions | | 9 | | | 15 | |
| Impairments | | — | | | — | |
| Ending balance | | $ | 70 | | | $ | 61 | |
Intangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below.
| | | | | | | | | | | | | | |
| December 31, | | 2023 | | 2022 |
| Finite-lived Intangible Assets: | | | | |
| Insurance intangible: | | | | |
| Gross carrying value | | $ | 1,258 | | | $ | 1,247 | |
| Accumulated amortization | | 1,013 | | | 981 | |
| Net insurance intangible asset | | 245 | | | 266 | |
| Other intangibles: | | | | |
| Gross Carrying value | | 57 | | | 52 | |
| Accumulated amortization | | 10 | | | 6 | |
| Net other intangible assets | | 47 | | | 47 | |
| Total finite-lived intangible assets | | $ | 292 | | | $ | 312 | |
| Indefinite-lived Intangible Assets: | | | | |
| Insurance licenses | | $ | 14 | | | $ | 14 | |
| Total intangible assets | | $ | 307 | | | $ | 326 | |
Amortization Expense:
Amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss), as shown below.
| | | | | | | | | | | | | | | | | | | | |
| Year ended December 31, | | 2023 | | 2022 | | 2021 |
| Insurance intangible | | $ | 25 | | | 44 | | | $ | 52 | |
| Other intangibles | | 4 | | | 3 | | | 3 | |
| Total | | $ | 29 | | | $ | 47 | | | $ | 55 | |
The estimated future amortization expense for finite-lived intangible assets is as follows:
| | | | | | | | | | | | | | | | | | | | |
| Amortization Expense | | Insurance Intangible Asset (1) | | Other Intangible Assets (1) | | Total |
| 2024 | | $ | 26 | | | $ | 5 | | | $ | 30 | |
| 2025 | | 24 | | | 4 | | | 28 | |
| 2026 | | 22 | | | 4 | | | 26 | |
| 2027 | | 20 | | | 4 | | | 24 | |
| 2028 | | 18 | | | 4 | | | 22 | |
| Thereafter | | 136 | | | 26 | | | 162 | |
The weighted-average insurance intangible amortization and other intangible amortization periods are 7.1 years and 5.3 years, respectively.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.