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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional Amount and Fair Value of Derivative Instruments
The following table presents the notional amount and fair value of derivative instruments:
 
December 31,
 
2017
 
2016
 
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
(In millions)
 
Assets
 
Liabilities
 
 
Assets
 
Liabilities
Derivatives designated as hedges
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
928

 
$
1

 
$
99

 
289

 
$
11

 
$
4

Interest rate swaps
302

 
—

 
—

 
302

 
—

 
14

Total derivatives designated as hedges
 
 
1

 
99

 
 
 
11

 
18

Derivatives not designated as hedges
 
 
 
 
 
 
 
 
 
 
 
Equity options
31,460

 
2,500

 
19

 
26,822

 
1,336

 
—

Futures
1,134

 
7

 
—

 
—

 
9

 
—

Total return swaps
114

 
5

 
—

 
41

 
2

 
—

Foreign currency swaps
41

 
21

 
3

 
43

 
5

 
—

Interest rate swaps
385

 
—

 
2

 
568

 
1

 
5

Credit default swaps
10

 
—

 
5

 
10

 
—

 
7

Foreign currency forwards
1,139

 
17

 
6

 
805

 
6

 
10

Embedded derivatives
 
 
 
 
 
 
 
 
 
 
 
Funds withheld
—

 
312

 
22

 
—

 
140

 
6

Interest sensitive contract liabilities
—

 
—

 
7,436

 
—

 
—

 
5,283

Total derivatives not designated as hedges
 
 
2,862

 
7,493

 
 
 
1,499

 
5,311

Total derivatives
 
 
$
2,863

 
$
7,592

 
 
 
$
1,510

 
$
5,329
Gains (Losses) on Derivatives and Related Hedged Items
The following table represents the gains and losses on derivatives and the related hedged items in fair value hedge relationships, recorded in interest sensitive contract benefits on the consolidated statements of income:
 
Years ended December 31,
(In millions)
2017
 
2016
Gains (losses) recognized on derivative
$
2

 
$
(14
)
Gains (losses) recognized on hedged item
(2
)
 
14

Ineffectiveness recognized on fair value hedges
$
—

 
$
—
Gains (Losses) Related to Derivatives Not Designated as Hedges
The following is a summary of the gains (losses) related to derivatives not designated as hedges:
 
Years ended December 31,
(In millions)
2017
 
2016
 
2015
Equity options
$
1,939

 
$
325

 
$
(372
)
Futures
(24
)
 
(19
)
 
(3
)
Swaps
27

 
18

 
8

Foreign currency forwards
28

 
(2
)
 
21

Embedded derivatives on funds withheld
407

 
274

 
69

Amounts recognized in investment related gains (losses)
2,377

 
596

 
(277
)
Embedded derivatives in indexed annuity products1
(1,758
)
 
(324
)
 
171

Total gains (losses) for derivatives not designated as hedges
$
619

 
$
272

 
$
(106
)
 
 
 
 
 
 
1 Included in interest sensitive contract benefits.
Estimated Fair Value of Net Derivative and Other Financial Assets
The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
 
 
 
Gross amounts not offset on the consolidated balance sheets
 
 
 
 
 
 
(In millions)
Gross amount recognized1
 
Financial instruments2
 
Collateral received/pledged
 
Net amount
 
Off-balance sheet securities collateral3
 
Net amount after securities collateral
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
2,551

 
$
(59
)
 
$
(2,323
)
 
$
169

 
$
(221
)
 
$
(52
)
Derivative liabilities
(134
)
 
59

 
63

 
(12
)
 
—

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
1,370

 
$
(8
)
 
$
(1,383
)
 
$
(21
)
 
$
(26
)
 
$
(47
)
Derivative liabilities
(40
)
 
8

 
25

 
(7
)
 
—

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2017 and 2016, amounts not subject to master netting or similar agreements were immaterial.
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets.
3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received.
Estimated Fair Value of Net Derivative and Other Financial Liabilities
The estimated fair value of our net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
 
 
 
Gross amounts not offset on the consolidated balance sheets
 
 
 
 
 
 
(In millions)
Gross amount recognized1
 
Financial instruments2
 
Collateral received/pledged
 
Net amount
 
Off-balance sheet securities collateral3
 
Net amount after securities collateral
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
2,551

 
$
(59
)
 
$
(2,323
)
 
$
169

 
$
(221
)
 
$
(52
)
Derivative liabilities
(134
)
 
59

 
63

 
(12
)
 
—

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
1,370

 
$
(8
)
 
$
(1,383
)
 
$
(21
)
 
$
(26
)
 
$
(47
)
Derivative liabilities
(40
)
 
8

 
25

 
(7
)
 
—

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2017 and 2016, amounts not subject to master netting or similar agreements were immaterial.
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the consolidated balance sheets.
3 For non-cash collateral received, we do not recognize the collateral on our balance sheet unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received.