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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
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,
 
2018
 
2017
 
Notional Amount
 
Fair Value
 
Notional Amount
 
Fair Value
(In millions)
 
Assets
 
Liabilities
 
 
Assets
 
Liabilities
Derivatives designated as hedges
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
2,041

 
$
83

 
$
55

 
928

 
$
1

 
$
99

Interest rate swaps
—

 
—

 
—

 
302

 
—

 
—

Foreign currency forwards
85

 
—

 
1

 
—

 
—

 
—

Total derivatives designated as hedges
 
 
83

 
56

 
 
 
1

 
99

Derivatives not designated as hedges
 
 
 
 
 
 
 
 
 
 
 
Equity options
49,821

 
942

 
11

 
31,460

 
2,500

 
19

Futures
4

 
9

 
3

 
1,134

 
7

 
—

Total return swaps
62

 
—

 
3

 
114

 
5

 
—

Foreign currency swaps
38

 
3

 
2

 
41

 
21

 
3

Interest rate swaps
326

 
—

 
1

 
385

 
—

 
2

Credit default swaps
10

 
—

 
4

 
10

 
—

 
5

Foreign currency forwards
646

 
6

 
5

 
1,139

 
17

 
6

Embedded derivatives
 
 
 
 
 
 
 
 
 
 
 
Funds withheld including related party
 
 
(53
)
 
(1
)
 
 
 
312

 
22

Interest sensitive contract liabilities
 
 
—

 
7,969

 
 
 
—

 
7,411

Total derivatives not designated as hedges
 
 
907

 
7,997

 
 
 
2,862

 
7,468

Total derivatives
 
 
$
990

 
$
8,053

 
 
 
$
2,863

 
$
7,567
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)
2018
 
2017
 
2016
Equity options
$
(877
)
 
$
1,939

 
$
325

Futures
2

 
(24
)
 
(19
)
Swaps
(8
)
 
27

 
18

Foreign currency forwards
16

 
28

 
(2
)
Embedded derivatives on funds withheld
(232
)
 
407

 
274

Amounts recognized in investment related gains (losses)
(1,099
)
 
2,377

 
596

Embedded derivatives in indexed annuity products1
923

 
(1,744
)
 
(308
)
Total gains (losses) on derivatives not designated as hedges
$
(176
)
 
$
633

 
$
288

 
 
 
 
 
 
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, 2018
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
1,043

 
$
(52
)
 
$
(969
)
 
$
22

 
$
(4
)
 
$
18

Derivative liabilities
(85
)
 
52

 
24

 
(9
)
 
—

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
2,551

 
$
(59
)
 
$
(2,323
)
 
$
169

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

 
63

 
(12
)
 
—

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2018 and 2017, 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, 2018
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
1,043

 
$
(52
)
 
$
(969
)
 
$
22

 
$
(4
)
 
$
18

Derivative liabilities
(85
)
 
52

 
24

 
(9
)
 
—

 
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
$
2,551

 
$
(59
)
 
$
(2,323
)
 
$
169

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

 
63

 
(12
)
 
—

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the consolidated balance sheets. As of December 31, 2018 and 2017, 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.