Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative [Line Items]

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following is a summary of the gains (losses) related to the derivatives and related hedged items in fair value hedge relationships, which are included in investment related gains (losses) on the condensed consolidated statements of income:

	Three months ended September 30,				Nine months ended September 30,
(In millions)	2020		2019		2020		2019
Derivatives	$	(52)	$	13	$	(60)	$	13
Related AFS securities	50		(11)		59		(12)
Total gains (losses) on derivatives and related hedged items	$	(2)	$	2	$	(1)	$	1

Notional Amount and Fair Value of Derivative Instruments

The following table presents the notional amount and fair value of derivative instruments:

	September 30, 2020					December 31, 2019
	Notional Amount	Fair Value				Notional Amount	Fair Value
(In millions)		Assets		Liabilities			Assets		Liabilities
Derivatives designated as hedges
Foreign currency swaps	3,268	$	243	$	45	3,158	$	113	$	56
Foreign currency forwards	1,736	15		1		717	1		9
Foreign currency forwards on net investments	136	—		1		139	—		2
Total derivatives designated as hedges		258		47			114		67
Derivatives not designated as hedges
Equity options	53,997	2,401		26		49,549	2,746		5
Futures	16	48		4		8	10		1
Total return swaps	72	1		—		106	6		—
Foreign currency swaps	1,510	25		8		35	2		1
Interest rate swaps	911	11		41		776	3		4
Credit default swaps	10	—		5		10	—		3
Foreign currency forwards	2,963	27		16		1,924	7		16
Embedded derivatives
Funds withheld including related party		1,980		50			1,395		31
Interest sensitive contract liabilities		—		11,741			—		10,942
Total derivatives not designated as hedges		4,493		11,891			4,169		11,003
Total derivatives		$	4,751	$	11,938		$	4,283	$	11,070

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:

	Three months ended September 30,				Nine months ended September 30,
(In millions)	2020		2019		2020		2019
Equity options	$	606	$	77	$	(303)	$	1,365
Futures	50		(3)		63		(17)
Swaps	29		8		9		37
Foreign currency forwards	(114)		42		(70)		47
Embedded derivatives on funds withheld	1,077		496		1,260		2,061
Amounts recognized in investment related gains (losses)	1,648		620		959		3,493
Embedded derivatives in indexed annuity products1	(553)		(265)		(910)		(1,920)
Total gains (losses) on derivatives not designated as hedges	$	1,095	$	355	$	49	$	1,573
1 Included in interest sensitive contract benefits on the condensed consolidated statements of income.

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 condensed 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
September 30, 2020
Derivative assets		$	2,771	$	(61)	$	(2,564)	$	146	$	(41)	$	105
Derivative liabilities		(147)		61		77		(9)		—		(9)
December 31, 2019
Derivative assets		$	2,888	$	(67)	$	(2,743)	$	78	$	(145)	$	(67)
Derivative liabilities		(97)		67		31		1		—		1
1	The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019, 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 condensed 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 condensed 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
September 30, 2020
Derivative assets		$	2,771	$	(61)	$	(2,564)	$	146	$	(41)	$	105
Derivative liabilities		(147)		61		77		(9)		—		(9)
December 31, 2019
Derivative assets		$	2,888	$	(67)	$	(2,743)	$	78	$	(145)	$	(67)
Derivative liabilities		(97)		67		31		1		—		1
1	The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019, 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 condensed 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.