Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

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:

	Successor					Predecessor
	June 30, 2022					December 31, 2021
	Notional Amount	Fair Value				Notional Amount	Fair Value
(In millions)		Assets		Liabilities			Assets		Liabilities
Derivatives designated as hedges
Foreign currency hedges
Swaps	6,617	$	678	$	109	6,371	$	281	$	56
Forwards	5,009	427		3		6,395	189		2
Interest rate swaps	4,468	—		676		2,783	—		173
Forwards on net investments	235	7		—		231	—		4
Interest rate swaps	6,770	28		8		500	—		1
Total derivatives designated as hedges		1,140		796			470		236
Derivatives not designated as hedges
Equity options	60,234	1,076		105		57,890	3,629		115
Futures	21	20		1		33	67		—
Total return swaps	137	—		14		231	10		—
Foreign currency swaps	2,928	149		90		2,592	57		19
Interest rate swaps	461	69		1		483	78		1
Credit default swaps	10	—		1		10	—		3
Foreign currency forwards	11,623	478		215		7,382	76		98
Embedded derivatives
Funds withheld including related party		(5,087)		—			1,360		45
Interest sensitive contract liabilities		—		5,451			—		14,907
Total derivatives not designated as hedges		(3,295)		5,878			5,277		15,188
Total derivatives		$	(2,155)	$	6,674		$	5,747	$	15,424

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following is a summary of the gains (losses) related to cash flow hedges:

	Predecessor
(In millions)	Three months ended June 30, 2021		Six months ended June 30, 2021
Foreign currency swaps – Other comprehensive income	$	88	$	57
Foreign currency swaps – Investment related gains (losses)	27		27

There were no amounts deemed ineffective during the three and six months ended June 30, 2021.

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

The following represents the carrying amount and the cumulative fair value hedging adjustments included in the hedged assets or liabilities:

	Successor				Predecessor
	June 30, 2022				December 31, 2021
(In millions)	Carrying amount of the hedged assets or liabilities1		Cumulative amount of fair value hedging gains (losses)		Carrying amount of the hedged assets or liabilities1		Cumulative amount of fair value hedging gains (losses)
AFS securities
Foreign currency forwards	$	3,966	$	(354)	$	4,224	$	(136)
Foreign currency swaps	4,524		(441)		—		—
Mortgage loans – Foreign currency forwards	—		—		1,686		(44)
Interest sensitive contract liabilities
Foreign currency swaps	1,067		93		—		—
Foreign currency interest rate swaps	4,348		495		2,773		121
Interest rate swaps	6,770		93		500		—
1 The carrying amount disclosed for AFS securities is amortized cost.

The following is a summary of the gains (losses) related to the derivatives and related hedged items in fair value hedge relationships:

							Amount Excluded
(In millions)	Derivatives		Hedged Items		Net		Recognized in income through amortization approach		Recognized in income through changes in fair value
Three months ended June 30, 2022 (Successor)
Investment related gains (losses)
Foreign currency forwards	$	201	$	(232)	$	(31)	$	16	$	—
Foreign currency swaps	242		(252)		(10)		—		—
Foreign currency interest rate swaps	(335)		298		(37)		—		—
Interest rate swaps	(5)		18		13		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	15		(14)		1		—		—
Three months ended June 30, 2021 (Predecessor)
Investment related gains (losses)
Foreign currency forwards	$	(13)	$	29	$	16	$	—	$	—
Foreign currency interest rate swaps	5		(9)		(4)		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	5		(4)		1		—		—

							Amount Excluded
(In millions)	Derivatives		Hedged Items		Net		Recognized in income through amortization approach		Recognized in income through changes in fair value
Six months ended June 30, 2022 (Successor)
Investment related gains (losses)
Foreign currency forwards	$	328	$	(358)	$	(30)	$	30	$	1
Foreign currency swaps	333		(347)		(14)		—		—
Foreign currency interest rate swaps	(494)		495		1		—		—
Interest rate swaps	(77)		93		16		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	25		(23)		2		—		—
Six months ended June 30, 2021 (Predecessor)
Investment related gains (losses)
Foreign currency forwards	$	205	$	(188)	$	17	$	—	$	—
Foreign currency interest rate swaps	(31)		32		1		—		—
Interest sensitive contract benefits
Foreign currency interest rate swaps	6		(5)		1		—		—

The following is a summary of the gains (losses) excluded from the assessment of hedge effectiveness that were recognized in OCI:

	Successor		Predecessor		Successor		Predecessor
(In millions)	Three months ended June 30, 2022		Three months ended June 30, 2021		Six months ended June 30, 2022		Six months ended June 30, 2021
Foreign currency forwards	$	16	$	4	$	(57)	$	4
Foreign currency swaps	65		—		9		—

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:

	Successor		Predecessor		Successor		Predecessor
(In millions)	Three months ended June 30, 2022		Three months ended June 30, 2021		Six months ended June 30, 2022		Six months ended June 30, 2021
Equity options	$	(1,571)	$	1,044	$	(2,279)	$	1,546
Futures	(86)		44		(119)		55
Swaps	(74)		5		(11)		36
Foreign currency forwards	362		(19)		517		(50)
Embedded derivatives on funds withheld	(2,682)		1,391		(5,202)		258
Amounts recognized in investment related gains (losses)	(4,051)		2,465		(7,094)		1,845
Embedded derivatives in indexed annuity products1	1,487		(1,183)		2,444		(848)
Total net gains (losses) on derivatives not designated as hedges	$	(2,564)	$	1,282	$	(4,650)	$	997
1 Included in interest sensitive contract benefits on the condensed consolidated statements of income (loss).

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
June 30, 2022 (Successor)
Derivative assets	$	2,932	$	(1,204)	$	(1,904)	$	(176)	$	—	$	(176)
Derivative liabilities	(1,223)		1,204		304		285		—		285
December 31, 2021 (Predecessor)
Derivative assets	$	4,387	$	(430)	$	(3,934)	$	23	$	—	$	23
Derivative liabilities	(472)		430		32		(10)		—		(10)
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of June 30, 2022 and December 31, 2021, 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
June 30, 2022 (Successor)
Derivative assets	$	2,932	$	(1,204)	$	(1,904)	$	(176)	$	—	$	(176)
Derivative liabilities	(1,223)		1,204		304		285		—		285
December 31, 2021 (Predecessor)
Derivative assets	$	4,387	$	(430)	$	(3,934)	$	23	$	—	$	23
Derivative liabilities	(472)		430		32		(10)		—		(10)
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of June 30, 2022 and December 31, 2021, 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.