Derivative Instruments (Tables)
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9 Months Ended |
Sep. 30, 2023 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Notional Amount and Fair Value of Derivative Instruments |
The following table presents the notional amount and fair value of derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Notional Amount | | Fair Value | | Notional Amount | | Fair Value | | (In millions) | | Assets | | Liabilities | | | Assets | | Liabilities | | Derivatives designated as hedges | | | | | | | | | | | | | Foreign currency hedges | | | | | | | | | | | | | Swaps | 8,240 | | | $ | 647 | | | $ | 167 | | | 6,677 | | | $ | 747 | | | $ | 154 | | | Forwards | 6,381 | | | 437 | | | 40 | | | 6,283 | | | 406 | | | 52 | | | Interest rate swaps | 4,468 | | | — | | | 809 | | | 4,468 | | | — | | | 803 | | | Forwards on net investments | 219 | | | 3 | | | — | | | 216 | | | 2 | | | — | | | Interest rate swaps | 10,031 | | | 14 | | | 203 | | | 9,332 | | | 9 | | | 150 | | | Total derivatives designated as hedges | | | 1,101 | | | 1,219 | | | | | 1,164 | | | 1,159 | | | Derivatives not designated as hedges | | | | | | | | | | | | | Equity options | 71,579 | | | 2,530 | | | 101 | | | 65,089 | | | 1,374 | | | 114 | | | Futures | 30 | | | 69 | | | 8 | | | 18 | | | 33 | | | — | | | Foreign currency swaps | 4,549 | | | 278 | | | 108 | | | 3,563 | | | 251 | | | 112 | | | Interest rate swaps | 482 | | | 79 | | | — | | | 488 | | | 74 | | | — | | | Other swaps | 180 | | | — | | | 3 | | | 89 | | | — | | | 4 | | | Foreign currency forwards | 22,322 | | | 514 | | | 453 | | | 16,376 | | | 413 | | | 257 | | | Embedded derivatives | | | | | | | | | | | | | Funds withheld including related parties | | | (5,953) | | | (89) | | | | | (6,272) | | | (77) | | | Interest sensitive contract liabilities | | | — | | | 7,345 | | | | | — | | | 5,841 | | | Total derivatives not designated as hedges | | | (2,483) | | | 7,929 | | | | | (4,127) | | | 6,251 | | | Total derivatives | | | $ | (1,382) | | | $ | 9,148 | | | | | $ | (2,963) | | | $ | 7,410 | |
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| 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: | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | (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 | $ | 5,372 | | | $ | (245) | | | $ | 5,259 | | | $ | (217) | | | Foreign currency swaps | 5,448 | | | (452) | | | 4,797 | | | (398) | | | Interest sensitive contract liabilities | | | | | | | | | Foreign currency swaps | 1,369 | | | 90 | | | 1,081 | | | 88 | | | Foreign currency interest rate swaps | 3,724 | | | 647 | | | 4,348 | | | 632 | | | Interest rate swaps | 6,711 | | | 386 | | | 6,577 | | | 323 | | | | | | | | | | 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 September 30, 2023 | | | | | | | | | | | Investment related gains (losses) | | | | | | | | | | | Foreign currency forwards | $ | 179 | | | $ | (187) | | | $ | (8) | | | $ | 21 | | | $ | 5 | | | Foreign currency swaps | 161 | | | (166) | | | (5) | | | — | | | — | | | Foreign currency interest rate swaps | (90) | | | 95 | | | 5 | | | — | | | — | | | Interest rate swaps | (74) | | | 63 | | | (11) | | | — | | | — | | | Interest sensitive contract benefits | | | | | | | | | | | | | | | | | | | | | Foreign currency interest rate swaps | 16 | | | (14) | | | 2 | | | — | | | — | | | | | | | | | | | | Three months ended September 30, 2022 | | | | | | | | | | | Investment related gains (losses) | | | | | | | | | | | Foreign currency forwards | $ | 288 | | | $ | (290) | | | $ | (2) | | | $ | 18 | | | $ | — | | | Foreign currency swaps | 256 | | | (283) | | | (27) | | | — | | | — | | | Foreign currency interest rate swaps | (379) | | | 384 | | | 5 | | | — | | | — | | | Interest rate swaps | (268) | | | 264 | | | (4) | | | — | | | — | | | Interest sensitive contract benefits | | | | | | | | | | | Foreign currency interest rate swaps | 12 | | | (14) | | | (2) | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amount Excluded | | (In millions) | Derivatives | | Hedged Items | | Net | | Recognized in income through amortization approach | | Recognized in income through changes in fair value | Nine months ended September 30, 2023 | | | | | | | | | | | Investment related gains (losses) | | | | | | | | | | | Foreign currency forwards | $ | 74 | | | $ | (77) | | | $ | (3) | | | $ | 66 | | | $ | 12 | | | Foreign currency swaps | 59 | | | (57) | | | 2 | | | — | | | — | | | Foreign currency interest rate swaps | (5) | | | 15 | | | 10 | | | — | | | — | | | Interest rate swaps | (92) | | | 79 | | | (13) | | | — | | | — | | | Interest sensitive contract benefits | | | | | | | | | | | | | | | | | | | | | Foreign currency interest rate swaps | 44 | | | (44) | | | — | | | — | | | — | | | | | | | | | | | | Nine months ended September 30, 2022 | | | | | | | | | | | Investment related gains (losses) | | | | | | | | | | | Foreign currency forwards | $ | 616 | | | $ | (648) | | | $ | (32) | | | $ | 48 | | | $ | 1 | | | Foreign currency swaps | 589 | | | (630) | | | (41) | | | — | | | — | | | Foreign currency interest rate swaps | (873) | | | 879 | | | 6 | | | — | | | — | | | Interest rate swaps | (345) | | | 357 | | | 12 | | | — | | | — | | | Interest sensitive contract benefits | | | | | | | | | | | Foreign currency interest rate swaps | 37 | | | (37) | | | — | | | — | | | — | |
The following is a summary of the gains (losses) excluded from the assessment of hedge effectiveness that were recognized in OCI: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | | | | | | (In millions) | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | Foreign currency forwards | $ | (65) | | | $ | (20) | | | $ | (63) | | | $ | (77) | | | | | | | | Foreign currency swaps | (239) | | | 51 | | | (182) | | | 60 | | | | | | | | | | | | | | | | | | | |
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| 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) | 2023 | | 2022 | | 2023 | | 2022 | | | | | | | Equity options | $ | (951) | | | $ | (449) | | | $ | 390 | | | $ | (2,728) | | | | | | | | Futures | (73) | | | (34) | | | 22 | | | (153) | | | | | | | | Swaps | (24) | | | 132 | | | 38 | | | 121 | | | | | | | | Foreign currency forwards | 146 | | | 454 | | | (191) | | | 971 | | | | | | | | Embedded derivatives on funds withheld | (780) | | | (1,839) | | | (439) | | | (7,041) | | | | | | | | Amounts recognized in investment related gains (losses) | (1,682) | | | (1,736) | | | (180) | | | (8,830) | | | | | | | Embedded derivatives in indexed annuity products1 | 1,251 | | | 526 | | | (277) | | | 3,079 | | | | | | | | Total gains (losses) on derivatives not designated as hedges | $ | (431) | | | $ | (1,210) | | | $ | (457) | | | $ | (5,751) | | | | | | | | | | | | | | | | | | | | 1 Included in interest sensitive contract benefits on the condensed consolidated statements of income (loss). |
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| 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, 2023 | | | | | | | | | | | | | Derivative assets | $ | 4,571 | | | $ | (1,665) | | | $ | (3,140) | | | $ | (234) | | | $ | — | | | $ | (234) | | | Derivative liabilities | (1,892) | | | 1,665 | | | 655 | | | 428 | | | — | | | 428 | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | Derivative assets | $ | 3,309 | | | $ | (1,477) | | | $ | (1,952) | | | $ | (120) | | | $ | — | | | $ | (120) | | | Derivative liabilities | (1,646) | | | 1,477 | | | 478 | | | 309 | | | — | | | 309 | | | | | | | | | | | | | | 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2023 and December 31, 2022, 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. |
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| 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, 2023 | | | | | | | | | | | | | Derivative assets | $ | 4,571 | | | $ | (1,665) | | | $ | (3,140) | | | $ | (234) | | | $ | — | | | $ | (234) | | | Derivative liabilities | (1,892) | | | 1,665 | | | 655 | | | 428 | | | — | | | 428 | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | Derivative assets | $ | 3,309 | | | $ | (1,477) | | | $ | (1,952) | | | $ | (120) | | | $ | — | | | $ | (120) | | | Derivative liabilities | (1,646) | | | 1,477 | | | 478 | | | 309 | | | — | | | 309 | | | | | | | | | | | | | | 1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated balance sheets. As of September 30, 2023 and December 31, 2022, 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. |
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