Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Total return swaps: The Company uses total return swaps as a hedge of interest related risks within various Legacy Annuity and Retirement products. Total return swaps are also used as a hedge of other corporate liabilities. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic performance of assets or a market index and a fixed or variable funding multiplied by reference to an agreed upon notional amount. No cash is exchanged at the onset of the contracts. Cash is paid and received over the life of the contract based upon the terms of the swaps. The Company utilized these contracts in non-qualifying hedging relationships.

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. Such decreases may correlate to a decrease in variable annuity account values which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.


	June 30, 2023						December 31, 2022
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges:
Foreign exchange contracts	$	103	$	1	$	—	$	81	$	—	$	6

Cash flow hedges:
Interest rate contracts	44		—		—		22		—		—
Foreign exchange contracts	745		54		3		718		71		2
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	27,506		374		390		18,304		341		376
Foreign exchange contracts	249		4		1		160		9		2
Equity contracts	255		11		2		248		1		1
Credit contracts	177		—		4		174		—		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	N/A		2		—		N/A		3		—

Within reinsurance agreements(4)	N/A		78		47		N/A		95		46
Managed custody guarantees(3)	N/A		—		3		N/A		—		6
Total			$	524	$	450			$	520	$	441

The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments. Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as outlined in ASC Topic 815 as of June 30, 2023 and December 31, 2022.

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts are presented in the tables below as of the dates indicated:


	June 30, 2023
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	177	$	—	$	4
Equity contracts	225		11		2
Foreign exchange contracts	1,097		59		4
Interest rate contracts	24,444		374		389
			444		399
Counterparty netting(1)			(341)		(341)
Cash collateral netting(1)			(96)		(52)
Securities collateral netting(1)			(5)		(5)
Net receivables/payables			$	2	$	1


	December 31, 2022
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	174	$	—	$	2
Equity contracts	201		1		1
Foreign exchange contracts	959		80		10
Interest rate contracts	13,328		339		376
			420		389
Counterparty netting(1)			(295)		(295)
Cash collateral netting(1)			(64)		(88)
Securities collateral netting(1)			(6)		(1)
Net receivables/payables			$	55	$	5

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan and repurchase agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets.

As of June 30, 2023, the Company held $98 and pledged $55 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2022, the Company held $56 and pledged $79 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of June 30, 2023, the Company delivered $175 of securities and held $6 of securities as collateral. As of December 31, 2022, the Company delivered $142 of securities and held $7 of securities as collateral.


	Three Months Ended June 30,
	2023				2022
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income and Net gains/(losses)		Net investment income		Net investment income and Net gains/(losses)
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$	—	$	(6)	$	(1)	$	55
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	—		2		—		2

	Six Months Ended June 30,
	2023				2022
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income and Net gains/(losses)		Net investment income		Net investment income and Net gains/(losses)
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$	—	$	(18)	$	(2)	$	62
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	—		5		—		5


	Three Months Ended June 30,
	2023				2022
	Net investment income		Net gains/(losses)		Net investment income		Net gains/(losses)
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded	$	545	$	(56)	$	581	$	(226)
Derivatives: Qualifying for hedge accounting
Fair value hedges:
Foreign exchange contracts:
Hedged items	—		—		—		(5)
Derivatives designated as hedging instruments(1)	—		—		—		6
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	2		—		2		—

	Six Months Ended June 30,
	2023				2022
	Net investment income		Net gains/(losses)		Net investment income		Net gains/(losses)
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded	$	1,090	$	(72)	$	1,211	$	(514)
Derivatives: Qualifying for hedge accounting
Fair value hedges:
Foreign exchange contracts:
Hedged items	—		2		—		(7)
Derivatives designated as hedging instruments(1)	—		(1)		—		8
Cash flow hedges:


Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	5		—		5		—

(1) For the three months ended June 30, 2023, an immaterial amount of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning. For the six months ended June 30, 2023, $1 of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning. For the three and six months ended June 30, 2022, $1 of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning.


	Location of Gain (Loss) on Derivative	Three Months Ended June 30,
		2023		2022
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Net gains (losses)	$	114	$	52
Foreign exchange contracts	Net gains (losses)	—		(1)
Equity contracts	Net gains (losses)	5		(20)
Credit contracts	Net gains (losses)	—		(4)
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Net gains (losses)	(2)		(2)
Within reinsurance agreements(1)	Policyholder benefits	8		84
Managed custody guarantees	Net gains (losses)	—		1
Total		$	125	$	110

	Location of Gain (Loss) on Derivative	Six Months Ended June 30,
		2023		2022
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Net gains (losses)	$	58	$	152
Foreign exchange contracts	Net gains (losses)	1		(2)
Equity contracts	Net gains (losses)	8		(28)
Credit contracts	Net gains (losses)	(1)		(4)
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Net gains (losses)	(1)		(6)

Within reinsurance agreements(1)	Policyholder benefits	(18)		176
Managed custody guarantees	Net gains (losses)	3		(2)
Total		$	50	$	286

(1) For the three and six months ended June 30, 2023, the amount excludes immaterial gains (losses) from standalone derivatives that were recognized in Net gains (losses). For the three months ended June 30, 2022, no gains (losses) from standalone derivatives were recognized. For the six months ended June 30, 2022, the amount excluded gains (losses) of $1 from standalone derivatives recognized in Net gains (losses).