DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Realized Investments Gains and Losses

The following table sets forth realized gains (losses) - derivatives for the periods shown:

Realized gains (losses) - derivative financial instruments

	For The Three Months Ended March 31,
	2021		2020
	(Dollars In Millions)
Derivatives related to VA contracts:
Interest rate futures	$	9	$	1
Equity futures	(8)		31
Currency futures	6		12
Equity options	(46)		280
Interest rate swaps	(297)		409
Total return swaps	(69)		140
Embedded derivative - GLWB	405		(935)
Total derivatives related to VA contracts	—		(62)
Derivatives related to FIA contracts:
Embedded derivative	3		39
Funds withheld derivative	(3)		—
Equity futures	1		(8)
Equity options	23		(60)
Other derivatives	(1)		—
Total derivatives related to FIA contracts	23		(29)
Derivatives related to IUL contracts:
Embedded derivative	21		—
Equity futures	—		(2)
Equity options	3		(14)
Total derivatives related to IUL contracts	24		(16)
Embedded derivative - Modco reinsurance treaties	127		75
Derivatives with PLC(1)	—		(2)
Other derivatives	7		9
Total realized gains (losses) - derivatives	$	181	$	(25)
(1) The Company and certain of its subsidiaries had an interest support agreement, YRT premium support agreements, and portfolio maintenance agreements with PLC through October 1, 2020. These agreements were terminated and a new portfolio maintenance agreement was entered into with PLC on that date.

Components of the Gain or Loss on Derivatives that Quality as a Cash Flow Hedging Relationship

The following table presents the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship.

Gain (Loss) on Derivatives in Cash Flow Hedging Relationship

	Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives		Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss)		Amount and Location of Gains (Losses) Recognized in Income (Loss) on Derivatives
	(Effective Portion)		(Effective Portion)		(Ineffective Portion)
			Benefits and settlement expenses		Realized gains (losses) - derivatives
	(Dollars In Millions)
For The Three Months Ended March 31, 2021
Foreign currency swaps	$	2	$	—	$	—
Total	$	2	$	—	$	—
For The Three Months Ended March 31, 2020
Foreign currency swaps	$	(5)	$	—	$	—
Interest rate swaps	(1)		(1)		—
Total	$	(6)	$	(1)	$	—

Schedule of Information About the Nature and Accounting Treatment of the Company's Primary Derivative Financial Instruments and the Location in and Effect on the Consolidated Financial Statements

The table below presents information about the nature and accounting treatment of the Company’s primary derivative financial instruments and the location in and effect on the consolidated condensed financial statements for the periods presented below:

	As of
	March 31, 2021				December 31, 2020
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars In Millions)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	1,448	$	104	$	1,478	$	185
Total return swaps	361		8		158		2
Derivatives with PLC(1)	4,272		—		4,076		—
Embedded derivative - Modco reinsurance treaties	1,478		68		1,249		101
Embedded derivative - GLWB	3,073		161		2,067		138
Embedded derivative - FIA	355		60		335		60
Interest rate futures	990		20		690		4
Equity futures	146		2		203		4
Currency futures	200		3		—		—
Equity options	7,887		1,198		7,208		1,142
	$	20,210	$	1,624	$	17,464	$	1,636
Other liabilities
Cash flow hedges:
Foreign currency swaps	$	117	$	7	$	117	$	10
Derivatives not designated as hedging instruments:
Interest rate swaps	1,384		—		1,354		—
Total return swaps	926		13		1,003		15
Embedded derivative - Modco reinsurance treaties	2,691		229		2,911		389
Funds withheld derivative	770		12		661		10
Embedded derivative - GLWB	6,744		579		7,749		960
Embedded derivative - FIA	4,084		643		3,889		633
Embedded derivative - IUL	379		179		357		201
Interest rate futures	383		15		415		3
Equity futures	106		2		190		5
Currency futures	—		—		264		4
Equity options	6,107		916		5,499		834
Other	338		56		304		55
	$	24,029	$	2,651	$	24,713	$	3,119
(1) The Company and certain of its subsidiaries had an interest support agreement, YRT premium support agreements, and portfolio maintenance agreements with PLC through October 1, 2020. These agreements were terminated and a new portfolio maintenance agreement was entered into with PLC on that date.