DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30,				For The Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars In Millions)
Derivatives related to VA contracts:
Interest rate futures	$	(1)	$	(7)	$	8	$	(5)
Equity futures	(4)		102		(12)		133
Currency futures	(1)		(1)		5		11
Equity options	(36)		(172)		(82)		108
Interest rate swaps	154		12		(143)		421
Total return swaps	(56)		(78)		(125)		62
Embedded derivative - GLWB	(103)		64		302		(871)
Total derivatives related to VA contracts	(47)		(80)		(47)		(141)
Derivatives related to FIA contracts:
Embedded derivative	(39)		(68)		(36)		(29)
Funds withheld derivative	(2)		(7)		(5)		(7)
Equity futures	2		1		3		(7)
Equity options	25		51		48		(9)
Other derivatives	(1)		—		(2)		—
Total derivatives related to FIA contracts	(15)		(23)		8		(52)
Derivatives related to IUL contracts:
Embedded derivative	(33)		(14)		(12)		(14)
Equity futures	—		—		—		(2)
Equity options	5		8		8		(6)
Total derivatives related to IUL contracts	(28)		(6)		(4)		(22)
Embedded derivative - Modco reinsurance treaties	(80)		(107)		47		(31)
Derivatives with PLC(1)	—		4		—		2
Other derivatives	(12)		(3)		(5)		5
Total realized gains (losses) - derivatives	$	(182)	$	(215)	$	(1)	$	(239)
(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.

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
	June 30, 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	$	1,478	$	83	$	1,478	$	185
Total return swaps	179		6		158		2
Derivatives with PLC(1)	4,181		—		4,076		—
Embedded derivative - Modco reinsurance treaties	1,271		85		1,249		101
Embedded derivative - GLWB	2,836		157		2,067		138
Embedded derivative - FIA	368		65		335		60
Interest rate futures	871		12		690		4
Equity futures	121		2		203		4
Currency futures	204		5		—		—
Equity options	8,470		1,186		7,208		1,142
	$	19,979	$	1,601	$	17,464	$	1,636
Other liabilities
Cash flow hedges:
Foreign currency swaps	$	117	$	8	$	117	$	10
Derivatives not designated as hedging instruments:
Interest rate swaps	1,354		—		1,354		—
Total return swaps	1,027		33		1,003		15
Embedded derivative - Modco reinsurance treaties	2,966		323		2,911		389
Funds withheld derivative	787		13		661		10
Embedded derivative - GLWB	7,020		678		7,749		960
Embedded derivative - FIA	4,219		695		3,889		633
Embedded derivative - IUL	403		244		357		201
Interest rate futures	354		11		415		3
Equity futures	118		2		190		5
Currency futures	—		—		264		4
Equity options	6,257		905		5,499		834
Other	375		76		304		55
	$	24,997	$	2,988	$	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.