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DERIVATIVE FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
Types of Derivative Instruments and Derivative Strategies
The Company utilizes a risk management strategy that incorporates the use of derivative financial instruments to reduce exposure to certain risks, including but not limited to, interest rate risk, currency exchange risk, volatility risk, and equity market risk. These strategies are developed through the Company’s analysis of data from financial simulation models and other internal and industry sources, and are then incorporated into the Company’s risk management program.
Derivative instruments expose the Company to credit and market risk and could result in material changes from period to period. The Company attempts to minimize its credit risk in connection with its overall asset/liability management programs and risk management strategies. In addition, all derivative programs are monitored by our risk management department.
For a full description of the Company’s derivatives accounting policies, refer to Note 6 in the Company’s Form 10-K for the year ended December 31, 2020.
Derivative Instruments Designated and Qualifying as Hedging Instruments
Cash-Flow Hedges
•To hedge a fixed rate note denominated in a foreign currency, the Company entered into a fixed-to-fixed foreign currency swap in order to hedge the foreign currency exchange risk associated with the note. The cash flows received on the swap are identical to the cash flows paid on the note.
•To hedge a floating rate note, the Company entered into an interest rate swap to exchange the floating rate on the note for a fixed rate in order to hedge the interest rate risk associated with the note. The cash flows received on the swap are identical to the cash flow variability paid on the note.
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments
The Company uses various other derivative instruments for risk management purposes that do not qualify for hedge accounting treatment. Changes in the fair value of these derivatives are recognized in realized gains (losses) during the period of change.
The following table sets forth realized gains (losses) - derivatives for the periods shown:
Realized gains (losses) - derivative financial instruments
For The
Three Months Ended
September 30,		For The
Nine Months Ended
September 30,
2021202020212020
 (Dollars In Millions)
Derivatives related to VA contracts:  
Interest rate futures $— $2 $8 $(3)
Equity futures 2 (1)(10)132 
Currency futures 4 (9)9 1 
Equity options 1 (42)(81)67 
Interest rate swaps (24)(58)(167)364 
Total return swaps 6 (31)(119)30 
Embedded derivative - GLWB(15)190 287 (681)
Total derivatives related to VA contracts(26)51 (73)(90)
Derivatives related to FIA contracts:  
Embedded derivative61 (9)25 (38)
Funds withheld derivative— (3)(5)(10)
Equity futures — 1 3 (7)
Equity options(3)25 45 15 
Other derivatives— — (2)— 
Total derivatives related to FIA contracts58 14 66 (40)
Derivatives related to IUL contracts: —  
Embedded derivative (3)16 (15)1 
Equity futures — — — (2)
Equity options1 6 9 1 
Total derivatives related to IUL contracts(2)22 (6)— 
Embedded derivative - Modco reinsurance treaties19 (25)66 (56)
Derivatives with PLC(1)
— 20 — 22 
Other derivatives2 6 (3)12 
Total realized gains (losses) - derivatives$51 $88 $50 $(152)
(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.
     Based on expected cash flows of the underlying hedged items, the Company expects to reclassify $1 million out of accumulated other comprehensive income (loss) into realized gains (losses) during the next twelve months.
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
 September 30, 2021December 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 $75 $1,478 $185 
Total return swaps
1,120 27 158 2 
Derivatives with PLC(1)
4,161 — 4,076 — 
Embedded derivative - Modco reinsurance treaties1,271 77 1,249 101 
Embedded derivative - GLWB2,871 161 2,067 138 
Embedded derivative - FIA383 61 335 60 
Interest rate futures893 8 690 4 
Equity futures82 3 203 4 
Currency futures216 5 — — 
Equity options8,949 864 7,208 1,142 
 $21,424 $1,281 $17,464 $1,636 
Other liabilities    
Cash flow hedges:
Foreign currency swaps$117 $10 $117 $10 
Derivatives not designated as hedging instruments:    
Interest rate swaps1,354 — 1,354 — 
Total return swaps229 6 1,003 15 
Embedded derivative - Modco reinsurance treaties2,996 294 2,911 389 
Funds withheld derivative833 11 661 10 
Embedded derivative - GLWB7,006 696 7,749 960 
Embedded derivative - FIA4,299 631 3,889 633 
Embedded derivative - IUL429 251 357 201 
Interest rate futures242 8 415 3 
Equity futures214 5 190 5 
Currency futures— — 264 4 
Equity options6,628 588 5,499 834 
Other406 76 304 55 
 $24,753 $2,576 $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.