OFFSETTING OF ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2021

Offsetting [Abstract]

OFFSETTING OF ASSETS AND LIABILITIES

7. OFFSETTING OF ASSETS AND LIABILITIES

Certain of the Company’s derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company’s repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 14, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

Collateral received includes both cash and non-cash collateral. Cash collateral received by the Company is recorded on the consolidated balance sheet as "cash", with a corresponding amount recorded in "other liabilities" to represent the Company’s obligation to return the collateral. Non-cash collateral received by the Company is not recognized on the consolidated balance sheet unless the Company exercises its right to sell or re-pledge the underlying asset. As of December 31, 2021 and 2020, there was no fair value of non-cash collateral received.

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2021:

					Net Amounts
			Gross		of Assets		Gross Amounts
	Gross		Amounts		Presented in		Not Offset
	Amounts Off		Offset in the		the		in the Balance Sheet
	Recognized		Balance		Balance		Financial		Collateral
	Assets		Sheet		Sheet		Instruments		Received		Net Amount
	(Dollars In Millions)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	1,152	$	—	$	1,152	$	806	$	178	$	168
Total derivatives, subject to a master netting arrangement or similar arrangement		1,152		—		1,152		806		178		168
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative — Modco reinsurance treaties		62		—		62		—		—		62
Embedded derivative — GLWB		169		—		169		—		—		169
Derivatives with PLC		—		—		—		—		—		—
Embedded derivative — FIA		64		—		64		—		—		64
Total derivatives, not subject to a master netting arrangement or similar arrangement		295		—		295		—		—		295
Total derivatives		1,447		—		1,447		806		178		463
Total Assets	$	1,447	$	—	$	1,447	$	806	$	178	$	463

7. OFFSETTING OF ASSETS AND LIABILITIES – (Continued)

					Net Amounts
			Gross		of Assets		Gross Amounts
	Gross		Amounts		Presented in		Not Offset
	Amounts Off		Offset in the		the		in the Balance Sheet
	Recognized		Balance		Balance		Financial		Collateral
	Assets		Sheet		Sheet		Instruments		Received		Net Amount
	(Dollars In Millions)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	830	$	—	$	830	$	806	$	22	$	2
Total derivatives, subject to a master netting arrangement or similar arrangement		830		—		830		806		22		2
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative — Modco reinsurance treaties		280		—		280		—		—		280
Funds withheld derivative		10		—		10		—		—		10
Embedded derivative — GLWB		644		—		644		—		—		644
Embedded derivative — FIA		659		—		659		—		—		659
Embedded derivative — IUL		269		—		269		—		—		269
Other		87		—		87		—		—		87
Total derivatives, not subject to a master netting arrangement or similar arrangement		1,949		—		1,949		—		—		1,949
Total derivatives		2,779		—		2,779		806		22		1,951
Repurchase agreements(1)		1,393		—		1,393		—		—		1,393
Total Liabilities	$	4,172	$	—	$	4,172	$	806	$	22	$	3,344

(1) Borrowings under repurchase agreements are for a term less than 90 days.

7. OFFSETTING OF ASSETS AND LIABILITIES – (Continued)

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2020.

					Net Amounts
			Gross		of Assets		Gross Amounts
	Gross		Amounts		Presented in		Not Offset
	Amounts Of		Offset in the		the		in the Balance Sheet
	Recognized		Balance		Balance		Financial		Collateral
	Assets		Sheet		Sheet		Instruments		Received		Net Amount
	(Recast)
	(Dollars In Millions)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	1,337	$	—	$	1,337	$	865	$	290	$	182
Total derivatives, subject to a master netting arrangement or similar arrangement		1,337		—		1,337		865		290		182
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative — Modco reinsurance treaties		101		—		101		—		—		101
Embedded derivative — GLWB		138		—		138		—		—		138
Other		60		—		60		—		—		60
Total derivatives, not subject to a master netting arrangement or similar arrangement		299		—		299		—		—		299
Total derivatives		1,636		—		1,636		865		290		481
Total Assets	$	1,636	$	—	$	1,636	$	865	$	290	$	481

7. OFFSETTING OF ASSETS AND LIABILITIES – (Continued)

					Net Amounts
			Gross		of Assets		Gross Amounts
	Gross		Amounts		Presented in		Not Offset
	Amounts Of		Offset in the		the		in the Balance Sheet
	Recognized		Balance		Balance		Financial		Collateral
	Assets		Sheet		Sheet		Instruments		Received		Net Amount
	(Recast)
	(Dollars In Millions)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	871	$	—	$	871	$	865	$	4	$	2
Total derivatives, subject to a master netting arrangement or similar arrangement		871		—		871		865		4		2
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative — Modco reinsurance treaties		389		—		389		—		—		389
Funds withheld derivative		10		—		10		—		—		10
Embedded derivative — GLWB		960		—		960		—		—		960
Embedded derivative — FIA		633		—		633		—		—		633
Embedded derivative — IUL		201		—		201		—		—		201
Other		55		—		55		—		—		55
Total derivatives, not subject to a master netting arrangement or similar arrangement		2,248		—		2,248		—		—		2,248
Total derivatives		3,119		—		3,119		865		4		2,250
Repurchase agreements(1)		437		—		437		—		—		437
Total Liabilities	$	3,556	$	—	$	3,556	$	865	$	4	$	2,687

(1) Borrowings under repurchase agreements are for a term less than 90 days.