DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of realized investment gains (losses) - derivative financial instruments

The following table sets forth net gains and losses for the periods shown:

Gains (losses) — derivative financial instruments

	For The Year Ended December 31,
	2021		2020		2019
			(Recast)		(Recast)
	(Dollars In Millions)
Derivatives related to VA contracts:
Interest rate futures	$	15	$	—	$	(20)
Equity futures		(12)		109		5
Currency futures		11		(10)		3
Equity options		(108)		(30)		(150)
Interest rate swaps		(136)		274		230
Total return swaps		(189)		(49)		(78)
Embedded derivative — GLWB		347		(404)		(198)
Total derivatives related to VA contracts		(72)		(110)		(208)
Derivatives related to FIA contracts:
Embedded derivative		3		(69)		(86)
Funds withheld derivative		(7)		(10)		—
Equity futures		5		(4)		2
Equity options		72		49		84
Other derivatives		(3)		(1)		—
Total derivatives related to FIA contracts		70		(35)		—
Derivatives related to IUL contracts:
Embedded derivative	$	(28)	$	4	$	(13)
Equity futures		—		(2)		—
Equity options		16		9		15
Total derivatives related to IUL contracts		(12)		11		2
Embedded derivative — Modco reinsurance treaties		64		(99)		(187)
Derivatives with PLC(1)		—		23		27
Other derivatives		(2)		15		(2)
Total gains (losses) — derivatives, net	$	48	$	(195)	$	(368)

(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 as part of the Captive Merger and a new portfolio maintenance agreement was entered into with PLC on that date.

Notional amounts and fair values of derivative financial instruments

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 financial statements for the periods presented below:

	As of December 31,
	2021				2020
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value
					(Recast)
	(Dollars In Millions)
Other long-term investments
Derivatives not designated as hedging instruments:
Interest rate swaps	$	1,478	$	72	$	1,478	$	185
Total return swaps		239		8		158		2
Derivatives with PLC(1)		4,085		—		4,076		—
Embedded derivative — Modco reinsurance treaties		1,268		62		1,249		101
Embedded derivative — GLWB		3,066		169		2,067		138
Embedded derivative — FIA		398		64		335		60
Interest rate futures		561		5		690		4
Equity futures		312		6		203		4
Currency futures		27		—		—		—
Equity options		8,852		1,061		7,208		1,142
	$	20,286	$	1,447	$	17,464	$	1,636
Other liabilities
Cash flow hedges:
Foreign currency swaps	$	117	$	13	$	117	$	10
Derivatives not designated as hedging instruments:
Interest rate swaps		1,354		—		1,354		—
Total return swaps		1,168		39		1,003		15
Embedded derivative — Modco reinsurance treaties		2,974		280		2,911		389
Funds withheld derivative		855		10		661		10
Embedded derivative — GLWB		6,833		644		7,749		960
Embedded derivative — FIA		4,372		659		3,889		633
Embedded derivative — IUL		459		269		357		201
Interest rate futures		729		4		415		3
Equity futures		42		1		190		5
Currency futures		158		2		264		4
Equity options		7,044		771		5,499		834
Other		448		87		304		55
	$	26,553	$	2,779	$	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 as part of the Captive Merger and a new portfolio maintenance agreement was entered into with PLC on that date.