DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

		March 31, 2019									December 31, 2018
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	75		$	0		$	6		$	75		$	1		$	4
Total cash flow hedges		75			0			6			75			1			4
Fair value hedges:
Foreign currency forwards		691			0			24			2,086			0			34
Foreign currency options		10,887			0			2			9,070			3			1
Interest rate swaptions		1,500			0			1			500			0			1
Total fair value hedges		13,079			0			27			11,656			3			36
Non-qualifying strategies:
Foreign currency swaps		2,800			96			98			2,800			103			129
Foreign currency swaps - VIE		2,587			178			102			2,587			181			101
Foreign currency forwards		15,208			119			132			16,057			126			117
Foreign currency options		552			0			0			430			0			0
Interest rate swaps		4,750			8			0			4,750			3			0
Total non-qualifying strategies		25,897			401			332			26,624			413			347
Total derivatives		$	39,051		$	401		$	365		$	38,355		$	417		$	387

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives								Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)			Gains (Losses) Excluded from Effectiveness Testing(1)			Gains (Losses) Included in Effectiveness Testing(2)		Gains (Losses) (2)			Net Realized Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended March 31, 2019:
Foreign currency forwards	Fixed maturity securities	$	9		$	(10	)	$	19	$	(18	)	$	1
Foreign currency options	Fixed maturity securities	(4		)	(4		)	0		0			0
Interest rate swaptions	Fixed maturity securities	(1		)	(1		)	0		0			0
Total gains (losses)		$	4		$	(15	)	$	19	$	(18	)	$	1
Three Months Ended March 31, 2018:
Foreign currency forwards	Fixed maturity securities	$	414		$	(39	)	$	453	$	(464	)	$	(11	)
Foreign currency options	Fixed maturity securities	(1		)	(1		)	0		0			0
Total gains (losses)		$	413		$	(40	)	$	453	$	(464	)	$	(11	)

⁽¹⁾ Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as realized investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss).

⁽²⁾ Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as realized investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment are reported within net investment income. For the three-month period ended March 31, 2019, those gains and losses on interest rate swaptions and related hedged items were immaterial.

Schedule of Interest Rate Fair Value Hedges Hedged Items

The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount.

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Fixed maturity securities		$	5,285	$	6,593	$	276	$	294

⁽¹⁾ The balance includes hedging adjustment on discontinued hedging relationships of $276 in 2019 and $294 in 2018.

The total notional amount of the Company's interest rate swaptions was $1,500 in 2019 and $500 in 2018. The hedging adjustment related to these derivatives was immaterial.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.

					Three Months Ended March 31,
					2019													2018
(In millions)	Net Investment Income Loss (1)				Realized Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)				Net Investment Income Loss (1)			Realized Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(1	)		$	0					$	(2	)		$	0		$	1					$	6
Total cash flow hedges		(1		)		0			(3	)		(2		)		0			1			(3	)		6
Fair value hedges:
Foreign currency forwards(4)						(9		)											(50		)
Foreign currency options(4)						(4		)											(1		)
Interest rate swaptions(4)		0				0						(1		)		0			0						0
Total fair value hedges		0				(13		)				(1		)		0			(51		)				0
Net investment hedge:
Non-derivative hedging instruments						0						0							0						(84		)
Foreign currency options						0						0							0						(8		)
Total net investment hedge						0						0							0						(92		)
Non-qualifying strategies:
Foreign currency swaps						44													(110		)
Foreign currency swaps - VIE						(16		)											124
Foreign currency forwards						(21		)											179
Foreign currency options						0													1
Interest rate swaps						6													0
Total non-qualifying strategies						13													194
Total		$	(1	)		$	0					$	(3	)		$	0		$	144					$	(86	)

⁽¹⁾ Net investment income (loss) includes net interest on swaps.

⁽²⁾ Cash flow hedge items and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽³⁾ Impact of cash flow hedges reported as realized investment gains (losses) includes an immaterial amount of gains or losses reclassified from accumulated other comprehensive income (loss) into earnings. It also includes an immaterial amount excluded from effectiveness testing during the three-month periods ended March 31, 2019 and 2018, respectively.

⁽⁴⁾Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

Offsetting Assets

Offsetting of Financial Assets and Derivative Asset

March 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	215		$	0		$	215		$	(118	)	$	(10	)		$	(80	)		$	7
OTC - cleared		8			0			8			0			0				(1		)		7
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		223			0			223			(118		)	(10		)		(81		)		14
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		178						178														178
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		178						178														178
Total derivative       assets		401			0			401			(118		)	(10		)		(81		)		192
Securities lending    and similar    arrangements		1,959			0			1,959			0			0				(1,959		)		0
Total		$	2,360		$	0		$	2,360		$	(118	)	$	(10	)		$	(2,040	)		$	192

December 31, 2018
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	231		$	0		$	231		$	(152	)	$	(23	)		$	(55	)		$	1
OTC - cleared		3			0			3			0			0				(3		)		0
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		234			0			234			(152		)	(23		)		(58		)		1
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		183						183														183
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		183						183														183
Total derivative       assets		417			0			417			(152		)	(23		)		(58		)		184
Securities lending    and similar    arrangements		1,029			0			1,029			0			0				(1,029		)		0
Total		$	1,446		$	0		$	1,446		$	(152	)	$	(23	)		$	(1,087	)		$	184

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities

March 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	257		$	0		$	257		$	(118	)	$	(65	)		$	(45	)		$	29
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		257			0			257			(118		)	(65		)		(45		)		29
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		108						108														108
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		108						108														108
Total derivative       liabilities		365			0			365			(118		)	(65		)		(45		)		137
Securities lending    and similar    arrangements		1,969			0			1,969			(1,959		)	0				0				10
Total		$	2,334		$	0		$	2,334		$	(2,077	)	$	(65	)		$	(45	)		$	147

December 31, 2018
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	285		$	0		$	285		$	(152	)	$	(37	)		$	(68	)		$	28
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		285			0			285			(152		)	(37		)		(68		)		28
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		102						102														102
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		102						102														102
Total derivative       liabilities		387			0			387			(152		)	(37		)		(68		)		130
Securities lending    and similar    arrangements		1,052			0			1,052			(1,029		)	0				0				23
Total		$	1,439		$	0		$	1,439		$	(1,181	)	$	(37	)		$	(68	)		$	153