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DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



	2019									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		$	8		$	75		$	1		$	4
Total cash flow hedges		75			0			8			75			1			4
Fair value hedges:
Foreign currency forwards		964			0			38			2,086			0			34
Foreign currency options		11,573			0			5			9,070			3			1
Interest rate swaptions		243			0			0			500			0			1
Total fair value hedges		12,780			0			43			11,656			3			36
Net investment hedge:
Foreign currency forwards		4,952			72			2			0			0			0
Foreign currency options		2,000			0			0			0			0			0
Total net investment hedge		6,952			72			2			0			0			0
Non-qualifying strategies:
Foreign currency swaps		2,800			72			78			2,800			103			129
Foreign currency swaps - VIE		2,587			169			118			2,587			181			101
Foreign currency forwards		19,821			166			337			16,057			126			117
Foreign currency options		9,553			0			0			430			0			0
Interest rate swaps		7,120			3			0			4,750			3			0
Interest rate swaptions		7			0			0			0			0			0
Total non-qualifying strategies		41,888			410			533			26,624			413			347
Total derivatives		$	61,695		$	482		$	586		$	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 for the years ended December 31.

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
2019:
Foreign currency forwards	Fixed maturity securities	$	(50	)	$	(64	)	$	14	$	(12	)	$	2
Foreign currency options	Fixed maturity securities	(7		)	(7		)	0		0			0
Interest rate swaptions	Fixed maturity securities	(9		)	(9		)	0		0			0
Total gains (losses)		$	(66	)	$	(80	)	$	14	$	(12	)	$	2
2018:
Foreign currency forwards	Fixed maturity securities	$	126		$	(104	)	$	230	$	(242	)	$	(12	)
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)		$	129		$	(101	)	$	230	$	(242	)	$	(12	)
2017:
Foreign currency forwards	Fixed maturity and equity securities	$	98		$	(202	)	$	300	$	(278	)	$	22
Foreign currency options	Fixed maturity securities	21			10			11		(10		)	1
Total gains (losses)		$	119		$	(192	)	$	311	$	(288	)	$	23

⁽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, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in realized investment gains and losses consistent with the impact of the hedged item. For the years ended December 31, 2019 and 2018, gains and losses included in the hedge assessment 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 as of December 31.



(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)
		2019		2018		2019		2018
Fixed maturity securities		$	4,633	$	6,593	$	256	$	294

⁽¹⁾The balance includes hedging adjustment on discontinued hedging relationships of $256 in 2019 and $294 in 2018.

The total notional amount of the Company's interest rate swaptions was $243 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 for the years ended December 31.



	2019													2018												2017
(In millions)	Net Investment Income ⁽¹⁾				Realized Investment Gains (Losses)					Other Comprehensive Income (Loss)⁽²⁾				Net Investment Income ⁽¹⁾			Realized Investment Gains (Losses)					Other Comprehensive Income (Loss)⁽²⁾				Net Investment Income ⁽¹⁾			Realized Investment Gains (Losses)					Other Comprehensive Income (Loss)⁽²⁾
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(2	)		$	(1	)			$	(4	)		$	0		$	0				$	3			$	0		$	0				$	1
Total cash flow hedges		(2		)		(1		)	⁽³⁾		(4		)		0			0			⁽³⁾		3				0			0			⁽³⁾		1
Fair value hedges:
Foreign currency forwards ⁽³⁾						(62		)										(116		)										(180		)
Foreign currency options ⁽³⁾						(7		)										4												11
Interest rate swaptions ⁽³⁾		(1		)		0					(8		)		0			0					(1		)		0			0					0
Total fair value hedges		(1		)		(69		)			(8		)		0			(112		)			(1		)		0			(169		)			0
Net investment hedge:
Non-derivative hedging instruments						0					(24		)					0					(32		)					0					(15		)
Foreign currency forwards						10					83							0					0							0					(25		)
Foreign currency options						(4		)			0							0					(8		)					0					5
Total net investment hedge						6					59							0					(40		)					0					(35		)
Non-qualifying strategies:
Foreign currency swaps						90												(40		)										9
Foreign currency swaps - VIE						(68		)										60												44
Foreign currency forwards						(148		)										(135		)										8
Credit default swaps						0												0												(1		)
Interest rate swaps						17												3												0
Total non-qualifying strategies						(110		)										(112		)										60
Total		$	(3	)		$	(174	)			$	47			$	0		$	(224	)			$	(38	)		$	0		$	(109	)			$	(34	)

⁽¹⁾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).

⁽²⁾ 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 years ended December 31, 2019, 2018 and 2017, respectively.

⁽³⁾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 Assets



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		$	310		$	0		$	310		$	(190	)	$	(7	)		$	(113	)		$	0
OTC - cleared		3			0			3			0			0				0				3
Total derivative assets subject to a master netting agreement or offsetting arrangement		313			0			313			(190		)	(7		)		(113		)		3
Derivative assets not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		169						169														169
Total derivative assets not subject to a master netting agreement or offsetting arrangement		169						169														169
Total derivative assets		482			0			482			(190		)	(7		)		(113		)		172
Securities lending and similar arrangements		1,860			0			1,860			0			0				(1,860		)		0
Total		$	2,342		$	0		$	2,342		$	(190	)	$	(7	)		$	(1,973	)		$	172



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



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		$	459		$	0		$	459		$	(190	)	$	(222	)		$	(32	)		$	15
OTC - cleared		1			0			1			0			0				(1		)		0
Total derivative liabilities subject to a master netting agreement or offsetting arrangement		460			0			460			(190		)	(222		)		(33		)		15
Derivative liabilities not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		126						126														126
Total derivative liabilities not subject to a master netting agreement or offsetting arrangement		126						126														126
Total derivative liabilities		586			0			586			(190		)	(222		)		(33		)		141
Securities lending and similar arrangements		1,876			0			1,876			(1,860		)	0				0				16
Total		$	2,462		$	0		$	2,462		$	(2,050	)	$	(222	)		$	(33	)		$	157



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