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DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



		March 31, 2020									December 31, 2019
(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		$	11		$	75		$	0		$	8
Total cash flow hedges		75			0			11			75			0			8
Fair value hedges:
Foreign currency forwards		63			0			1			964			0			38
Foreign currency options		8,809			12			23			11,573			0			5
Interest rate swaptions		243			0			0			243			0			0
Total fair value hedges		9,115			12			24			12,780			0			43
Net investment hedge:
Foreign currency forwards		4,985			85			6			4,952			72			2
Foreign currency options		2,040			7			0			2,000			0			0
Total net investment hedge		7,025			92			6			6,952			72			2
Non-qualifying strategies:
Foreign currency swaps		2,250			66			38			2,800			72			78
Foreign currency swaps - VIE		2,587			89			224			2,587			169			118
Foreign currency forwards		20,614			184			420			19,821			166			337
Foreign currency options		9,248			8			0			9,553			0			0
Interest rate swaps		2,370			21			0			7,120			3			0
Interest rate swaptions		7			0			0			7			0			0
Total non-qualifying strategies		37,076			368			682			41,888			410			533
Total derivatives		$	53,291		$	472		$	723		$	61,695		$	482		$	586

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 Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended March 31, 2020:
Foreign currency forwards	Fixed maturity securities	$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Total gains (losses)		$	(16	)	$	(7	)	$	(9	)	$	10		$	1
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

⁽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 net 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 net 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 net investment gains and losses consistent with the impact of the hedged item. For the three-month periods ended March 31, 2020 and 2019, 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.



(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, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Fixed maturity securities		$	4,469	$	4,633	$	249	$	256

⁽¹⁾The balance includes hedging adjustment on discontinued hedging relationships of $249 in 2020 and $256 in 2019.

The total notional amount of the Company's interest rate swaptions was $243 in 2020 and $243 in 2019. 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 net investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.



	Three Months Ended March 31,
	2020														2019
(In millions)	Net Investment Income⁽¹⁾				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)⁽²⁾				Net Investment Income⁽¹⁾				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)⁽²⁾
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(1	)		$	0					$	(4	)		$	(1	)		$	0					$	(2	)
Total cash flow hedges		(1		)		0			⁽³	⁾		(4		)		(1		)		0			⁽³	⁾		(2		)
Fair value hedges:
Foreign currency forwards⁽³⁾						(6		)												(9		)
Foreign currency options⁽³⁾						0														(4		)
Interest rate swaptions⁽³⁾		0				0						0				0				0						(1		)
Total fair value hedges		0				(6		)				0				0				(13		)				(1		)
Net investment hedge:
Non-derivative hedging instruments						0						6								0						0
Foreign currency forwards						51						(25		)						0						0
Foreign currency options						6						0								0						0
Total net investment hedge						57						(19		)						0						0
Non-qualifying strategies:
Foreign currency swaps						50														44
Foreign currency swaps - VIE						(195		)												(16		)
Foreign currency forwards						(36		)												(21		)
Foreign currency options						(2		)												0
Interest rate swaps						47														6
Total non-qualifying strategies						(136		)												13
Total		$	(1	)		$	(85	)				$	(23	)		$	(1	)		$	0					$	(3	)

⁽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 net 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, 2020 and 2019, 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



March 31, 2020
										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		$	362		$	0		$	362		$	(229	)	$	(7	)		$	(121	)		$	5
OTC - cleared		21			0			21			0			0				(11		)		10
Total derivative assets subject to a master netting agreement or offsetting arrangement		383			0			383			(229		)	(7		)		(132		)		15
Derivative assets not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		89						89														89
Total derivative assets not subject to a master netting agreement or offsetting arrangement		89						89														89
Total derivative assets		472			0			472			(229		)	(7		)		(132		)		104
Securities lending and similar arrangements		2,952			0			2,952			0			0				(2,952		)		0
Total		$	3,424		$	0		$	3,424		$	(229	)	$	(7	)		$	(3,084	)		$	104



December 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		$	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

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities



March 31, 2020
										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		$	488		$	0		$	488		$	(229	)	$	(175	)		$	(2	)		$	82
Total derivative liabilities subject to a master netting agreement or offsetting arrangement		488			0			488			(229		)	(175		)		(2		)		82
Derivative liabilities not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		235						235														235
Total derivative liabilities not subject to a master netting agreement or offsetting arrangement		235						235														235
Total derivative liabilities		723			0			723			(229		)	(175		)		(2		)		317
Securities lending and similar arrangements		2,969			0			2,969			(2,952		)	0				0				17
Total		$	3,692		$	0		$	3,692		$	(3,181	)	$	(175	)		$	(2	)		$	334



December 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		$	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