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DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The table below summarizes the balance sheet classification of the Company's derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. Derivative assets are included in other assets, while derivative liabilities are included in other liabilities within the Company’s consolidated balance sheets. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk.


		September 30, 2023									December 31, 2022
(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		$	18		$	0		$	4		$	18		$	0		$	3
Total cash flow hedges		18			0			4			18			0			3
Fair value hedges:

Foreign currency options		6,127			0			0			7,940			45			0

Total fair value hedges		6,127			0			0			7,940			45			0
Net investment hedge:
Foreign currency forwards		2,383			290			0			4,982			383			85
Foreign currency options		870			0			0			2,630			7			0
Total net investment hedge		3,253			290			0			7,612			390			85
Non-qualifying strategies:
Foreign currency swaps		1,200			39			0			1,900			66			0
Foreign currency swaps - VIE		3,416			59			438			3,420			62			387
Foreign currency forwards		7,402			189			588			5,049			17			640
Foreign currency options		18,223			1			0			5,521			30			0

Interest rate swaps		17,730			0			636			17,730			7			583


Total non-qualifying strategies		47,971			288			1,662			33,620			182			1,610
Total derivatives		$	57,369		$	578		$	1,666		$	49,190		$	617		$	1,698

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 September 30, 2023:

Foreign currency options	Fixed maturity securities	$	(1)	$	(1)	$	0	$	0	$	0

Total gains (losses)		$	(1)	$	(1)	$	0	$	0	$	0
Nine Months Ended September 30, 2023:

Foreign currency options	Fixed maturity securities	$	(65)	$	(65)	$	0	$	0	$	0

Total gains (losses)		$	(65)	$	(65)	$	0	$	0	$	0
Three Months Ended September 30, 2022:

Foreign currency options	Fixed maturity securities	$	(15)	$	(15)	$	0	$	0	$	0

Total gains (losses)		$	(15)	$	(15)	$	0	$	0	$	0
Nine Months Ended September 30, 2022:

Foreign currency options	Fixed maturity securities	$	(41)	$	(41)	$	0	$	0	$	0

Total gains (losses)		$	(41)	$	(41)	$	0	$	0	$	0

(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 statements 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 statements 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 (losses) consistent with the impact of the hedged item. For the three- and nine-month periods ended September 30, 2023 and 2022, 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. The Company had no fair value hedges of interest rate risk as of September 30, 2023 and December 31, 2022; therefore, the amounts presented in the table below are related to previous fair value hedges of interest rate risk that were discontinued.


(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)
		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Fixed maturity securities		$	1,829	$	2,360	$	179	$	189

(1) The balance includes hedging adjustment on discontinued hedging relationships of $179 in 2023 and $189 in 2022.

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

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


	Three Months Ended September 30,
	2023										2022
(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)		$	(1)			$	1		$	0		$	(1)			$	1
Total cash flow hedges		(1)			(1)		(3)		1			0			(1)		(3)		1
Fair value hedges:

Foreign currency options					(1)										(15)

Total fair value hedges					(1)										(15)
Net investment hedge:
Non-derivative hedging instruments					0				112						0				181

Foreign currency forwards					71				32						28				236
Foreign currency options					0				0						(1)				0
Total net investment hedge					71				144						27				417
Non-qualifying strategies:
Foreign currency swaps					1										27
Foreign currency swaps - VIE					(22)										(19)
Foreign currency forwards					32										(252)
Foreign currency options					(9)										0

Interest rate swaps					(124)										(257)
Forward bond purchase commitment - VIE					0										(1)
Total non- qualifying strategies					(122)										(502)
Total		$	(1)		$	(53)			$	145		$	0		$	(491)			$	418

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges 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). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statements of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2023, and $1 of losses during the three-month period ended September 30, 2022.


	Nine Months Ended September 30,
	2023										2022
(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)		$	(3)			$	3		$	0		$	(3)			$	2
Total cash flow hedges		(1)			(3)		(3)		3			0			(3)		(3)		2
Fair value hedges:

Foreign currency options					(65)										(41)
Interest rate swaptions (4)		(1)			0				1			0			0				0
Total fair value hedges		(1)			(65)				1			0			(41)				0
Net investment hedge:
Non-derivative hedging instruments					0				450						0				705
Foreign currency forwards					198				454						(73)				1,059
Foreign currency options					(8)				0						(2)				0
Total net investment hedge					190				904						(75)				1,764
Non-qualifying strategies:
Foreign currency swaps					4										162
Foreign currency swaps - VIE					(112)										(35)
Foreign currency forwards					(350)										(966)
Foreign currency options					(46)										(13)
Interest rate swaps					(244)										(523)
Forward bond purchase commitment - VIE					(4)										(21)
Total non-qualifying strategies					(752)										(1,396)
Total		$	(2)		$	(630)			$	908		$	0		$	(1,515)			$	1,766

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2023, and $3 of losses during the nine-month period ended September 30, 2022.

(4) Includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2023 and $1 of losses during the nine-month period ended September 30, 2022 related to fair value hedges excluded component. 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


September 30, 2023
										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		$	519		$	0		$	519		$	(189)	$	(103)		$	(225)		$	2
OTC - cleared		0			0			0			0		0			0			0
Total derivative assets subject to a master netting agreement or offsetting arrangement		519			0			519			(189)		(103)			(225)			2
Derivative assets not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		59						59											59

Total derivative assets not subject to a master netting agreement or offsetting arrangement		59						59											59
Total derivative assets		578			0			578			(189)		(103)			(225)			61
Securities lending and similar arrangements		4,563			0			4,563			0		0			(4,563)			0
Total		$	5,141		$	0		$	5,141		$	(189)	$	(103)		$	(4,788)		$	61


December 31, 2022
										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		$	548		$	0		$	548		$	(167)	$	(60)		$	(320)		$	1
OTC - cleared		7			0			7			(7)		0			0			0
Total derivative assets subject to a master netting agreement or offsetting arrangement		555			0			555			(174)		(60)			(320)			1
Derivative assets not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		62						62											62

Total derivative assets not subject to a master netting agreement or offsetting arrangement		62						62											62
Total derivative assets		617			0			617			(174)		(60)			(320)			63
Securities lending and similar arrangements		1,788			0			1,788			0		0			(1,788)			0
Total		$	2,405		$	0		$	2,405		$	(174)	$	(60)		$	(2,108)		$	63

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities


September 30, 2023
										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		$	588		$	0		$	588		$	(189)	$	(362)		$	(36)		$	1
OTC - cleared		636			0			636			0		(3)			(633)			0
Total derivative liabilities subject to a master netting agreement or offsetting arrangement		1,224			0			1,224			(189)		(365)			(669)			1
Derivative liabilities not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		442						442											442

Total derivative liabilities not subject to a master netting agreement or offsetting arrangement		442						442											442
Total derivative liabilities		1,666			0			1,666			(189)		(365)			(669)			443
Securities lending and similar arrangements		4,607			0			4,607			(4,563)		0			0			44
Total		$	6,273		$	0		$	6,273		$	(4,752)	$	(365)		$	(669)		$	487


December 31, 2022
										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		$	725		$	0		$	725		$	(167)	$	(506)		$	(52)		$	0
OTC - cleared		583			0			583			(7)		0			(577)			(1)
Total derivative liabilities subject to a master netting agreement or offsetting arrangement		1,308			0			1,308			(174)		(506)			(629)			(1)
Derivative liabilities not subject to a master netting agreement or offsetting arrangement
OTC - bilateral		390						390											390

Total derivative liabilities not subject to a master netting agreement or offsetting arrangement		390						390											390
Total derivative liabilities		1,698			0			1,698			(174)		(506)			(629)			389
Securities lending and similar arrangements		1,809			0			1,809			(1,788)		0			0			21
Total		$	3,507		$	0		$	3,507		$	(1,962)	$	(506)		$	(629)		$	410