Derivatives and Hedge Accounting (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets:

	December 31, 2022								December 31, 2021
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives designated as hedging instruments:(a)
Interest rate contracts	$	251	$	355	$	1,688	$	66	$	265	$	5	$	895	$	11
Foreign exchange contracts		4,543		642		4,899		317		5,431		467		5,828		197
Derivatives not designated as hedging instruments:(a)
Interest rate contracts		39,833		3,367		34,128		4,772		47,499		3,868		42,113		3,622
Foreign exchange contracts		8,626		1,202		10,397		821		7,905		722		9,997		524
Equity contracts		31,264		428		4,740		26		27,423		681		5,091		53
Commodity contracts		212		9		20		—		303		4		219		—
Credit contracts(b)		1,808		32		933		41		3,790		1		936		47
Other contracts(c)		47,184		14		—		—		43,892		13		51		—
Total derivatives, gross	$	133,721	$	6,049	$	56,805	$	6,043	$	136,508	$	5,761	$	65,130	$	4,454
Counterparty netting(d)				(3,895)				(3,895)				(2,779)				(2,779)
Cash collateral(e)				(1,640)				(1,917)				(2,139)				(1,089)
Total derivatives on Consolidated Balance Sheets(f)			$	514			$	231			$	843			$	586

(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b)As of December 31, 2022 and 2021, included CDSs on super senior multi-sector CLOs with a net notional amount of $79 million and $97 million (fair value liability of $32 million and $30 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio.

(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.

(d)Represents netting of derivative exposures covered by a qualifying master netting agreement.

(e)Represents cash collateral posted and received that is eligible for netting.

(f)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $2.2 billion at December 31, 2022 and zero at December 31, 2021. Fair value of liabilities related to bifurcated embedded derivatives was $7.2 billion and $14.5 billion, respectively, at December 31, 2022 and 2021. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information, see Note 7.

Schedule of Gain (Loss) Recognized in Income on Derivative Instruments in Fair Value Hedging Relationships

The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income (Loss):

		Gains/(Losses) Recognized in Income for:
(in millions)		Hedging Derivatives(a)		Excluded Components(b)		Hedged Items		Net Impact
Year Ended December 31, 2022
Interest rate contracts:
Interest credited to policyholder account balances	$	(81)	$	—	$	83	$	2
Net investment income		11		—		(12)		(1)
Foreign exchange contracts:
Net realized gains/(losses)		382		244		(382)		244
Year Ended December 31, 2021
Interest rate contracts:
Interest credited to policyholder account balances	$	(19)	$	—	$	17	$	(2)
Net investment income		9		—		(11)		(2)
Foreign exchange contracts:
Net realized gains/(losses)		210		139		(210)		139
Year Ended December 31, 2020
Interest rate contracts:
Interest credited to policyholder account balances	$	14	$	—	$	(14)	$	—
Net investment income		(6)		—		5		(1)
Foreign exchange contracts:
Net realized gains/(losses)		(422)		49		422		49

(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.

(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.

Derivatives Not Designated as Hedging Instruments

The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income (Loss):

Years Ended December 31,	Gains (Losses) Recognized in Income
(in millions)		2022		2021		2020
By Derivative Type:
Interest rate contracts	$	(2,190)	$	(573)	$	1,451
Foreign exchange contracts		1,149		278		(389)
Equity contracts		(497)		(736)		211
Commodity contracts		(13)		(9)		—
Credit contracts		(4)		(12)		52
Other contracts		100		64		61
Embedded derivatives		11,873		623		(4,722)
Total	$	10,418	$	(365)	$	(3,336)
By Classification:
Policy fees	$	63	$	61	$	62
Net investment income - excluding Fortitude Re funds withheld assets		2		5		(8)
Net investment income - Fortitude Re funds withheld assets		(10)		—		—
Net realized gains (losses) - excluding Fortitude Re funds withheld assets		3,035		148		(508)
Net realized gains (losses) on Fortitude Re funds withheld assets(a)		7,347		(575)		(2,894)
Policyholder benefits and claims incurred		(19)		(4)		12
Total	$	10,418	$	(365)	$	(3,336)

(a)Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.